HomeMy WebLinkAboutFY 2021 - 2022 - Annual Comprehensive Financial Reports (ACFRs)The Town of Vinton, Virginia
Annual Comprehensive Financial Report
For Fiscal Year Ended June 30, 2022
TOWN OF VINTON, VIRGINIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
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 .........................................................................................................5
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position ...................................................................................................14
Exhibit 2 Statement of Activities ........................................................................................................15
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Funds ................................................................................16
Exhibit 4 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position......................................................................................17
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balances –Governmental Funds ...........................................................................18
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of the Governmental Funds to the Statement of Activities ...............19
Exhibit 7 Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual –General Fund .................................................................................20
Exhibit 8 Statement of Net Position –Proprietary Funds ..................................................................21
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Funds ....................................................................................22
Exhibit 10 Statement of Cash Flows –Proprietary Funds ...................................................................23
Notes to Financial Statements ....................................................................................................................24
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................................................................................................105
INTRODUCTORY SECTION
i
October 30, 2023
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, 2022,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 the 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 2021 Water Quality Report,the Town had no water quality violations. The Virginia
Department of Environmental Quality reported statewide recycling rates for calendar year 2021. The Town
of Vinton’s rate was 63.5%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
ii
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 2021-2022, 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 2022 generate approximately $984,000 or 9.99% 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 2022.
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 of 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 $500,000 from the Virginia Brownfields Restoration and
Economic Redevelopment Assistance Fund (VABF) and the Department of Environmental Quality
(DEQ) to conduct a Structural Study at Gish Mill and survey and engineering work at the McClung
Industrial Property. In addition,the Town has begun with the 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 financial 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 page one of the Financial Section. Other
auditor’s reports are included in the Compliance Section.
Accounting principles generally accepted in the United States of America (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, 2021. 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 easily 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 requirements, 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.Adam E. Cody Sexton
Town Manager Treasurer
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Vinton
Virginia
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
vi
vii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2022
TOWN COUNCIL
Bradley E. Grose, Mayor
Sabrina McCarty, Vice Mayor
Keith N. Liles
Laurie Mullins
Michael W. Stovall
APPOINTED OFFICIALS
Richard Peters .................................................Town Manager/Interim Clerk
Andrew Keen .......................................................................Finance Director
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*
Organizational Chart
FINANCIAL SECTION
Your Success is Our Focus
3906 Electric Road • Roanoke, Virginia 24018 • 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 Audit of the Financial Statements
Opinions
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, 2022, and the related notes to the financial statements, which collectively comprise the Town’s
basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, and each major
fund of the Town, as of June 30, 2022, 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.
Basis for Opinions
We conducted our audit 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. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of the Town and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our
audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2022, the Town adopted new accounting guidance,
GASB Statement No. 87 Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management 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.
2
Report on the Audit of the Financial Statement (Continued)
Responsibilities of Management for the Financial Statements (Continued)
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance,but is not absolute assurance
and,therefore,is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about Town’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
.
3
Report on the Audit of the Financial Statements (Continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, budgetary comparison information, 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.
Supplementary 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, 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),are presented for purposes of additional
analysis and are not a required part of the basic financial statements.Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly
stated in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover
the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
4
Report on the Audit of the Financial Statements (Continued)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 30, 2023 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
October 30, 2023
5
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, 2022. 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 v 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 $23,646,623
(net position). Of this amount, $8,025,972 (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 $4,057,507. This increase is largely due to total
expenses of $11,379,587 being less than total revenues of $15,437,094. Another factor
includes an increase of $2,886,475 (7.32%)in current and other assets. The increase in assets
is due to an increase in cash from operations, bond proceeds and capital asset values of
$1,849,115 with the final result being an increase of 9.52%in total assets.
On the other hand,the Town’s long-term liabilities also decreased by $1,441,643 (14.52%),
mostly due to no additional debt issuances during the year.Other liabilities decreased by
$156,140 (3.08%),which was due to a decrease in accrued payroll and related liabilities and
customer security deposits and related liabilities related to the transfer of the billing and
management to the Western Virginia Water Authority at the conclusion of the fiscal year.
Deferred Outflows decreased $318,519 (24.56%)and Deferred Inflows increased $2,853,741
(224.73%)primarily due to the net difference between projected and actual earnings on plan
investments.
The final result of all these effects is a 20.71%increase in net position.
As of the close of the current fiscal year, the Town’s governmental funds reported an ending
fund balance of $7,369,966 an increase of $1,446,853 in comparison with the prior year. This
is mostly due to an increase $2,062,141 (59.51%) of cash from bond proceeds and the
decrease of $444,983 (9.58%) total liabilities.
The General Fund accounted for $5,965,779 of the ending fund balance in the governmental
funds, with an unassigned fund balance of $5,605,680. Approximately 93.96% of the
ending general fund balance is available for spending at the Town’s discretion (unassigned
fund balance), and represents 81.37% of the general fund’s expenditures, excluding
transfers to other funds.
The Capital Fund had an ending committed fund balance of $1,399,230. 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 are 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.
6
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, 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, comparing the information presented for governmental funds with similar information
presented for governmental activities in the government-wide financial statements is useful. 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 government-wide financial
statements. The Town uses an enterprise fund to account for its Water and Sewer Department and
Stormwater functions.
7
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 $23,646,623 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (61.36%)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.
Unrestricted net position of $8,025,972 may be used to meet the Town’s ongoing obligations to
citizens and creditors.
8
Government-Wide Financial Analysis (Continued)
At the end of the current fiscal year, the Town can 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.
Governmental activities –Governmental activities increased the Town’s net position by
$2,546,984.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 and
various taxes showed an increase over the prior year while capital grants and contributions showed a
decrease. 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
9
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
10
Government-Wide Financial Analysis (Continued)
Business-type activities –Business-type activities increased the Town’s net position by
$1,510,523. This is primarily due to the increased service charges approved by council to 8% and volumetric
rate of 6% and the use of ARPA funds to assist with residents who experienced hardship.
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 $7,369,966, an increase of $1,446,853 in comparison with the prior year. This is due to an
increase in unassigned funds of $2,062,141 and a decrease of $444,983 in total liabilities.
The fund balance of the General Fund increased by $1,408,861 during the current fiscal year. This
increase is primarily attributed to revenues exceeding original budget projections.
The fund balance of the Capital Fund is used to account for the construction of major capital
projects or the purchase of major equipment. At the end of the current fiscal year, the Capital Fund
increased by $33,035 for a balance of $1,399,230 of committed funds to various projects. Those projects
include street maintenance of Mountain View Rd., Traffic signals, a Hotel Development project, and the
redevelopment of Gish Mill.
The fund balance of the Grant Fund accounts are revenue resources that are restricted to
expenditures for specific purposes. The restricted fund balance increased from the prior year by $4,957
as a result of projects extending into the next fiscal year.
Proprietary funds –The Town’s proprietary fund provides the same type of information found in
the government-wide financial statements but in more detail.
The unrestricted net position of the Water and Sewer Department at the end of the year amounted
to $2,739,880. Unrestricted net position of the Stormwater Management Department at the end of the year
amounted to $295,886. 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
$543,878 primarily due to increases in other local taxes based on mid-year projections above the original
budgeted amounts.
Differences between the original budget and the final amended budget for expenditures were
$1,209,838 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 results for the year can be briefly
summarized as follows:
There was a negative variance in real property taxes, and 14.99% of the budgeted amount
remains outstanding. The real property tax rate did not change from $0.07 per $100 of assessed
value.The decrease in budget actuals, is primarily due to an attempt to capture the increased
assessed value for personal property (used or new). The budget amendment used the aggressive
estimate in favor of the conservative numbers.
11
General Fund Budgetary Highlights (Continued)
There was a positive variance of other local taxes of $511,892 or 9.13%more than the budgeted
amount collected. Several key economic revenues, such as inflation,outperformed expectations
such as Meals Tax, Sales Tax, Business License Tax, and Pari-mutuel Tax.
The Town experienced a positive variance in the Charges for Services category of $7,849 or
5.07%more than the budgeted amount collected. This is primarily due to rentals increasing as
the Town’s pandemic limitations on events were lifted.
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, 2022, 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 14.10% (a 7.81%
increase for governmental activities and a 24.34%increase for business-type activities). Additional
information on the Town’s capital assets can be found in Note 5 of this report.
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of
$9,782,207, minus compensated absences.Of this amount, $7,682,999 comprises debt backed by the full
faith and credit of the government, $1,157,000 is related to revenue bond obligations, $358,141 is related to
intergovernmental obligations, and $584,067 is related to operating leases.
12
Capital Asset and Debt Administration (Continued)
The Town’s total debt decreased by $1,468,149 or 13.05%,during the fiscal year. This decrease is
primarily due to the payoff of the VML Equipment,Street Sweeper, and Knuckleboom Truck Issuance.
In addition,the transfer of debt to the Western Virginia Water Authority in accordance with service
transfer as of June 30, 2022.
Additional information on the Town’s long-term debt can be found in Note 6 of this report.
Economic Factors and Next Year’s Budgets and Rates
During the current year, the Town experienced a growth in local revenue pari-mutuel tax (off-track betting
revenue) which has quickly become a top revenue source in the General Fund along with prepared food
and beverage tax and state sales tax collections. 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 these
new and improved revenue sources 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, 2022,is 2.70%, which is a decline from last year’s rate of 3.60%.
This is a better performance when compared to the state’s average unemployment rate as of
June 30, 2022,of 2.50% and to the national average rate of 3.60%.
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 2022, but an overall increase in reassessment
for real estate values increased the tax levy.
