HomeMy WebLinkAboutFY 2023 - 2024 - Annual Comprehensive Financial Reports (ACFRs)VINTON Town ofTown of Town of
ANNUALFINANCIALREPORT
F O R F I S C A L Y E A R E N D
J U N E 3 0 , 2 0 2 4
V I R I G I N I A
Town of Vinton, Virginia
Contents
Introductory Section
Directory of Principal Officials ...............................................................................vi
Organizational Chart .............................................................................................vii
Financial Section
Independent Auditor’s Report ................................................................................1
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position .......................................................................................5
Exhibit 2 Statement of Activities ............................................................................................6
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Funds ....................................................................7
Exhibit 4 Reconciliation of the Balance Sheet of the Governmental to the
Statement of Net Position ..........................................................................................................8
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balances –Governmental Funds .......................................................................................9
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities .............................10
Exhibit 7 Statement of Net Position –Proprietary Funds ....................................................11
Exhibit 8 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Funds..............................................................................................12
Exhibit 9 Statement of Cash Flows –Proprietary Funds ......................................................13
Notes to Financial Statements ........................................................................................14
Compliance Section
Schedule of Expenditures of Federal Awards ........................................................46
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 .......47
Independent Auditor’s Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance .................49
Summary of Compliance Matters .........................................................................53
Schedule of Findings and Questioned Costs .........................................................54
Summary Schedule of Prior Audit Findings ...........................................................62
Introductory Section
vi
Town of Vinton, Virginia
Directory of Principal Officials
June 30, 2024
Town Council
Bradley E. Grose, Mayor
Michael W. Stovall, Vice Mayor
Keith N. Liles
Laurie J. Mullins
Sabrina M. McCarty
Appointed Officials
Richard Peters ...............................................................................................Town Manager
Andrew Keen ..............................................................................................Finance Director
Fabricio Drumond ..........................................................................................Chief of Police
vii
*Town Attorney, Town Manager, Town Clerk, Treasurer and Police Chief are positions within the department appointed by Town Council.
Organizational Chart
Citizens of Vinton
Town Council
Town Manager*/
Economic Development
Administrative Manager/
Town Clerk*
Deputy Town
Manager
Public Works
Department
Property &
Grounds
Maintenance
Street
Maintenance
Stormwater
Maintenance
Refuse &
Recycling
Treasurer* &
Finance
Department Planning & Zoning
Department
Economic Development
Specialist
Human Resources /
Risk Management
Police*
Department
OperationsAdministration
Cultural Placemaking and
Events Director
Public FaciltiesCommunity
Events
Capital Projects
Manager
Town Attorney*
Financial Section
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, 2024, 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, 2024, and the respective changes in financial position,and,where
applicable,cash flows thereof 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.
Emphasis of Matter –Transfer of Remaining Water and Sewer Balances to the General
Fund
As discussed in Note 19 to the financial statements, the Town transferred its water and sewer system to
Western Virginia Water Authority (“WVWA”) on July 1, 2022. The Town wrote off balances and moved
the remaining balances of the Water and Sewer Fund to General Fund in the current fiscal year. Our
opinion is not modified with respect to that matter.
Emphasis of Matter –Restatement of Beginning Net Position
As discussed in Note 20 to the financial statements, the Town restated beginning net position to correct
an error in previously issued financial statements related to capital assets and Highway Construction
funds. Our opinion is not modified with respect to that matter.
2
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. 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
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and other required supplementary information be presented to supplement the
basic financial statements. Such information is the responsibility of management, and, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context.
Management has omitted the management's discussion and analysis, required budget to actual
schedules, and required pension and other postemployment benefit schedules that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Our opinion on the basic financial statements is not affected by this missing
information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements.The accompanying 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), is
presented for purposes of additional analysis and is 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 section 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.
4
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 6, 2026,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
July 6, 2026
Basic Financial
Statements
Exhibit 1
Governmental Business-Type
Cash and cash equivalents (Note 2)10,601,638$ -$ 10,601,638$
Receivables, net (Note 3)762,598 - 762,598
Internal balances (Note 17) 110,944 (110,944) -
Due from other governmental units within one year (Note 4)1,077,429 - 1,077,429
Due from WVWA within one year (Notes 19 and 4)1,442,414 - 1,442,414
Inventories - 20,704 20,704
495,239 - 495,239
Prepaids 103,639 3,570 107,209
Loans receivable 7,255 - 7,255
26,585 - 26,585
Net pension asset (Notes 8 and 11)86,086 4,713 90,799
Due from WVWA in more than one year (Notes 19 and 4)5,280,724 - 5,280,724
Capital assets: (Note 5)
Nondepreciable 6,517,772 42,103 6,559,875
Depreciable, net 13,571,955 288,673 13,860,628
Total assets 40,084,278 248,819 40,333,097
Deferred charge on refunding 10,664 - 10,664
433,125 23,710 456,835
Deferred outflows related to other postemployment
benefits (Notes 9, 10, and 11)73,959 4,772 78,731
