HomeMy WebLinkAboutBath County - Public Financial Report COUNTY OF BATH, VIRGINIA
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PC: MIKULA HARRIS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
YEAR ENDED .1UNE 3O, 2022
COUNTY OF BATH, VIRGINIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
Prepared by
Michael Bender, County Administrator
County of Bath, Virginia
COUNTY OF BATH, VIRGINIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION
Paqe
Letterof Transmittal .......................................................................................................... i
GFOA Certificate of Achievement...................................................................................... ii
OrganizationalChart ......................................................................................................... iii
List of Elected and Appointed Officials ............................................................................. iv
FINANCIAL SECTION
Paqe
Independent Auditors' Report ............................................................................................ 1-3
Management's Discussion and Analysis............................................................................ 4-13
Exhibit Paqe
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position........................................................................................... 1 14
Statement of Activities................................................................................................ 2 15-16
Fund Financial Statements:
Balance Sheet-Governmental Funds.......................................................................... 3 17
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position........................................................................................ 4 18
Statement of Revenues, Expenditures, and Changes in Fund Balances—
Governmental Funds ............................................................................................... 5 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities.................... 6 20
Notes to Financial Statements.................................................................................... 21-103
COUNTY OF BATH, VIRGINIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Required Supplementary Information:
Exhibit Paqe
Schedule of Revenues, Expenditures, and Changes in Fund Balances—
Budget and Actual:
GeneralFund........................................................................................................... 7 104
Special Revenue Fund — Lodging Tax-Marketing/Capital Fund .............................. 8 105
Special Revenue Fund — Special Lodging Tax Fund............................................... 9 106
Schedule of Changes in Net Pension Liability and Related
Ratios — Primary Government Pension Plans ............................................................ 10 107-108
Schedule of Changes in Net Pension Liability and Related
Ratios — Public Service Authority Pension Plans........................................................ 11 109-110
Schedule of Changes in Net Pension Liability (Asset) and Related
Ratios — Component Unit School Board (nonprofessional) Pension Plans................ 12 111-112
Schedule of Employer's Share of Net Pension Liability VRS Teacher Retirement
PlanPension Plans...................................................................................................... 13 113-114
Schedule of Employer Contributions— Pension Plans .................................................. 14 115
Notes to Required Supplementary Information — Pension Plans................................... 15 116
Schedule of County's Share of Net OPEB Liability—
Group Life Insurance (GLI) Plan................................................................................. 16 117
Schedule of Employer Contributions—
Group Life Insurance (GLI) Plan................................................................................. 17 118
Notes to Required Supplementary Information —
Group Life Insurance (GLI) Plan................................................................................. 18 119
Schedule of County's Share of Net OPEB Liability—
Virginia Local Disability Program (VLDP) .................................................................. 19 120
Schedule of Employer Contributions—
Virginia Local Disability Program (VLDP) ................................................................... 20 121
Notes to Required Supplementary Information —
Virginia Local Disability Program (VLDP) ................................................................... 21 122
Schedule of School Division's Share of Net OPEB Liability—
Teacher Virginia Local Disability Program (VLDP) .................................................... 22 123
Schedule of Employer Contributions—
Teacher Virginia Local Disability Program (VLDP) ..................................................... 23 124
COUNTY OF BATH, VIRGINIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Required Supplementary Information: (continued)
Exhibit Paqe
Notes to Required Supplementary Information —
Teacher Virginia Local Disability Program (VLDP) ..................................................... 24 125
Schedule of School Board's Share of Net OPEB Liability—
Teacher Employee Health Insurance Credit (HIC) Plan ............................................. 25 126
Schedule of Employer Contributions—
Teacher Employee Health Insurance Credit (HIC) Plan ............................................. 26 127
Notes to Required Supplementary Information —
Teacher Employee Health Insurance Credit (HIC) Plan ............................................. 27 128
Schedule of Changes in Net OPEB Liability and Related Ratios— Component
Unit School Board (nonprofessional) Health Insurance Credit (HIC) Plan.................. 28 129
Schedule of Employer Contributions— Component Unit School Board
(nonprofessional) Health Insurance Credit (HIC) Plan................................................ 29 130
Notes to Required Supplementary Information — Component Unit School Board
(nonprofessional) Health Insurance Credit (HIC) Plan................................................ 30 131
Schedule of Changes in Total OPEB Liability and Related Ratios —
PrimaryGovernment................................................................................................... 31 132
Schedule of Changes in Total OPEB Liability and Related Ratios —
Component Unit School Board ................................................................................... 32 133
Notes to Required Supplementary Information — County OPEB ................................... 33 134
Other Supplementary Information:
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet—Nonmajor Special Revenue Funds................................... 34 135
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances— Nonmajor Special Revenue Funds.......................................................... 35 136
Schedule of Revenues, Expenditures, and Changes in Fund
Balances—Budget and Actual—Nonmajor Special Revenue Funds.......................... 36 137-138
Discretely Presented Component Unit—School Board:
Combining Balance Sheet............................................................................................. 37 139
COUNTY OF BATH, VIRGINIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Other Supplementary Information: (continued)
Exhibit Paqe
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances—Governmental Funds................................................................................ 38 140
Schedule of Revenues, Expenditures, and Changes in Fund
Balances—Budget and Actual.................................................................................... 39 141-142
Discretely Presented Component Unit—Service Authority:
Statement of Net Position............................................................................................. 40 143
Statement of Revenues, Expenses, and Changes in Net Position............................... 41 144
Statement of Cash Flows ............................................................................................. 42 145
Schedule Paqe
Supporting Schedules:
Schedule of Revenues—Budget and Actual—Governmental Funds .................................. 1 146-150
Schedule of Expenditures—Budget and Actual—Governmental Funds .............................. 2 151-154
STATISTICAL SECTION
Table Paqe
Net Position by Component................................................................................................... 1 155-156
Changes in Net Position ........................................................................................................ 2 157-158
Governmental Activities Tax Revenues by Source................................................................ 3 159
Fund Balances of Governmental Funds ................................................................................ 4 160-161
Changes in Fund Balances of Governmental Funds ............................................................. 5 162-163
General Governmental Tax Revenues by Source ................................................................. 6 164
Assessed Value and Estimated Actual Value of Taxable Property........................................ 7 165-166
Property Tax Rates— Direct and Overlapping Governments................................................. 8 167
PrincipalProperty Taxpayers................................................................................................. 9 168
Property Tax Levies and Collections ..................................................................................... 10 169
COUNTY OF BATH, VIRGINIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
TABLE OF CONTENTS (CONTINUED)
STATISTICAL SECTION (CONTINUED)
Table Paqe
Ratios of Outstanding Debt by Type...................................................................................... 11 170
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita.... 12 171
Demographic and Economic Statistics .................................................................................. 13 172
PrincipalEmployers ............................................................................................................... 14 173
Full-time Equivalent County Government Employees by Function........................................ 15 174-175
Operating Indicators by Function........................................................................................... 16 176-177
Capital Asset Statistics by Function....................................................................................... 17 178-179
COMPLIANCE SECTION
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditing Standards..................................... 180-181
Independent Auditors' Report on Compliance for Each Major Program and Internal
Control over Compliance Required by the Uniform Guidance ........................................ 182-184
Schedule of Expenditures of Federal Awards ...................................................................... 185-186
Schedule of Findings and Questioned Costs ....................................................................... 187
INTRODUCTORY SECTION
�ON1�'i Bath County Administration
Michael J.Bender,fr. �� F4�j, P.O.Box 309
Couniy Adminietrator � �
Waz�yn Springs,Virginia 24484
COUN3TY 4� BATH S4Q.839.7221 Phone
540.8399222 Fax
�;r��� mbenderC�bathcountwa.org
�`1 RG��
Janu�y 9, 2023
To the Honorable Board of Supervisors and the Citizens of the County of Bath,Virginia:
Commonwealth of Virginia law requires that every general-purpose local government publish,within six months of
t}�e close of each fiscal year, a complete set of audited financial statements. This report is published to fulfill that
requirennent for the fiscal year ended June 30,2022.
Management assumes full responsibility for the completeness and reliability of the information contained in this
report, based upon a comprehensive framework of internal control tfiat it has established for this purpose. Because
the cost of internal contral should not exceed anticipated benefits,the objective is to provide reasonable,rather than
absolute,assurance that the financial statements are free of any materisl misstatements.
Robinson,Farmer,Cox Associatas,Certified Public Accountants,have issued an unrnodified("clean")opinion on the
County of Bath's financial s#atements for the year ended June 30,2022.An audit incl�ades examining,on a test basis,
evidence supportzng the amounts and disclosures in the financial statements,assessing the accounting principles used,
and evalua.ting the overall financial sta.tement presentation.This examination was conducted using guidelines set forth
by Govemment Auditing Standards and the Specification for Audits of Counties, Cities and Towns, issued by the
Auditor of Public Accounts. The independent auditor's report is located at the front of the financial section of this
document.
In addition to meeting requirements set forth by state statues,the independent audit was also designed to meet the
requirements of Title 2 U.S. Code of Federal Regulations Aart 200, Uniform AdministraCive Requirements, Cost
Principles, and Audit Requirements for Federal Awards(the Uniform Guidance)to meet the special needs of federal
grantor agencies. As a part of the County's single auait, tests are made to determine the axlequacy of the system of
internal control, including that portion related to federal financial assistance programs, as well as to determine that
the government has complied with applicable laws and regulations. The results of the County's singie audit for the
�scal year ended June 30,2022 provided na insta.nces of material weaknesses in the system of izaternal control and no
violations of applicable laws and regulations. The auditors' report related specifically to the single audit is included
in the Compliance Section of this report.
Generally accepted accounting principles require that management provide a narrative zntroduction, overview, and
anaiysis to accompany the basic financial s#atements in the forixi of a management discussion and analysis(MD&A).
The MD&A complements the letter of transmittal and should be read in conjunction with it. The County of$ath
MDBcA immediately follows the independent auditor's report_
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Mission Statement
It is our mission to enrich the quality of life for Bath County citizens and businesses alike.In meeting this commitment,
the Board of Supervisors pledges to work in partnership with the citizens af Bath County to achieve the following:
• Provide for the health, safety and welfare of the citizens;
• Foster pride in our community;
• Develop a vibrant and diversified locai economy;
• Plan for the County's future;
• Preserve our rural character and heritage;
• Preserve our nalural environment;and,
• Be good stewards of the public treasury today as well as tomorrow.
Governance
Bath County is a political subdivision of the Commonwealth of Virginia that is governed by a five-member Board of
Supervisors.Board members are residents of and elected fro�n desi�ated magistezial districts:Cedar Creek,Millboro,
Watm Springs,Williamsville,and Valley Springs. Policy-making and legislative authority is vested in the goveming
body{Board). The Board of Supervisors appoints the County Administrator who aversees the County's operations.
Bath County is also served by five Constitutional Officers: Sheriff, Commonwealth Attorney, Treasurer,
Co�nmissioner of the Revenue, and Cizcuit Court Clerk.
The County seat is located in Warm Springs.
Core Government Services
The County provides a wide range of services to its residents: law enforcement, E-911, emergency management,
judicia.l services,sanitation and waste disposal,parks and recreation,tourism,community and economic development,
aninnal control and animal shelter,buildings and gounds maintenaxice, and general and financiai administration.
Utility services(water and sewer)are provided by the Bath County Service Autharity.
T'he Bath County Economic Development Authority assists with the attraction of new businesses and the expansion
of existing businesses to help improve the local economy.
Pnblic Edacation
The Bath County Public 5chool System {BCPS) is fully aceredited by the Virginia Department of Education and
provides education to approximately SQO students in grades K-12. The County has three schools: two elementary
schools(Pre-Kindergarten—Grade 7}, one high school(Grades S- 12),and a career and technical center.
Higher Edacatian
Bath County is located within an hour's drive of several higher education institutions.These include Washington and
Lee University and Virginia Miiitary Institute in Lexington; Southern Virginia University in Buena Vista; and
Mountain Gateway Community College in Clifton Forge.
History
Bath County was formed from parts of Augusta, Botetourt, and Greenbrier counties in December 1790. Named for
the English resort city of Bath,Bath County was, similarly,to become a resort area of na.tional reputation because of
its soothing mineral waters.
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At one time,Bath County had 22 commercial springs opera.ting within its boundaries.These rnineral waters were used
for healing purposes and attracted patrons to the inns and hotels located at Hot Springs,Warm Springs,Bolar Springs,
Millboro Springs, Healing Springs, and Bath-Alum Springs. The construction of the resort hotel, The Homestead,
turned the community of Hot Springs into a nationally recognized resort center. Tourism continues to be the main
industry in Bath County.
Geography
Bath County encompasses 54U square miles and lies within the Allegheny Mountains and is part of the Valley and
Ridge Physiographic Province. The County is characterized by high, narrow,mountain ridges that run northeast to
southwest and that form relatively narrow river valleys. Most of the level areas are found on the terraces adjacent to
streaxns and rivers.
The Jackson,Bullpasture,and Cowpastw-e rivers and other streams lie within Bath County and are subject to moderate
to severe flooding during periods of heavy rains ar rapid thawing. Soils in the County are primarily mountain soils
derived from the weathering of acidic sandstone, shale, quartz, and granite parent material. These soils are often
shallow,rocky,and excessively drained. Soils in the valleys range from carbonate soils to alluvial soils along rivers
and streams.Colluvial soils resulting from the weathering of the sandstone and shale mountains are also found in the
valleys. The predominant geological structure underlying the area is a complex formation af sandstone, limestone,
shale,and doiomite.
Demographica
According to the figures from the Census Burea.u, the Cour�ty has 4,2Q9 residents as of April 1, 2020. Median
household income was $55,481. The poverty level was 11.2%. The educa#ional attainment was 90.3% with a high
school degree or higher and 15.9%with a Bachelor's degree or higher. For more demographic information,visit the
Central Shenandoah Planning District Commission website at cspdc.org.
Healthcare
Bath Community Hospita.l,located in Hot Springs,is a futl-service medical facility oFfering 24-hour emergency care.
The Lewis Gale Hospital Alleghany, located in nearby Alleghany County, offers full-service, acate and emergency
medical care. The Springs Nursing Center is a 90-bed facility providing skilled nursing care in private and shared
accommodations.
Culture and Recreation
The cultural blend of the community is comprised of families who have lived in the County for generations and
residents fro� around the countty and world who have chosen to live in Bath County.
The CounTy operates three playing fields,two tennis courts, a skatepark,two swimming pools and offers a variety of
public recreational programs.
The Bath area offers a wide range of recreation and leisure activities that appeal to both the outdoorsman and those
who wish to experience the ultimate in relaxation. Abundant opportunities e�cist to enjoy camping, hunting, fly and
trout fishing,biking and hiking trails,and resorts and spas.
The nationally known Omni Homestead is located on 3,000 acres in Hot Springs. The Omni Homestead includes two
championship golf courses, horseback riding, hiking, fishing, tennis, swimming, skeet and trap shooting, falconry,
skiing,snowboarding and ice skating.
The Dominion Back Creek recreational area is located adjacent to the world's most powerful pumped storage
generating station, a Dominion Resources owned property that is a zz�ajor taxpayer in the County and provides
electricity for millions of homes across six different states. This 325-acre public recreational area contains two lakes
that are open on a seasonal basis located just downstream from the lower dam. This area is a popular destination far
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fishing,non-power boating,picnicking,swimming,hiking and camping.
As a traditional family park for more than 70 years,Douthat State Park is tisted on the National Register of Historic
Places because its design influenced the development of parks nationwide. Located atnid some of Virginia's most
breathtaking mountain sc�enery,visitors enjoy miles of stream fishing,a 50-acre recreation lake stocked w�ith irout,a
sandy swimming beach,boat and bicycle rentals,a camp store,miles of hiking,biking,harseback riding trails,cabins,
campgrounds and picnic areas.
Lake Moomaw and the BoIar Mountain recreational areas are among the most populaz deveIoped recreational areas
in the George Washington National Forest and provide an endless array of activities including boating,fishing,hiking,
biking and camping.Tl�e Grouse Point Qverlook and the Islands Overlook are also two popular vista locations in the
Bolar Mountain region which offer a scenic panoramic view of Lake Moomaw. Approved by Congress in 1947 the
Gathright Dam and most of the recrea�ion facilities were constrticted by the Army Corps of Engineers between 1965
and 1979.Gathright Dam and Lake Moomaw provide flood and water quality control along the Jackson and the Jatnes
Rivers. Adjacent �to the dam is 13,428 acres known as the T.M. Gathright Wildlife Management Area which is
managed by the Virginia Deparbnent of Wildlife Resources.The area is devoted to the enhancement and management
of wildlife,especially wiId turkey.
Economic Development
'I'he Bath County Economic Development Authority is prepared to assist qualified businesses and industries to expand
or locate in the County. The Authority is comprised of a seven-rnember Board comprised of ane member fram each
Magisterial District and two at-large members appointed by the Board of Supervisors. The County is committed to
free enterprise and maintaining a business-friendly environrnent.
'The County is accessible to Interstate S1 and Interstate b4 via U.S. Route 220 which provides the main routes of
transportation to and from Bath County.General aviation service is available through the Ingalls Field Airpart located
in Hot Springs. Domestic flights are accessible within 66 miles of the Caunty via the Shenandoah Valley Regional
Airport and within 73 miles via the Greenbrier Valley Airport in Lewisburg,West Virginia.
The Bath County Board of Supervisors ar�d the Economic Development Authority Board of Directors has adopted an
Economic Development Strategic Plan. The primary objective of the Bath County Economic Develapment Strategic
Plan is to present a range of implementa.ble action steps that capita.lize on the County's existing strengths and
opportunities to increase the level of economic activity within the County. The Strategic Plan is available for public
review and is on the County's website www.bathcountyva.gov.
Tazes
The property tax rate is $0.55 per$100 in assessed vaivation. The personal property ta7c rate is $0.45 per$100 in
assessed valuation.
The sales t�rate is 1%.
The meals tax rate is 4%.
The lodging ta�c rate is 4%. The General Fund receives 2%of the taxes and the Lodging T�Fund receives 2%.
Relevant�nancial Policies
The Bath County Fund Balance Policy includes th�goal to mainta.in a fund balance for cash liquidity purposes. A#
the close of each fiscal year, the County's unassigned General Fund balance should be equal to at teast 20% of tl�e
County's totai General Fund expenditures. If the County does not meet its target, it will develop a plan during the
annual budget adoption process to replenish the unassigned fund balance to the 20%target tevel over a period of not
more than three to five fiscal years.The County's unassigned General Fund balance is 36%for the fiseal year ending
June 30,2022.
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Mador Initiatives
The County has instituted an additionallodging t�of 5°/a on specific historic lodging establishments for the purpose
of providing econamic incentive grants to said historic lodging establishments. The County has entered into a 3U-
year agreement with The Homestead,L.C. and the EDA to incentivize significant capital improvements to the Omni
Homestead resort, Bath County's largest employer and a major taxpayer.
Bath County, along with neighboring Highland County, expect to have fitll broadband coverage by mid-2023 as a
result of major state grant funding provided by the Virginia Telecommunica�ions Initiative and federal funds provided
by the American Recovery Plan Act Access to broadband wiill help Bath County meet the technology needs of
existing and future businesses, education,and healthcare.
Bath Cormty is also working to address the availabi[ity of market ra�e hausing and meeting tbe child-care needs of
working parents.
Certificate of Achievement for Excellence in Financiaf Reporting
The Government Finance Officer's Association of the United States arxd Canada (GFOA) awards Certiricate of
Achievement for ExcelIence in Financial Reporting to governmental units that exemplify excellence in financial
reporting and conform to stringent reporting requirements promulgated by that Association and various authoritative
bodies.
To earn a Certificate of Achievement, the County has to publish an easily readable and efficiently arganized CAFR
that satisfies both generaily accepted accounting principles and applicable program requirements.
Bath County is proud to receive its fourth Certificate of Achievement for Excellence in Financial Reporting for the
fiscal year ending June 30,2021.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe
our current CAFR meets the Program's requirements,and we are submitting it to the GF�A to determine its eligibility
for a certifica#e.
Conclusion
I want to thank the dedicated staff of the County Administrator's Office and the Office of the County Treasurer for
their hard woric in helping prepare this report. Additionally,all Constiturional officers and departments heads should
be commended for making the most eff'icient use of their budgets. Finally,credit is due to the Baard af Supervisors
for their strong comrnitment to maintaining sound fiscal poiicy. My office looks forward to continuing to work with
the Board of Supervisors and all County departments in ensuring the health,safety,and welfare of our citizens.
Respectfully Submitted,
Michael J.Bender,3r.
Co�nty Administrator
County of Bath,Vi�ginia
i-5
0
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Bath County
Virginia
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
C�i�r,�:o a�w.. P• 7J�e►u�-�-�
Executive Director/CEO
o�M"�"W,��� County of Bath
�� ti
COUNTYOF BATH Organizational Chart
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Citizens --------------------------�
State,Regional
Constitutional Offices and Local Offices
Boards and Commissions ----------- Board of Clerk of Circuit Court Circuit Court
Supervisors Commissioner of Revenue General District Court
Commonwealth Attorney Magistrate
Sheriff Electoral Board Registrar
County Treasurer Cooperative Extension
Attorney Health Department
Mountain,Soil and Water
Public Library
Social Services
County
Administrator
Building, Administration Flre,EMS,& Animal
Planning and Finance and Parks and Solid Waste Grounds Control and
Zonin Tourism Human Recreation and Recycling and Building Emergency Shelter
g Mgmt.
Resources
III
COUNTY OF BATH,VIRGINIA
BOARD OF SUPERVISORS
Roy Burns, Chairman
Edward T. Hicklin, Vice-Chairman Lee Fry
Ron Shifflett Shelton Burns
COUNTY SCHOOL BOARD
James Hooker, Chairman
Jeff Grimm Karen Hise, Vice-Chairman
Zach Burns Clara Tennant
DEPARTMENT OF SOCIAL SERVICES BOARD
Beatrice Clark, Chairman
Thomas Burns Perlista Henry, Vice-Chairman
PUBLIC SERVICE AUTHORITY
Bart Perdue, Chairman
Chad Carpenter, Vice-Chairman David Lindsay, Secretary/Treasurer
Bartlett Ailstock Greg Tunning
OTHER OFFICIALS
Judge of the Circuit Court...............................................................................................John E. Wetsel, Jr.
Clerk of the Circuit Court..................................................................................................... Annette T. Loan
Judge of the General District Court................................................................................ J. Gregory Mooney
Judge of the Juvenile & Domestic Relations Court........................................................... Laura L. Dascher
Commonwealth's Attorney................................................................................................John C. Singleton
Commissioner of the Revenue............................................................................................Angel M. Grimm
Treasurer ...........................................................................................................................Pamela H. Webb
Sheriff...............................................................................................................................Robert W. Plecker
Superintendent of Schools............................................................................................................ Sue Hirsh
Director of Social Services.........................................................................................................Jason Miller
County Administrator ...........................................................................................................Michael Bender
iv
FINANCIAL SECTION
ROBINSON, FARMER, COX ASSOCIATES, PLLC
CPAs I CONSULTANTS Certified PublicAccountants
INDEPENDENT AUDITORS� REPORT
TO THE HONORABLE MEMBERS
OF THE BOARD OF SUPERVISORS
COUNTY OF BATH, VIRGINIA
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the discretely
presented component units, each major fund, and the aggregate remaining fund information of the
County of Bath, Virginia, as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the County's basic financial statements as listed in the
table of contents.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the financial position of the governmental activities, the
discretely presented component units, each major fund, and the aggregate remaining fund information of
the County of Bath, Virginia, as of and for the year ended June 30, 2022, and the respective changes in
financial position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
We did not audit the financial statements of the County of Bath, Virginia School Activity Funds, which
represent 45%, 90%, and 3%, respectively, of the assets, fund balances and revenues of the Component
Unit School Board as of June 30, 2022, and the respective changes in financial position, and where
applicable, cash flows thereof for the year then ended. Those statements were audited by other auditors
whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for
the County of Bath, Virginia School Activity Funds, is based solely on the report of other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the 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 Auditors' Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of County of Bath,
Virginia, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note 2 to the financial statements, in 2022, the County adopted new accounting
guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
1
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 County of Bath, Virginia'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.
Auditors'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 auditors' 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, Government Auditing Standards, and the Specifications for Audits of Counties, Cities, and
Towns 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, Government Auditing
Standards, and the Specifications forAudits of Counties, Cities, and Towns, 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 County of Bath, Virginia'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 County of Bath, Virginia'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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information, and schedules related to pension and OPEB
funding as listed in the table of contents 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. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
2
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
The budgetary comparison information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise County of Bath, Virginia's basic financial statements. The accompanying combining and
individual fund financial statements and schedules and schedule of expenditures of federal awards, as
required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional
analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the combining and individual fund financial statements and
schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 31,
2022, on our consideration of County of Bath, Virginia'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 County of Bath, Virginia'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 County of Bath, Virginia's internal control over financial reporting and
compliance.
�obinsan� �r,,ao.�-, Cox �ssQ�a�'r,s
Staunton, Virginia
December 31, 2022
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following is a narrative overview and analysis of the financial activities of the County of Bath,
Virginia for the fiscal year ended June 30, 2022.
Financial Highlights
Government-Wide Financial Statements
The assets and deferred outflows of the primary government of County of Bath, Virginia exceeded its
liabilities and deferred inflows at the close of the most recent fiscal year by $10,887,383. Of this
amount, $6,209,531 was unrestricted (a decrease of $617,266 from the previous fiscal year) and may
be used to meet the government's ongoing obligations to creditors and citizens. Of the net position,
there is $3,120,128 invested in capital assets, net of related debt (an increase of $1,280,923 from the
previous fiscal year), and $1,557,724 restricted (an increase of $1,085,125 from the previous fiscal
year). The School Board's net position was $5,433,903 of which there was an unrestricted deficit in the
amount of ($7,462,679). The Service Authority's net position was $6,335,583, of which there was an
unrestricted deficit of ($271,272). The Economic Development Authority's net position was $434,912,
of which there was an unrestricted net position of $250,763. Exhibit 1 contains the Statement of Net
Position for the Primary Government and the Component Units.
The Primary Government's overall net position increased by $1,748,782. The School Board's net
position increased by $1,996,791, the Economic Development Authority's net position increased by
$8,436, and the Service Authority's net position decreased by $412,400. (See Exhibit 2.)
Fund Financial Statements
At the end of the current fiscal year, the unassigned fund balance for the general fund was $6,441,663.
(See Exhibit 3.) This amount includes taxes and other accounts receivable collected within 60 days of
the fiscal year end reflected in the fiscal year 2021-22 budget. At the close of the current fiscal year,
the County's governmental funds reported combined ending fund balances of $10,247,488 of which
$6,441,663 is available for spending at the government's discretion (unassigned fund balance). (See
Exhibit 3.)
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Bath County's basic financial
statements. These statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains the required supplementary information in addition to the basic financial statements
themselves.
Local government accounting and financial reporting originally focused on funds designed to enhance
and demonstrate fiscal accountability. Now to be accompanied by government-wide financial
statements, the objective of operational accountability will also be met. These objectives will provide
financial statement users with justification from the government that public funds have been used to
comply with public decisions and whether operating objectives have been met efficiently and effectively
and can continue to be met in the future.
Government-Wide Financial Statements
Government-wide financial statements provide financial statement users with a general overview of
County finances. The statements include all assets, deferred outflows, liabilities, and deferred inflows
using the accrual basis of accounting. All current year revenue and expenses are taken into account
regardless of when cash is received or paid. Both the financial overview and accrual accounting factors
are used in the reporting of a private-sector business. Two financial statements are used to present
this information: 1) the statement of net position and 2) the statement of activities.
4
The statement of net position presents all the County's permanent accounts or assets, deferred
outflows, liabilities, deferred inflows, and net position. The difference between assets and deferred
outflows and liabilities and deferred inflows is reported as net position. Increases or decreases in net
position may serve as a useful indicator of whether the financial position of the County is improving or
deteriorating. Other non-financial factors will also need to be considered to determine the overall
financial position of the County.
The statement of activities presents information showing how the government's net position changed
during the fiscal year. The statement is focused on the gross and net cost of various government
functions that are supported by general tax and other revenue. The statement of activities presents
expenses before revenues, emphasizing that in governments, revenues are generated for the express
purpose of providing services rather than as an end in themselves.
Both government-wide financial statements separate government activities and business-type activities
of the County. The primary sources of funding for government activities are taxes and
intergovernmental revenues. Government activities include general government administration, judicial
administration, public safety, public works, health and welfare, parks, recreation, cultural, and
community development. Business-type activities recover all or a significant portion of their costs
through user fees and charges. The County currently presents the Bath County Public Service
Authority as a component unit that is classified as a business-type activity.
The government-wide financial statements include, in addition to the primary government or County,
three component units: 1) the Bath County School Board, 2) the Bath County Economic Development
Authority, and 3) the Bath County Public Service Authority. Although the component units are legally
separate entities, the County is accountable or financially accountable for them. A primary government
is accountable for an organization if the primary government appoints a majority of the organization's
governing body. A primary government is financially accountable if the government is able to impose
its will on the organization or the organization is capable of imposing specific financial burdens on the
primary government. For example, the primary government may approve debt issuances, rate
structures and/or provide significant operational funding of the component unit.
Fund Financial Statements
Only major or significant funds are presented in separate columns of the fund financial statements. A
fund is a group of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate
compliance with finance-related legal requirements. The County's funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions, or services, reported as
governmental activities in the government-wide financial statements. Whereas, the government-wide
financial statements are prepared on the accrual basis of accounting, the governmental fund financial
statements are prepared on the modified accrual basis of accounting. The focus of modified accrual
reporting is on near-term inflows and outflows of financial resources and the balance of financial
resources available at the end of the fiscal year. Since the governmental funds focus is narrower than
that of the government-wide financial statements a reconciliation between the two methods is provided
following the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances.
Proprietary Funds
There are two types of proprietary funds: enterprise funds, which are established to account for the
delivery of goods and services to the general public and internal service funds, which account for the
delivery of goods and services to other departments or agencies of the government. Proprietary funds
use the accrual basis of accounting, similarly to private sector business.
5
Fiduciary Funds
Fiduciary funds account for assets held by the government as a trustee or agent for another
organization or individual. The County is responsible for ensuring that the assets reported in these
funds are used for their intended purposes. Fiduciary funds are not reflected in the government-wide
financial statements because the funds are not available to support the County's own activities.
Notes to the financial statements
The notes provide additional information that is needed to fully understand the data provided in the
government-wide and fund financial statements.
Government-Wide Financial Analvsis
As previously noted, net position may serve as a useful indicator of a government's financial position.
For the County of Bath, assets and deferred outflows exceeded liabilities and deferred inflows by
$10,887,383 at the end of the fiscal year.
The County's net position is divided into three categories: 1) net investment in capital assets; 2)
restricted; and 3) unrestricted.
Statement of Net Position
J u ne 30, 2022 a nd 2021
Governmental Activities
2022 2021
Current and other assets $ 11,552,369 $ 11,057,989
Capital assets 3,149,708 2,904,205
Total assets $ 14,702,077 $ 13,962,194
Deferred Outflows of Resources $ 1,036,567 $ 1,222,694
Long-term liabilities $ 1,620,647 $ 4,775,296
Other liabilities 1,024,249 519,085
Totalliabilities $ 2,644,896 $ 5,294,381
Deferred Inflows of Resources $ 2,206,365 $ 751,906
Net in�estment in capital assets $ 3,120,128 $ 1,839,205
Restricted 1,557,724 472,599
Unrestricted 6,209,531 6,826,797
Total net position $ 10,887,383 $ 9,138,601
For the County, investment in capital assets (i.e., land, buildings, and machinery and equipment), net of
related debt used to acquire those assets that is still outstanding, represents 28.66% of total net
position. The County uses these capital assets to provide services to citizens; therefore, these assets
are not available for future spending. Although the County's investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Restricted net position of $1,557,724, representing 14.31% of total net position is subject to external
restrictions and must be used for economic development, opioid abatement, or employee pension and
OPEB plans.
The remaining balance of unrestricted net position, which is $6,209,531 or 57.03°/o percent of total net
position, may be used to meet government's ongoing obligations to citizens and creditors.
The government's net position increased by $1,748,782 during the current fiscal year, compared to an
increase of$49,948 in FY 2021.
6
Governmental Activities
Governmental activities increased the County's net position by $1,748,782. Key elements of this
increase are as follows:
Statement of Activities
June 30, 2022 and 2021
Governmental Activities
2022 2021
Re�enues:
Program revenues:
Charges for services $ 281,436 $ 173,036
Operating grants and contributions 2,022,606 2,891,799
Capital grants and contributions 59,103 63,963
General revenues:
General property taxes 12,199,771 12,410,737
Other local taxes 3,797,647 2,667,541
Use of money and property 29,494 25,159
Miscellaneous 145,639 84,236
Grants and contributions not restricted to
specific programs 584,779 535,267
Total rev�enues $ 19,120,475 $ 18,851,738
Expenses:
General go�ernment $ 1,316,574 $ 1,303,908
Judicial administration 498,534 483,149
Public safety 3,222,736 2,883,198
Public works 1,299,694 1,303,686
Health and welfare 1,167,089 1,308,558
Education 8,632,878 7,536,411
Parks, recreation, and cultural 561,003 488,701
Community de�lopment 514,812 3,309,890
Nondepartmental 132,495 132,639
Interest on long-term debt 25,878 51,650
Total expenses $ 17,371,693 $ 18,801,790
Increase (decrease) in net position $ 1,748,782 $ 49,948
Beginning net position 9,138,601 9,088,653
Ending net position $ 10,887,383 $ 9,138,601
Total revenues increased by $268,737 from fiscal year 2021 to 2022. This change is primarily
attributable to
• a decrease in operating grants and contributions of $869,193, mostly due to reporting $968,395
in revenue of Coronavirus Pandemic Relief funds received under the CARES Act in 2021
compared to $22,607 in 2022. There was an overall increase across all state Compensation
Board funding categories of $114,414 from 2021 to 2022. There was a decrease in Children's
Services Act Program operating grant revenue of $41,131 when comparing 2021 to 2022.
There was an increase in Virginia Public Assistance combined state and federal funding of
$59,443 from 2021 to 2022
• A decrease in general property taxes of $210,966 due primarily to a decrease in real and
personal public service corporation tax revenue of $246,969, partially offset by increases in
other property tax revenue categories from 2021 to 2022.
7
• a net increase in other local taxes of $1,130,106, primarily due to an increase in regular hotel
and motel room taxes of $283,265, an increase in historic lodging establishment transient
occupancy tax of $363,176, an increase in restaurant food taxes of $212,601, and an increase
in local sales tax of$259,065.
• An increase in revenue from the use of money and property of $4,335, due to increased
investment returns, and
• An increase in charges for services revenue of $108,400, mainly due to an increase in permits
and other licenses of$86,723 over the prior year.
Total expenses decreased by ($1,430,097) from fiscal year 2021 to 2022. Some of the significant
factors affecting this net decrease are:
• an increase in general government expenses of $12,666, due primarily to professional services
paid for reassessment of county property of $108,626; a reduction in COVID CARES Act
Funding expenses of$70,825; and a reduction in Electoral CARES Act COVID Expenses.
• an increase in judicial administration expenses of $15,385, mainly due to normal fluctuations in
salary and benefit costs, including adjustments for pension and OPEB, as compared to prior
year.
• an increase in public safety expenses of $339,538, due in part to the contribution of air pack
cylinders to the volunteer fire departments with cost of $190,376; contributions to the volunteer
fire and rescue squad departments of $41,772, including payments toward debt service, which
exceeded prior year contributions. There were increased costs of participating in the Regional
Jail of $81,508; and normal fluctuations in salary and benefit costs, including adjustments for
pension and OPEB, as compared to prior year.
• a decrease in public works expenses of ($3,992), mainly attributable to increases in solid waste
disposal and trash pickup service costs being offset with reductions in solid waste management
and recycling costs.
• a decrease in health and welfare expenses of ($141,469), attributable primarily to the reduction
in Children's Services Act program expenses of($106,909) as compared to the previous year.
• an increase in education expense of $1,096,467. This increase over prior year expenses is
attributable to additional $109,789 funding of School operations, an additional $155,000 funding
of Cafeteria operations, the funding of the BCHS Baseball Field at a cost of $723,444, and
funding BCHS Fuel Tanks at a cost of$108,234.
• an increase in parks, recreation, and cultural expense of $72,302, mainly associated with an
increase in salaries and benefits of $17,422 and an increase in the Wings & Wheels program of
$16,244, and an increase in costs of umpires and officials, recreation supplies, senior
operations, and special programs of$34,063, as compared to the prior year.
• a decrease in community development expense of ($2,795,078). This was due in part to the
payment to the EDA of $396,216 of federal CARES Act funds for payment to qualifying local
businesses and $409,500 expended through the Planning department for Broadband CARES
Act grant funding. There were $39,254 less in expenses of the Lodging Marketing Fund, and
there were $50,010 less in expenses of the Lodging Capital Fund as compared to the prior year.
The most significant decrease was attributable to the EDA Economic Incentive Grant Program
where accumulated historic lodging establishment transient occupancy tax was passed through
to the EDA in 2021.
8
The chart below provides a visual analysis of the sources of revenue by percentage for the County for
the year ended June 30, 2022.
Sources of Revenue of Governmental Activities for Fiscal Year 2022
Other local ta�s
19.9%
- -- - -- Use of money&property
0.2%
`� Grants&contributions
Publicservice corporation �! \ not restricted to specific
taxes � programs
36.9% 3.1%
N�....
��.-�� _- _ Other general revenues
�1 — � -- -----1 0.8%
j j��------- �
�
j Charges for services
1.5%
Operating grants&
contributions
10.6%
Capital grants
0.3%
General property taxes,
excluding psc
26.9%
Similarly, the following chart provides an analysis of the expenses of the Governmental Activities by
major functional category for the year ended June 30, 2022:
Total Functional Expenses of Governmental Activities for Fiscal Year 2022
Community
Parks, recreation and development Nondepartmental
0
cultural 2.960�0 .7 0
3.23% Interest on long-term
____---- — ---,-__ __ debt
- r' I'_ 0.15%
+ :
/,i� General government
'� r' 7.58%
i .•
r
I �, �,r'
/, j/.�` ti Judicial
Education� ! � administration
49.70% I 2.87%
+ Public safety
� 18.55%
�
Publicworks
7.48°/a
Health and welfare
6.72%
9
Financial Analysis of the Government's Funds
The County uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The financial statements of the governmental funds serve to provide information on near-term inflows,
outflows, and balances of financial resources. Such information is useful in assessing the County's
financing requirements. Unassigned fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year.