During the current fiscal year, the unassigned fund balance in the general fund increased by
$2,140,546. The general fund remains strong with an ending unassigned fund balance of $5,605,680.It is
intended that this available fund balance will be used for future one-time needs of the Town and as
working capital during the months of low cash collection volume.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
www.vintonva.gov
13
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-Type
(For Comparison
Only)
Activities Activities 2022 2021
ASSETS
Cash and cash equivalents (Note 2)11,394,559$ 3,567,508$ 14,962,067$ 13,078,473$
Receivables, net (Note 3)594,643 228,602 823,245 1,310,879
Due from other governmental units (Note 4)454,876 496,209 951,085 554,685
Inventories 47 60,030 60,077 70,385
495,239 - 495,239 495,239
Prepaids 10,848 1,263 12,111 22,075
Loans receivable 21,646 - 21,646 37,168
26,535 2,888,625 2,915,160 4,446,379
Net pension asset (Notes 8 & 11)605,924 206,089 812,013 -
Capital assets: (Note 5)
Nondepreciable 2,458,431 613,259 3,071,690 2,361,390
Depreciable, net 7,922,547 10,285,117 18,207,664 17,068,849
Total assets 23,985,295 18,346,702 42,331,997 39,445,522
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 43,323 79,862 123,185 153,478
591,776 201,277 793,053 1,067,420
Deferred outflows related to other postemployment
benefits (Notes 9, 10, & 11)57,136 5,117 62,253 76,112
Total deferred outflows of resources 692,235 286,256 978,491 1,297,010
LIABILITIES
Accounts payable and accrued liabilities 244,013 609,955 853,968 481,418
Accrued payroll and related liabilities 163,150 43,361 206,511 251,580
Accrued interest payable 8,223 44,858 53,081 50,721
Customer security deposits - - - 45,200
Unearned revenue 3,791,901 - 3,791,901 4,232,682
734,328 1,037,864 1,772,192 1,649,738
Noncurrent liabilities due in more than one year:
Net pension liability (Notes 8 & 11)- - - 2,669,065
Net other postemployment
benefit liability (Notes 9, 10, & 11)336,771 36,392 373,163 572,061
Long-term liabilities due in more than one year (Note 6)1,608,494 6,880,964 8,489,458 9,931,101
Total liabilities 6,886,880 8,653,394 15,540,274 19,883,566
DEFERRED INFLOWS OF RESOURCES
Property taxes 936,222 - 936,222 737,493
Deferred inflows related to pensions (Notes 8 & 11)2,099,762 714,178 2,813,940 289,367
Deferred inflow related to other postemployment
benefits (Notes 9, 10, & 11)342,737 30,692 373,429 242,990
Total deferred inflows of resources 3,378,721 744,870 4,123,591 1,269,850
NET POSITION
8,516,026 5,992,839 14,508,865 12,717,555
Public safety 299,773 - 299,773 406,739
Pensions 605,924 206,089 812,013 -
Unrestricted 4,990,206 3,035,766 8,025,972 6,464,822
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2022
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.
14
EXHIBIT 2
Charges for
Comparison
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2022 2021
Governmental activities
1,838,254$ 123,649$ 537,213$ -$ (1,177,392)$ (1,177,392)$ (2,474,785)$
Public safety 2,701,937 91,340 435,425 40,657 (2,134,515) (2,134,515) (1,785,055)
Public works 1,793,344 124,755 1,285,404 107,589 (275,596) (275,596) (556,306)
Planning and zoning - - 4,062 - 4,062 4,062 -
Parks, recreation, and cultural 481,002 143,753 - - (337,249) (337,249) (397,207)
Community development 646,588 5,430 820 247,328 (393,010) (393,010) 154,045
Interest on long-term debt 104,711 - - - (104,711) (104,711) (68,126)
Total governmental activities 7,565,836 488,927 2,262,924 395,574 (4,418,411) (4,418,411) (5,127,434)
Business-type activities
Water and sewer 3,493,083 4,222,118 - - - 729,035$ 729,035 473,017
Stormwater management 320,668 - - - - (320,668) (320,668) (399,797)
Total business-type activities 3,813,751 4,222,118 - - - 408,367 408,367 73,220
Total 11,379,587$4,711,045$ 2,262,924$ 395,574$ (4,418,411) 408,367 (4,010,044) (5,054,214)
General revenues
Property taxes (Note 15)839,021 - 839,021 759,771
Sales tax 1,331,193 - 1,331,193 1,236,214
Meals tax 1,668,087 - 1,668,087 1,417,813
Utilities tax 697,847 - 697,847 689,181
Pari-mutuel tax 1,023,595 - 1,023,595 643,785
Business license tax 785,146 - 785,146 672,841
Bank stock tax 276,548 - 276,548 226,925
Cigarette tax 145,951 - 145,951 145,993
Vehicle license fee 178,600 - 178,600 187,918
Other local taxes 29,469 - 29,469 44,584
Intergovernmental revenue not program specific 344,058 - 344,058 1,702,176
Unrestricted investment earnings 10,804 1,501 12,305 26,147
Restricted investment earnings - 10,058 10,058 757
Rebates 214,416 - 214,416 -
Other 16,598 494,659 511,257 540,966
Transfers (Note 19)(595,938) 595,938 - -
Total general revenues 6,965,395 1,102,156 8,067,551 8,295,071
Change in net position 2,546,984 1,510,523 4,057,507 3,240,857
NET POSITION AT JULY 1 11,864,945 7,724,171 19,589,116 16,348,259
NET POSITION AT JUNE 30 14,411,929$ 9,234,694$ 23,646,623$ 19,589,116$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2022
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are an integral part of this statement.
15
EXHIBIT 3
2021
Capital Total Total
General Projects Grant Governmental Governmental
Fund Fund Fund Funds Funds
Comparison
ASSETS
Cash and cash equivalents 6,352,775$ 1,413,830$ 3,627,954$ 11,394,559$ 10,062,515$
Receivables, net 594,643 - - 594,643 534,462
Due from other governmental units 286,613 - 168,263 454,876 554,685
Inventories 47 - - 47 70
Land held for resale 495,239 - - 495,239 495,239
Prepaids 10,848 - - 10,848 20,201
Loans receivable 21,646 - - 21,646 37,168
Cash and cash equivalents, restricted 26,535 - - 26,535 28,034
Total assets 7,788,346$ 1,413,830$ 3,796,217$ 12,998,393$ 11,732,374$
LIABILITIES
Accounts payable and accrued liabilities 209,069$ 14,600$ 20,344$ 244,013$ 225,139$
Accrued payroll and related liabilities 163,109 - 41 163,150 186,226
21,026 - 3,770,875 3,791,901 4,232,682
Total liabilities 393,204 14,600 3,791,260 4,199,064 4,644,047
DEFERRED INFLOWS OF RESOURCES
Deferred revenue 1,429,363 - - 1,429,363 1,165,214
Total deferred inflows of resources 1,429,363 - - 1,429,363 1,165,214
FUND BALANCES (Note 20)
Nonspendable 31,825 - 78,405 110,230 599,269
Restricted 294,816 - 4,957 299,773 406,739
Committed - 1,399,230 - 1,399,230 1,366,195
Assigned 33,458 - - 33,458 85,776
Unassigned 5,605,680 - (78,405) 5,527,275 3,465,134
Total fund balances 5,965,779 1,399,230 4,957 7,369,966 5,923,113
Total liabilities, deferred inflows of resources,
and fund balances 7,788,346$ 1,413,830$ 3,796,217$ 12,998,393$ 11,732,374$
Unearned revenue
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2022
2022
The Notes to Financial Statements are an integral part of this statement.
16
EXHIBIT 4
(For
Comparison
Only)
2022 2021
Total Fund Balances – Governmental Fund 7,369,966$ 5,923,113$
are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Governmental capital assets 21,815,676$
Less: accumulated depreciation (11,434,698)
10,380,978 9,749,029
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.493,141 427,721
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 591,776
Other postemployment benefits 57,136
Deferred inflows related to:
Pensions (2,099,762)
Other postemployment benefits (342,737)
605,924
Net other postemployment benefits liability (336,771)
(1,524,434) (2,074,133)
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 (1,280,885)
(584,067)
Accrued interest payable (8,223)
Compensated absences (434,547)
(2,307,722) (2,160,785)
Total Net Position – Governmental Activities 14,411,929$ 11,864,945$
Net pension asset
Operating lease obligations
TOWN OF VINTON, VIRGINIA
TO THE STATEMENT OF NET POSITION
June 30, 2022
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.
17
EXHIBIT 5
2021
Capital Total Total
General Projects Grant Governmental Governmental
Fund Fund Fund Funds Funds
Comparison
Only)
REVENUES
General property taxes 800,477$ -$ -$ 800,477$ 755,762$
Other local taxes 6,119,154 - - 6,119,154 5,239,902
Permits, privilege fees, and regulatory licenses 5,430 - - 5,430 5,490
Fines and forfeitures 61,990 - - 61,990 52,305
Revenues from use of money and property 128,192 - - 128,192 139,588
Charges for services 162,636 - - 162,636 69,391
Other 129,411 - - 129,411 131,824
Recovered costs 234,172 - - 234,172 98,269
Non-categorical aid 421,968 - 488,230 910,198 1,834,492
Categorical aid 1,580,484 - 511,194 2,091,678 2,230,711
Total revenues 9,643,914 - 999,424 10,643,338 10,557,734
EXPENDITURES
Current:
General government administration 838,742 - 567,171 1,405,913 2,474,141
Public safety 2,461,532 20,449 108,738 2,590,719 2,155,855
Public works 1,406,427 600 - 1,407,027 1,395,665
Parks, recreation, and cultural 507,955 - - 507,955 500,690
Community development 503,752 - 197,929 701,681 571,140
Capital projects 245,508 695,916 120,629 1,062,053 1,450,148
Debt service:
Principal retirement 836,347 - - 836,347 452,490
Interest and fiscal charges 88,852 - - 88,852 62,640
Total expenditures 6,889,115 716,965 994,467 8,600,547 9,062,769
Excess (deficit) of revenues over (under) expenditures 2,754,799 (716,965) 4,957 2,042,791 1,494,965
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - - - - 321,000
Payment to refunded bonds escrow agent - - - - (313,402)
Transfers in - 750,000 - 750,000 1,706,583
Transfers out (1,345,938) - - (1,345,938) (2,116,323)
Total other financing sources (uses)(1,345,938) 750,000 - (595,938) (402,142)
Net change in fund balance 1,408,861 33,035 4,957 1,446,853 1,092,823
FUND BALANCE AT JULY 1 4,556,918 1,366,195 - 5,923,113 4,830,290
FUND BALANCE AT JUNE 30 5,965,779$ 1,399,230$ 4,957$ 7,369,966$ 5,923,113$
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended June 30, 2022
2022
The Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT 6
(For
Comparison
Only)
2022 2021
Net change in fund balance governmental fund 1,446,853$ 1,092,823$
-5,128
631,949 894,392
65,420 29,365
508,443 (257,045)
Employer pension contributions $287,556
Pension expense (795,999)
Employer other postemployment benefit contributions $16,172
Other postemployment benefits expense (57,428)
41,256 27,533
(3,293) 434,281
(143,644) 79,768
Change in net position of governmental activities
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.
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
increase 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 is allocated over their estimated useful lives as depreciation expense.This is the
amount by which depreciation $1,010,901 exceeded capital outlay $819,069 and the value of the right-
of-use lease asset addition in the current period $823,781.
Governmental funds report employer other postemployment benefit contributions as expenditures.
However,in the statement of activities the cost of these benefits earned,net of employee contributions,
is reported as other postemployment benefit expense.
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF
THE GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2022
Governmental Funds
Revenues in the statement of activities that do not provide current financial resources are not reported
as revenues in the funds.
Amounts reported for governmental activities in the statement of activities are different because:
The Notes to Financial Statements are an integral part of this statement.