Total deferred outflows of resources 517,748 28,482 546,230
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Total deferred inflows of resources 627,051 36,588 663,639
NET POSITION
29,761,237$ 126,173$ 29,887,410$
Town of Vinton, Virginia
Statement of Net Position
June 30, 2024
Deferred outflows related to pensions (Notes 8 and 11)
The Notes to Financial Statements are an integral part of this statement.5
Exhibit 2
Charges for Governmental
Governmental activities
Total 10,263,526$563,898$ 2,372,617$ 1,950,773$ (4,621,664) (754,574) (5,376,238)
General revenues
Property taxes (Note 14)1,497,872 - 1,497,872
Sales tax 1,492,841 - 1,492,841
Meals tax 1,990,833 - 1,990,833
Utilities tax 686,214 - 686,214
Pari-mutuel tax 1,503,741 - 1,503,741
Business license tax 822,633 - 822,633
Bank stock tax 353,413 - 353,413
Cigarette tax 178,230 - 178,230
Vehicle license fee 213,212 - 213,212
Other local taxes 25,290 - 25,290
Intergovernmental revenue not program specific 370,652 - 370,652
Unrestricted investment earnings 446,855 25,952 472,807
Rebates 65,163 - 65,163
Reimbursement from WVWA 1,500,000 - 1,500,000
Other 63,864 (4,244,901) (4,181,037)
1,983,322 (1,983,322) -
Total general revenues 13,194,135 (6,202,271) 6,991,864
Change in net position 8,572,471 (6,956,845) 1,615,626
21,873,741 (7,083,018) 28,956,759
(684,975) - (684,975)
21,188,766 7,083,018 28,271,784
NET POSITION AT JUNE 30 29,761,237$ 126,173$ 29,887,410$
General government administration
Town of Vinton, Virginia
Statement of Activities
Year Ended June 30, 2024
Program Revenues Changes in Net Position
The Notes to Financial Statements are an integral part of this statement.6
Exhibit 3
ASSETS
Cash and cash equivalents 4,631,963$ 5,969,675$ -$ 10,601,638$
Receivables, net 717,321 - 45,277 762,598
Due from other governmental units (Note 4)421,636 - 655,793 1,077,429
Due from other funds 554,349 - - 554,349
Land held for resale 495,239 - - 495,239
Prepaids 103,639 - - 103,639
Loans receivable 7,255 - - 7,255
Cash and cash equivalents, restricted 26,585 - - 26,585
Total assets
LIABILITIES
Accounts payable and accrued liabilities 842,907$ 193,525$ 224,597$ 1,261,029$
Accrued payroll and related liabilities 155,629 - 41 155,670
Due to other funds - - 443,405 443,405
Property taxes collected in advance 916,849 - - 916,849
16,715 - - 16,715
Total liabilities 1,932,100 193,525 668,043 2,793,668
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 580,854 - 204,163 785,017
Total deferred inflows of resources 580,854 - 204,163 785,017
FUND BALANCES (Note 18)
Nonspendable 693,881 - - 693,881
of resources, and fund balances 6,957,987$ 5,969,675$ 701,070$ 13,628,732$
Unearned revenue
Town of Vinton, Virginia
Balance Sheet
Governmental Funds
The Notes to Financial Statements are an integral part of this statement.7
Exhibit 4
Total Fund Balances – Governmental Fund 10,050,047$
are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Governmental capital assets 35,082,637
Less accumulated depreciation (14,992,910)
20,089,727
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.785,017
Long-term asset and liability related to the transfer
of water and sewer operations to the Western Virginia Water Authority (WVWA)
Debt payments due to WVWA (5,223,138)
Reimbursement for debt payments from WVWA 5,223,138
Due from WVWA purchase of operations 1,500,000
1,500,000
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 433,125
Other postemployment benefits 73,959
Deferred inflows related to:
Pensions (395,537)
Other postemployment benefits (231,514)
Net pension asset 86,086
Net other postemployment benefits liability (380,525)
(414,406)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
Unamortized deferred charges on refunding 10,664
General obligation bonds (614,898)
(972,055)
Accrued interest payable (5,277)
Compensated absences (667,582)
(2,249,148)
Total Net Position – Governmental Activities 29,761,237$
Operating lease obligations
Town of Vinton, Virginia
Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net
Position
June 30, 2024
Amounts reported for governmental activities in the statement of net position
The Notes to Financial Statements are an integral part of this statement.8
Exhibit 5
Capital Total
General Projects Grant Governmental
Fund Fund Fund Funds
REVENUES
General property taxes 1,482,308$ -$ -$ 1,482,308$
Other local taxes 7,266,323 - - 7,266,323
Permits, privilege fees, and regulatory licenses 7,544 - - 7,544
Fines and forfeitures 79,810 - - 79,810
Revenues from use of money and property 243,036 179,657 - 422,693
Charges for services 240,270 - - 240,270
Other 291,110 - - 291,110
Recovered costs 85,807 - - 85,807
Non-categorical aid 456,442 - 176,291 632,733
Categorical aid 1,986,000 - 1,894,700 3,880,700
Total revenues 12,138,650 179,657 2,070,991 14,389,298
Current
General government administration 805,610 - 265,664 1,071,274
Public safety 2,914,274 - 231,403 3,145,677
Public works 4,283,873 - - 4,283,873
Parks, recreation, and cultural 680,531 - - 680,531
Community development 1,485,757 - 2,991,371 4,477,128
Capital projects 995,002 1,806,910 601,280 3,403,192
Debt service
Principal retirement 813,202 - - 813,202
Interest and fiscal charges 97,303 - - 97,303
Total expenditures 12,075,552 1,806,910 4,089,718 17,972,180
Excess (deficit) of revenues over (under) expenditures 63,098 (1,627,253) (2,018,727) (3,582,882)
Issuance of leases 900,431 - - 900,431
Transfers in 1,863,810 2,775,000 1,801,555 6,440,365
Transfers out (4,985,708) - - (4,985,708)
Total other financing sources (uses)(2,221,467) 2,775,000 1,801,555 2,355,088
Net change in fund balance (2,158,369) 1,147,747 (217,172) (1,227,794)
6,603,402 4,628,403 46,036 11,277,841
FUND BALANCE AT JUNE 30 4,445,033$ 5,776,150$ (171,136)$ 10,050,047$
Town of Vinton, Virginia
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
The Notes to Financial Statements are an integral part of this statement.9
Exhibit 6
Net change in fund balance governmental fund (1,227,794)$
7,166,475
528,665
Employer pension contributions 433,125
(103,330)
(68,934)
Change in net position of governmental activities 8,572,471$
Town of Vinton, Virginia
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
Year Ended June 30, 2024
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
different because:
of the Governmental Funds to the Statement of 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.
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.
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 capital outlay
$4,977,881 exceeded depreciation $1,560,461,the net value of assets transferred
in from the Water and Sewer Fund $2,848,624 and the value of the right-of-use
lease asset addition in the current period $900,431.
as expenditures.However,in the statement of activities the cost of these benefits
earned,net of employee contributions,is reported as other postemployment
benefit expense.
reported as transfers in the government-wide statement of activities.