At the end of the fiscal year, the County's governmental funds reported combined ending fund balances
of $10,247,488, an increase of $357,184 from the prior year. Approximately, 62.86 percent of this total
amount constitutes the unassigned fund balance, which is available for spending at the government's
discretion. The remainder of the fund balance is reserved to indicate that it is not available for new
spending because it is earmarked.
The general fund is the chief operating fund of the County. As of June 30, 2022, total fund balance of
the general fund was $7,221,017 of which $6,441,663 was unassigned. As a measure of the general
fund's liquidity, it may be useful to compare both the unassigned fund balance and total fund balance to
total general fund expenditures. The unassigned fund balance represents 36.17 percent of total general
fund expenditures, which includes transfers to the School Board component unit of $7,611,811. Total
general fund balance represents 40.54 percent of total general fund expenditures.
The fund balance of the County's general fund decreased by $939,582 during the current fiscal year as
compared to a decrease of$500,511 in fiscal 2021.
Fiscal 2022 expenditures unrelated to debt service increased $1,505,421 from fiscal 2021.
Departmental fluctuations in expenditures as compared to the prior year are as follows:
• $157,126 increase in General Government Administration
• $49,470 increase in Judicial Administration
• $571,869 increase in Public Safety
• $45,128 decrease in Public Works
• $3.196 increase in Health and Welfare
• $81,149 increase in Education
• $70,737 increase in Parks, Recreation, and Cultural
• $763,437 decrease in Community Development
• $144 decrease in Nondepartmental
• $1,380,583 increase in Capital Projects
Most of the fluctuations in fund expenditures correlate to the details noted above in the government-
wide analysis of expenses by function.
Total general fund revenues in fiscal year 2022 decreased by $45,607 as compared to fiscal year 2021,
or a .27% decrease. Comparisons to prior year by major revenue category are as follows:
• $43,011 decrease in General Property Taxes
• $626,362 increase in Other Local Taxes
• $87,009 increase in Permits, Privilege Fees, and Licenses
• $491 decrease in Fines and Forfeitures
• $4,335 increase in Revenue from the Use of Money and Property
• $21,882 increase in Charges for Services
• $59,525 increase in Miscellaneous Revenue
• $59,318 increase in Recovered Costs
• $125,147 increase in State Funding
• $985,683 decrease in Federal Funding
Details of these fluctuations correlate to the increases in revenues on the government-wide basis as
noted above.
10
Proprietary Funds
The County's proprietary funds provide the same type of information found in the government-wide
financial statements, only in more detail. Total net position of the component unit, Bath County Public
Service Authority, at the end of the fiscal year was $6,335,583. Additional financial information for the
Bath County Public Service Authority for the year ended June 30, 2022 can be found in Exhibits 40-42
of the accompanying financial statements.
General Fund Budgetary Highlights
The general fund's original budgeted appropriations amounted to $17,995,313, the final amended
general fund budget was $19,290,085 representing an increase of $1,294,772, or 7.2 percent of the
original general fund budget. Notable amendments to the budget are as follows:
• Increase in County Administrator budget of $10,363, attributable to increase in Professional
Services budget.
• Increase in Electoral Board budget of$11,100 due to increase in capital outlay.
• Increase in Clerk of circuit court budget of $20,890 due to increase in capital outlay of $14,431
and compensation of$6,000.
• Increase in Sheriff budget of $83,990 mainly attributable to increased salary and fringes of
$29,736, courthouse security fees expenditure of$13,425, maintenance costs of$10,594, crime
prevention and special programs costs of $10,935, and capital outlay of $17,400, offset by
decrease in USFS contract supplement of$ $3,900.
• Increase in County/City operated institutions (regional jail) budget of$70,542.
• Increase in Emergency communications budget of $42,427, due to an increase in salaries and
fringes budgeted of$9,689, and an increase in radios and repairs costs budgeted of$32,540.
• Increase in Emergency management budget of $160,375, due to increase in capital outlay for
airpacks/cylinders contributed to volunteer agencies.
• Decrease in Buildings and Grounds of $350,000, attributable to reduction in capital outlay
budget.
• Increase in Parks and Recreation budget of $23,578 attributable to maintenance and special
programs and events.
• Increase in Planning budget of$6,730 due to the budgeted expenditure of program income.
• Decrease in Miscellaneous Expenditure budget of $79,652 attributable to original contingencies
budgeted amount being redistributed to other departments based on need throughout the year.
• Increase in Capital Projects budget of $1,286,232, due to appropriation for the following
additional projects:
o BCHS Baseball Field, $704,180
o Courthouse Columns, $582,052
Overall, total General Fund actual expenses amounted to $17,810,421, which were below both the
adopted and amended budgets in total.
11
Caaital Asset and Debt Administration
Capital Assets
The County's investment in capital assets for its governmental activities as of June 30, 2022 is
$3,149,708 (net of accumulated depreciation) and is an increase of $245,503 from the previous fiscal
year. This investment in capital assets includes land, buildings and improvements, machinery and
equipment, and construction in progress. The most significant asset additions for fiscal year 2022 were
the major reconstruction of the courthouse columns, three Sheriff's office vehicles, a precinct scanner
and tabulator and voting terminal software, and pavilion camera system.
Summary of Capital Assets for Governmental Activities
(net of depreciation)
As of June 30, 2022 and 2021
Go�rnmental Activities
2022 2021
Land $ 634,478 $ 634,478
Buildings and improvements 1,990,128 1,661,374
Machinery and equipment 403,645 475,592
Construction in progress 91,970 132,761
Lease assets 29,487 -
Total $ 3,149,708 $ 2,904,205
Additional information on the County's capital assets can be found at Note 18 of the notes to the
financial statements.
Lonq-term debt
At the end of the fiscal year the County had the following outstanding debt:
Summary of Outstanding Debt
For the Year Ended June 30, 2022 and 2021
Governmental Activities
2022 2021
Rev�enue bonds $ - $ 1,065,000
Net OPEB liabilities (Notes 10-16)* 429,043 488,912
Lease liabilities 29,580 -
Compensated absences 150,111 158,711
Net pension liability 1,011,913 3,062,673
Total $ 1,620,647 $ 4,775,296
All bonded debt reported by the Discretely Presented Component Unit - School Board, has been
assumed by the Primary Government as required by Section 15.2-1800.1, Code of Virqinia, 1950, as
amended. There most significant changes in debt activity for the current fiscal year were the payoff of
the Series 2012 refunding public improvement bonds with a final principal payoff of$1,065,000, and the
decrease in net pension liability of $2,050,760 as compared to prior year and based on actuarial
calculations provided by the Virginia Retirement System.
The Other Post Employment Benefit liability is an indebtedness pursuant to GASB Statement No.75 as
discussed in detail in Notes 10-16. On June 30, 2022, the County's net pension liability and OPEB
obligation represent 62.44% and 26.47% of the County's total outstanding debt, respectively.
12
Much more detail on the Pension Plan of the County can be found in Note 9 of these financial
statements. Additional information on the County's long-term debt can be found in Note 8 of the notes
to the financial statements.
The lease liabilities are reported as long-term debt pursuant to GASB 87 for the first time in FY2022.
Additional information on the lease liabilities can also be found in Note 8.
Economic Factors and Next Year's Budgets and Rates
The unemployment rate for the County as of June 30, 2022 was 2.6 percent, which was a decrease
from the prior year rate of 4.9 percent. This compares favorably to both the state's average
unemployment rate of 2.8 percent and the national average rate of 3.6 percent for the same fiscal
period (data from U.S. Bureau of Labor Statistics). The decrease in unemployment rates compared to
the prior year reflect the toll the Coronavirus Pandemic continued to take on the tourism industry in
Bath County in FY21.
Sales tax, meals tax and transient occupancy taxes have made a remarkable comeback as government
restrictions became less restrictive and tourism and travel continued to pick up as the impact of the
Coronavirus Pandemic receded.
Real property taxes on public service corporations have long been the single highest source of revenue
for the County. A major drop in the revenue source after the general property reassessment has
required a greater use of reserves and the consideration of budget cuts and/or future tax increases in
2023 to balance the upcoming FY2024 budget.
Omni Resorts is nearing completion of their $100+ million renovation of the Omni Homestead. The
reopening of the historic Warm Springs Pools following completion of a 14-month, $4 million
rehabilitation is expected to increase visitors "to take the waters". As a cornerstone of the local
economy, this investment by Omni Resorts portends Bath County remaining a leader in the tourism
industry for the foreseeable future.
Bath County, along with neighboring Highland County, expect to have full broadband coverage by mid-
2023 as a result of major state grant funding provided by the Virginia Telecommunications Initiative and
federal funds provided by the American Recovery Plan Act. Access to broadband will help Bath County
meet the technology needs of existing and future businesses, education, and healthcare.
During fiscal year 2022, the unassigned fund balance in the general fund decreased by $746,785 (from
$7,188,448 to $6,441,663). Nonspendable, committed, and assigned fund balances decreased by
$192,797 (from $972,151 to $779,354).
R�e uests for Information
This financial report is designed to provide readers with a general overview of the County of Bath's
finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed the Office of the County Administrator, County of Bath, Post
Office Box 309, Warm Springs, Virginia 24484.
13
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
County of Bath,Virginia Exhibit 1
Statement of Net Position
June 30,2022
Primary
Government Component Units
Economic
Governmental School Development Service
Activities Board Authority Authority
ASSETS
Cash and cash equivalents $ 10,094,852 $ 958,032 $ 252,326 $ 3,618,798
Investments - 683,473 - -
Receivables(net of allowance for uncollectibles):
Taxes receivable 328,707 - - -
Accounts receivable 377,843 - - 118,317
Notes receivable 46,990 - - -
Due from component unit 233,488 - - -
Due from other governmental units 398,880 207,259 - -
Inventories - 14,073 - -
Prepaid items 70,783 246,786 - -
Restricted assets:
Cash and cash equivalents - - - 50,064
Net pension asset - 506,540 - -
Net OPEB asset 826 2,225 - 115
Capital assets(net of accumulated depreciation):
Land and land improvements 634,478 238,282 42,799 116,187
Buildings and improvements 1,990,128 11,290,229 141,350 -
Machinery and equipment 403,645 1,555,606 - 67,005
Utility plant in service - - - 6,676,617
Construction in progress 91,970 803,134 - 56,888
Lease assets-equipment 29,487 24,420 - -
Total assets $ 14,702,077 $ 16,530,059 $ 436,475 $ 10,703,991
DEFERRED OUTFLOWS OF RESOURCES
Pension related items $ 960,408 $ 1,548,617 $ - $ 130,371
OPEB related items 76,159 239,917 - 6,361
Total deferred outflows of resources $ 1,036,567 $ 1,788,534 $ - $ 136,732
LIABILITIES
Accounts payable $ 244,073 $ - $ 1,563 $ 58,645
Accrued payroll - 695,650 - -
Customers'deposits - - - 42,689
Accrued interest payable 18 27 - -
Due to primary government - 233,488 - -
Unearned revenue 780,158 134,500 - 3,662,574
Long-term liabilities:
Due within one year 67,108 178,347 - 24,697
Due in more than one year 1,553,539 6,944,706 - 470,957
Totalliabilities $ 2,644,896 $ 8,186,718 $ 1,563 $ 4,259,562
DEFERRED INFLOWS OF RESOURCES
Deferred revenue-property taxes $ 26,036 $ - $ - $ -
Pension related items 1,694,384 4,021,460 - 236,761
OPEB related items 485,945 676,512 - 8,817
Total deferred inflows of resources $ 2,206,365 $ 4,697,972 $ - $ 245,578
NET POSITION
Net investment in capital assets $ 3,120,128 $ 12,387,817 $ 184,149 $ 6,599,365
Restricted-
Economic development 1,513,583 - - -
Opioid abatement 43,315 - - -
Employee pension and OPEB plans 826 508,765 115
Debt service reserve fund - - - 7,375
Unrestricted (deficit) 6,209,531 (7,462,679) 250,763 (271,272)
Total net position $ 10,887,383 $ 5,433,903 $ 434,912 $ 6,335,583
The notes to the financial statements are an integral part of this statement.
14
THIS PAGE LEFT BLANK INTENTIONALLY
County of Bath,Virginia
Statement of Activities
Year Ended June 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
PRIMARY GOVERNMENT:
Governmental activities:
General government administration $ 1,316,574 $ 21,035 $ 229,299 $ -
Judicial administration 498,534 45,175 298,750 -
Public safety 3,222,736 192,541 627,321 59,103
Publicworks 1,299,694 21,749 7,981 -
Health and welfare 1,167,089 - 711,223 -
Education 8,632,878 - - -
Parks, recreation, and cultural 561,003 936 - -
Community development 514,812 - 148,032 -
Nondepartmental 132,495 - - -
Interest on long-term debt 25,878 - - -
Total governmental activities $ 17,371,693 $ 281,436 $ 2,022,606 $ 59,103
COMPONENT UNITS:
School Board $ 9,452,555 $ 24,662 $ 3,303,290 $ -
Economic Development Authority 43,302 - 15,000 -
Service Authority 1,710,623 1,295,547 - -
Total component units $ 11,206,480 $ 1,320,209 $ 3,318,290 $ -
General revenues:
General property taxes
Other local taxes
Local sales and use taxes
Restaurant food tax
Motor vehicle licenses taxes
Taxes on recordation and wills
Bank stock taxes
Hotel and motel room taxes
Other local taxes
Unrestricted revenues from use of money and property
Miscellaneous
Grants and contributions not restricted to specific programs
Total general revenues
Change in net position
Net position -beginning
Net position -ending
The notes to the financial statements are an integral part of this statement.
15
Exhibit 2
Net(Expense) Revenue and
Changes in Net Position
Primary
Government Component Units
Economic
Governmental School Development Service
Activities Board Authority Authority
$ (1,066,240) $ - $ - $ -
(154,609) - - -
(2,343,771) - - -
(1,269,964) - - -
(455,866) - - -
(8,632,878) - - -
(560,067) - - -
(366,780) - - -
(132,495) - - -
(25,878) - - -
$ (15,008,548) $ - $ - $ -
$ - $ (6,124,603) $ - $ -
- - (28,302) -
- - - (415,076)
$ - $ (6,124,603) $ (28,302) $ (415,076)
$ 12,199,771 $ - $ - $ -
942,980 - - -
685,748 - - -
49,776 - - -
81,663 - - -
48,896 - - -
1,964,091 - - -
24,493 - - -
29,494 - 36,738 2,676
145,639 325,943 - -
584,779 7,795,451 - -
$ 16,757,330 $ 8,121,394 $ 36,738 $ 2,676
$ 1,748,782 $ 1,996,791 $ 8,436 $ (412,400)
9,138,601 3,437,112 426,476 6,747,983
$ 10,887,383 $ 5,433,903 $ 434,912 $ 6,335,583
16
FUND FINANCIAL STATEMENTS
County of Bath,Virginia Exhibit 3
Balance Sheet
Governmental Funds
June 30,2022
Lodging
Tax Special
Marketing/ Lodging Other
Capital Tax Governmental
General Fund Fund Funds Total
ASSETS
Cash and cash equivalents $ 7,204,687 $ 1,477,052 $ 1,413,113 $ - $ 10,094,852
Receivables(net of allowance for uncollectibles):
Taxes receivable 328,707 - - - 328,707
Accounts receivable 231,516 45,857 100,470 - 377,843
Notes receivable 46,990 - - - 46,990
Due from other funds 56,982 - - - 56,982
Due from component unit 233,488 - - - 233,488
Due from other governmental units 340,590 - - 58,290 398,880
Prepaid items 70,783 - - - 70,783
Total assets $ 8,513,743 $ 1,522,909 $ 1,513,583 $ 58,290 $ 11,608,525
LIABILITIES
Accounts payable $ 232,744 $ 10,021 $ - $ 1,308 $ 244,073
Due to other funds - - - 56,982 56,982
Unearned revenue 780,158 - - - 780,158
Totalliabilities $ 1,012,902 $ 10,021 $ - $ 58,290 $ 1,081,213
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes $ 238,014 $ - $ - $ - $ 238,014
Unavailable revenue-opioid settlement 41,810 - - - 41,810
Total deferred inflows of resources $ 279,824 $ - $ - $ - $ 279,824
Fund balances:
Nonspendable:
Prepaid items $ 70,783 $ - $ - $ - $ 70,783
Advances to other funds 56,982 - - - 56,982
Restricted for:
Economic development - - 1,513,583 - 1,513,583
Opioid abatement 1,505 - - - 1,505
Committed:
Specialrevenuefunds - 1,512,888 - - 1,512,888
Assigned:
Sheriff's office special programs 89,358 - - - 89,358
Parks and recreation programs 14,613 - - - 14,613
Assessor services 20,374 - - - 20,374
County administration wage and benefits 15,311 - - - 15,311
Commissioner of revenue travel 3,300 - - - 3,300
Treasurer compensation 5,383 - - - 5,383
Equalization board compensation and travel 3,745 - - - 3,745
Transfer station solid waste disposal 15,000 - - - 15,000
Capital projects 483,000 - - - 483,000
Unassigned 6,441,663 - - - 6,441,663
Total fund balances $ 7,221,017 $ 1,512,888 $ 1,513,583 $ - $ 10,247,488
Total liabilities,deferred inflows
of resources,and fund balances $ 8,513,743 $ 1,522,909 $ 1,513,583 $ 58,290 $ 11,608,525
The notes to the financial statements are an integral part of this statement.
17
County of Bath,Virginia Exhibit 4
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances per Exhibit 3-Balance Sheet-Governmental Funds $ 10,247,488
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
Land and land improvements $ 634,478
Buildings and improvements 1,990,128
Machinery and equipment 403,645
Construction in progress 91,970
Lease assets 29,487
3,149,708
Net OPEB asset is not an available resource and, therefore, is not reported in the funds.
Net OPEB asset $ 826
826
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are reported as unavailable revenue in the funds.
Unavailable revenue- property taxes $ 211,978
Unavailable revenue-opioid settlement 41,810
253,788
Deferred outflows of resources are not available to pay for current-period
expenditures and, therefore, are not reported in the funds.
Pension related items $ 960,408
OPEB related items 76,159
1,036,567
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the funds.
Net OPEB liabilities $ (429,043)
Net pension liability (1,011,913)
Compensated absences (150,111)
Lease liabilities (29,580)
Accrued interest payable (18)
(1,620,665)
Deferred inflows of resources are not due and payable in the current period and,
therefore, are not reported in the funds.
Pension related items $ (1,694,384)
OPEB related items (485,945)
(2,180,329)
Net position of governmental activities $ 10,887,383
The notes to the financial statements are an integral part of this statement.
18
County of Bath,Virginia Exhibit 5
Statement of Revenues, Expenditures,and Changes in Fund Balances
Governmental Funds
Year Ended June 30,2022
Lodging
Tax Special
Marketing/ Lodging Other
Capital Taz Governmental
General Fund Fund Funds Total
REVENUES
General property taxes $ 12,291,027 $ - $ - $ - $ 12,291,027
Other local taxes 2,296,145 460,518 1,040,984 - 3,797,647
Permits, privilege fees,
and regulatory licenses 184,391 - - - 184,391
Fines and forfeitures 1,373 - - - 1,373
Revenue from the use of
money and property 29,494 - - - 29,494
Charges for services 95,672 - - - 95,672
Miscellaneous 143,687 1,376 - 576 145,639
Recovered costs 94,404 - - - 94,404
Intergovernmental:
Commonwealth 1,522,344 - - 303,888 1,826,232
Federal 391,111 - - 407,335 798,446
Total revenues $ 17,049,648 $ 461,894 $ 1,040,984 $ 711,799 $ 19,264,325
EXPENDITURES
Current:
General government administration $ 1,353,926 $ - $ - $ - $ 1,353,926
Judicial administration 505,102 - - - 505,102
Public safety 3,227,316 - - - 3,227,316
Publicworks 1,305,339 - - - 1,305,339
Health and welfare 293,283 - - 890,608 1,183,891
Education 7,617,560 - - - 7,617,560
Parks, recreation,and cultural 553,773 - - - 553,773
Community development 308,700 206,112 - - 514,812
Nondepartmental 132,495 - - - 132,495
Capital projects 1,421,374 - - - 1,421,374
Debt service:
Principal retirement 1,065,000 - - - 1,065,000
Interest and other fiscal charges 26,553 - - - 26,553
Total expenditures $ 17,810,421 $ 206,112 $ - $ 890,608 $ 18,907,141
Excess(deficiency)of revenues over
(under)expenditures $ (760,773) $ 255,782 $ 1,040,984 $ (178,809) $ 357,184
OTHER FINANCING SOURCES(USES)
Transfers in $ - $ - $ - $ 178,809 $ 178,809
Transfers out (178,809) - - - (178,809)
Total otherfinancing sources(uses) $ (178,809) $ - $ - $ 178,809 $ -
Net change in fund balances $ (939,582) $ 255,782 $ 1,040,984 $ - $ 357,184
Fund balances-beginning 8,160,599 1,257,106 472,599 - 9,890,304
Fundbalances-ending $ 7,221,017 $ 1,512,888 $ 1,513,583 $ - $ 10,247,488
The notes to the financial statements are an integral part of this statement.
19
County of Bath, Virginia Exhibit 6
Reconciliation of Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
Year Ended June 30, 2022
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances-total governmental funds $ 357,184
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 and reported as depreciation expense. This is the amount by which the capital
outlays exceeded depreciation in the current period.
Capital outlays $ 707,706
Depreciation /amortization expense (308,752)
Net allocation of debt financed school assets based on current year repayments (183,640)
215,314
The net effect of various miscellaneous transactions involving capital assets (I.e.,
sales, trade-ins, and donations) is to decrease net position. (28,786)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. This amount represents unavailable
revenue.
Property taxes $ (91,256)
Opioid settlement 41,810
(49,446)
The issuance of long-term debt (e.g. bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds report
the effect of premiums, discounts, and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the statement of activities. This amount
is the net effect of these differences in the treatment of long-term debt and related
items.
Principal repayments - revenue bond $ 1,065,000
Principal repayments - leases 29,395
Accrued interest 980
1,095,375
Some expenses 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.
Change in compensated absences $ 8,600
Pension expense 243,762
OPEB expense (93,221)
159,141
Change in net position of governmental activities $ 1,748,782
The notes to the financial statements are an integral part of this statement.
20
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JuNE 30, 2022
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The financial statements of the County conform to generally accepted accounting principles (GAAP)
applicable to governmental units promulgated by the Governmental Accounting Standards Board
(GASB). The following is a summary of the more significant policies:
A. Financial Reporting Entity
The County of Bath, Virginia (government) is a municipal corporation governed by an elected five-
member Board of Supervisors. The accompanying financial statements present the government and
its component units, entities for which the government is considered to be financially accountable.
Each discretely presented component unit is reported in a separate column in the government-wide
financial statements (see note below for description) to emphasize that it is both legally and
substantively separate from the government.
Discretely Presented Component Units - The component unit columns in the financial statements
include the financial data of the County's discretely presented component units. They are reported
in a separate column to emphasize that they are legally separate from the County.
The Bath County School Board operates the elementary and secondary public schools in the
County. School Board members are popularly elected. The School Board is fiscally dependent
upon the County because the County approves all debt issuances of the School Board and provides
significant funding to operate the public schools since the School Board does not have separate
taxing powers. The Bath County School Board does not prepare separate financial statements.
The Bath County Service Authority has been determined to be a component unit of Bath County in
accordance with Governmental Accounting Standards Board Statement 14. The Authority is a
legally separate organization whose Board members are appointed by the Bath County Board of
Supervisors. Since the Board of Supervisors is able to impose its will on the Authority, the Authority
is a component unit of Bath County. The Bath County Service Authority does not prepare separate
financial statements.
The Economic Development Authority of Bath County, Virginia has been determined to be a
component unit of Bath County because the Authority's primary use of funds is to provide for
economic development of the County, thereby benefiting the County even though it does not provide
services directly to the County. The Economic Development Authority of Bath County, Virginia does
prepare separate financial statements. Complete financial statements for the Authority may be
obtained by contacting Patrick Haynes at the Authority's administrative office at PO Box 13 Warm
Springs, VA 24484.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. 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. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially accountable.
21
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
B. Government-wide and fund financial statements (continued)
Statement of Net Position —The Statement of Net Position is designed to display financial position of
the primary government (governmental and business-type activities) and its discretely presented
component units. Governments will report all capital assets in the government-wide Statement of
Net Position and will report depreciation expenses — the cost of "using up" capital assets — in the
Statement of activities. The net position of a government will be broken down into three categories
1) net investment in capital assets; 2) restricted and 3) unrestricted.
Statement of Activities — The government-wide Statement of Activities reports expenses and
revenues in a format that focuses on the cost of each of the government's functions. The expense
of individual functions is compared to the revenues generated directly by the function (for instance,
through user charges or intergovernmental grants).
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are 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 governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
C. Measurement focus, basis of accounting, and financial statement presentation
The accompanying financial statements are prepared in accordance with pronouncements issued by
the Governmental Accounting Standards Board. The principles prescribed by GASB represent
generally accepted accounting principles applicable to governmental units.
The accounting and financial reporting treatment is determined by the applicable measurement
focus and basis of accounting. Measurement focus indicates the type of resources being measured
such as current financial resources or economic resources. The basis of accounting indicates the
timing of recognition in the financial statements of various kinds of transactions or events.
The government-wide, proprietary, and fiduciary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. 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.
22
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are when they have
been earned and 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 government considers revenues to be available if they are
collected within 60 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 principal and
interest expenditures on general long-term debt, including lease liabilities, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is
due. General capital asset acquisitions, including entering into contracts giving the government the
right to use lease assets, are reported as expenditures in the governmental funds. Issuance of long-
term debt and financing through leases are reported as other financing sources.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Accordingly, real and personal property taxes are recorded as revenues and
receivables when billed, net of allowances for uncollectible amounts. Property taxes not collected
within 60 days after year-end are reflected as unavailable revenues. Sales and utility taxes, which
are collected by the state or utilities and subsequently remitted to the County, are recognized as
revenues and receivables upon collection by the state or utility, which is generally in the month
preceding receipt by the County.
Licenses, permits, fines and rents are recorded as revenues when received. Intergovernmental
revenues, consisting primarily of federal, state and other grants for the purpose of funding specific
expenditures, are recognized when earned or at the time of the specific expenditure. Revenues
from general purpose grants are recognized in the period to which the grant applies. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
The government reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for and reports all
financial resources of the general government, except those required to be accounted for and
reported in another fund. The general fund includes the activities of the crime prevention, sheriff's
carryover, sheriff's forfeited, and recycling funds.
The special revenue fund accounts for and reports the proceeds of specific revenue sources that
are restricted or committed to expenditure for specified purposes other than debt service or capital
projects. Special revenue funds consist of the Lodging Tax — Marketing/Capital Fund and the
Special Lodging Tax Fund.
23
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
Additionally, the government reports the following fund types:
Special Revenue funds account for and report the proceeds of the specific revenue sources that
are restricted or committed to expenditure for specified purposes other than debt service or capital
projects. Comprehensive Services Act and Virginia Public Assistance funds are nonmajor special
revenue funds of the County.
Fiduciary funds (trust and custodial funds) account for assets held by the government in a trustee
capacity or custodian for individuals, private organizations, other governmental units, or other
funds. There are no fiduciary funds at June 30, 2022.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are other charges between the government's
water and sewer function and various other functions of the government. Elimination of these
charges would distort the direct costs and program revenues reported for the various functions
concerned.
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 nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating
revenues of the Authority enterprise fund are charges to customers for sales and services. The
Authority also recognizes as operating revenue the portion of tap fees intended to recover the cost
of connecting new customers to the system. Operating expenses for enterprise funds include the
cost of sales and services, administrative expense, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
1. Cash and cash equivalents
The government's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from the
date of acquisition. For purposes of the statement of cash flows, the government's proprietary
funds consider their demand deposits and all highly liquid investments with an original maturity
of three months or less when purchased to be cash equivalents.
External investment pools are measured at amortized cost. All other investments are reported
at fair value. The State Treasurer's Local Government Investment Pool operates in accordance
with appropriate state laws and regulations.
24
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
2. Receivables and payab/es
Activity between funds that is representative of lending/borrowing arrangements outstanding at
the end of the fiscal year is referred to as "due to/from other funds" (i.e., the current portion of
interfund loans). All other outstanding balances between funds are reported as "advances
to/from other funds" (i.e. the noncurrent portion of interfund loans). Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as internal balances.
Advances between funds, as reported in the fund financial statements, are offset by
nonspendable fund balance in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
3. Inventory
Inventory, consisting of cafeteria food items and supplies are stated at cost (first-in, first-out
method). Inventory is expensed as it is consumed.
4. Property Taxes
Real estate and personal property is assessed at its value on July 1 at which time taxes attach
as an enforceable lien. Real estate taxes are payable in two installments on June 5th and
December 5t". Personal property taxes are due and collectible annually on December 5th. The
County bills and collects its own property taxes.
5. Allowance for Uncollectible Accounts
The County calculates its allowance for uncollectible accounts using historical collection data
and, in certain cases, specific account analysis. The allowance amounted to approximately
$34,293 at June 30, 2022 and is comprised of uncollectible local taxes of the primary
government in the amount of $9,395 and uncollectible water and sewer accounts receivable of
the component unit— Service Authority in the amount of$24,898.
25
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
E. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
6. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
7. Restricted assets
Certain resources are classified as restricted assets on the balance sheet and are maintained in
separate bank accounts. At June 30, 2022, $7,375 was set aside for the repayment of the
component unit — Service Authority's enterprise fund revenue bonds and their use is limited by
applicable bond covenants. In addition, the component unit — Service Authority had $42,689 in
a bank account restricted for customer deposits.
8. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, water and sewer plant and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more
than $5,000 (amount not rounded) 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 are recorded at acquisition value at the date of donation.
As the County and Component Unit School Board constructs or acquires capital assets each
period, including infrastructure assets, they are capitalized and reported at historical cost
(except for intangible right-to-use lease assets (lease assets), the measurement of which is
discussed in more detail below). The reported value excludes normal maintenance and repairs,
which are amounts spent in relation to capital assets that do not increase the asset's capacity or
efficiency or increases its estimated useful life. Donated capital assets are recorded at
acquisition value at the date of donation. Acquisition value is the price that would be paid to
acquire an asset with equivalent service potential on the date of the donation. Intangible assets
follow the same capitalization policies as tangible capital assets and are reported with tangible
assets in the appropriate capital asset class.
Land and construction in progress are not depreciated. The other tangible and intangible
property, plant, equipment, lease assets, and infrastructure of the primary government, as well
as the component units, are depreciated/ amortized using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings and improvements 30-50
Machinery and equipment 5-15
Utility plant 40
Lease equipment 5
26
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
9. Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with expendable
available financial resources is reported as an expenditure and a fund liability of the
governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are
not expected to be liquidated with expendable available financial resources are reported in the
Statement of Net Position. No expenditure is reported for these amounts. No liability is
recorded for non-vesting accumulating rights to receive sick pay benefits. However, a liability is
recognized for that portion of accumulating sick leave benefits that it is estimated will be taken
as "terminal leave" prior to retirement. The County accrues salary-related payments associated
with the payment of compensated absences.
10. Leases
The County leases various assets requiring recognition. A lease is a contract that conveys
control of the right to use another entity's nonfinancial asset. Lease recognition does not apply
to short term leases, contracts that transfer ownership, leases of assets that are investments, or
certain regulated leases.
Lessee
The County recognizes lease liabilities and intangible right-to-use lease assets (lease assets)
with an initial value of $5,000, individually or in the aggregate in the government-wide financial
statements. At the commencement of the lease, the lease liability is measured at the present
value of payments expected to be made during the lease term (less any lease incentives). The
lease liability is reduced by the principal portion of payments made. The lease asset is
measured at the initial amount of the lease liability, plus any payments made to the lessor at or
before the commencement of the lease term and certain direct costs. The lease asset is
amortized over the shorter of the lease term or the useful life of the underlying asset.
Key estimates and judgements
Lease accounting includes estimates and judgements for determining the (1) rate used to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
• The County uses the interest rate stated in lease contracts. When the interest rate is not
provided or the implicit rate cannot be readily determined, the County uses its estimated
incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease and certain periods
covered by options to extend to reflect how long the lease is expected to be in effect, with
terms and conditions varying by the type of underlying asset.
• Fixed and certain variable payments as well as lease incentives and certain other
payments are included in the measurement of the lease liability.
27
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
11. Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, 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
effective interest method. Bonds payable are reported net of the applicable bond premium or
discount.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts 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.
12. Fund balance
The following classifications describe the relative strength of the spending constraints placed on
the purposes for which resources can be used:
■ Nonspendable fund balance — amounts that are either not in spendable form (such as
inventory and prepaids) or are legally or contractually required to be maintained intact (corpus
of a permanent fund);
■ Restricted fund balance — amounts that can be spent only for the specific purposes stipulated
by external resource providers such as grantors or enabling federal, state, or local legislation.
Restrictions may be changed or lifted only with the consent of the resource providers;
■ Committed fund balance — amounts that can be used only for the specific purposes
determined by the adoption of an ordinance committing fund balance for a specified purpose
by the Board of Supervisors prior to the end of the fiscal year. Once adopted, the limitation
imposed by the ordinance remains in place until the resources have been spent for the
specified purpose or the Board adopts another ordinance to remove or revise the limitation;
■ Assigned fund balance — amounts a government intends to use for a specific purpose but do
not meet the criteria to be classified as committed; intent can be expressed by the governing
body or by an official or body to which the governing body delegates the authority. Unlike
commitments, assignments general only exist temporarily. In other words, am additional
action does not normally have to be taken for the removal of an assessment. Conversely, as
discusses above, an additional action is essential to either remove or revise a commitment;
■ Unassigned fund balance — amounts that are available for any purpose; positive amounts are
only reported in the general fund. Additionally, any deficit fund balance within the other
governmental fund type is reported as unassigned.
28
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
12. Fund balance (continued)
When fund balance resources are available for a specific purpose in more than one
classification, it is the County's policy to use the most restrictive funds first in the following
order: restricted, committed, assigned, and unassigned as they are needed.
The County Board of Supervisors establishes (and modifies or rescinds) fund balance
commitments by passage of an ordinance. This is typically done through adoption and
amendment of the budget. A fund balance commitment, which does not lapse at year end, is
further indicated in the budget document as a designation or commitment of the fund (such as
for special incentives). Assigned fund balance is established by the Board of Supervisors
through adoption or amendment of the budget as intended for specific purpose (such as the
purchase of capital assets, construction, debt service, or for other purposes).
In the general fund, the County's policy is to maintain an unassigned fund balance to be used
for unanticipated emergencies of approximately 20% of the actual GAAP basis expenditures
and other financing sources and uses. If the unassigned fund balance falls below the
established 20% of GAAP basis expenditures minimum, during the annual budget adoption
process, a plan to replenish the unassigned fund balance to the target level over a period of not
more than three to five fiscal years.
13. Net Position
For government-wide reporting as well as in proprietary funds, the difference between assets
and deferred outflows of resources less liabilities and deferred inflows of resources is called net
position. Net position is comprised of three components: net investment in capital assets,
restricted, and unrestricted.
■ Net investment in capital assets consists of capital assets, net of accumulated depreciation
and reduced by outstanding balances of bonds, notes, and other debt that are attributable to
the acquisition, construction, or improvement of those assets. Deferred outflows of resources
and deferred inflows of resources that are attributable to the acquisition, construction, or
improvement of those assets or related debt are included in this component of net position.
■ Restricted net position consists of restricted assets reduced by liabilities and deferred inflows
of resources related to those assets. Assets are reported as restricted when constraints are
placed on asset use either by external parties or by law through constitutional provision or
enabling legislation.
■ Unrestricted net position is the net amount of the assets, deferred outflows of resources,
liabilities, and deferred inflows of resources that does not meet the definition of the two
preceding categories.
Sometimes the County will fund outlays for a particular purpose from both restricted (e.g.
restricted bond and grant proceeds) and unrestricted resources. In order to calculate the
amounts to report as restricted — net position and unrestricted — net position in the financial
statements, a flow assumption must be made about the order in which the resources are
considered to be applied. It is the County's policy to consider restricted — net position to have
been depleted before unrestricted — net position is applied.
29
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
14. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred
outflows of resources. Deferred outflows of resources represents a consumption of net that
applies to a future period(s) and so will not be recognized as an outflow of resources
(expenditure/expense) until then. The County has one item that qualifies for reporting in this
category. It is comprised of certain items related to pension and OPEB. For more detailed
information on this item, reference the related notes.
In addition to liabilities, the statement of financial position includes a separate section for
deferred inflows of resources. Deferred inflows of resources represents an acquisition of net
assets that applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The Primary Government has two types of items that qualify for
reporting in this category. Under a modified accrual basis of accounting, unavailable revenue
representing property taxes receivable is reported in the governmental funds balance sheet.
This amount is comprised of uncollected property taxes due prior to June 30, and amounts
prepaid on the 2nd half installments and is deferred and recognized as an inflow of resources in
the period that the amount becomes available. Under the accrual basis, amounts prepaid on the
2nd half installments are reported as deferred inflows of resources. In addition, certain items
related to pension, OPEB, the opioid settlement, and leases are reported as deferred inflows of
resources. For more detailed information on these items, reference the related notes.
15. Pensions
For purposes of ineasuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary
net position of the County's School Board's Retirement Plan and the additions to/deductions
from the County's and School Board's Retirement Plan's net fiduciary 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.
30
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
D. Assets, liabilities, deferred inflows/outflows of resources, and net position/fund balance
(continued)
16. Other Postemp/oyment Benefits (OPEB)
For purposes of ineasuring the net VRS related OPEB liabilities, deferred outflows of resources
and deferred inflows of resources related to the OPEB, and OPEB expense, information about
the fiduciary net position of the VRS GLI, HIC, Teacher HIC, VLDP, and Teacher VLDP OPEB
Plans and the additions to/deductions from the VRS OPEB Plans' net fiduciary position have
been determined on the same basis as they were reported by VRS. In addition, benefit
payments are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Medical, Dental, and Prescription Insurance— Pay as You Go Program
For purposes of ineasuring the total OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense have been determined based on an
actuarial valuation. Benefit payments are recognized when due and payable in accordance
with the benefit terms.