19
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 741,674$ 941,674$ 800,477$ (141,197)$
Other local taxes 4,809,029 5,607,262 6,119,154 511,892
Permits, privilege fees, and
regulatory licenses 4,646 4,646 5,430 784
Fines and forfeitures 31,616 44,616 61,990 17,374
Revenues from use of money
and property 118,115 118,115 128,192 10,077
Charges for services 127,787 154,787 162,636 7,849
Other 132,858 148,358 129,411 (18,947)
Recovered costs 92,231 97,276 234,172 136,896
Non-categorical aid 425,346 425,346 421,968 (3,378)
Categorical aid 1,548,956 1,557,956 1,580,484 22,528
Total revenues 8,032,258 9,100,036 9,643,914 543,878
EXPENDITURES
Total expenditures 7,275,094 8,098,953 6,889,115 1,209,838
OTHER FINANCING USES
Transfers out (757,164) (1,345,938) (1,345,938) -
Net change in fund balance -$ (344,855)$ 1,408,861$ 1,753,716$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2022
The Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT 8
2021
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
Current assets:
Cash and cash equivalents 3,111,524$ 455,984$ 3,567,508$ 3,015,958$
Receivables, net 228,602 - 228,602 776,417
Due from other governmental units 496,209 - 496,209 -
Inventories 58,441 1,589 60,030 70,315
Prepaids 1,262 1 1,263 1,874
Cash and cash equivalents, restricted 2,888,625 - 2,888,625 4,418,345
Total current assets 6,784,663 457,574 7,242,237 8,282,909
Noncurrent assets:
Net pension asset (Notes 8 & 11)167,275 38,814 206,089 -
Capital assets:
Nondepreciable 595,026 18,233 613,259 243,701
Depreciable, net 9,960,502 324,615 10,285,117 9,437,509
Total noncurrent assets 10,722,803 381,662 11,104,465 9,681,210
Total assets 17,507,466 839,236 18,346,702 17,964,119
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 79,862 - 79,862 93,597
Deferred outflows related to pensions (Notes 8 & 11)163,369 37,908 201,277 271,231
Deferred outflows related to other postemployment
benefits (Notes 9, 10, & 11)4,264 853 5,117 7,612
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
579,672 134,506 714,178 73,528
NET POSITION
Business-Type Activities –
Enterprise Funds
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2022
2022
The Notes to Financial Statements are an integral part of this statement.
21
EXHIBIT 9
2021
(For Comparison
Only)
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
OPERATING REVENUES
Water service charges and fees 1,950,097$ -$ 1,950,097$ 1,729,140$
Sewer service charges and fees 2,220,592 - 2,220,592 2,002,009
Water/sewer penalties 51,429 - 51,429 51,617
Other revenue 494,659 - 494,659 446,540
Total operating revenues 4,716,777 - 4,716,777 4,229,306
OPERATING EXPENSES
Total operating expenses 3,321,448 316,423 3,637,871 3,862,514
Operating income (loss)1,395,329 (316,423) 1,078,906 366,792
NON-OPERATING REVENUE (EXPENSE)
Net non-operating revenue (expense)(160,076) (4,245) (164,321) 158,080
Income (loss) before transfers 1,235,253 (320,668) 914,585 524,872
TRANSFERS IN (OUT)
Change in net position 1,028,089 482,434 1,510,523 934,612
NET POSITION AT JULY 1
NET POSITION AT JUNE 30 8,557,146$ 677,548$ 9,234,694$ 7,724,171$
2022
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
22
EXHIBIT 10
2021
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
(For Comparison
Only)
OPERATING ACTIVITIES
Receipts from customers 4,228,524$ -$ 4,228,524$ 3,712,707$
Receipts from other sources 494,659 - 494,659 446,540
Payments to suppliers (1,623,142) (35,243) (1,658,385) (1,583,480)
Payments to employees (1,212,738) (269,935) (1,482,673) (1,342,772)
Net cash provided by (used in) operating activities 1,887,303 (305,178) 1,582,125 1,232,995
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds (207,164) 803,102 595,938 409,740
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (1,403,756) (166,881) (1,570,637) (568,196)
Principal paid on long-term liabilities (1,277,109) (178,474) (1,455,583) (1,886,392)
Proceeds from long-term liabilities - - - 5,827,525
Debt issuance costs 359 - 359 75,264
Interest paid (140,991) (940) (141,931) (142,823)
Net cash provided by (used in) capital and related
financing activities (2,821,497) (346,295) (3,167,792) 3,305,378
INVESTING ACTIVITIES
Interest received on investments 11,559 - 11,559 5,112
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1 7,129,948 304,355 7,434,303 2,481,078
Ending at June 30 6,000,149$ 455,984$ 6,456,133$ 7,434,303$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 3,111,524$ 455,984$ 3,567,508$ 3,015,958$
Cash and cash equivalents, restricted 2,888,625 - 2,888,625 4,418,345
6,000,149$ 455,984$ 6,456,133$ 7,434,303$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)1,395,329$ (316,423)$ 1,078,906$ 366,792$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 818,804 40,032 858,836 910,148
Pension benefit (expense) net of employer contributions (127,662) (46,033) (173,695) 59,386
Other postemployment benefit (expense) net of
employer contributions (11,348) (1,996) (13,344) 1,398
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net 51,606 - 51,606 (68,759)
Inventories 8,825 1,460 10,285 (6,327)
Prepaids 603 8 611 29,911
Increase (decrease) in:
Accounts payable and accrued liabilities (184,785) 26,214 (158,571) (63,096)
Accrued payroll and related liabilities (15,205) (6,788) (21,993) 11,208
Customer security deposits (45,200) - (45,200) (1,300)
Compensated absences (3,664) (1,652) (5,316) (6,366)
Net cash provided by (used in) operating activities 1,887,303$ (305,178)$ 1,582,125$ 1,232,995$
NON-CASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 622,685$ -$ 622,685$ 110,438$
Capital contributions -$ -$ -$ 364,920$
Loss on disposal of assets (6,882)$ -$ (6,882)$ -$ \
2022
TOWN OF VINTON, VIRGINIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended June 30, 2022
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
23
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
24
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 $218,501 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 $385,025 in the current year. Separate financial statements are not
available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
25
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, 2022
(Continued)
26
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, 2022
(Continued)
27
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 $1,517,000 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, 2022
(Continued)
28
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 premium 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 the 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, 2022
(Continued)
29
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.Leases
For the year ended June 30, 2022, the financial statements include the adoption of GASB
Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and
consistency of information about governments’ leasing activities. This statement establishes a
single model of lease accounting based on the principle that leases are financings of the right to
use an underlying asset. Under the statement, a lease is required to recognize a lease liability and
an intangible right-to-use lease asset.
M.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 assets 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 assets that applies to
future periods and so will not be recognized as an inflow of resources (revenue) until that time.
N.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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
30
Note 1.Summary of Significant Accounting Policies (Continued)
O.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.
P.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.
Q.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, 2022
(Continued)
31
Note 1.Summary of Significant Accounting Policies (Continued)
Q.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.
R.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.
S.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 GAAP.
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.
T.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, 2022
(Continued)
32
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, 2022
(Continued)
33
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, 2022
(Continued)
34
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 $14,956,141
Cash on hand 1,309
14,957,450
Investments (Fair Value) (Level 1 Inputs)
LGIP 21,019
VML VIP Liquidity Pool 10,185
SNAP 2,888,573
Total deposits and investments $17,877,227
Exhibit 1 total deposits and investments is composed as follows:
Cash and investments $14,962,067
Restricted cash 2,915,160
Total deposits and investments $17,877,227
Restricted cash and cash equivalents consist of $2,888,573 in unspent bond proceeds, $25,209 of
evidence found, and $1,378 of flex benefit spending that can only be used for specific purposes.
The Town categorizes its fair value measurements within the fair value hierarchy established by
GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
other observable inputs; and Level 3 inputs are significant unobservable inputs.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
35
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
Governmental funds report unavailable revenue in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with resources that have been received, but not yet earned. At
the end of the current fiscal year, the various components of unavailable and unearned revenue
reported in the general fund were as follows:
Unavailable Unearned
Second half property taxes billed in advance $936,222 $
Delinquent property taxes receivable 283,602 283,602
Vehicle license fee 67,352 -
Sales and communication taxes 132,593 -
Deposits on facility use - 21,026
Other 9,594 -
$1,429,363 $1,240,850
The General Fund reported unearned revenue of $1,219,824 related to taxes and $21,026 related to
deposits for facility use. The Grant Fund reported unearned revenue of $3,770,875 in connection with
the Coronavirus State and Local Recovery Funds related costs.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
36
Note 4.Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
Governmental
Activities
Business-type
Activities
Commonwealth of Virginia
Communication taxes $38,851 $-
Rolling stock tax 8,204 -
Highway infrastructure program 1,960 -
Miscellaneous non-categorical aid 269 -
49,284 -
Federal Government
Other 166,303 -
County of Roanoke
Local sales taxes 230,496 -
Other 8,793 -
239,289 -
Western Virginia Water Authority - 496,209
$454,876 $496,209
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 $1,823,532 $- $- $1,823,532
Construction in progress 294,157 375,722 (34,980)634,899
Total capital assets, not depreciated 2,117,689 375,722 (34,980)2,458,431
Capital assets, depreciated
Buildings and improvements 10,030,095 68,187 - 10,098,282
Machinery and equipment 4,154,347 1,158,276 (262,080)5,050,543
Infrastructure 4,132,775 75,645 - 4,208,420
Total capital assets, depreciated 18,317,217 1,302,108 (262,080)19,357,245
Less accumulated depreciation for:
Buildings and improvements (5,559,440)(315,265)- (5,874,705)
Machinery and equipment (3,122,089)(489,540)262,080 (3,349,549)
Infrastructure (2,004,348)(206,096)- (2,210,444)
Total accumulated depreciation (10,685,877)(1,010,901)262,080 (11,434,698)
Total capital assets, depreciated, net 7,631,340 291,207 - 7,922,547
Governmental activities
capital assets, net $9,749,029 $666,929 $(34,980)$10,380,978
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
37
Note 5.Capital Assets (Continued)
Business-type Activities
Beginning
Balance Increases Decreases
Ending
Balance
Capital assets, not depreciated
Land $80,752 $- $- $80,752
Construction progress 162,949 506,008 (136,450)532,507
Total capital assets, not depreciated 243,701 506,008 (136,450)613,259
Capital assets, depreciated
Utility plant 20,169,374 1,392,935 - 21,562,309
Sewage treatment contract 4,066,884 - - 4,066,884
Machinery and equipment 2,290,954 320,391 (141,562)2,469,783
Total capital assets, depreciated 26,527,212 1,713,326 (141,562)28,098,976
Less accumulated depreciation for:
Utility plant (13,390,148)(528,571)- (13,918,719)
Sewage treatment contract (2,289,159)(144,843)- (2,434,002)
Machinery and equipment (1,410,396)(185,422)134,680 (1,461,138)
Total accumulated depreciation (17,089,703)(858,836)134,680 (17,813,859)
Total capital assets, depreciated, net 9,437,509 854,490 (6,882)10,285,117
Business-type activities
capital assets, net $9,681,210 $1,360,498 $(143,332)$10,898,376
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town has a $421,000 construction commitment for the Gus Nicks Bridge Improvement
construction project, a $761,000 construction commitment for phase two of the Glade Creek
Greenway construction project, a $1,781,000 construction commitment for the Walnut Avenue Bike
and Pedestrian construction project, a $1,081,000 construction commitment for the Walnut Avenue
and Lee Street construction project, a $1,674,000 construction commitment for the 3rd Street Lift
Station,and a $552,000 construction commitment for the Woodland Pipeline Stream Restoration as of
June 30, 2022.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
38
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 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.On July 1, 2022,this loan, along with several others, was
transferred 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. The Town’s share was approximately 5.5% or $710,808.
