---
type: document
title: 2010-Audit
file: ../2010-Audit.pdf
tags:
  - Russell_County
  - Audit_and_Budget_Information
  - '2010'
docDate: '2010'
contentType: application/pdf
contentLength: 2074323
sha256sum: 28f39a05632990c49f0a114ee342670a09d503d4158d627c542dbfe6c2aa7c36
sha1sum: 38120c30f4ef3c5eb24985046615cda1414375d0
---

COUNTY OF RUSSELL, VIRGINIA 

ANNUAL FINANCIAL REPORT 

FISCAL YEAR ENDED JUNE 30, 201 0 

COUNTY OF RUSSELL, VIRGINIA
ANNUAL FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30, 2010





INTRODUCTORY SECTION 

COUNTY OF RUSSELL, VIRGINIA 
ANNUAL FINANCIAL REPORT 

FISCAL YEAR ENDED JUNE 30, 2010 

TABLE OF CONTENTS 

Page 
List of Elected and Appointed Officials................................................................................................. 1 

FINANCIAL SECTION 

Independent Auditors' Report .. . ... . ... . .. . .. . . .. . .. . ... .. . .. . .. . .. .. . .. .. . .. .. . .. . .. . ... . .. . ... . ... . . .. . .... .. . .. . ... . .. . .. ... . .. . .. . .. .. . 2·3 

Exhibit Page 
Basic Financial Statements: 

Government-wide Financial Statements: 
Statement of Net Assets ................................................................................................................. . 1 4 
Statement of Activities ..................................................................................................................... . 2 5 

Fund Financial Statements: 
Balance Sheet- Governmental Funds ......................................................................................... .. 3 6 
Reconciliation of the Balance Sheet of Governmental Funds to the Statement 

of Net Assets ............................................................................................................................. .. 4 7 
Statement of Revenues, Expenditures and Changes in Fund Balances-

Governmental Funds .................................................................................................................. . 5 8 
Reconciliation of the Statement of Revenues, Expenditures, and Changes 

in Fund Balances of Governmental Funds to the Statement of Activities .................................. . 6 9 
Statement of Net Assets - Proprietary Funds ................................................................................. . 7 10 
Statement of Revenues, Expenses, and Changes in Fund Net Assets-

Proprietary Funds .................................................................................................................... . 8 11 
Statement of Cash Flows - Proprietary Funds ............................................................................... .. 9 12 
Statement of Fiduciary Net Assets- Fiduciary Funds ................................................................... .. 10 13 

Notes to Financial Statements ........................................................................................................... . 14·51 

Required Supplementary Information: 

Schedule of Revenues, Expenditures and Changes in Fund Balances-
Budget and Actual· General Fund ........................................................................................................ 11 52 
Budget and Actual- Special Revenue Fund -Industrial Development............................................ 12 53 
Budget and Actual- Special Revenue Fund- Coal Road............................................................... 13 54 
Budget and Actual· Special Revenue Fund- Rental Assistance................................................... 14 55 

Schedule of OPES and Pension Funding Progress.............................................................................. 15 56 

COUNTY OF RUSSELL, VIRGINIA
ANNUAL FINANCIAL REPORT
FiscaL YEAR ENDED JUNE 30, 2010

TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
List of Elected and Appointed Official 1
FINANCIAL SECTION
Independent Auditors' Report .... 23
Exhibit Page
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Assets 1 4
Statement of Activities 2 5
Fund Financial Statements:
Balance Sheet — Governmental Funds ..... 3 6
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Assets .. 4 7
Statement of Revenues, Expenditures and Changes in Fund Balances —
Governmental Funds 5 8
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 6 9
Statement of Net Assets ~ Proprietary Funds... 7 10
Statement of Revenues, Expenses, and Changes in Fund Net Assets -

Proprietary Funds 8
Statement of Cash Flows - Proprietary Funds. 9 12
Statement of Fiduciary Net Assets - Fiduciary Funds. 1 18

Notes to Financial Statements. 14-51
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances ~
‘Budget and Actual - General Fund... 52
Budget and Actual - Special Revenue Fund — Industrial Development. 12 53
Budget and Actual - Special Revenue Fund ~ Coal Road 13 84
Budget and Actual - Special Revenue Fund — Rental Assistance 14 85
Schedule of OPEB and Pension Funding Progress... 15 56





COUNTY OF RUSSELL, VIRGINIA 

ANNUAL FINANCIAL REPORT 

FISCAL YEAR ENDED JUNE 30, 2010 

TABLE OF CONTENTS (CONTINUED) 

Other Supplementary Information Section: 

Supplementary Financial Statements 

Discretely Presented Component Unit- School Board: 

Exhibit Page 

Balance Sheet................................................................................................................................. 16 57 
Statement of Revenues, Expenditures, and Changes in Fund Balances --

Governmental Funds................................................................................................................... 17 58 
Schedule of Revenues, Expenditures, and Changes in Fund Balances-

Budget and Actual........................................................................................................................ 18 59 

Schedule Page 
Supporting Schedules: 

Schedule of Revenues- Budget and Actual - Governmental Funds ................................................ . 1 60-65 
Schedule of Expenditures- Budget and Actual - Governmental Funds .......................................... .. 2 66-69 

Other Statistical Information: 

Government-wide Information: 
Government-Wide Expenses by Function....................................................................................... 1 70 
Government-Wide Revenues.......................................................................................................... 2 71 

Fund Information: 
General Governmental Expenditures by Function........................................................................... 3 72 
General Governmental Revenues by Source.................................................................................. 4 73 
Property Tax Levies and Collections............................................................................................... 5 74 
Assessed Value of Taxable Property............................................................................................... 6 75 
Property Tax Rates......................................................................................................................... 7 76 
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded 

Debt Per Capita........................................................................................................................... 8 77 
Ratio of Annual Debt Service Expenditures for General Bonded Debt to 

Total General Governmental Expenditures................................................................................. 9 78 

COUNTY OF RUSSELL, VIRGINIA
ANNUAL FINANCIAL REPORT
FiscaL YEAR ENDED JUNE 30, 2010

‘TABLE OF CONTENTS (CONTINUED)

Other Supplementary Information Section:

Exhibit
Supplementary Financial Statements
Discretely Presented Component Unit - School Board:
Balance Sheet 16
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds. 17
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual... 18

Schedule
Supporting Schedules:

Schedule of Revenues — Budget and Actual - Governmental Funds 1
Schedule of Expenditures - Budget and Actual - Governmental Funds 2
Other Statistical Information:
Table
Government-wide Information:
Government-Wide Expenses by Function 1
Government-Wide Revenues... 2

Fund Information:
General Governmental Expenditures by Function
General Governmental Revenues by Sourc
Property Tax Levies and Collections
Assessed Value of Taxable Property

Property Tax Rates ...
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded

Debt Per Capita... 8
Ratio of Annual Debt Service Expenditures for General Bonded Debt to

Total General Governmental Expenditures . 9

Page

60-65
66-69

Page

70
71

72
73
74
i)
76

7
78




COMPLIANCE SECTION 

Compliance: 

COUNTY OF RUSSELL, VIRGINIA 

ANNUAL FINANCIAL REPORT 
FISCAL YEAR ENDED JUNE 30, 2010 

TABLE OF CONTENTS (CONTINUED) 

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....................................................................... 79-80 

Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major 
Program and on Internal Control over Compliance in Accordance with OMB Circular A-133............. 81-82 

Schedule of Expenditures of Federal Awards..................................................................................... 83-85 
Schedule of Findings, Responses, and Questioned Costs................................................................. 86-88 

COUNTY OF RUSSELL, VIRGINIA
ANNUAL FINANCIAL REPORT
FiscaL YEAR ENDED JUNE 30, 2010

TABLE OF CONTENTS (CONTINUED)

COMPLIANCE SECTION
Page
Compliance:
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordanee with Government Auaiting Standards... 79-80
Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major
Program and on Internal Control over Compliance in Accordanes with OMB Circular A-133. 81-82
Schedule of Expenditures of Federal Awards... 83-85
Schedule of Findings, Responses, and Questioned Costs.. 86-88





INTRODUCTORY SECTION 

INTRODUCTORY SECTION




Danny Brown, Vice Chair 
Bob Keene 
Billy Wayne Wampler 

Charlie Collins, Vice Chair 
Fayrene Plaster 
Tom Griffith 

Authur Lawson, Vice Chair 

COUNTY OF RUSSELL, VIRGINIA 

BOARD OF SUPERVISORS 

Mike Puckett, Chair 

COUNTY SCHOOL BOARD 

Carl Jackson, Chair 

SOCIAL SERVICES BOARD 

Harry Ferguson, Jr., Chair 

Raymond Edward Harrison, Jr., Secretary 

OTHER OFFICIALS 

Jon Bowerbank 
Earnest (Shy) Kennedy 

Bob Hillman 
Linda Cross 

Bill W. Wampler 

Clerk of the Circuit Court ..................................................................................... Ann S. McReynolds 
Commonwealth's Attorney ............................................................................................... Brian Patton 
Commissioner of the Revenue .............................................................................. Randy N. Williams 
Treasurer ............................................................................................................... Patrick Thompson 
Sheriff ................................................................................................................................. Steve Dye 
Acting Superintendent of Schools ................................................................................... Mike Puckett 
Director of Social Services .......................................................................... Raymond E. Harrison, Jr. 
County Administrator ...................................................................................................... Jim Gillespie 
County Attorney ............................................................................................................. Dennis Jones 

-1-

CouNTY OF RUSSELL, VIRGINIA

BOARD OF SUPERVISORS
Mike Puckett, Chair
Danny Brown, Vice Chair Jon Bowerbank
Bob Keene Eamest (Shy) Kennedy
Billy Wayne Wampler
COUNTY SCHOOL BOARD
Carl Jackson, Chair
Charlie Collins, Vice Chair Bob Hillman
Fayrene Plaster Linda Cross
Tom Griffith
SOCIAL SERVICES BOARD
Harry Ferguson, Jr., Chair
‘Authur Lawson, Vice Chair Bill W. Wampler

Raymond Edward Harrison, Jr,, Secretary

OTHER OFFICIALS

Clerk of the Circuit Court
Commonwealth's Attorney.
Commissioner of the Revenue ..
Treasurer
Sheriff..
Acting Superintendent of Schools.
Director of Social Services.....
County Administrator.......

County Attorney...

Ann $, McReynolds
seeeneee Ban Patton

Randy N. Williams.
Pattick Thompson
Steve Dye
Mike Puckett

"Raymond E. Harrison, Jr.

...im Gillespie
seneeeeDe@nnis Jones:




FINANCIAL SECTION 

FINANCIAL SECTION




ROBINSON, JF ARMJER, COX ASSOCIATES 
CER17F!ED PUBLIC ACCOUNTANT> A PROFESSIONAL LIM/Tl:D L!ABILTTY COMPANY 

Independent Auditors' Report 

TO THE HONORABLE MEMBERS OF THE BOARD OF SUPERVISORS 
COUNTY OF RUSSELL, VIRGINIA 
LEBANON, VIRGINIA 

We have audited the accompanying financial statements of the governmental activities, the business-type activities, 
the discretely presented component units, the major funds, and the aggregate remaining fund information of the 
County of Russell, Virginia, as of and for the year ended June 30, 2010, which collectively comprise the County's 
basic financial statements as listed in the table of contents. These financial statements are the responsibility of the 
County of Russell, Virginia's management. Our responsibility is to express opinions on these financial statements 
based on our audit. We did not audit the financial statements of the Russell County Public Service Authority, which 
represents 24.3% and 6.6% of the total net assets and program revenues, respectively, of the aggregate discretely 
presented component units. Those financial statements were audited by other auditors whose report has been 
furnished to us, and our opinion on the basic financial statements insofar as they relate to the amount included for 
the Russell County Public Service Authority in the aggregate discretely presented component unit, are based solely 
on the report of the other auditors. 

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 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. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 
An audit also includes assessing the accounting principles used and the significant estimates made by 
management, as well as evaluating the overall financial statement presentation. We believe that our audit and the 
reports of other auditors provide a reasonable basis for our opinions. 

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 respective financial position of the governmental activities, , the business­
type activities the discretely presented component units, the major funds, and the aggregate remaining fund 
information of the County of Russell, Virginia as of June 30, 2010, and the respective changes in financial position 
and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally 
accepted in the United States of America. 

In accordance with Government Auditing Standards, we have also issued our report dated January 26, 2011, on our 
consideration of the County of Russell, 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 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 internal control over financial 
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government 
Auditing Standards and should be considered in assessing the results of our audit. 

-2-

ROBINSON, FARMER, COX ASSOCIATES

(CERTIFIED PUBLIC ACCOUNTANTS ‘A PROFESSIONAL LIMITED LIABILITY COMPANY

Independent Auditors’ Report

TO THE HONORABLE MEMBERS OF THE BOARD OF SUPERVISORS
COUNTY OF RUSSELL, VIRGINIA
LEBANON, VIRGINIA

We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the discretely presented component units, the major funds, and the aggregate remaining fund information of the
County of Russell, Virginia, as of and for the year ended June 30, 2010, which collectively comprise the County's
basic financial statements as listed in the table of contents. These financial statements are the responsibility of the
County of Russell, Virginia's management. Our responsibility is to express opinions on these financial statements
based on our audit. We did not audit the financial statements of the Russell County Public Service Authority, which
teptesents 24.3% and 6.6% of the total net assets and program revenues, respectively, of the aggregate discretely
presented component units. Those financial statements were audited by other auditors whose report has been
furnished to us, and our opinion on the basic financial statements insofar as they relate to the amount included for
the Russell County Public Service Authority in the aggregate discretely presented component unit, are based solely
‘on the report of the other auditors.

‘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 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. Those standards require that we plan and perform the audit to
Obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
‘An audit also includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit and the
reports of other auditors provide a reasonable basis for our opinions.

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 respective financial position of the governmental activities, , the business-
type activities the discretely presented component units, the major funds, and the aggregate remaining fund
information of the County of Russell, Virginia as of June 30, 2010, and the respective changes in financial position
and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America,

In accordance with Goverment Auditing Standards, we have also issued our report dated January 26, 2011, on our
consideration of the County of Russell, 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 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 internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.




The County has elected to omit Management's Discussion and Analysis which is not a required part of the basic 
financial statements but is supplementary information required by the accounting principles generally accepted in 
the United States of America. 

The budgetary comparison information and the schedules of OPES and pension funding progress as listed in the 
table of contents are not a required part of the basic financial statements but are supplementary information 
required by accounting principles generally accepted in the United States of America. We have applied certain 
limited procedures, which consisted principally of inquiries of management regarding the methods of measurement 
and presentation of the supplementary information. However, we did not audit the information and express no 
opinion on it. 

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise 
the County of Russell, Virginia's basic financial statements. The introductory section and the other supplementary 
information section are presented for purposes of additional analysis and are not a required part of the basic 
financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of 
additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, 
Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements 
of the County of Russell, Virginia. The schedule of expenditures of federal awards 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. The introductory section and other 
supplementary information section have not been subjected to the auditing procedures applied in the audit of the 
basic financial statements and, accordingly, we express no opinion on them. 

if~tnz., ~~ dt ~oa·~ 
Christiansburg, Virginia 
January 26, 2011 

-3-

The County has elected to omit Management's Discussion and Analysis which is not a required part of the basic
financial statements but is supplementary information required by the accounting principles generally accepted in
the United States of America.

The budgetary comparison information and the schedules of OPEB and pension funding progress as listed in the
table of contents are not a required part of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit the information and express no
opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
‘the County of Russell, Virginia's basic financial statements. The introductory section and the other supplementary
information section are presented for purposes of additional analysis and are not a required part of the basic
financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements
of the County of Russell, Virginia. The schedule of expenditures of federal awards 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. The introductory section and other
supplementary information section have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we express no opinion on them.

Holeinoen, Seeman, py Chsocicttes-
Christiansburg, Virginia
January 26, 2011




Basic Financial Statements 

Basic Financial Statements





Exhibit! 
County of Russell, Virginia 
Statement of Net Assets 

June 30,2010 

Com anent Units 
Prima~ Government Industrial Russell County Castlewood 

Governmental Business·type Development Public Service Water and Sewage 
Activities Activities Total School Board Authoritv Authority Authority 

ASSETS 
Cash and cash equivalents 8,145,621 49,575 $ 8,195,196 1,879,511 $ 1,119,028 $ 1,569,766 $ 134,066 
Investments in custody of others 1,730,417 1,730,417 
Receivables (net of allowance for uncollectibles)· 

Taxes receivable 6,915,930 6,915,930 
Accounts receivable 453,351 6,331 459,682 82,221 9,932 739,806 223,373 
Notes receivable 4,344 4,344 

Due from pnmary government 425,000 
Due from component un1t 365,000 365,000 
Due from other governmental umts 1,296,930 1,296,930 1,681,471 
Inventories 20,473 
Lease purchase receivable 578,160 
Prepaid expenses 19,114 
Othel assets 

Bond issuance costs 34,518 
Restricted assets: 

Temporarity restricted: 
Cash and cash equivalents 2,286,757 2,286,757 426,439 117,317 
Investments {in custody of others) 
Intergovernmental receivable 

Noncurrent assets· 
Lease purchase receivable- net ol current portion 981,372 

Capital assets (net of accumulated depreciation) 
Land 1,541,333 1,541,333 4,643,707 1,439,397 106,332 102,830 
Bu1ldings and improvements 15,412,448 15,412,448 11,320,900 6,310,110 2,440,501 
Improvements other than buildings 
Machinery and equipment 1,527,586 1,527,586 1,753,256 497,577 
Infrastructure 12,635,185 
Utility plant in service 3,647,661 3,647,661 8,653,513 
Construction in prO{lress 2,445,645 2,445,645 90,571 1,176,639 571,611 
Less: Accumulated Deprecia~on 2,752,659 

Total assets $ 42,125,362 3,703,567 45,828,929 21,451,637 $ 12,998,172 15,331,015 9,250,213 

LIABILITIES 
Accounts payable 1,845,561 27,050 1,872,611 618,225 $ 43,838 387,627 55,694 
Accrued liabilities 980,529 129,842 8,622 
Customer deposits 10,738 43,408 
Accrued interest payable 323,118 1,858 324,976 126,614 23,181 9,216 
Due to primary government 200,000 165,000 
Due to component unit 425,000 425,000 
Unearned revenue 4,313,714 4,313,714 
Long-term liabiht1es: 

Due within one year 2,013,436 17,867 2,031,303 2,972,910 3,870,603 233,235 
Due in more than one year 20,941,961 751,554 21,693,515 1,064,578 10,781,137 3,680,992 3,928,791 

Total liabilities 29,862,790 $ 798,329 30,661,"119 2,663,332 $ 14,124,499 $ 8,102,983 4,443,966 

NET ASSETS 
Invested in capital assets, net o1 related debt 6,670,389 $ 2,878,240 $ 9,548,629 17,808,434 $ 3,889,731 $ 5,449,375 $ 4,604,201 
Restricted for: 

Coal Road 1,514,134 1,514,134 
School Construction 909,791 909,791 
Debt service and bond covenants 426,439 1,113,658 117,317 

Unrestricted (dencit) 
Total net assets 

The notes to the financial statements are an integral part of this statement. 