NOTE 2—ADOPTION OF ACCOUNTING PRINCIPLES:
The County implemented provisions of Governmental Accounting Standards Board Statement No. 87,
Leases during the fiscal year ended June 30, 2022. Statement No. 87, Leases requires recognition of
certain lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of the
contract. No restatement of beginning net position was required as a result of this implementation. Using
the facts and circumstances that existed at the beginning of year of implementation, the following
balances were recognized as of July 1, 2021 related to the leases:
Component
Governmental Unit School
Activities Board
Lessee activity:
Lease assets $ 58,975 $ 31,080
Lease liabilities $ 58,975 $ 31,080
31
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 3—STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY:
A. Budgetary Information
The following procedures are used by the County in establishing the budgetary data reflected in the
financial statements:
1. Prior to April 1, the County Administrator submits to the Board of Supervisors a proposed
operating and capital budget for the fiscal year commencing the following July 1. The operating
and capital budget includes proposed expenditures and the means of financing them. The
following Funds have legally adopted budgets: General Fund, Virginia Public Assistance Fund,
Lodging Tax Marketing and Capital Fund, School Operating Fund, and School Cafeteria Fund.
2. Public hearings are conducted to obtain citizen comments.
3. Prior to June 30, the budget is legally enacted through passage of an Appropriations Resolution.
4. The Appropriations Resolution places legal restrictions on expenditures at the fund level. The
appropriation for each department or category can be revised only by the Board of Supervisors.
The County Administrator is authorized to transfer budgeted amounts between general
government departments; however, the School Board is authorized to transfer budgeted amounts
within the school system's categories.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund and Special Revenue Funds (except the School fund). The School Fund is
integrated only at the level of legal adoption.
6. All budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP).
7. Appropriations lapse on June 30, for all County units. The County's practice is to appropriate
Capital Projects by Project. Several supplemental appropriations were necessary during this
fiscal year.
8. All budgetary data presented in the accompanying financial statements is the revised budget as
of June 30.
B. Excess of expenditures over appropriations
For the year ended June 30, 2022, the following fund incurred expenditures exceeding
appropriations:
Excess of Expenditures
Fund Function over Appropriations
General Debt Service $ 2,591
Total General Fund $ 2,591
School Operating Debt service $ 153,840
School Activity Funds School Activities 286,958
Total All Other Funds $ 440,798
C. Deficit fund equity
At June 30, 2022, there were no funds with deficit fund equity.
32
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 4—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 Virpinia. 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°/o to 130% of excess deposits.
Accordingly, all deposits are considered fully collateralized.
Investments
Statutes authorize the County 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 that has received at least two of the
following ratings: P-1 by Moody's Investors Service, Inc.; A-1 by Standard & Poor's; or F1 by Fitch
Ratings, Inc. (Section 2.2-4502), banker's acceptances, repurchase agreements, and the State
Treasurer's Local Government Investment Pool (LGIP).
Credit Risk of Debt Securities
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Generally, the County's investing activities are managed under the custody of the County Treasurer.
Investing is performed in accordance with investment policies adopted by the County Board of
Supervisors complying with state statutes. In accordance with the County's investment policy, County
funds may be invested in:
1. Certificates of deposits or other deposits of national banks located within the Commonwealth and
state- chartered banks under Commonwealth supervision provided such deposits are insured or
collateralized as provided by the Virginia Security for Public Deposits Act.
2. U.S. Treasury Bills (T-Bills).
3. Local Government Investment Pool (LGIP) administered by the Virginia Treasury Board.
The County's rated debt investments as of June 30, 2022 were rated by Standard and Poor's and/or an
equivalent national rating organization and the ratings are presented below using the Standard and
Poor's rating scale.
County's Rated Debt Investments' Values
Fair Quality
Rated Debt Investments Ratings
AAAm
Local Government Investment Pool $ 1,653,679
External Investment Pool
The fair value of the positions in the external investment pool is the same as the value of the pool shares.
As LGIP is not SEC registered, regulatory oversight of the pool rests with the Virginia State Treasury.
The LGIP is an amortized cost basis portfolio. There are no withdrawal limitations or restrictions
imposed on participants.
33
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 4—DEPOSITS AND INVESTMENTS: (CONTINUED)
Interest Rate Risk
All County investments must be in securities maturing within five years. Maturities of the County's
investments are as follows:
Investment Fair Value Maturity
Less than 1 year
Local Government Investment Pool $ 1,653,679 $ 1,653,679
School Activity Fund Investments
In October 2018, the School Activity Funds received donations from the Estate of Louise C. Welcher as
follows:
Bath County High School $ 388,286
Millboro Elementary School 194,143
Valley Elementary School 194,143
Total $ 776,572
These funds are restricted to be used for the purchase and/or rental of band instruments, uniforms, and
other band expenses.
In February 2020, these funds were moved into two brokerage accounts. Currently there are no formally
adopted investment policies regarding types of investments allowed and the related risks. Investments
are reported at cost basis due to these financial statements being presented on the basis of cash
receipts and cash disbursements.
Investments were as of June 30, 2022 were as follows:
Unrealized
Investment Type Cost Fair Value Gain (Loss)
Fixed income $ 382,424 $ 323,728 $ (58,696)
Equities 277,927 298,087 20,160
Exchange traded funds 23,122 19,558 (3,564)
Total $ 683,473 $ 641,373 $ (42,100)
Credit Risk: The fixed income investments were in five corporate bonds with Moody's ratings of A1 to A3
and S&P ratings of A to BBB+.
Concentration of Credit Risk: Individual securities representing more than five percent of total
investments were as follows:
Bond-13°/a
Bond-10°/a
Bond-13%
Bond-9%
Stock-5%
Interest Rate Risk: Interest rate risk is the risk that interest rate variations may adversely affect the fair
value of an investment. The bods held have the following maturity/callable dates:
Interest Maturity Callable
Rate Date Date
Bond 1 2.00% 12/22/2026 12/22/2022
Bond 2 2.80% 8/15/2029 5/15/2029
Bond 3 2.65% 6/26/2030 3/26/2030
Bond 4 1.25% 10/15/2030 7/15/2030
Bond 5 2.00% 9/16/2031 9/16/2023
34
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 5—DUE FROM OTHER GOVERNMENTAL UNITS:
The following amounts represent receivables from other governments at year-end:
Component
Primary Unit
Government School Board
Commonwealth of Virginia:
State sales taxes $ - $ 113,707
Local sales taxes 153,657 -
Communications Tax 13,194 -
Rolling Stock 13 -
Public assistance and welfare administration 16,780 -
Comprehensive Services Act funds 9,745 -
E-911 wireless 8,935 -
Shared expenses 120,104 -
Other 44,687 -
Federal Government:
Public assistance and welfare administration 31,765 -
Vocational Education - 7,495
School cafeteria - 86,057
Total $ 398,880 $ 207,259
NOTE 6—INTERFUND COMPONENT-UNIT OBLIGATIONS:
The following balances represent amounts due between funds at June 30, 2022:
Due to Due from
Primary Primary
Government/ Government/
Interfund Interfund Component Component
Fund Receivable Payable Unit Unit
Primary Government:
General Fund $ 56,982 $ - $ - $ 233,488
CSA Fund - 8,437 - -
VPA Fund - 48,545 - -
Total $ 56,982 $ 56,982 $ - $ 233,488
Component Unit-School Board:
School Fund $ - $ - $ 233,488 $ -
Total $ - $ - $ 233,488 $ -
The purpose of interfund obligations is to report the balance of local appropriations unspent at year-end
due back to the respective funds.
35
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 7—INTERFUND TRANSFERS:
Interfund transfers for the year ended June 30, 2022 consisted of the following:
Fund Transfers In Transfers Out
Primary Government:
General Fund $ - $ 178,809
Virginia Public Assistance Fund 91,915 -
CSA Fund 86,894 -
Total $ 178,809 $ 178,809
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in
the General Fund to finance various programs accounted for in other funds in accordance with budgeting
authorization.
NOTE 8—LONG-TERM OBLIGATIONS:
Primary Government-Governmental Activities:
The following is a summary of long-term liability transactions for the year ended June 30, 2022:
Balance Balance
July 1, GASB 87 Increases/ Decreases/ June 30,
2021 Adjustments Issuances Retirements 2022
Direct borrowings and placements:
Revenue bond $ 1,065,000 - $ - $ 1,065,000 $ -
Net OPEB liabilities $ 488,912 $ - $ 111,710 $ 171,579 $ 429,043
Other long-term obligations:
Lease liabilities - 58,975 - 29,395 29,580
Compensated absences 158,711 - 110,433 119,033 150,111
Net pension liability 3,062,673 - 1,735,301 3,786,061 1,011,913
Total other long-term obligations $ 3,221,384 $ 58,975 $ 1,845,734 $ 3,934,489 $ 1,191,604
Total Long-Term Obligations $ 4,775,296 $ 58,975 $ 1,957,444 $ 5,171,068 $ 1,620,647
Annual requirements to amortize long-term obligations and related interest are as follows:
Governmental Activities
Year Ending Lease liability
June 30, Principal Interest
2023 $ 29,580 $ 120
Total $ 29,580 $ 120
36
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 8-LONG-TERM OBLIGATIONS: (CONTINUED)
Primary Government-Governmental Activities: (continued)
Details of long-term obligations:
Amount
Amount of Amount of Final Due
Issue Original Interest Principal Maturity Within
Type/Project Date/Term Issue Rates Installments Date Balance One Year
Governmental activities:
placements:
Series 2012 public facilities lease $770,000-
revenue bond 8/1/2012 $ 9,545,000 2.25% SA $1,065,000 A 6/15/2022 $ - $ -
Total direct borrowings and direct placements $ - $ -
Lease liabilities:
Backup generator lease $ 297,000 0.75% $ 29,700 A 6/1/2023 $ 29,580 $ 29,580
Total lease liabilities $ 29,580 $ 29,580
Other obligations:
Net pension liability $ 1,011,913 $ -
Net OPEB liability 429,043 -
Compensated absences 150,111 37,528
Total other obligations $ 1,620,647 $ 67,108
governmental activities $ 1,620,647 $ 67,108
A=annual installments M=monthly installments SA=Semi-annual installments
The general fund is the primary governmental fund typically used in prior years to liquidate pension and
OPEB liabilities.
Discretelv Presented Component Unit-Service Authoritv:
The following is a summary of long-term obligation transactions of the Service Authority for the year
ended June 30, 2022:
Balance Balance
July 1, Increases/ Decreases/ June 30,
2021 Issuances Retirements 2022
Direct borrowings and placements:
Revenue bonds $ 337,805 $ - $ 20,473 $ 317,332
Other long-term obligations:
Compensated absences 33,695 8,471 25,271 16,895
Net OPEB liabilities 29,210 6,914 16,021 20,103
Net pension liability 428,831 242,218 529,725 141,324
Total long-term obligations $ 829,541 $ 257,603 $ 591,490 $ 495,654
The Service Authority's outstanding revenue bonds from direct borrowings and direct placements of
$317,332 contain a provision that in the event of default the entire unpaid principal and interest become
immediately due and payable. The Service Authority has pledged to secure the payment and
perFormance of the Authority's obligations under the bonds with the Authority's right, title, and interest to
the revenues and receipts received by the Authority.
37
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 8—LONG-TERM OBLIGATIONS: (CONTINUED)
Discretely Presented Component Unit-Service Authoritv: (continued)
Annual requirements to amortize long obligations and related interest are as follows:
Direct borrowings and placements:
Fiscal Revenue Bonds
Year Principal Interest
2023 $ 20,473 $ -
2024 20,473 -
2025 20,473 -
2026 20,473 -
2027 20,473 -
2028-2032 102,365 -
2033-2037 102,365 -
2038 10,237 -
Total $ 317,332 $ -
Details of Long-term obligations:
Amount of Amount of Final Amount
Issue Original Interest Principal Maturity Due Within
Type/Project Date/Term Issue Rates Installments Date Balance One Year
Business-type activities:
Direct borrowings and direct placements:
Virginia Resources Authority Revenue
Bonds 4/5/2007 $ 634,057 0.00% $ 10,236 SA 10/1/2037 $ 317,332 $ 20,473
Total direct borrowings and direct placements $ 317,332 $ 20,473
Other obligations:
Net pension liability $ 141,324 $ -
Net OPEB liability 20,103 -
Compensated absences 16,895 4,224
Total other obligations $ 178,322 $ 4,224
Total Long-term obligations from governmental activities $ 495,654 $ 24,697
A=annual installments M=monthly installments SA=Semi-annual installments
38
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 8-LONG-TERM OBLIGATIONS: (CONTINUED)
Discretely Presented Component Unit-School Board:
The following is a summary of long-term obligation transactions of the Component Unit School Board for
the year ended June 30, 2022:
Balance Balance
July 1, GASB 87 Increases/ Decreases/ June 30,
2021 Adjustments Issuances Retirements 2022
Direct borrowings and placements:
Note payable $ 1,537,785 $ - $ - $ 72,795 $ 1,464,990
Financed Purchase:
Loan payable $ 67,158 $ - $ - $ 32,850 $ 34,308
Lease liabilities $ - $ 31,080 $ - $ 6,524 $ 24,556
Other long-term obligations:
Compensated absences 278,756 - 180,118 209,067 249,807
Net OPEB liabilities 1,526,096 - 328,206 498,247 1,356,055
Net pension liability 8,048,764 - 2,529,585 6,585,012 3,993,337
Total other long-term obligations $ 9,853,616 $ - $ 3,037,909 $ 7,292,326 $ 5,599,199
Total Long-Term Obligations $ 11,458,559 $ 31,080 $ 3,037,909 $ 7,404,495 $ 7,123,053
Annual requirements to amortize long-term obligations and related interest are as follows:
Direct Borrowings and Placements: Other Long-Term Obligations:
Fiscal Note Payable Loan Payable Lease Liabilities
Year Principal Interest Principal Interest Principal Interest
2023 $ 75,009 $ 42,999 $ 34,308 $ 1,523 $ 6,578 $ 289
2024 77,290 40,718 - - 6,667 200
2025 79,641 38,367 - - 6,756 110
2026 82,064 35,945 - - 4,555 23
2027 84,560 33,449 - - - -
2028-2032 462,978 127,062 - - - -
2033-2037 537,803 52,237 - - - -
2038 65,645 682 - - - -
Total $ 1,464,990 $ 371,459 $ 34,308 $ 1,523 $ 24,556 $ 622
The School Board's outstanding note payable from direct borrowings and direct placements of
$1,464,990 contains a provision that in the event of default the entire unpaid principal and interest
become immediately due and payable. The School Board has pledged collateral consisting of all
property, improvements, fixtures, and equipment installed at Bath County High School, Millboro
Elementary School, and Valley Elementary School by Reliable Energy LLC to secure the payment and
performance of the obligation under the note payable.
39
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 8—LONG-TERM OBLIGATIONS: (CONTINUED)
Discretely Presented Component Unit-School Board: (continued)
Details of long-term obligations:
Amount
Amount of Amount of Final Due
Issue Original Interest Principal Maturity Within
Type/Project Date/Term Issue Rates Installments Date Balance One Year
Governmental activities:
Direct borrowings and direct placements:
Note payable to Reliabel Energy, LLC 3/31/2018 $ 1,773,180 3.00% M $ 9,834 M 1/28/2038 $ 1,464,990 $ 75,009
Total direct borrowings and direct placements $ 1,464,990 $ 75,009
Financed Purchase:
Loan payable for financing of wifi
infrastructure improvements 3/14/2019 $ 164,559 4.352%A $ 35,832 A $ 34,308 $ 34,308
Lease liabilities:
Copier leases(5) $ 34,349 1.335% M $ 492 M 2/28/2026 $ 24,556 $ 6,578
Total lease liabilities $ 24,556 $ 6,578
Other obligations:
Net pension liability $ 3,993,337 $ -
NetOPEBliability 1,356,055 -
Compensated absences 249,807 62,452
Totalotherobligations $ 5,599,199 $ 62,452
Total Long-term obligations from governmental activities $ 7,123,053 $ 178,347
A=annual installments M =monthly installments SA=Semi-annual installments
THIS SPACE LEFT BLANK INTENTIONALLY
40
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS:
Plan Description
All full-time, salaried permanent employees of the County and (nonprofessional) employees of public
school divisions are automatically covered by a VRS Retirement Plan upon employment. This is an agent
multiple-employer plan administered by the Virginia Retirement System (the System) along with plans for
other employer groups in the Commonwealth of Virginia. Members earn one month of service credit for
each month they are employed and for which they and their employer pay contributions to VRS.
Members are eligible to purchase prior service, based on specific criteria as defined in the Code of
Vir inia, as amended. Eligible prior service that may be purchased includes prior public service, active
military service, certain periods of leave, and previously refunded service.
Benefit Structures
The System administers three different benefit structures for covered employees — Plan 1, Plan 2 and
Hybrid. Each of these benefit structures has different eligibility criteria, as detailed below.
a. Employees with a membership date before July 1, 2010, vested as of January 1, 2013, and
have not taken a refund, are covered under Plan 1, a defined benefit plan. Non-hazardous
duty employees are eligible for an unreduced retirement benefit beginning at age 65 with at
least 5 years of service credit or age 50 with at least 30 years of service credit. Non-
hazardous duty employees may retire with a reduced benefit as early as age 55 with at least
5 years of service credit or age 50 with at least 10 years of service credit. Hazardous duty
employees (law enforcement officers, firefighters, and sheriffs) are eligible for an unreduced
benefit beginning at age 60 with at least 5 years of service credit or age 50 with at least 25
years of service credit. Hazardous duty employees may retire with a reduced benefit as early
as age 50 with at least 5 years of service credit.
b. Employees with a membership date from July 1, 2010 to December 31, 2013, that have not
taken a refund or employees with a membership date prior to July 1, 2010 and not vested
before January 1, 2013, are covered under Plan 2, a defined benefit plan. Non-hazardous
duty employees are eligible for an unreduced benefit beginning at their normal social security
retirement age with at least 5 years of service credit or when the sum of their age plus service
credit equals 90. Non-hazardous duty employees may retire with a reduced benefit as early
as age 60 with at least 5 years of service credit. Hazardous duty employees are eligible for an
unreduced benefit beginning at age 60 with at least 5 years of service credit or age 50 with at
least 25 years of service credit. Hazardous duty employees may retire with a reduced benefit
as early as age 50 with at least 5 years of service credit.
c. Non-hazardous duty employees with a membership date on or after January 1, 2014 are
covered by the Hybrid Plan combining the features of a defined benefit plan and a defined
contribution plan. Plan 1 and Plan 2 members also had the option of opting into this plan
during the election window held January 1 — April 30, 2014 with an effective date of July 1,
2014. Employees covered by this plan are eligible for an unreduced benefit beginning at their
normal social security retirement age with at least 5 years of service credit, or when the sum
of their age plus service credit equals 90. Employees may retire with a reduced benefit as
early as age 60 with at least 5 years of service credit. For the defined contribution component,
members are eligible to receive distributions upon leaving employment, subject to restrictions.
41
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Average Final Compensation and Service Retirement Multiplier
The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of
the employee's average final compensation multiplied by the employee's total service credit. Under Plan
1, average final compensation is the average of the employee's 36 consecutive months of highest
compensation and the multiplier is 1.70% for non-hazardous duty employees, 1.85°/o for sheriffs and
regional jail superintendents, and 1.70% or 1.85% for hazardous duty employees as elected by the
employer. Under Plan 2, average final compensation is the average of the employee's 60 consecutive
months of highest compensation and the retirement multiplier is 1.65°/o for non-hazardous duty
employees, 1.85% for sheriffs and regional jail superintendents, and 1.70% or 1.85% for hazardous duty
employees as elected by the employer. Under the Hybrid Plan, average final compensation is the
average of the employee's 60 consecutive months of highest compensation and the multiplier is 1.00%.
For members who opted into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers
for those plans will be used to calculate the retirement benefit for service credited in those plans.
Cost-of-Living Adjustment(COLA) in Retirement and Death and Disability Benefits
Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of service credit are
eligible for an annual COLA beginning July 1 after one full calendar year from the retirement date.
Retirees with a reduced benefit and who have less than 20 years of service credit are eligible for an
annual COLA beginning on July 1 after one calendar year following the unreduced retirement eligibility
date. Under Plan 1, the COLA cannot exceed 5.00%. Under Plan 2 and the Hybrid Plan, the COLA
cannot exceed 3.00%. The VRS also provides death and disability benefits. Title 51.1 of the Code of
Virginia, as amended, assigns the authority to establish and amend benefit provisions to the General
Assembly of Virginia.
Emp/oyees Covered by Benefit Terms
As of the June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms
of the pension plan:
Component Unit
Primary School Board
Government Nonprofessional
Inactive members or their beneficiaries currently
receiving benefits 52 29
Inactive members:
Vested inactive members 8 5
Non-vested inactive members 13 9
Inactive members active elsewhere in VRS 16 5
Total inactive members 37 19
Active members 67 27
Total covered employees 156 75
42
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virqinia, 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 County contractually required employer contribution rate for the year ended June 30, 2022 was
14.3% of covered employee compensation for the County and Component Unit Public Service Authority.
This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019.
This rate, when combined with employee contributions, was expected to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the County were $384,829 and $357,903 for the years
ended June 30, 2022 and June 30, 2021, respectively. Contributions to the pension plan from the
Component Unit Public Service Authority were $49,836 and $49,985 for the years ended June 30, 2022
and June 30, 2021, respectively.
The Component Unit School Board's contractually required contribution rate for nonprofessional
employees for the year ended June 30, 2022 was 5.21% of covered employee compensation. This rate
was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019.
This rate, when combined with employee contributions, was expected to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the Component Unit School Board's nonprofessional
employees were $25,287 and $25,509 for the years ended June 30, 2022 and June 30, 2021,
respectively.
Net Pension Liability
The net pension liability (NPL) is calculated separately for each employer and represents that particular
employer's total pension liability determined in accordance with GASB Statement No. 68, less that
employer's fiduciary net position. The County's, Component Unit Public Service Authority's, and
Component Unit School Board's (nonprofessional) net pension liabilities were measured as of June 30,
2021. The total pension liabilities used to calculate the net pension liabilities were determined by an
actuarial valuation performed as of June 30, 2020 and rolled forward to the measurement date of June
30, 2021.
43
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Actuarial Assumptions— Genera/Emp/oyees
The total pension liability for General Employees in the County's and Component Unit School Board's
(nonprofessional) Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the
Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in
the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50% — 5.35%
Investment rate of return 6.75°/o, net of pension plan investment
expenses, including inflation
Mortality rates:
All Others (Non-10 Largest)— Non-Hazardous Duty: 15% of deaths are assumed to be service related
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for
males; 105°/o of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of
rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for
males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110%
of rates for males and females set forward 2 years
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the
MP-2020 rates
44
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Actuarial Assumptions— Genera/Emp/oyees (continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
All Others (Non 10 Largest)— Non-Hazardous Duty:
Update to Pub-2010 public sector mortality tables. For
Mortality Rates (pre-retirement, post- future mortality improvements, replace load with a
retirement health , and disabled modified Mortalit Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement a e
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disabilit Rates No change
Salar Scale No chan e
Line of Dut Disabilit No chan e
Discount Rate No chan e
Actuarial Assumptions— Public Safety Employees with Hazardous Duty Benefits
The total pension liability for Public Safety employees with Hazardous Duty Benefits in the County's
Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal
actuarial cost method and the following assumptions, applied to all periods included in the measurement
and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50°/o —4.75%
Investment rate of return 6.75°/o, net of pension plan investment
expenses, including inflation
45
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Actuarial Assumptions— Public Safety Emp/oyees with Hazardous Duty Benefits (continued)
Mortality rates:
All Others (Non-10 Largest)— Hazardous Duty: 45% of deaths are assumed to be service related
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally with a Modified
MP-2020 Improvement Scale; 95% of rates for males; 105% of rates for females set forward 2
years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally with a
Modified MP-2020 Improvement Scale; 110% of rates for males; 105% of rates for females set
forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally with a Modified
MP-2020 Improvement Scale; 95°/o of rates for males set back 3 years; 90% of rates for females
set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110%
of rates for males and females set forward 2 years
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the
MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
All Others (Non-10 Largest)— Hazardous Duty:
Update to Pub-2010 public sector mortality tables.
Increased disability life expectancy. For future mortality
Mortality Rates (pre-retirement, post- improvements, replace load with a modified Mortality
retirement health , and disabled Im rovement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final
retirement a e from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age
and service to rates based on service only to better fit
experience and to be more consistent with Locals Largest
10 Hazardous
Disabilit Rates No chan e
Sala Scale No chan e
Line of Dut Disabilit No chan e
Discount Rate No chan e
46
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a log-
normal distribution analysis in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension System investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding
expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each
major asset class are summarized in the following table:
Weighted
Long-Term Arithmetic Average
Target Long-term Long-term
Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70°/a
Fixed Income 15.00% 0.57% 0.09%
Credit Strategies 14.00% 4.49% 0.63%
Real Assets 14.00% 4.76% 0.67%
Private Equity 14.00% 9.94% 1.39%
MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20%
PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50%
Expected arithmetic nominal return* 7.39%
* The above allocation provides a one-year expected return of 7.39%. However, one-year returns do not
take into account the volatility present in each of the asset classes. In setting the long-term expected
return for the System, stochastic projections are employed to model future returns under various
economic conditions. These results provide a range of returns over various time periods that ultimately
provide a median return of 6.94°/o, including expected inflation of 2.5%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75°/o which was roughly at
the 40t" percentile of expected long-term results of the VRS fund asset allocation at that time, providing a
median return of 7.11% including expected inflation of 2.50%.
47
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Discount Rate
The discount rate used to measure total pension liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed the 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; the County and Component Unit School Board
(nonprofessional) was also provided with an opportunity to use an alternative employer contribution rate.
For the year ended June 30, 2021, the alternate rate was the employer contribution rate used in FY 2012
or 100% of the actuarially determined employer contribution rate from the June 30, 2017 actuarial
valuations, whichever was greater. Through the fiscal year ended June 30, 2021, the rate contributed by
the school division for the VRS Teacher Retirement Plan was subject to the portion of the VRS Board-
certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially
determined contribution rate. From July 1, 2021 on, participating employers and school divisions are
assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current active and inactive employees. Therefore, the long-term expected rate
of return was applied to all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Primary Government
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability(Asset)
(a) (b) (a) - (b)
Balances at June 30, 2020 $ 14,367,974 $ 11,305,299 $ 3,062,675
Changes for the year:
Service cost $ 304,812 $ - $ 304,812
Interest 946,496 - 946,496
Differences between expected
and actual experience (219,796) - (219,796)
Assumption changes 475,351 - 475,351
Impact of change in proportion 4,505 3,544 961
Contributions - employer - 357,906 (357,906)
Contributions - employee - 124,328 (124,328)
Net investment income - 3,083,741 (3,083,741)
Benefit payments, including refunds (700,633) (700,633) -
Administrative expenses - (7,679) 7,679
Other changes - 290 (290)
Net changes $ 810,735 $ 2,861,497 $ (2,050,762)
Balances at June 30, 2021 $ 15,178,709 $ 14,166,796 $ 1,011,913
48
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Changes in Net Pension Liability(continued)
Component Unit Public Service Authority
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability(Asset)
(a) (b) (a) -(b)
Balances at June 30, 2020 $ 2,011,777 $ 1,582,946 $ 428,831
Changes for the year:
Service cost $ 42,570 $ - $ 42,570
I nterest 132,188 - 132,188
Differences between expected
and actual experience (30,697) - (30,697)
Assumption changes 66,388 - 66,388
Impact of change in proportion (4,505) (3,544) (961)
Contributions-employer - 49,985 (49,985)
Contributions-employee - 17,364 (17,364)
Net investment income - 430,678 (430,678)
Benefit payments, including refunds (97,851) (97,851) -
Administrative expenses - (1,073) 1,073
Other changes - 41 (41)
Net changes $ 108,093 $ 395,600 $ (287,507)
Balances at June 30, 2021 $ 2,119,870 $ 1,978,546 $ 141,324
Component School Board (nonprofessional)
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability(Asset)
(a) (b) (a) -(b)
Balances at June 30, 2020 $ 4,426,553 $ 4,071,763 $ 354,790
Changes for the year:
Service cost $ 49,304 $ - $ 49,304
Interest 290,622 - 290,622
Differences between expected
and actual experience (205,277) - (205,277)
Assumption changes 148,708 - 148,708
Contributions-employer - 25,509 (25,509)
Contributions-employee - 28,495 (28,495)
Net investment income - 1,093,320 (1,093,320)
Benefit payments, including refunds (242,087) (242,087) -
Administrative expenses - (2,829) 2,829
Other changes - 102 (102)
Net changes $ 41,270 $ 902,510 $ (861,240)
Balances at June 30, 2021 $ 4,467,823 $ 4,974,273 $ (506,450)
49
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the County, Component Unit Public Service Authority,
and Component Unit School Board (nonprofessional) using the discount rate of 6.75%, as well as what
the County's and Component Unit School Board's (nonprofessional) net pension liability would be if it
were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point
higher (7.75%) than the current rate:
Rate
1% Decrease Current Discount 1% Increase
(5.75%) (6.75%) (6.75%)
County
Net Pension Liability $ 3,030,127 $ 1,011,913 $ (652,848)
Component Unit Public Service Authority
Net Pension Liability $ 423,190 $ 141,324 $ (91,177)
Component Unit School Board (nonprofessional)
Net Pension Liability (Asset) $ (7,413) $ (506,450) $ (926,364)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2022, the County, Component Unit Public Service Authority, and
Component Unit School Board (nonprofessional) recognized pension expense of $141,062, $19,011,
and ($110,950), respectively. At June 30, 2022, the County, Component Unit Public Service Authority,
and Component Unit School Board (nonprofessional) reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Component Unit
Primary Government Public Service Authority
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual
experience $ 171,321 $ 160,231 $ 23,850 $ 22,378
Change in assumptions 404,258 - 55,541 -
Net difference between projected and actual
earnings on pension plan investments - 1,533,009 - 214,383
Impact of change in proportional allocation - 1,144 1,144 -
Employer contributions subsequent to the
measurement date 384,829 - 49,836 -
Total $ 960,408 $ 1,694,384 $ 130,371 $ 236,761
50
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (continued)
Component Unit School
Board (nonprofessional)
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual
experience $ 1,269 $ 120,801
Change in assumptions 87,511 -
Net difference between projected and actual
earnings on pension plan investments - 538,787
Employer contributions subsequent to the
measurement date 25,287 -
Total $ 114,067 $ 659,588
$384,829, $49,836, and $25,287 reported as deferred outflows of resources related to pensions resulting
from the County's, Component Unit Service Authority's, and Component Unit School Board's
(nonprofessional) contributions, respectively, subsequent to the measurement date will be recognized as
a reduction of the Net Pension Liability in the fiscal year ending June 30, 2023. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense in future reporting periods as follows:
Component Unit Component Unit
Primary Public Service School Board
Year Ended June 30, Government Authority (nonprofessional)
2023 $ (120,859) $ (25,120) $ (147,968)
2024 (222,955) (22,636) (132,306)
2025 (309,386) (43,444) (125,550)
2026 (465,605) (65,026) (164,984)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued
VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual
Report may be downloaded from the VRS website at http://www.varetire.orq/pdf/publications/2021-
annual-report.pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA
23218-2500.
51
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Component Unit School Board (Professional)
Plan Description
All full-time, salaried permanent (professional) employees of public school divisions are automatically
covered by the VRS Teacher Retirement Plan upon employment. This is a cost-sharing multiple
employer plan administered by the Virginia Retirement System (the system). Additional information
related to the plan description is included in the first section of this note.
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 provided to school divisions by the Virginia
General Assembly. Employees are required to contribute 5.00% of their compensation toward their
retirement. Each school division's contractually required employer contribution rate for the year ended
June 30, 2022 was 16.62% of covered employee compensation. This rate was based on an actuarially
determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined 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 school division were $734,928 and $727,755 for the years
ended June 30, 2022 and June 30, 2021, respectively.
In June 2021, the Commonwealth made a special contribution of approximately $61.3 million to the VRS
Teacher Retirement Plan. This special payment was authorized by a budget amendment included in
Chapter 552 of the 2021 Appropriation Act, and is classified as a non-employer contribution.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2022, the school division reported a liability of $3,993,337 for its proportionate share of the
Net Pension Liability. The Net Pension Liability was measured as of June 30, 2021 and the total pension
liability used to calculate the Net Pension Liability was determined by an actuarial valuation performed as
of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The school division's
proportion of the Net Pension Liability was based on the school division's actuarially determined
employer contributions to the pension plan for the year ended June 30, 2021 relative to the total of the
actuarially determined employer contributions for all participating employers. At June 30, 2021, the
school division's proportion was .05144% as compared to .05290% at June 30, 2019.
For the year ended June 30, 2022, the school division recognized pension expense of ($156,487). Since
there was a change in proportionate share between measurement dates, a portion of the pension
expense was related to deferred amounts from changes in proportion and from differences between
employer contributions and the proportionate share of employer contributions.
52
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Component Unit School Board (Professional) (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred /nflows
of Resources Related to Pensions (continued)
At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ - $ 340,128
Change in assumptions 699,622 -
Net difference between projected and actual
earnings on pension plan investments - 2,516,494
Changes in proportion and differences between
employer contributions and proportionate
share of contributions - 505,250
Employer contributions subsequent to the
measurement date 734,928 -
Total $ 1,434,550 $ 3,361,872
$734,928 reported as deferred outflows of resources related to pensions resulting from the school
division's contributions subsequent to the measurement date will be recognized as a reduction of the Net
Pension Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense in
future reporting periods as follows:
Year Ended June 30,
2023 $ (698,025)
2024 (605,580)
2025 (605,761)
2026 (753,186)
2027 302
53
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Component Unit School Board (Professional) (continued)
Actuarial Assumptions
The total pension liability for the VRS Teacher Retirement Plan was based on an actuarial valuation as of
June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied
to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50% — 5.95%
Investment rate of return 6.75°/o, net of pension plan investment
expenses, including inflation
Mortality rates:
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates
for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set
forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for
males and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except for the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Update to Pub-2010 public sector mortality tables. For
Mortality Rates (pre-retirement, post- future mortality improvements, replace load with a
retirement healthy, and disabled) modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
54
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Component Unit School Board (Professional) (continued)
Net Pension Liability
The net pension liability (NPL) is calculated separately for each system and represents that particular
system's total pension liability determined in accordance with GASB Statement No. 67, less that
system's fiduciary net position. As of June 30, 2021, NPL amounts for the VRS Teacher Employee
Retirement Plan is as follows (amounts expressed in thousands):
Teacher Employee
Retirement Plan
Total Pension Liability $ 53,381,141
Plan Fiduciary Net Position 45,617,878
Employers' Net Pension Liability (Asset) $ 7,763,263
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 85.46%
The total pension liability is calculated by the System's actuary, and each plan's fiduciary net position is
reported in the System's financial statements. The net pension liability is disclosed in accordance with
the requirements of GASB Statement No. 67 in the System's notes to the financial statements and
required supplementary information.
The long-term expected rate of return and discount rate information previously described also apply to
this plan.
Sensitivity of the Schoo/ Division's Proportionate Share of the Net Pension Liability to Changes
in the Discount Rafe
The following presents the school division's proportionate share of the net pension liability using the
discount rate of 6.75%, as well as what the school division's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or
one percentage point higher (7.75%) than the current rate:
Rate
1% Decrease Current Discount 1% Increase
(5.75%) (6.75%) (7.75%)
School division's proportionate
share of the VRS Teacher
Employee Retirement Plan
Net Pension Liability (Asset) $ 7,706,925 $ 3,993,337 $ 938,415
55
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 9—PENSION PLANS: (CONTINUED)
Pension Plan Fiduciary Net Position
Detailed information about the VRS Teacher Retirement Plan's Fiduciary Net Position is available in the
separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the
2021 VRS Annual Report may be downloaded from the VRS website at
http://www.varetire.org/Pdf/Publications/2021-annual-report.qdf, or by writing to the System's Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Aggregate Pension Information
Net Pension
Deferred Deferred Liability Pension
Outflows Inflows (Asset) Expense
VRS Pension Plans:
Primary Government $ 960,408 $ 1,694,384 $ 1,011,913 $ 141,062
School Board Nonprofessional $ 114,067 $ 659,588 $ (506,450) $ (110,950)
School Board Professional 1,434,550 3,361,872 3,993,337 (156,487)
Total School Board $ 1,548,617 $ 4,021,460 $ 3,486,887 $ (267,437)
Public Service Authority $ 130,371 $ 236,761 $ 141,324 $ 19,011
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN):
Plan Description
The Group Life Insurance (GLI) Plan was established pursuant to §51.1-500 et seq. of the Code of
Virginia, as amended, and which provides the authority under which benefit terms are established or may
be amended. All full-time, salaried permanent employees of the state agencies, teachers, and employees
of participating political subdivisions are automatically covered by the VRS GLI Plan upon employment.
This is a cost-sharing multiple-employer plan administered by the Virginia Retirement System (the
System), along with pensions and other OPEB plans, for public employer groups in the Commonwealth
of Virginia.
In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for themselves
as well as a spouse or dependent children through the Optional GLI Plan. 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 plan, it is not included as part of the GLI Plan OPEB.
The specific information for GLI Program OPEB, including eligibility, coverage and benefits is described
below:
Eligible Emp/oyees
The GLI Plan was established July 1, 1960, for state employees, teachers, and employees of political
subdivisions that elect the plan. Basic GLI coverage is automatic upon employment. Coverage ends for
employees who leave their position before retirement eligibility or who take a refund of their accumulated
retirement member contributions and accrued interest.
56
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Benefit Amounts
The GLI Plan is a defined benefit plan with several components. The natural death benefit is equal to the
employee's covered compensation rounded to the next highest thousand and then doubled. The
accidental death benefit is double the natural death benefit. In addition to basic natural and accidental
death benefits, the plan provides additional benefits provided under specific circumstances that include
the following: accidental dismemberment benefit, seatbelt benefit, repatriation benefit, felonious assault
benefit, and accelerated death benefit option. The benefit amounts are subject to a reduction factor. The
benefit amount reduces by 25% on January 1 following one calendar year of separation. The benefit
amount reduces by an additional 25% on each subsequent January 1 until it reaches 25% of its original
value. For covered members with at least 30 years of service credit, the minimum benefit payable was
set at $8,000 by statute in 2015. This will be increased annually based on the VRS Plan 2 cost-of-living
adjustment calculation. The minimum benefit adjusted for the COLA was $8,722 as of June 30, 2022.