The Town issued debt in 2022 for $710,000. It received $324,000 of the funds and the Western
Virginia Water Authority received the remainder. On July 1, 2022,this loan,along with several
others,was transferred to the Western Virginia Water Authority.
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.On July 1, 2022, this annual contribution was discontinued as part of the
transfer to the Western Virginia Water Authority.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
39
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 $1,670,595 $- $(346,387)$1,324,208 $348,733
Obligation payable –
11,200 - (11,200)- -
Operating leases - 823,781 (239,714)584,067 242,194
Financing leases 239,046 - (239,046)- -
Compensated absences 290,903 239,642 (95,998)434,547 143,401
Business-type
General obligation bonds*$7,179,119 $- $(820,328)$6,358,791 $823,218
Revenue bonds 1,338,000 - (181,000)1,157,000 181,000
Obligation payable –
379,277 - (21,136)358,141 21,973
Financing leases 433,119 - (433,119)- -
Compensated absences 39,580 19,968 (14,652)44,896 11,673
* Several loans are transferred to Western Virginia Water Authority on July 1, 2022.See Note 21.
Governmental activities’ compensated absences, pension liabilities, and other postemployment
liabilities are generally liquidated by the general fund.
Governmental Activities
General Obligation
Bonds Operating Leases
Fiscal
Year Principal Interest Principal Interest
$
2023 $348,733 $23,087 $242,194 $15,320
2024 360,577 16,020 191,207 12,712
2025 360,898 8,816 107,564 7,551
2026 127,000 4,048 28,012 3,539
2027 127,000 1,638 15,090 2,192
$1,324,208 $53,609 $584,067 $
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
40
Note 6.Long-Term Liabilities (Continued)
General Obligation
Bonds*Revenue Bonds
Obligation Payable
WVWA*
Fiscal
Year Principal Interest Principal Interest Principal Interest
2023 823,218 $96,719 $181,000 $21,863 21,973 12,190
2024 834,577 85,112 186,000 18,101 22,633 11,531
2025 807,973 73,313 191,000 14,237 23,313 10,851
2026 778,304 61,970 196,000 10,272 24,017 10,147
2027 619,719 50,880 200,000 6,211 24,745 9,419
2028-2032 2,384,000 113,444 203,000 2,081 135,552 35,265
2033-2037 111,000 1,843 - - 56,988 17,875
2038-2042 - - - - 48,920 4,887
$6,358,791 $483,281 $1,157,000 $72,765 $358,141 $112,165
*Several loans are transferred to Western Virginia Water Authority on July 1, 2022.See Note 21.
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, 2022, was 1.57.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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
41
Note 6.Long-Term Liabilities (Continued)
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 $- $207,551
G.O. Water and Sewer Bonds*1.00%10/01/04 10/01/26 2,479,000 - 704,733
G.O. Water and Sewer Bonds*1.00%01/12/06 03/01/26 1,210,000 - 308,507
Virginia Association of Counties:
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 359,000 -
Zions Bancorporation
G.O. Capital Improvement Bonds 1.66%04/22/21 03/01/33 4,429,000 - 4,009,000
G.O. Refunding Bonds 1.66%04/22/21 03/01/33 1,546,000 269,000 1,129,000
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 696,208 -
$1,324,208 $6,358,791
Revenue Bonds
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 $1,786,000 $- $1,157,000
Operating Leases
Enterprise Fleet Vehicles Various Various Various 573,782 $512,518 $-
Copiers 3.50%07/01/21 10/31/24 40,687 28,890 -
Storage Building 3.50%07/01/21 06/30/25 56,076 42,659 -
$584,067 $-
Obligations Payable
WVWA* 2.35%03/01/15 09/01/32 294,516 $- $189,947
WVWA*4.75%07/01/21 06/01/41 173,525 - 168,194
$- $358,141
* Loans transferred to Western Virginia Water Authority on July 1, 2022.See Note 21.
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, 2033. As of June 30, 2022, the amount earned is $485,752 and the amount unearned is
$4,569,695.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
42
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 cost-
sharing 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.
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, 2020,actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 83
Inactive members:
Vested inactive members 22
Non-vested inactive members 40
Inactive members active elsewhere in VRS 58
Total inactive members 120
Active members 67
Total covered employees 270
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
43
Note 8.Defined Benefit Pension Plan (Continued)
Contributions (Continued)
The political subdivision’s contractually required contribution rate for the year ended June 30, 2022,
was 11.81% 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 $385,361 and
$365,876 for the years ended June 30, 2022,and June 30, 2021, respectively.
Net Pension Liability (Asset)
The political subdivision’s net pension liability (asset)is calculated separately for each employer and
represents that particular employer’s total pension liability (asset) determined in accordance with
GASB Statement No. 68, less that employer’s fiduciary net position. For political subdivisions, the
net pension liability (asset) was measured as of June 30, 2021. The total pension liability used to
calculate the net pension liability (asset)was determined by an actuarial valuation performed as of
June 30, 2020 rolled forward to the measurement date of June 30, 2021.
Actuarial Assumptions
The total pension liability (asset) 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, 2020, using the Entry Age Normal actuarial cost method and the following assumptions,
applied to all periods included in the measurement and rolled forward to the measurement date of
June 30, 2021.
Inflation 2.50%
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*
Mortality rates: General employees –15 to 20% of deaths are assumed to be service related. Public
Safety Employees –45% to 70% of deaths are assumed to be service related. Mortality is projected
using the applicable Pub-2010 Mortality Table with various setbacks or set forwards for both males
and females.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
44
Note 8.Defined Benefit Pension Plan (Continued)
Actuarial Assumptions (Continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to
the actuarial assumptions as a result of the experience study are as follows:
General Employees –Largest 10 –Non-Hazardous Duty and All Others (Non 10 Largest):
Update mortality table;adjusted retirement rates; adjusted withdrawal rates to better fit
experience at each year age and service through 9 years of service; no change to disability rates,
no change to salary scale, no change to line of duty disability; and no change to discount rate.
Public Safety Employees –Largest 10 –Hazardous Duty and All Others (Non 10 Largest):
Update mortality table; adjusted retirement rate to better fit experience and increased final
retirement age to 70; adjusted rates to withdrawal; no change to disability rates; no changes to
salary scale; no change to line of duty disability; and no change to discount rate.
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
weighing 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 %5.00 %1.70 %
Fixed Income 15.00 0.57 0.09
Credit Strategies 14.00 4.49 0.63
Real Assets 14.00 4.76 0.67
Private Equity 14.00 9.94 1.39
MAPS-Multi-Asset Public Strategies 6.00 3.29 0.20
PIP-Private Investment Partnership 3.00 6.84 0.21
Total 100.00 %4.89 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.39 %
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
45
Note 8.Defined Benefit Pension Plan (Continued)
Long-Term Expected Rate of Return (Continued)
*The above allocation provides for a one-year return of 7.39%. However, one-year returns do
not take into account the volatility present in each of the asset classes. In setting the
long-term expected 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 6.94%, 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 at that time, providing a median return of 7.11%, including expected
inflation of 2.50%.
Discount Rate
The discount rate used to measure the total pension liability (asset)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, 2021, 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, 2021 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 (asset).
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
46
Note 8.Defined Benefit Pension Plan (Continued)
Changes in Net Pension Liability (Asset)
Increase (Decrease)
Net
Total Plan Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
(a)(b)(a) –(b)
Balances at June 30, 2020 $20,113,855 $17,444,790 $2,669,065
Changes for the year:
Service cost 404,359 - 404,359
Interest 1,314,789 - 1,314,789
Changes of assumptions 753,194 - 753,194
Differences between expected
and actual experience (791,541)- (791,541)
Contributions –employer - 348,537 (348,537)
Contributions –employee - 137,919 (137,919)
Net investment income - 4,687,089 (4,687,089)
Benefit payments, including refunds
of employee contributions (1,270,991)(1,270,991)-
Administrative expenses - (12,105)12,105
Other changes - 439 (439)
Net changes 409,810 3,890,888 (3,481,078)
Balances at June 30, 2021 $20,523,665 $21,335,678 $(812,013)
Sensitivity of the Net Pension Liability (Asset)to Changes in the Discount Rate
The following presents the net pension liability (asset) of the political subdivision using the discount
rate of 6.75%, as well as what the political subdivision’s net pension liability (asset)would be if it
was 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 (asset)$1,748,283 $(812,013)$(2,926,105)
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
47
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, 2022, the political subdivision recognized pension expense of $(314,114).
At June 30, 2022,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 $- $497,777
Change in assumptions 407,692 -
on pension plan investments - 2,316,163
Employer contributions subsequent to the
measurement date 385,361 -
Total $793,053 $2,813,940
The $385,361 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 (Asset) in the fiscal year ending June 30, 2023. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense as follows:
Reduction
Year Ended to Pension
June 30,Expense
2023 (628,995)
2024 (531,132)
2025 (538,835)
2026 (707,286)
2027 -
Thereafter -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
48
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 2021 Comprehensive Annual Financial Report (Annual Report). A copy of the 2021
VRS Annual Report may be downloaded from the VRS website at
http://www.varetire.org/Pdf/Publications/2021-annual-report.pdf, or by writing to the System’s Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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.
Employees Covered by Benefit Terms
As of the July 1, 2021 actuarial valuation, the following employees were covered by the benefit terms
of the plan:
Number
Inactive employees or beneficiaries 2
Active plan members 64
66
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
49
Note 9.Other Postemployment Benefits Liability –Local Plan (Continued)
Total OPEB Liability
The Town’s total OPEB liability of $207,371 was measured as of June 30, 2022,and was determined
based on an actuarial valuation performed as of July 1, 2021.
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 3.00%
Salary increases, including inflation 3.00%
Healthcare cost trend rates 5.00%for all future years
Retirees’ share of benefit-related costs $-0-
Mortality rates:PUB 2010 General (M/F)with MP 2021 projection.
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an
actuarial VRS experience as of July 1, 2021.