-4-

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&, 
' 

Functions/Programs 

PRIMARY GOVERNMENT: 
Govemmenlal ac11V111es 

Ger>eral g;JVemmenl adm1n1s1rat10fl 
Judrc.al adm,n1s1ra11on 
PUbliC safety 
Public works 
HeaHh and weilare 
Educat1011 
Parks, recrealion, afld cultural 
Community development 
Interest on tong.1erm debt 

T alai governmental actJVihes 

Bus1ness·lype ae1111111es 
SeMce Aulhorrty 

T alai pnmary govemmenl 

COMPONENT UNITS: 
School Board 
lnduslrial Develq)menl Aulhonty 
Russell County PubliC Sef\llce Aulhorily 
Casllewood Water and Sewer 
Total compor.enl un~s 

Expenses 

1.828.631 s 
2,219,866 
4,234,145 
5,549,934 
6.070,09t 
5.897,486 

41.560.110 s 
1,757.836 
1,643,245 
1,35t.709 

46.3t2.0CKJ s 

Generallllvenues 
General property taxes 
Other local taxes 

Local sates arid use taxes 
Coal severence taxes 
Coal road taxes 
Consumers' utility taxes 
Molor veh1de taxes 
Other local taxes 

Charges for 
Services 

727 s 
6,998 

85.827 
195.440 
28.897 

10.313 

717,272 s 
318.t58 

1.()48,857 
t.017,454 
3.10t,74t s 

Program Ael'1!nues 

Operating 
Grants and 

Contributions 

312.752 
551.817 

t.633.396 
71.690 

4,573,749 

85.639 
244,034 

33,917,800 
284,793 

441,781 
34.644.374 s 

Unrestricted revenues I rom use of money and property 
Miscellaneous 
Paymenls from 1he Countyol Russell. Virgm.a 
Grants and contribulions 1101 restricled 10 spec~1c J)<ograms 
Gam (loss) on diSposal of cap1tal assets 
Transfers 
Total general revenues 

Change in net assets 
Net assets· beginning. as reslated 
Net assets · ending 

The notes to the linanc~al slatements are an inte{lral part ollh1s sta1ement 

County of Russell, Virginia 
Statement of Activities 

For the Year Ended June 30. 2010 

Net (Expense) Rel'1!nue and 
Changes in Net Assets 

capital 
Grants and 

Contributions 

1,534.705 

Govcrnmcnlal 
Ac1ivities 

Primary 
Government 

Business-type 
Activilies Total 

(1.515,152) s s (1,515.152) s 
(1,661,051) (1,661.051) 
(2,514.922) (2,514.922) 
(5,282,804) (5,282.804) 
(1,407,445) (1,467,445) 
(5.897.486) {5,897,486) 

(464,783) (454.783) 
(1,247.173) {t,247.t73) 

(728.202) (728.202) 
s (20.n9.018) s s {2Q,n9,018) 

s (369.392) s (369,392) s 
(20,779.018) s (369.392) s (21.148.410) s 

School Board 

(6.925,038) s 

Component 
Units 

Industrial 
Development 

Au1hority 

s 
{1,154,885) 

Russell Olunty 
Public Service 

Authority 

940,317 

1,534,705 (6,925,03!Jl._L_{1,t54.885l s 940,317 

13,004,381 

1,839,057 
1,606,851 
1,573,947 

593.616 
295,866 
214,470 
106,694 
173,322 

2,465,451 

154 

13.004.381 

1,839,057 
1,606,851 
1.573.947 

593,616 
295.866 
214,470 
106,848 
173,322 

2.465.451 

1,500 103.152 18,153 
230,840 326.354 

5.739,577 192.014 368,454 

Exhib~ 2 

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Wa1er and Sewerage 

Authority 

107,526 
107,526 

3,347 
222,214 

9.172 

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Exhibit 3 
County of Russell, Virginia 

Balance Sheet 
Governmental Funds 

June 30, 2010 

Industrial Coal Rental 
General Development Road Assistance Total 

ASSETS 
Cash and cash equivalents $ 4,619,377 $ 586,042 $ $ $ 5,205,419 
Investments in custody of others 1,730,417 1,730,417 
Receivables (net of allowance for uncottectibles): 

Taxes receivable 6,915,930 6,915,930 
Accounts receivable 278,235 169,008 447,243 
Notes receivable 4,344 4,344 

Due from other funds 321,487 1,260,000 1,581,487 
Due from component unit 365,000 365,000 
Due from other governmental units 1,296,930 1,296,930 
Restricted assets: 

Temporarily restricted: 
Cash and cash equivalents 909,791 1,376,966 2,286,757 
Total assets $ 16,441,511 $ 1,846,042 $ 1,545,974 $ $ 19,833,527 

LIABILITIES AND FUND BALANCES 
liabilities: 

Accounts payable $ 1,434,225 $ $ 28,935 $ $ 1.463,160 
Due to other funds 1,578,582 2,905 1,581,487 
Due to component unit 425,000 425,000 
Deferred revenue 6,765,542 6,765,542 

Total liabilities $ 10,203,349 $ $ 31,840 $ $ 10,235,189 

Fund balances: 
Reserved for: 

Coal Road $ $ $ 1,514,134 $ $ 1,514,134 
School Construction 909,791 909,791 

Unreserved: 
Designated, reported in: 
Special revenue funds 1,846,042 1,846,042 
General fund 814,129 814,129 

Undesignated, reported in: 
General fund 4,514,242 4,514,242 

Total fund balances $ 6,238,162 $ 1,846,042 $ 1,514,134 $ $ 9,598,338 
Total liabilities and fund balances $ 16,441,511 $ 1,846,042 $ 1,545,974 $ $ 19,833,527 

The notes to the financial statements are an integral part of this statement. 

-6-

County of Russell, Vigna

Exhibit 3

Balance Sheet
Governmental Funds
June 30,2010
Industrial Coal Roatal
Seneral Development Road Total
ASSETS
Cash and cash equivalents 8 aeiga77 § 538,082 9.205.419
Investments in custody of others 730417 1730417
Recenvables (neta allowance fr uncoboctbls):
Taxes receivable ea1s930 - 6918990
‘Accauns receivable 278,285 - 169,008
Notes receivable 434 : :
Due fom other funds sa1.te? 1,260,000 18487
Due fom component unit 386,000 - 386,000
‘Due from other governmental unis 1.238.830 1.296.950,
Rosticied essts
Temporary restcied
Cash and cash equivalents 909.701 - 1.376986 2.286751
Totalassets 3 Bats Tee T5A5,574 79833,527
LIABILITIES AND FUND BALANCES
Abies:
Accounts payable S 143205 $ 28595 1.483,160
Due fe ahr funds 1578,582 2908 11581,487
ue to component uit 425,000 - - 25,000
Deteed overue 6,765,542 . 6,765 542
Toda babies 3 10203,309 BELO 70.235, 188
Fund balances:
Resened lor
Coat Road 8 8 1514,134 151404
School Construction 00.701 : 09,791
Unresered
Designated, reported in
‘Speci revenue funds : 1.846 042 1946.042
General fund 814,129 - 814,123
Undesignted, ported in
General find 414.242 - - 451402
Total fund balances 3 6238,162_§ eo SKE 508 338
Totallaities and fund balances S__feaaistt_§ 1846007 155, 378 793833507

‘The notes tothe fnancll statements are an integral pat oft stalement




County of Russell, Virginia 
Reconciliation of the Balance Sheet of Governmental Funds 

To the Statement of Net Assets 
June 30, 2010 

Amounts reported for governmental activities in the statement of net assets are different because: 

Total fund balances per Exhibit 3- Balance Sheet- Governmental Funds 

Capital assets used in governmental activities are not financial resources and, therefore, 
are not reported in the funds. 

Other long-term assets are not available to pay for current-period expenditures and, 
therefore, are deferred in the funds. 

Internal service funds are used by management to charge the costs of certain activities, 
such as insurance and telecommunications, to individual funds. The assets and 
liabilities of the internal service funds are included in governmental activities in the 
statement of net assets. 

Long-term liabilities, including bonds payable, are not due and payable in the current 
period and, therefore, are not reported in the funds. 

Net assets of governmental activities 

The notes to the financial statements are an integral part of this statement. 

-7-

Exhibit 4 

$ 9,598,338 

20,927,012 

2,451,828 

2,563,909 

(23,278,515) 

$ 12,262,572 

County of Russell,
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Assets
June 30, 2010

Exhibit 4

‘Amounts reported for governmental activities inthe statement of net assets are diffrent because:
Total fund balances per Exhibit 3 - Batance Sheet - Governmental Funds

Capital assets used in governmental actives are not financial resources and, therefore,
are not reported in the funds,

Other long-term assets are not available to pay for current-period expenditures and,
therefore, are deferred in the funds,

Interal service funds are used by management to charge the costs of certain activities,
such as insurence and telecommunication, 1 individual nds, The assets and
labities of the internal service funds are included in governmental activites in the
statement of net assets

Long-term ilies, including bonds payable, ae not due and payable inthe current
Period and, therefor, are not reported in the funds.

Net assets of governmental activities

‘The notes tothe financial statements are an integral part of this statement

S 9,598,338

207.012

2,451,828

2,563,909

(23,278,518)

T2262 572,




Exhibit 5 
County of Russell, Virginia 

Statement of Revenues, Expenditures, and Changes in Fund Balances 
Governmental Funds 

For the Year Ended June 30,2010 

Industrial Coal Rental 
General DeveloQment Road Assistance Total 

REVENUES 
General property taxes $ 12,841,457 $ $ $ $ 12,841,457 
Other local taxes 4,549,880 1,573,947 6,123,807 
Permits, privilege fees, and regulatory licenses 45,877 45,877 
fines and forfeitures 1,049 1,049 
Revenue from the use of money and property 61,156 3,397 8,228 72,779 
Charges for services 281,276 281,276 
Miscellaneous 62,627 62,627 
Recovered costs 1,158,913 1,158,913 
Intergovernmental revenues: 

Commonwealth 7,457,973 37,617 7,495,590 
Federal 2,442,988 2,442,988 

Total revenues $ 28,903,176 $ 3,397 $ 1 ,582,173 $ 37,617 $ 30,526,363 

EXPENDITURES 
Current: 

General government administration $ 1 ,837,926 $ $ $ $ 1,837,926 
Judicial administration 2,213,724 2,213,724 
Public safety 4,100,378 4,100,376 
Public works 3,526,556 1,984,876 5,491,432 
Health and welfare 6,812,493 94,441 6,906,934 
Education 4,829,713 4,829,713 
Parks, recreation, and cultural 497,417 497,417 
Community development 1,557,445 1,557,445 
Nondepartmental 9,095 9,095 

Capital projects 2,418,799 2,418,799 
Debt service: 

Principal retirement 1,747,568 1,747,568 
Interest and other fiscal charges 757,063 757,063 

Total expenditures $ 30,308,175 $ $ 1,964,876 $ 94,441 $ 32,367,492 

Excess (deficiency) of revenues over 
(under) expenditures $ (1 ,404,999) $ 3,397 $ (382,703) $ (56,824) $ (1,841,129) 

OTHER FINANCING SOURCES (USES) 
Transfers in $ $ $ $ 43,328 $ 43,328 
Transfers out (298,054) (298,054) 
Issuance of general obligation bonds 1,820,000 1,620,000 
Bond premium 129,582 129,582 
Issuance of capital leases 306,975 306,975 

Total other financing sources (uses) $ 1,758,503 $ $ $ 43,326 $ 1,801,829 

Net change in fund balances $ 353,504 $ 3,397 $ (382,703) $ (13,498) $ (39,300) 
Fund balances- beginning 5,884,658 1,842,645 1,896,837 13,498 9,837,838 
Fund balances- ending $ 8,238,162 $ 1,846,042 $ 1,514,134 $ $ 9,598,338 

The notes to the financial statements are an integral part of this statement. 

-8-

Tim Lovelace
Oval

Tim Lovelace
Highlight

Tim Lovelace
Highlight

Tim Lovelace
Highlight

Tim Lovelace
Highlight

Exhibit 5

‘Swtoortt Rees Eps anges inFurd Bc
nen 210

Industrial Coal Rental
General Develonment load
“REVENUES
Gonara property taxes $  ipeeias7 § 8 8 = 8 12pe1s7
‘Other local taxes 4549.80 : 1579.87 : 6.125807
Permits, prvioge fees, and regustory loenses 45877 : : - 45877
Fes and foratures 1049 1089
Revenue ‘rom fhe use of money and property 81,188 3307 8226 : 778
CChargs for senices 28.278 : : : 201 278
Misoeleneous 62627 : : : 62607
Recovered nosis 1158913 : : 1958,813
Inlegovernmentl venues:
‘Commonwesth 7457973, : : angi 7495,500
Federal 2,012 988 : : 2.442 988
Total revenues 3 605.176 5 Ec SATE BaF 3509.58
EXPENDITURES:
Cure:
General govemmentadminisation $ 1897926 $ “8 $ +8 1as7 98
dial adminisvaton 2213,724 : : - 2213,724
Publ safety 4,100,376 - : 41003376
ube wos 9505588 1,984,878 : 5401 622
Health and were 9812403, oaaat 5906934
Eéucation 4,929,713, : : : 4920713
Parks recreation, and cutral 497,417 - - : 497.417
(Communi development 187.445, : : 1587.45
Nondapartmental 9,095, : : 9085
apa projects 2,418,799 : 2.418,799
Debi service:
inca elrmant 1747568 . . : 1747888
Interest and other fiscal charges "757.083, : : : 75,
Tots expenditures 3 ws08.175 ¥ 31a S xR RMRTESEE
Excess (deficiency) of revenues over

“und oxponstres Tae acer 5 oxa709 5 cog) § (1881.20

OTHER FINANCING SOURCES (USES)

Translersin 8 8 “8 8 43526 § 43.306
Transers out (209,054) : : . (298,054)
'ssuance of general obigaton bonds 1,620,000 : 1,820,000,
Bond pemiam 1293582 : : . 109.58
Issuance of cept loases 306,875 : . 908.975,

“otal ter Hnancing sources (ses) 31768503 5 sz 8 Ck TED
‘Net chenge in fund balances $ —_a55508 § 33e7 $ (582,708) § 19,498) $ (99,800)
und balances «beginning 5.284 58, 242.845 +1896,897 13498, 987838
Fund balances - ending E_5258,182 5 fsbo fsa ae gS 58 598,538

‘The notes tothe Enancal statements are an integral pat ofthis statement




County of Russell, Virginia 
Reconciliation of Statement of Revenues, 

Expenditures, and Changes in Fund Balances of Governmental Funds 
To the Statement of Activities 

For the Year Ended June 30,2010 

Amounts reported for governmental activities in the statement of activities are different because: 

Net change in fund balances -total governmental funds 

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. 

Revenues in the statement of activities that do not provide current financial resources are 
not reported as revenues in the funds. 

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 assets. Also, governmental funds report the effect of issuance costs, 
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. 

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. 

Internal service funds are used by management to charge the costs of certain activities, such as 
insurance and telecommunications, to individual funds. The net revenue (expense) of certain 
internal service funds is reported with governmental activities. 

Change in net assets of governmental activities 

The notes to the financial statements are an integral part of this statement. 