The Notes to Financial Statements are an integral part of this statement.10
Exhibit 7
Water and Sewer
Stormwater
Total Enterprise
Current assets
Inventories -$ 20,704$ 20,704$
Prepaids - 3,570 3,570
Total current assets - 24,274 24,274
Noncurrent assets
Net pension asset (Notes 8 and 11)- 4,713 4,713
Capital assets
Nondepreciable - 42,103 42,103
Depreciable, net - 288,673 288,673
Total noncurrent assets - 335,489 335,489
Total assets - 359,763 359,763
Deferred outflows related to pensions (Notes 8 and 11)- 23,710 23,710
Deferred outflows related to other postemployment
benefits (Notes 9, 10, and 11)- 4,772 4,772
Total deferred outflows of resources - 28,482 28,482
Current liabilities
Accounts payable and accrued liabilities - 51,505 51,505
Accrued payroll and related liabilities - 6,853 6,853
Due to other funds - 110,944 110,944
Net other postemployment benefit
liability due within one year (Note 9, 10, and 11)- 13,066 13,066
Current portion of noncurrent liabilities (Note 6)- 8,224 8,224
Total current liabilities - 190,592 190,592
Noncurrent liabilities
Net other postemployment benefit
liability (Notes 9, 10, and 11)- 11,484 11,484
Due in more than one year (Note 6)- 23,408 23,408
Total noncurrent liabilities - 34,892 34,892
Total liabilities - 225,484 225,484
- 21,652 21,652
Deferred inflows related to other postemployment
benefits (Notes 9, 10, and 11)- 14,936 14,936
Total deferred inflows of resources - 36,588 36,588
Net investment in capital assets - 330,776 330,776
Restricted for:
Pensions - 4,713 4,713
Unrestricted - (209,316) (209,316)
Total net position
Deferred inflows related to pensions (Notes 8 and 11)
Town of Vinton, Virginia
Statement of Net Position
Proprietary Funds
The Notes to Financial Statements are an integral part of this statement.11
Exhibit 8
Water and Sewer Total Enterprise
OPERATING REVENUES
Other revenue -$ 5,196$ 5,196$
Total operating revenues - 5,196 5,196
Salaries - 231,132 231,132
Fringe benefits - 43,487 43,487
Contractual services - 15,887 15,887
Maintenance - 46,243 46,243
Rent, utilities, and insurance - 3,333 3,333
Materials and supplies - 75,277 75,277
Equipment repairs and rentals 38,832 - 38,832
Other - 59,351 59,351
Depreciation 93,549 52,370 145,919
Total operating expenses 132,381 527,080 659,461
Operating income (loss)(132,381) (521,884) (654,265)
Interest income 14,235 11,717 25,952
Interest expense (95,113) - (95,113)
Loss on sale and disposal of assets - (528,665) (528,665)
Reimbursement from WVWA 801,113 - 801,113
Discontinuation of operations (Note 19) (5,051,210) - (5,051,210)
Net non-operating revenue (expense)(4,330,975) (516,948) (4,847,923)
Loss before transfers (4,463,356) (1,038,832) (5,502,188)
(1,863,810) 409,153 (1,454,657)
Change in net position (6,327,166) (629,679) (6,956,845)
6,327,166 755,852 7,083,018
NET POSITION AT JUNE 30 -$ 126,173$ 126,173$
Town of Vinton, Virginia
Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
The Notes to Financial Statements are an integral part of this statement.12
Exhibit 9
Water and Sewer Total Enterprise
OPERATING ACTIVITIES
Receipts from other sources -$ 5,196$ 5,196$
Payments to suppliers (38,832) (182,702) (221,534)
Payments to employees - (228,440) (228,440.00)
Net cash used in operating activities (38,832) (405,946) (444,778)
NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - 409,153 409,153
Net cash provided by noncapital - 409,153 409,153
financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets - (74,164) (74,164)
Principal paid on long-term liabilities (706,000) - (706,000)
Transfers of long-term assets and liabilities to governmental activities (879,862) - (879,862)
Reimbursement of debt payments from WVWA 801,113 - 801,113
Interest received (paid)(95,113) 11,717 (83,396)
Net cash used in capital and related
financing activities (879,862) (62,447) (942,309)
INVESTING ACTIVITIES
Interest received on investments 14,235 - 14,235
Net decrease in cash and cash equivalents (904,459) (59,240) (963,699)
CASH AND CASH EQUIVALENTS
Beginning at July 1 904,459 59,240 963,699
Ending at June 30 -$ -$ -$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)(132,381)$ (521,884)$ (654,265)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 93,549 52,370 145,919
Pension benefit net of employer contributions - (39,174) (39,174)
Other postemployment benefit (expense) net of
employer contributions - (11,149) (11,149)
Change in certain assets and liabilities:
(Increase) decrease in:
Inventories - (135) (135)
Prepaids - (3,570) (3,570)
Increase (decrease) in:
Accounts payable and accrued liabilities - 21,094 21,094
Accrued payroll and related liabilities - 30 30
Due to other funds - 110,944 110,944
Compensated absences - (14,472) (14,472)
Net cash provided by (used in) operating activities (38,832)$ (405,946)$ (444,778)$ -$
NON-CASH CAPITAL AND RELATED FINANCING
Discontinuation of operations
Capital assets transferred to governmental activities
Town of Vinton, Virginia
Statement of Cash Flows
Proprietary Funds
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.13
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
14
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 stormwater management 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 $232,641 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 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 $150,000 in the current
year. Separate financial statements are not available.
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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
15
B.Individual Component Unit Disclosures
As required by generally accepted accounting principles (GAAP), 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.
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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
16
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 stormwater
management and water and sewer services.
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 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 approves additional general fund appropriations
during the year 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.
5)Formal budgetary integration is employed as a management control device during the year for the general and
enterprise funds.
6)Budgets are adopted on a basis consistent with GAAP.
7)Appropriations lapse on June 30.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
17
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.
K.Capital Assets
Capital assets, which include property, plant, and equipment, and infrastructure, and right-of-use assets derived from
leases 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.
Leased assets are amortized over the shorter of the lease term or useful life of the underlying asset. In leases where a
purchase option is reasonably certain of being exercised,the asset is amortized over the useful life, unless the underlying
asset is non-depreciable, in which the leased asset is not amortized.
Property, plant,and equipment and infrastructure are depreciated using the straight-line method over the following
estimated useful lives:
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
18
L.Leases
The Town recognizes right-of-use assets and related liabilities for long-term leases exceeding 12 months.
At the commencement of a lease, the Town initially measures the lease liability at the present value of payments expected
to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments
made. The lease asset is measured initially as the amount of the lease liability, adjusted for lease payments made at or
before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a
straight-line basis over the shorter of the lease term or the useful life of the underlying assets, but it the lease contains a
purchase option the Town is reasonably certain to exercise, the lease asset is amortized over the useful life of the
underlying 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.
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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
19
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.
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 assets and liabilities, and reported
revenues and expenses. Actual results could differ from those estimates.
S. Change in Accounting Principle
For the year ended June 30, 2024, the Town implemented GASB Statement No. 100, Accounting Changes and Error
Corrections. GASB 100 provides guidance on the accounting and financial reporting for accounting changes and error
corrections and establishes new disclosure requirements related to such changes. The implementation of this statement
resulted in changes to the presentation and disclosure of beginning balances. Additional information regarding the
restatement of beginning balances is documented in Note 20.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
20
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 years, 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.
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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
21
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.