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, 2021 $318,565
Changes for the year:
Service cost 23,000
Interest 6,647
Difference between expected
and actual experience (9,083)
Assumption or other input changes (110,123)
Benefit payments (21,635)
Net changes (111,194)
Balance at June 30, 2022 $207,371
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
50
Note 9.Other Postemployment Benefits Liability –Local Plan (Continued)
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 was calculated using a discount rate that is one percentage point lower (3.09%)
or one percentage point higher (5.09%) than the current discount rate:
1.00%Current 1.00%
Decrease Discount Increase
(3.09%)Rate (4.09%)(5.09%)
Total OPEB liability $237,392 $207,371 $181,487
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 was calculated using healthcare cost trend rates that are one percentage point
lower (4.0%) or one percentage point higher (6.0%) than the current healthcare cost trend rates:
Current
1.00%
Decrease
Healthcare
Cost Trend
1.00%
Increase
(4.00%)
Rates
(5.00%)(6.00%)
Total OPEB liability $178,860 $207,371 $242,275
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended June 30, 2022, the Town recognized OPEB expense of $(12,529).At
June 30, 2022, 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 $- $112,935
Change in assumptions 10,394 140,036
Total $10,394 $252,971
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
51
Note 9.Other Postemployment Benefits Liability –Local Plan (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB (Continued)
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, 2023. 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
2023 $(42,176)
2024 (42,176)
2025 (42,176)
2026 (42,412)
2027 (33,901)
Thereafter (39,736)
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
52
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
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, 2022 Contribution $17,620
June 30, 2021 Contribution $15,876
OPEB Liability, OPEB Expense,and Deferred Inflows and Outflows of Resources Related to
OPEB
The net OPEB liability was measured as of June 30, 2021,and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation performed as of
June 30, 2020,and rolled forward to the measurement date of June 30, 2021. The covered employer’s
proportion of the net OPEB liability was based on the covered employer’s actuarially determined
employer contributions for the year ended June 30, 2021,relative to the total of the actuarially
determined employer contributions for all participating employers.
Group Life Insurance Program
June 30, 2022 proportionate share of
liability $165,792
June 30, 2021 proportion 0.01424%
June 30, 2020 proportion 0.01519%
June 30, 2022 expense $(2,770)
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(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)
At June 30, 2022, 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 $18,909 $1,263
Change in assumptions 9,140 22,684
on OPEB plan investments - 39,570
Changes in proportion 6,190 56,941
Employer contributions subsequent to the
measurement date 17,620 -
Total $51,859 $120,458
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 Fiscal Year ending June 30, 2023. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to OPEB will be recognized in OPEB expense in future
reporting periods as follows:
Group Life Insurance Program
Reduction
Year Ended to OPEB
June 30,Expense
2023 $(17,730)
2024 (18,240)
2025 (20,078)
2026 (23,697)
2027 (6,474)
Thereafter -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
54
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
Actuarial Assumptions and Other Inputs
The total OPEB liability was determined using the following assumptions based on an actuarial
valuation date of June 30, 2020, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2021:
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%
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, 2021, net OPEB liability amounts for the VRS OPEB program is as follows (amounts
expressed in thousands):
Group Life
Insurance
Program
Total OPEB Liability $ 3,577,346
Plan fiduciary net
position $ 2,413,074
Employers’ net OPEB
liability (asset)$ 1,164,272
Plan fiduciary net
position as a percentage
of total OPEB liability 67.45%
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, 2022
(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 %5.00 %1.70 %
Fixed Income 15.00 0.57 0.09
Credit Strategies 14.00 4.49 0.63
Real Assets 14.00 4.76 0.67
Private Equity 14.00 9.94 1.39
MAPS-Multi-Asset Public Strategies 6.00 3.29 0.20
PIP-Private Investment Partnership 3.00 6.84 0.21
Total 100.00 %4.89 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.39 %
*The above allocation provides for a one-year return of 7.39%. However, one-year returns do
not take into account the volatility present in each of the asset classes. In setting the
long-term expected 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 6.94%, 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 at that time, providing a median return of 7.11, including inflation of
2.50%.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(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 was 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 $242,228 $165,792 $104,066
OPEB Plan Fiduciary Net Position
Information about the various VRS OPEB plan fiduciary net position is available in the separately
issued VRS 2021 Comprehensive Annual Financial Report (Annual Report). A copy of the 2021 VRS
Annual Report may be downloaded from the VRS website at
http://www.varetire.org/Pdf/Publications/2021-annual-report.pdf, or by writing to the System’s Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
57
Note 11.Summary of Pension and Other Postemployment Benefits Elements
Total
Governmental Business-Type Primary
Activities Activities Government
Net pension asset
VRS $605,924 $206,089 $812,013
Total net pension asset $605,924 $206,089 $812,013
Local plan $184,606 $22,765 $207,371
VRS GLI 152,165 13,627 165,792
Total net OPEB liability $336,771 $36,392 $373,163
Deferred outflows of resources –
pensions
Changes of assumptions
VRS $304,220 $103,472 $407,692
Employer contributions subsequent
to the measurement date
VRS 287,556 97,805 385,361
Total deferred outflows of
resources –pensions $591,776 $201,277 $793,053
Deferred outflows of resources –
OPEB
Differences between expected and
actual experience
VRS GLI $17,355 $1,554 $18,909
Changes of assumptions
Local plan 9,540 854 10,394
VRS GLI 8,389 751 9,140
Employer contributions subsequent
to the measurement date
VRS GLI 16,172 1,448 17,620
Changes in proportional share
VRS GLI 5,680 510 6,190
Total deferred outflows of
$57,136 $5,117 $62,253
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
58
Note 11.Summary of Pension and Other Postemployment Benefit Elements (Continued)
Total
Governmental Business-Type Primary
Activities Activities Government
Deferred inflows of resources –
pensions
Difference between expected and
actual experience
VRS $371,441 $126,336 $497,777
Net difference between projected
and actual earnings on
investments
VRS 1,728,321 587,842 2,316,163
Total deferred inflows of
resources –pensions $2,099,762 $714,178 $2,813,940
Deferred inflows of resources –
OPEB
Difference between expected and
actual experience
Local plan $103,653 $9,282 $112,935
VRS GLI 1,159 104 1,263
Change in assumptions
Local plan 128,526 11,510 140,036
VRS GLI 20,820 1,864 22,684
Change in proportionate share
VRS GLI 52,261 4,680 56,941
Net difference between projected
and actual earnings on
investments
VRS GLI 36,318 3,252 39,570
Total deferred inflows of
resources –OPEB $342,737 $30,692 $373,429
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
59
Note 12.Summary of Pension and Other Postemployment Benefit Expenses/Expenditures
Total
Governmental Business-Type Primary
Activities Activities Government
Pension expense
VRS $(234,392)$(79,722)$(314,114)
Total pension expense $(234,392)$(79,722)$(314,114)
OPEB expense
Local plan $(11,499)$(1,030)$(12,529)
VRS GLI (2,371)(399)(2,770)
Total OPEB expense $(13,870)$(1,429)$(15,299)
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 2022, the Town’s
matching contributions totaled $9,672.
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. All sewage treatment handled by the
Town will be transferred to the Western Virginia Water Authority on July 1, 2022.
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.All water services handled by the Town will be transferred to the Western
Virginia Water Authority on July 1, 2022.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(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.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
2021-2022, 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 2021-2022, total premiums paid were approximately $100,000.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
61
Note 16.Risk Management (Continued)
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 2021-2022, total premiums paid were approximately $623,000.
Note 17.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 $16.3 million. The participating localities have
contributed their pro-rata shares to fund the closure and post-closure care costs.
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.
Note 18.Major Customer/Taxpayer
During fiscal year 2022, approximately 6.9% of the Town’s business-type revenues were generated
by one industrial customer.
Note 19.Interfund Activity
The primary purpose of the $595,938 transfer from the general fund and $207,164 transfer from the
water and sewer fund to the stormwater management fund was to cover obligations of stormwater
fund. The primary purpose of the $750,000 transfer from the general fund to the capital projects fund
was to cover capital outlays for the capital projects fund.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
62
Note 20.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, capital projects fund, and grant fund. The constraints placed on the
funds are presented below:
General Fund Fund Grant Fund
Nonspendable:
Inventories $47 $- $-
Prepaids 10,848 - -
CDBG revolving loan - - 78,405
Vinyard Flower Fund 20,930 - -
Total nonspendable 31,825 - 78,405
Restricted for:
Public safety 294,816 - 4,957
General government administration - 1,399,230 -
Total committed - 1,399,230 -
Assigned:
General government administration 9,210 - -
Health and welfare 20,623 - -
Capital outlay 3,625 - -
Total assigned 33,458 - -
Unassigned 5,605,680 - (78,405)
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 is 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.
Note 21.Subsequent Events
Transfer to Western Virginia Water Authority
On July 1, 2022, the Town transferred its water and sewer system to Western Virginia Water
Authority (“WVWA”). This transfer included (1)billing responsibilities, (2) four employees that
were involved with the Town’s water and sewer operations, and (3) financing agreements and
revenue bonds and the then-existing revenue pledged liabilities and obligations of Vinton relating to
the system. WVWA will pay the Town a total purchase price of $3 million over three years beginning
in July 2023 to be paid in full no later than July 15, 2025.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
63
Note 21.Subsequent Events (Continued)
Transfer to Western Virginia Water Authority (Continued)
With regard to customer billing, WVWA has the right to receive all payments for services furnished
by the system collected on or after July 1, 2022, including payments from consumption incurred after
June 20, 2022,and billed after July 1, 2022. The Authority billed the Town’s last cycle and a
receivable from WVWA has been recorded for $496,209 as part of net receivables.
Inventory,as well as depreciable and nondepreciable capital assets (with exception of significant
equipment, motorized equipment,and vehicles),will transfer to the Authority.
The Town will provide WVWA with $5.7 million of American Rescue Plan Act (ARPA) funding for
water and wastewater-related capital improvements within the Vinton/East Roanoke County Utility
Service Area in fiscal year 2023. Approximately $1.3 million is unearned revenue in the Grant Fund
with the remainder received in fiscal year 2023.
With regard to long-term debt, WVWA will reimburse the Town for approximately $6.8 million in
General Obligation debt service payments by March 1, 2033. The following debt will be under this
new arrangement:
Interest
Rate Date Issued
Final
Maturity
Date
Amount of
Original Issue
General Obligation Bonds
Zions Bancorporation
G.O. Capital Improvement Bonds 1.66%04/22/21 03/01/33 $4,429,000
G.O. Refunding Bonds 1.66%04/22/21 03/01/33 1,546,000
Revenue Bonds
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 1,786,000
$7,761,000
The Town transferred the following debt to WVWA on July 1, 2022:
Series Date Issued
Final
Maturity
Date
Amount of
Original Issue
General Obligation Bonds
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 2003 07/24/03 07/01/24 $1,250,704
G.O. Water and Sewer Bonds 2004 10/01/04 10/01/26 2,479,000
G.O. Water and Sewer Bonds 2006 01/12/06 03/01/26 1,210,000
Obligations Payable
WVWA –Tinker Creek 2015 03/01/15 09/01/32 294,516
WVWA-Electrical Upgrade 2021 07/01/21 06/01/41 173,525
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
(Continued)
64
Note 21.Subsequent Events (Continued)
Construction Projects
On October 19, 2022, the Town granted a Construction Loan in the amount of $1,000,000 and an
Industrial Revitalization Loan in the amount of $468,750 to Gish Mill Davii, LLC. The Construction
Loan will assist a developer with construction costs related to the Gish Mill Redevelopment Project.
The Virginia Department of Housing & Community Development awarded the Town of Vinton an
Industrial Revitalization Fund grant in the amount of $468,750 for use by a developer for the Gish
Mill Redevelopment Project.