-9-

Exhibit 6 

$ (39,300) 

1,273,936 

162,924 

(317,776) 

(143,897) 

(95,978) 

$ 839,909 

Exhibit 6
County of Russell, Virginia
Reconciliation of Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Year Ended June 30, 2010

Amounts reported for governmental actites inthe statement of aatvtes are citferent because:
Net change in fund balances - total governmental funds $ (98,300)

Govemmental funds report capital outlays as expenditures. However, inthe statement of
activites the cost of those assets is allocated over their estimated usetl lives and reported
‘as depreciation expense, This isthe amount by which the capital outlays exceeded
‘depreciation in the current period. 1.273.998

Revenues inthe statement of activities that do not provide current financial resources are
Not reported as revenues in the funds. 162,924

‘The issuance of long-term debt (e.g. bonds, leases) provides current nancial resources to
governmental funds, while the repayment ofthe principal of long-term debt consumes
the current financial resources of governmental funds. Nelther transaction, however, has
any etfect on net assets. Also, governmental funds report the effec of issuance costs,
premiums, discounts, and simiar items when debt is first issued, whereas these amounts
are deferred and amortized inthe statement of activities, This amounts the net effect
of these differences in the treatment of long-term debt and related items, (317.778)

‘Some expenses reported inthe statement of activities do not require the use of curent
financial eesources and, therefore are not reported as expencitures in govemmental funds. (143,897)

Internal service funds are used by management to charge the costs of certain achilles, such as
insurance and telecommunications, to indvidual funds. The net revenue (expense) of certain

intemal senice funds is teported with governmental activi, (95,978)
Change in net assets of governmental activites, 350,508

‘The notes tothe financial statements are an integral pat ofthis statement




Exhibit 7 
County of Russell, Virginia 

Statement of Net Assets 
Proprietary Funds 

June 30, 2010 
Enterprise Internal 

Fund Service 
Service Fund 

Authority Health Insurance 

ASSETS 
Current assets: 

Cash and cash equivalents $ 49,575 $ 2,940,202 
Interest receivable 538 6,108 
Accounts receivable, net of allowance for uncollectibles 5,793 

Total current assets $ 55,906 $ 2,946,310 
Noncurrent assets: 

Capital assets: 
Utility plant in service $ 5,240,699 $ 
Machinery and equipment 75,470 
Less accumulated depreciation (1 ,668,508) 
Total capital assets $ 3,647,661 $ 
Total noncurrent assets $ 3,647,661 $ 
Total assets $ 3,703,567 $ 2,946,310 

LIABILITIES 
Current liabilities: 

Accounts payable $ 27,050 $ 382,401 
Accrued interest payable 1,858 
Bonds payable - current portion 17,867 

Total current liabilities $ 46,775 $ 382,401 

Noncurrent liabilities: 
Bonds payable - net of current portion $ 751,554 $ 

Total liabilities $ 798,329 $ 382,401 

NET ASSETS 
Invested in capital assets, net of related debt $ 2,878,240 $ 
Unrestricted 

Total net assets 

The notes to the financial statements are an integral part of this statement. 

-10-

County of Russel, Vir
Statement of Net Assets
Proprietary Funds
June 30, 2010

ASSETS
Current assets:
Cash and cash equivalents
Interest receivable
‘Accounts receivable, net of alowanoe for uncollectbles
Tota! current assets
Nonourrent assets:
Capital assets:
Ullty plant in service
Machinery and equipment
Less accumulated depreciation
Total capital assets
Tolal noncurrent assets,
Total assets

LIABILITIES
Current iabiites:
‘Acoounis payable
‘Accrued interest payable
Bonds payable - current portion
Total curent abilties

Noncurrent lables:
Bonds payable - net of current portion
Total iabilties

NET ASSETS
Invested in capital assets, net of related debt
Unrestricted

Total net assets

‘The notes tothe financial statements are an integral part of this statement.

§

$

Enterprise Internal
Fund Service
Service Fund

Authority “Health Insurance

5

a
3
3
3,

647,661 §

49575 $ 2,940,202
538 6,108
5,798 :

55,906 $2,946,370,

240,699 $ :

75,470 :
68,508)
7,661 §

57 $2,946,370,

27,050 $ 362,401

1,858 .
17,867 :
46775 § 382401

751,854





County of Russell, Virginia 
Statement of Revenues, Expenses, and Changes in Fund Net Assets 

Proprietary Funds 
For the Year Ended June 30, 2010 

Enterprise 
Fund 

Exhibit 8 

Internal 
Service 

Fund Service 
Authority Health Insurance 

OPERATING REVENUES 
Charges for services: 

Sewer revenues 
Insurance premiums 

Total operating revenues 

OPERATING EXPENSES 
Salaries and benefits 
Professional services 
Uti lites 
Materials and supplies 
Office expenses 
Travel expenses 
Insurance claims and expenses 
Depreciation 

Total operating expenses 

Change in net assets 

NONOPERATING REVENUES (EXPENSES) 
Investment earnings 
Interest expense 

Total nonoperating revenues (expenses) 
Income before contributions and transfers 

Transfers in 
Change in net assets 

Total net assets- beginning, as restated 
Total net assets - ending 

The notes to the financial statements are an integral part of this statement. 

-11-

$ 

$ 

$ 

$ 

$ 

$ 

$ 
$ 

$ 
$ 

$ 
$ 

65,160 $ 
5,171,358 

65,160 $ 5,171,358 

101,350 $ 
67,392 
19,556 
10,154 
70,209 

154 
5,301,251 

131,491 
400,306 $ 5,301,251 

(335,146) $ (129,893) 

154 $ 33,915 
(34,246) 
(34,092) $ 33,915 

(369,238) $ (95,978) 

254,728 $ 
(114,510) $ (95,978) 

3,019,748 $ 2,659,887 
2,905,238 $ 2,563,909 

County of Russell, Virginia

Exhibit 8

Statement of Revenues, Expenses, and Changes in Fund Net Assets

Proprietary Funds
For the Year Ended June 30, 2010

‘OPERATING REVENUES
Charges for services:
Sewer revenues
Insurance premiums
Total operating revenues

OPERATING EXPENSES
Salaries and benefits
Professional services
Utites
Materials and supplies,
Office expenses
‘Travel expenses
Insurance claims and expenses:
Depreciation

Total operating expanses

Change in net assets

NONOPERATING REVENUES (EXPENSES)

Investment eamings
Interest expanse

Tota nonoperating revenues (expenses)
Income before contributions and transfers

Transfers in
Change in net assets

Total net assets - beginning, as restated

Total net assets - ending

The notes tothe financial statements are an integral part of this statement.

ete

Enterprise Tntemal
Fund Servic
Service Fund
Authority  “Healthrinsurance

$ 65,160 $ -

: 5.171 358
$ 65,160 $ 5,171,358
8 101,350 $ :
67,392 :
19,556 :
10,184 :
70,208 :
154 :
: 5,301,251
131,491

301,251

400,306§

$ (335,146) $ (129,893)

$ 154 § 33,915

(34,246) .
$ (94,092) § ERG
$ (369.238) $ (95,978)
$ 254,728 § :
3 (14,510) § (65.578)
§  3.019,748 § 2,850,887
S___ 2,905,288 § 563,909




County of Russell, Virginia 
Statement of Cash Flows 

Proprietary Funds 
For the Year Ended June 30,2010 

CASH FLOWS FROM OPERATING ACTIVITIES 
Receipts from customers and users 
Receipts for insurance premiums 
Payments to suppliers 
Payments to employees 
Payments for premiums 

Net cash provided (used) by operating activities 

CASH FLOWS FROM NONCAPITAL FINANCING 
ACTIVITIES 
Transfers from other funds 

CASH FLOWS FROM CAPITAL AND RELATED FINANCING 
ACTIVITIES 
Principal payments on bonds 
Interest payments 

Net cash provided (used) by capital and related 
financing activities 

CASH FLOWS FROM INVESTING ACTIVITIES 
Interest and dividends received 

Net increase (decrease) in cash and cash equivalents 

Cash and cash equivalents - beginning 
Cash and cash equivalents - ending 

Reconciliation of operating income (loss) to net cash 
provided (used) by operating activities: 
Operating income (loss) 
Adjustments to reconcile operating income (loss) to net cash 

provided (used) by operating activities: 
Depreciation expense 
(Increase) decrease in accounts receivable 
Increase (decrease) in accounts payable 
Total adjustments 

Net cash provided (used) by operating activities 

The notes to the financial statements are an integral part of this statement 

-12-

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 
$ 

$ 

$ 

$ 
$ 

Enterprise 
Fund 

Exhibit 9 

Internal 
Service 
Fund Service 

Authority Health Insurance 

64,878 $ 

(166,809) 
(101,350) 

(203,281) $ 

254,728 $ 

(17,165) $ 
(34,282) 

(51 ,447) $ 

$ 

$ 

49,575 $ 
49,575 $ 

(335, 146) $ 

131,491 $ 
(282) 
656 

131,865 $ 
(203,281) $ 

5,171,358 

(5,316,589) 
(145,231) 

40,417 

(104,814) 

3,045,016 
2,940,202 

(129,893) 

(15,338) 
(15,338) 

(145,231) 

Exhibit 9
County of Russell, Virginia

Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2010
Enterprise internal
Fund Service
Service Fund

Authority “Health Insurance
CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers and users $ 64878 § :
Receipts for insurance premiums - 5,171,358
Paymenis to suppliers (186,809) -
Payments to employees (101,350) -
Payments for premiums - (6,316,580)

Net cash provided (used) by operating activities 3 oa2e ¢ 146,231)

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers trom other funds $___254728 $ -

‘CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Principal payments on bonds S (17,185) :
Interest payments (34,282)

Net cash provided (used) by capital and related
financing aciitles $51,447) $ :

‘CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends received $ -$ 40.817

Net inorease (decrease) in cash and cash equivalents $ “8 (104,814)

Cash and cash equivalents - beginning $ 49575 $ _3,045016

Cash and cash equivalents - ending 349575 $§ 2,940,202

Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $___ (635,146) $ 129,099
AAgjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:

Depreciation expense $ 131,491 $ :
(Increase) decrease in accounts receivable (282) :
Increase (decrease) in accounts payable 656 (15,338)
Total adjustments S___ 131,865 $ (15,336)
‘Net cash provided (used) by operating activities S$ (203,281) § (146,231)

The notes to the financial statements are an integral part of this statement.

12.




ASSETS 
Cash and cash equivalents 

Total assets 

LIABILITIES 
Amounts held for Social Services clients 

Total liabilities 

County of Russell, Virginia 
Statement of Fiduciary Net Assets 

Fiduciary Fund 
June 30, 2010 

The notes to the financial statements are an integral part of this statement. 

-13-

$ 
$ 

$ 
$ 

Exhibit 10 

Agency 
Funds 

54,533 
54,533 

54,533 
54,533 

County of Russell, Vieginia
Statement of Fiduciary Net Assets
Fiduciary Fund
June 30, 2010

Exhibit 10

ASSETS
Cash and cash equivalents
Total assels

LIABILITIES
Amounts held for Social Services clients
Total liabilities

The notes to the financial statements are an integral part of this statement.

13.

‘Agency
Funds

54,533

54,533
54,533




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30,2010 

Note 1-Summary of Significant Accounting Policies: 

The financial statements of the County conform to generally accepted accounting principles (GAAP) applicable to 
government units promulgated by the Governmental Accounting Standards Board (GASB). The following is a summary 
of the more significant policies: 

A. Reporting Entity 

The County of Russell, Virginia is a municipal corporation governed by an elected six-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. Blended component units, although legally 
separate entities, are, in substance, part of the government's operations. 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 legally separate from the government. 

Blended component units - None 

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 Russell 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 School Board is presented as a 
governmental fund type. The School Board does not issue separate financial statements. 

The Russell County Industrial Development Authority (IDA) encourages and provides financing for industrial 
development in Russell County. The financial statements of the IDA should have been included because the 
County appoints the governing body and has made moral obligation resolutions to finance deficits of any kind or 
nature that may occur each year subject to annual appropriation. Complete financial statements of the IDA can be 
obtained in writing at 137 Highland Drive, Lebanon, VA 24266. 

The Castlewood Water and Sewage Authority of Russell County provide water and sewer service to residents of 
Russell County. The Authority is fiscally dependent on the County because the County appoints the governing 
body and has financing guarantees involving the Authority. Complete financial statements of the Authority can be 
obtained in writing at P.O. Box 655, Castlewood, VA 24224. 

The Russell County Public Service Authority (PSA) provides water and sewer service to residents of Russell 
County. The Authority is fiscally dependent on the County because the County appoints the governing body and 
has financing guarantees involving the Authority. Complete financial statements of the PSA were not available at 
the report date. 

-14-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO THE FINANCIAL STATEMENTS,
JUNE 30, 2010

Note 1-Summary of Significant Accounting Policies:

The financial statements of the County conform to generally accepted accounting principles (GAAP) applicable to
government units promulgated by the Governmental Accounting Standards Board (GASB). The following is asummary
of the more significant policies:

A. Reporting Entity

The County of Russell, Virginia is @ municipal corporation governed by an elected sixmember 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. Blended component units, although legally
separate entities, are, in substance, part of the government's operations. Each discretely presented component
unitis reported in a separate column in the government-wide financial statements (see note below for description)
to emphasize that itis legally separate from the government.

Blended component units - None

Diseretely 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 Russell 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 School Board is presented as a
governmental fund type. The School Board does not issue separate financial statements.

The Russell County Industrial Development Authority (IDA) encourages and provides financing for industrial
development in Russell County. The financial statements of the IDA should have been included because the
County appoints the governing body and has made moral obligation resolutions to finance deficits of any kind or
nature that may occur each year subject to annual appropriation. Complete financial statements of the IDA can be
obtained in writing at 137 Highland Drive, Lebanon, VA 24266.

The Castlewood Water and Sewage Authority of Russell County provide water and sewer service to residents of
Russell County. The Authority is fiscally dependent on the County because the County appoints the governing
body and has financing guarantees involving the Authority, Complete financial statements of the Authority can be
obtained in writing at P.O, Box 655, Castlewood, VA 24224

The Russell County Public Service Authority (PSA) provides water and sewer service to residents of Russell
County. The Authority is fiscally dependent on the County because the County appoints the governing body and
has financing guarantees involving the Authority. Complete financial statements of the PSA were not available at
the report date.

Ade




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 1-Summary of Significant Accounting Policies: (continued) 

A. Reporting Entity (continued) 

Related Organizations -The County's officials are also responsible for appointing the members of the boards of 
other organizations, but the county's accountability for these organizations does not extend beyond making the 
appointment. 

Jointly Governed Organizations- The County, in conjunction with other local jurisdictions, participates in supporting 
the Southwest Virginia Regional Jail and the Cumberland Mountain Community Services Board. The governing 
bodies of these organizations are appointed by the respective governing bodies of the participating jurisdictions. 
During the year, the County contributed $1,127,786 to the Regional Jail and $58,912 to the Community Services 
Board. The County does not have any ongoing financial responsibility for these Organizations. 

B. Government-wide and Fund Financial Statements 

The government-wide financial statements (i.e., the statement of net assets 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. 

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, if any, are reported as separate columns in the fund financial 
statements. 

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 

The government-wide financial statements are reported using the economic resources measurement focus and the 
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are 
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related 
cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar 
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 

-15-

COUNTY OF RUSSELL, VIRGINIA

NoTES T0 FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 1-Summary of Significant Accounting Policies: (continued)

A.

Reporting Entity (continued)

Related Organizations - The County's officials are also responsible for appointing the members of the boards of
other organizations, but the county's accountability for these organizations does not extend beyond making the
appointment.

Jointly Governed Organizations - The County, in conjunction with other local jurisdictions, participates in supporting
the Southwest Virginia Regional Jail and the Cumberland Mountain Community Services Board. The governing
bodies of these organizations are appointed by the respective governing bodies of the participating jurisdictions.
During the year, the County contributed $1,127,786 to the Regional Jail and $58,912 to the Community Services
Board. The County does not have any ongoing financial responsibilty for these Organizations.

Government-wide and Fund Financial Statements

The government-wide financial statements (ie., the statement of net assets 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 o 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
aocountable.

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 cleariy 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, if any, are reported as separate columns in the fund financial
statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are
recorded when eamed and expenses are recorded when a liabilty 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.

15.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30,2010 

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 recognized as soon as they are both measurable and 
available. Revenues are considered to be available when they are collectible within the current period or soon 
enough thereafter to pay liabilities of the current period. For this purpose, the 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 expenditures, as well as 
expenditures related to compensated absences and claims and judgments, are recorded only when payment is 
due. 

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to 
be susceptible to accrual and 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 un­
collectible amounts. Property taxes not collected within 60 days after year-end are reflected as deferred 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 the government receives cash. 

The government reports the following major governmental funds: 

The General Fund is the government's primary operating fund. It accounts for all financial resources of the general 
government, except those required to be accounted for in other funds. The General Fund includes the activities of 
the Social Services, E-911, Dog Tag, Damage Stamp, Revenue Anticipation Note, Law Library, and Knox Creek 
Funds . The aforementioned Funds have been merged with the General Fund for financial reporting purposes. 

The Industrial Development, Coal Road and Rental Assistance Funds serve as the County's major Special 
Revenue Funds. The Industrial Development Fund accounts for financial resources to be used for industrial and 
community development benefiting the County. The Industrial Development Fund includes activities aimed at 
attracting and retaining industrial prospects in Russell County. The Coal Road Fund accounts for financial 
resources to be used for improvements to roads used in conjunction with coal mining and other expenses 
allowable by the Code of Virginia, (1950), as amended. The Rental Assistance Fund accounts for the financial 
resources used to assist low income families with rental expenses. 

-16-

COUNTY OF RUSSELL, VIRGINIA

Notes TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2010

Note 1-Summary of Significant Accounting Policies: (continued)

Cc.

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 recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to
be available if they are collected within 60 days ofthe end of the current fiscal period. Expenditures generally are
recorded when aliabilty is incurred, as under accrual accounting, However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when payment is
due.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to
be susceplible to accrual and so have been recognized as revenues of the current fiscal period, Accordingly, reat
and personal property taxes are recorded as revenues and receivables when billed, net of allowances for un-
collectible amounts, Property taxes not collected within 60 days after year-end are reflected as deferred revenues.

Sales and utility taxes, which are collected by the state of 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 renis are recorded as revenues when received. Intergovemmental revenues,
consisting primarily of federal, state and other grants for the purpose of funding specific expenditures, are
recognized when eamed 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 the government receives cash.