As of June 30, the Town’s deposit and investment balances were as follows:
Total deposits and investments $10,628,223
Exhibit 1 total deposits and investments is composed as follows:
Total deposits and investments $10,628,223
Restricted cash and cash equivalents consist of $25,209 of evidence found and $1,376 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, 2024
22
Note 3 –Receivables
Receivables consist of the following:
Governmental
Activities
Receivables
Tax $650,392
Accounts 332,173
Gross receivables 982,565
Less allowance for uncollectibles (219,967)
Receivables, net $762,598
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
$785,017 $933,564
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
23
Note 4 –Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
General Fund Grant Fund Activities
Commonwealth of Virginia
Communication taxes $34,860 $-$34,860
Rolling stock tax 9,853 -9,853
TDO/ECO 1,287 -1,287
Miscellaneous non-categorical aid -6,895 6,895
46,000 6,895 52,895
Federal Government
Other Grants -648,898 648,898
-648,898 648,898
County of Roanoke
Local sales taxes 374,617 -374,617
Other 1,019 -1,019
375,636 -375,636
Western Virginia Water Authority (See Note 19)6,723,138 -6,723,138
Note 5 –Capital Assets
Capital asset activity for the year was as follows:
Governmental Activities
Balance
(Restated) Increases Decreases Transfers
Ending
Balance
Capital assets, not being depreciated
Land *$1,600,421 $252,111 $-$80,752 $1,933,284
Construction in progress 2,715,709 4,255,195 (5,426,162)3,039,696 4,584,438
Total capital assets, not being
depreciated 4,316,130 4,507,306 (5,426,162)3,120,448 6,517,722
depreciated 19,879,524 6,761,065 (424,049)2,348,374 28,564,914
depreciation/amortization
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
24
depreciation/amortization (11,801,067)(1,560,461)460,152 (2,091,533)(14,992,909)
$12,394,587 $9,707,910 $(5,390,059)$3,377,289 $20,089,727
Business-type Activities Balance Increases Decreases Transfers Balance
Capital assets, not being depreciated
Land $80,752 $-$-$(80,752)$-
Construction in progress 2,681,797 400,002 -(3,039,696)42,103
Total capital assets, not being
depreciated 2,762,549 400,002 -(3,120,448)42,103
depreciated 2,822,995 32,061 -(2,348,374)506,682
assets, net $3,421,921 $286,144 $-$(3,377,289)$330,776
*Beginning balances for land, buildings, infrastructure, and accumulated depreciation,if applicable, have been
restated to correct a prior period error identified in the current year. The error related to capital assets that were
transferred to the Roanoke County Economic Development Authority in fiscal year 2022 but were not removed from
the capital asset and depreciation records. As a result, depreciation expense continued to be recorded in
subsequent years. The correction removes the assets’ historical cost and related accumulated depreciation, if
applicable, with the net effect recorded as a restatement of beginning net position. See Note 20 for more
information.
Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
$1,560,461
$145,919
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
25
Construction Commitments
The Town has a $916,000 construction commitment for phase two of the Glade Creek Greenway construction project, a
$404,000 construction commitment for the Gus Nicks Boulevard Pedestrian construction project, a $265,000 construction
commitment for the Traffic Signal Replacement construction project, a $481,000 construction commitment for the Hardy
Road Pedestrian Crosswalk construction project, a $1,250,000 construction commitment for the Multi-Generational Park
construction project, a $100,000 construction commitment for the East Cleveland Avenue Redevelopment construction
project, a $500,000 construction commitment for the Mountain View Road construction project, a $1,675,000
construction commitment for the Third Street Lift Station, and $4,000,000 for the War Memorial Remodel as of June 30,
2024.Financing for the War Memorial Remodel has not yet been secured.
Note 6 –Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental
Activities Balance Additions Reductions Balance One Year
General obligation bonds $975,476 $-$(360,578)$614,898 $360,897
Operating leases 524,248 900,431 (452,624)972,055 292,405
Compensated absences 598,648 266,488 (197,554)667,582 220,302
Activities Balance Additions Reductions Balance One Year
Compensated absences $46,104 $-$(14,472)$31,632 $8,224
Governmental activities’ compensated absences are generally liquidated by the general fund.
Governmental Activities
Year Ending
2025 $360,897 $8,816 $292,405 $37,786
2026 127,000 4,048 210,536 36,183
2027 127,001 1,638 198,927 35,464
2028 --171,462 32,471
2029 --98,725 19,295
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 for the governmental activities’ general obligation bonds.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
26
Details of long-term indebtedness are as follows:
Interest Rates Date Issued Date
Amount of
Original Issue Activities
Virginia Association of Counties
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 $702,000 $220,000
Carter Bank and Trust
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 234,898
Zions Bancorporation
G.O. Refunding Bonds 1.66%04/22/21 03/01/33 1,546,000 160,000
$614,898
Enterprise Fleet Vehicles Various Various Various $953,062 $953,062
Copiers 3.50%07/01/21 10/31/24 40,687 4,273
Storage Building 3.50%07/01/21 06/30/25 56,076 14,720
$972,055
Note 7 –Performance Agreements
The Town has 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, 2034. As of June 30, 2024, the amount earned is $1,295,423 and the amount unearned is $3,595,515.
The Town made total payments of $705,081 in fiscal year 2024.
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 (“VRS” or 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
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
27
Employees Covered by Benefit Terms
As of the June 30, 2022 actuarial valuation, the following employees were covered by the benefit terms of the pension
plan:
Numbers
Total covered employees 293
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended, but
may be impacted as a result of funding options provided to Political Subdivisions by the Virginia General Assembly.
Employees are required to contribute 5.00% of their compensation toward their retirement.
The Political Subdivision’s contractually required contribution rate for the year ended June 30, 2024, was 9.94% of covered
employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30,
2021.
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 $456,835 and $405,632 for the years ended June 30, 2024 and June 30,
2023, 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,
2023. The total pension liability (asset)used to calculate the net pension liability (asset)was determined by an actuarial
valuation performed as of June 30, 2022 rolled forward to the measurement date of June 30, 2023.
Actuarial Assumptions
The total pension liability for General Employees and Public Safety with Hazardous Duty Benefits in the Political
Subdivision’s Retirement Plan was based on an actuarial valuation as of June 30, 2022, 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, 2023.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
28
Inflation 3.50 –5.35%
benefits –Salary increases, including inflation 3.50 –4.75%
Investment rate of return 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.
The actuarial assumptions used in the June 30, 2022 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, 2021. 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 to better fit experience; 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; decreased 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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
29
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:
Asset Class (Strategy)
Target
Allocation
Arithmetic
Long-Term
Return
Average
Long-Term
Return
Public Equity 34.00%6.14%2.09%
Fixed Income 15.00 2.56 0.38
Credit Strategies 14.00 5.60 0.78
Real Assets 14.00 5.02 0.70
Private Equity 16.00 9.17 1.47
MAPS –Multi-Asset Public Strategies 4.00 4.50 0.18
PIP –Private Investment Partnership 2.00 7.18 0.14
Cash 1.00 1.20 0.01
Total 100.00% 5.75
*Expected arithmetic nominal return 8.25%
*The above allocation provides for a one-year return of 8.25%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected rate of return
for the System, stochastic projections are employed to model future returns under various economic
conditions. The results provide a range of returns over various time periods that ultimately provide a
median return of 7.14%, including expected inflation of 2.50%. On June 15, 2023, the VRS Board elected
a long-term rate of 6.75%,which is roughly at the 45th percentile of expected long-term results of the
VRS fund asset allocation at that time, providing a median return of 7.14%, 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, 2023, the alternate rate was the employer contribution rate used in the fiscal year 2012 or 100% of the actuarially
determined employer contribution rate from the June 30, 2022 actuarial valuations, whichever was greater. From July 1,
2023 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
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
30
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.