On August 16, 2022, the Town awarded a construction bid and executed a $1.4 million contract for
the construction of the Walnut Avenue Bike/Pedestrian Accommodations Project. The project will
include construction of a new shared-use path, sidewalk, curb, accessible ramps, etc. located along
Walnut Avenue from the intersection of Walnut Avenue and 5th Street to the western Town limits.
Note 22.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 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 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
65
Note 22.New Accounting Standards (Continued)
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.
In April 2022, the GASB issued Statement No. 99,Omnibus 2022.The objectives of this Statement
are to enhance comparability in accounting and financial reporting and to improve the consistency of
authoritative literature by addressing (1) practice issues that have been identified during
implementation and application of certain GASB Statements and (2) accounting and financial
reporting for financial guarantees. The requirements related to extension of the use of LIBOR,
accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future
revenues by pledging governments, clarification of certain provisions in Statement 34, as amended,
and terminology updates related to Statement 53 and Statement 63 are effective upon issuance. The
requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after
June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees
and the classification and reporting of derivative instruments within the scope of Statement 53 are
effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections.
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported
to beginning balances as restated. The requirements of this Statement are effective for accounting
changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting
periods thereafter. Earlier application is encouraged.
In June 2022, the GASB issued Statement No. 101, Compensated Absences. This statement updates
the recognition and measurement guidance for compensated absences and amends certain previously
required disclosures. The requirements of this Statement are effective for reporting periods beginning
after December 15, 2023.
Management has not determined the effects these new GASB Statements may have on prospective
financial statements.
66
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2021 2020 2019 2018 2017 2016 2015 2014
Total Pension Liability
Service cost 404,359$ 406,156$ 468,134$ 478,932$ 443,567$ 426,921$ 450,265$ 430,229$
Interest on total pension liability 1,314,789 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 (791,541) (477,134) (51,996) 361,554 (356,343) (201,924) 139,140 -
Changes in assumptions 753,194 - 565,700 - 8,604 - - -
Benefit payments, including refunds of employee contributions (1,270,991) (1,180,514) (1,171,567) (1,022,942) (962,861) (976,757) (836,477) (812,476)
Net change in total pension liability 409,810 62,155 1,096,154 1,036,102 330,493 416,150 865,184 683,037
Total pension liability - beginning 20,113,855 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 20,523,665 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 3,890,888 (358,834) 536,306 759,164 1,416,776 (159,092) 422,753 1,714,351
Plan fiduciary net position - beginning 17,444,790 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 21,335,678 17,444,790 17,803,624 17,267,318 16,508,154 15,091,378 15,250,470 14,827,717
Net pension liability (asset) - 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, 2022
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
2022 $ 385,361 $ 385,361 -$ $ 3,262,752 11.81%
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, 2022
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 2022 Fiscal Year 2021 Fiscal Year 2020 Fiscal Year 2019 Fiscal Year 2018
Local Plan Local Plan Local Plan Local Plan Local Plan
Total OPEB Liability
Service cost 23,000$ 37,413$ 35,863$ 47,628$ 49,307$
Interest on total OPEB liability 6,647 7,195 18,608 18,664 15,730
Economic/demographic gains - - (171,794) - -
Difference between expected and actual experience (9,083) - - - -
Changes in assumptions (110,123) 1,261 (56,902) 20,076 (17,718)
Benefit payments (21,635) (30,810) (35,806) (14,834) (10,820)
Net change in total OPEB liability (111,194) 15,059 (210,031) 71,534 36,499
Total OPEB liability - beginning 318,565 303,506 513,537 442,003 405,504
Total OPEB liability - ending 207,371 318,565 303,506 513,537 442,003
Plan Fiduciary Net Position
Contributions - employer 21,635 30,810 35,806 14,834 10,820
(21,635) (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 207,371$ 318,565$ 303,506$ 513,537$ 442,003$
Plan fiduciary net position as a percentage of total OPEB liability 0%0%0%0%0%
Covered - employee payroll 3,659,423$ 3,103,615$ 2,896,572$ 3,831,682$ 3,831,682$
Net OPEB liability as a percentage of covered payroll 5.67%10.26%10.48%13.40%11.54%
There are no assets accumulated in a trust to pay related benefits for the OPEB local plan.
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
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS – LOCAL PLAN
June 30, 2022
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
Employer’s
Proportionate
Share of the
Net OPEB
Liability
Covered
Payroll
Employer’s
Proportionate
Share of the
Net OPEB
Liability as a
Percentage of
Covered
Payroll
a Percentage
of the Total
OPEB
Liability
Virginia Retirement System - Group Life Insurance - General Employees
2022 0.01424%165,792$ 2,959,006$ 5.60%67.45%
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, 2022
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
2022 17,620$ 17,620$ -$ 3,262,752 0.54%
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, 2022
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 integral part of this statement.
71
(Continued)
72
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
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, 2020, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Largest 10 –Non-Hazardous Duty:
-Update mortality table to PUB2010 public sector mortality tables. For future mortality
improvements, replace load with a modified Mortality Scape MP-2020.
-Adjusted retirement rates to better fit experience for Plan 1; set separate rates based on
experience for Plan2/Hybrid; changed final retirement age.
-Adjusted withdrawal rates to better fit experience at each year and service through 9 years of
service.
-No change to disability rates.
-No change to salary scale.
-No change to line of duty rates.
-No change to discount rate.
All Others (Non 10 Largest) –Non-Hazardous Duty:
-Update mortality table to PUB2010 public sector mortality tables. For future mortality
improvements, replace load with a modified Mortality Scape MP-2020.
-Adjusted retirement rates to better fit experience for Plan 1; set separate rates based on
experience for Plan2/Hybrid; changed final retirement age.
-Adjusted withdrawal rates to better fit experience at each year and service through 9 years of
service.
-No change to disability rates.
-No changes to salary scale.
-No change to line of duty rates.
-No change to discount rate.
73
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Note 2.Changes of Assumptions (Continued)
Largest 10 –Hazardous Duty/Public Safety Employees:
-Update mortality table to PUB2010 public sector mortality tables. For future mortality
improvements, replace load with a modified Mortality Scape MP-2020.
-Adjusted retirement rates to better fit experience and changed final retirement age from 65 to
70.
-Decreased withdrawal rates.
-No change to disability rates.
-No change to salary scale.
-No change to line of duty rates.
-No change to discount rate.
All Others (Non 10 Largest) –Hazardous Duty/Public Safety Employees:
-Update mortality table to PUB2010 public sector mortality tables. For future mortality
improvements, replace load with a modified Mortality Scape MP-2020.
-Adjusted retirement rates to better fit experience and changed final retirement age from 65 to
70.
-Decreased withdrawal rates and changed from rates based on age and service to rates based
on service only to better fit experience and to be more consistent with Locals Largest 10
Hazardous Duty.
-No change to disability rates.
-No change to salary scale.
-No change to line of duty rates.
-No change to discount rate.
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
2022 2021 2020 2019 1 2018 2017 2016 2015 2014 2013
Governmental activities
Net investment in capital assets 8,516,026$ 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$
Restricted 905,697 406,739 74,711 180,691 206,673 132,387 209,649 235,246 190,161 91,676
Unrestricted 4,990,206 3,558,937 2,849,241 1,248,869 673,717 770,368 801,646 499,226 2,291,758 2,219,240
Total governmental activities net position 14,411,929$ 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$
Business-type activities
Net investment in capital assets 5,992,839$ 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$
Restricted 206,089 - - - - - - - - -
Unrestricted 3,035,766 2,905,885 2,364,985 1,606,517 1,823,180 1,504,611 1,035,813 117,415 410,722 394,976
Total business-type activities net position 9,234,694$ 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$
Primary government
Net investment in capital assets 14,508,865$ 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$
Restricted 1,111,786 406,739 74,711 180,691 206,673 132,387 209,649 235,246 190,161 91,676
Unrestricted 8,025,972 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
Total primary government net position 23,646,623$ 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$
1 Restated
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
75
TABLE 2
2022 2021 2 2020 2019 1 2018 2017 2016 2015 2014 2013
Expenses
Governmental activities
General government 1,838,254$ 2,679,302$ 1,391,690$ 1,049,355$ 962,685$ 992,699$ 1,001,560$ 927,954$ 962,341$ 942,315$
Public safety 2,701,937 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
Public works 1,793,344 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
Parks, recreation, and cultural 481,002 444,103 477,604 539,309 517,122 591,208 591,342 621,897 635,252 588,649
Community development 646,588 298,949 679,173 461,068 416,637 479,973 447,908 427,409 575,557 398,517
Interest on long-term debt 104,711 68,126 76,732 92,062 94,963 106,756 126,164 193,242 200,584 143,455
Total governmental activities 7,565,836 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
Business-type activities
Water and sewer 3,493,083 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
Stormwater management 320,668 399,797 364,142 337,655 253,188 419,957 ----
Total business-type activities expense 3,813,751 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
Total primary government expenses 11,379,587$ 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$
Program Revenues
Governmental activities
Charges for services