The government reports the following major governmental funds:

The General Fundis the government's primary operating fund. It zecounts forall nancial resources of the general
government, except those required to be accounted for in other funds. The General Fund includes the activities of
the Social Services, E-911, Dog Tag, Damage Stamp, Revenue Anticipation Note, Law Library, and Knox Creek
Funds . The aforementioned Funds have been merged with the General Fund for financial reporting purposes.

The Industrial Development, Coal Road and Rental Assistance Funds serve as the County's major Special
Revenue Funds. The Industrial Development Fund accounts for financial resources to be used for industrial and
community development benefiting the County. The Industrial Development Fund includes activities aimed at
attracting and retaining industrial prospects in Russell County. The Coal Road Fund accounts for financial
resources to be used for improvements to roads used in conjunction with coal mining and other expenses
allowable by the Code of Virginia, (1950), as amended, The Rental Assistance Fund accounts for the financial
resources used to assist low income families with rental expenses.

-16-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 2010 

Note 1-Summary of Significant Accounting Policies: (continued) 

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation: (continued) 

The government reports the following major proprietary funds: 

The County operates a water treatment system. The activities of the system are accounted for in the Dante 
System fund. 

Additionally, the government reports the following fund types: 

Internal Service Funds account for the financing of goods and services provided to other departments or agencies 
of the government, or to other governments, on a cost reimbursement basis. The Internal Service Funds consist of 
the Self Health Insurance Funds. 

Fiduciary funds account for assets held by the government in a trustee capacity or as agent or custodian for 
individuals, private organizations, other governmental units, or other funds. Agency funds include the Special 
Welfare Account Fund. The Special Welfare Account Fund includes activity of the Title XX and the SSI Fund, 
which have all been merged for financial reporting purposes. 

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are 
followed in both the government-wide and proprietary fund financial statements to the extent that those standards 
do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also 
have the option of following subsequent private-sector guidance for their business-type activities and enterprise 
funds, subject to this same limitation. The government has elected not to follow subsequent private-sector 
guidance. 

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 functions. 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 non-operating items. Operating revenues 
and expenses generally result from providing services and producing and delivering goods in connection with a 
proprietary fund's principal ongoing operations. The principal operating revenues of the County's Internal Service 
Funds are charges to departments for sales and health insurance. Operating expenses for Internal Service 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 non-operating revenues and expenses. 

When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted 
resources first, and then unrestricted resources as they are needed. 

-17-

COUNTY OF RUSSELL, VIRGINIA

NoTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 1-Summary of Significant Accounting Policies: (continued)

CC. Measurement Focus, Basis of Accounting, and Financial Statement Presentation: (continued)
The government reports the following major proprietary funds:

The County operates a water treatment system, The activities of the system are accounted for in the Dante
System fund

Additionally, the government reports the following fund types:

Intemal Service Funds account for the financing of goods and services provided to other departments or agencies
ofthe government, orto other governments, on a cost reimbursement basis. The intemal Service Funds consist of
the Self Health Insurance Funds

Fiduciary funds account for assets held by the government in a trustee capacity or as agent or custodian for
individuals, private organizations, other governmental units, or other funds. Agency funds include the Special
Welfare Account Fund. The Special Welfare Account Fund includes activity ofthe Tite XX and the SSI Fund,
Which have all been merged for financial reporting purposes.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those standards
do not confit with or contradict guidance of the Governmental Accounting Standards Board. Governments also
have the option of following subsequent private-sector guidance for their business-type activities and enterprise
funds, subject to this same limitation. The government has elected not to follow subsequent private-sector
guidance.

As a general rule, the effect of interfund activity has been eliminated from the govemment-wide financial
statements, Exceptions to this general rule are other charges between the government's functions. Elimination of
these charges would distort the direct costs and program revenues reported for the various functions concemed.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special
assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.

Proprietary Funds distinguish operating revenues and expenses from non-operating tems. 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 County's Internal Service
Funds are charges to departments for sales and health insurance. Operating expenses for Internal Service 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 non-operating revenues and expenses

‘When both restricted and unrestricted resources are available for use, itis the government's policy to use restricted
resources first, and then unrestricted resources as they are needed.

AT




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 1-Summary of Significant Accounting Policies: (continued) 

D. Assets, Liabilities, and Net Assets or Equity 

1. Deposits and Investments 

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. 

2. Receivables and Payables 

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of 
the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or 
"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding 
balances between funds are reported as "due to/from other funds." 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 a fund balance reserve 
account in applicable governmental funds to indicate that they are not available for appropriation and are not 
expendable available financial resources. 

3. Property Taxes 

Property is assessed at its value on January 1. Property taxes attach as an enforceable lien on property as of 
January 1. Real estate taxes are payable in installments on June 5th and December 5th. Personal property 
taxes are due and collectible on December 5th The County bills and collects its own property taxes. 

4. 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 $984,939 at June 30, 2010 and 
is comprised solely of property taxes. 

5. 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. 

-18-

COUNTY OF RUSSELL, VIRGINIA

NoTEs T0 FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 1-Summary of Significant Accounting Policies: (continued)

D. Assets, Liabilities, and Net Assets or Equity

1.

Deposits and Investments

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

Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as either ‘due torfrom other funds’ (i, the current portion of interfund loans) or
“advances tolirom other funds’ (.e., the non-current portion of interfund loans). All other outstanding
balances between funds ate reported as “due to/from other funds.” Any residual balances outstanding
between the governmental activities and businessype 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 a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are not
expendable available financial resources.

Property Taxes

Property is assessed at its value on January 1. Property taxes attach as an enforceable lien on property as of
January 1. Real estate taxes are payable in installments on June 5% and December 5". Personal property
taxes are due and collectible on December 5. The County bills and collects its own property taxes.
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 $984,939 at June 30, 2010 and
is comprised solely of property taxes

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




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 2010 

Note 1-Summary of Significant Accounting Policies: (continued) 

D. Assets, Liabilities, and Net Assets or Equity (continued) 

6. Capital Assets 

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, 
sidewalks, and similar items), are reported in the applicable governmental column 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 estimated fair market value at the date of donation. 

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend 
assets lives are not capitalized. 

Major outlays for capital assets and improvements are capitalized as projects are constructed. 

Property, plant, and equipment of the primary government, as well as the Component Unit- School Board, 
are depreciated using the straight line method over the following estimated useful lives: 

Assets 
Buildings 
Building improvements 
Structures, lines, and accessories 
Machinery and equipment 

7. Compensated Absences 

Years 
40 
40 

20-40 
4-30 

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. In 
accordance with the provisions of Governmental Accounting Standards No. 16, Accounting for Compensated 
Absences, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. The County 
accrues salary-related payments associated with the payment of compensated absences. All vacation pay is 
accrued when incurred in the government-wide and proprietary fund financial statements. 

The remainder of this page left blank intentionally. 

-19-

COUNTY OF RUSSELL, VIRGINIA

NoTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 1-Summary of Significant Accounting Policies: (continued)

D. Assets, Liabilities, and Net Assets or Equity (continued)
6. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar ites), are reported in the applicable governmental colurnn 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 costif purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assels lives are not capitalized.

Mejor outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant, and equipment of the primary government, as well as the Component Unit - School Board,
are depreciated using the straight line method over the following estimated useful lives:

Assets Years
Buildings 40
Building improvements 40
Structures, lines, and accessories 20-40
Machinery and equipment 420

7. 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, In
accordance with the provisions of Governmental Accounting Standards No, 16, Accounting for Compensated
Absences, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. The County
accrues salary-related payments associated with the payment of compensated absences. All vacation pay is
accrued when incurred in the government-wide and proprietary fund financial statements,

The remainder ofthis page left blank intentionally




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS {CONTINUED) 
JUNE 30, 2010 

Note 1-Summary of Significant Accounting Policies: (continued) 

D. Assets, Liabilities, and Net Assets or Equity (continued) 

B. Long-term Obligations 

In the government-wide financial statements, and proprietary fund types in the fund financial statements, 
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental 
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and 
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective 
interest method. Bonds payable are reported net ofthe applicable bond premium or discount. Bond issuance 
costs are reported as deferred charges and amortized over the term of the related debt. 

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as 
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing 
sources. Premiums received on debt issuances are reported as other financing sources while discounts on 
debtissuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual 
debt proceeds received, are reported as debt service expenditures. 

9. Fund Equity 

In the fund financial statements, governmental funds report reservations of fund balance for amounts that are 
not available for appropriation or are legally restricted by outside parties for use for a specific purpose. 
Designations of fund balance represent tentative management plans that are subject to change. 

10. NetAssets 

Net assets are the difference between assets and liabilities. Net assets invested in capital assets represent 
capital assets, less accumulated depreciation less any outstanding debt related to the acquisition, 
construction or improvement of those assets. 

The remainder of this page left blank intentionally. 

-20-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
‘JUNE 30, 2010

Note 1-Summary of Significant Accounting Policies: (continued)

D. Assets, Liabilities, and Net Assets or Equity (continued)

8.

10.

Long-term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-lype actviies, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance cosls, 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. Bond issuance
costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period, The face amount of debt issued is reported as other financing
sources, Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debl proceeds received, are reported as debt service expenditures.

Fund Equity

In the fund financial statements, governmental funds report reservations of fund balance for amounts that are
not available for appropriation or are legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.

Net Assets

Net assets are the difference between assets and labiliies. Net assets invested in capital assets represent

capital assets, less accumulated depreciation less any outstanding debt related to the acquisition,
construction oF improvement of those assets.

The remainder of this page left blank intentionally.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS {CONTINUED) 
JUNE 30, 201 0 

Note 2-Reconciliation of Government-Wide and Fund Financial Statements: 

A. Explanation of certain differences between the governmental fund balance sheet and the government-wide 
statement of net assets. 

The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds 
and net assets-governmental activities as reported in the government-wide statements of net assets. One element 
of that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the 
current period and therefore are not reported in the funds. The details of these $(23,278,515) and $(1 ,064,578) 
differences for the primary government and discretely presented component unit-School Board, respectively, are 
as follows: 

Primary School 

Government Board 

Bonds and literary loans payable $ (20,162,294) $ 
Lease purchase agreements (701 ,31 0) 

Unamortized premium (316,923) 

Accrued interest payable {323, 118) 

Landfill accrued closure and postclosure monitoring costs (1 ,264,062) 

Net OPEB Obligation (4,949) (34,000) 

Compensated absences (505,859) (1 ,030,578) 

Net adjustment to reduce fund balance-total governmental funds 
to arrive at net assets-governmental activities $ (23,278,515) $ (1 ,064,578) 

The remainder of this page left blank intentionally. 

-21-

COUNTY OF RUSSELL, VIRGINIA

NoTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 2-Reconciliation of Government-Wide and Fund Financial Statements:

A. Explanation of certain differences between the governmental fund balance sheet and the govemment-wide

statement of net assets.

The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds
and net assets-governmental activities as reported in the government-wide statements of net assets. One element
of that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported in the funds. The details of these $(23,278,515) and $(1,064,578)
differences for the primary government and discretely presented component unit-School Board, respectively, are

Primary
Government

as follows:
Bonds and literary loans payable $ (20,162,294)
Lease purchase agreements (701,310)
Unamortzed premium (316,923)
Accrued interest payable (323,118)
Landi accrued closure and postelosure monitoring costs (1,264,062)

Net OPEB Obligation

Compensated absences (505,859)

[Net adjustment to reduce fund balance-total governmental funds

to arrive at net assets-governmental activities $__ (23,278,515)

School
Board
$ :
(34,000)
(1,030,578)
$ (1,064,578)

The remainder of this page left blank intentionally.

2




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 2010 

Note 2·Reconciliation of Government-Wide and Fund Financial Statements: (continued) 

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and 
changes in fund balances and the government-wide statement of activities 

The governmental fund statement of revenues, expenditures, and changes in fund balances includes a 
reconciliation between net changes in fund balances-total governmental funds and changes in net assets of 
governmental activities as reported in the government-wide statement of activities. One element of that 
reconciliation explains, "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." The details of these $1,273,936 and $(17,183) for the primary government and discretely presented 
component unit-School Board, respectively, are as follows: 

Capital outlays 
School debt financed assets (net) 
Capital asset deletions (net) 
Depreciation expense 

Net adjustment to increase (decrease) net changes in fund 
balances - total governmental funds to arrive at changes in 

$ 

Primary 
Government 

2,592,345 

(72,762) 

(11 ,659) 

(1 ,233,988) 

Component 
Unit 

School 
Board 

$ 475.740 

72,762 

(565,685) 

net assets of governmental activities $ 1 ,273' 936 $ __ ,_( 17-'-, 1-'-83:..!...) 

The remainder of this page left blank intentionally. 

-22-

‘COUNTY OF RUSSELL, VIRGINIA

Notes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 2-Reconciliation of Government-Wide and Fund Financial Statements: (continued)

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and

changes in fund balances and the government-wide statement of activities

The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances-total governmental funds and changes in net assets of
governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains, “Governmental funds report capital outlays as expenditures. However, inthe statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense." The details of these $1,273,936 and $(17, 183) for the primary government and discretely presented

component unit-School Board, respectively, are as follows

‘Component
Unit
Primary School
Government Board
Capital outlays S  2592,945 § 475,740
School debt financed assets (net) (72,762) 72,762
Capital asset deletions (net) (11,659) -
Depreciation expense (1,233,988) (565,685)
‘Net adjustment to increase (decrease) net changes in fund
balances - total governmental funds to arrive at changes in
net assets of governmental activities 3 1,273936 $ (17,183)

The remainder of this page left blank intentionally.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 201 0 

Note 2-Reconciliation of Government-Wide and Fund Financial Statements: (continued) 

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and 
changes in fund balances and the government-wide statement of activities (continued) 

Another element of that reconciliation states "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 assets. 
Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is 
first issued, whereas these amounts are deferred and amortized in the statement of activities." The details of this 
$(317,776) difference in the primary government are as follows: 

Debt Issued or Incurred: 
Issuance of general obligation bonds, literary loans, and notes 
Lease purchase agreement 
Accrued landfill closure/postclosure 

Principal Payments: 
Bonds, literary loans, and notes 
Lease purchase agreements 

Net adjustment to increase (decrease) net changes in fund balances 
- total governmental funds to arrive at changes in net assets of 

$ 

Primary 
Government 

(1,749,582) 

(306,975) 

(8,787) 

1,385,262 

362,306 

governmental activities $ (317,776) 
=~~.,;, 

The remainder of this page left blank intentionally. 

-23-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 2-Reconciliation of Government-Wide and Fund Financial Statements: (continued)

8, Explanation of certain differences between the governmental fund statement of revenues, expenditures, and
changes in fund balances and the government-wide statement of activities (continued)

Another element of that reconciliation states "the issuance of long-term debt e.9., 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 assets.
Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debtis
first issued, whereas these amounts are deferred and amortized in the statement of activities.” The detals of this
$(317,776) difference in the primary government are as follows:

Primary
Government
Debt Issued or Incurred:
Issuance of general obligation bonds, literary loans, and notes $$ -—( 1,749,582)
Lease purchase agreement (306,975)
Accrued landiill closurelpostelosure (8,787)
Principal Payments:
Bonds, literary loans, and notes 1,385,262
Lease purchase agreements 362,306
Net adjustment to increase (decrease) net changes in fund balances
= total govemmental funds to arrive at changes in net assets of
governmental activities $_@t7,76)

The remainder ofthis page left blank intentionally




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 201 0 

Note 2-Reconciliation of Government-Wide and Fund Financial Statements: (continued) 

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and 
changes in fund balances and the government-wide statement of activities (continued) 

Another element of that reconciliation states, "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." The 
details of this $(143,897) and $(140,649) difference for the primary government and discretely presented 
component unit-School Board, respectively, are as follows: 

(Increase) decrease in compensated absences 
(Increase) decrease in accrued interest 
(Increase) decrease in net OPEB obligation 

Net adjustment to increase (decrease) net changes 
in fund balances-total governmental funds to arrive 

$ 

at changes in net assets of governmental activities $ 

Primary 
Government 

(172,754) $ 
28,861 

(4) 

Component Unit 
School Board 

(140,621) 

(28) 

(143,897) $ __ .:.(1_40.:._,6_49..:..) 

The remainder of this page left blank intentionally. 

-24-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2010

Note 2-Reconciliation of Government-Wide and Fund Financial Statements: (continued)

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and
changes in fund balances and the government-wide statement of activities (continued)

Another element ofthat reconciliation states, "Some expenses reported in the statement of activities do not require
the use of current financial resourcas and therefore are not reported as expenditures in governmental funds.” The
details of this $(143,897) and $(140,649) difference for the primary government and discretely presented
component unit-School Board, respectively, are as follows:

Primary
Government

(Increase) decrease in compensated absences $ (172,754) $
(Increase) decrease in accrued interest 28,861
(increase) decrease in net OPEB obligation (4)
Net adjustment to increase (decrease) net changes

in fund balances-total governmental funds to arrive

at changes in net assets of govemmental activities ¢ (143,897) §

The remainder of this page left blank intentionally.

‘Component Unit

School Board

(140,621)

(28)

(140,649)




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 201 0 

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 March 30, 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. All Funds of the County have legally adopted 
budgets with the exception of Agency Funds. 

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 function level. Only the Board 
of Supervisors can revise the appropriation for each department or category. The County Administrator is 
authorized to transfer budgeted amounts within 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 the 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. 

8. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the 
expenditure of monies are recorded in order to reserve that portion of the applicable appropriations, is not 
part of the County's accounting system. 

B. Excess of expenditures over appropriations 

The Social Services, Damage Stamp, Dante and Law Library Funds had excess expenditures over appropriations 
in the current year. 