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Liability
(a)
Net Position
(b)
Liability (Asset)
(a)-(b)
Balance at June 30, 2022 $20,670,042 $20,609,215 $60,827
Changes for the year
Service cost 453,050 -453,050
Interest 1,378,312 -1,378,312
Differences between expected and
actual experience (151,966)-(151,966)
employee contributions (1,407,312)(1,407,312)-
Balance at June 30, 2023 $20,942,126 $21,032,926 $(90,800)
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%
Decrease
(5.75%)
Discount Rate
(6.75%)
Increase
(7.75%)
Political subdivision’s net pension liability (asset)$2,652,731 $(90,800)$(2,365,248)
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
31
Pension Benefit and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2024, the Political Subdivision recognized pension benefit of $(117,492). At June 30, 2024,
the Political Subdivision reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Inflows of
Resources
Differences between expected and actual experience $-$77,473
Net difference between projected and actual earnings on
pension plan investments -339,716
Total $456,835 $417,189
The $456,835 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, 2025. Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized in pension expense as follows:
Year Ending
June 30,Pension Expense
2025 $(315,270)
2026 (412,208)
2027 298,056
2028 12,233
2029 -
Thereafter -
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plans is also available in the separately issued VRS 2023 Annual
Report.A copy of the 2023 VRS Annual Report may be downloaded from the VRS website at
http://www.varetire.org/Pdf/Publications/2023-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
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
32
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, 2023 actuarial valuation, the following employees were covered by the benefit terms of the Plan:
Number
73
Total OPEB Liability
The Town’s total OPEB liability of $215,583 was measured as of June 30, 2024, and was determined based on an actuarial
valuation performed as of July 1, 2023.
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:
Mortality rates: PUB 2010 General (M/F) with MP 2021 projection.
The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experience study
for the period from July 1, 2022 through June 30, 2023.
Changes in assumptions and other inputs reflect plan changes, effect of economic/demographic gains or losses, and effect
of assumptions changes or inputs.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
33
Changes in the Total OPEB Liability
Balance at June 30, 2023 $198,799
Changes for the year:
Service cost 15,272
Interest 8,210
Difference between expected and actual experience 14,127
Assumption or other input changes (20,825)
Net changes 16,784
Balance at June 30, 2024 $215,583
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 (3.21%) or one-percentage-point higher (5.21%)
than the current discount rate:
1.00%
Decrease
(3.21%)
Discount Rate
(4.21%)
Increase
(5.21%)
Total OPEB liability $248,656 $215,583 $186,951
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 (3.5%) or one-percentage-point
higher (5.5%) than the current healthcare cost trend rates:
1.00%
Decrease
(3.50%)
Healthcare Cost
Trend Rates
(4.50%)
1.00%
Increase
(5.50%)
Total OPEB liability $184,327 $215,583 $253,688
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the Town recognized OPEB benefit of $(20,723). At June 30, 2024, the political
subdivision reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred
Outflows of
Resources
Inflows of
Resources
Differences between expected and actual experience $12,557 $74,436
Change is assumptions 4,734 116,025
Total $17,291 $190,461
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
34
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized
in OPEB expense as follows:
Year Ended
June 30,OPEB Expense
2025 $(44,205)
2026 (44,441)
2027 (35,930)
2028 (15,274)
2029 (15,274)
Thereafter (18,046)
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, 2024
35
Contributions
Contributions to the VRS OPEB program were based on actuarially determined rates from actuarial valuations as of
June 30, 2021. 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.
0.54% employer. Employers may elect to pay all or part of the employee contribution.
In June 2023, the Commonwealth made a special contribution of approximately $10.1 million to the Group
Life Insurance plan. This special payment was authorized by Chapter 2 of the Acts of Assembly of 2022,
Special Session I, as amended by Chapter 769, 2023 Acts of Assembly Reconvened Session. The Town’s
proportionate share is reflected in Exhibit 2 of the financial statements.
OPEB Liability, OPEB Expense, and Deferred Inflows and Outflows of Resources Related to OPEB
The net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability
was determined by an actuarial valuation performed as of June 30, 2022, and rolled forward to the measurement date of
June 30, 2023. 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, 2023,relative to the total of the actuarially
determined employer contributions for all participating employers.
Group Life Insurance Program
June 30, 2024 proportionate share of liability $189,492
June 30, 2023 proportion 0.01580%
June 30, 2022 proportion 0.01500%
June 30, 2024 benefit $(1,228)
Since there was a change in proportionate share between measurement dates, a portion of the OPEB expense above was
related to deferred amount from changes in proportion.
At June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
36
Group Life Insurance Program
Deferred
Outflows of
Resources
Inflows of
Resources
Differences between expected and actual experience $18,926 $5,752
Change in assumptions 4,050 13,129
Net difference between projected and actual earnings on OPEB
plan investments -7,615
Total $61,440 $55,989
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, 2025.
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
Year Ended
June 30,
(Reduction)to
OPEB Expense
2025 $(11,473)
2026 (15,734)
2027 2,571
2028 3,918
2029 3,537
Thereafter -
Actuarial Assumptions and Other Inputs
The total OPEB liability was determined using the following assumptions based on an actuarial valuation date of June 30,
2022, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2023:
Locality –general employees
Locality –hazardous duty employees
3.5 –5.35%
3.5 –4.75%
Under age 65
Ages 65 and older
7.00–4.75%
5.25 –4.75%
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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
37
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, 2023, net OPEB liability amounts
for the VRS OPEB program is as follows (amounts expressed in thousands):
Group Life
Insurance
Program
Total OPEB Liability $3,907,052
Plan fiduciary net position 2,707,739
Employer’s net OPEB liability 1,199,313
Plan fiduciary net position as a percentage of total OPEB liability 69.30%
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.
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 Note 8.