Contributions
The contribution requirements for the GLI Plan are governed by §51.1-506 and §51.1-508 of the Code of
Virqinia, as amended, but may be impacted as a result of funding provided to state agencies and school
divisions by the Virginia General Assembly. The total rate for the GLI Plan was 1.34% of covered
employee compensation. This was allocated into an employee and an employer component using a
60/40 split. The employee component was 0.80% (1.34°/o x 60%) and the employer component was
0.54% (1.34% x 40%). Employers may elect to pay all or part of the employee contribution; however, the
employer must pay all of the employer contribution. Each employer's contractually required employer
contribution rate for the year ended June 30, 2022 was 0.54% of covered employee compensation. This
rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019. The
actuarially determined rate, when combined with employee contributions, was expected to finance the
costs of benefits payable during the year, with an additional amount to finance any unfunded accrued
liability.
Primary Government contributions to the GLI Plan were $14,786 and $13,781 for the years ended June
30, 2022 and June 30, 2021, respectively. Component Unit Public Service Authority contributions to the
GLI Plan were $1,926 and $1,925 for the years indeed June 30, 2022 and June 30, 2021, respectively.
School Board contributions to the GLI Plan for nonprofessional employees were $3,505 and $3,415, for
the years ended June 30, 2022 and June 30, 2021, respectively. School Board contributions to the GLI
Plan for professional employees were $25,025 and $24,635, for the years ended June 30, 2022 and
June 30, 2021 respectively.
57
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Re/ated to the Group Life Insurance Plan OPEB
At June 30, 2022, the Primary Government and Public Service Authority reported liabilities of $143,943
and $20,103 for their respective proportionate shares of the Net GLI OPEB Liability. The Net GLI OPEB
Liability was measured as of June 30, 2021 and the total GLI OPEB liability used to calculate the Net GLI
OPEB Liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled
forward to the measurement date of June 30, 2021. The covered employer's proportion of the Net GLI
OPEB Liability was based on the covered employer's actuarially determined employer contributions to
the GLI Plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer
contributions for all participating employers. At June 30, 2021, the participating employer's proportion for
the Primary Government was .0124% as compared to 0.0125% at June 30, 2019. At June 30, 2021, the
participating employer's proportion for the Public Service Authority was .00173% as compared to
.00174% at June 30, 2020.
At June 30, 2022, the School Board reported liability of $35,627 for nonprofessional employees and
$257,304 for professional employees for its proportionate share of the Net GLI OPEB Liability. At June
30, 2021 the participating employer's proportion for nonprofessional employees was 0.00310°/o as
compared to 0.00320% at June 30, 2020. At June 30, 2021, the participating employer's proportion for
School Board professional employees was 0.02210°/o as compared to 0.02250% at June 30, 2020.
For the year ended June 30, 2022, the Primary Government recognized GLI OPEB expense of $3,678,
while the Public Service Authority recognized GLI OPEB expense of$514. The School Board recognized
GLI OPEB expense of ($383), and $2,110 for nonprofessional and professional employees, respectively.
Since there was a change in proportionate share between measurement dates, a portion of the GLI
OPEB expense was related to deferred amounts from changes in proportion.
At June 30, 2022, the Primary Government and Component Unit Public Service Authority reported
deferred outflows of resources and deferred inflows of resources related to the GLI OPEB from the
following sources:
Component Unit
Primary Government Public Serice Authority
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected
and actual experience $ 16,417 $ 1,097 $ 2,293 $ 153
Net difference between projected
and actual earnings on GLI
OPEB program investments - 34,356 - 4,798
Change in assumptions 7,936 19,694 1,108 2,751
Changes in proportion 2,926 6,040 409 844
Employer contributions subsequent
to the measurement date 14,876 - 1,926 -
Total $ 42,155 $ 61,187 $ 5,736 $ 8,546
58
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to the Group Life Insurance Plan OPEB (continued)
$14,876 and $1,926 for the Primary Government and Public Service Authority, respectively were
reported as deferred outflows of resources related to the GLI OPEB resulting from the employer's
contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI
OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to the GLI OPEB will be recognized in the GLI OPEB
expense in future reporting periods as follows:
Component Unit
Primary Government Public Service Authority
Year Ended June 30, Year Ended June 30,
2023 $ (9,311) 2023 $ (1,300)
2024 (6,519) 2024 (911)
2025 (5,167) 2025 (722)
2026 (10,650) 2026 (1,487)
2027 (2,261) 2027 (316)
Thereafter - Thereafter -
At June 30, 2022, the Component Unit School Board reported deferred outflows of resources and
deferred inflows of resources related to the GLI OPEB from the following sources:
Component Unit School Board
Nonprofessional Employees Professional Employees
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected
and actual experience $ 4,063 $ 271 $ 29,346 $ 1,961
Net difference between projected
and actual earnings on GLI
OPEB program investments - 8,503 - 61,413
Change in assumptions 1,964 4,874 14,185 35,205
Changes in proportion - 5,689 - 27,516
Employer contributions subsequent
to the measurement date 3,505 - 25,025 -
Total $ 9,532 $ 19,337 $ 68,556 $ 126,095
59
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to the Group Life Insurance Plan OPEB (continued)
$3,505 and $25,025 for the School Board nonprofessional and professional employees, respectively
were reported as deferred outflows of resources related to the GLI OPEB resulting from the employer's
contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI
OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to the GLI OPEB will be recognized in the GLI OPEB
expense in future reporting periods as follows:
Component Unit School Board
Nonprofessional Employees Professional Employees
Year Ended June 30, Year Ended June 30,
2023 $ (3,598) 2023 $ (21,107)
2024 (3,203) 2024 (17,882)
2025 (2,611) 2025 (15,955)
2026 (3,142) 2026 (22,693)
2027 (756) 2027 (4,927)
Thereafter - Thereafter -
Actuarial Assumptions
The total GLI OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry
Age Normal actuarial cost method and the following assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2021. The assumptions include
several employer groups as noted below. Salary increases and mortality rates included herein are for
relevant employer groups. Information for other groups can be referenced in the VRS CAFR.
Inflation 2.50%
Salary increases, including inflation:
Teachers 3.50%-5.95%
Locality - General employees 3.50%-5.35%
Locality - Hazardous Duty employees 3.50%-4.75%
Investment rate of return 6.75%, net of investment expenses,
including inflation
60
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Actuarial Assumptions (continued)
Mortality Rates —Teachers
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates
for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set
forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for
males and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
61
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Actuarial Assumptions (continued)
Mortality Rates — Non-Largest Ten Locality Employers — General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; males set forward
2 years; 105°/o of rates for females set forward 3 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 95% of rates
for males set forward 2 years; 95% of rates for females set forward 1 year
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 110°/o of rates for
males set forward 3 years; 110°/o of rates for females set forward 2 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Dut Disabilit No chan e
Discount Rate No change
62
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Actuarial Assumptions (continued)
Mortality Rates — Non-Largest Ten Locality Employers — Hazardous Duty Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95°/o of rates for
males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of
rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95°/o of rates for
males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110%
of rates for males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except for the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. Increased
retirement healthy, and disabled) disability life expectancy. For future mortality improvements,
replace load with a modified Mortality Improvement Scale MP-
2020
Retirement Rates Adjusted rates to better fit experience and changed final
retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and
service to rates based on service only to better fit experience
and to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
63
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
NET GLI OPEB Liability
The net OPEB liability (NOL) for the GLI Plan represents the plan's total OPEB liability determined in
accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the
measurement date of June 30, 2021, NOL amounts for the GLI Plan are as follows (amounts expressed
in thousands):
Group Life
Insurance OPEB
Plan
Total GLI OPEB Liability $ 3,577,346
Plan Fiduciary Net Position 2,413,074
GLI Net OPEB Liability (Asset) $ 1,164,272
Plan Fiduciary Net Position as a Percentage
of the Total GLI OPEB Liability 67.45%
The total GLI OPEB liability is calculated by the System's actuary, and each plan's fiduciary net position
is reported in the System's financial statements. The net GLI OPEB liability is disclosed in accordance
with the requirements of GASB Statement No. 74 in the System's notes to the financial statements and
required supplementary information.
THIS SPACE LEFT BLANK INTENTIONALLY
64
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on the System's 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 System's investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. The
target asset allocation and best estimate of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term Arithmetic Weighted Average
Target Long-term Long-term
Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70%
Fixed Income 15.00°/a 0.57% 0.09°/a
Credit Strategies 14.00% 4.49% 0.63°/o
Real Assets 14.00°/o 4.76% 0.67°/o
Private Equity 14.00% 9.94% 1.39°/o
MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20%
PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50%
Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for the
System, stochastic projections are employed to model future returns under various economic conditions.
These results provide a range of returns over various time periods that ultimately provide a median return
of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75°/o which was roughly at
the 40t" percentile of expected long-term results of the VRS fund asset allocation at that time, providing a
median return of 7.11%, including expected inflation of 2.50°/o.
65
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 10—GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Discount Rate
The discount rate used to measure the total GLI OPEB liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that employer contributions will be made in accordance
with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by
the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by the
entity for the GLI OPEB will be subject to the portion of the VRS Board-certified rates that are funded by
the Virginia General Assembly which was 100°/o of the actuarially determined contribution rate. From July
1, 2021 on, employers are assumed to continue to contribute 100% of the actuarially determined
contribution rates. Based on those assumptions, the GLI OPEB's 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
GLI OPEB liability.
Sensitivity of the Emp/oyer's Proportionate Share of the Net GLI OPEB Liability to Changes in the
Discount Rate
The following presents the employer's proportionate share of the net GLI OPEB liability using the
discount rate of 6.75%, as well as what the employer's proportionate share of the net GLI OPEB liability
would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one
percentage point higher (7.75%) than the current rate:
Rate
Proportionate Share of the GLI 1% Decrease Current Discount 1% Increase
Plan Net OPEB Liability (5.75%) (6.75%) (6.75%)
Primary Government $ 210,306 $ 143,943 $ 90,352
Public Service Authority $ 29,371 $ 20,103 $ 12,618
School Board
Nonprofessional employees $ 52,052 $ 35,627 $ 22,363
School Board
Professional employees $ 375,931 $ 257,304 $ 161,508
GLI Program Fiduciary Net Position
Detailed information about the GLI Plan's Fiduciary Net Position is available in the separately issued
VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual
Report may be downloaded from the VRS website at http://www.varetire.orq/pdf/publications/2021-
annual-report.pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA,
23218-2500.
66
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
Plan Description
Political subdivisions are required by Title 51.1 of the Code of Virginia, as amended, to provide short-
term and long-term disability benefits for their hybrid plan employees either through a local plan or
through the Virginia Local Disability Program (VLDP). This is a multiple-employer, cost-sharing plan
administered by the Virginia Retirement System (the System), along with pension and other OPEB plans,
for eligible public employer groups in the Commonwealth of Virginia.
The specific information for the VLDP OPEB, including eligibility, coverage, and benefits is described
below:
Eligible Emp/oyees
The Political Subdivision VLDP was implemented January 1, 2014 to provide benefits for non-work-
related and work-related disabilities for employees with hybrid plan retirement benefits. All full-time,
salaried general employees; including local law enforcement officers, firefighters, or emergency medical
technicians of political subdivisions who do not provide enhanced hazardous duty benefits; who are in
the VRS Hybrid Retirement Plan benefit structure and whose employer has not elected to opt out of the
VRS-sponsored program are automatically covered by the VRS Political Subdivision VLDP.
Benefit Amounts
The VLDP provides a short-term disability benefit beginning after a seven-calendar-day waiting period
from the first day of disability. Employees become eligible for non-work-related short-term disability
coverage after one year of continuous participation in VLDP with their current employer. During the first
five years of continuous participation in VLDP with their current employer, employees are eligible for 60%
of their pre-disability income if they go out on non-work-related or work-related disability. Once the
eligibility period is satisfied, employees are eligible for higher income replacement levels.
The VLDP provides a long-term disability benefit beginning after 125 workdays of short-term disability.
Members are eligible if they are unable to work at all or are working fewer than 20 hours per week.
Members approved for long-term disability will receive 60% of their pre-disability income. If approved for
work-related long-term disability, the VLDP benefit will be offset by the workers' compensation benefit.
Members will not receive a VLDP benefit if their workers' compensation benefit is greater than the VLDP
benefit.
VLDP Notes
Members approved for short-term or long-term disability at age 60 or older will be eligible for a benefit,
provided they remain medically eligible. VLDP Long-Term Care Plan is a self-funded program that
assists with the cost of covered long-term care services.
67
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11-VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
Contributions
The contribution requirements for active hybrid plan employees is governed by §51.1-1178(C) of the
Code of Virqinia, as amended, but may be impacted as a result of funding provided to political
subdivisions by the Virginia General Assembly. Each political subdivision's contractually required
employer contribution rate for the year ended June 30, 2022 was 0.83% of covered employee
compensation for employees in the VRS Political Subdivision VDLP. This rate was based on an
actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined
rate 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 from the County to the VRS
Political Subdivision VDLP were $4,133 and $2,719 for the years ended June 30, 2022 and June 30,
2021, respectively. Contributions from the Public Service Authority to the VRS Political Subdivision
Employee VLDP were $535 and $380 for the years ended June 30, 2022 and June 30, 2021,
respectively. Contributions from the Component Unit School Board for nonprofessional employees to the
VRS Political Subdivision Employee VLDP were $2,794 and $2,594 for the years ended June 30, 2022
and June 30, 2020 respectively.
VLDP OPEB Liabilities, VLDP OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to VLDP OPEB
At June 30, 2022, the Primary Government reported an asset of ($826) for its proportionate share of the
VLDP Net OPEB Liability. The Net VLDP OPEB Liability was measured as of June 30, 2021 and the total
VLDP OPEB liability used to calculate the Net VLDP OPEB Liability was determined by an actuarial
valuation as of June 30, 2020 and rolled forward to the measurement date of June 30, 2021. The Primary
Government's proportion of the Net VLDP OPEB Asset was based on the County's actuarially
determined employer contributions to the VLDP OPEB plan for the year ended June 30, 2021 relative to
the total of the actuarially determined employer contributions for all participating employers. At June 30,
2021, the Primary Government's proportion of the VLDP was .09294°/o as compared to .07441% at June
30, 2020.
At June 30, 2022, the Public Service Authority reported an asset of ($115) for its proportionate share of
the VLDP Net OPEB Liability. The Net VLDP OPEB Liability was measured as of June 30, 2021 and the
total VLDP OPEB liability used to calculate the Net VLDP OPEB Liability was determined by an actuarial
valuation as of June 30, 2020 and rolled forward to the measurement date of June 30, 2021. The Public
Service Authority's proportion of the Net VLDP OPEB Liability was based on the County's actuarially
determined employer contributions to the VLDP OPEB plan for the year ended June 30, 2021 relative to
the total of the actuarially determined employer contributions for all participating employers. At June 30,
2021, the Public Service Authority's proportion of the VLDP was .01139% as compared to .01039% at
June 30, 2020.
At June 30, 2022, the School Board reported an asset of ($787) for its proportionate share of the VLDP
Net OPEB Liability for nonprofessional employees. The Net VLDP OPEB Liability was measured as of
June 30, 2021 and the total VLDP OPEB liability used to calculate the Net VLDP OPEB Liability was
determined by an actuarial valuation as of June 30, 2020 and rolled forward to the measurement date of
June 30, 2021. The School Board's proportion of the Net VLDP OPEB Liability for nonprofessional
employees was based on the School Board's actuarially determined employer contributions to the VLDP
OPEB plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer
contributions for all participating employers. At June 30, 2021, the School Board's proportion of the VLDP
was .07780% as compared to .09010% at June 30, 2020.
68
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
VLDP OPEB Liabilities, VLDP OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to VLDP OPEB (continued)
For the year ended June 30, 2022, the Primary Government, Public Service Authority, and School Board
(for nonprofessional employees) recognized VLDP OPEB expense of $2,289, $320, and $2,123,
respectively. Since there was a change in proportionate share between measurement dates a portion of
the VLDP Net OPEB expense was related to deferred amounts from changes in proportion.
At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources
related to the VLDP OPEB from the following sources:
Primary Government Component Unit Service Authority
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Differences between expected and
actual experience $ 490 $ 1,237 $ 69 $ 173
Net difference between projected and actual
earnings on VLDP OPEB plan investments - 461 - 64
Change in assumptions 28 224 4 31
Changes in proportion 121 25 17 3
Employer contributions subsequent
to the measurement date $ 4,133 $ - $ 535 $ -
Total $ 4,772 $ 1,947 $ 625 $ 271
Component Unit School Board
Nonprofessional Employees
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual experience $ 468 $ 1,180
Net difference between projected and actual
earnings on VLDP OPEB plan investments - 439
Change in assumptions 27 214
Changes in proportion 10 171
Employer contributions subsequent
to the measurement date $ 2,794 $ -
Total $ 3,299 $ 2,004
69
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
VLDP OPEB Liabilities, VLDP OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to VLDP OPEB (continued)
$4,133, $535, and $2,794 reported as deferred outflows of resources related to the VLDP OPEB
resulting from the Primary Government, Public Service Authority, and School Board's respective
contributions subsequent to the measurement date will be recognized as a reduction of the Net VLDP
OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to the VLDP OPEB will be recognized in the VLDP
OPEB expense in future reporting periods as follows:
Component Unit Service Component Unit School Board -
Primary Government Authority Nonprofessional
Year Ended Year Ended Year Ended
June 30, June 30, June 30,
2023 $ (162) 2023 $ (23) 2023 $ (216)
2024 (162) 2024 (21) 2024 (215)
2025 (170) 2025 (23) 2025 (224)
2026 (366) 2026 (51) 2026 (399)
2027 (132) 2027 (19) 2027 (138)
Thereafter (316) Thereafter (44) Thereafter (307)
Actuarial Assumptions
The total VLDP OPEB liability for the VLDP was based on an actuarial valuation as of June 30, 2020,
using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods
included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50%-5.35%
Investment rate of return 6.75%, net of plan investment expenses,
including inflation
70
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
Actuarial Assumptions (continued)
Mortality Rates — Non-Largest Ten Locality Employers — General and Non-Hazardous Duty
Employees
Pre-Retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally; males
set forward 2 years; 105% of rates for females set forward 3 years
Post-Retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally;
95% of rates for males set forward 2 years; 95°/o of rates for females set forward 1 year
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 110% of
rates for males set forward 3 years; 110% of rates for females set forward 2 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected
generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75%
of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled) Update to Pub-2010 public sector mortality tables. For
future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates
Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Dut Disabilit No chan e
Discount Rate No chan e
71
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
Net VLDP OPEB Liability
The net OPEB liability (NOL) for the Political Subdivision Employee VLDP represents the program's total
OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net
position. As of June 30, 2021, NOL amounts for the VRS Political Subdivision Employee VLDP is as
follows (amounts expressed in thousands):
Political Subdivision
VLDP
OPEB Plan
Total Political Subdivision VLDP OPEB Liability $ 5,156
Plan Fiduciary Net Position 6,166
Political Subdivision net VLDP OPEB Liability (Asset) $ (1,010)
Plan Fiduciary Net Position as a Percentage of the
Total Political Subdivision VLDP OPEB Liability 119.59%
The total Political Subdivision VLDP OPEB liability is calculated by the System's actuary, and the plan's
fiduciary net position is reported in the System's financial statements. The net Political Subdivision VLDP
OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the
System's notes to the financial statements and required supplementary information.
THIS SPACE LEFT BLANK INTENTIONALLY
72
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on VRS 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 VRS System investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. The
target asset allocation and best estimate of arithmetic real rates of return for each major asset class are
summarized in the following table:
Weighted
Long-Term Arithmetic Average
Target Long-term Long-term
Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70%
Fixed Income 15.00% 0.57% 0.09%
Credit Strategies 14.00% 4.49% 0.63%
Real Assets 14.00% 4.76% 0.67%
Private Equity 14.00°/o 9.94% 1.39°/o
MAPS - Multi-Asset Public Strate 6.00% 3.29°/o 0.20%
PIP - Private Investment Partner; 3.00°/o 6.84% 0.21%
Total 100.00°/o 4.89%
Inflation 2.50%
Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for the
system, stochastic projections are employed to model future returns under various economic conditions.
These results provide a range of returns over various time periods that ultimately provide a median return
of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75% which is roughly at the
40th percentile of expected long-term results of the VRS fund asset allocation at that time, providing a
median return of 7.11%, including expected inflation of 2.5%.
73
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 11—VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN): (CONTINUED)
Discount Rate
The discount rate used to measure the total VLDP OPEB was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employer contributions will be made in accordance with the
VRS funding policy at rates equal to the actuarially determined contribution rates adopted by the VRS
Board of Trustees. Through the fiscal year ending June 30, 2021, the rate contributed by the County for
the VLDP was subject to the portion of the VRS Board-certified rates that are funded by the Virginia
General Assembly, which was 100% of the actuarially determined contribution rate. From July 1, 2021
on, all agencies are assumed to contribute 100% of the actuarially determined contribution rates. Based
on those assumptions, the VLDP OPEB plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees. Therefore, the long-
term expected rate of return was applied to all periods of projected benefit payments to determine the
total VLDP OPEB liability.
Sensitivity of the County's Proportionate Share of the VLDP Net OPEB Liability to Changes in the
Discount Rate
The following presents the County's proportionate share of the net VLDP OPEB liability using the
discount rate of 6.75%, as well as what the County's proportionate share of the net VLDP OPEB liability
would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one
percentage point higher(7.75%) than the current rate:
Rate
Proportionate Share of Net 1% Decrease Current Discount 1% Increase
VLDP OPEB Liability (5.75%) (6.75%) (7.75%)
Primary Government $ (442) $ (826) $ (1,158)
Public Service Authority $ (62) $ (115) $ (162)
School Board - Nonprofessional $ (421) $ (787) $ (1,104)
Political Subdivision VLDP OPEB Fiduciary Net Position
Detailed information about the VRS Political Subdivision VLDP's Fiduciary Net Position is available in the
separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the
2021 VRS Annual Report may be downloaded from the VRS website at
http://www.varetire.orq/pdf/publications/2021-annual-report.pdf, or by writing to the System's Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
74
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 12—TEACHER VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
Plan Description:
All full-time, salaried permanent (professional) employees of public school divisions who are in the VRS
Hybrid Retirement Plan benefit structure and whose employer has not elected to opt out of the VRS-
sponsored program are automatically covered by the VRS Teacher Employee Virginia Local Disability
Program (VLDP). This is a multiple-employer, cost-sharing plan administered by the Virginia Retirement
System (the System), along with pension and other OPEB plans, for eligible public employer groups in
the Commonwealth of Virginia. School divisions are required by Title 51.1 of the Code of Virginia, as
amended, to provide short-term and long-term disability benefits for their hybrid plan employees either
through a local plan or through the VLDP.
The specific information for the Teacher VLDP OPEB, including eligibility, coverage, and benefits is
described below:
Eligible Emp/oyees
The Teacher VLDP was implemented January 1, 2014 to provide short-term and long-term disability
benefits for non-work-related and work-related disabilities for employees with hybrid plan retirement
benefits. Eligible employees are enrolled automatically upon employment, unless their employer has
elected to provide comparable coverage. These employees include teachers and other full-time
permanent (professional) salaried employees of public school divisions covered under VRS.
Benefit Amounts
The Teacher VLDP provides a short-term disability benefit beginning after a seven-calendar-day waiting
period from the first day of disability. Employees become eligible for non-work-related short-term
disability coverage after one year of continuous participation in VLDP with their current employer. During
the first five years of continuous participation in VLDP with their current employer, employees are eligible
for 60% of their pre-disability income if they go out on non-work-related or work-related disability. Once
the eligibility period is satisfied, employees are eligible for higher income replacement levels.
The Teacher VLDP provides a long-term disability benefit beginning after 125 workdays of short-term
disability. Members are eligible if they are unable to work at all or are working fewer than 20 hours per
week. Members approved for long-term disability will receive 60% of their pre-disability income. If
approved for work-related long-term disability, the VLDP benefit will be offset by the workers'
compensation benefit. Members will not receive a VLDP benefit if their workers' compensation benefit is
greater than the VLDP benefit.
VLDP Notes
Members approved for short-term or long-term disability at age 60 or older will be eligible for a benefit,
provided they remain medically eligible. VLDP Long-Term Care Plan is a self-funded program that
assists with the cost of covered long-term care services.
75
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 12—TEACHER VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
(CONTINUED)
Contributions
The contribution requirements for active hybrid plan employees is governed by §51.1-1178(C) of the
Code of Virqinia, as amended, but may be impacted as a result of funding provided to school divisions by
the Virginia General Assembly. Each school division's contractually required employer contribution rate
for the year ended June 30, 2022 was 0.47% of covered employee compensation for employees in the
VRS Teacher VLDP. This rate was based on an actuarially determined rate from an actuarial valuation
as of June 30, 2019. The actuarially determined rate 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 from the school division to the VRS Teacher Employee VLDP were $7,854 and
$6,462 for the years ended June 30, 2022 and June 30, 2021, respectively.
Teacher VLDP OPEB Liabilities, Teacher VLDP OPEB Expense, and Deferred Outf/ows of
Resources and Deferred Inflows of Resources Related to Teacher VLDP OPEB
At June 30, 2022, the school division reported an asset of ($1,438) for its proportionate share of the
Teacher VLDP Net OPEB Liability. The Net Teacher VLDP OPEB Liability was measured as of June 30,
2021 and the total Teacher VLDP OPEB liability used to calculate the Net Teacher VLDP OPEB Liability
was determined by an actuarial valuation as of June 30, 2020 and rolled forward to the measurement
date of June 30, 2021. The school division's proportion of the Net Teacher VLDP OPEB Liability was
based on the school division's actuarially determined employer contributions to the Teacher VLDP OPEB
plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer
contributions for all participating employers. At June 30, 2021, the school division's proportion of the
Teacher VLDP was .20432% as compared to .20820% at June 30, 2020.
For the year ended June 30, 2022, the school division recognized Teacher VLDP OPEB expense of
$4,811. Since there was a change in proportionate share between measurement dates a portion of the
Teacher VLDP Net OPEB expense was related to deferred amounts from changes in proportion.
At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of
resources related to the Teacher VLDP OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ 719 $ 799
Net difference between projected and actual
earnings on Teacher VLDP OPEB program investments - 1,144
Change in assumptions 781 -
Changes in proportion - 341
Employer contributions subsequent to the
measurement date 7,854 -
Total $ 9,354 $ 2,284
76
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 12—TEACHER VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
(CONTINUED)
Teacher VLDP OPEB Liabilities, Teacher VLDP OPEB Expense, and Deferred Outflows of
Resources and Deferred Inflows of Resources Related to Teacher VLDP OPEB (confinued)
$7,854 reported as deferred outflows of resources related to the Teacher VLDP OPEB resulting from the
school division's contributions subsequent to the measurement date will be recognized as a reduction of
the Net Teacher VLDP OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to the Teacher VLDP OPEB
will be recognized in the Teacher VLDP OPEB expense in future reporting periods as follows:
Year Ended June 30
2023 $ (259)
2024 (261)
2025 (259)
2026 (303)
2027 16
Thereafter 282
Actuarial Assumptions
The total Teacher VLDP OPEB liability for the Teacher VLDP was based on an actuarial valuation as of
June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied
to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020.
Inflation 2.50%
Salary increases, including inflation 3.50%-5.95%
Investment rate of return 6.75%, net of plan investment expenses,
including inflation
Mortality Rates —Teachers
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110°/o of rates
for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set
forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for
males and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
77
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 12—TEACHER VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
(CONTINUED)
Actuarial Assumptions (continued)
Mortality Rates —Teachers (continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled) Update to Pub-2010 public sector mortality tables. For
future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates
Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
Net Teacher VLDP OPEB Liability
The net OPEB liability (NOL) for the Teacher VLDP represents the program's total OPEB liability
determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of
June 30, 2021, NOL amounts for the VRS Teacher VLDP is as follows (amounts expressed in
thousands):
Teacher
VLDP
OPEB Plan
Total Teacher VLDP OPEB Liability $ 4,884
Plan Fiduciary Net Position 5,590
Teacher VLDP Net OPEB Liability (Asset) $ (706)
Plan Fiduciary Net Position as a Percentage of the
Total Teacher VLDP OPEB Liability 114.46%
The total Teacher VLDP OPEB liability is calculated by the System's actuary, and the plan's fiduciary net
position is reported in the System's financial statements. The net Teacher VLDP OPEB liability is
disclosed in accordance with the requirements of GASB Statement No. 74 in the System's notes to the
financial statements and required supplementary information.
78
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 12—TEACHER VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
(CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on VRS 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 VRS System investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. The
target asset allocation and best estimate of arithmetic real rates of return for each major asset class are
summarized in the following table:
Weighted
Long-Term Arithmetic Average
Target Long-term Long-term
Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70%
Fixed Income 15.00% 0.57% 0.09%
Credit Strategies 14.00% 4.49% 0.63%
Real Assets 14.00% 4.76% 0.67%
Private Equity 14.00% 9.94% 1.39%
MAPS- Multi-Asset Public Strategies 6.00% 3.29% 0.20%
PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00°/o 4.89%
Inflation 2.50%
Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for the
System, stochastic projections are employed to model future returns under various economic conditions.
These results provide a range of returns over various time periods that ultimately provide a median return
of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75°/o which was roughly at
the 40th percentile of expected long-term results of the VRS fund asset allocation at that time, providing a
median return of 7.11%, including expected inflation of 2.50°/o.
Discount Rate
The discount rate used to measure the total Teacher VLDP OPEB was 6.75%. The projection of cash
flows used to determine the discount rate assumed that employer contributions will be made in
accordance with the VRS funding policy at rates equal to the actuarially determined contribution rates
adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate
contributed by the school division for the Teacher VLDP will be subject to the portion of the VRS Board-
certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially
determined contribution rate. From July 1, 2021 on, all agencies are assumed to continue to contribute
100% of the actuarially determined contribution rates. Based on those assumptions, the Teacher VLDP
OPEB plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-term expected rate of return was
applied to all periods of projected benefit payments to determine the total Teacher VLDP OPEB liability.
79
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 12—TEACHER VIRGINIA LOCAL DISABILITY PROGRAM (VLDP) (OPEB PLAN):
(CONTINUED)
Sensitivity of the Schoo/ Division's Proportionate Share of the Teacher VLDP Net OPEB Liability
to Changes in the Discount Rate
The following presents the school division's proportionate share of the Teacher net VLDP OPEB liability
using the discount rate of 6.75%, as well as what the school division's proportionate share of the net
VLDP OPEB liability would be if it were calculated using a discount rate that is one percentage point
lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate
1% Decrease Current Discount 1% Increase
(5.75°/a) (6.75%) (7.75°/a)
School division's proportionate
share of the Teacher
Net VLDP OPEB Liability $ (216) $ (1,438) $ (2,513)
Teacher Emp/oyee VLDP OPEB Fiduciary Net Position
Detailed information about the VRS Teacher VLDP's Fiduciary Net Position is available in the separately
issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS
Annual Report may be downloaded from the VRS website at
http://www.varetire.org/pdf/publications/2021-annual-report.pdf, or by writing to the System's Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT(HIC) PLAN (OPEB PLAN):
Plan Description
The Virginia Retirement System (VRS) Teacher Employee Health Insurance Credit (HIC) Program was
established pursuant to §51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the
authority under which benefit terms are established or may be amended. All full-time, salaried permanent
(professional) employees of public school divisions are automatically covered by the VRS Teacher
Employee HIC Plan. This is a cost-sharing multiple-employer plan administered by the Virginia
Retirement System (the System), along with pension and other OPEB plans, for public employer groups
in the Commonwealth of Virginia. Members earn one month of service credit toward the benefit for each
month they are employed and for which their employer pays contributions to VRS. The HIC is a tax-free
reimbursement in an amount set by the General Assembly for each year of service credit against
qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the
spouse or dependents. The credit cannot exceed the amount of the premiums and ends upon the
retiree's death.
80
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
(CONTINUED)
The specific information for the Teacher HIC OPEB, including eligibility, coverage, and benefits is
described below:
Eligible Emp/oyees
The Teacher Employee Retiree HIC Plan was established July 1, 1993 for retired Teacher Employees
covered under VRS who retire with at least 15 years of service credit. Eligible employees include full-time
permanent (professional) salaried employees of public school divisions covered under VRS. These
employees are enrolled automatically upon employment.
Benefit Amounts
The Teacher Employee HIC Plan is a defined benefit plan that provides a credit toward the cost of health
insurance coverage for retired teachers. For Teacher and other professional school employees who
retire, the monthly benefit is $4.00 per year of service per month with no cap on the benefit amount. For
Teacher and other professional school employees who retire on disability or go on long-term disability
under the Virginia Local Disability Program (VLDP), the monthly benefit is either: $4.00 per month,
multiplied by twice the amount of service credit, or $4.00 per month, multiplied by the amount of service
earned had the employee been active until age 60, whichever is lower.
HIC Plan Notes
The monthly HIC benefit cannot exceed the individual premium amount. Employees who retire after
being on long-term disability under VLDP must have at least 15 years of service credit to qualify for the
HIC as a retiree.
Contributions
The contribution requirements for active employees is governed by §51.1-1401(E) of the Code of
Virqinia, as amended, but may be impacted as a result of funding provided to school divisions by the
Virginia General Assembly. Each school division's contractually required employer contribution rate for
the year ended June 30, 2022 was 1.21% of covered employee compensation for employees in the VRS
Teacher Employee HIC Plan. This rate was based on an actuarially determined rate from an actuarial
valuation as of June 30, 2019. The actuarially determined rate 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 from the school division to the VRS Teacher Employee HIC Plan were
$56,048 and $55,201 for the years ended June 30, 2022 and June 30, 2021, respectively.
81
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
(CONTINUED)
Teacher Emp/oyee HIC OPEB Liabilities, Teacher Emp/oyee HIC OPEB Expense, and Deferred
Outflows of Resources and Deferred Inflows of Resources Related to the Teacher Employee HIC
OPEB
At June 30, 2022, the school division reported a liability of $662,065 for its proportionate share of the
VRS Teacher Employee Health Insurance Credit Net OPEB Liability. The Net VRS Teacher Employee
HIC OPEB Liability was measured as of June 30, 2021 and the total VRS Teacher Employee HIC OPEB
liability used to calculate the Net VRS Teacher Employee HIC OPEB Liability was determined by an
actuarial valuation performed as of June 30, 2020 and rolled forward to the measurement date of June
30, 2021. The school division's proportion of the Net VRS Teacher Employee HIC OPEB Liability was
based on the school division's actuarially determined employer contributions to the VRS Teacher
Employee HIC OPEB plan for the year ended June 30, 2021 relative to the total of the actuarially
determined employer contributions for all participating employers. At June 30, 2021, the school division's
proportion of the VRS Teacher Employee HIC Plan was .05158% as compared to 0.05270% at June 30,
2020.
For the year ended June 30, 2022, the school division recognized VRS Teacher Employee HIC OPEB
expense of $38,795. Since there was a change in proportionate share between measurement dates, a
portion of the VRS Teacher Employee HIC Net OPEB expense was related to deferred amounts from
changes in proportion.
At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of
resources related to the VRS Teacher Employee HIC OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ - $ 11,553
Net difference between projected and actual
earnings on Teacher HIC OPEB plan investments - 8,721
Change in assumptions 17,897 2,661
Change in proportion - 64,062
Employer contributions subsequent to the
measurement date 56,048 -
Total $ 73,945 $ 86,997
82
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
(CONTINUED)
Teacher Emp/oyee HIC OPEB Liabilities, Teacher Emp/oyee HIC OPEB Expense, and Deferred
Outflows of Resources and Deferred Inflows of Resources Related to the Teacher Employee HIC
OPEB (continued)
$56,048 reported as deferred outflows of resources related to the Teacher Employee HIC OPEB
resulting from the school division's contributions subsequent to the measurement date will be recognized
as a reduction of the Net Teacher Employee HIC OPEB Liability in the fiscal year ending June 30, 2023.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
the Teacher Employee HIC OPEB will be recognized in the Teacher Employee HIC OPEB expense in
future reporting periods as follows:
Year Ended June 30,
2023 $ (15,935)
2024 (16,034)
2025 (14,990)
2026 (12,291)
2027 (6,522)
Thereafter (3,328)
Actuarial Assumptions
The total Teacher Employee HIC OPEB liability for the VRS Teacher Employee Health Insurance Credit
Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost
method and the following assumptions, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50%-5.95%
Investment rate of return 6.75%, net of investment expenses,
including inflation
Mortality Rates —Teachers
Pre-Retirement:
Pub-2010 Amount Weighted Teacher Employee Rates projected generationally; 110% of rates for
males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set
forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for
males and females
83
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
(CONTINUED)
Actuarial Assumptions (continued)
Mortality Rates —Teachers (continued)
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
Net Teacher Employee HIC OPEB Liability
The net OPEB liability (NOL) for the Teacher Employee HIC Program represents the program's total
OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net
position. As of June 30, 2021, NOL amounts for the VRS Teacher Employee HIC Program is as follows
(amounts expressed in thousands):
Teacher
Employee HIC
OPEB Plan
Total Teacher Employee HIC OPEB Liability $ 1,477,874
Plan Fiduciary Net Position 194,305
Teacher Employee net HIC OPEB Liability(Asset) $ 1,283,569
Plan Fiduciary Net Position as a Percentage
of the Total Teacher Employee HIC OPEB Liability 13.15%
The total Teacher Employee HIC OPEB liability is calculated by the System's actuary, and the plan's
fiduciary net position is reported in the System's financial statements. The net Teacher Employee HIC
OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the
System's notes to the financial statements and required supplementary information.
84
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
(CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on the VRS 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 VRS System investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major
asset class are summarized in the following table:
Weighted
Long-Term Arithmetic Average
Target Long-term Long-term
Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00°/a 1.70%
Fixed Income 15.00°/a 0.57% 0.09%
Credit Strategies 14.00% 4.49% 0.63%
Real Assets 14.00°/o 4.76% 0.67%
Private Equity 14.00% 9.94% 1.39%
MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20%
PIP - Private Investment Partnership 3.00% 6.84% 0.21°/o
Total 100.00% 4.89%
Inflation 2.50%
Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for the
system, stochastic projections are employed to model future returns under various economic conditions.