Public safety 91,340$ 73,441$ 125,573$ 127,096$ 93,599$ 118,454$ 63,735$ 72,356$ 88,364$ 89,115$
Public works 124,755 125,833 72,594 84,876 110,167 110,145 110,099 110,295 110,425 110,115
Other activities 272,832 177,063 221,880 489,012 506,160 540,600 559,171 570,459 554,666 495,133
Operating grants and contributions 2,262,924 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
Capital grants and contributions 395,574 624,924 309,973 72,006 84,184 408,362 317,643 384,074 114,966 53,749
Total governmental activities program revenues 3,147,425 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
Business-type activities
Charges for services
Water and sewer 4,222,118 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
Capital grants and contributions - 364,920 --------
Total business-type activities program revenues 4,222,118 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
Total primary government program revenues 7,369,543$ 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$
Net (expense) revenue
Governmental activities (4,418,411)$ (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)$
Business-type activities 408,367 73,220 (429,465) (486,719) (178,958) (109,631) 333,756 201,365 (171,926) (191,980)
Total primary government net expense (4,010,044)$ (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)$
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
76
TABLE 2
(Continued)
2022 2021 2 2020 2019 1 2018 2017 2016 2015 2014 2013
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 839,021$ 759,771$ 749,564$ 726,573$ 684,319$ 697,622$ 640,391$ 539,764$ 448,349$ 453,135$
Sales tax 1,331,193 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
Meals tax 1,668,087 1,417,813 1,289,457 1,078,908 966,053 953,721 955,488 912,713 900,591 912,226
Utilities tax 697,847 689,181 718,109 735,791 756,225 755,985 767,736 782,869 787,097 785,555
Pari-mutuel tax 1,023,595 643,785 --------
Business license tax 785,146 672,841 638,888 586,739 482,003 500,713 508,747 489,749 517,111 491,996
Bank stock tax 276,548 226,925 --------
Cigarette tax 145,951 145,993 --------
Vehicle license fee 178,600 187,918 --------
Other taxes 29,469 44,584 1,033,340 667,667 616,344 585,378 576,896 561,080 628,177 692,669
Intergovernmental revenue not program restricted 344,058 1,702,176 134,486 812,923 770,645 773,690 744,247 768,956 756,199 807,117
Restricted intergovernmental revenue -- 383,932 -------
Investment earnings not restricted 10,804 21,792 42,406 50,854 25,780 19,406 17,709 15,438 14,540 4,434
Restricted investment earnings --3 ----60,746 59,628 -
Gain on disposal of property ---16,580 ---7,444 6,516 -
Rebates 214,416 ---------
Other 16,598 94,426 37,669 69,900 57,781 66,305 106,706 27,002 21,752 41,418
Transfers (595,938) (409,740) (181,628) (171,912) (140,298) (219,978) ----
Total governmental activities 6,965,395 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
Business-type activities:
Investment earnings not restricted 1,501 4,355 8,271 9,009 7,627 2,172 989 -7 66
Restricted investment earnings 10,058 757 --525 94 329 1,353 5,301 762
Other 494,659 446,540 371,278 379,813 299,102 338,118 279,661 250,562 255,135 261,934
Transfers 595,938 409,740 181,628 171,912 140,298 219,978 ----
Total business-type activities 1,102,156 861,392 561,177 560,734 447,552 560,362 280,979 251,915 260,443 262,762
Total primary government 8,067,551$ 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$
Changes in Net Position
Governmental activities 2,546,984$ 2,306,245$ 1,381,163$ 748,825$ 351,981$ 304,649$ 572,501$ 438,710$ (28,033)$ 122,464$
Business-type activities 1,510,523 934,612 131,712 74,015 268,594 450,731 614,735 453,280 88,517 70,782
Total primary government 4,057,507$ 3,240,857$ 1,512,875$ 822,840$ 620,575$ 755,380$ 1,187,236$ 891,990$ 60,484$ 193,246$
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
2022 2021 2020 2019 1 2018 2017 2016 2015 2014 2013
General Fund
Nonspendable 31,825$ 599,269$ 655,751$ 323,947$ 103,927$ 89,382$ 62,048$ 59,817$ 60,358$ 19,101$
Restricted 294,816 406,739 74,711 180,691 206,673 132,387 209,649 235,246 190,161 274,908
Committed - - 30,000 30,000 30,000 - - - - -
Assigned 33,458 85,776 3,583 38,621 - - - - - -
Unassigned 5,605,680 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
Total general fund 5,965,779$4,556,918$4,433,019$3,519,146$3,222,506$2,799,962$2,879,221$2,656,499$3,170,176$3,131,811$
Grant Fund
Nonspendable 78,405$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted 4,957 - - - - - - - - -
Unassigned (78,405) - - - - - - - - -
4,957$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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
2022 2021 2020 2019 1 2018 2017 2016 2015 2014 2013
Revenues
Taxes 6,919,631$ 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$
Permits, privilege fees, and regulatory licenses 5,430 5,490 4,592 6,408 8,955 8,712 9,788 12,403 9,085 10,861
Fines and forfeitures 61,990 52,305 54,486 60,652 71,210 75,085 51,631 56,503 75,059 73,107
Revenue from use of money and property 128,192 139,588 159,655 169,995 148,433 136,695 141,889 197,241 198,625 105,998
Charges for services 162,636 69,391 115,380 382,806 377,369 418,042 452,903 438,558 407,900 387,049
Other 129,411 131,824 134,151 136,351 137,547 150,967 138,589 129,124 149,957 72,337
Intergovernmental 3,236,048 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
Total revenues 10,643,338 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
Expenditures
General government 1,405,913 2,474,141 835,575 711,058 695,683 650,824 710,412 668,082 645,071 632,136
Public safety 2,590,719 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
Public works 1,407,027 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
Parks, recreation, and cultural 507,955 500,690 457,443 515,693 533,892 570,065 594,550 617,934 620,636 547,604
Community development 701,681 571,140 871,782 458,435 485,624 889,397 687,006 604,476 468,678 386,592
Capital projects 1,062,053 1,450,148 533,151 948,721 37,880 463,945 437,389 551,936 140,478 542,235
Debt service:
Principal retirement 836,347 452,490 446,651 414,532 436,700 535,374 404,038 379,843 372,923 335,766
Interest and fiscal charges 88,852 62,640 64,540 77,568 83,210 91,789 115,486 182,584 186,377 174,699
Bond issuance costs - - - - - - 15,920 - - 36,638
Total expenditures 8,600,547 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
Excess (deficiency) of revenues over
expenditures 2,042,791 1,494,965 1,492,772 294,919 305,240 60,289 40,666 (521,121) 215,081 (67,017)
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 -
Transfers out (595,938) (409,740) (181,628) (171,912) (140,298) (219,978) - - - -
Total other financing sources (uses)(595,938) (402,142) (181,628) 1,721 117,304 (139,548) 182,056 7,444 6,516 534,067
Net change in fund balances 1,446,853$ 1,092,823$ 1,311,144$ 296,640$ 422,544$ (79,259)$ 222,722$ (513,677)$ 221,597$ 467,050$
Debt service as a percentage of
Note: Debt service as a percentage of noncapital expenditures excludes ROU asset addition.
1 Restated
TOWN OF VINTON, VIRGINIA
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
2022 578,435,500$ 79,841,683$10,268,160$ 21,680,500$25,640$ 690,251,483$0.07 690,251,483$ 100%
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
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.324,536$ 1 6.88 %185,976$ 1 6.17 %
Aramark 211,921 2 4.49 97,511 2 3.23
Berkshire 87,456 3 1.85 86,497 4 1.74
Blue Ridge Manor Apartments 77,669 4 1.65 52,395 5 1.40
Roanoke County Schools 48,909 5 1.04 20,866 8 0.69
Hometown Holdings 47,037 6 1.00 - --
RGM Properties 44,534 7 0.94 28,211 7 0.94
Colonial Downs 31,851 8 0.68 - --
Cardinal Glass 29,483 9 0.63 84,288 3 2.79
Christy Welch 23,666 10 0.50 - --
927,062$ 555,744$
Source: Town of Vinton Finance Department
1) FY 2022 % was based on total water and sewer operating revenues of $4,716,777
2) FY 2013 % was based on total water and sewer operating revenues of $3,016,081
Percentage
of Total Town
Revenue
Fiscal Year 2022
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2013
Percentage
of Total Town
Revenue
81
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2022 1,303,409$ 940,080$ 72.12%-$ 940,080$ 72.12%
2021 978,698 886,202 90.55 30,996 917,198 93.72
2020 948,341 875,175 92.28 26,942 902,117 95.13
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
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
82
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2022 12.84$ 22.16$ 6.42$ 11.08$
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
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.
TOWN OF VINTON, VIRGINIA
WATER AND SEWER RATES
Last Ten Fiscal Years
Note: Minimum charge for water and sewer residential and commercial service is based
Residential 1 Commercial 2
First 3,000 Gallons or Less First 1,500 Gallons or Less
83
TABLE 9
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Debt limit 69,025,148$ 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$
Total net debt applicable to limit 7,682,999 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
Legal debt margin 61,342,149$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 11.13%14.32%8.67%10.17%11.66%13.20%14.58%15.80%17.18%19.53%
Legal Debt Margin Calculation for Fiscal Year 2022
690,251,483$
Debt limit (10% of assessed value)69,025,148$
Less debt applicable to limit:
General obligation bonds 7,682,999
Legal debt margin 61,342,149$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Assessed value
84
TABLE 10
General General
Fiscal Obligation Financing Operating Obligations Obligation Revenue Obligations Financing
Year 1 1 1
2022 1,324,208$ -$ 584,067$ -$ 1,908,275$ 6,358,791$ 1,157,000$ 358,141$ -$ 7,873,932$
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
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
2022 7,682,999$ 690,251,483$ 1.15%8,021 958$ 57,434$ 1.67%
2021 8,849,714 618,036,067 1.43 8,104 1,092 53,489 2.04
2020 5,095,489 586,324,662 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 8,381,512 528,171,940 1.59 8,151 1,028 43,418 2.37
2014 8,959,814 521,497,077 1.72 8,151 1,099 42,288 2.60
2013 9,998,297 522,236,795 1.93 8,092 1,236 40,688 3.04
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
2022 4,728,336$ 2,502,644$ 2,225,692$ 1,277,109$ 140,991$ 1.57
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 2.15
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
(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)
2022 8,021 7,004,787,000$ 57,434$ 13,819 899 3.00%
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
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
Berkshire 259 1 Private 164 3 Private
Kroger 189 2 Private 189 2 Private
Precision Fabrics Group, Inc.189 3 Private 196 1 Private
Roanoke County Schools (Vinton)133 4 Local Govt.127 4 Local Govt.
Rosie's Gaming Emporium 106 5 Private - --
Aramark Uniform Services 97 6 Private 87 6 Private
McDonalds 85 7 Private 88 5 Private
Town of Vinton 75 8 Local Govt.83 7 Local Govt.