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, 2023, 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,which was 113% of the actuarially determined
contribution rate for GLI and 100% of the actuarially determined contribution rate for all other OPEB plans. From July 1,
2023, 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 eligible employees. Therefore, the long-term expected rate of return was applied to all periods of
projected benefit payments to determine the total OPEB liability.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
38
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
(5.75%)
Discount Rate
(6.75%)
Increase
(7.75%)
GLI Net OPEB liability $280,886 $189,492 $115,599
OPEB Plan Fiduciary Net Position
Information about the various VRS OPEB plan fiduciary net position is available in the separately issued VRS 2023 Annual
Comprehensive Financial Report (Annual Report). A copy of the 2023 VRS Annual Report may be downloaded from the
VRS website athttp://www.varetire.org/Pdf/Publications/2023-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, 2024
39
Note 11 –Summary of Pension and Other Postemployment Benefits Elements
Governmental
Activities Activities Government
Net pension asset
VRS $86,087 $4,713 $90,800
Total net pension asset $86,087 $4,713 $90,800
Total net OPEB liability $380,525 $24,550 $405,075
Total deferred outflows of resources –pensions $433,125 $23,710 $456,835
OPEB $73,959 $4,772 $78,731
Total deferred inflows of resources –pensions $395,537 $21,652 $417,189
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
40
Governmental
Activities Activities Government
Deferred inflows of resources –OPEB
Difference between expected and actual experience
Local plan $69,925 $4,511 $74,436
VRS GLI 5,403 349 5,752
Change in assumptions
Local plan 108,993 7,032 116,025
VRS GLI 12,333 796 13,129
Change in proportionate share
VRS GLI 27,707 1,786 29,493
Net difference between projected and actual earnings
on investments
VRS GLI 7,153 462 7,615
Note 12 –Summary of Pension and Other Postemployment Benefit Expenses/Expenditures
Governmental
Activities Activities Government
Pension benefit
VRS $111,394 $6,098 $117,492
Total pension benefit $111,394 $6,098 $117,492
Total OPEB benefit $20,621 $1,330 $21,951
Note 13 –Deferred Compensation Plan
Plan Description
The Town offers its employees a deferred compensation plan created in accordance with IRC 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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
41
Note 14 –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 IRC Section 6621(b). The effective tax rates per $100 of assessed value for the year ended
June 30 were as follows:
Note 15 –Risk Management
The Town is exposed to various risks of loss related to the following: torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The Town participates with other localities in a public
entity risk pool, The Virginia Municipal Group Self Insurance, for their coverage of workers’ compensation. The Town also
participates with other localities in a public entity risk pool, the Virginia Municipal League, for their coverage of property
damage. The Town pays an annual premium to the pools for its general insurance coverage. The agreement for the
formation of the pools provides that the pools will be self-sustaining through member premiums. The Town continues to
carry commercial insurance for all other risks of loss. There have been no significant reductions in insurance coverage
from the prior year. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of
the past three years.
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.
Note 16 –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.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
42
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 $21.0 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 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 commenced
during the current year.
Note 17 –Interfund Activity
The primary purpose of the $409,153 transfer from the general fund to the stormwater management fund was to cover
obligations of stormwater fund. The primary purpose of the $2,775,000 transfer from the general fund to the capital
projects fund was to cover capital outlays for the capital projects fund.The primary purpose of the $1,801,555 transfer
from the general fund to the grant fund was to cover obligations of the grant fund. The primary purpose of the $1,863,810
transfer from the water and sewer fund to the general fund was to close the water and sewer fund.
Amounts due from/to other funds consist of the following at June 30:
Receivable Fund Payable Fund Amount
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
43
Note 18 –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
Prepaids $103,639 $-$-
CDBG revolving loan 95,003 --
Land held for sale 495,239 --
Total nonspendable 693,881 --
Public safety 330,413 --
Total restricted 330,413 --
Health and welfare 19,678 --
Capital projects -5,776,150 -
Total committed 19,678 5,776,150 -
General government administration 9,210 --
Health and welfare 7,563 --
Total assigned 16,773 --
3,384,288 -(171,136)
Total fund balance $4,445,033 $5,776,150 $(171,136)
The Grant Fund carried a negative fund balance at yearend due to the timing of reimbursement requests for eligible
highway construction expenditures.
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. Staff is working with Town council to move towards a fee to sustain the fund.
Note 19 –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 $3,000,000 over three
years beginning in July 2023 to be paid in full no later than July 15, 2025.The Town recorded a receivable of $1,500,000
for the remaining amount in fiscal year 2024.
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
44
Inventory and Capital Assets
The remaining depreciable assets were transferred to the general or stormwater funds in FY24. The remaining land will
be transferred to WVWA in FY25.The remaining construction in progress related to the 3rd street lift station project will
be leased to WVWA once completed.
Long-Term Debt
With regard to long-term debt, WVWA will reimburse the Town for approximately $6,800,000 in general obligation and
revenue bond debt service payments by March 1, 2033. WVWA reimbursed the Town for approximately $520,000 in
general obligation and $186,000 in revenue bond debt service payments in FY24. The Town reported a receivable and
payable of approximately $6,000,000 as of June 30, 2024 for the principal and interest.The following debt are under this
arrangement:
Interest Rate Date Issued Date
Amount of
Debt
Outstanding
Zions Bancorporation
G.O. Capital Improvement Bonds 1.66%04/22/21 03/01/33 $3,168,000
G.O. Refunding Bonds 1.66%04/22/21 03/01/33 939,000
Virginia Association of Counties
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 790,000
Activities
Due from WVWA receivable, within one year -purchase $1,000,000
Due from WVWA receivable, within one year –debt 442,414
Due from WVWA receivable, within more than one year 5,280,724
Total receivables $6,723,138
Total payables $(5,223,138)
Town of Vinton, Virginia
Notes to Financial Statements
June 30, 2024
45
Note 20 –Restatement of Beginning Net Position
The Town corrected an item related to capital assets that were transferred to the Roanoke County Economic Development
Authority in fiscal year 2022 but were not removed from the Town’s capital asset and depreciation records as discussed
in Note 5. The Town also corrected an item related to certain expenditures, revenue, receivables, and unearned revenue
related to Highway Construction funds that were not recorded in the proper period. The following is a summary of the
restatement to net position:
Grant Fund Activities
Net position/fund balance July 1, 2023, as previously reported $84,578 $21,873,741
Correct expense understatement (38,542)(684,975)
Net position/fund balance July 1, 2023, as restated $46,036 $21,188,766
Note 21 –New Accounting Standards
In June 2022, the GASB issued Statement No. 101, Compensated Absences. This statement updates the recognition and
measurement guidance for compensated absences and amends certain previously required disclosures. The requirements
of this Statement are effective for reporting periods beginning after December 15, 2023.
In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. This statement defines and requires
governments to disclose the risks related to concentrations of inflows or outflows of resources. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2024.
In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This statement improves key
components of the financial reporting model to enhance its effectiveness in providing information that is essential for
decision making and assessing a government’s accountability, as well as addresses certain application issues. The
requirements of this Statement are effective for reporting periods beginning after June 15, 2025.