C. Deficit fund equity 

At June 30, 2010, there were no funds which had deficit fund equity. 

-25-

‘COUNTY OF RUSSELL, VIRGINIA

NOTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

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 March 30, 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. All Funds of the County have legally adopted
budgets with the exception of Agency Funds,

Public hearings are conducted to obtain citizen comments.

Prior to June 30, the budget is legally enacted through passage of an Appropriations Resolution,

The Appropriations Resolution places legal restrictions on expenditures at the function level. Only the Board
of Supervisors can revise the appropriation for each department or category. The County Administrator is
authorized to transfer budgeted amounts within general government departments; however, the School Board
is authorized to transfer budgeted amounts within the school system's categories.

Formal budgetary integration is employed as a management control device during the year for the General
Fund, and the Special Revenue Funds (except the School Fund). The School Fund is integrated only at the
evel of legal adoption.

‘All budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP),
Appropriations lapse on June 30, for all County units.

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the

expenditure of monies are recorded in order to reserve that portion of the applicable appropriations, is not
part of the County's accounting system.

B. Excess of expenditures over appropriations

The Social Services, Damage Stamp, Dante and Law Library Funds had excess expenditures over appropriations
in the current year.

C._ Deficit fund equity

At June 30, 2010, there were no funds which had deficit fund equity.

25




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 4-Deposits and Investments: 

Deposits: 
All cash of the County is maintained in accounts collateralized in accordance with the Virginia Security for Public 
Deposits Act, Section 2.2-4400 et. seq. of the Code of Virginia or covered by federal depository insurance. 

Investments: 
Statutes authorize local governments and other public bodies to invest in obligations of the United States or 
agencies thereof, obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the 
International Bank for Reconstruction and Development (World Bank), the Asian Development Bank, the African 
Development Bank, "prime quality" commercial paper and certain corporate notes, banker's acceptances, 
repurchase agreements, and the State Treasurer's Local Government Investment Pool (LGIP). 

Custodial Credit Risk 

Custodial credit risk is the risk that, in the event of the failure of the counterparty, the County will not be able to 
recover the value of its investments or collateral securities that are in the possession of an outside party. The 
County's investments at June 30, 2010 were held in the County's name by the County's custodial bank. The State 
Non-Arbitrage (SNAP) Pools are not exposed to custodial credit risk because their existence is not evidenced by 
securities that exist in physical or book entry form. 

Credit Risk of Debt Securities 

The County's rated debt investments as of June 30, 2010 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 

Rated Debt Investments 

SNAP 

Concentration of Credit Risk 

Fair Quality Ratings 
AAAm 

$ 1,730,417 

At June 30, 2010, the County did not have any investments meeting the GASB 40 definition requiring concentration 
of credit risk disclosures that exceeded 5% of total investments. 

The State Non-Arbitrage Pool (SNAP) is an open-end management investment company registered with the 
Securities and Exchange Commission (SEC). 

Interest Rate Risk 

There are no interest rate risk disclosures required for the year ended June 30, 2010. 

-26-

‘COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 4-Deposits and Investments:

Deposits:
All cash of the County is maintained in accounts collateralized in accordance with the Virginia Security for Public

Deposits Act, Section 2.2-4400 ef, seq, of the Code of Virginia or covered by federal depository insurance.

investments:
Statutes authorize local governments and other public bodies to invest in obligations of the United States or
agencies thereof, obligations of the Commonwealth of Virginia or politcal subdivisions thereof, obligations of the
International Bank for Reconstruction and Development (World Bank), the Asian Development Bank, the AVtican
Development Bank, “prime quality’ commercial paper and certain corporate notes, banker's acceptances,
repurchase agreements, and the State Treasurer's Local Government investment Pool (LGIP).

Custodial Credit Risk

Custodial credit risk is the risk that, in the event ofthe failure of the counterparty, the County will not be able to
recover the value of is investments or collateral securities that are in the possession of an outside party. The
County’ investments at June 30, 2010 were held in the County's name by the County's custodial bank, The State
Non-Arbitrage (SNAP) Pools are not exposed to custodial credit risk because their existence is not evidenced by
securities that exist in physical or book entry form.

Credit Risk of Debt Securities

The County's rated debt investments as of June 30, 2010 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

Rated Debt Investments Fair Quality Ratings
AAAm
SNAP $ 1,730,417
Concentration of Credit Risk

At June 30, 2010, the County did not have any investments meeting the GASB 40 definition requiring concentration
of credit risk disclosures that exceeded 5% of total investments,

The State Non-Arbitrage Poot (SNAP) is an open-end management investment company registered with the
Securities and Exchange Commission (SEC)

Interest Rate Risk

There are no interest rate risk disclosures required for the year ended June 30, 2010.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 5-Due from Other Governmental Units: 

The following amounts represent receivables from other governments at year-end: 

Workforce Investment Board: 

Workforce Investment funds 

Commonwealth of Virginia: 

Local sales tax 

State sales tax 

Non-categorical aid 

Categorical aid-shared expenses 

Categorical aid-Virginia Public Assistance funds 

Categorical aid-Comprehensive Services Act funds 

Federal Government: 

Categorical aid-Virginia Public Assistance funds 

Categorical aid-other 

Total Amount Due from Other Governmental Units 

Note 6-lnterfund/Comgonent-Unit Obligations: 

Fund 

Primary Government: 

General Fund 

Component Unit: 

IDA 

Castlewood Water and 

Sewage Authority 

Total 

$ 

$ 

$ 

-27-

Primary Component Unit 

Government School Board 

$ 38,728 $ 

336,150 

536,656 

163,278 

189,687 

177,844 

211,359 

130,037 

49,847 1,144,815 

$ 1,296,930 $ 1,681,471 

Due to Primary 

Government/ 

Component Unit 

Due from Primary 

Government/ 

Component Unit 

425,000 $ 365,000 
==== 

200,000 $ 425,000 

165,000 

365,000 $ 425,000 
==~= 

COUNTY OF RUSSELL, VIRGINIA.

NoTEes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 5-Due from Other Governmental Units:

The following amounts represent receivables from other governments at year-end:

Primary Component Unit
Government School Board
Workforce Investment Board:
Workforce Investment funds $ 38,728 $ :
Commonwealth of Virginia:
Local sales tax 336,150 :
State sales tax - 536,656
Non-categorial aid 163,278 :
Categorical id-shared expenses 489,687
Categorical aid-Virginia Public Assistance funds 177,844 -
Categorical eid-Comprehensive Services Act funds 211,359 -
Federal Governme
Categorical aid-Virginia Public Assistance funds 130,037 -
Categorical aid-other 49,847 1,144,815
Total Amount Due from Other Governmental Units $__ 1,296,930 $ 1,681,471
Note 6-Interfund/Component-Unit Obligation:
Dueto Primary Due from Primary
Government! Government’
Fund Component Unit_ _ Component Unit
Primary Government:
General Fund $ 425,000. $ 365,000
Component Unit:
IDA $ 200,000 $ 425,000
Castlewood Water and
Sewage Authority 465,000
Total $ 365,000. $ 425,000

27




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30,2010 

Note 6-lnterfund/Component-Unit Obligations: (continued) 

lnterfund transfers and remaining balances for the year ended June 30, 2010, consisted of the following: 

Fund 

Primary Government: 
General Fund 
Dante Fund 
Rental Assistance Fund 
Total 

Transfers In 

$ 
254,728 

43,326 
$ 298,054 

Transfers Out 

$ 298,054 

$ 298,054 

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 7-Lonq-Term Debt: 

Primary Government· Governmental Activity Indebtedness 

Annual requirements to amortize long-term debt and related interest are as follows: 

Year Ending General Obligation Bonds Literary Loans Revenue Bonds 
June 30, Principal Interest Principal Interest Principal Interest 

2011 $ 645,069 $ 512,393 $ 426,281 $ 80,807 $ 201,688 $ 
2012 738,745 475,010 426,278 70,259 201,688 

2013 717,972 439,060 375,977 59,711 201,688 

2014 606,026 406,231 375,977 50,671 201,688 

2015 627,696 375,145 375,977 41,632 201,688 

2016-2020 3,329,673 1 ,399,194 1,366,638 82,539 1,008,442 

2021-2025 2,605,335 654,843 70,016 2,229 1,008,442 

2026-2030 1,404,948 201,074 1,008,442 

2031-2035 230,000 5,463 684,101 

2036-2037 129,181 

Totals $ 10,905,464 $ 4,468,413 $ 3,417,144 $ 387,848 $ 4,847,048 $ 

-28-

COUNTY OF RUSSELL, VIRGINIA

NoTes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 6-Interfund/Component-Unit Obligations: (continued)

Interfund transfers and remaining balances for the year ended June 30, 2010, consisted of the following:

Fund Transfers In Transfers Out

Primary Government:
General Fund $ - $298,054
Dante Fund 254,728 :
Rental Assistance Fund 43,326 -

Total

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 7-Long-Term Debt:

Primary Government - Governmental Activity Indebtedness

Annual requirements to amortize long-term debt and related interest are as follows:

Year Ending General Obligation Bonds Literary Loans Revenue Bonds

dune 30, Principal Interest Principal Interest Principal Interest

2011 $ 645,069 $ 512,393 $ 426,281 $ 80,807 $ 201,688 §

2012 738,745 475,010 426,278 70,259 201,688
2013 717,972 439,060 375,977 89,711 201,688
2014 606,026 406,231 375,977 50,671 201,688
2015 627,696 375,145 375,977 44,632 201,688
2016-2020 3,829,673 1,999,194 1,966,638 82,539 1,008,442
2021-2025 2,605,335 654,843 70,016 2,209 1,008,442
2026-2030 1,404,948 201,074 - - 1,008,442
2031-2035 230,000 5,463 - 7 684,101
2036-2037 : : : 129,181

Totals — $_ 10,905,464 $ 4,468,413 $3,417,144 $ 387,848 $4,847,048 §





COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30,2010 

Note 7-Long-Term Debt: (continued) 

Primary Government - Governmental Activity Indebtedness (continued) 

The following is a summary of long-term debt transactions of the County for the year ended June 30, 2010: 

Balance Balance 

July 1, 2009 Issuances Retirements June 30, 2010 

General obligation bonds $ 9,942,289 $ 1,620,000 $ (656,825) $ 10,905,464 

Literary loans 3,943,893 (526,749) 3,417,144 

Revenue bonds 5,048,736 (201 ,688) 4,847,048 

Literary anticipation note 992,638 992,638 

Deferred Amounts: 

Bond premiums 197,666 129,582 (1 0,325) 316,923 

Lease purchase agreements 756,641 306,975 (362,306) 701,310 

Landfill closure/ 

postclosure liability 1 ,255,275 8,787 1,264,062 

OPEB obligation 4,945 4 4,949 

Compensated absences 333,105 422,583 (249,829) 505,859 

Total $ 22,475,188 $ 2,487,931 $ (2,007,722) $ 22,955,397 

The remainder of this page left blank intentionally. 

-29-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 7-Long-Term Debt: (continued)

Primary Government - Governmental Activity Indebtedness (continued)

The following is a summary of long-term debt transactions of the County for the year ended June 30, 2010:

Balance Balance
July 1,2009__Issuances__Retitements__ June 30, 2010
General obligation bonds $ 9,942,289 § 1,620,000 $ (656,825) $ 10,905,464
Literary loans 3,949,893 - (626,749) 3,417,144
Revenue bonds 5,048,736 : (201,688) 4,847,088
Literary anticipation note 902,638 : : 992,638
Deferred Amounts:

Bond premiums 197,666 129,582 (10,325) 316,028,
Lease purchase agreements 756,641 306,975 (362,306) 701,310
Landfill closure!

postclosure liability 4,255,275 8,787 : 4,264,062
OPEB obligation 4945 4 : 4,949
Compensated absences 398,105 422,583 (249,828) 505,859

Total $_22,475,188 § 2,487,931 $__ (2,007,722) $22,955,397

The remainder ofthis page left blank intentionally.

-29-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30,2010 

Note 7-Long-Term Debt: (continued) 

Primary Government- Governmental Activity Indebtedness (continued) 

Details of long-term indebtedness: 

General Obligation and Revenue Bonds: 
Final 

Interest Date Maturity 
Rates Issued Date 

General obligation bond 4.85%-6.60% 1991 2012 
General obligation bond 4.90%-6.35% 1992 2013 
General obligation bond 6.4%-7.167% 1994 2012 
General obligation bond 5.1%-6.1% 1995 2016 
General obligation bond 5.1%-6.1% 1997 2016 
General obligation bond 4.10%-5.225% 1999 2019 
General obligation bond 4.975%-5.1% 2000 2021 
General obligation bond 2.35%-5.1% 2002 2023 
General obligation bond 4.6%-5.1% 2006 2027 
General obligation bond 4.6%-5.1% 2009 2030 
General obligation bond 3.05%-5.05% 2010 2031 
General obligation/Revenue bond 0.00% 11/28/2001 2033 
General obligation/Revenue bond 0.00% 11/28/2001 2033 
General obligation/Revenue bond 0.00% 11/1/2002 2033 
General obligation/Revenue bond 0.00% 10/14/2005 2036 
General obligation/Revenue bond 0.00% 10/14/2005 2037 
General obligation/Revenue bond 0.00% 4/28/2006 2037 
General obligation/Revenue bond 0.00% 3/30/2007 2037 

Subtotal General Obligation and Revenue Bonds 
Plus: 
Unamortized Premium 

Total General Obligation and Revenue Bonds 

Amount of 
Original 
Issue 

$ 133,833 
1,812,215 
3,620,000 

325,000 
140,000 
510,000 

1,802,210 
4,382,954 
3,205,190 
1,485,000 
1,620,000 

935,690 
1,678,400 

822,366 
91,439 

1,906,717 
415,513 
197,179 

The remainder of this page left blank intentionally. 

-30-

Balance Amount 
Governmental Due Within 

Activities One Year 

$ 18,937 $ 9,256 
351,812 112,378 
85,000 50,000 
90,000 15,000 
40,000 5,000 

250,000 25,000 
1,110,132 87,750 
3,037,887 203,219 
2,816,696 137,466 
1,485,000 
1,620,000 

686,173 31,190 
1,236,425 55,947 

616,774 27,412 
79,247 3,048 

1,684,267 63,557 
367,035 13,851 
177,127 6,683 

$ 15,752,512 $ 846,757 

$ 316,923 $ 16,754 

$ 16,069,435 $ 863,511 

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2010

Note 7-Long-Term Debt: {conti

inued)

Primary Government - Governmental Activity Indebtedness (continued)

Details of long-term indebtedness:

General Obligation and Revenue Bonds

General obligation bond
General obligation bond
General obligation bond
General obligation bond
General obligation bond
General obligation bond
General obligation bond
General obligation bond
Genera obligation bond
General obligation bond
General obligation bond
General obligalion/Revenue bond
General obligation/Revenue bond
General obligation/Revenue bond
General obligation/Revenue bond
General obigation/Revenue bond
General obigation/Revenue bond
General obigation/Revenue bond

Interest
Rates

4,85%-6.60%
4.90%-6.35%
6.4%-7.167%
516.1%
BA%-6.1%
4.10% 5.225%
4975%5.1%
2.35%-5.1%
46%-5.1%
4.6%-5.1%
3,08%-5.05%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

‘Subtotal General Obligation and Revenue Bonds

Plus:
Unamortized Premium

Total General Obligation and Revenue

Bonds

The remainder ofthis page lett blank intentionally

Date
Issued

1991
1982
4984
1985
1987
1989
2000
2002
2008
2009
2010

1112812001

11912812001

+1/4/2002

10/14/2005

40/14/2005

472812008

373012007

Final

Maturity

Date

2012
2013,
2012
2016
2016
2019
2021
2023,
2027
2030
2031
2033,
2033,
2033,
2036
2037
2037
2037

$

Amount of
Original

issue

133,833 $
4,812,215
3,620,000
325,000
140,000
510,000
41,802,210
4,382,954
3,208,190
4,485,000
41,620,000
935,690
4,878,400
822,366
91,499
1,906,717
415,513,
197,179

$

Balance

Governmental

Activities

18,937 $
351,812
85,000
90,000
40,000
250,000
4,110,132
3,087,887
2,816,696
4,485,000
4,620,000
686,173
1,288,425
616,774
79,247
1,684,267
367,036
Ara

752512 §
316.923 §

16,069,435

‘Amount

Due Within

One Year

9,256
112,378
50,000
16,000
5,000
25,000
87,750
203,219
137,466

31,190
55,947
AZ

3,088
63,557
19,881

6,683

B46 757
16,754

263,517




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30,2010 

Note 7-Long-Term Debt: (continued) 

Primary Government - Governmental Activity Indebtedness (continued) 

Details of long-term indebtedness: (continued) 

Final 
Interest Date Maturity 
Rates Issued Date 

Literary loans: 
Literary loan 3% 12115/1981 2012 
Literary loan 3% 12/15/1981 2012 
Literary loan 3% 12115/1981 2012 
Literary loan 3% 12115/1981 2012 
Literary loan 3% 7/15/1986 2017 
Literary loan 3% 7/15/1986 2017 
Literary loan 3% 211/1988 2018 
Literary loan 3% 211/1988 2018 
Literary loan 3% 211/1988 2018 
Literary loan 3% 211/1988 2018 
Literary loan 3% 211/1988 2018 
Literary loan 2% 1/1/2000 2020 
Literary loan 2% 3/15/1999 2019 
Literary loan 2% 3/15/1999 2019 
Literary loan 2% 6/15/1999 2019 
Literary loan 2% 6/15/1999 2019 
Literary loan 2% 11/15/2000 2021 
Literary loan 3% 12/15/2000 2021 
Literary loan 2% 7/1/2003 2023 
Total Literary loans 