Magnets USA 70 9 Private ---
Famous Anthony's - -- 48 9 Private
Super Dollar - -- 31 10 Private
Penalty Box Partners (Lancerlot)69 10 Private 55 8 Private
1,272 15.86%1,068 13.20%
Source: Employer Business Application or HR Contact
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Fiscal Year 2022 Fiscal Year 2013
88
TABLE 14
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
General government
Management services 5 4 4 4 4 4 4 4 4 4
Finance 5 5 5 5 5 5 5 6 6 6
Planning 4 3 3 3 2 3 3 3 3 3
Police
Officers 26 22 22 23 23 24 22 22 24 24
Civilians 2 2 2 2 2 2 2 2 2 2
Fire
Firefighters and officers - --11 11 12 10 11 10 9
Other public works 22 21 26 30 34 33 29 31 32 32
Parks, recreation, and cultural 3 3 3 3 3 3 3 2 3 3
Total 67 60 65 81 84 86 78 81 84 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
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
General government
Fleet equipment 139 133 133 133 133 133 133 133 133 117
Pieces of equipment maintained 139 133 133 133 133 133 133 133 133 117
Public safety:
Police
Arrests 372 398 781 947 1,034 594 722 507 578 582
Parking violations 23 24 45 30 40 58 133 52 64 48
Traffic violations 1,447 1,395 1928 1,735 2,449 2,021 1,187 1,143 1,603 1,408
EMS
Emergency responses N/A N/A N/A 2,248 2,607 2,637 2,656 2,615 2,735 2,654
Fire
Emergency responses N/A N/A N/A 305 830 501 774 278 623 306
Public works
Refuse collection
Refuse collected (tons per day)13.67 13.20 12.88 12.39 11.80 12.21 11.92 12.55 12.78 12.92
Recyclables collected (tons per day)0.33 0.32 0.3 0.35 0.45 1 0.54 0.65 0.70 0.68
Other public works
Street resurfacing (miles)3.81 3.20 3.33 2.71 2.50 2 2.03 - 1.30 2.17
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)5,000 7,500 Cancelled 20,000 25,000 25,000 25,000 25,000 25,000 25,000
4th of July 6,000 6,000 Cancelled 4,000 5,000 5,000 5,000 5,000 5,000 4,000
(Co-Sponsor Chamber of Commerce)5,500 3,500 2,000 3,500 6,000 6,000 9,000 9,000 6,000 6,000
Water
Number of customer accounts 5,137 5,187 5,155 5,136 5,115 5,120 5,093 5,074 5,085 5,071
Miles of distribution lines 61 61 61 61 61 61 61 61 61 61
Volume pumped (million gallons per day average)1.06 1.07 1.05 2 1 1 1.27 1.23 1.14 1.21
Sewer
Number of customer accounts 4,753 4,764 4,728 4,710 4,691 4,686 4,658 4,639 4,642 4,636
Miles of collection lines 60 60 60 60 60 60 60 60 60 60
Waste/Water treated (million gallons per day)1.52 1.81 1.41 1.02 1.32 1.32 1.40 1.19 0.92 0.96
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
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
Public safety
Law enforcement vehicles 27 27 26 24 27 27 25 26 25 25
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 513 513 505 505 505 505 503 502 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance)398/4236 186/1850 428/6330 428/6283 356/5822 285/4370 252/4166 240/3990 223/3,965 253/3775
Charles R. Hill Center (Rentals)312 205 292 298 303 316 283 291 289 437
Vinton War Memorial 297 196 258 240 250 276 273 235 282 301
Parks/athletic fields
Greenway (3/4 Mile) Cinder Surface 25,000 30,000 30,000 30,000 25,000 25,000 25,000 25,000 25,000 25,000
War Memorial Playground 4,000 4,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Vinton Municipal Pool Closed Closed Closed Closed Closed Closed 7,977 7,977 8,458 10,562
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 53,800$
Total Department of Housing and Urban Development 53,800
Department of Justice:
Direct Payments:
Body Worn Camera Grant 16.835 21-A8667BC21 48,649
Local Law Enforcement Block Grant FFY 18 16.738 21-U10099LO18 2,767
COVI-19 Coronavirus Emergency Supplemental Funding Grant 16.034 10602 874
Bulletproof Vest Partnership Program 16.607 N/A 2,855
Total Department of Justice 55,145
Department of Transportation:
Pass Through Payments:
Department of Motor Vehicles:
Highway Safety Cluster
National Priority Safety Programs FY20 20.616 N/A 11,229
Highway Planning and Construction Cluster
VDOT TS Glade Creek Greenway Phase 2B 20.205 UPC 117995 33,745
Walnut Avenue Bike/Pedestrian - 5th St to Town West 20.205 UPC 111649 35,880
Walnut Avenue Bike/Pedestrian - Lee Avenue to 1st St 20.205 UPC 113565 57,231
Glade Creek Greenway Phase 2B 20.205 UPC 109611 13,101
Total Department of Transportation 151,186
Department of the Treasury:
Direct Payments:
COVID-19 American Rescue Plan Act CSLFRF-NEU 21.027 N/A 434,960
COVID-19 American Rescue Plan Act CSLFRF-Utility 21.027 N/A 46,386
Pass Through Payments:
Virginia Department of Accounts:
County of Roanoke:
COVID-19 Coronavirus Relief Fund 21.019 N/A 2,758
Total Department of the Treasury 484,104
Environmental Protection Agency:
Direct Payments:
EPA Brownfield Site Assessment 66.818 FAIN # 96368301 104,788
Total Environmental Protection Agency 104,788
Total Expenditures of Federal Awards 849,023$
NOTE 1 - BASIS OF PRESENTATION:
NOTE 2 - DE MINIMIS INDIRECT COST RATE:
NOTE 3 - OUTSTANDING LOAN BALANCES:
At June 30, 2022, the Town had no outstanding loan balances requiring continuing disclosure.
TOWN OF VINTON, VIRGINIA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
The entity did not elect to use the 10% de minimis indirect cost rate.
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.
93
94
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REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
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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; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the Specifications for Audits of Counties,
Cities, and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the
financial statements of the governmental activities, the business-type activities, and each major fund of
the Town of Vinton, Virginia (the “Town”), as of and for the year ended June 30, 2022, and the related
notes to the financial statements, which collectively comprise the Town’s basic financial statements and
have issued our report thereon dated October 30, 2023.
Report on 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. We identified certain deficiencies in internal control, described
in the accompanying schedule of findings and questioned costs as items 2022-001 and 2022-002,
that we consider to be material weaknesses.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the Town’s
responses to the findings identified in our audit and described in the accompanying schedule of findings
and questioned costs. The Town’s responses were not subjected to the other auditing procedures applied in
the audit of the financial statements and, accordingly, we express no opinion on the responses.
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
October 30, 2023
96
Your Success is Our Focus
3906 Electric Road • Roanoke, Virginia 24018 • 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
Opinion 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, 2022. 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.
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, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the Town and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements related to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal documentation of the Town’s compliance
with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the
Town’s federal programs.
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Report on Compliance for Each Major Federal Program (Continued)
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the Town’s compliance based on our audit. Reasonable assurance is a high level of
assurance,but is not absolute assurance and,therefore,is not a guarantee that an audit conducted in
accordance with generally accepted auditing standards, Government Auditing Standards,and the
Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the Town’s compliance the requirements of each
major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risk of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the Town’s compliance with the compliance
requirements referred to above and performing such other procedures, as we considered
necessary in the circumstances.
Obtain an understanding of the Town’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the Town’s internal control over
compliance Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit
Other Matters
The results of our auditing procedures disclosed one 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 items 2022-003.Our opinion on each major federal
program is not modified with respect to these matters.
Government Auditing Standards requires the auditor to perform limited procedures on the Town’s
responses to the noncompliance findings identified in our audit is described in the accompanying
schedule of findings and questioned costs. The Town’s responses were not subjected to the other
auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
responses.
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Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or 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
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify
all deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, we did identify certain deficiencies in internal
control over compliance that we consider to be a significant deficiency. We consider the deficiency in
internal control over compliance described in the accompanying schedule of findings and questioned
costs as Item 2022-04 to be a significant deficiency.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
October 30, 2023
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TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2022
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, VIRGINIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2022
A.SUMMARY OF AUDITOR’S RESULTS
1.The auditor’s report expresses an unmodified opinion on the financial statements.
2.Two material weaknesses and no significant deficiencies relating to the audit of the financial
statements were 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.One significant deficiency relating to the audit of the major federal award programs was 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 program.
7.The program tested as major was:
Name of Program
Assistance
Listing
Number
Coronavirus State and Local Fiscal Recovery Fund 21.027
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
2022-001:Audit Adjustments (Material Weakness)
Condition:
During the audit, we noted that several year-end audit adjustments were required to ensure that
the financials were prepared in accordance with accounting principles general accepted in the
United States of America. The adjustments were related to debt, accounts receivable, and capital
assets.
Criteria:
Audit adjustments were required to correct balances in order for the financial statements to be
presented in accordance with accounting principles generally accepted in the United States of
America.
(Continued)
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TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2022
B.FINDINGS –FINANCIAL STATEMENT AUDIT (Continued)
2022-001:Audit Adjustments (Material Weakness)(Continued)
Cause:
With regard to governmental activity long-term debt, it appears that the roll forward was not
reviewed before year-end entries were made, resulting in additional adjustment to long-term debt
balances. With regard to business-type activities long-term debt, principal payments were
recorded as an expense rather than a reduction to long-term debt, resulting in additional
adjustments to these accounts. With regard to governmental activities and business-type
activities accrued interest, amortization schedules were not reviewed before entries were made,
resulting in additional adjustments to these accounts. With regard to governmental activities and
business-type activities capital assets, roll forwards and depreciation schedules were not
reviewed before entries were made, resulting in additional adjustments. With regard to
governmental activities receivables and deferred revenue was not correctly captured and
recorded at yearend.
Effect:
There is an increased risk of financial statements misstatement.
Recommendation:
We recommend establishing procedures in which qualified supervisors are reviewing year-end
work papers that feed into the final general ledger and focusing on the accuracy of year-end
balances.
View of Responsible Officials and Planned Corrective Action:
We agree with the findings and we’re working to establish a year-end review procedure.
(Continued)
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TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2022
B.FINDINGS –FINANCIAL STATEMENT AUDIT (Continued)
2022-002: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.
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:
We agree with the findings and we’re working towards reducing the conflicting duties.
(Continued)
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TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2022
C.FINDINGS AND QUESTIONED COSTS –MAJOR FEDERAL AWARD PROGRAM AUDIT
2022-003:Coronavirus State and Local Fiscal Recovery Fund –AL# 21.027, Late Filling of Data
Collection Form
Condition:
The Town did not submit the data collection form for the year ended June 30, 2022 timely.
Criteria:
For June 30, 2022 year-end audits, under the requirements in the Uniform Guidance and the
Office of Management and Budget (OMB), all entities are required to submit the annual data
collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the
issuance of the entity’s annual audit or twelve months after the entity’s fiscal year end (June 30th
for the Town of Vinton plus a three-month extension).
Cause:
Management did not complete and certify their portion of the form before the deadline. Form
cannot be completed before audit is issued.
Effect:
The entity’s form was submitted to the Federal Audit Clearinghouse late, delaying completion of
all annual audit requirements for the Town.
Recommendation:
Management should take steps to ensure that the form is filed timely.
Views of Responsible Officials and Planned Corrective Action:
We agree with the finding and will ensure the reports are filed in a timely manner.
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TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2022
C.FINDINGS AND QUESTIONED COSTS –MAJOR FEDERAL AWARD PROGRAM AUDIT
(Continued)
2022-004:Schedule of Expenditures and Federal Awards (Significant Deficiency)
Condition:
The Schedule of Expenditures and Federal Awards (SEFA) was prepared without supervisor
review,resulting in several auditor corrections.
Criteria:
Segregation of duties and review procedures should be applied to federal award workpapers.
Cause:
Town has not established written internal control policies with regard to federal awards.
Effect:
Risk that the Town’s information in the SEFA is not accurate, complete, or appropriately
presented in accordance with Uniform Guidance.
Recommendation:
Management should develop and implement written internal control policies.
Views of Responsible Officials and Planned Corrective Action:
We agree with the finding and we’re working towards developing a written policy.
D.FINDING –COMMONWEALTH OF VIRGINIA
None.
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TOWN OF VINTON, VIRGINIA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2022
A.FINDING –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.
Current Status:Condition still present for accounts payable functions, accounts receivable, cash
disbursements, and information technology. See item 2022-002 in the schedule of findings and
questioned costs.
B.FINDING –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.
Current Status:Condition cleared.Upon notification of a recommendation, staff immediately
drafted a Federal Grant Policy, which was adopted by Town Council at the meeting on
September 21, 2021.See item 2022-005 in schedule of findings and questioned costs.
C.FINDING –COMMONWEALTH OF VIRGINIA
None noted.