These results provide a range of returns over various time periods that ultimately provide a median return
of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of 6.75% which was roughly at the 40t"
percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median
return of 7.11%, including expected inflation of 2.50%.
85
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 13—TEACHER EMPLOYEE HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
(CONTINUED)
Discount Rate
The discount rate used to measure the total Teacher Employee HIC OPEB was 6.75%. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made in
accordance with the VRS funding policy and at rates equal to the actuarially determined contribution
rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate
contributed by each school division for the VRS Teacher Employee HIC Plan will be subject to the
portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was
100% of the actuarially determined contribution rate. From July 1, 2021 on, all agencies are assumed to
continue to contribute 100% of the actuarially determined contribution rates. Based on those
assumptions, the Teacher Employee HIC OPEB plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments
to determine the total Teacher Employee HIC OPEB liability.
Sensitivity of the School Division's Proportionate Share of the Teacher Emp/oyee H/C Net OPEB
Liability to Changes in the Discount Rate
The following presents the school division's proportionate share of the VRS Teacher Employee HIC
Program net HIC OPEB liability using the discount rate of 6.75°/o, as well as what the school division's
proportionate share of the net HIC OPEB liability would be if it were calculated using a discount rate that
is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate
1% Decrease Current Discount 1% Increase
(5.75°/a) (6.75%) (7.75%)
School division's proportionate
share of the VRS Teacher
Employee HIC OPEB Plan
Net HIC OPEB Liability $ 745,302 $ 662,065 $ 591,627
Teacher Employee HIC OPEB Fiduciary Net Position
Detailed information about the VRS Teacher Employee HIC Plan's Fiduciary Net Position is available in
the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the
2021 VRS Annual Report may be downloaded from the VRS website at
http://www.varetire.org/pdf/publications/2021-annual-report.pdf, or by writing to the System's Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
86
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 14—HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN):
Plan Description
The Political Subdivision Health Insurance Credit (HIC) Plan was established pursuant to §51.1-1400 et
seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are
established or may be amended. All full-time, salaried permanent employees of participating political
subdivisions are automatically covered by the VRS Political Subdivision HIC Plan upon employment.
This is an agent multiple-employer plan administered by the Virginia Retirement System (the System),
along with pension and other OPEB plans, for public employer groups in the Commonwealth of Virginia.
Members earn one month of service credit toward the benefit for each month they are employed and for
which their employer pays contributions to VRS. The HIC is a tax-free reimbursement in an amount set
by the General Assembly for each year of service credit against qualified health insurance premiums
retirees pay for single coverage, excluding any portion covering the spouse or dependents. The credit
cannot exceed the amount of the premiums and ends upon the retiree's death.
The specific information about the Political Subdivision HIC Plan OPEB, including eligibility, coverage
and benefits is described below:
Eligible Emp/oyees
The Political Subdivision Retiree HIC Plan was established July 1, 1993 for retired political subdivision
employees of employers who elect the benefit and retire with at least 15 years of service credit. Eligible
employees include full-time permanent salaried employees of the participating political subdivision who
are covered under the VRS pension plan. These employees are enrolled automatically upon
employment.
Benefit Amounts
The Political Subdivision Retiree HIC Plan is a defined benefit plan that provides a credit toward the cost
of health insurance coverage for retired political subdivision employees of participating employers. For
employees who retire, the monthly benefit is $1.50 per year of service per month with a maximum benefit
of $45.00 per month. For employees who retire on disability or go on long-term disability under the
Virginia Local Disability Program (VLDP), the monthly benefit is $45.00 per month.
HIC Plan Notes
The monthly HIC benefit cannot exceed the individual premium amount. There is no HIC for premiums
paid and qualified under LODA; however, the employee may receive the credit for premiums paid for
other qualified health plans. Employees who retire after being on long-term disability under VLDP must
have at least 15 years of service credit to qualify for the HIC as a retiree.
87
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 14—HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN): (CONTINUED)
Emp/oyees Covered by Benefit Terms
As of the June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms
of the HIC OPEB plan:
Component Unit
School Board
Nonprofessional
Inactive members or their beneficiaries currently receiving
benefits 17
Active members 27
Total covered employees 44
Contributions
The contribution requirements for active employees is governed by §51.1-1402(E) of the Code of
Virqinia, as amended, but may be impacted as a result of funding options provided to political
subdivisions by the Virginia General Assembly. The School Board's contractually required employer
contribution rate for the year ended June 30, 2022 was 1.23% of covered employee compensation. This
rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2020. The
actuarially determined rate 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 from the
School Board for nonprofessional employees to the HIC Plan were $7,892 and $7,779 for the years
ended June 30, 2022 and June 30, 2021, respectively.
During the 2020 session, House Bill 1513 was enacted. This bill required the addition of Health
Insurance Credit benefits for non-teacher employees effective July 1, 2021. While benefit payments
became effective July 1, 2021, employers were required to pre-fund the benefits beginning July 1, 2020.
The bill impacted 95 employers and resulted in approximately $2.5 million of additional employer
contributions in FY 2021.
Net HIC OPEB Liability
The School Board's net HIC OPEB liability was measured as of June 30, 2021. The total HIC OPEB
liability was determined by an actuarial valuation perFormed as of June 30, 2020, using updated actuarial
assumptions, applied to all periods included in the measurement and rolled forward to the measurement
date of June 30, 2021.
88
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 14—HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN): (CONTINUED)
Actuarial Assumptions (continued)
The total HIC OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry
Age Normal actuarial cost method and the following assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation:
Locality- General employees 3.50%-5.35%
Investment rate of return 6.75%, net of investment expenses,
including inflation
Mortality Rates — Non-Largest Ten Locality Employers — General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95°/o of rates for
males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of
rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95°/o of rates for
males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110%
of rates for males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-
2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Dut Disabilit No chan e
Discount Rate No change
89
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 14—HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN): (CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on the System's 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 System's investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. The
target asset allocation and best estimate of arithmetic real rates of return for each major asset class are
summarized in the following table:
Weighted
Long-Term Arithmetic Average
Target Long-term Long-term
Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00°/a 1.70%
Fixed Income 15.00% 0.57% 0.09%
Credit Strategies 14.00% 4.49°/o 0.63%
Real Assets 14.00% 4.76% 0.67%
Private Equity 14.00% 9.94% 1.39%
MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20%
PIP- Private Investement Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50%
Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for the
System, stochastic projections are employed to model future returns under various economic conditions.
These results provide a range of returns over various time periods that ultimately provide a median return
of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75°/o which was roughly at
the 40t" percentile of expected long-term results of the VRS fund asset allocation at that time, providing a
median return of 7.11%, including expected inflation of 2.50°/o.
Discount Rate
The discount rate used to measure the total HIC OPEB liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that 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 ended June
30, 2021, the rate contributed by the entity for the HIC OPEB was 100% of the actuarially determined
contribution rate. From July 1, 2021 on, employers are assumed to continue to contribute 100% of the
actuarially determined contribution rates. Based on those assumptions, the HIC OPEB's 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 HIC OPEB liability.
90
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 14—HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN): (CONTINUED)
Changes in Net H/C OPEB Liability
Component School Board (nonprofessional)
Increase (Decrease)
Total Plan Net
HIC OPEB Fiduciary HIC OPEB
Liability Net Position Liability (Asset)
(a) (b) (a) - (b)
Balances at June 30, 2020 $ 113,648 $ 8,021 $ 105,627
Changes for the year:
Service cost $ 949 $ - $ 949
Interest 7,403 - 7,403
Differences between expected
and actual experience (1,481) - (1,481)
Assumption changes 3,108 - 3,108
Contributions - employer - 7,779 (7,779)
Net investment income - 1,992 (1,992)
Benefit payments (7,951) (7,951) -
Administrative expenses - (24) 24
Net changes $ 2,028 $ 1,796 $ 232
Balances at June 30, 2020 $ 115,676 $ 9,817 $ 105,859
Sensitivity of the School Board's HIC Net OPEB Liability to Changes in the Discount Rate
The following presents the School Boards HIC Program net HIC OPEB liability using the discount rate of
6.75%, as well as what the School Board's net HIC OPEB liability would be if it were calculated using a
discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the
current rate:
Rate
1% Decrease Current Discount 1% Increase
(5.75%) (6.75%) (7.75%)
School Board (nonprofessional)
Net HIC OPEB Liability $ 116,649 $ 105,859 $ 96,562
91
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 14—HEALTH INSURANCE CREDIT (HIC) PLAN (OPEB PLAN): (CONTINUED)
HIC Program OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to HIC Program OPEB
For the year ended June 30, 2022, the School Board recognized HIC Plan OPEB expense of$13,034. At
June 30, 2022, the School Board reported deferred outflows of resources and deferred inflows of
resources related to the School Board's HIC Program from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ 6,577 $ 1,128
Net difference between projected and actual
earnings on HIC OPEB plan investments - 878
Change in assumptions 2,994 -
Employer contributions subsequent to the
measurement date 7,892 -
Total $ 17,463 $ 2,006
$7,892 reported as deferred outflows of resources related to the HIC OPEB resulting from the School
Board's contributions subsequent to the measurement date will be recognized as a reduction of the Net
HIC OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to the HIC OPEB will be recognized in the HIC
OPEB expense in future reporting periods as follows:
Year Ended June 30
2023 $ 5,232
2024 2,369
2025 178
2026 (214)
2027 -
Thereafter -
HIC Program Plan Data
Information about the VRS Political Subdivision HIC Program is available in the separately issued VRS
2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report
may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-
report.pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-
2500.
92
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 15—MEDICAL, DENTAL, AND PRESCRIPTION INSURANCE — PAY AS YOU GO (OPEB
PLAN):
Plan Description
In addition to the pension and other postemployment benefits described in Notes 9-14, the County
administers a single-employer defined benefit healthcare plan, the County of Bath OPEB Plan. The plan
provides post-employment health care benefits to all eligible permanent employees of the County and
School Board who meet the requirements under the County's pension plans. The plan does not issue a
publicly available financial report.
Benefits Provided
Post-employment benefits are provided to eligible retirees include Medical, Dental, and Prescription
insurance. The benefits that are provided for active employees are the same for eligible retirees, spouses
and dependents of eligible retirees. All permanent employees of the County and School Board who meet
eligibility requirements of the pension plan are eligible to receive post-employment health care benefits if
they have at least 5 years of service with the County or School Board.
Plan Membership
At July 1, 2021 (the measurement date), the following employees were covered by the benefit terms:
Primary
Government
and
Component
Unit School
Board
Total active employees with coverage 167
Total retirees with coverage 3
Total 170
Contributions
The County and School Board do not pre-fund benefits; therefore, no assets are accumulated in a trust
fund. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis.
The funding requirements are established and may be amended by the County or the School board for
the respective plans. The amount paid by the School Board for OPEB as the benefits came due during
the year ended June 30, 2021 was $27,500. No benefits came due for the Primary Government.
Total OPEB Liability
The County's and School Board's total OPEB liabilities were measured as of July 1, 2021. The total
OPEB liabilities were determined by actuarial valuations as July 1, 2020.
93
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 15—MEDICAL, DENTAL, AND PRESCRIPTION INSURANCE — PAY AS YOU GO (OPEB
PLAN): (CONTINUED)
Actuarial Assumptions
The total OPEB liability in the July 1, 2020 actuarial valuations for the County and for the School Board
were determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified.
Salary Increases 2.50% per year for general salary inflations
Discount Rate The discount rate has been set to equal 1.92% representing
the Municipal GO AA 20-year yield curve rate as of July 1,
2021
Investment Rate of Return N/A
Mortality rates for Active employees and healthy retirees were based on a RP-2014 Mortality Table, fully
generational with base year 2006, projected using two-dimensional mortality improvement scale MP-
2021.
The date of the most recent actuarial experience study for which significant assumptions were based is
not available.
Discount Rate
The discount rate used when OPEB plan investments are insufficient to pay for future benefit payments
is selected from a range of 20-Year Municipal Bond Indices and include the Bond Buyer 11-Bond GO
Index, the S&P Municipal Bond 20-Year High Grade Rate Index, and the Fidelity 20-Year GO Municipal
Bond Index. The final equivalent single discount rate used for this year's valuation is 1.92% as of the end
of the fiscal year with the expectation that the County and School Board will continue contributing the
Actuarially Determined Contribution and paying the pay-go cost.
Changes in Total OPEB Liability
Component
Primary Unit School
Government Board
TotaIOPEB TotaIOPEB
Liability Liability
Balances at June 30, 2020 $ 280,300 $ 302,900
Changes for the year:
Service cost 24,100 24,400
Interest 7,500 8,300
Difference between expected
and actual experience (39,200) (77,500)
Changes in assumptions 12,400 9,600
Benefit payments - 27,500
Net changes 4,800 (7,700)
Balances at June 30, 2021 $ 285,100 $ 295,200
94
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 15—MEDICAL, DENTAL, AND PRESCRIPTION INSURANCE — PAY AS YOU GO (OPEB
PLAN): (CONTINUED)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following amounts present the total OPEB liabilities of the County and School Board, as well as what
the total OPEB liabilities would be if it were calculated using a discount rate that is one percentage point
lower (0.92%) or one percentage point higher (2.92%) than the current discount rate:
Rate
1% Decrease Current Discount 1% Increase
(.92%) Rate (1.92%) (2.92%)
Primary Government
$ 306,373 $ 285,100 $ 265,202
Component Unit School Board
$ 317,227 $ 295,200 $ 274,598
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liabilities of the County and School Board, as well as what the
total OPEB liabilities would be if it were calculated using healthcare cost trend rates that are one
percentage point lower (5.00%) or one percentage point higher (7.00%) than the current healthcare cost
trend rates:
Rates
Healthcare Cost
1% Decrease Trend 1% Increase
(5.00% decreasing (6.00% decreasing (7.00% decreasing
to 4.00%) to 5.00%) to 6.00%)
Primary Government
$ 252,232 $ 285,100 $ 323,176
Component Unit School Board
$ 261,168 $ 295,200 $ 334,624
95
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 15—MEDICAL, DENTAL, AND PRESCRIPTION INSURANCE — PAY AS YOU GO (OPEB
PLAN): (CONTINUED)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended June 30, 2022, the Primary Government recognized OPEB expense in the amount of
($13,600). The School Board recognized OPEB expense in the amount of ($67,800). At June 30, 2022,
the Primary Government and School Board reported deferred outflows of resources and deferred inflows
of resources related to OPEB from the following sources:
Primary Government Component Unit School Board
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resouces of Resources of Resouces of Resources
Differences between expected
and actual experience $ - $ 406,549 $ - $ 420,951
Changes in assumptions 29,232 16,262 30,268 16,838
Employer contributions subsequent
to the measurement date - - 27,500 -
Total $ 29,232 $ 422,811 $ 57,768 $ 437,789
$27,500 reported as deferred outflows related to OPEB resulting from the School Board's contribution
subsequent to the measurement date will be recognized as a reduction in the net OPEB liability in the
fiscal year ended June 30, 2023. Amounts reported as deferred outflows of resources and deferred
inflows of resources will be recognized in OPEB expense in future reporting periods as follows:
Primary Government Component Unit School Board
Year Ended June 30, Year Ended June 30,
2023 $ (74,333) 2023 $ (76,967)
2024 (74,333) 2024 (76,967)
2025 (74,333) 2025 (76,967)
2026 (74,333) 2026 (76,967)
2027 (56,843) 2027 (58,857)
Thereafter (39,404) Thereafter (40,796)
Additional disclosures on changes in net OPEB liability and related ratios can be found on the required
supplementary information following the notes to the financial statements.
96
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 16-SUMMARY OF POSTEMPLOYMENT BENEFIT (OPEB) PLANS:
The following is a summary of the County's OPEB plans as of June 30, 2022:
Net OPEB
Deferred Deferred Liability/ OPEB
Outflows Inflows (Asset) Expense
OPEB Plans:
Primary Government
Group Life Insurance Program (Note 10) $ 42,155 $ 61,187 $ 143,943 $ 3,678
Virginia Local Disability Program (Note 11) 4,772 1,947 (826) 2,289
Stand-Alone Plan (Note 12) 29,232 422,811 285,100 1( 3,600)
Total OPEB Plans- Primary Government $ 76,159 $ 485,945 $ 428,217 $ 7,633
Public Service Authority
Group Life Insurance Program (Note 10) $ 5,736 $ 8,546 $ 20,103 $ 514
Virginia Local Disability Program (Note 11) 625 271 (115) 320
Total OPEB Plans - Public Service Authority $ 6,361 $ 8,817 $ 19,988 $ 834
School Board
Group Life Insurance (Note 10):
School Board Professional $ 68,556 $ 126,095 $ 257,304 $ 2,110
School Board Nonprofessional 9,532 19,337 35,627 (383)
Health Insurance Credit Program:
School Board Professional (Note 13) 73,945 86,997 662,065 38,795
School Board Nonprofessional Note 14) 17,463 2,006 105,859 13,034
Virginia Local Disability Program
School Board Professional (Note 12) 9,354 2,284 (1,438) 4,811
School Board Nonprofessional (Note 11) 3,299 2,004 (787) 2,123
Stand-Alone Plan (Note 15) 57,768 437,789 295,200 6( 7,800)
Total OPEB Plans- School Board $ 239,917 $ 676,512 $ 1,353,830 $ 7,310
THIS SPACE LEFT BLANK INTENTIONALLY
97
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 17—DEFERRED/ UNAVAILABLE/ UEARNED REVENUE:
Deferred/ unavailable/ unearned revenue represents amounts for which asset recognition criteria have
been met, but for which revenue recognition criteria have not been met. The following is a summary of
deferred and unavailable revenue for the year ended June 30, 2022:
Government-
wide Financial Fund Financial
Statements Statements
Primary Government deferred/unavailable property tax revenue:
Unavailable revenue representing uncollected property tax billings
for the second half of calendar year 2020. The uncollected tax
billings are not available for the funding of current expenditures. $ - $ 211,978
Deferred prepaid property tax revenues representing collections
received for property taxes that are applicable to the subsequent
budget year. 26,036 26,036
Total primary government deferred/unavailable revenue $ 26,036 $ 238,014
Primary Government deferred/unavailable opioid settlement revenue:
Unavailable revenue representing opioid settlement proceeds to
be distributed to the County annually through fiscal year 2039. $ - $ 41,810
Total primary government deferred/unavailable revenue $ 26,036 $ 279,824
Unearned revenue of the Primary Government, Component Unit School Board, and Component Unit
Services Authority, totaling $780,158, $134,500, and $3,662,574 is comprised of the following:
Payments in Lieu of Taxes — Unearned revenue representing payments in lieu of taxes not available for
funding of current expenditures totaled $377,405 and $134,500 for the Primary Government and
Component Unit School Board, respectively.
Unearned Grant Revenue — The County has received grant funding under the American Recovery Plan
Act State and Local Fiscal Recovery funding and the unspent portion of the grant award as of June 30,
2022 amounted to $402,753.
Prepaid Capital Expenditures — The Bath County Public Service Authority entered into a contract with
Warm Springs Investment, LLC (WSIC) to provide Wastewater Treatment and Water Supply upgrades to
the customers located within Homestead Preserve when such upgrades are deemed necessary based
on the number of customers being served. WSIC is making yearly payments to the PSA to offset these
future expenses. To date the PSA has received $3,296,613 from WSIC.
Prepaid Development Fees — Development fees prepaid to the Bath County Public Service Authority by
the WSIC totaled $319,044 at June 30, 2022.
Prepaid Water and Sewer Fees — Prepaid fees for water and sewer usage received from customers
amounted to $46,917 at June 30, 2022.
98
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 18—CAPITAL ASSETS:
Capital asset activity for the year ended June 30, 2022 was as follows:
Primary Government Governmental Activities:
Balance Balance
July 1, GASB 87 Transfers/ June 30,
2021 Adjustment Reclassifications Increases Decreases 2022
Capital assets not being depreciated:
Land $ 634,478 - $ - $ - $ - $ 634,478
Construction in progress 132,761 - - 589,695 (630,486) 91,970
Total capital assets not being
depreciated $ 767,239 $ - $ - $ 589,695 $ (630,486) $ 726,448
Capital assets being depreciated:
Buildings and improvements $ 5,089,464 - $ (1,065,000) $ 630,487 $ (44,286) $ 4,610,665
Machinery and equipment 2,280,521 - - 118,010 (25,475) 2,373,056
Total capital assets being
depreciated $ 7,369,985 $ - $ (1,065,000) $ 748,497 $ (69,761) $ 6,983,721
Accumulated depreciation:
Buildings and improvements $ (3,428,090) - $ 881,360 $ (89,307) $ 15,500 $ (2,620,537)
Machineryandequipment (1,804,929) - - (189,957) 25,475 (1,969,411)
Total accumulated depreciation $ (5,233,019) - $ 881,360 $ (279,264) $ 40,975 $ (4,589,948)
Capital assets being depreciated, net $ 2,136,966 - $ (183,640) $ 469,233 $ (28,786) $ 2,393,773
Net capital assets $ 2,904,205 - $ (183,640) $ 1,058,928 $ (659,272) $ 3,120,221
Lease assets:
Equipment $ - $ 58,975 $ - $ - $ - $ 58,975
Accumulated amortization:
Equipment $ - $ - $ - $ (29,488) $ - $ (29,488)
Net right-to-use lease assets $ - $ 58,975 $ - $ (29,488) $ - $ 29,487
Net capital assets $ 2,904,205 $ 58,975 $ (183,640) $ 1,029,440 $ (659,272) $ 3,149,708
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government administration $ 112,504
Judicial administration 9,649
Public safety 50,241
Public works 135,773
Parks, recreation, cultural 585
Total depreciation expense - governmental activities $ 308,752
99
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 18—CAPITAL ASSETS: (CONTINUED)
Discretely Presented Component Units:
Component Unit School Board:
Balance Balance
July 1, GASB 87 Transfers/ June 30,
2021 Adjustments Reclassification Increases Decreases 2022
Capital assets not being depreciated:
Land and land improvements $ 238,282 $ - $ - $ - $ - $ 238,282
Construction in progress 28,816 - - 902,818 (128,500) 803,134
Total capital assets not being
depreciated $ 267,098 $ - $ - $ 902,818 $ (128,500) $ 1,041,416
Capital assets being depreciated:
Buildings and improvements $ 23,857,389 $ - $ 1,065,000 $ 60,500 $ - $ 24,982,889
Machinery and equipment 4,217,912 - - 343,794 - 4,561,706
Total capital assets being
depreciated $ 28,075,301 $ - $ 1,065,000 $ 404,294 $ - $ 29,544,595
Accumulated depreciation:
Buildings and improvements $ (12,334,308) $ - $ (881,360) $ (476,992) $ - $ (13,692,660)
Machinery and equipment (2,618,798) - - (387,302) - (3,006,100)
Total accumulated depreciation $ (14,953,106) $ - $ (881,360) $ (864,294)$ - $ (16,698,760)
Capital assets being depreciated,net $ 13,122,195 $ - $ 183,640 $ (460,000) $ - $ 12,845,835
Net capital assets $ 13,389,293 $ - $ 183,640 $ 442,818 $ (128,500) $ 13,887,251
Lease assets:
Equipment $ - $ 31,080 $ - $ - $ - $ 31,080
Accumulated amortization:
Equipment $ - $ - $ - $ (6,660) $ $ (6,660)
Net right-to-use lease assets $ - $ 31,080 $ - $ (6,660) $ - $ 24,420
Net capital assets $ 13,389,293 $ 31,080 $ 183,640 $ 436,158 $ (128,500) $ 13,911,671
Depreciation expense allocated to
education $ 1,752,314
Legislation enacted during the year ended June 30, 2002, Section 15.2-1800.1 of the Code of Virginia,
1950, as amended, has changed the reporting of local school capital assets and related debt for financial
statement purposes. Historically, debt incurred by local governments on-behalf of school boards was
reported in the school board's discrete column along with the related capital assets. Under the new law,
local governments have a tenancy in common with the school board whenever the locality incurs any
financial obligation for any school property which is payable over more than one fiscal year. For financial
reporting purposes, the legislation permits the locality to report the portion of school property related to
any outstanding financial obligation eliminating any potential deficit from capitalizing assets financed with
debt. The Primary Government carried school financed assets and related accumulated depreciation as
a result of debt financed school improvements. During the year ended June 30, 2022, the outstanding
financial obligation for school property was paid off, thus the remaining book value of school financed
assets in the amount of$183,640 was transferred to the School Board.
100
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 18—CAPITAL ASSETS: (CONTINUED)
Discretely Presented Component Units: (continued)
Service Authority:
Capital asset activity for the Service Authority for the year ended June 30, 2022 was as follows:
Balance Balance
July 1, June 30,
2021 Increases Decreases 2022
Capital assets not being depreciated:
Land $ 116,187 $ - $ - $ 116,187
Construction in progress 55,339 1,549 - 56,888
Total capital assets not
being depreciated $ 171,526 $ 1,549 $ - $ 173,075
Capital assets being depreciated:
Water System $ 10,853,734 $ 24,391 $ - $ 10,878,125
Sewer System 11,049,007 60,721 - 11,109,728
Machinery and equipment 500,237 32,887 - 533,124
Total capital assets being
depreciated $ 22,402,978 $ 117,999 $ - $ 22,520,977
Accumulated depreciation:
Water System $ (6,402,805) $ (267,178) $ - $ (6,669,983)
Sewer System (8,461,612) (179,641) - (8,641,253)
Machinery and equipment (451,556) (14,563) - (466,119)
Total accumulated depreciation $ (15,315,973) $ (461,382) $ - $ (15,777,355)
Capital assets being
depreciated, net $ 7,087,005 $ (343,383) $ - $ 6,743,622
Net capital assets $ 7,258,531 $ (341,834) $ - $ 6,916,697
Depreciation expense for the Service Authority amounted to $461,382.
NOTE 19—CONTINGENT LIABILITIES:
Federal programs in which the County participates were audited in accordance with the provisions of the
Uniform Guidance. Pursuant to the provisions of this guidance all major programs and certain other
programs were tested for compliance with applicable grant requirements. While no matters of
noncompliance were disclosed by audit, the Federal Government may subject grant programs to
additional compliance tests which may result in disallowed expenditures. In the opinion of management,
any future disallowances of current grant program expenditures, if any, would be immaterial.
101
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 20—SURETY BONDS:
Hartford Accident and Indemnity Company:
Annette T. Loan, Clerk of Circuit Court $ 5,000
Pam Webb, Treasurer 500,000
Angel M. Grimm, Commissioner of the Revenue 3,000
Robert Plecker, Sheriff 5,000
Roy Burns, Supervisor 1,000
Lee Fry, Supervisor 1,000
Ron Shifflett, Supervisor 1,000
Edward T. Hicklin, Supervisor 1,000
Shelton Burns, Supervisor 1,000
All County employees; blanket bond 175,000
Virginia School Board Association Property and Casualty Pool:
Rick N. Bolling, Superintendent of Schools 10,000
Justin S. Rider, Finance Director 10,000
All School Board employees; blanket bond 1,000,000
Nationwide Insurance:
Department of Social Services - Director and Employees 250,000
Western Surety Company:
County Administrator 2,000
NOTE 21—RISK MANAGEMENT:
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The County joined together
with other local governments in Virginia to form the Virginia Municipal Group Self Insurance Association,
a public entity risk pool currently operating as a common risk management and insurance program for
participating local governments. The County pays an annual premium to the Association for its general
workers compensation insurance coverage. In the event of a loss deficit and depletion of all available
excess insurance, the Association may assess all members in the proportion which the premium of each
bears to the total premiums of all members in the year in which such deficit occurs.
The County continues to carry commercial insurance for all other risks of loss, including general liability
and employee health and accident insurance. Settled claims resulting from these risks have not
exceeded commercial insurance coverage in any of the past four fiscal years.
NOTE 22—LITIGATION CLAIMS AND ASSESSMENTS:
At June 30, 2022, there were no matters of litigation involving the County or which would materially affect
the County's financial position should any court decisions on pending matters not be favorable to such
entities.
102
COUNTY OF BATH,VIRGINIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022 (CONTINUED�
NOTE 23—UPCOMING PRONOUNCEMENTS:
Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period,
provides guidance for reporting capital assets and the cost of borrowing for a reporting period and
simplifies accounting for interest cost incurred before the end of a construction period. The requirements
of this Statement are effective for fiscal years beginning after December 31, 2022.
Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt
obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by
issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The
requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
Statement No. 94, Public-Private and Public-Public Partnerships and Availability of Payment
Arrangements, addresses issues related to public-private and public-public partnership arrangements.
This Statement also provides guidance for accounting and financial reporting for availability payment
arrangements. The requirements of this Statement are effective for fiscal years beginning after June 15,
2022.
Statement No. 94, Public-Private and Public-Public Partnerships and Availability of Payment
Arrangements, addresses issues related to public-private and public-public partnership arrangements.
This Statement also provides guidance for accounting and financial reporting for availability payment
arrangements. The requirements of this Statement are effective for reporting periods fiscal years
beginning after June 15, 2022.
Statement No. 99, Omnibus 2022, addresses (1) practice issues that have been identified during
implementation and application of certain GASB Statements and (2) accounting and financial reporting
for financial guarantees. The effective dates differ based on the requirements of the Statement, ranging
from April 2022 to for fiscal years beginning after June 15, 2023.
Statement No. 100, Accounting Changes and Error Corrections — an amendment of GASB Statement
No. 62, provides more understandable, reliable, relevant, consistent, and comparable information for
making decisions or assessing accountability for accounting changes and error corrections. The
requirements of this Statement are effective for fiscal years beginning after June 15, 2023.
Statement No. 101, Compensated Absences, updates the recognition and measurement guidance for
compensated absences. It aligns the recognition and measurement guidance under a unified model and
amends certain previously required disclosures. The requirements of this Statement are effective for
fiscal years beginning after December 15, 2023.
103
REQUIRED SUPPLEMENTARY INFORMATION
(Note: Presented budgets were prepared in accordance with accounting
principles generally accepted in the United States of America.)
County of Bath,Virginia Exhibit 7
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual
Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget-
Actual Positive
Original Final Amounts (Negative)
REVENUES
General propertytaxes $ 12,661,319 $ 12,661,319 $ 12,291,027 $ (370,292)
Other local taxes 1,889,620 1,889,620 2,296,145 406,525
Permits, privilege fees, and regulatory licenses 41,100 47,850 184,391 136,541
Fines and forfeitures 2,000 2,000 1,373 (627)
Revenue from the use of money and property 25,000 25,000 29,494 4,494
Charges for services 63,750 63,750 95,672 31,922
Miscellaneous 51,636 55,361 143,687 88,326
Recovered costs - 73,212 94,404 21,192
Intergovernmental:
Commonwealth 1,405,948 1,405,948 1,522,344 116,396
Federal 755,281 755,281 391,111 (364,170)
Total revenues $ 16,895,654 $ 16,979,341 $ 17,049,648 $ 70,307
EXPENDITURES
Cu rrent:
General government administration $ 1,478,293 $ 1,501,203 $ 1,353,926 $ 147,277
Judicial administration 507,106 527,996 505,102 22,894
Public safety 2,969,800 3,333,884 3,227,316 106,568
Public works 1,762,030 1,412,030 1,305,339 106,691
Health and welfare 296,588 296,588 293,283 3,305
Education 8,176,062 8,176,062 7,617,560 558,502
Parks, recreation, and cultural 574,571 598,149 553,773 44,376
Community development 377,043 383,773 308,700 75,073
Nondepartmental 254,858 175,206 132,495 42,711
Capital projects 510,000 1,796,232 1,421,374 374,858
Debt service:
Principal retirement 1,062,409 1,062,409 1,065,000 (2,591)
Interest and other fiscal charges 26,553 26,553 26,553 -
Total expenditures $ 17,995,313 $ 19,290,085 $ 17,810,421 $ 1,479,664
Excess(deficiency)of revenues over(under)
expenditures $ (1,099,659) $ (2,310,744) $ (760,773) $ 1,549,971
OTHER FINANCING SOURCES(USES)
Transfers out $ (358,371) $ (362,151) $ (178,809) $ 183,342
Total otherfinancing sources(uses) $ (358,371) $ (362,151) $ (178,809) $ 183,342
Net change in fund balances $ (1,458,030) $ (2,672,895) $ (939,582) $ 1,733,313
Fund balances-beginning 1,458,030 2,672,895 8,160,599 5,487,704
Fund balances-ending $ - $ - $ 7,221,017 $ 7,221,017
104
County of Bath, Virginia Exhibit 8
Special Revenue Fund - Lodging Tax-Marketing/Capital Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual
Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Other local taxes $ 400,000 $ 400,000 $ 460,518 $ 60,518
Miscellaneous - 300 1,376 1,076
Total revenues $ 400,000 $ 400,300 $ 461,894 $ 61,594
EXPENDITURES
Current:
Community development $ 400,000 $ 400,300 $ 206,112 $ 194,188
Total expenditures $ 400,000 $ 400,300 $ 206,112 $ 194,188
Excess (deficiency)of revenues over(under)
expenditures $ - $ - $ 255,782 $ 255,782
Net change in fund balances $ - $ - $ 255,782 $ 255,782
Fund balances - beginning - - 1,257,106 1,257,106
Fund balances -ending $ - $ - $ 1,512,888 $ 1,512,888
105
County of Bath, Virginia Exhibit 9
Special Revenue Fund -Special Lodging Tax Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual
Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Other local taxes $ 1,000,000 $ 1,000,000 $ 1,040,984 $ 40,984
Total revenues $ 1,000,000 $ 1,000,000 $ 1,040,984 $ 40,984
EXPENDITURES
Current:
Community development $ 1,200,000 $ 1,200,000 $ - $ 1,200,000
Total expenditures $ 1,200,000 $ 1,200,000 $ - $ 1,200,000
Excess (deficiency)of revenues over(under)
expenditures $ (200,000) $ (200,000) $ 1,040,984 $ 1,240,984
Net change in fund balances $ (200,000) $ (200,000) $ 1,040,984 $ 1,240,984
Fund balances - beginning 200,000 200,000 472,599 272,599
Fund balances -ending $ - $ - $ 1,513,583 $ 1,513,583
106
County of Bath, Virginia
Schedule of Changes in Net Pension Liability and Related Ratios
Primary Government
Pension Plans
For the Measurement dates of June 30, 2014 through June 30, 2021
2021 2020 2019
Total pension liability
Service cost $ 304,812 $ 305,829 $ 262,911
Interest 946,496 888,053 871,135
Differences between expected
and actual experience (219,796) 356,768 57,182
Impact of change in proportion 4,505 (195,497) 405,877
Changes in assumptions 475,351 - 390,793
Benefit payments (700,633) (678,052) (671,881)
Net change in total pension liability $ 810,735 $ 677,101 $ 1,316,017
Total pension liability - beginning 14,367,974 13,690,873 12,374,856
Total pension liability -ending (a) $ 15,178,709 $ 14,367,974 $ 13,690,873
Plan fiduciary net position
Impact of change in proportion $ 3,544 $ (164,536) $ 351,410
Contributions-employer 357,906 290,886 283,599
Contributions-employee 124,328 125,434 121,921
Net investment income 3,083,741 216,615 731,128
Benefit payments (700,633) (678,052) (671,881)
Administrator charges (7,679) (7,419) (7,318)
Other 290 (255) (460)
Net change in plan fiduciary net position $ 2,861,497 $ (217,327) $ 808,399
Plan fiduciary net position -beginning 11,305,299 11,522,626 10,714,227
Plan fiduciary net position -ending (b) $ 14,166,796 $ 11,305,299 $ 11,522,626
County's net pension liability -ending (a) -(b) $ 1,011,913 $ 3,062,675 $ 2,168,247
Plan fiduciary net position as a percentage
of the total pension liability 93.33% 78.68% 84.16°/o
Covered-employee payroll $ 2,558,958 $ 2,555,312 $ 2,490,532
County's net pension liability as a
percentage of covered-employee payroll 39.54% 119.86% 87.06°/o
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available.
However, additional years will be included as they become available.
107
Exhibit 10
2018 2017 2016 2015 2014
$ 247,187 $ 273,697 $ 259,627 $ 248,054 $ 208,104
838,107 828,584 789,786 758,108 735,387
(367,052) (45,544) 80,983 120,191 -
(210,891) 112,327 - (8,319) -
- (76,727) - - -
(632,681) (633,465) (743,484) (604,144) (617,023)
$ (125,330) $ 458,872 $ 386,912 $ 513,890 $ 326,468
12,500,186 12,041,314 11,654,402 11,140,512 10,814,044
$ 12,374,856 $ 12,500,186 $ 12,041,314 $ 11,654,402 $ 11,140,512
$ (175,285) $ 87,664 $ - $ (6,970) $ -
277,876 279,957 298,180 286,900 242,398
111,939 120,958 116,621 146,741 108,309
749,862 1,144,882 156,983 424,375 1,288,118
(632,681) (633,465) (743,484) (604,144) (617,023)
(6,542) (6,702) (6,057) (5,891) (7,107)
(665) (1,016) (70) (88) 68
$ 324,504 $ 992,278 $ (177,827) $ 240,923 $ 1,014,763
10,389,723 9,397,445 9,575,272 9,334,349 8,319,586
$ 10,714,227 $ 10,389,723 $ 9,397,445 $ 9,575,272 $ 9,334,349
$ 1,660,629 $ 2,110,463 $ 2,643,869 $ 2,079,130 $ 1,806,163
86.58% 83.12% 78.04% 82.16°/a 83.79%
$ 2,334,682 $ 2,280,650 $ 2,352,914 $ 2,255,503 $ 2,166,188
71.13% 92.54% 112.37% 92.18°/a 83.38%
108
County of Bath, Virginia
Schedule of Changes in Net Pension Liability and Related Ratios
Public Service Authority
Pension Plans
For the Measurement dates of June 30, 2014 through June 30, 2021
2021 2020 2019
Total pension liability
Service cost $ 42,570 $ 42,822 $ 32,533
Interest 132,188 124,344 107,794
Differences between expected
and actual experience (30,697) 49,954 7,076
Impact of change in proportion (4,505) 195,497 (405,877)
Changes in assumptions 66,388 - 48,357
Benefit payments (97,851) (94,940) (83,138)
Net change in total pension liability $ 108,093 $ 317,677 $ (293,255)
Total pension liability - beginning 2,011,777 1,694,100 1,987,355
Total pension liability - ending (a) $ 2,119,870 $ 2,011,777 $ 1,694,100
Plan fiduciary net position
Impact of change in proportion $ (3,544) $ 164,536 $ (351,410)
Contributions - employer 49,985 40,729 35,092
Contributions - employee 17,364 17,563 15,086
Net investment income 430,678 30,330 90,469
Benefit payments (97,851) (94,940) (83,138)
Administrator charges (1,073) (1,036) (905)
Other 41 (36) (57)
Net change in plan fiduciary net position $ 395,600 $ 157,146 $ (294,863)
Plan fiduciary net position - beginning 1,582,946 1,425,800 1,720,663
Plan fiduciary net position - ending (b) $ 1,978,546 $ 1,582,946 $ 1,425,800
Public Service Authority's net pension
liability - ending (a) - (b) $ 141,324 $ 428,831 $ 268,300
Plan fiduciary net position as a percentage
of the total pension liability 93.33% 78.68% 84.16°/o
Covered-employee payroll $ 349,545 $ 367,834 $ 304,024
Public Service Authority's net
pension liability as a percentage
of covered-employee payroll 40.43% 116.58% 88.25°/o
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not
available. However, additional years will be included as they become available.