Management has not determined the effects these new GASB Statements may have on prospective financial statements.
Compliance Section
Assistance Pass-Through Amounts Passed
Federal Grantor/Pass - Through Grantor/Listing Entity Identifying Thru to Federal
Program or Cluster Title Number Number Sub-recipients Expenditures
Department of Justice
Pass Through Payments
Virginia Department of Criminal Justice Services
Local Law Enforcement Block Grant FFY 23 16.738 21-U10099LO18 N/A 11,280$
Bulletproof Vest Partnership Program 16.607 N/A N/A 2,260
Highway Safety Cluster
20.205 UPC 111649
20.205 UPC 113565
20.205 UPC 109611 N/A 418,678
20.205 UPC 119911 N/A 215,027
20.205 UPC 113322 N/A 105,974
COVID-19 American Rescue Plan Act: CSLFRF-NEU 21.027 N/A N/A 157,842
2,023,315$
Note 1 - Basis of Presentation:
Note 2 - De Minimis Indirect Cost Rate:
Note 3 - Outstanding Loan Balances:
At June 30, 2024, the Town had no outstanding loan balances requiring continuing disclosure.
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
Town of Vinton, Virginia
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
46
www.becpas.com
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
To the Honorable Members of the Town Council
Town of Vinton, Virginia
We have audited, in accordance with auditing standards generally accepted in the United States of
America; 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, 2024, and the related notes to the financial
statements, which collectively comprise the Town’s basic financial statements and have issued our report
thereon dated July 6,2026.
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 2024-001, 2024-002,2024-003, 2024-
004 and 2024-005 that we consider to be material weaknesses.
48
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 an instance of noncompliance that is required to be reported under Government Auditing
Standards, which is described in the accompanying schedule of findings and questioned costs as item
2024-010.
Town’s Response to Findings
Government Auditing Standards require 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
July 6, 2026
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
Qualified Opinion
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, 2024. 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.
Qualified Opinion on Assistance Listing # 20.205,Highway Planning and Construction.
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion Section of our
report, 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 20.205 Highway Planning and Construction for
the year ended June 30, 2024.
Basis for Qualified Opinion
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.
50
Matters Giving Rise to Qualified Opinion on Assistance Listing # 20.205,Highway Planning
and Construction.
As described in the accompanying schedule of findings and questioned costs, the Town did not comply
with the requirements regarding Assistance Listing #20.205 Highway Planning and Construction as
described in finding number 2024-008 for Special Tests and Provisions –Wage Rate and 2024-009 for
Special Tests and Provisions –Quality Assurance.
Compliance with such requirements is necessary, in our opinion for the Town to comply with the
requirements applicable to that program.
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.
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.
51
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 item 2024-006. 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.
Report on Internal Control over Compliance
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, as discussed below, we did identify certain
deficiencies in internal control over compliance that we consider to be material weaknesses.
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. We consider the deficiency in internal
control over compliance described in the accompanying Schedule of Findings and Questioned Costs as
item 2024-007 to be a material weakness.
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.
52
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.
Government Auditing Standards requires the auditor to perform limited procedures on the Town’s
response to the internal control over compliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The Town’s response was not subjected to the
other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion the
response.
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
July 6, 2026
Town of Vinton, Virginia
Summary of Compliance Matters
June 30, 2024
53
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
State Agency Requirements:
Urban Highway Maintenance Funds
Stormwater Management Program
Fire Programs Aid to Localities
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.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
54
A –Summary of Auditor’s Results
1.The auditor’s report expresses an unmodified opinion on the financial statements.
2.Five 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.One instance of noncompliance material to the financial statements was disclosed.
4.One material weakness and no significant deficiencies relating to the audit of the major federal award
programs were reported in the Independent Auditor’s report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance.
5.The auditor’s report on compliance for the major federal award programs expresses a qualified opinion.
6.The audit disclosed three audit findings relating to the major programs.
7.The program tested as major was:
Name of Program
Listing
Number
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
2024-001:Audit Adjustments (Material Weakness)
Condition We noted that several year-end audit adjustments were required to ensure that the
financials were prepared in accordance with accounting principles generally
capital assets.
States of America.
Year-
reconciled to year-
of prior year accruals should be reviewed before the audit.
not reviewed before year-end entries were made, resulting in additional adjustment to long-
term debt balances. With regard to governmental activities
adjustments. With regard to governmental activities intergovernmental receivables
receivables, and deferred revenue, calculated balances were
recorded at year-end.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
55
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 actions:
Formalizing year-end procedures to ensure roll-
supporting workpapers are completed and reviewed.
We will continue to take advantage of training opportunities to support staff growth
and understand year-end processes.
We will create a structur
verify the accuracy and completeness of all year-
before they are incorporated into the trail balance and financial statements.
2024-002: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 establis
technology.
no other accounting responsibilities.
duties.
dishonesty and error.
implement effective compensating controls.
Action
Management acknowledges the auditor’s findings and we’re working towards reducing the
conflicting duties.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
56
2024-003:Fund Balance Accounting (Material Weakness)
Condition Some funds, including the 9999 Treasurer Accountability Fund, did not balance due to
manual journal entries crossing funds or utilization of fund balance accounts during the year.
In addition, we noted that following the implementation of the Town’s
accounting system,Munis, General Fund activity and government-
As a result, transactions and balances that should be reported solely at the government-
level, such as capital assets, long-term liabilities, and other full-
maintained within the same accounting structure as General F
likelihood of recording entries that cross funds.
be within the fund balance category unless a prior period adjustment is necessary.
present fund financial statements and government-
measurement focuses, basis
reporting requires that these perspectives be maintained separately.
funds to not balance. In addition, the lack of separation between the government-
and General F
implemented during the fiscal year.
fiscal year, auditor adjustments were required to correct fund balance.
In addition, additional manual adjustments and reconciling entries
year-end financial reporting process to prepare GASB-compliant fund and government-
financial statements because of combining General Fund and government-
within the accounting system.
seeking additional training on funds, fund balance, and the use of the 999
Accountability Fund.
In addition, we recommend creating a government-wide fund in Munis.
Management agrees with the auditors’ recommendation and are committed to
strengthening controls and improving system configuration to ensure fund integrity.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
57
2024-004:Grant Management (Material Weakness)
Condition During the audit, we noted that certain expenditures, revenue, receivables, and unearned
revenue related to Highway Construction funds were not properly recorded. Expenditures
had been overstated by approximately $720,000 on the Schedule of Expenditures of F
A
grant expenditures, revenue, receivables, and unearned revenue at year end. We also noted
that reimbursement requests were not filed timely.
reported on the Schedule of Expenditures of Federal Awards.
amounts expended were correctly reported on the Schedule of Expenditures of F
A
monitoring or periodic review to ensure timely submission.
accounting and reconciliations, there is an increased risk that grant revenues
expenditures may be misstated in future reporting periods.
ledger, and proper treatment of funding received and tracked as unearned revenue.
expended are correctly reported on the Schedule of Expenditures of Federal Awards.