Literary anticipation note 4% 9/4/2008 9/4/2013 

Other Obligations: 
Capital Leases (Note 8) 
Landfill Closure and Postclosure Monitoring Liability 
OPEB Obligation 
Compensated Absences 

Total Other Obligations 

Total Long-Term Obligations 

-31-

$ 

$ 

Amountol Balance Amount 
Original Governmental Due Within 
Issue Activities One Year 

176,504 $ 10,557 $ 5,280 
293,797 17,528 8,764 
194,990 11,656 5,828 

1,019,500 60,864 30,432 
960,000 211,554 30,222 

2,000,000 440,741 62,963 
530,999 148,176 18,522 
358,151 100,648 12,581 
84,805 24,040 3,005 

281,079 79,960 9,995 
196,873 55,912 6,989 

1,155,140 577,570 57,757 
1,114,086 501,386 55,700 

161,449 71,249 8,200 
422,680 190,206 21,134 
880,411 396,191 44,020 
493,789 271,588 24,689 
154,118 84,818 7,700 
250,000 162,500 12,500 

$ 3,417,144 $ 426,281 

992,638 $ 992,638 $ 

$ 701,310 $ 344,250 
1,264,062 

4,949 
505,859 379,394 

$ 2,476,180 $ 723,644 

$ 22,955,397 $ 2,013,436 

‘COUNTY OF RUSSELL, VIRGINIA

NoTes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 7-Long-Term Debt: (continued)

Primary Government - Governmental Activity Indebtedness (continued)

Delails of long-term indebtedness: (continued)

Final Amount of Balance Amount
Interest Date Maturity —Original_»=—Governmental_ Due Within
Rates Issued Date Issue Activities One Year
Literary bans.
Literary loan 3% —1NSH9B1—«2012_«$~—«178.504 10587 $ 5,280
Literary oan 3% 12N5N9B1 2012 293,797 17,528 8764
Literary loan 3% © 12NB/N9Bi 2012 194,990 11,656 5,828
Literary loen 3% 12/5/91 2012 4,019,500 60,864 30,432
Literary oan 3% 78/1966 2017 ‘960,000 211,854 30,222
Literary loan 3% 751986 2017 2,000,000 aao,rat 62,983
Literary loan 2h1888 2018, 590,909 148,178 18,522
Literary oan aig 2018 358,161 100,648 12,581
Literary oan aig 2018 84,805 24,040 $8,005
Literary loan 2nrg3 2018, 281,079 79,960 9,995
Literary oan anri988 2018, 196,873 95,912 6,989,
Literary loan smieo00 (2020 4,185,140 877570 BUTST
Literary loan ansiiggs 2019 1,114,088 501,386 55,700
Literary foan gisiigas 2019 161,449 71269 8,200
Literary loan aisiig99 2019 422,680 190,206 23,134
Literary loan en5ii939 2019 890,411 396,191 44,020
Literary loan 11/15/2000 2021 493,789 271,588 24,689
Literary loan aris/e000 2021 184,118 84,818 7,700
Literary loan 7iie003 (2028 250,000 162,500 12,500
Total Literary bans Bair, 144_§ 426,281
Literary anticipation note 4% giale008 9142013 § © 992,638 $992,698 _§ :
Other Obligation
Capital Leases (Note 8) $ 701310 § 344,260
Landill Closure and Postelosure Monitoring Liabilty 4,264,062 -
OPEB Obiigation 4,949 :
Compensated Absences 505,850 379,304
Tolal Other Obligations $ 2476180 § 723,644
Total Long-Term Obligations $22,955,397 § 2,019,496

31




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 201 0 

Note 7-Long-Term Debt: (continued) 

Primary Government- Enterprise Activity Indebtedness: 

Annual requirements to amortize long-term debt and related interest are as follows: 

Year Ending Revenue Bonds 

June 30, Principal Interest 

2011 $ 17,867 $ 33,580 

2012 18,602 32,845 

2013 19,371 32,076 

2014 20,174 31,273 

2015 21,015 30,432 

2016-2020 116,288 138,134 

2021-2025 137,354 110,507 

2026-2030 171,940 75,921 

2031-2035 215,233 32,627 

2036 31,577 511 

Totals $ 769,421 $ 517,906 

The following is a summary of long-term debt transactions of the Enterprise Fund for the year ended June 30, 2010. 

Revenue bonds $ 

Total $ 

Balance 

July 1, 2009 Issuances 

786,586 $ ____ $ 

786,584 $==== $ 

-32-

Retirements 

Balance 

June 30, 2010 

(17,165) $ __ 7_69..:...,4_21_ 

(17,165) $==7=69=,4=21= 

COUNTY OF RUSSELL, VIRGINIA

NoTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 7-Long-Term Debt: (continued)

Primary Government — Enterprise Activity Indebtedness:

Annual requirements to amortize long-term debt and related interest are as follows:

Year Ending Revenue Bonds

June 30, Principal Interest
2ot1 $ 17867 $)~=—(93,580
2012 18,602 32,845
2013 19371 32,076
2014 20,174 31,273
2018 21,018 30,492

2016-2020 116,288 138,134

2021-2025 187,354 440,507

2026-2080 171,940 75924

2031-2035 215,233 32,627
2038 7 St

Totals $ § 517,906

The following is a summary of long-term debt transactions of the Enterprise Fund for the year ended June 30, 2010,

Balance Balance
July 1, 2009 _Issuances Retirements _June 30, 2010
Revenue bonds $ 786,586 $ -$ (17,165) $ 769,421
Total $786,584 $ _§ (17,165) $ 769,421

-32-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 7-Long-Term Debt: (continued) 

Primary Government- Enterprise Fund Indebtedness (continued) 

Details of long-term indebtedness: 

Revenue Bonds: 

Interest Date 
Rates Issued 

Revenue bond 0% 3/24/1999 
Revenue bond 4.50% 4/10/1996 

Total Revenue Bonds 

Component Unit- School Board Indebtedness 

Final 
Maturity 

Date 

20t9 
2036 

Amount of Balance Amount 
Original Governmental Due Within 
Issue Activities One Year 

$ 37,500 $ 15,938 $ 1,875 
900,000 753,483 15,992 

$ 769,421 $ 17,867 

The following is a summary of long-term debt transactions of the discretely presented component unit for the year ended 
June 30, 2010: 

Balance Balance 

July 1, 2009 Issuances Retirements June 30, 2010 

OPEB obligation $ 33,972 $ 28 $ $ 34,000 

Compensated absences 889,957 808,089 (667,468) 1,030,578 

Total $ 923,929 $ 808,117 $ (667,468) $ 1,064,578 

The remainder of this page left blank intentionally. 

-33-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 7-Long-Term Debt: (continued)

Primary Government ~ Enterprise Fund Indebtedness (continued)

Details of long-term indebtedness:

Feevenue Bonds:
Final Amount of
Interest Date Maturity Original ~—- Governmental
Rates Issued Date Issue
Revenue bond 0% geaiggg © 2019 $87,500 $
Revenue bond 450% — 4honess 2036 900,000

Total Revenue Bonds

Component Unit - School Board Indebtedness

The following is a summary of long-term debt transactions of the discretely presented component unt for the year ended

June 30, 2010:

Balance Balance
July 1, 2009 issuances Retirements dune 30, 2010
OPEB obligation $ 33,972 $ 2 $ 78
Compensated absences 889,957 808,089 (667,468)
Total $ 923,929 $ 808,117 $ (667,468) $

The remainder ofthis page left blank intentionally.

-33-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 201 0 

Note 8-Capital Leases: 

Primary Government 
The County has entered into lease agreements to finance the acquisition of school buses, vehicles, trailers, tractors, and 
an excavator for the County and the School Board. These lease agreements qualify as capital leases for accounting 
purposes and, therefore, have been recorded at the present value of their minimum lease payments at the date of 
inception. 

The assets acquired through capital leases are as follows: 

Machinery and equipment 
Less: Accumulated depreciation 

Net Asset 

$ 

Machinery & 
Equipment 

1,182,093 
(199,368) 

$ _ ___::9:::82:!.:., 7.:::25:..._ 

The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 
2010, were as follows: 

Year Ending 
June 30, 

2011 
2012 
2013 

Subtotal 
Less, amount 

representing interest 

Present Value of 
Lease Agreement 

-34-

$ 

$ 

Capital 
Leases 

366,529 
264,010 
108,527 

739,066 

(37,756) 

$ =.,;7,;;,0 1;,:,;, 3;,;;1 0;, 

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 8-Capital Leases:

Primary Government
The County has entered into lease agreements to finance the acquisition of school buses, vehicles, trailers, tractors, and

‘an excavator for the County and the School Board. These lease agreements qualify as capital leases for accounting
purposes and, therefore, have been recorded at the present value of their minimum lease payments at the date of
inception.

The assets acquired through capital leases are as follows:

Machinery &
Equipment
Machinery and equipment $ 1,182,093
Less: Accumulated depreciation (199,368)
Net Asset $ 982,725

The future minimum lease obligations and the net present value of these minimum lease payments as of June 30,
2010, were as follows:

Year Ending Capital
June 30, Leases
2011 $ 366,529
2012 264,010
2013 108,527
Subtotal $ 739,066
Less, amount
representing interest (37,756)

Present Value of
Lease Agreement $__ 701,310

34.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 9-Employee Retirement System and Pension Plans: 

A. Plan Description 

Name of Plan: 
Identification of Plan: 
Administering Entity: 

Virginia Retirement System (VRS) 
Agent and Cost-Sharing Multiple-Employer Defined Benefit Pension Plan 
Virginia Retirement System (System) 

All full-time, salaried permanent employees of participating employers must participate in the VRS. Benefits 
vest after five years of service. Employees are eligible for an unreduced retirement benefit at age 65 with 5 
years of service (age 60 for participating local law enforcement officers, firefighters, and sheriffs) or at age 50 
with at least 30 years of service if elected by the employer (age 50 with at least 25 years of service for 
participating local law enforcement officers, firefighters, and sheriffs) payable monthly for life in an amount 
equal to 1. 70% of their average final compensation (AFC) for each year of credited service (1.85% for sheriffs 
and if the employer elects, for other employees in hazardous duty positions receiving enhanced benefits). 
Benefits are actuarially reduced for retirees who retire prior to becoming eligible for full retirement benefits. In 
addition, retirees qualify for annual cost-of-living adjustment (COLA) beginning in their second year of 
retirement. The COLA is limited to 5.00% per year. AFC is defined as the highest consecutive 36 months of 
reported compensation. Participating local law enforcement officers, firefighters, and sheriffs may receive a 
monthly benefit supplement if they retire prior to age 65. The VRS also provides death and disability benefits. 
Title 51.1 of the Code of Virginia (1950), as amended, assigns the authority to establish and amend benefit 
provisions to the General Assembly of Virginia. 

The system issues a publicly available comprehensive annual financial report that includes financial statements 
and required supplementary information for VRS. A copy of that report may be downloaded from their website 
at http://www.varetire.org/Pdf/Publications/2009-Annuai-Report.pdf or obtained by writing to the System's Chief 
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500. 

B. Funding Policy 

Primarv Government: 
Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5.00% of 
their annual salary to the VRS. This 5.00% member contribution may be assumed by the employer. In addition, 
the County of Russell, Virginia is required to contribute the remaining amounts necessary to fund its 
participation in the VRS using the actuarial basis specified by the Code of Virginia and approved by the VRS 
Board of Trustees. The County of Russell, Virginia's contribution rate for the fiscal year ended 2010 was 8.00% 
of annual covered payroll. 

Discretely Presented Component Unit- School Board (Non-Professional Employees): 
Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5.00% of 
their annual salary to the VRS. This 5.00% member contribution may be assumed by the employer. In addition, 
the School Board is required to contribute the remaining amounts necessary to fund its participation in the VRS 
using the actuarial basis specified by the Code of Virginia and approved by the VRS Board of Trustees. The 
School Board's contribution rate for the fiscal year ended 2010 was 14.60% of annual covered payroll. 

-35-

COUNTY OF RUSSELL, VIRGINA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 9-Employee Retirement System and Pension Plans:

A

Plan Description

Name of Plant Virginia Retirement System (VRS)
Identification of Pian: Agent and Cost-Sharing Multiple-Employer Defined Benefit Pension Pian
Administering Entity: Virginia Retirement System (System)

All fulltime, salaried permanent employees of participating employers must participate in the VRS. Benefits
vest after five years of service. Employees are eligible for an unreduced retirement benefit at age 65 with 5
years of service (age 60 for participating local law enforcement officers, firefighters, and sheriffs) or at age 50
with at least 30 years of service if elected by the employer (age 50 with at least 25 years of service for
participating local law enforcement officers, firefighters, and sheriffs) payable monthly for ife in an amount
equal to 1.70 % of their average final compensation (AFC) for each year of credited service (1.85% for sherifis
and if the employer elects, for other employees in hazardous duly positions receiving enhanced benefits).
Benefits are actuarially reduced for retirees who retire prior to becoming eligible for full retirement benefits. In
addition, retirees qualify for annual cost-of-living adjustment (COLA) beginning in their second year of
retirement. The COLA is limited to 5,00% per year. AFC is defined as the highest consecutive 36 months of
reported compensation. Participating local law enforcement officers, firefighters, and sheriffs may receive a
monthly benefit supplement i they retire prior to age 65. The VRS also provides death and disabilly benefits.
Title 51.1 of the Code of Virainia (1950), as amended, assigns the authority to establish and amend benefit
provisions to the General Assembly of Virginia.

The system issues a publicly available comprehensive annual financial report that includes financial statements:
and required supplementary information for VRS. A copy ofthat report may be downloaded from their website
athitp: www, varetire org/PaffPublications!2009-Annual-Repor.paf or obtained by writing tothe System's Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.

Funding Policy

Primary Government:

Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5.00% of
their annual salary to the VRS. This 5.00% member contribution may be assumed by the employer. In addition,
the County of Russell, Vitginia is required to contribute the remaining amounts necessary to fund its
patticipation in the VRS using the actuarial basis specified by the Code of Virginia and approved by the VRS
Board of Trustees. The County of Russell, Virginia's contribution rate for the fiscal year ended 2010 was 8.00%
of annual covered payroll.

Discretely Presented Component Unit - School Board (Non-Professional Employees}

Plan members are required by Tile 51.1 of the Code of Virainia (1950), as amended, to contribute 5.00% of
their annual salary to the VRS. This 5.00% member contribution may be assumed by the employer. In addition,
the School Board is required to contribute the remaining amounts necessary to fund its participation in the VRS
using the actuarial basis specified by the Code of Virainia and approved by the VRS Board of Trustees. The
School Board's contribution rate forthe fiscal year ended 2010 was 14.60% of annual covered payroll

-35-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 2010 

Note 9-Employee Retirement System and Pension Plans: (continued) 

C. Annual Pension Cost 

For fiscal year 2010, the County of Russell, Virginia's annual pension cost of $437,791 and $412,281 was equal 
to the County of Russell, Virginia's required and actual contributions for the County and the School Board Non­
Professionals, respectively. 

Three-Year Trend Information 

Fiscal Annual Percentage Net 
Year Pension of APC Pension 

Ending Cost (APC) 1 
Contributed Obligation 

Primary Government: 
County 6/30/2008 $ 289,428 100.00% $ 

6/30/2009 432,914 100.00% 

6/30/2010 437,791 100.00% 

Discretely Presented-Component Unit: 
School Board Non-Professional 6/30/2008 $ 416,704 100.00% $ 

6/30/2009 422,641 100.00% 

6/30/2010 412,281 100.00% 

1 Employer portion only 

Primarv Government: 
The required contribution was determined as part of the June 30, 2007 actuarial valuation using the entry age 
actuarial cost method. The actuarial assumptions at June 30, 2007 included (a) an investment rate of return 
(net of administrative expenses) of 7.50%, (b) projected salary increases ranging from 3.75% to 5.60% per year 
for general government employees and 3.50% to 4.75% for employees eligible for enhanced benefits available 
to law enforcement officers, firefighters, and sheriffs, and (c) a cost-of-living adjustment of 2.50% per year. 
Both the investment rate of return and the projected salary increases include an inflation component of 2.50%. 
The actuarial value of the County's assets is equal to the modified market value of assets. This method uses 
techniques that smooth the effects of short-term volatility in the market value of assets over a five-year period. 
The County's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll 
on an open basis. The remaining amortization period at June 30, 2007 was within a period of 20 years. 

-36-

COUNTY OF RUSSELL, VIRGINIA

NOTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 9-Employee Retirement System and Pension Plans: (continued)

C.