109
Exhibit 11
2018 2017 2016 2015 2014
$ 39,697 $ 38,596 $ 39,375 $ 37,620 $ 31,382
134,597 116,843 119,779 114,975 110,896
(58,947) (6,422) 12,282 18,228 -
210,891 (112,327) - 8,319 -
- (10,820) - - -
(101,606) (89,329) (112,757) (91,624) (93,047)
$ 224,632 $ (63,459) $ 58,679 $ 87,518 $ 49,231
1,762,723 1,826,182 1,767,503 1,679,985 1,630,754
$ 1,987,355 $ 1,762,723 $ 1,826,182 $ 1,767,503 $ 1,679,985
$ 175,285 $ (87,664) $ - $ 6,970 $ -
44,626 39,478 45,222 43,511 36,553
17,977 17,057 17,687 22,255 16,333
120,425 161,446 23,808 64,361 194,248
(101,606) (89,329) (112,757) (91,624) (93,047)
(1,051) (945) (919) (894) (1,072)
(107) (143) (9) (13) 10
$ 255,549 $ 39,900 $ (26,968) $ 44,566 $ 153,025
1,465,114 1,425,214 1,452,182 1,407,616 1,254,591
$ 1,720,663 $ 1,465,114 $ 1,425,214 $ 1,452,182 $ 1,407,616
$ 266,692 $ 297,609 $ 400,968 $ 315,321 $ 272,369
86.58% 83.12% 78.04% 82.16% 83.79°/a
$ 300,566 $ 320,655 $ 355,519 $ 342,068 $ 326,658
88.73% 92.81% 112.78% 92.18% 83.38%
110
County of Bath, Virginia
Schedule of Changes in Net Pension Liability(Asset)and Related Ratios
Component Unit School Board (nonprofessional)
Pension Plans
For the Measurement dates of June 30, 2014 through June 30, 2021
2021 2020 2019
Total pension liability
Service cost $ 49,304 $ 50,739 $ 48,901
Interest 290,622 285,444 279,666
Differences between expected
and actual experience (205,277) 8,523 98,139
Changes in assumptions 148,708 - 109,672
Benefit payments (242,087) (293,920) (311,677)
Net change in total pension liability $ 41,270 $ 50,786 $ 224,701
Total pension liability-beginning 4,426,553 4,375,767 4,151,066
Total pension liability-ending (a) $ 4,467,823 $ 4,426,553 $ 4,375,767
Plan fiduciary net position
Contributions-employer $ 25,509 $ 14,365 $ 15,969
Contributions-employee 28,495 29,174 28,417
Net investment income 1,093,320 80,769 271,314
Benefit payments (242,087) (293,920) (311,677)
Administrator charges (2,829) (2,876) (2,908)
Other 102 (92) (170)
Net change in plan fiduciary net position $ 902,510 $ (172,580) $ 945
Plan fiduciary net position -beginning 4,071,763 4,244,343 4,243,398
Plan fiduciary net position -ending (b) $ 4,974,273 $ 4,071,763 $ 4,244,343
School Division's net pension
liability (asset) -ending (a) -(b) $ (506,450) $ 354,790 $ 131,424
Plan fiduciary net position as a
percentage of the total pension liability 111.34% 91.98% 97.00%
Covered-employee payroll $ 632,416 $ 650,585 $ 627,250
School Division's net pension liability
as a percentage of covered-employee payroll -80.08% 54.53% 20.95%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available.
However, additional years will be included as they become available.
111
Exhibit 12
2018 2017 2016 2015 2014
$ 56,896 $ 55,777 $ 64,626 $ 74,534 $ 75,905
276,821 292,977 292,531 281,906 270,076
(24,349) (260,563) (119,113) (25,192) -
- (66,278) - - -
(225,789) (279,629) (183,722) (175,196) (178,761)
$ 83,579 $ (257,716) $ 54,322 $ 156,052 $ 167,220
4,067,487 4,325,203 4,270,881 4,114,829 3,947,609
$ 4,151,066 $ 4,067,487 $ 4,325,203 $ 4,270,881 $ 4,114,829
$ 43,353 $ 46,903 $ 69,463 $ 71,030 $ 81,863
30,294 32,479 33,631 40,750 38,615
299,787 453,312 66,059 171,408 517,356
(225,789) (279,629) (183,722) (175,196) (178,761)
(2,664) (2,746) (2,422) (2,375) (2,812)
(263) (401) (28) (34) 27
$ 144,718 $ 249,918 $ (17,019) $ 105,583 $ 456,288
4,098,680 3,848,762 3,865,781 3,760,198 3,303,910
$ 4,243,398 $ 4,098,680 $ 3,848,762 $ 3,865,781 $ 3,760,198
$ (92,332) $ (31,193) $ 476,441 $ 405,100 $ 354,631
102.22% 100.77% 88.98% 90.51% 91.38%
$ 651,019 $ 681,625 $ 685,146 $ 694,956 $ 772,300
-14.18% -4.58% 69.54% 58.29% 45.92%
112
County of Bath,Virginia
Schedule of Employer's Share of Net Pension Liability VRS Teacher Retirement Plan
Pension Plans
For the Measurement dates of June 30, 2014 through June 30, 2021
2021 2020 2019
Employer's Proportion of the Net Pension Liability(Asset) 0.05144% 0.05290% 0.05439°/o
Employer's Proportionate Share of the Net Pension
Liability(Asset) $ 3,993,337 $ 7,693,974 $ 7,158,033
Employer's Covered-employee Payroll $ 4,562,061 $ 4,621,057 $ 4,367,633
Employer's Proportionate Share of the Net Pension
Liability(Asset)as a Percentage of its Covered-employee Payroll 87.53% 166.50% 163.89°/o
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 85.46% 71.47% 72.92%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However,
additional years will be included as they become available.
The amounts presented have a measurement date of the previous fiscal year end.
113
Exhibit 13
2018 2017 2016 2015 2014
0.05689% 0.05875% 0.05993% 0.06123% 0.05850°/a
$ 6,690,000 $ 7,225,000 $ 8,398,000 $ 7,706,000 $ 7,069,000
$ 4,603,280 $ 4,634,534 $ 4,569,661 $ 4,552,058 $ 4,277,950
145.33% 155.89% 183.78% 169.29% 165.24%
72.92% 72.92°/a 68.28% 70.68% 70.88%
114
County of Bath,Virginia Exhibit 14
Schedule of Employer Contributions
Pension plans
June 30, 2013 through June 30, 2022
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a%of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll
Date (1)* (2)* (3) (4) (5)
Primary Government
2022 $ 384,829 $ 384,829 $ - $ 2,762,907 13.93%
2021 357,903 357,903 - 2,558,958 13.99%
2020 291,079 291,079 - 2,555,312 11.39%
2019 288,154 288,154 - 2,490,532 11.57%
2018 285,396 285,396 - 2,334,682 12.22%
2017 280,582 280,582 - 2,280,650 12.30%
2016 298,180 298,180 - 2,352,914 12.67%
2015 286,900 286,900 - 2,255,503 12.72%
2014 242,398 242,398 - 2,166,188 11.19%
2013 220,927 220,927 - 1,974,323 11.19%
Component Unit Public Service Authority
2022 $ 49,836 $ 49,836 $ - $ 348,503 14.30%
2021 49,985 49,985 - 349,545 14.30%
2020 40,756 40,756 - 367,834 11.08%
2019 30,631 30,631 - 304,024 10.08%
2018 37,180 37,180 - 300,566 12.37%
2017 39,665 39,665 - 320,655 12.37%
2016 45,222 45,222 - 355,519 12.72%
2015 43,511 43,511 - 342,068 12.72%
2014 36,553 36,553 - 326,658 11.19%
2013 39,444 39,444 - 352,493 11.19%
Component Unit School Board (nonprofessional)
2022 $ 25,287 $ 25,287 $ - $ 641,603 3.94%
2021 25,509 25,509 - 632,416 4.03%
2020 14,165 14,165 - 650,585 2.18%
2019 15,858 15,858 - 627,250 2.53°/a
2018 43,353 43,353 - 651,019 6.66%
2017 47,270 47,270 - 681,625 6.93°/a
2016 70,090 70,090 - 685,146 10.23%
2015 71,030 71,030 - 694,956 10.22%
2014 81,863 81,863 - 772,300 10.60%
2013 79,641 79,641 - 751,331 10.60%
Component Unit School Board (professional)
2022 $ 734,928 $ 734,928 $ - $ 4,632,082 15.87%
2021 727,755 727,755 - 4,562,061 15.95%
2020 702,753 702,753 - 4,621,057 15.21%
2019 696,179 696,179 - 4,367,633 15.94%
2018 735,371 735,371 - 4,603,280 15.97%
2017 679,423 679,423 - 4,634,534 14.66%
2016 642,494 642,494 - 4,569,661 14.06%
2015 660,048 660,048 - 4,552,058 14.50%
2014 498,809 498,809 - 4,277,950 11.66%
2013 483,198 483,198 - 4,144,068 11.66%
*Excludes contributions (mandatory and match on voluntary)to the defined contribution portion of the Hybrid plan.
115
County of Bath,Virginia Exhibit 15
Notes to Required Supplementary Information - Pension Plans
Pension Plans
Year Ended June 30, 2022
Changes of benefit terms — There have been no actuarially material changes to the System benefit
provisions since the prior actuarial valuation.
Changes of assumptions — The actuarial assumptions used in the June 30, 2020 valuation were
based on the results of an actuarial experience study for the period from July 1, 2016 through June 30,
2020, except the change in the discount rate, which was based on VRS Board action effective as of July
1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board
action are as follows:
All Others Non 10 Lar est —Non-Hazardous Dut :
Mortality Rates (pre-retirement, Update to Pub-2010 public sector mortality tables. For future
post-retirement healthy, and mortality improvements, replace load with a modified Mortality
disabled) Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates
based on experience for Plan 2/Hybrid; changed final retirement age
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disabilit Rates No chan e
Salar Scale No chan e
Line of Dut Disabilit No chan e
Discount Rate No chan e
All Others Non 10 Lar est —Hazardous Dut :
Mortality Rates (pre-retirement, Update to Pub-2010 public sector mortality tables. Increased
post-retirement healthy, and disability life expectancy. For future mortality improvements, replace
disabled) load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement
age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service
to rates based on service only to better fit experience and to be more
consistent with Locals Largest 10 Hazardous Duty
Disabilit Rates No chan e
Salar Scale No chan e
Line of Dut Disabilit No chan e
Discount Rate No chan e
Component Unit School Board - Professional Emplo ees
Mortality Rates (pre-retirement, Update to Pub-2010 public sector mortality tables. For future
post-retirement healthy, and mortality improvements, replace load with a modified Mortality
disabled) Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates
based on experience for Plan 2/Hybrid; changed final retirement age
from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disabilit Rates No chan e
Salar Scale No chan e
Discount Rate No chan e
116
County of Bath,Virginia Exhibit 16
Schedule of County's Share of Net OPEB Liability
Group Life Insurance (GLI) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2021
Employer's
Proportionate Share
Employer's of the Net GLI
Employer's Proportionate OPEB Liability Plan Fiduciary
Proportion of Share of the Employer's as a Percentage of Net Position as a
the Net GLI Net GLI OPEB Covered Covered Payroll Percentage of Total
Date OPEB Liability Liability Payroll (3)/(4) GLI OPEB Liability
(1) (2) (3) (4) (5) (6)
Primary Government
2021 0.0124% $ 143,943 $ 2,552,080 5.64% 67.45%
2020 0.0125% 207,869 2,555,312 8.13% 52.64%
2019 0.0127% 206,496 2,490,532 8.29% 52.00%
2018 0.0119% 181,803 2,334,682 7.79% 51.22%
2017 0.0124% 185,799 2,280,640 8.15% 48.86%
Component Unit Public Service Authority
2021 0.00173% $ 20,103 $ 356,423 5.64% 67.45%
2020 0.00174% 29,106 359,038 8.11% 52.64%
2019 0.00157% 25,552 304,024 8.40% 52.00%
2018 0.00192% 29,197 300,566 9.71% 51.22%
2017 0.00174% 26,201 320,665 8.17% 48.86%
Component Unit School Board (nonprofessional)
2021 0.00310% $ 35,627 $ 632,416 5.63% 67.45%
2020 0.00320% 52,735 650,585 8.11% 52.64%
2019 0.00320% 52,073 627,250 8.30% 52.00%
2018 0.00342% 51,000 651,019 7.83% 51.22%
2017 0.00373% 56,000 687,506 8.15% 48.86%
Component Unit School Board (professional)
2021 0.02210% $ 257,304 $ 4,562,061 5.64% 67.45%
2020 0.02250% 374,654 4,621,057 8.11% 52.64%
2019 0.02340% 380,130 4,578,736 8.30% 52.00%
2018 0.02421% 368,000 4,603,280 7.99% 51.22%
2017 0.02513% 378,000 4,634,534 8.16% 48.86%
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available.
However, additional years will be included as they become available.
117
County of Bath, Virginia Exhibit 17
Schedule of Employer Contributions
Group Life Insurance (GLI) Plan
Years Ended June 30, 2013 through June 30, 2022
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll
Date (1) (2) (3) (4) (5)
Primary Government
2022 $ 14,786 $ 14,786 $ - $ 2,754,678 0.54%
2021 13,781 13,781 - 2,552,080 0.54%
2020 13,333 13,333 - 2,555,312 0.52%
2019 12,521 12,521 - 2,490,532 0.50%
2018 12,010 12,010 - 2,334,682 0.51%
2017 11,855 11,855 - 2,280,640 0.52%
2016 11,306 11,306 - 2,355,213 0.48%
2015 10,837 10,837 - 2,257,715 0.48%
2014 10,398 10,398 - 2,166,188 0.48%
2013 9,477 9,477 - 1,974,324 0.48%
Component Unit Public Service Authority
2022 $ 1,926 $ 1,926 $ - $ 356,732 0.54%
2021 1,925 1,925 - 356,423 0.54%
2020 1,867 1,867 - 359,038 0.52%
2019 2,011 2,011 - 304,024 0.66%
2018 1,693 1,693 - 300,566 0.56%
2017 1,672 1,672 - 320,665 0.52%
2016 1,706 1,706 - 355,519 0.48%
2015 1,642 1,642 - 342,068 0.48%
2014 1,568 1,568 - 326,658 0.48%
2013 1,692 1,692 - 352,493 0.48%
Component Unit School Board (nonprofessional)
2022 $ 3,505 $ 3,505 $ - $ 648,999 0.54%
2021 3,415 3,415 - 632,416 0.54%
2020 3,383 3,383 - 650,585 0.52%
2019 3,262 3,262 - 627,250 0.52%
2018 3,385 3,385 - 651,019 0.52%
2017 3,575 3,575 - 687,506 0.52%
2016 3,298 3,298 - 687,052 0.48%
2015 3,336 3,336 - 694,956 0.48%
2014 3,707 3,707 - 772,300 0.48%
2013 3,632 3,632 - 756,591 0.48%
Component Unit School Board (professional)
2022 $ 25,025 $ 25,025 $ - $ 4,634,340 0.54%
2021 24,635 24,635 - 4,562,061 0.54%
2020 24,029 24,029 - 4,621,057 0.52%
2019 23,809 23,809 - 4,578,736 0.52%
2018 23,937 23,937 - 4,603,280 0.52%
2017 24,100 24,100 - 4,634,534 0.52%
2016 21,934 21,934 - 4,569,661 0.48%
2015 21,850 21,850 - 4,552,058 0.48%
2014 20,534 20,534 - 4,277,953 0.48%
2013 19,892 19,892 - 4,144,067 0.48%
118
County of Bath, Virginia Exhibit 18
Notes to Required Supplementary Information
Group Life Insurance (GLI) Plan
Year Ended June 30, 2022
Changes of benefit terms—There have been no actuarially material changes to the System benefit provisions since
the prior actuarial valuation.
Changes of assumptions —The actuarial assumptions used in the June 30, 2020 valuation were based on the results
of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the
discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions
as a result of the experience study and VRS Board action are as follows:
Teachers
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For future mortality
retirement healthy, and disabled) improvements, replace load with a modified Mortality Improvement
Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates
based on experience for Plan 2/Hybrid; changed final retirement age
from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disability Rates No change
Salary Scale No chan e
Discount Rate No change
Non-Largest Ten Locality Employers -General Employees
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For future mortality
retirement healthy, and disabled) improvements, replace load with a modified Mortality Improvement
Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates
based on experience for Plan 2/Hybrid; changed final retirement age
from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No chan e
Non-Largest Ten Locality Employers - Hazardous Duty Employees
Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. Increased disability
retirement healthy, and disabled) life expectancy. For future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age
from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to
rates based on service only to better fit experience and to be more
consistent with Locals Top 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
119
County of Bath,Virginia Exhibit 19
Schedule of County's Share of Net OPEB Liability
Virginia Local Disability Program (VLDP)
For the Measurement Dates June 30, 2017 through June 30, 2021
Employer's
Proportionate Share
Employer's of the Net VLDP OPEB
Employer's Proportionate Liability(Asset) Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net VLDP OPEB Net VLDP OPEB Covered Covered Payroll Percentage of Total
Date Liability(Asset) Liability(Asset) Payroll (3)/(4) VLDP OPEB Liability
(1) (2) (3) (4) (5) (6)
Primary Government
2021 0.09294% $ (826) $ 327,607 -0.25% 119.59%
2020 0.07441% 743 277,175 0.27% 76.84%
2019 0.07839% 1,588 234,509 0.68% 49.19%
2018 0.06552% - 161,807 0.00% 51.39°/a
2017 0.07324% 876 134,501 0.65% 38.40%
Component Unit Public Service Authority
2021 0.01139% $ (115) $ 45,783 -0.25°/a 119.59%
2020 0.01039% 104 38,888 0.27% 76.84%
2019 0.00970% 197 37,661 0.52% 49.19%
2018 0.01052% - 22,818 0.00% 51.39°/a
2017 0.01033% 124 18,967 0.65% 38.40%
Component Unit School Board (nonprofessional)
2021 0.07780% $ (787) $ 312,584 -0.25°/a 119.59%
2020 0.09010% 899 335,602 0.27% 76.84%
2019 0.09533% 1,931 294,547 0.66% 49.19%
2018 0.09296% - 225,725 0.00% 51.39°/a
2017 0.08725% 1,000 160,222 0.62% 38.40%
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However,
additional years will be included as they become available.
120
County of Bath, Virginia Exhibit 20
Schedule of Employer Contributions
Virginia Local Disability Program (VLDP)
Years Ended June 30, 2015 through June 30, 2022
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll
Date (1) (2) (3) (4) (5)
Primary Government
2022 $ 4,133 $ 4,133 $ - $ 497,869 0.83%
2021 2,719 2,719 - 327,607 0.83%
2020 1,996 1,996 - 277,175 0.72%
2019 1,689 1,689 - 234,509 0.72%
2018 971 971 - 161,807 0.60%
2017 807 807 - 134,501 0.60%
2016 585 585 - 97,562 0.60%
2015 151 151 - 25,065 0.60%
Component Unit Public Service Authority
2022 $ 535 $ 535 $ - $ 64,458 0.83%
2021 380 380 - 45,783 0.83%
2020 280 280 - 38,888 0.72%
2019 271 271 - 37,661 0.72%
2018 137 137 - 22,818 0.60%
2017 114 114 - 18,967 0.60%
2016 83 83 - 13,758 0.60%
2015 21 21 - 3,535 0.59%
Component Unit School Board (nonprofessional)
2022 $ 2,794 $ 2,794 $ - $ 336,620 0.83%
2021 2,594 2,594 - 312,584 0.83%
2020 2,416 2,416 - 335,602 0.72%
2019 2,121 2,121 - 294,547 0.72%
2018 1,354 1,354 - 225,725 0.60%
2017 961 961 - 160,222 0.60%
2016 376 376 - 62,667 0.60%
2015 38 38 - 6,387 0.59%
Schedule is intended to show information for 10 years. The program began in fiscal year 2015, additional years
will be added as they become available.
121
County of Bath, Virginia Exhibit 21
Notes to Required Supplementary Information
Virginia Local Disability Program (VLDP)
Year Ended June 30, 2022
Changes of benefit terms — There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Changes of assumptions — The actuarial assumptions used in the June 30, 2020 valuation were based on the
results of an actuarial experience study for the period from July 1, 2016 thorugh June 30, 2020, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial
assumptions as a result of the experience study and VRS Board action are as follows:
Non-Largest Ten Locality Employers -General and Non-Hazardous Duty Employees
Mortality Rates (pre-retirement, post-retirement Update to Pub-2010 public sector mortality tables. For future
healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate
rates based on experience for Plan 2/Hybrid; changed final
retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
122
County of Bath,Virginia Exhibit 22
Schedule of School Division's Share of Net OPEB Liability
Teacher Virginia Local Disability Program (VLDP)
For the Measurement dates of June 30, 2017 through June 30, 2021
Employer's
Proportionate Share
Employer's of the Net VLDP OPEB
Employer's Proportionate Liability(Asset) Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net VLDP OPEB Net VLDP OPEB Covered Covered Payroll Percentage of Total
Date Liability(Asset) Liability(Asset) Payroll (3)/(4) VLDP OPEB Liability
(1) (2) (3) (4) (5) (6)
2021 0.20432°/a $ (1,438) $ 1,374,886 -0.10°/a 114.46%
2020 0.20820% 1,671 1,231,493 0.14% 78.28%
2019 0.24994% 1,453 1,198,625 0.12% 74.12%
2018 0.27396% 2,000 1,021,504 0.20% 46.18%
2017 0.28974% 2,000 817,660 0.24% 31.96%
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However,
additional years will be included as they become available.
123
County of Bath, Virginia Exhibit 23
Schedule of Employer Contributions
Teacher Virginia Local Disability Program (VLDP)
Years Ended June 30, 2014 through June 30, 2022
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll
Date (1) (2) (3) (4) (5)
2022 $ 7,854 $ 7,854 $ - $ 1,671,095 0.47%
2021 6,462 6,462 - 1,374,886 0.47%
2020 5,049 5,049 - 1,231,493 0.41%
2019 4,914 4,914 - 1,198,625 0.41%
2018 3,167 3,167 - 1,021,504 0.31%
2017 2,535 2,535 - 817,660 0.31%
2016 1,406 1,406 - 484,760 0.29%
2015 859 859 - 296,114 0.29%
2014 39 39 - 13,458 0.29%
Schedule is intended to show information for 10 years. The VLDP program began in fiscal year 2014.
Additional years will be presented as they become available.
124
County of Bath, Virginia Exhibit 24
Notes to Required Supplementary Information
Teacher Virginia Local Disability Program (VLDP)
Year Ended June 30, 2022
Changes of benefit terms — There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Changes of assumptions — The actuarial assumptions used in the June 30, 2020 valuation were based on the
results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial
assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-retirement Update to Pub-2010 public sector mortality tables. For future
healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate
rates based on experience for Plan 2/Hybrid; changed final
retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
125
County of Bath,Virginia Exhibit 25
Schedule of School Board's Share of Net OPEB Liability
Teacher Employee Health Insurance Credit(HIC) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2021
Employer's
Proportionate Share
Employer's of the Net HIC OPEB
Employer's Proportionate Liability Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net HIC OPEB Net HIC OPEB Covered Covered Payroll Percentage of Total
Date Liability Liability Payroll (3)/(4) HIC OPEB Liability
(1) (2) (3) (4) (5) (6)
2021 0.05158% $ 662,065 $ 4,562,061 14.51% 13.15%
2020 0.05270% 687,610 4,621,057 14.88% 9.95°/a
2019 0.05441% 712,280 4,563,687 15.61% 8.97%
2018 0.05692% 722,000 4,603,280 15.68% 8.08°/a
2017 0.05872% 745,000 4,634,534 16.07% 7.04%
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available.
However, additional years will be included as they become available.
126
County of Bath,Virginia Exhibit 26
Schedule of Employer Contributions
Teacher Employee Health Insurance Credit(HIC) Plan
Years Ended June 30, 2013 through June 30, 2022
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll
Date (1) (2) (3) (4) (5)
2022 $ 56,048 $ 56,048 $ - $ 4,632,082 1.21%
2021 55,201 55,201 - 4,562,061 1.21%
2020 55,453 55,453 - 4,621,057 1.20%
2019 54,764 54,764 - 4,563,687 1.20%
2018 56,620 56,620 - 4,603,280 1.23%
2017 51,443 51,443 - 4,634,534 1.11%
2016 48,438 48,438 - 4,569,661 1.06%
2015 48,252 48,252 - 4,552,058 1.06%
2014 47,485 47,485 - 4,277,953 1.11%
2013 45,999 45,999 - 4,144,067 1.11%
127
County of Bath, Virginia Exhibit 27
Notes to Required Supplementary Information
Teacher Employee Health Insurance Credit (HIC) Plan
Year Ended June 30, 2022
Changes of benefit terms — There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Changes of assumptions — The actuarial assumptions used in the June 30, 2020 valuation were based on the
results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial
assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-retirement Update to Pub-2010 public sector mortality tables. For future
healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate
rates based on experience for Plan 2/Hybrid; changed final
retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disability Rates No chan e
Salary Scale No chan e
Discount Rate No chan e
128
County of Bath,Virginia Exhibit 28
Schedule of Changes in Net OPEB Liability and Related Ratios
Component Unit School Board(nonprofessional)
Health Insurance Credit(HIC)Plan
For the Measurement Dates of June 30,2017 through June 30,2021
2021 2020 2079 2078 2077
Total HIC OPEB Liability
Service cost $ 949 $ 963 $ 870 $ 886 $ 976
Interest 7,403 6,630 6,122 6,000 6,000
Changes of benefit terms - 5,696 - - -
Differences between expected and actual experience (1,481) 6,224 9,802 5,000 -
Changes of assumptions 3,108 - 2,345 - (4,000)
Benefit payments (7,951) (8,179) (8,186) (7,149) (5,352)
Net change in total HIC OPEB liability $ 2,028 $ 11,334 $ 10,953 $ 4,737 $ (2,376)
Total HIC OPEB Liability-beginning 113,648 102,314 91,361 86,624 89,000
Total HIC OPEB Liability-ending(a) $ 115,676 $ 113,648 $ 102,314 $ 91,361 $ 86,624
Plan fiduciary net position
Contributions-employer $ 7,779 $ 6,311 $ 6,084 $ 5,664 $ 5,930
Net investment income 1,992 175 609 795 1,193
Benefit payments (7,951) (8,179) (8,186) (7,149) (5,352)
Administrator charges (24) (14) (2) (17) (19)
Other - - 178 (59) 59
Net change in plan fiduciary net position $ 1,796 $ (1,707) $ (1,317) $ (766) $ 1,811
Plan fiduciary net position-beginning 8,021 9,728 11,045 11,811 10,000
Plan fiduciary net position-ending(b) $ 9,817 $ 8,021 $ 9,728 $ 11,045 $ 11,811
School Division's net HIC OPEB
liability-ending(a)-(b) $ 105,859 $ 105,627 $ 92,586 $ 80,316 $ 74,813
Plan fiduciary net position as a percentage
of the total HIC OPEB liability 8.49% 7.06% 9.51% 12.09% 13.63%
Covered-employee payroll $ 632,416 $ 650,585 $ 627,250 $ 651,019 $ 681,625
School Division's net HIC OPEB liability as a
percentage of covered-employee payroll 16.74% 16.24% 14.76% 12.34% 10.98%
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included
as they become available.
129
County of Bath, Virginia Exhibit 29
Schedule of Employer Contributions
Component Unit School Board (nonprofessional)
Health Insurance Credit (HIC) Plan
Years Ended June 30, 2013 through June 30, 2022
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered-Employee Covered
Contribution Contribution (Excess) Payroll Payroll
Date (1) (2) (3) (4) (5)
2022 $ 7,892 $ 7,892 $ - $ 641,603 1.23°/a
2021 7,779 7,779 - 632,416 1.23°/a
2020 6,311 6,311 - 650,585 0.97°/a
2019 6,084 6,084 - 627,250 0.97%
2018 5,664 5,664 - 651,019 0.87°/a
2017 5,930 5,930 - 681,625 0.87°/a
2016 5,139 5,139 - 685,146 0.75°/a
2015 5,212 5,212 - 694,956 0.75%
2014 6,873 6,873 - 772,300 0.89°/a
2013 6,687 6,687 - 751,331 0.89°/a
130
County of Bath, Virginia Exhibit 30
Notes to Required Supplementary Information
Component Unit School Board (nonprofessional)
Health Insurance Credit(HIC) Plan
Year Ended June 30, 2022
Changes of benefit terms—There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Changes of assumptions — Theactuarial assumptions used in the June 30, 2020, valuation were based on the
results of an actuarial experience study for the period from July 1, 2016 though June 30, 2020, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial
assumptions as a result of the experience study and VRS Board action are as follows:
Non-Largest Ten Locality Employers -General Employees
Mortality Rates (pre-retirement, post-retirement Update to Pub-2010 public sector mortality tables. For future
healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate
rates based on experience for Plan 2/Hybrid; changed final
retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
131
County of Bath,Virginia Exhibit 31
Schedule of Changes in Total OPEB Liability(Asset)and Related Ratios
Primary Government
For the Measurement Dates of July 1,2017 through July 1,2021
2021 2020 2019 2018 2017
Total OPEB liability
Service cost $ 24,100 $ 20,500 $ 23,000 $ 26,000 $ 25,400
Interest 7,500 11,900 15,500 20,200 18,800
Changes in assumptions 12,400 16,400 15,500 - -
Differences between expected and actual experience (39,200) (126,700) (102,100) (163,900) -
Benefit payments - - - (6,900) (5,500)
Other charges - - - (13,100) -
Net change in total OPEB liability $ 4,800 $ (77,900) $ (48,100) $ (137,700) $ 38,700
Total OPEB liability-beginning 280,300 358,200 406,300 544,000 505,300
Total OPEB liability-ending $ 285,100 $ 280,300 $ 358,200 $ 406,300 $ 544,000
Covered-employee payroll $ 3,665,256 $ 3,586,198 $ 3,619,215 $ 3,619,215 $ 3,252,015
Primary GovernmenYs total OPEB liability(asset)
as a percentage of covered-employee payroll 7.78% 7.82% 9.90% 11.23% 16.73%
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
132
County of Bath,Virginia Exhibit 32
Schedule of Changes in Total OPEB Liability(Asset)and Related Ratios
Component Unit School Board
For the Measurement Dates of July 1,2017 through July 1,2021
2021 2020 2019 2018 2017
Total OPEB liability
Service cost $ 24,400 $ 31,000 $ 34,600 $ 44,700 $ 43,600
Interest 8,300 14,800 19,600 34,200 32,400
Changes in assumptions 9,600 12,500 13,200 - -
Differences between expected and actual experience (77,500) (209,300) (141,300) (427,600) -
Benefit payments 27,500 23,000 - (27,300) (25,000)
Otherchanges - - - (49,200) -
Net change in total OPEB liability $ (7,700) $ (128,000) $ (73,900) $ (425,200) $ 51,000
Total OPEB liability-beginning 302,900 430,900 504,800 930,000 879,000
Total OPEB liability-ending $ 295,200 $ 302,900 $ 430,900 $ 504,800 $ 930,000
Covered-employee payroll $ 3,794,344 $ 3,873,402 $ 4,423,485 $ 4,423,485 $ 3,974,685
School Division's total OPEB liability(asset)
as a percentage of covered-employee payroll 7.78% 7.82% 9.74% 11.41% 23.40%
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
133
County of Bath,Virginia Exhibit 33
Notes to Required Supplementary Information - OPEB
Year Ended June 30, 2022
Valuation Date: 7/1/2020
Measurement Date: 7/1/2021
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
Methods and assumptions used to determine OPEB liabilit :
Actuarial Cost Method Entry age normal level % of salary
Discount Rate 1.92% representing the Municipal GO AA 20-year yield curve
rate as of July 1, 2021
Inflation 2.50% per ear
Healthcare Trend Rate 3.00% for fiscal year end 2021 (to reflect actual experience),
then 6.00°/o for fiscal year end 2022, decreasing 0.25% per
year to an ultimate rate of 5.00%
Sala Increase Rates 2.50% annuall
Retirement Age The average age at retirement is 62
Mortality Rates RP-2014 Mortality Table, fully generational with base year
2006, projected using two-dimensional mortality improvement
scale MP-2021
134
OTHER SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
County of Bath, Virginia Exhibit 34
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
Virginia
CSA Public
Fund Assistance Total
ASSETS
Due from other governmental units $ 9,745 $ 48,545 $ 58,290
Total assets $ 9,745 $ 48,545 $ 58,290
LIABILITIES
Accounts payable $ 1,308 $ - $ 1,308
Due to other funds 8,437 48,545 56,982
Totalliabilities $ 9,745 $ 48,545 $ 58,290
FUND BALANCES
Committed $ - $ - $ -
Total fund balances $ - $ - $ -
Total liabilities and fund balances $ 9,745 $ 48,545 $ 58,290
135
County of Bath, Virginia Exhibit 35
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds
Year Ended June 30, 2022
Virginia
CSA Public
Fund Assistance Total
REVENUES
Miscellaneous $ - $ 576 $ 576
Intergovernmental:
Commonwealth 109,216 194,672 303,888
Federal - 407,335 407,335
Total revenues $ 109,216 $ 602,583 $ 711,799
EXPENDITURES
Current:
Health and welfare $ 196,110 $ 694,498 $ 890,608
Total expenditures $ 196,110 $ 694,498 $ 890,608
Excess (deficiency) of revenues over (under)
expenditures $ (86,894) $ (91,915) $ (178,809)
OTHER FINANCING SOURCES (USES)
Transfers in $ 86,894 $ 91,915 $ 178,809
Total other financing sources (uses) $ 86,894 $ 91,915 $ 178,809
Net change in fund balances $ - $ - $ -
Fund balances - beginning - - -
Fund balances - ending $ - $ - $ -
136
County of Bath,Virginia
Schedule of Revenues, Expenditures, and Changes
in Fund Balances- Budget and Actual
Nonmajor Special Revenue Funds
Year Ended June 30, 2022
CSA Fund
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Miscellaneous $ - $ - $ - $ -
Intergovernmental:
Commonwealth 18,851 18,851 109,216 90,365
Federal - - - -
Total revenues $ 18,851 $ 18,851 $ 109,216 $ 90,365
EXPENDITURES
Current:
Health and welfare $ 218,851 $ 219,742 $ 196,110 $ 23,632
Total expenditures $ 218,851 $ 219,742 $ 196,110 $ 23,632
Excess(deficiency)of revenues over(under)
expenditures $ (200,000) $ (200,891) $ (86,894) $ 113,997
OTHER FINANCING SOURCES (USES)
Transfers in $ 200,000 $ 200,891 $ 86,894 $ (113,997)
Total other financing sources(uses) $ 200,000 $ 200,891 $ 86,894 $ (113,997)
Net change in fund balances $ - $ - $ - $ -
Fund balances-beginning - - - -
Fund balances-ending $ - $ - $ - $ -
137
Exhibit 36
Virginia Public Assistance Fund
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 125,920 $ 125,920 $ 576 $ (125,344)
522,645 522,645 194,672 (327,973)
74,663 74,663 407,335 332,672
$ 723,228 $ 723,228 $ 602,583 $ (120,645)
$ 881,599 $ 881,599 $ 694,498 $ 187,101
$ 881,599 $ 881,599 $ 694,498 $ 187,101
$ (158,371) $ (158,371) $ (91,915) $ 66,456
$ 158,371 $ 158,371 $ 91,915 $ (66,456)
$ 158,371 $ 158,371 $ 91,915 $ (66,456)
$ - $ - $ - $ -
$ - $ - $ - $ -
138
DISCRETELY PRESENTED COMPONENT UNIT
- SCHOOL BOARD
MAJOR GOVERNMENTAL FUNDS
School Operating Fund — The School Operating Fund accounts for the operations of
the County's school system. Financing is provided by the State and Federal
governments as well as contributions from the General Fund.
School Cafeteria Fund — The School Cafeteria Fund is a special revenue fund that
accounts for the County's school lunch program. Financing is provided from lunch
sales and State and Federal reimbursements.
School Activitv Funds — The School Activity Funds include all funds received from
extracurricular school activities, such as entertainment, athletic contests, club dues,
fundraisers, etc., and from any and all activities of the school involving personnel,
students, or property. The activity funds are special revenue funds of the School
Board.
County of Bath,Virginia Exhibit 37
Combining Balance Sheet
Discretely Presented Component Unit-School Board
June 30,2022
School School School Total
Operating Cafeteria Activity Governmental
Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 656,515 $ 45,620 $ 255,897 $ 958,032
Investments 683,473 683,473
Due from other governmental units 121,202 86,057 - 207,259
Inventories - 14,073 - 14,073
Prepaid items 246,786 - - 246,786
Total assets $ 1,024,503 $ 145,750 $ 939,370 $ 2,109,623
LIABILITIES
Accrued payroll $ 656,515 $ 39,135 $ - $ 695,650
Due to primary government 233,488 - - 233,488
Unearned revenue 134,500 - - 134,500
Totalliabilities $ 1,024,503 $ 39,135 $ - $ 1,063,638
FUND BALANCES
Nonspendable:
Inventories $ - $ 14,073 $ - $ 14,073
Prepaid items 246,786 - - 246,786
Restricted:
School band expenditures - - 715,968 715,968
Scholarships - - 45,599 45,599
School activities - - 177,803 177,803
Committed:
School cafeteria - 92,542 - 92,542
Unassigned(deficit) (246,786) - (246,786)
Total fund balances $ - $ 106,615 $ 939,370 $ 1,045,985
Total liabilities and fund balances $ 1,024,503 $ 145,750 $ 939,370 $ 2,109,623
Amounts reported for governmental activities in the statement of net position (Exhibit 1) are different
because:
Total fund balances per above $ 1,045,985
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.