Action
Management acknowledges the auditors’ findings some of these issues were influenced by
the transition to the new financial system, as well as the fact that grant activity and
supporting documentation are managed by departments outside of Finance, which can
create timing and reconciliation challenges during year-end close.
•Provide targeted grant training for departments responsible for grant management,
including topics such as timely reimbursement requests, cash-
fiscal year cut-off procedures, and appropriate documentation requirements.
•Reinforce procedures for reconciling grant reports to the general ledger to ensure
expenditures and revenues are recorded in the correct fiscal year.
•Develop guidance regarding the proper classification and treatment of funds
received in advance, including when amounts should be recorded as unearned
revenue.
•Improve coordination between departments and Finance during year-
financial statements.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
58
Evaluate opportunities to standardize grant tracking practices across departments
to reduce variability and strengthen consistency in reporting.
2024-005: Depreciation Allocation (Material Weakness)
Condition We noted inconsistencies in the classification of capital assets across departments. The client
documented approximately $4.9 million in community development capital asset additions
at the time of construction or purchase. However, these assets were reass
departments when added to the depreciation listing.
depreciation schedules, to ensure accurate financial reporting and proper accountability.
acquisition through their recording in the depreciation listing.
ability to effectively monitor and track capital assets by department.
depreciation schedules
Action
Management acknowledges the recommendation. As we transition to a new financial ERP
system and continue onboarding staff, we are actively learning and interpreting the asset
categorizations used in the prior system. At the same time, staff have been working to
identify and correc
contributed to the inconsistencies noted during the audit.
depreciation schedules. Additional review and reconciliation steps will be
maintain accuracy and consistency across departments going forward.
C –Findings and Questioned Costs –Major Federal Award Program Audit
2024-006: Highway Planning and Construction –AL# 20.205, Late Filling of Data Collection Form
Condition The Town did not submit the data collection form for the year ended June 30, 2024 timely.
For June 30, 2024 year-
Office of Management and Budget (OMB), all entities are required to submit the annual
issuance of the entity’s annual audit or nine months after the entity’s fiscal year-end.
Clearinghouse the earlier of either 30 days after the issuance of the Town
nine months after the Town’s fiscal year-end.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
59
ACFR.
completion of all annual audit requirements for the Town.
of Prior Audit Findings.
Action
Management acknowledges the findings and will continue to work to ensure the reports are
filed in a timely manner.
2024-007: Schedule of Expenditures of Federal Awards (Material Weakness)
Condition The Schedule of Expenditures of Federal Awards (SEFA) was prepared without supervisor
review, resulting in several auditor corrections.
workpapers.
presented in accordance with Uniform Guidance.
Federal Awards.
awards.
of Prior Audit Findings.
Action
Management acknowledges the findings and we are working to create, develop, and
implement stronger procedures and internal controls surrounding the Grant Fund and federal
awards.
2024-008: Highway Planning and Construction –AL # 20.205, Special Tests and Provisions –Wage Rate
(Material Noncompliance)
Condition The Town could not provide evidence that contractors or subcontractors performing work
on two
by the Davis-Bacon Act.
Highway C
compliance with applicable federal labor standards, including obtaining and revi
certified payroll reports.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
60
subject to Davis-Bacon requirements.
with federal labor standards may have occurred and gone undetected.
should include a documented review process to verify compliance with Davis-Bac
assisted projects.
Action
Management acknowledges the recommendation. Throughout the duration of this
multi-
applicable contractors and subcontractors. Despite multiple requests and follow-
that certified payroll reports are consistently obtained, reviewed, and ret
with Davis-Bacon requirements.
2024-009: Highway Planning and Construction –AL # 20.205 Special Tests and Provisions –Quality
Assurance (Material Noncompliance)
Condition The Town was unable to provide evidence of quality assurance test results for two sampled
highway construction projects. As a result, we could not verify that the required number of
tests were performed in accordance with program guidelines, and
of the contractor.
projects.
verified by qualified personnel in accordance with program requirements.
requirements. In addition, the lack of documentation prevents the locality and
agencies from verifying compliance.
quality assurance
verification sampling are performed by qualified personnel independent of the contractor.
Town of Vinton, Virginia
Schedule of Findings and Questioned Costs
June 30, 2024
61
Action
Management acknowledges the recommendation. Throughout the duration of this
multi-
requests and follow-
documentation.
obtained, reviewed, and retained in accordance with applicable requirements.
D –Finding –Commonwealth of Virginia
2024-010: General Government Budget Appropriation
Condition Public Works, Community Development, and Capital Projects expenditures exceeded budget
appropriations in the General Fund. General Government, Public Safety, Community
Development, and Capital Projects exceeded budgeted appropriations in the Grant Fund.
The Town is required to keep expenditures within budgeted amounts.
approved by the Town Council and budget amended,accordingly.
Action
Management acknowledges the findings. Expenditures in the noted departments exceeded
budgeted appropriations due to operational needs and project-
than originally anticipated. Throughout the fiscal year, staff monitored spendin
adjusted where possible; however, certain expenditures could not be deferred.
manner. In addition, we will continue working with all departments and external partner
appropriations going forward.
Town of Vinton, Virginia
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2024
62
A –Findings –Financial Statement Audit
2023-001: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 generally
receivable, and capital assets.
2023-002: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 establish
technology.
questioned costs.
2023-003:Grant Management (Material Weakness)
Condition During the fiscal year 2024 audit, we noted that certain expenditures, revenue, receivables,
and unearned revenue related to Highway Construction funds were not properly recorded
in fiscal year 2023. As a result, expenditures on the fiscal year 2023 Schedu
of Federal Awards were understated by approximately $660,000. A prior period
We also noted that reimbursement requests were not filed timely.
B –Finding –Major Federal Award Program Audit
2023-004:COVID-19 Coronavirus State and Local Fiscal Recovery Fund –AL# 21.027, Highway
Planning and Construction –AL# 20.205, Late Filling of Data Collection Form
Condition The Town did not submit the data collection form for the year ended June 30, 2023 timely.
Current Status Condition still present for Highway Planning and Construction –AL# 20.205. See item 2024-
006 in schedule of findings and questioned costs.
Town of Vinton, Virginia
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2024
63
2023-005:Schedule of Expenditures of Federal Awards (Material Weakness)
Condition The SEFA was prepared without supervisor review, resulting in several auditor corrections.
Current Status Condition still present. Condition is a material weakness in the current year. See item 2024-
007 in schedule of findings and questioned costs.