Annual Pension Cost

For fiscal year 2010, the County of Russell, Virginia's annual pension cost of $437,791 and $412,281 was equal
to the County of Russell, Virginia's required and actual contributions for the County and the School Board Non-

Professionals, respectively

Three-Year Trend Information

Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC)' Contributed Obligation
Primary Government
County 6/30/2008 «= $289,428 ~=——100.00% -
6/30/2008 492,914 100.00%
6/30/2010 437,791 100.00%
Diseretely Presented-Component Unit:
‘School Board Non-Professional 6/30/2008 $ 416,704 100.00% -
6730/2009 422,641 100.00%
6/30/2010 412,281 100.00%

‘Employer portion only

Primary Government:

The required contribution was determined as part of the June 30, 2007 actuarial valuation using the entry age
actuarial cost method, The actuarial assumptions at June 30, 2007 included (2) an investment rate of return
(net of administrative expenses) of 7.50%, (b) projected salary increases ranging from 3.75% to 5.60% per year
for general government employees and 3.50% to 4.75% for employees eligible for enfianced benefits avaliable
to law enforcement oficers, firefighters, and sheriffs, and (c) a cost-of-living adjustment of 2.50% per year.
Both the investment rate of return and the projected salary increases include an inflation component of 2.50%.
The actuarial value of the County's assets is equal to the modified market value of assets. This method uses,
techniques that smooth the effects of short-term volaity in the market value of assets over a five-year period.
The County's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll
on an open basis. The remaining amortization period at June 30, 2007 was within a period of 20 years.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS {CONTINUED) 
JUNE 30, 2010 

Note 9-Employee Retirement System and Pension Plans: (continued) 

C. Annual Pension Cost (continued) 

Discretely Presented-Component Unit School Board- Non-Professional: 
The required contribution was determined as part of the June 30, 2007 actuarial valuation using the entry age 
actuarial cost method. The actuarial assumptions at June 30, 2007 included (a) an investment rate of return 
(net of administrative expenses) of 7.50%, (b) projected salary increases ranging from 3.75% to 5.60% per year 
for general government employees and 3.50% to 4.75% for employees eligible for enhanced benefits available 
to law enforcement officers, firefighters, and sheriffs, and (c) a cost-of-living adjustment of 2.50% per year. 
Both the investment rate of return and the projected salary increases include an inflation component of 2.50%. 
The actuarial value of the County's assets is equal to the modified market value of assets. This method uses 
techniques that smooth the effects of short-term volatility in the market value of assets over a five-year period. 
The County's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll 
on an open basis. The remaining amortization period at June 30, 2007 was within a period of 20 years. 

D. Funded Status and Funding Progress 

Primary Government: 
As of June 30, 2009, the most recent actuarial valuation date, the plan was 83.74% funded. The actuarial 
accrued liability for benefits was $22,803,518, and the actuarial value of assets was $19,933,712, resulting in 
an unfunded actuarial accrued liability (UAAL) of $3,869,806. The covered payroll (annual payroll of active 
employees covered by the plan) was $5,559,094, and ratio of the UAAL to the covered payroll was 69.61%. 

Discretely Presented Component Unit- School Board (Non-Professional Employees): 
As of June 30, 2009, the most recent actuarial valuation date, the plan was 71.78% funded. The actuarial 
accrued liability for benefits was $14,751,035, and the actuarial value of assets was $10,588,117, resulting in 
an unfunded actuarial accrued liability (UAAL) of $4,162,918. The covered payroll (annual payroll of active 
employees covered by the plan) was $2,878,696, and ratio of the UAAL to the covered payroll was 144.61%. 

The schedule of funding progress, presented as Required Supplementary Information following the notes to the 
financial statements, presents multiyear trend information about whether the actuarial value of plan assets is 
increasing or decreasing over time relative to the actuarial accrued liability (AAL) for benefits. 

The remainder of this page left blank intentionally. 

-37-

COUNTY oF RUSSELL, VIRGINIA.

NoTes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 9-Employee Retirement System and Pension Plans: (continued)

C.

‘Annual Pension Cost (continued)

Discretely Presented-Component Unit School Board - Non-Professional

The required contribution was determined as part of the June 30, 2007 actuarial valuation using the entry age
actuarial cost method. The actuarial assumptions at June 30, 2007 included (a) an investment rate of return
(net of administrative expenses) of 7.50%, (b) projected salary increases ranging from 3.75% to 5.60% per year
for general government employees and 3.50% to 4.75% for employees eligible for enhanced benefits available
{o law enforcement officers, firefighters, and sheriffs, and (c) a cost-of-living adjustment of 2.50% per year,

Both the investment rate of return and the projected salary increases include an inflation component of 2.50%.

The actuarial value of the County's assets is equal to the modified market value of assets. This method uses
techniques that smooth the effects of short-term volaility in the market value of assets over a five-year period.
‘The County's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll
on an open basis. The remaining amortization period at June 30, 2007 was within a period of 20 years.

Funded Status and Funding Progress

Primary Governme!

As of June 30, 2009, the most recent actuarial valuation date, the plan was 83.74% funded. The actuarial
accrued liability for benefits was $22,803,518, and the actuarial value of assets was $19,933,712, resulting in
an unfunded actuarial accrued liability (UAAL) of $3,869,806. The covered payroll (annual payroll of active
employees covered by the plan) was $5,559,094, and ratio of the UAAL to the covered payroll was 69.61%.

Discretely Presented Component Unit - School Board (Non-Professional Employees):

As of June 30, 2009, the most recent actuarial valuation date, the plan was 71.78% funded, The actuarial
accrued liability for benefits was $14,751,035, and the actuarial value of assets was $10,588,117, resulting in
an unfunded actuarial accrued liability (UAAL) of $4,162,918. The covered payroll (annual payroll of active
employees covered by the plan) was $2,878,696, and ratio of the UAAL to the covered payroll was 14.61%.

The schedule of funding progress, presented as Required Supplementary Information folowing the notes to the
financial statements, presents multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability (AL) for benefits

The remainder of this page left blank intentionally.

-37-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 9-Employee Retirement System and Pension Plans: (continued) 

E. Discretely Presented Component Unit School Board 

Professional Employees: 

Plan Description 
The Russell County School Board contributes to the Virginia Retirement System (VRS), a cost-sharing multiple­
employer defined benefit pension plan administered by the Virginia Retirement System. VRS provides 
retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and 
beneficiaries. Title 51.1 of the Code of Virginia (1950), as amended, assigns the authority to establish and 
amend benefit provisions to the General Assembly of Virginia. The System issues a publicly available 
comprehensive annual financial report that includes financial statements and required supplementary 
information for VRS. That report may be downloaded from the System's web site at 
http://www.varetire.org/Pdf/Publications/2009-Annuai-Report.pdf or obtained by writing to the System's Chief 
Financial Officer at P. 0. Box 2500, Richmond, Virginia 23218-2500. 

Funding Policy 
Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5.00% of 
their annual salary to the VRS. This 5.00% member contribution may be assumed by the employer. In addition, 
the School Board is required to contribute the remaining amounts necessary to fund its participation in the VRS 
using the actuarial basis specified by the statute and approved by the VRS Board of Trustees. The School 
Board's contribution to the statewide cost sharing pool for professional employees was $1,202,914, 1 ,766,705, 
and 1,853,860 for the fiscal years ended 2010, 2009, and 2008, respectively. Employer contributions 
represented 8.81% for July 2009 through March 2010 and zero (0.00%) for April through June 2010,8.81%, 
and 10.30% of covered payroll for the fiscal years ended 2010, 2009, and 2008, respectively. 

The remainder of this page left blank intentionally. 

-38-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 9-Employee Retirement System and Pension Plans: (continued)

E.

Discretely Presented Component Unit School Board

Professional Employees

Plan Descripi

The Russell County School Board contributes to the Virginia Retirement System (VRS), a cost-sharing multiple-
employer defined benefit pension plan administered by the Virginia Retirement System, VRS provides
retirement and disability benefits, annual cost-of-living adjustment, and death benefits to plan members and
beneficiaries. Title 51.1 of the Code of Virginia (1950), as amended, assigns the authority to establish and
amend benefit provisions to the General Assembly of Virginia. The System issues a publicly available
comprehensive annual financial report that includes financial statements and required supplementary
information for VRS. That report may be downloaded from the System's web site at
http://www. varetire.org/PdflPublications/2009-Annual-Report pdf or obtained by writing to the System’s Chief
Financial Officer at P. 0. Box 2500, Richmond, Virginia 23218-2500.

Funding Policy

Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5.00% of
their annual salary to the VRS. This 5.00% member contribution may be assumed by the employer. In addition,
the School Board is required to contribute the remaining amounts necessary to fund its participation in the VRS
using the actuarial basis specified by the statute and approved by the VRS Board of Trustees. The School
Board's contribution to the statewide cost sharing pool for professional employees was $1,202,914, 1,766,705,
and 1,853,860 for the fiscal years ended 2010, 2009, and 2008, respectively. Employer contributions
represented 8.81% for July 2009 through March 2010 and zero (0,00%) for April through June 2010, 8.81%,
and 10.30% of covered payroll for the fiscal years ended 2010, 2009, and 2008, respectively.

The remainder of this page left blank intentionally,

-38-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 10-Capital Assets: 

Capital asset activity for the year ended June 30, 2010 was as follows: 

Primary Government: 
Beginning 

Balance 

(as restated) 

Governmental Activities: 

Capital assets, not being depreciated: 

Land $ 1,430,638 $ 
Construction in progress 428,749 

Total capital assets not being depreciated $ 1,859,387 $ 

Capital assets, being depreciated: 

Buildings $ 26,761,071 $ 
Machinery and equipment 3,798,539 

Total capital assets being depreciated $ 30,559,610 $ 

Less: accumulated depreciation for: 

Buildings $ (1 0,697,955) $ 
Machinery and equipment (2,067,966) 

Total accumulated depreciation $ (12,765,921) $ 

Total capital assets being depreciated, net $ 17,793,689 $ 

Governmental activities capital assets, net $ 19,653,076 $ 

Increases 

110,695 $ 
2,016,896 

2,127,591 $ 

14,595 $ 
450,159 

464,754 $ 

(665,263) $ 
(568,725) 

(1 ,233,988) $ 

(769,234) $ 

1,358,357 $ 

The remainder of this page left blank intentionally. 

-39-

Ending 

Decreases Balance 

$ 1,541,333 

2,445,645 

$ 3,986,978 

- $ 26,775,666 

(465,634) 3,783,064 

(465,634) $ 30,558,730 

$ (11 ,363,218) 

381,213 (2,255,478) 

381,213 $ (13,618,696) 

(84,421) $ 16,940,034 

(84,421) $ 20,927,012 

COUNTY OF RUSSELL, VIRGINIA

NoTes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 10-Capital Assets:
Capital asset actviy for the year ended June 30, 2010 was as follows:

Primary Government:

Beginning
Balance Ending
(as restated) Increases Decreases Balance
Governmental Activities:
Capital assets, nat being depreciated:
Land $1,430,638 $ 110,695. $ - $1,841,333
Construction in progress 428,749 2,016,896 = 245,648
Total capital assets not being depreciated «$§_—=—1,859,387 $2,127,591 $ = $3,986,978
Capital assets, being depreciated:
Buildings $ 26761071 $ 14,595 $ - $26,775,866
Machinery and equipment 3,798,539 450,159 (465,634) __3,783,064
Total capital assets being depreciated $30,550,610 § GATE $ (465,634) $30,558,730
Less: accumulated depreciation for
Buildings $ (10,697,955) $ (665,263) $ ~ $ (11,363,218)
Machinery and equipment (2,087,966) (668,725) 381,213 __ (2,255,478)
Total accumulated depreciation $___ (12,765,921) $ (7,233,988) $ 381,213 $ (13,618,696)

Total capital assets being depreciated, net —«$§_—17,793,689 $ ——(769,284) $__—(84,421) $_ 16,940,034

‘Governmental activities capital assets, net $ 19,653,076 $ 1,358,357 $ (84,421) $ 20,927,012

The remainder ofthis page left blank intentionally.

-39-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 10-Capital Assets: (continued) 

Primary Government: (continued) 

Business-Type Activities 

Capital assets, being depreciated: 

Utility plant 

Machinery and equipment 

Total capital assets being depreciated 

Less: accumulated depreciation for: 

Utility plant 

Machinery and equipment 

Total accumulated depreciation 

Total capital assets being depreciated, net 

Business-Type activities capital assets, net 

$ 

$ 

$ 

$ 

$ 

$ 

Beginning 

Balance 

(as restated) Increases Decreases 

5,240,699 $ $ 
75,470 

5,316,169 $ $ 

(1 ,462,020) $ (131,018) $ 
(74,997) (473) 

(1 ,537,017) $ (131 ,491) $ 

3,779,152 $ (131,491) $ 

3,779,152 $ (131,491) $ 

Depreciation expense was charged to functions/programs of the primary government as follows: 

Governmental activities: 

General government administration 

Judicial administration 

Public safety 

Public works 

Health and welfare 

Education 

Parks, recreation, and cultural 

Total depreciation expense-governmental activities 

Business-Type activities: 

Sewer Authority 

-40-

$ 3,477 

6,142 

185,873 

51,495 

39,081 

884,602 

63,318 

$ ==1~,2=33~,9=88= 

$ ==1~31~,4~91= 

Ending 

Balance 

$ 5,240,699 

75,470 

$ 5,316,169 

$ (1 ,593,038) 

(75,470) 

$ (1 ,668,508) 

$ 3,647,661 

$ 3,647,661 

COUNTY OF RUSSELL, VIRGINIA

NoTes TO FINANCIAL STATEMENTS (CONTINUED)
JuNE 30, 2010

Note 10-Capital Assets: (continued)

Primaty Government: (continued)

Beginning
Balance Ending
(as restated) Increases Decreases Balance
Business- Type Activities
Capital assets, being depreciated:
Utity plant $5,240,699 § -$8 5,240,899
Machinery and equipment 75,470 - 75,470
Total capital assets being depreciated $ 5,316,169 $ -$ 5,316,169
Less: accumulated depreciation for:
Utity plant $ (1,462,020) $ (131,018) $ (1,593,038)
Machinery and equipment (74,997) (473) (75,470)
Total accumulated depreciation $__(1597,017) $__ (137,497) $ (7,668,508)
Total capital assets being depreciated, net $ 3,779,152 $ (131,491) $ 3,647,661
Business-Type activities capital assets, net «$3,779,152. $_—_—(131,491) $ 3,647,661

Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental activities:
General government administration
Judicial administration
Public safety
Public works
Health and welfare
Education
Parks, recreation, and cultural

Total depreciation expense-governmental activities

Business-Type activities:
Sewer Authority

-40-

3477
6,142
185,873
51,495
39,081
884,602
63,318

1,233,988





COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 10-Capital Assets: (continued) 

Capital asset activity for the School Board for the year ended June 30, 2010 was as follows: 

Discretely Presented Component Unit- School Board: 

Capital assets, not being depreciated: 

Land 

Construction in progress 

Total capital assets not being depreciated 

Capital assets, being depreciated: 

Buildings 

Machinery and equipment 

Total capital assets being depreciated 

Less: accumulated depreciation for: 

Buildings 

Machinery and equipment 

Total accumulaled depreciation 

Total capital assets being depreciated, net 

Governmental activities capital assets, net 

Note 11-Risk Management: 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

Beginning 

Balance 

(as restated) 

4,643,707 $ 

4,643,707 $ 

18,640,322 $ 
4,693,637 

23,333,959 $ 

(6,950,552) $ 
(3,201,497) 

(10, 152,049) $ 

13,181,910 $ 

17,825,617 $ 

Increases 

$ 
90,571 

90,571 $ 

73,600 $ 

675,383 

748,983 $ 

(442,470) $ 
(414,267) 

(856,737) $ 

(107,754) $ 

(17, 183) $ 

Decreases 

$ 

Ending 

Balance 

4,643,707 

90,571 

----- $ __ 4_;_,7_34_;_,2_7_8 

$ 
(162, 196) 

(162, 196) $ 

$ 
162,196 

162,196 $ 

$ 

$ 

18,713,922 

5,206,824 

23,920,746 

(7,393,022) 

(3,453,568) 

(10,846,590) 

13,074,156 

17,808,434 

The County and its Component Unit - School Board are exposed to various risks of loss related to torts, theft of, 
damage to, and destruction of assets; errors and omissions; and natural disasters. The County and the related 
Component Unit- School Board participate with other localities in a public entity risk pool for their coverage of general 
liability, property, crime and auto insurance with the Virginia Association of Counties Risk Pool. Each member of this 
risk pool jointly and severally agrees to assume, pay and discharge any liability. The County and the School Board pay 
the Risk Pool contributions and assessments based upon classification and rates into a designated cash reserve fund 
out of which expenses of the pool, claims and awards are to be paid. In the event of a loss, deficit, or depletion of all 
available excess insurance, the pool may assess all members in the proportion to which the premium of each bears to 
the total premiums of all members in the year in which such deficit occurs. The County and its Component Unit­
School Board continue to carry commercial insurance for all other risks of loss. Settled claims resulting from these risks 
have not exceeded commercial insurance coverage in any of the past three fiscal years. 

-41-

COUNTY OF RUSSELL, VIRGINIA.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JuNe 30, 2010

Note 10-Capital Assets: (continued)
Capital asset activity for the School Board for the year ended June 30, 2010 was as follows:

Discretely Presented Component Unit ~ School Board

Beginning
Balance Ending
(as restated) Increases Decreases Belance

Capital assets, not being depreciated:

Land $ 4,643,707 § - - $ 4,643,707

Construction in progress : 90,571 : 90,571
Total capital assets notbeing depreciated —«§_—=—«4,643,707 90571 $ = $$ 4734,278
Capital assets, being depreciated:

Buildings $ 18,640,322 § 73,600 $ - $ 18,713,922

Machinery and equipment 4,893,637 675,383 (162,196) 5,208,824
Total capital assets being depreciated $ 23,533.069 $ 748983 $ (162,198) $23,920,746
Less: accumulated depreciation for

Buildings $ 6,950,552} $ (442,470) $ - $ — (7,393,022)

Machinery and equipment (3,201,497) (414,267) 162,196 (3,453,568)
Total accumulated depreciation $ (10,152,049) $_ (856,737) $ 162,196 $ (10,846,590)
Total capital assets being depreciated, net «$13,181,910 $ (107,754) $ - $13,074,156
Governmental activites capital assets, net «$17,825,617 $___—(17,183)-$ = $__ 17,808,434

Note 11-Risk Management:

The County and its Component Unit - School Board are exposed to various risks of loss related to torts, theft of,
damage to, and destruction of assets; errors and omissions; and natural disasters. The County and the related
Component Unit - Schoo! Board participate with other localities in a public entity risk poo! for their coverage of general
liability, property, crime and auto insurance with the Virginia Association of Counties Risk Pool. Each member of this
risk pool jointly and severally agrees to assume, pay and discharge any liability. The County and the School Board pay
the Risk Pool contibutions and assessments based upon classification and rates into a designated cash reserve fund
ut of which expenses of the pool, claims and awards are to be paid. In the event of a loss, deficit, or depletion of al
available excess insurance, the pool may assess all members in the proportion to which the premium of each bears to
the total premiums of all members in the year in which such deficit occurs. The County and its Component Unit —
‘School Board continue to carry commercial insurance for all other risks of loss. Settled claims resulting from these risks
have not exceeded commercial insurance coverage in any of the past three fiscal years.