Land and land improvements $ 238,282
Buildings and improvements 11,290,229
Machinery and equipment 1,555,606
Construction in progress 803,134
Lease assets 24,420
13,911,671
Net pension asset is not an available resource and,therefore,is not reported in the funds.
Net pension asset $ 506,540
Net OPEB asset 2,225
508,765
Deferred outflows of resources are not available to pay for current-period expenditures and,therefore,
are not reported in the funds.
Pension related items $ 1,548,617
OPEB related items 239,917
1,788,534
Long-term liabilities, including compensated absences, are not due and payable in the current period
and,therefore,are not reported in the funds.
Note payable $ (1,499,298)
Lease liabilities (24,556)
Accrued interest (27)
Compensated absences (249,807)
Net OPEB liabilities (1,356,055)
Net pension liability (3,993,337)
(7,123,080)
Deferred inflows of resources are not due and payable in the current period and,therefore,are not
reported in the funds.
Pension related items $ (4,021,460)
OPEB related items (676,512)
(4,697,972)
Net position of governmental activities �39 $ 5,433,903
THIS PAGE LEFT BLANK INTENTIONALLY
County of Bath,Virginia Exhibit 38
Combining Statement of Revenues, Expenditures,and Changes in Fund Balances
Governmental Funds-Discretely Presented Component Unit-School Board
Year Ended June 30,2022
School School School Total
Operating Cafeteria Activity Governmental
Fund Fund Funds Funds
REVENUES
Charges for services $ - $ 24,662 $ - $ 24,662
Miscellaneous 32,787 - 293,156 325,943
Intergovernmental:
Local government 7,311,811 300,000 - 7,611,811
Commonwealth 2,232,591 13,790 - 2,246,381
Federal 628,382 396,972 - 1,025,354
Total revenues $ 10,205,571 $ 735,424 $ 293,156 $ 11,234,151
EXPENDITURES
Current:
Education $ 10,051,731 $ 650,267 $ 286,958 $ 10,988,956
Debt service:
Principal retirement 105,645 - - 105,645
Interest and otherfiscal charges 48,195 - - 48,195
Total expenditures $ 10,205,571 $ 650,267 $ 286,958 $ 11,142,796
Excess(deficiency)of revenues over(under)expenditures $ - $ 85,157 $ 6,198 $ 91,355
Net change in fund balances $ - $ 85,157 $ 6,198 $ 91,355
Fund balances-beginning - 21,458 933,172 954,630
Fund balances-ending $ - $ 106,615 $ 939,370 $ 1,045,985
Amounts reported for governmental activities in the statement of activities(Exhibit 2)are different because:
Net change in fund balances-total governmental funds-per above $ 91,355
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 and reported as depreciation
expense. This is the amount by which the capital outlays exceeded depreciation in the current
period.
Capital outlays $ 1,178,612
Depreciation/amortization expense (870,954)
Net allocation of debt financed school assets based on current year
repayments 183,640
491,298
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds
Nonemployer VRS pension contribution 31,555
The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any effect on net
position. Also, governmental funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas these amounts are deferred and amortized in the statement of
activities. This amount is the net effect of these differences in the treatment of long-term debt and
related items.
Principal repayments $ 105,645
Principal repayments-leases 6,524
Accrued interest (27)
112,142
Some expenses 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.
Change in compensated absences $ 28,949
Pension expense 1,028,447
OPEB expense 213,045
1,270,441
Change in net position of governmental activities $ 1,996,791
140
County of Bath,Virginia
Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual
Discretely Presented Component Unit-School Board
Year Ended June 30, 2022
School Operating Fund
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ - $ - $ - $ -
Miscellaneous 28,500 28,500 32,787 4,287
Intergovernmental:
Local government 7,718,937 7,718,937 7,311,811 (407,126)
Commonwealth 2,016,888 2,156,042 2,232,591 76,549
Federal 833,382 833,382 628,382 (205,000)
Total revenues $ 10,597,707 $ 10,736,861 $ 10,205,571 $ (531,290)
EXPENDITURES
Current:
Education $ 10,597,707 $ 10,736,861 $ 10,051,731 $ 531,290
Debt service:
Principal retirement - - 105,645 -
Interest and other fiscal charges - - 48,195 -
Total expenditures $ 10,597,707 $ 10,736,861 $ 10,205,571 $ 531,290
Excess (deficiency)of revenues over(under)
expenditures $ - $ - $ - $ -
Net change in fund balances $ - $ - $ - $ -
Fund balances- beginning - - - -
Fund balances-ending $ - $ - $ - $ -
141
Exhibit 39
School Cafeteria Fund
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 10,000 $ 10,000 $ 24,662 $ 14,662
451,376 451,376 300,000 (151,376)
3,266 3,266 13,790 10,524
220,000 220,000 396,972 176,972
$ 684,642 $ 684,642 $ 735,424 $ 50,782
$ 684,642 $ 684,642 $ 650,267 $ 34,375
$ 684,642 $ 684,642 $ 650,267 $ 34,375
$ - $ - $ 85,157 $ 85,157
$ - $ - $ 85,157 $ 85,157
- - 21,458 21,458
$ - $ - $ 106,615 $ 106,615
142
DISCRETELY PRESENTED COMPONENT UNIT
- SERVICE AUTHORITY
County of Bath,Virginia Exhibit 40
Statement of Net Position
Discretely Presented Component Unit-Service Authority
June 30, 2022
Component
Unit
Service
Authority
ASSETS
Current assets:
Cash and cash equivalents $ 3,618,798
Accounts receivable, net of allowances for uncollectibles 118,317
Total current assets $ 3,737,115
Noncurrent assets:
Restricted assets:
Cash and cash equivalents (restricted for debt service) $ 7,375
Cash and cash equivalents (restricted for security deposits) 42,689
Total restricted assets $ 50,064
Net OPEB asset $ 115
Capital assets:
Land and land rights $ 116,187
Machinery and equipment 533,124
Utility plant in service 21,987,853
Construction in progress 56,888
Accumulated depreciation (15,777,355)
Total capital assets $ 6,916,697
Total noncurrent assets $ 6,966,876
Total assets $ 10,703,991
DEFERRED OUTFLOWS OF RESOURCES
Pension related items $ 130,371
OPEB related items 6,361
Total deferred outflows of resources $ 136,732
LIABILITIES
Current liabilities:
Accounts payable $ 58,645
Customer deposits 42,689
Unearned revenue 3,662,574
Compensated absences-current portion 4,224
Bonds payable-current portion 20,473
Total current liabilities $ 3,788,605
Noncurrent liabilities:
Compensated absences-net of current portion $ 12,671
Bonds payable-net of current portion 296,859
Net OPEB liabilities 20,103
Net pension liability 141,324
Total noncurrent liabilities $ 470,957
Totalliabilities $ 4,259,562
DEFERRED INFLOWS OF RESOURCES
Pension related items $ 236,761
OPEB related items 8,817
Total deferred inflows of resources $ 245,578
NET POSITION
Net investment in capital assets $ 6,599,365
Restricted -reserve fund 7,375
Restricted -employee OPEB plan 115
Unrestricted (deficit) (271,272)
Total net position $ 6,335,583
143
County of Bath, Virginia Exhibit 41
Statement of Revenues, Expenses, and Changes in Net Position
Discretely Presented Component Unit- Service Authority
Year Ended June 30, 2022
Component
Unit
Service
Authority
OPERATING REVENUES
Charges for services:
Water revenues $ 392,943
Sewer revenues 756,218
Late and reconnect fees 28,789
Total operating revenues $ 1,177,950
OPERATING EXPENSES
Payroll and related benefits $ 566,483
Water 114,048
Sewer 160,509
Administration 54,055
Laboratory and engineering 22,555
Maintenance 36,309
Utilities and transportation 267,472
Insurance claims and premiums 27,810
Depreciation 461,382
Total operating expenses $ 1,710,623
Operating income (loss) $ (532,673)
NONOPERATING REVENUES (EXPENSES)
Interest income $ 2,676
Development fees 117,597
Total nonoperating revenues (expenses) $ 120,273
Change in net position $ (412,400)
Total net position - beginning 6,747,983
Total net position - ending $ 6,335,583
144
County of Bath, Virginia Exhibit 42
Statement of Cash Flows
Discretely Presented Component Unit- Service Authority
Year Ended June 30, 2022
Component
Unit
Service
Authority
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 1,176,598
Payments to suppliers (657,449)
Payments to employees (615,803)
Net cash provided by(used for) operating activities $ (96,654)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets $ (119,548)
Principal payments on bonds (20,473)
Development fees 184,827
Net cash provided by(used for) capital and related financing activities $ 44,806
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income $ 2,676
Net cash provided by(used for) investing activities $ 2,676
Net increase (decrease) in cash and cash equivalents $ (49,172)
Cash and cash equivalents - beginning - including restricted 3,718,034
Cash and cash equivalents - ending - including restricted $ 3,668,862
Reconciliation of operating income (loss)to net cash
provided by (used for) operating activities:
Operating income (loss) $ (532,673)
Adjustments to reconcile operating income (loss)to net cash
provided by(used for) operating activities:
Depreciation $ 461,382
(Increase) decrease in accounts receivable (4,245)
(Increase) decrease in net OPEB asset (115)
(Increase) decrease in deferred outflows of resources 32,111
Increase (decrease) in customer deposits 2,893
Increase (decrease) in accounts payable 25,309
Increase (decrease) in compensated absences (16,800)
Increase (decrease) in deferred inflows of resources 232,098
Increase (decrease) in net OPEB liabilities (9,107)
Increase (decrease) in net pension liability (287,507)
Total adjustments $ 436,019
Net cash provided by(used for) operating activities $ (96,654)
145
SUPPORTING SCHEDULES
County of Bath,Virginia Schedule 1
Page 1 of 5
Schedule of Revenues-Budget and Actual
Governmental Funds
Year Ended June 30,2022
Variance with
Final Budget-
Original Final Positive
Fund,Major and Minor Revenue Source Budget Budget Actual (Negative)
General Fund:
Revenue from local sources:
General property taxes:
Real property taxes $ 4,719,914 $ 4,719,914 $ 4,687,536 $ (32,378)
Real and personal public service corporation taxes 7,657,281 7,657,281 7,313,857 (343,424)
Personal propertytaxes 264,124 264,124 232,695 (31,429)
Penalties 10,000 10,000 40,563 30,563
Interest 10,000 10,000 16,376 6,376
Total general propertytaxes $ 12,661,319 $ 12,661,319 $ 12,291,027 $ (370,292)
Other local taxes:
Local sales and use taxes $ 750,000 $ 750,000 $ 942,980 $ 192,980
Consumption tax 18,000 18,000 19,991 1,991
Mixed beverage license taxes 1,600 1,600 1,655 55
Business license taxes 1,500 1,500 2,847 1,347
Motor vehicle license taxes 60,020 60,020 49,776 (10,244)
Bank stock taxes 38,000 38,000 48,896 10,896
Taxes on recordation and wills 20,500 20,500 81,663 61,163
Hotel and motel room taxes 400,000 400,000 462,589 62,589
Restaurant food taxes 600,000 600,000 685,748 85,748
Total other local taxes $ 1,889,620 $ 1,889,620 $ 2,296,145 $ 406,525
Permits,privilege fees,and regulatory licenses:
Animallicenses $ 1,000 $ 1,000 $ 1,098 $ 98
Permits and other licenses 40,100 46,850 183,293 136,443
Total permits,privilege fees,and regulatory licenses $ 41,100 $ 47,850 $ 184,391 $ 136,541
Fines and forfeitures:
Courtfines and forfeitures $ 2,000 $ 2,000 $ 1,373 $ (627)
Revenue from use of money and property:
Revenue from use of money $ 25,000 $ 25,000 $ 27,545 $ 2,545
Revenue from use of property - - 1,949 1,949
Total revenue from use of money and property $ 25,000 $ 25,000 $ 29,494 $ 4,494
Charges for services:
Charges for law enforcement and traffic control $ 5,000 $ 5,000 $ 5,065 $ 65
Charges for courthouse maintenance 3,000 3,000 4,271 1,271
Courthousesecurityfee 34,750 34,750 38,196 3,446
Concealed weapons permits - - 2,190 2,190
Charges for Commonwealth's Attorney - - 859 859
Sheriff's fees - - 321 321
Law library fees - - 476 476
Soil and erosion fees - - 600 600
Charges for sanitation and waste removal - - 21,149 21,149
Charges for parks and recreation - - 936 936
Charges for other protection - - 574 574
Charges for other services 21,000 21,000 21,035 35
Total charges for services $ 63,750 $ 63,750 $ 95,672 $ 31,922
Miscellaneous:
Miscellaneous $ 51,636 $ 55,361 $ 143,687 $ 88,326
Refunds and recoveries - 73,212 94,404 21,192
Total miscellaneous $ 51,636 $ 128,573 $ 238,091 $ 109,518
Total revenue from local sources $ 14,734,425 $ 14,818,112 $ 15,136,193 $ 318,081
146
County of Bath,Virginia Schedule 1
Page 2 of 5
Schedule of Revenues-Budget and Actual
Governmental Funds
Year Ended June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Major and Minor Revenue Source Budget Budget Actual (Negative)
General Fund:(Continued)
Intergovernmental:
Revenue from the Commonwealth:
Noncategorical aid:
Railroad rolling stock taxes $ 9,000 $ 9,000 $ 8,916 $ (84)
Mobile home titling tax 10,000 10,000 1,185 (8,815)
Communications taxes 100,000 100,000 82,484 (17,516)
Timber sales - - 43,069 43,069
Auto rental tax - - 1,834 1,834
Tax on deeds 5,500 5,500 - (5,500)
Personal property tax relief funds 40,279 40,279 40,276 (3)
Total noncategorical aid $ 164,779 $ 164,779 $ 177,764 $ 12,985
Categorical aid:
Shared expenses:
Commonwealth's attorney $ 77,118 $ 77,118 $ 76,819 $ (299)
Sheriff 564,058 564,058 563,335 (723)
Commissioner of revenue 88,273 88,273 88,207 (66)
Treasurer 85,606 85,606 83,842 (1,764)
Registrar/electoral board 42,095 42,095 57,250 15,155
Clerk of the Circuit Court 171,860 171,860 221,931 50,071
Total shared expenses $ 1,029,010 $ 1,029,010 $ 1,091,384 $ 62,374
Other categorical aid:
Shared expenses-Mountain Soil and Water
Conservation District $ 128,074 $ 128,074 $ 133,601 $ 5,527
Emergency medical services division fees 5,000 5,000 - (5,000)
Fire programs fund 20,000 20,000 30,000 10,000
E-911 Addressing/Mapping/Implementation Project 46,500 46,500 59,103 12,603
Virginia Juvenile Community Crime Control Act 6,585 6,585 6,585 -
Littergrant 6,000 6,000 7,981 1,981
Seized funds - - 1,495 1,495
Other state funds - - 14,431 14,431
Total other categorical aid $ 212,159 $ 212,159 $ 253,196 $ 41,037
Total categorical aid $ 1,241,169 $ 1,241,169 $ 1,344,580 $ 103,411
Total revenue from the Commonwealth $ 1,405,948 $ 1,405,948 $ 1,522,344 $ 116,396
Revenue from the federal government:
Noncategorical aid:
Payment in lieu of taxes $ 347,781 $ 347,781 $ 365,205 $ 17,424
Total noncategorical aid $ 347,781 $ 347,781 $ 365,205 $ 17,424
Categorical aid:
Local emergency planning grant $ 7,500 $ 7,500 $ - $ (7,500)
Coronavirus state and local fiscal recovery funds 400,000 400,000 22,607 (377,393)
Homeland security grant program - - 3,299 3,299
Total categorical aid $ 407,500 $ 407,500 $ 25,906 $ (381,594)
Total revenue from the federal government $ 755,281 $ 755,281 $ 391,111 $ (364,170)
Total General Fund $ 16,895,654 $ 16,979,341 $ 17,049,648 $ 70,307
147
County of Bath,Virginia Schedule 1
Page 3 of 5
Schedule of Revenues-Budget and Actual
Governmental Funds
Year Ended June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Major and Minor Revenue Source Budget Budget Actual (Negative)
Special Revenue Funds:
Virginia Public Assistance Fund:
Revenue from local sources:
Miscellaneous:
Other miscellaneous $ 125,920 $ 125,920 $ 576 $ (125,344)
Total miscellaneous $ 125,920 125,920 $ 576 (125,344)
Total revenue from local sources $ 125,920 $ 125,920 $ 576 $ (125,344)
Intergovernmental:
Revenue from the Commonwealth:
Categorical aid:
Public assistance and welfare administration $ 522,645 $ 522,645 $ 194,672 $ (327,973)
Total revenue from the Commonwealth $ 522,645 $ 522,645 $ 194,672 $ (327,973)
Revenue from the federal government:
Categorical aid:
Public assistance and welfare administration $ 74,663 $ 74,663 $ 407,335 $ 332,672
Total categorical aid $ 74,663 $ 74,663 $ 407,335 $ 332,672
Total revenue from the federal government $ 74,663 $ 74,663 $ 407,335 $ 332,672
Total Virginia Public Assistance Fund $ 723,228 $ 723,228 $ 602,583 $ (120,645)
CSA Fund:
Intergovernmental:
Revenue from the Commonwealth:
Categorical aid:
Comprehensive services act $ 18,851 $ 18,851 $ 109,216 $ 90,365
Total categorical aid $ 18,851 $ 18,851 $ 109,216 $ 90,365
Total revenue from the Commonwealth $ 18,851 $ 18,851 $ 109,216 $ 90,365
Total CSA Fund $ 18,851 $ 18,851 $ 109,216 $ 90,365
Special Lodging Tax Fund
Revenue from local sources:
Other local taxes:
Hotel and motel room taxes $ 1,000,000 $ 1,000,000 $ 1,040,984 $ 40,984
Total other local taxes $ 1,000,000 $ 1,000,000 $ 1,040,984 $ 40,984
Total revenue from local sources $ 1,000,000 $ 1,000,000 $ 1,040,984 $ 40,984
Total Special Lodging Tax Fund $ 1,000,000 $ 1,000,000 $ 1,040,984 $ 40,984
Lodging Tax-Marketing/Capital Fund:
Revenue from local sources:
Other local taxes:
Hotel and motel room taxes-designated for marketing $ 200,000 $ 200,000 $ 230,259 $ 30,259
Hotel and motel room taxes-designated for capital improvements 200,000 200,000 230,259 30,259
Total other local taxes $ 400,000 $ 400,000 $ 460,518 $ 60,518
Miscellaneous:
Other miscellaneous $ - $ 300 $ 1,376 $ 1,076
Total miscellaneous $ - $ 300 $ 1,376 $ 1,076
Total revenue from local sources $ 400,000 $ 400,300 $ 461,894 $ 61,594
Total Lodging Tax-Marketing/Capital Fund $ 400,000 $ 400,300 $ 461,894 $ 61,594
TotalPrimaryGovernment $ 19,037,733 $ 19,121,720 $ 19,264,325 $ 142,605
148
County of Bath,Virginia Schedule 1
Page 4 of 5
Schedule of Revenues-Budget and Actual
Governmental Funds
Year Ended June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Major and Minor Revenue Source Budget Budget Actual (Negative)
Discretely Presented Component Unit-School Board:
School Operating Fund:
Revenue from local sources:
Miscellaneous:
Refunds and recoveries $ 28,500 $ 28,500 $ 32,787 $ 4,287
Total miscellaneous 28,500 28,500 32,787 4,287
Total revenue from local sources $ 28,500 $ 28,500 $ 32,787 $ 4,287
Intergovernmental:
Revenues from local governments:
Contribution from County of Bath,Virginia $ 7,718,937 $ 7,718,937 $ 7,311,811 $ (407,126)
Revenue from the Commonwealth:
Categorical aid:
Share of state sales tax $ 570,786 $ 570,786 $ 711,227 $ 140,441
Basic school aid 634,343 634,343 566,535 (67,808)
Gifted and talented 5,200 5,200 4,972 (228)
Remedial education 16,500 16,500 15,776 (724)
Special Education 78,200 78,200 74,770 (3,430)
Textbook payment 10,747 10,747 10,276 (471)
Vocational standards of quality payments 92,392 92,392 95,912 3,520
Fringe benefits 131,200 131,200 125,446 (5,754)
At risk 40,105 40,105 38,327 (1,778)
English as a second language 1,148 1,148 1,148 -
Homebound payment - - 275 275
Early reading intervention 5,688 5,688 7,110 1,422
Remedial summer school - - 6,649 6,649
K-3 initiative 19,816 19,816 20,156 340
Lottery proceeds 200,000 200,000 200,000 -
School security equipment grant 0 139,154 114,866 (24,288)
Special education-foster children - - 279 279
Preschool Pilot Grant 42,418 42,418 40,560 (1,858)
Technology 128,000 128,000 128,000 -
Medicaid 30,000 30,000 18,116 (11,884)
Standards of Learning algebra readiness 2,873 2,873 2,872 (1)
National Forest Land Leasing - - 40,641 40,641
Other state funds 7,472 7,472 8,678 1,206
Total categorical aid $ 2,016,888 $ 2,156,042 $ 2,232,591 $ 76,549
Revenue from the federal government:
Noncategorical aid:
Payment in lieu of taxes $ 134,500 $ 134,500 $ 134,500 $ -
Total noncategorical aid $ 134,500 $ 134,500 $ 134,500 $ -
Categorical aid:
Title VI-B,special education handicapped $ 140,000 $ 140,000 $ 143,011 $ 3,011
Title I 100,000 100,000 58,380 (41,620)
Vocational education 8,000 8,000 7,495 (505)
149
County of Bath,Virginia Schedule 1
Page 5 of 5
Schedule of Revenues-Budget and Actual
Governmental Funds
Year Ended June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Major and Minor Revenue Source Budget Budget Actual (Negative)
Discretely Presented Component Unit-School Board:(Continued)
School Operating Fund:(Continued)
Intergovernmental:(Continued)
Revenue from the federal government:(Continued)
Categorical aid:(Continued)
Improving Teacher Quality $ 18,000 $ 18,000 $ 20,018 $ 2,018
Rural education achievement program 37,000 37,000 55,810 18,810
Title III 1,500 1,500 1,165 (335)
Immigrant and youth grant 10,000 10,000 14,821 4,821
Education stabilization fund(ESF) 344,303 344,303 129,181 (215,122)
Fostercare 79 79 - (79)
Forest reserve 40,000 40,000 64,001 24,001
Total categorical aid $ 698,882 $ 698,882 $ 493,882 $ (205,000)
Total revenue from the federal government $ 833,382 $ 833,382 $ 628,382 $ (205,000)
Total School Operating Fund $ 10,597,707 $ 10,736,861 $ 10,205,571 $ (531,290)
Special Revenue Fund:
School Cafeteria Fund:
Revenue from local sources:
Charges for services:
Cafeteria sales $ 10,000 $ 10,000 $ 24,662 $ 14,662
Total revenue from local sources $ 10,000 $ 10,000 $ 24,662 $ 14,662
Intergovernmental:
Revenues from local governments:
Contribution from County of Bath,Virginia $ 451,376 $ 451,376 $ 300,000 $ (151,376)
Revenue from the Commonwealth:
Categorical aid:
School food program grant $ 3,266 $ 3,266 $ 13,790 $ 10,524
Revenue from the federal government:
Categorical aid:
School food program grant $ 220,000 $ 220,000 $ 371,476 $ 151,476
USDA donated food - - 25,496 25,496
Total revenue from the federal government $ 220,000 $ 220,000 $ 396,972 $ 176,972
Total School Cafeteria Fund $ 684,642 $ 684,642 $ 735,424 $ 50,782
School Activity Funds
Revenue from local sources:
Miscellaneous revenue:
Other miscellaneous $ - $ - $ 293,156 $ 293,156
Total miscellaneous revenue $ - $ - $ 293,156 $ 293,156
Total School Activity Funds $ - $ - $ 293,156 $ 293,156
Total Discretely Presented Component Unit-School Board $ 11,282,349 $ 11,421,503 $ 11,234,151 $ (187,352)
150
County of Bath,Virginia Schedule 2
Page 1 of 4
Schedule of Expenditures-Budget and Actual
Governmental Funds
Year Ended June 30,2022
Variance with
Final Budget-
Original Final Positive
Fund,Function,Activity and Elements Budget Budget Actual (Negative)
Primary Government:
General Fund:
General government administration:
Legislative:
Board of supervisors $ 213,905 $ 214,792 $ 213,829 $ 963
General and financial administration:
Countyadministrator $ 328,503 $ 338,866 $ 311,697 $ 27,169
Commissioner of revenue 226,201 226,639 220,617 6,022
Assessors 129,000 129,000 108,626 20,374
Treasurer 262,733 263,293 261,246 2,047
Data Processing 84,700 84,262 61,417 22,845
Other general and financial administration 4,176 4,176 431 3,745
Total general and financial administration $ 1,035,313 $ 1,046,236 $ 964,034 $ 82,202
Board of elections:
Registrar $ 155,859 $ 155,859 $ 119,789 $ 36,070
Electoral board and officials 73,216 84,316 56,274 28,042
Total board of elections $ 229,075 $ 240,175 $ 176,063 $ 64,112
Total general government administration $ 1,478,293 $ 1,501,203 $ 1,353,926 $ 147,277
Judicial administration:
Courts:
Circuit court $ 22,889 $ 22,889 $ 14,180 $ 8,709
General district court 24,465 24,465 19,062 5,403
Special magistrates 1,728 1,728 2,912 (1,184)
Clerk of the circuit court 319,001 339,891 330,405 9,486
Total courts $ 368,083 $ 388,973 $ 366,559 $ 22,414
Commonwealth's attorney:
Commonwealth's attorney $ 139,023 $ 139,023 $ 138,543 $ 480
Total commonwealth's attorney $ 139,023 $ 139,023 $ 138,543 $ 480
Total judicial administration $ 507,106 $ 527,996 $ 505,102 $ 22,894
Public safety:
Law enforcement and traffic control:
Sheriff $ 1,138,083 $ 1,222,073 $ 1,257,034 $ (34,961)
Total law enforcement and traffic control $ 1,138,083 $ 1,222,073 $ 1,257,034 $ (34,961)
Fire and rescue services:
Fire department $ 427,156 $ 378,156 $ 361,619 $ 16,537
Contribution to fire and rescue 156,300 205,300 207,696 (2,396)
Total fire and rescue services $ 583,456 $ 583,456 $ 569,315 $ 14,141
Correction and detention:
County/City operated institutions $ 115,000 $ 185,542 $ 185,541 $ 1
Total correction and detention $ 115,000 $ 185,542 $ 185,541 $ 1
Inspections:
Building $ 232,462 $ 239,212 $ 217,856 $ 21,356
Total inspections $ 232,462 $ 239,212 $ 217,856 $ 21,356
Other protection:
Animal control $ 186,762 $ 186,762 $ 178,073 $ 8,689
Emergency communications 573,165 615,592 548,635 66,957
Emergency management 106,184 266,559 264,237 2,322
Medical examiner(coroner) 200 200 40 160
Courthouse security 27,903 27,903 - 27,903
VJCCCA 6,585 6,585 6,585 -
Total other protection $ 900,799 $ 1,103,601 $ 997,570 $ 106,031
Total public safety $ 2,969,800 $ 3,333,884 $ 3,227,316 $ 106,568
151
County of Bath,Virginia Schedule 2
Page 2 of 4
Schedule of Expenditures-Budget and Actual
Governmental Funds
June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Function,Activity and Elements Budget Budget Actual (Negative)
Primary Government: (Continued)
General Fund:(Continued)
Public works:
Sanitation and waste removal:
General engineering/administration $ 1,091,401 $ 1,091,401 $ 1,021,965 $ 69,436
Total sanitation and waste removal $ 1,091,401 $ 1,091,401 $ 1,021,965 $ 69,436
Maintenance of general buildings and grounds:
General engineering/administration $ 615,993 $ 268,993 $ 216,953 $ 52,040
AirportAuthority 51,636 # 51,636 66,421 (14,785)
Total maintenance of general buildings and grounds $ 670,629 $ 320,629 $ 283,374 $ 37,255
Total public works $ 1,762,030 $ 1,412,030 $ 1,305,339 $ 106,691
Health and welfare:
Health:
Local health department $ 100,592 $ 100,592 $ 100,592 $ -
Total health $ 100,592 $ 100,592 $ 100,592 $ -
Mental health and mental retardation:
Administration $ 33,924 $ 33,924 $ 33,924 $ -
Total mental health and mental retardation $ 33,924 $ 33,924 $ 33,924 $ -
Welfare:
Welfare administration
Publicwelfare $ 76,155 $ 76,155 $ 76,155 $ -
Tax relief for the elderly 85,917 85,917 82,612 3,305
Total welfare $ 162,072 $ 162,072 $ 158,767 $ 3,305
Total health and welfare $ 296,588 $ 296,588 $ 293,283 $ 3,305
Education:
Other instructional costs:
Contributions to community colleges $ 5,749 $ 5,749 $ 5,749 $ -
Contributions to County School Board 8,170,313 8,170,313 7,611,811 558,502
Total education $ 8,176,062 $ 8,176,062 $ 7,617,560 $ 558,502
Parks,recreation,and cultural:
Parks and recreation:
Administration $ 423,178 $ 446,756 $ 402,380 $ 44,376
Total parks and recreation $ 423,178 $ 446,756 $ 402,380 $ 44,376
Library:
Regionallibrary $ 151,393 $ 151,393 $ 151,393 $ -
Totallibrary $ 151,393 $ 151,393 $ 151,393 $ -
Total parks,recreation,and cultural $ 574,571 $ 598,149 $ 553,773 $ 44,376
Community development:
Planning and community development:
Planning $ 137,331 $ 144,061 $ 84,795 $ 59,266
Economic development 30,000 30,000 15,000 15,000
Total planning and community development $ 167,331 $ 174,061 $ 99,795 $ 74,266
Environmental management:
Administration $ 150,274 $ 150,274 $ 153,572 $ (3,298)
Total environmental management $ 150,274 $ 150,274 $ 153,572 $ (3,298)
Cooperative extension program:
Administration $ 59,438 $ 59,438 $ 55,333 $ 4,105
Total cooperative extension program $ 59,438 $ 59,438 $ 55,333 $ 4,105
Total community development $ 377,043 $ 383,773 $ 308,700 $ 75,073
152
County of Bath,Virginia Schedule 2
Page 3 of 4
Schedule of Expenditures-Budget and Actual
Governmental Funds
June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Function,Activity and Elements Budget Budget Actual (Negative)
Primary Government:(Continued)
General Fund:(Continued)
Nondepartmental:
Miscellaneous $ 254,858 $ 175,206 $ 132,495 $ 42,711
Total nondepartmental $ 254,858 $ 175,206 $ 132,495 $ 42,711
Capital outlay:
Capital projects $ 510,000 $ 1,796,232 $ 1,421,374 $ 374,858
Total capital outlay $ 510,000 $ 1,796,232 $ 1,421,374 $ 374,858
Debt service:
Principal retirement $ 1,062,409 $ 1,062,409 $ 1,065,000 $ (2,591)
Interest and other fiscal charges 26,553 26,553 26,553 -
Total debt service $ 1,088,962 $ 1,085,962 $ 1,091,553 $ (2,591)
Total General Fund $ 17,995,313 $ 19,290,085 $ 17,810,421 $ 1,479,664
Special Revenue Funds:
Virginia Public Assistance Fund:
Health and welfare:
Welfare and social services:
Welfare administration $ 674,871 $ 674,871 $ 631,503 $ 43,368
Purchased services 106,728 106,728 62,888 43,840
Child care 100,000 100,000 107 99,893
Total health and welfare $ 881,599 $ 881,599 $ 694,498 $ 187,101
Total Virginia Public Assistance Fund $ 881,599 $ 881,599 $ 694,498 $ 187,101
CSA Fund:
Health and welfare:
Welfare and social services:
Comprehensive services $ 218,851 $ 219,742 $ 196,110 $ 23,632
Total CSA Fund $ 218,851 $ 219,742 $ 196,110 $ 23,632
Special Lodging Tax Fund:
Economic development $ 1,200,000 $ 1,200,000 $ - $ 1,200,000
Total Special Lodging Tax Fund $ 1,200,000 $ 1,200,000 $ - $ 1,200,000
Lodging Tax Marketing 8�Capital Fund:
Economic development $ 400,000 $ 400,300 $ 206,112 $ 194,188
Total Marketing/Capital Fund $ 400,000 $ 400,300 $ 206,112 $ 194,188
Total Primary Government $ 20,695,763 $ 21,991,726 $ 18,907,141 $ 3,084,585
Discretely Presented Component Unit-School Board:
School Operating Fund:
Education:
Instruction costs:
Instruction $ 7,557,646 $ 7,627,548 $ 7,150,059 $ 477,489
Operating costs:
Administration,attendance and health services $ 516,012 $ 516,012 $ 495,694 $ 20,318
Pupil transportation 921,673 926,969 792,384 134,585
Operation and maintenance of school plant 1,602,376 1,666,332 1,613,594 52,738
Total operating costs $ 3,040,061 $ 3,109,313 $ 2,901,672 $ 207,641
Debt service:
Principal retirement $ - $ - $ 105,645 $ (105,645)
Interest and otherfiscal charges - - 48,195 (48,195)
Total debt service $ - $ - $ 153,840 $ (153,840)
Total education $ 10,597,707 $ 10,736,861 $ 10,205,571 $ 531,290
Total School Operating Fund $ 10,597,707 $ 10,736,861 $ 10,205,571 $ 531,290
153
County of Bath,Virginia Schedule 2
Page 4 of 4
Schedule of Expenditures-Budget and Actual
Governmental Funds
June 30,2022(Continued)
Variance with
Final Budget-
Original Final Positive
Fund,Function,Activity and Elements Budget Budget Actual (Negative)
Discretely Presented Component Unit-School Board:(Continued)
Special revenue fund:
School Cafeteria Fund:
Education:
School food services:
Administration of school food program $ 684,642 $ 684,642 $ 650,267 $ 34,375
Total School Cafeteria Fund $ 684,642 $ 684,642 $ 650,267 $ 34,375
School Activity Funds
Education:
Education $ - $ - $ 286,958 (286,958)
Total education $ - $ - $ 286,958 (286,958)
Total School Activity Funds $ - $ - $ 286,958 (286,958)
Total Discretely Presented Component Unit-School Board $ 11,282,349 $ 11,421,503 $ 11,142,796 $ 278,707
154
STATISTICAL SECTION
STATISTICAL SECTION
Contents Tables
Financial Trends
These tables contain trend information to help the reader understand
how the County's financial performance and well-being have changed
over time. 1 - 5
Revenue Capacity
These tables contain information to help the reader assess the factors
affecting the County's ability to generate its property and sales taxes. 6-10
Debt Capacity
This table presents information to help the reader assess the
affordability of the County's current levels of outstanding debt and the
County's ability to issue debt in the future. 11-12
Demographic and Economic Information
This table offers demographic and economic indicators to help the
reader understand the environment within which the County's financial
activities take place and to help make comparisons over time and with
other governments. 13-14
Operating Information
These tables contain information about the County's operations and
resources to help the reader understand how the County's financial
information relate to the services the County provides and the activities
it perForms. 15-17
Sources: Unless otherwise noted, the information in these tables is
derived from the comprehensive annual financial reports for the relevant
year.
County of Bath,Virginia
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017 (1)
Governmental activities
Net investment in capital assets $ 1,805,410 $ 1,322,610 $ 1,057,884 $ 1,474,375 $ 1,510,211
Restricted - - - - -
Unrestricted 9,882,222 10,072,864 7,835,053 6,712,935 6,073,950
Total governmental activities net position $ 11,687,632 $ 11,395,474 $ 8,892,937 $ 8,187,310 $ 7,584,161
Primary government
Net investment in capital assets $ 1,805,410 $ 1,322,610 $ 1,057,884 $ 1,474,375 $ 1,510,211
Restricted - - - - -
Unrestricted 9,882,222 10,072,864 7,835,053 6,712,935 6,073,950
Total primary government net position $ 11,687,632 $ 11,395,474 $ 8,892,937 $ 8,187,310 $ 7,584,161
(1) During fiscal year 2018, the County adopted GASB 75 which required restatement of the beginning net position for the year
ended June 30, 2017. The net position for fiscal year 2017 is preseted as restated.
155
Table 1
Fiscal Year
2018 2019 2020 2021 2022
$ 1,313,518 $ 1,200,664 $ 966,079 $ 1,839,205 $ 3,120,128
- 752,410 1,732,105 472,599 1,557,724
6,625,165 6,685,387 6,390,469 6,826,797 6,209,531
$ 7,938,683 $ 8,638,461 $ 9,088,653 $ 9,138,601 $ 10,887,383
$ 1,313,518 $ 1,200,664 $ 966,079 $ 1,839,205 $ 3,120,128
- 752,410 1,732,105 472,599 1,557,724
6,625,165 6,685,387 6,390,469 6,826,797 6,209,531
$ 7,938,683 $ 8,638,461 $ 9,088,653 $ 9,138,601 $ 10,887,383
156
County of Bath,Virginia
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017
Expenses
Governmental activities:
General government administration $ 1,268,772 $ 1,049,191 $ 1,020,326 $ 1,174,034 $ 1,114,156
Judicial administration 439,010 369,801 356,973 388,586 439,940
Public safety 2,112,434 2,478,869 2,487,830 2,646,136 2,925,952
Public works 1,155,574 1,429,114 1,421,247 1,736,640 1,097,385
Health and welfare 935,708 941,207 1,035,457 1,051,764 1,016,210
Education 7,459,886 8,899,869 9,084,728 8,815,193 9,395,332
Parks,recreation and cultural 539,930 542,796 511,218 541,942 555,200
Community development 969,681 1,087,763 1,307,591 1,216,657 785,851
Nondepartmental 65,610 68,899 76,482 96,606 129,098
Interest on long-term debt 1,234,856 196,898 172,996 156,066 134,714
Total governmental activities expenses $ 16,181,461 $ 17,064,407 $ 17,474,848 $ 17,823,624 $ 17,593,838
Total primary government expenses $ 16,181,461 $ 17,064,407 $ 17,474,848 $ 17,823,624 $ 17,593,838
Program Revenues
Governmental activities:
Charges for services:
General government administration $ 17,263 $ 18,107 $ 15,279 $ 15,612 $ 20,584
Judicial administration 16,900 25,980 29,729 27,207 32,006
Public safety 110,031 119,570 61,237 36,172 35,985
Public works 73,434 24,600 37,625 15,619 1,184
Parks,recreation and cultural 7,470 8,267 8,308 5,189 6,093
Operating grants and contributions 1,721,339 1,817,277 2,133,388 1,967,670 1,919,398
Capital grants and contributions - 25,000 15,000 190,572 251,865
Total governmental activities program revenues $ 1,946,437 $ 2,038,801 $ 2,300,566 $ 2,258,041 $ 2,267,115
Total primary government program revenues $ 1,946,437 $ 2,038,801 $ 2,300,566 $ 2,258,041 $ 2,267,115
Net(expense)/revenue
Governmental activities $ (14,235,024) $ (15,025,606) $ (15,174,282)$ (15,565,583) $ (15,326,723)
Total primary government net expense $ (14,235,024) $ (15,025,606) $ (15,174,282)$ (15,565,583) $ (15,326,723)
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes
Propertytaxes $ 11,685,185 $ 11,720,316 $ 11,682,189 $ 11,540,509 $ 11,608,685
Local sales and use taxes 873,109 920,676 925,382 789,831 937,441
Restaurant food tax 879,825 859,248 691,592 789,831 834,316
Motor vehicle licenses taxes 72,794 73,882 75,778 75,514 76,835
Taxes on recordation and wills 98,445 50,256 63,019 45,124 41,867
Bank stock taxes 33,918 37,797 55,675 46,567 40,394
Hotel and motel room taxes 823,534 969,850 1,008,345 1,078,690 1,103,163
Other local taxes 20,760 21,377 21,244 20,753 20,704
Unrestricted grants and contributions 337,617 321,975 346,539 370,041 402,731
Unrestricted revenues from use
of money and property 43,463 35,934 12,915 18,009 27,767
Miscellaneous 78,866 67,737 41,127 85,087 43,306
Effect of change in accounting principle(1) - - - - (489,260)
Total governmental activities $ 14,947,516 $ 15,079,048 $ 14,923,805 $ 14,859,956 $ 14,647,949
Total primary government $ 14,947,516 $ 15,079,048 $ 14,923,805 $ 14,859,956 $ 14,647,949
Change in Net Position
Governmental activities $ 712,492 $ 53,442 $ (250,477)$ (705,627) $ (678,774)
Total primary government $ 712,492 $ 53,442 $ (250,477)$ (705,627) $ (678,774)
(1)During fiscal year 2018,the County adopted GASB 75 which required restatement of
the beginning net position for the year ended June 30,2017. The resulting restatement is
presented as an other change in Net Position for fiscal year 2017.
157
Table 2
Fiscal Year
2018 2019 2020 2021 2022
$ 1,134,535 $ 1,109,785 $ 1,251,439 $ 1,303,908 $ 1,316,574
428,181 400,581 432,280 483,149 498,534
2,787,707 2,549,396 2,709,613 2,883,198 3,222,736
1,179,161 1,343,309 1,417,759 1,303,686 1,299,694
984,438 1,032,741 1,085,540 1,308,558 1,167,089
9,296,708 9,214,671 8,690,331 7,536,411 8,632,878
553,239 583,930 534,838 488,701 561,003
496,504 634,872 781,892 3,309,890 514,812
78,239 88,741 137,103 132,639 132,495
119,053 102,067 77,099 51,650 25,878
$ 17,057,765 $ 17,060,093 $ 17,117,894 $ 18,801,790 $ 17,371,693
$ 17,057,765 $ 17,060,093 $ 17,117,894 $ 18,801,790 $ 17,371,693
$ 23,346 $ 25,560 $ 24,486 $ 29,298 $ 21,035
25,698 22,173 23,980 36,724 45,175
69,457 76,040 56,338 105,276 192,541
10,126 10,859 123,777 1,471 21,749
3,147 3,162 4,315 267 936
1,667,338 1,765,539 1,942,836 2,891,799 2,022,606
57,361 59,328 47,497 63,963 59,103
$ 1,856,473 $ 1,962,661 $ 2,223,229 $ 3,128,798 $ 2,363,145
$ 1,856,473 $ 1,962,661 $ 2,223,229 $ 3,128,798 $ 2,363,145
$ (15,201,292)$ (15,097,432)$ (14,894,665) $ (15,672,992) $ (15,008,548)
$ (15,201,292)$ (15,097,432)$ (14,894,665) $ (15,672,992) $ (15,008,548)
$ 11,596,114 $ 11,511,516 $ 11,431,037 $ 12,410,737 $ 12,199,771
849,993 827,700 704,233 683,915 942,980
905,907 828,554 576,030 473,147 685,748
74,859 77,603 74,597 60,390 49,776
475,062 44,840 40,177 70,008 81,663
39,893 48,833 42,637 40,980 48,896
1,091,064 1,762,955 1,709,035 1,317,650 1,964,091
22,006 21,560 20,355 21,451 24,493
395,213 499,335 509,199 535,267 584,779
56,350 112,172 143,974 25,159 29,494
49,353 62,142 93,583 84,236 145,639
$ 15,555,814 $ 15,797,210 $ 15,344,857 $ 15,722,940 $ 16,757,330
$ 15,555,814 $ 15,797,210 $ 15,344,857 $ 15,722,940 $ 16,757,330
$ 354,522 $ 699,778 $ 450,192 $ 49,948 $ 1,748,782
$ 354,522 $ 699,778 $ 450,192 $ 49,948 $ 1,748,782
158
County of Bath,Virginia Table 3
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
Motor
Local sales Vehicle Record- Hotel Other
Fiscal Property and use Restaurant License ation and and Motel Local
Year Tax Tax Food Tax Tax Wills Tax Taxes Taxes Total
2022 $ 12,1gg,771 $ 942,980 $ 685,748 $ 49,776 $ 81,663 $ 1,964,091 $ 73,389 $ 15,997,418
2021 12,410,737 683,915 473,147 60,390 70,008 1,317,650 62,431 15,078,278
2020 11,431,037 704,233 576,030 74,597 40,177 1,709,035 62,992 14,598,101
2019 11,511,516 827,700 828,554 77,603 44,840 1,762,955 70,393 15,123,561
2018 11,596,114 849,993 905,907 74,859 475,062 1,091,064 61,899 15,054,898
2017 11,608,685 937,441 834,316 76,835 41,867 1,103,163 61,098 14,663,405
2016 11,540,509 789,831 789,831 75,514 45,124 1,078,690 67,320 14,386,819
2015 11,682,189 925,382 691,592 75,778 63,019 1,008,345 76,919 14,523,224
2014 11,720,316 920,676 859,248 73,882 50,256 969,850 59,174 14,653,402
2013 11,685,185 873,109 879,825 72,794 98,445 823,534 54,678 14,487,570
159
THIS PAGE LEFT BLANK INTENTIONALLY
County of Bath, Virginia
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017
General fund
Nonspendable $ 8,474 $ 15,164 $ 39,978 $ 29,669 $ 10,827
Restricted - - - - -
Committed 70,490 8,252 - - -
Assigned 6,134,500 6,241,060 299,643 72,674 163,500
Unassigned 3,169,892 3,201,601 9,015,028 8,204,617 7,794,839
Total general fund $ 9,383,356 $ 9,466,077 $ 9,354,649 $ 8,306,960 $ 7,969,166
All other governmental funds
Nonspendable $ - $ - $ 2,540 $ 200 $ -
Resctricted
Economic development - - - - -
Committed for:
Special revenue funds 484,479 586,124 674,451 465,304 727,725
Total all other governmental funds $ 484,479 $ 586,124 $ 676,991 $ 465,504 $ 727,725
160
Table 4
Fiscal Year
2018 2019 2020 2021 2022
$ 37,826 $ 41,359 $ 86,483 $ 90,794 $ 127,765
- 55,403 - - 1,505
270,951 27,061 534,012 881,357 650,084
7,918,047 7,841,447 7,039,593 7,188,448 6,441,663
$ 8,226,824 $ 7,965,270 $ 7,660,088 $ 8,160,599 $ 7,221,017
$ - $ - $ - $ - $ -
- 697,007 1,732,105 472,599 1,513,583
1,042,371 1,178,719 1,208,331 1,257,106 1,512,888
$ 1,042,371 $ 1,875,726 $ 2,940,436 $ 1,729,705 $ 3,026,471
161
County of Bath,Virginia
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017
Revenues
Generalpropertytaxes $ 11,719,341 $ 11,675,049 $ 11,778,520 $ 11,520,566 $ 11,597,266
Other local taxes 2,802,385 2,933,086 2,841,035 2,846,310 3,054,720
Permits,privilege fees and regulatory licenses 103,695 112,675 55,267 29,122 30,973
Fines and forfeitures 968 5,841 8,130 5,647 8,676
Revenue from use of money and property 43,463 35,934 12,915 18,009 27,767
Charges for services 86,435 78,008 88,781 65,030 56,203
Miscellaneous 78,866 67,737 41,127 85,087 43,306
Recovered costs 51,539 24,453 26,717 25,518 47,344
Intergovernmental:
Commonwealth 1,420,094 1,489,796 1,564,092 1,583,905 1,656,392
Federal 672,862 674,456 930,835 944,378 917,602
Total revenues $ 16,979,648 $ 17,097,035 $ 17,347,419 $ 17,123,572 $ 17,440,249
Expenditures
Generalgovernmentadministration $ 975,861 $ 947,808 $ 982,285 $ 1,125,533 $ 1,105,739
Judicial administration 431,886 366,567 371,390 401,423 438,287
Public safety 1,889,823 2,131,542 2,129,588 2,600,932 2,752,004
Pu bl ic works 1,172,565 1,427,212 1,005,518 1,743,951 1,103,133
Health and welfare 928,633 934,589 1,055,014 1,051,884 1,005,510
Education 7,564,786 7,586,708 8,071,628 7,955,783 8,419,432
Parks,recreation and cultural 505,283 469,312 495,977 506,166 522,250
Communitydevelopment 966,366 1,085,578 1,311,770 1,551,947 851,260
Nondepartmental 64,947 68,899 76,482 96,606 129,098
Capital projects 973,322 806,721 784,479 261,585 179,128
Debt service:
Principal 9,280,000 915,000 910,000 930,000 950,000
Interest and other fiscal charges 1,226,629 197,733 173,849 156,938 135,606
Total expenditures $ 25,980,101 $ 16,937,669 $ 17,367,980 $ 18,382,748 $ 17,591,447
Excess of revenues over(under)expenditures $ (9,000,453) $ 159,366 $ (20,561) $ (1,259,176) $ (151,198)
Other financing sources(uses)
Transfers in $ 239,450 $ 154,689 $ 209,891 $ 190,527 $ 168,674
Transfers out (239,450) (154,689) (209,891) (190,527) (168,674)
Issuance of indebtedness 9,545,000 25,000 - - -
Total other financing sources(uses) $ 9,545,000 $ 25,000 $ - $ - $ -
Net change in fund balances $ 544,547 $ 184,366 $ (20,561) $ (1,259,176) $ (151,198)
Debt service as a percentage of
noncapital expenditures 7.7186°/o 6.5696% 6.3961% 6.0673% 6.2947%
162
Table 5
Fiscal Year
2018 2019 2020 2021 2022
$ 11,613,869 $ 11,479,901 $ 11,439,766 $ 12,334,038 $ 12,291,027
3,458,784 3,612,045 3,167,064 2,667,541 3,797,647
60,352 69,300 49,537 97,382 184,391
3,496 1,096 2,135 1,864 1,373
56,350 112,172 143,974 25,159 29,494
67,926 67,398 181,224 73,790 95,672
49,353 62,142 93,583 84,236 145,639
23,622 36,683 53,548 35,086 94,404
1,607,505 1,586,774 1,598,752 1,728,908 1,826,232
512,407 737,428 900,780 1,762,121 798,446
$ 17,453,664 $ 17,764,939 $ 17,630,363 $ 18,810,125 $ 19,264,325
$ 1,034,464 $ 1,137,128 $ 1,177,629 $ 1,196,800 $ 1,353,926
419,515 422,716 416,402 455,632 505,102
2,681,454 2,624,468 2,703,132 2,655,447 3,227,316
1,268,853 1,347,909 1,415,121 1,350,467 1,305,339
975,652 1,067,062 1,072,978 1,271,670 1,183,891
8,306,608 8,162,771 7,459,631 7,536,411 7,617,560
525,185 600,276 500,956 483,036 553,773
496,425 644,067 779,827 3,304,827 514,812
78,239 88,741 137,103 132,639 132,495
- - 110,000 40,791 1,421,374
975,000 995,000 1,020,000 1,040,000 1,065,000
119,965 103,000 78,056 52,625 26,553
$ 16,881,360 $ 17,193,138 $ 16,870,835 $ 19,520,345 $ 18,907,141
$ 572,304 $ 571,801 $ 759,528 $ (710,220) $ 357,184
$ 143,663 $ 147,455 $ 148,677 $ 288,672 $ 178,809
(143,663) (147,455) (148,677) (288,672) (178,809)
$ - $ - $ - $ - $ -
$ 572,304 $ 571,801 $ 759,528 $ (710,220) $ 357,184
6.5317% 6.4875% 6.5825% 5.6321% 5.9977°/a
163
County of Bath,Virginia Table 6
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Local Motor Hotel and
sales Vehicle Record- Motel Other
Fiscal Property and use Meals License ation and Room Local
Year Tax Tax Tax Tax Wills Tax Tax(1) Taxes Total
2022 $ 12,291,027 $ 942,980 $ 685,748 $ 49,776 $ 81,663 $ 1,964,091 $ 73,389 $ 16,088,674
2021 12,334,038 683,915 473,147 60,390 70,008 1,317,650 62,431 15,001,579
2020 11,439,766 704,233 576,030 74,597 40,177 1,709,035 62,992 14,606,830
2019 11,479,901 827,700 828,554 77,603 44,840 1,762,955 70,393 15,091,946
2018 11,613,869 849,993 905,907 74,859 475,062 1,091,064 61,899 15,072,653
2017 11,597,266 937,441 834,316 76,835 41,867 1,103,163 61,098 14,651,986
2016 11,520,566 789,831 789,831 75,514 45,124 1,078,690 67,320 14,366,876
2015 11,778,520 925,382 691,592 75,778 63,019 1,008,345 76,919 14,619,555
2014 11,675,049 920,676 859,248 73,882 50,256 969,850 59,174 14,608,135
2013 11,719,341 873,109 879,825 72,794 98,445 823,534 54,678 14,521,726
(1) Includes lodging tax reported in the Lodging Tax/Marketing Capital Fund and the Special Lodging Tax Fund.
164
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County of Bath,Virginia
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Machinery Total Taxable
Fiscal Real Personal and Public Assessed
Year Estate(1) Property Tools Service (2) Value
2022 $ 890,063,000 $ 57,809,200 $ 3,479,700 $ 1,329,070,173 $ 2,280,422,073
2021 885,650,700 63,434,600 4,415,100 1,376,210,049 2,329,710,449
2020 883,391,700 62,539,400 4,911,200 1,385,637,012 2,336,479,312
2019 881,058,000 60,776,540 805,600 1,411,711,020 2,354,351,160
2018 875,003,700 56,958,300 601,100 1,432,056,425 2,364,619,525
2017 981,958,400 58,050,800 368,100 1,459,194,817 2,499,572,117
2016 978,673,900 60,240,600 408,900 1,448,811,871 2,488,135,271
2015 977,065,400 57,716,100 459,700 1,482,067,106 2,517,308,306
2014 968,454,300 55,169,760 749,700 1,495,398,310 2,519,772,070
2013 964,065,600 57,923,200 81,300 1,494,282,594 2,516,352,694
Source: Commissioner of Revenue
(1) Real estate is assessed at 100% of fair value.
(2)Assessed values are established by the State Corporation Commission
(3) Provided for real estate values only. Actual taxable value is net of land use and tax relief for the elderly.
(4)Source: Virginia Department of Taxation
165
Table 7
Estimated Assessed State
Actual Value as a Sales Total
Taxable Percentage of Assessment Direct
Value (3) Actual Value (1) Ratio(4) Rate
$ 837,484,200 106.28% 103.28% 2.00
836,582,900 105.87% 101.09% 2.00
834,858,400 105.81% 103.48% 1.70
829,665,900 106.19% 112.39% 1.70
824,266,700 106.16% 107.70% 1.70
887,437,400 110.65% 107.70% 1.66
887,643,600 110.26°/a 99.82% 1.66
889,111,900 109.89% 104.98% 1.66
880,351,500 110.01°/a 99.19% 1.66
876,106,500 110.04% 106.65% 1.66
166
County of Bath, Virginia Table 8
Property Tax Rates (1)
Direct and Overlapping Governments
Last Ten Fiscal Years
Direct Rates
Fiscal Real Personal Mobile Machinery
Year Estate Property Homes and Tools
2022 $ 0.55 $ 0.45 $ 0.55 $ 0.45
2021 0.55 0.45 0.55 0.45
2020 0.50 0.35 0.50 0.35
2019 0.50 0.35 0.50 0.35
2018 0.50 0.35 0.50 0.35
2017 0.48 0.35 0.48 0.35
2016 0.48 0.35 0.48 0.35
2015 0.48 0.35 0.48 0.35
2014 0.48 0.35 0.48 0.35
2013 0.48 0.35 0.48 0.35
(1) Per$100 of assessed value
167
COUNTY OF BATH,VIRGINIA Table 9
Principal Property Taxpayers
Current Year and the Period Nine Years Prior
Fiscal Year 2022 Fiscal Year 2013
2021 %of Total 2012 %of Total
Type Assessed Assessed Assessed Assessed
Taxpayer Business Valuation Valuation Valuation Valuation
Public Service Utilities (Power, etc.) $ 1,374,574,692 59.002% $ 1,431,099,852 80.755%
The Homestead LC Hotel 82,614,200 3.546% 103,898,800 5.863%
Warm Spring Investment R.E. Prop. &invst. 63,551,700 3.586%
NA Homestead Preserve Hotel 24,392,700 1.047%
The Owners Club Timeshares 22,803,300 0.979% 23,610,800 1.332%
DG Land Holdings R.E. Prop. &invst. 7,450,600 0.320%
Fort Lewis Lodge Lodging 4,568,500 0.196% 4,536,500 0.256%
Bill Chambers Real Estate Dev. 2,693,900 0.116%
Plecker&Son Construction 2,070,500 0.089% 2,551,100 0.144%
CA Partners Real Estate Dev. 1,019,100 0.044% 2,124,700 0.120%
Lockridge Enterprises Farming 1,756,300 0.075% 1,833,400 0.103%
VA Hot Springs Land Co. Real Estate Dev. 122,900 0.005% 4,588,900 0.259%
Cambata Industries Farming; aviation 8,323,500 0.470%
$ 1,524,391,292 65.43% $ 1,646,119,252 92.89%
Source: Commissioner of Revenue
168
County of Bath, Virginia Table 10
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Total Tax Year of the Levy Collections Total Collections to Date
Fiscal Levy for Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2022 $ 12,260,458 $ 12,047,887 98.27% $ - $ 12,047,887 98.27%
2021 12,523,999 12,237,546 97.71% 235,503 12,473,049 99.59%
2020 11,403,031 11,246,968 98.63% 128,943 11,375,911 99.76%
2019 11,492,138 11,314,582 98.45% 159,255 11,473,837 99.84%
2018 11,551,252 11,376,569 98.49% 163,756 11,540,325 99.91%
2017 11,555,323 11,262,008 97.46% 287,317 11,549,325 99.95%
2016 11,499,348 11,327,388 98.50% 168,252 11,327,388 98.50%
2015 11,644,754 11,494,387 98.71% 147,836 11,642,223 99.98%
2014 11,670,710 11,469,643 98.28% 198,660 11,668,303 99.98%
2013 11,654,162 11,475,356 98.47% 176,897 11,652,253 99.98%
Source: Commissioner of Revenue, County Treasurer's office
169
County of Bath,Virginia Table 11
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
General Other Total Percentage
Fiscal Obligation Literary Notes/ Capital Primary of Personal Per
Year Bonds Fund Loans Bonds Leases Government Income (1) Capita(1)
2022 $ - $ - $ - $ - $ - 0.00% $ -
2021 - - 1,065,000 - 1,065,000 0.35% 245
2020 - - 2,105,000 - 2,105,000 0.76% 487
2019 - - 3,125,000 - 3,125,000 1.18% 706
2018 - - 4,120,000 - 4,120,000 1.63% 904
2017 - - 5,095,000 - 5,095,000 2.13% 1,095
2016 - - 6,045,000 - 6,045,000 2.52% 1,279
2015 - - 6,975,000 - 6,975,000 3.08% 1,462
2014 - - 7,885,000 - 7,885,000 3.84% 1,708
2013 - - 8,775,000 - 8,775,000 3.95% 1,923
Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements.
(1)See the Schedule of Demographic and Economic Statistics-Table 13.
170
County of Bath, Virginia Table 12
Ratio of Net General Bonded Debt to
Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Ratio of Net
General
Obligation Net
Gross Less: Amounts Net Debt to Bonded
Fiscal Bonded Reserved for Bonded Assessed Debt per
Year Debt Debt Service Debt (3) Value (2) Capita (1)
2022 $ - $ - $ - 0.00% $ -
2021 1,065,000 - 1,065,000 0.05% 245
2020 2,105,000 - 2,105,000 0.09% 487
2019 3,125,000 - 3,125,000 0.13% 706
2018 4,120,000 - 4,120,000 0.17% 904
2017 5,095,000 - 5,095,000 0.20% 1,095
2016 6,045,000 - 6,045,000 0.24% 1,279
2015 6,975,000 - 6,975,000 0.28% 1,462
2014 7,885,000 - 7,885,000 0.31% 1,708
2013 8,775,000 - 8,775,000 0.35% 1,923
(1) Population data can be found in the Schedule of Demographic and Economic Statistics -Table 13.
(2) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property- Table 7.
(3) Includes all long-term general obligation bonded debt, revenue bonds, and Literary Fund Loans;
excludes capital leases, and compensated absences.
171
County of Bath,Virginia Table 13
Demographic and Economic Statistics
Last Ten Fiscal Years
Per Capita
Fiscal Personal Personal Median School Unemploy-
Year Population Income Income Age Enrollment ment Rate
2022 4,276 $ 308,543,332 $ 72,157 49 499 2.60%
2021 4,341 304,087,050 70,050 48 584 5.00%
2020 4,318 277,285,000 66,864 48 530 14.10%
2019 4,429 264,509,000 61,628 48 550 2.40%
2018 4,556 252,991,000 58,876 49 552 2.60%
2017 4,652 239,666,388 51,519 49 554 2.90%
2016 4,727 239,989,790 50,770 49 541 3.30%
2015 4,771 226,116,774 47,394 46 584 4.00%
2014 4,616 205,338,144 44,484 48 622 4.10%
2013 4,563 222,377,805 48,735 48 597 4.90%
Source: Weldon Cooper Center; Bureau of Economic Analysis, Regional Economic Accounts; VA Department of
Education, Division of Technology, Reports; U.S. Census Bureau; U.S. Bureau of Economic Analysis; U.S. Bureau
of Labor Statistics
172
COUNTY OF BATH,VIRGINIA Table 14
Principal Employers
Current Year and Nine Years Ago
Fiscal Year 2022 Fiscal Year 2013
%of Total %of Total
(1) County (1) County
Employer Employees Rank Employment Employees Rank Employment
The Omni Homestead 475 1 21.95% 820 1 39.30%
Bath County Community Hospital 200 2 9.24% 125 3 5.78%
Bath County Public Schools 140 3 6.47% 146 2 6.75%
Kissito Helathcare(Springs Nursing Center) 84 4 3.88% 65 5 3.01%
County of Bath 60 5 2.77% 75 4 3.47%
Speyside Bourbon Stave Mill 55 6 2.54%
Dominion Virginia Power 50 7 2.31% 50 6 2.31%
Barc Electrical Co-op 50 8 2.31% 45 7 2.08%
VA Department of Conservation 35 9 1.62% 35 9 1.62%
Owners Club 35 10 1.62%
Phantom Eagle LLC 35 8 1.62°/o
F.Clayton Plecker&Sons 30 10 1.39%
Totals 1,184 54.71% 1,426 54.57%
Total estimated jobs in County
2,164 2,613
(1)Estimated numbers are provided. Ranges of employees were available for employers. The mid point of the range was used for this table.
Sources:
VA Employment Commission,www.vec.virginia.gov(50 Largest Employers in Bath County for fourth quarter 2021 -latest available-and 2013).
VA Workforce Connection, 12/12/2022, www.vawc.virginia.gov (Virginia Workforce Connection - Labor Market Services - Area Profile for Bath
County: Labor Force,Employment and Unemployment Statistics);total employment for November 2022 and 2013 annual.
173
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County of Bath,Virginia
Full-time Equivalent County Government Employees by Function
Last Ten Fiscal Years
Fiscal Year
Function 2013 2014 2015 2016 2017
General government 9 9 9 9 9
Judicial administration 5 5 5 5 5
Public safety
Sheriff's department 19 19 19 19 19
911 Administrator 0 0 0 0 0
Building inspections 1 1 1 1 1
Animal control 2 2 2 2 2
Public works
General maintenance 2 2 2 2 2
Landfill 0 0 0 0 0
Health and welfare
Department of social services 7 7 7 7 7
Culture and recreation
Parks and recreation 3 3 3 3 3
Library 1 1 1 1 0
Community development
Tourism 2 2 2 1 1
Planning 2 2 2 2 2
Totals 53 53 53 52 51
Source: Individual county departments; excludes part-time and Board of Supervisors members.
174
Table 15
Fiscal Year
2018 2019 2020 2021 2022
9 9 9 9 9
5 5 5 5 5
19 22 22 22 24
0 0 0 0 0
1 1 1 1 1
2 2 1 2 2
2 2 2 2 2
0 0 0 0 0
7 8 8 8 8
3 4 4 4 4
0 0 0 0 0
1 0 0 0 0
2 2 2 2 2
51 55 54 55 57
175
County of Bath,Virginia
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function 2013 2014 2015 2016 2017
Public safety
Sheriffs department:
Physical arrests 167 146 134 93 207
Traffic violations 52 137 157 159 182
Civil papers 1,215 1,056 1,149 1,020 993
Building inspections:
Inspections made 239 345 336 337 395
Permitsissued 112 103 116 109 133
Animal control:
Number of calls answered 620 643 520 499 413
Public works
Landfill:
Refuse collected (tons/day) (1) 20 20 14 15 17
Recycling (tons/day) (1) 5 5 7 7 7
Health and welfare
Department of Social Services:
Caseload 884 900 900 1,176 4,295
Culture and recreation
Parks and recreation:
After-school program participants n/a n/a n/a n/a n/a
Youth sports participants 450 311 355 466 492
Component Unit-School Board
Education:
School age population (2) 604 590 570 584 562
Number of teachers (2) 67 67 68 66 66
Local expenditures per pupil (2) $16,129 $12,807 $14,450 $14,522 $16,424
Source: Individual County departments, SuperintendenYs
Annual Report,Virginia Department of Education, Solid
Waste information and Assessment Forms, DEQ Annual
Recycling Reports.
(1) Daily waste and recycling are based on 5.5 days/week of transfer operation (286 days).
(2) County of Bath Annual School Report
176
Table 16
Fiscal Year
2018 2019 2020 2021 2022
111 103 181 181 113
47 45 56 28 106
955 1,013 1,041 935 878
370 303 282 287 320
119 120 127 123 136
387 200 164 167 355
14 15 18 13 14
6 6 1 1 1
6,183 6,121 7,979 6,702 12,019
n/a n/a n/a n/a n/a
420 445 400 144 370
522 515 495 520 477
64 65 62 60 58
$20,790 $15,407 $16,551 $18,124 $15,825
177
County of Bath, Virginia
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
Function 2013 2014 2015 2016 2017
General government
Administration buildings 5 5 5 5 5
Vehicles 1 1 1 2 2
Public safety
Sheriff's department:
Patrol units 13 13 13 13 13
Animal control:
Vehicles 1 1 1 1 1
Public works
Vehicles 1 1 1 1 1
Sites 1 1 1 1 1
Culture and recreation
Parks and recreation:
Vehicles 3 3 2 2 2
Swimming pools 2 2 2 2 2
Health and welfare
Buildings 1 1 1 1 1
Community development
Planning:
Vehicles 1 1 1 1 1
Component Unit- School Board
Education:
Schools 4 4 4 4 4
School buses 19 19 18 16 18
Source: Individual County departments/excludes part-time and Board of Supervisors members.
178
Table 17
Fiscal Year
2018 2019 2020 2021 2022
5 5 5 5 5
2 2 2 2 2
13 16 17 17 17
1 1 1 1 1
1 1 - - -
1 1 1 1 1
2 2 2 2 2
2 2 2 2 2
1 1 1 1 1
1 1 1 1 1
4 4 4 4 4
19 19 16 16 16
179
COMPLIANCE SECTION
ROBINSON, FARMER, COX ASSOCIATES, PLLC
CPAs I CONSULTANTS Cerrified PublicAccountants
INDEPENDENT AUDITORS' 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 BOARD OF SUPERVISORS
COUNTY OF BATH, VIRGINIA
We have audited, in accordance with the 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 discretely presented component units, each major
fund and the aggregate remaining fund information of County of Bath, Virginia, as of and for the year
ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the
County of Bath, Virginia's basic financial statements, and have issued our report thereon dated
December 31, 2022. Our report includes a reference to other auditors who audited the financial
statements of the School Activity Funds, as described in our report on the County of Bath, Virginia's
financial statements. This report does not include the results of the other auditors' testing of internal
control over financial reporting or compliance and other matters that are reported on separately by those
auditors.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered County of Bath, Virginia's
internal control over financial reporting (internal control) as a basis for designing 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 County of Bath,
Virginia's internal control. Accordingly, we do not express an opinion on the effectiveness of County of
Bath, Virginia'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. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
180
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether County of Bath, Virginia's financial statements
are free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions
was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
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.
�obinsan� �Yn�,►-, Cex �ssQ�c�'cs
Staunton, Virginia
December 31, 2022
181
ROBINSON, FARMER, COX ASSOCIATES, PLLC
CPAs I CONSULTANTS Certified PublicAccountants
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
TO THE HONORABLE MEMBERS
OF THE BOARD OF SUPERVISORS
COUNTY OF BATH, VIRGINIA
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited County of Bath, Virginia's compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on each of County of Bath, Virginia's major federal programs for the year ended June 30, 2022.
County of Bath, Virginia's major federal programs are identified in the summary of auditors' results
section of the accompanying schedule of findings and questioned costs.
In our opinion, County of Bath, Virginia complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of County of Bath, Virginia and to meet our other ethical
responsibilities, in accordance with 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 opinion on
compliance for each major federal program. Our audit does not provide a legal determination of County
of Bath, Virginia's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to County of
Bath, Virginia's federal programs.
182
Auditors'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 County of Bath, Virginia'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 County of Bath, Virginia's compliance with
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 risks 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 County of Bath, Virginia's compliance with the
compliance requirements referred to above and performing such other procedures as we
considered necessary in the circumstances.
• Obtain an understanding of County of Bath, Virginia'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 County of Bath, Virginia'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.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
183
Report on Internal Control over Compliance (Continued)
Our consideration of internal control over compliance was for the limited purpose described in the
Auditors' 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. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
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Staunton, Virginia
December 31, 2022
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County of Bath,Virginia
Schedule of Expenditures of Federal Awards
Year Ended June 30,2022
Federal Pass-through
Federal Grantor/State Pass-Through Grantor/ AL/CFDA entity identifying Federal
Program or Cluster Title Number number Expenditures
Department of Health and Human Services:
Pass Through Payments:
Department of Social Services:
Guardianship Assistance 93.090 Not Available $ 66
Title IV-E Prevention Services 93.472 Not Available 885
MaryLee Allen Promoting Safe and Stable Families Program 93.556 Not Available 1,585
Temporary Assistance for Needy Families 93.558 Not Available 60,742
Refugee and Entrant Assistance State/Replacement
Designee Administered Programs 93.566 Not Available 300
Low-Income Home Energy Assistance 93.568 Not Available 11,176
Child Care and Development Cluster:
Child Care Mandatory and Matching Funds of the Child Care
and Development Fund 93.596 Not Available 13,829
Stephanie Tubbs Jones Child Welfare Services Program 93.645 Not Available 147
Foster Care-Title IV-E 93.658 Not Available 31,825
Adoption Assistance 93.659 Not Available 37,743
Social Services Block Grant 93.667 Not Available 51,315
John H.Chafee Foster Care Program for Successful
Transition to Adulthood 93.674 Not Available 574
Children's Health Insurance Program 93.767 Not Available 649
Medicaid Cluster:
Medical Assistance Program 93.778 Not Available 68,320
Total Department of Health and Human Services $ 279,156
Department of Agriculture:
Pass Through Payments:
Child Nutrition Cluster:
Virginia Department of Agriculture and Consumer Services:
Food Distribution-School Nutrition Program 10.555 Not Available $ 25,496
Virginia Department of Education:
National School Lunch Program 10.555 202121H17034 1;
202121N11994 1;
202221N11994 1;
202221 N89034 1;
202222N11994 1 282,105
Subtotal AL 10.555 $ 307,601
School Breakfast Program 10.553 202121N11994 1;
202221N11994 1;
202222N119941 $ 88,757
Child Nutrition Cluster Total $ 396,358
Virginia Department of Education:
COVID-19 Pandemic EBT Administrative Costs 10.649 202121S900941 $ 614
Forest Service Schools and Roads Cluster�
Schools and Roads-Grants to States 10.665 APE438410000 64,001
Department of Social Services:
SNAP Cluster:
State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program 10.561 Not Available 128,179
Total Department of Agriculture $ 589,152
Department of Treasury
Pass Through Payments:
Virginia Department of Criminal Justice Services
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 0000120304 $ 22,607
Total Department of Treasury $ 22,607
Department of Homeland Security:
Pass Through Payments:
Department of Emergency Services:
COVID-19 Disaster Grants-Public
Assistance(Presidentially Declared Disasters) 97.036 4512 DRVAP00000001 $ 3,299
Total Department of Homeland Security $ 3,299
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County of Bath,Virginia
Schedule of Expenditures of Federal Awards(Continued)
Year Ended June 30,2022
Federal Pass-through
Federal Grantor/State Pass-Through Grantor/ CFDA entity identifying Federal
Program or Cluster Title Number number Expenditures
Department of Education:
Pass Through Payments:
Virginia Department of Education:
Special Education Cluster:
Special Education-Grants to States 84.027 H027A210107 $ 138,941
Special Education-Preschool Grants 84.173 H173A210112 4,070
Total Special Education Cluster $ 143,011
Title I Grants to Local Educational Agencies 84.010 S010A210046 58,380
Higher Education Institutional Aid 84.031 Not available 1,165
Career and Technical Education-Basic Grants to States 84.048 V048A210046 7,495
Supporting Effective Instruction State Grants 84.367 S367A180044;
S367A190044 20,018
Rural Education 84.358 Not available 55,810
S424A190048;
S424A200048;
Student Support and Academic Enrichment Program 84.424 S424A210048 14,821
COVID-19-Education Stabilization Fund-Governor's
Emergency Education Relief Fund(GEER) 84.425C S425C200042 20,102
COVID-19-Education Stabilization Fund-Elementary and
Secondary School Emergency Relief(ESSER)Fund 84.425D S425D200008 72,839
COVID-19-Education Stabilization Fund-Elementary and
Secondary School Emergency Relief(ESSER)Fund 84.425D S425D210008 36,240
Subtotal COVID-19-Education Stabilization Fund-Elementary
and Secondary School Emergency Relief(ESSER)Fund 129,181
Total Department of Education $ 429,881
Total Expenditures of Federal Awards $ 1,324,095
Notes to Schedule of Expenditures of Federal Awards
NOTE A-BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards(the Schedule)includes the federal award activity of the County of Bath,
Virginia under programs of the federal government for the year ended June 30,2022. The information in this Schedule is presented in
accordance with the requirements of the 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). Because the Schedule presents only a
selected portion of the operations of the County of Bath,Virginia,it is not intended to and does not present the financial position,changes
in net position,or cash flows of the County of Bath,Virginia.
NOTE B-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1)Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following
the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
(2)The County of Bath,Virginia has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
(3)Pass-through entity identifying numbers are presented where available.
NOTE C-FOOD DISTRIBUTION
Nonmonetary assistance is reported in the schedule at the fair value of the commodities received and disbursed.
NOTE D-RELATIONSHIP TO FINANCIAL STATEMENTS
Federal expenditures,revenues,and capital contributions are reported in the County's basic financial statements as follows:
Intergovernmental federal revenues per the basic financial statements:
Primary government:
Governmental funds $ 798,446
Less payments in lieu of tax under CFDA 15.226 not included above (365,205)
Total primary government $ 433,241
Discretely presented component unit-School Board:
School operating fund $ 628,382
School cafeteria fund 396,972
Less payments in lieu of tax under CFDA 15.226 not included above (134,500)
Total discretely presented component unit-School Board $ 890,854
Total federal expenditures per basic financial statements $ 1,324,095
Total federal expenditures per the Schedule of Expenditures of Federal awards $ 1,324,095
NOTE E-SUBRECIPIENTS
No awards were passed through to subrecipients.
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County of Bath, Virginia
Schedule of Findings and Questioned Costs
Year Ended June 30, 2022
Section I-Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: unmodified
Internal control over financial reporting:
- Material weakness(es) identified? yes x no
- Significant deficiency(ies) identified? yes x none reported
Noncompliance material to financial statements noted? yes x no
Federal Awards
Internal control over major programs:
- Material weakness(es) identified? yes x no
- Significant deficiency(ies) identified? yes x none reported
Type of auditors' report issued on compliance for major programs: unmodified
Any audit findings disclosed that are required to be reported
in accordance with section 2 CFR section 200.516(a)? yes x no
Identification of major programs:
CFDA
Numbers Name of Federal Program or Cluster
Child Nutrition Cluster:
10.553 ............... School Breakfast Program
10.555 ............... National School Lunch Program
10.555 ��������������� Food Distribution
Dollar threshold used to distinguish between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? x yes no
Section II-Financial Statement Findings
None
Section III-Federal Award Findings and Questioned Costs
None
Section IV-Summary of Prior Year Findings
There were no prior year findings.
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