Ate




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30,2010 

Note 12-Contingent Liabilities: 

Federal programs in which the County and its component units participate were audited in accordance with the 
provisions of U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non­
Profit Organizations. Pursuant to the provisions of this circular all major programs and certain other programs were 
tested for compliance with applicable grant requirements. While matters of noncompliance were disclosed by the audit, 
the Federal Government rnay 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. 

Note 13-Surety Bonds: 

Fidelity & Deposit Company of Maryland-Surety: 
Dollie Compton, Clerk of the Circuit Court 
Patrick Thompson, Treasurer 
Randy N. Williams, Commissioner of the Revenue 
Steve Dye, Sheriff 
All constitutional officers' employees: blanket bond 

Hartford Company- Surety: 
Tammy Caldwell - Clerk of the School Board 
All school employees: blanket bond 

USF&G Insurance Co. - Surety: 
All Social Services employees-blanket bond 

Note 14-Landfill Closure and Postclosure Care Cost: 

$ 1,010,000 
400,000 

3,000 
30,000 
50,000 

$ 10,000 
10,000 

$ 100,000 

State and federal laws and regulations require the County to place a final cover on its landfill site when it stops 
accepting waste and to perform certain maintenance and monitoring functions at the site after closure. $1 ,264,062 is 
the total estimated closure and postclosure care liability at June 30, 2010. This represents the cumulative amount 
based on the use of 100% of the estimated capacity of the landfill and is based on what it would cost to perform all 
remaining closure and postclosure in 2010. Actual costs for closure and postclosure monitoring may change due to 
inflation, deflation, changes in technology or changes in regulations. The County uses the Commonwealth of Virginia's 
financial assurance mechanism to meet the Department of Environmental Quality's assurance requirements for landfill 
closure and postclosure costs. 

The remainder of this page left blank intentionally. 

-42-

COUNTY OF RUSSELL, VIRGINIA

NOTES To FINANCIAL STATEMENTS (CONTINUED)
‘JUNE 30, 2010

Note 12-Contingent Liabilities:

Federal programs in which the County and its component units participate were audited in accordance with the
provisions of U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. Pursuant to the provisions of this circular all major programs and certain other programs were
tested for compliance with applicable grant requirements. While matters of noncompliance were disclosed by the 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, it any,
would be immaterial.

Note 13-Surety Bonds:

Fidelity & Deposit Company of Maryland-Surety:

Dollie Compton, Clerk of the Circuit Court $ 1,010,000
Patrick Thompson, Treasurer 400,000
Randy N. Williams, Commissioner of the Revenue 3,000
Steve Dye, Sheriff 30,000
All constitutional officers’ employees: blanket bond 50,000
Hartford Company - Surety

Tammy Caldwell - Clerk of the School Board $ 10,000
All school employees: blanket bond 10,000

USF&G Insurance Co. - Surety:
‘All Social Services employees-blanket bond $ 100,000

Note 14-Landfill Closure and Postclosure Care Cost:

State and federal laws and regulations require the County to place a final cover on its landfill site when it stops
accepting waste and to perform certain maintenance and monitoring functions at the site after closure. $1,264,062 is
the total estimated closure and postclosure care liability at June 0, 2010. This represents the cumulative amount
based on the use of 100% of the estimated capacity of the landfill and is based on what it would cost to perform ail
remaining closure and postclosure in 2010. Actual cosis for closure and postclosure monitoring may change due to
inflation, deflation, changes in technology or changes in regulations. The County uses the Commonwealth of Virginia's
financial assurance mechanism to meet the Department of Environmental Quality’s assurance requirements for landfill
closure and postclosure costs.

The remainder of this page left blank intentionally.

42.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 201 0 

Note 15-Deferred (Unearned) Revenue: 

Governmental funds report deferred revenue in connection with receivables for revenues not considered to be available 
to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with 
resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of 
deferred revenue and unearned revenue reported in the governmental funds were as follows: 

Delinquent property taxes receivable 
Prepaid taxes 
Total deferred/unearned revenue for governmental funds 

Note 16-Self Health Insurance: 

Unavailable 
$ 6,728,379 $ 

37,163 
$ 6,765,542 $ 

Unearned 
4,276,551 

37,163 
4,313,714 

The County of Russell, Virginia established a limited risk management program for health insurance. Premiums are 
paid into the health plan fund from the County and School Board and are available to pay claims, and administrative 
costs of the program. During the fiscal year 2010, a total of $5,301,251 was paid in benefits and administrative costs. 
The risk assumed by the County and School Board is based on the number of participants in the program. The risk 
varies by the number of participants and their specific plan type. As of June 30, 2010, the County and School Board 
were exposed to risk which represents the difference between the claims to date and the ceiling liability as calculated 
based on enrollment levels and health plan coverage. Additional costs in excess of the ceiling liability are covered as 
part of the contract with the County. Incurred but not reported claims of $382,401 have been accrued as a liability based 
primarily on actual cost incurred prior to June 30 but paid after year-end. lnterfund premiums are based primarily upon 
the insured funds' claims experience and are reported as quasi-external interfund transactions. Changes in the claims 
liability during fiscal year 2010 were as follows: 

Current Year 
Balance at Claims and Balance at 

Beginning of Changes in Claim End of 
Fiscal Year Fiscal Year Estimates Payments Fiscal Year 

2009-10 $ 397,739 $ 5,285,913 $ (5,301 ,251) $ 382,401 

Note 17-Commitments and Contingencies: 

The School Board has obligated funds for the projects described below as of June 30, 2010: 

Honaker High Renovation 

Original 
Contract 

$ 1,241,500 

Amount Paid Remaining 
As of 6/30/2010 Contract Amount 
$ 77,371 $ 1,164,129 $ 

-43-

Accounts 
Payable 

734,701 

Retainage 
Payable 

$ 42,598 

COUNTY OF RUSSELL, VIRGINIA

NoTEs To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 15-Deferred (Unearned) Revenue:

‘Governmental funds report deferred revenue in connection with receivables for revenues not considered to be available
to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with
resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of
deferred revenue and unearned revenue reported in the governmental funds were as follows:

Unavailable Uneamed
Delinquent property taxes receivable $ 6,728,379 $ 4,276,551
Prepaid taxes 37,163 37,163

Total deferred/uneared revenue for governmental funds $6,765,542 $ 4,313,714

Note 16-Self Health Insurance:

The County of Russell, Virginia established a limited risk management program for health insurance. Premiums are
paid into the health plan fund from the County and School Board and are available to pay claims, and administrative
cosis of the program. During the fiscal year 2010, a total of $5,301,251 was paid in benefits and administrative costs.
The risk assumed by the County and School Board is based on the number of participants in the program. The risk
varies by the number of participants and their specific plan type. As of June 30, 2010, the County and School Board
were exposed to risk which represents the difference between the claims to date and the ceiling liability as calculated
based on enrollment levels and health plan coverage. Additional costs in excess of the ceiling liability are covered as
part of the contract with the County. Incurred but not reported claims of $382,401 have been accrued as a liability based
primarily on actual cost incurred prior to June 30 but paid after year-end. Interfund premiums are based primarily upon
the insured funds’ claims experience and are reported as quasi-external interfund transactions. Changes in the claims
liability during fiscal year 2010 were as follows:

Current Year
Balance at Claims and Balance at
Beginning ot /—_Changes in Claim End of
Fiscal Year _ Fiscal Year_ _Estimates Payments _ Fiscal Year

2009-10 $ 397,739 $ __ 5,285,913 $ _ (6,301,251) $ 382,401

Note 17-Commitments and Contingencies:
The School Board has obligated funds for the projects described below as of June 30, 2010:

Original © Amount Paid Remaining Accounts —_—Retainage
Contract __As of 6/30/2010 Contract Amount __ Payable Payable
Honaker High Renovation $ 124,500 § 77371 $ 1,164,129 § 734,701 $ 42,598

43.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 2010 

Note 1 B-Other Post-Employment Benefits-Health Insurance 

From an accrual accounting perspective, the cost of post-employment health care benefits (OPEB), like the cost of 
pension benefits, generally should be associated with the periods in which the cost occurs, rather than in future years 
when it will be paid. In adopting the requirements of GASB Statement No. 45 during the year ended June 30, 2009, the 
County recognizes the cost of post-employment health care in the year when the employee services are rendered, 
reports the accumulating liability, and provides information useful in assessing potential demands on the County's future 
cash flows. Recognition of the liability accumulated from prior years will be phased in over 30 years, commencing with 
the 2009 liability. 

A. Plan Description 

The County of Russell and Russell County's Component Unit- School Board administers a single-employer healthcare 
plan ("the Plan"). The Plan provides for participation by eligible retirees and their dependents in the health insurance 
programs available to County and School Board employees. The Plan will provide retiring employees the option to 
continue health insurance offered by the County and School Board. Any County or School Board employee eligible 
retiree may receive this benefit until he/she has reached sixty five years of age. 

To be eligible for this benefit a retiree must meet the following criteria: attained age 50 and 15 years of service and not 
eligible for Medicare and the last 10 years must be with the County or School Board prior to retirement. The benefits, 
employee contributions and the employer contributions are governed by the Board of Supervisors and the School Board 
and can be amended through the Board of Supervisors and the School Board action respectively. The Plan does not 
issue a publicly available financial report. 

B. Funding Policy 

The County and School Board currently pay for the post-retirement health care benefits on a pay-as-you-go basis. The 
County and School Board currently have 496 employees that are eligible, respectively, for the program. In addition, 1 DO 
percent of premiums are the responsibility of the retiree. 

Health benefits include Medical, Dental, and Vision coverage for retirees and eligible spouses/dependents. Retirees are 
eligible to choose one of the following medical options through the County and School Board. The rates are as follows: 

Medical & Rx 

Retiree Spouse 

Under 65 $ 8,600 $ 8,600 

COBRA 

Retiree Family 

Under 65 $ 490 $ 1,123 

-44-

COUNTY OF RUSSELL, VIRGINIA

NoTES 70 FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2040

Note 18-Other Post-Employment Benefits-Health Insurance

From an accrual accounting perspective, the cost of post-employment health care benefits (OPEB), lke the cost of
pension benefits, generally should be associated with the periods in which the cost occurs, rather than in future years
when itwill be paid. In adopting the requirements of GASB Statement No. 45 during the year ended June 30, 2009, the
County recognizes the cost of post-employment health care in the year when the employee services are rendered,
reports the accumulating liability, and provides information usefulin assessing potential demands on the County's future
cash flows. Recognition of the liability accumulated from prior years will be phased in over 30 years, commencing with
the 2009 labilty

A. Plan Description

The County of Russell and Russell County's Component Unit- School Board administers a single-employer healthcare
plan (‘the Plan’). The Plan provides for participation by eligible retirees and their dependents in the health insurance
programs available to County and School Board employees. The Plan will provide retiring employees the option to
continue health insurance offered by the County and School Board. Any County or School Board employee eligible
retiree may receive this benefit until he/she has reached sixty five years of age.

Tobe eligible for this benefit a retiree must meet the following criteria: attained age 50 and 15 years of service and not
eligible for Medicare and the last 10 years must be with the County or School Board prior to retirement. The benefits,
‘employee contributions and the employer contributions are governed by the Board of Supervisors and the School Board
and can be amended through the Board of Supervisors and the School Board action respectively. The Plan does not
issue a publicly available financial report

B. Funding Policy

The County and School Board currently pay for the post-retirement health care benefits on a pay-as-you-go basis. The
County and Schoo! Board currently have 496 employees that are eligible, respectively, for the program. In addition, 100
percent of premiums are the responsibility of the retiree.

Health benefits include Medical, Dental, and Vision coverage for retirees and eligible spouses/dependents. Retirees are
eligible to choose one of the following medical options through the County and School Board. The rates are as follows:

Medical & Rx
Retiree Spouse
Under 65 $ 8,600 $ 8,600

Under 65

490 $ 4,123

4d.




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 18-0ther Post-Employment Benefits-Health Insurance (continued) 

C. Annual OPEB Cost and Net OPEB Obligation: 

The County's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required 
contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB 
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost 
each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. 
The following table shows the components of the County's annual OPEB cost for the year, the amount actually 
contributed to the plan, and changes in the County's net OPEB obligation: 

Annual required contribution 
Interest on net OPEB obligation 
Adjustment to annual required contribution 

Annual OPEB cost (expense) 
Contributions made 

Increase in net OPEB obligation 
Net OPEB obligation· beginning of year 
Net OPEB obligation - end of year 

$ 42,985 

$ 

198 
(202) 

42,981 
42,977 

4 

4,945 
4,949 

The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB 
obligation for 2010 were as follows: 

Percentage of 
Fiscal Annual Annual OPEB Cost Net OPEB 
Year Ended' OPEB Cost Contributed Obligation 

6/30/2009 $ 42,981 88% $ 4,949 

'only available for one year 

The remainder of this page left blank intentionally. 

-45-

COUNTY OF RUSSELL, VIRGINIA

NoTES TO FINANCIAL STATEMENTS (CONTINUED)
‘JUNE 30, 2010

Note 18-Other Post-Employment Benefits-Health Insurance (continued)

C. Annual OPEB Cost and Net OPEB Obligation:

The County's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB
Statement 45. The ARC represents a level of funding thet, ifpaid on an ongoing basis, is projected to cover normal cost
each year and amortize any unfunded actuarial abilties (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the County's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the County’s net OPEB obligation

Annual required contribution

Interest on net OPEB obligation
‘Adjustment to annual required contribution
‘Annual OPEB cost (expense)

Contributions made

Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year

The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB

obligation for 2010 were as follows:

§

42,985
198

(202)

42,981

42,977

§

4
4,945,

4,949

Percentage of

Fiscal Annual Annual OPEB Cost. Net OPEB

Year Ended* OPEB Cost. Contributed Obligation
6/30/2009 $ 42,981 88% $ 4,949

“only available for one year

The remainder of this page left biank intentionally

-45-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30,2010 

Note 18-0ther Post-Employment Benefits-Health Insurance (continued) 

C. Annual OPES Cost and Net OPES Obligation: (continued) 

The School Board's annual other postemployment benefit (OPES) cost (expense) is calculated based on the annual 
required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of 
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover 
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 
thirty years. The following table shows the components of the School Board's annual OPES cost for the year, the 
amount actually contributed to the plan, and changes in the School Board's net OPES obligation: 

Annual required contribution $ 295,315 

Interest on net OPEB obligation 1,359 

Adjustment to annual required contribution (1 ,387) 

Annual OPEB cost (expense) 295,287 

Contributions made 295,259 

Increase in net OPEB obligation 28 

Net OPEB obligation - beginning of year 33,972 
Net OPEB obligation - end of year $ 34,000 

The School Board's annual OPES cost, the percentage of annual OPES cost contributed to the plan, and the net OPES 
obligation for 2010 were as follows: 

Percentage of 
Fiscal Annual Annual OPEB Cost Net OPEB 
Year Ended' OPEB Cost Contributed Obligation 

6/30/2009 $ 295,287 88% $ 34,000 

'only available for one year 

D. Funded Status and Funding Progress 

The funded status of the Plan for the County as of July 1, 2008, is as follows: 

Actuarial accrued liability (AAL) $ 546,570 

Actuarial value of plan assets $ 
Unfunded actuarial accrued liability (UAAL) $ 546,570 
Funded ratio (actuarial value of plan assets I AAL) 0.00% 
Covered payroll (active plan members) $ 4,198,697 

UAAL as a percentage of covered payroll 13.02% 

-46-

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 18-Other Post-Employment Benefits-Health Insurance (continued)

C. Annual OPEB Cost and Net OPEB Obligation: (continued)

The School Board's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial lablties (or funding excess) over a period not o exceed
thirty years, The following table shows the components of the School Board's annual OPEB cost for the year, the

amount actually contributed to the plan, and changes in the School Board's net OPEB obligation:

‘Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
‘Annual OPEB cost (expense)
Contributions made.
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year

The School Board's annual OPEB cost, the percentage of annual OPEB cost contributed fo the plan, and the net OPEB.

obligation for 2010 were as follows:

$

295,315
1,359
(1,387)

295,287
295,259

$

2B
33,972

34,000

Percentage of
Fiscal Annual Annual OPEB Cost Net OPES
YearEnded* _ OPEBCost_ Contributed Obligation
6130/2009 § 295,287 88% $ 34,000
“only available for one year
D. Funded Status and Funding Progress
‘The funded status of the Plan for the County as of July 1, 2008, is as follows:
Actuatial accrued liabilty (AL) $ 546,570
Actuarial value of plan assets $ :
Unfunded actuarial acerued liability (UAL) $ 548,570
Funded ratio (actuarial value of plan assets / AL) 0.00%
Covered payroll (active pian members) $ 4,198,697
UAAL as a percentage of covered payroll 13.02%

-46-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 201 0 

Note 18-0ther Post-Employment Benefits-Health Insurance (continued) 

D. Funded Status and Funding Progress (continued) 

The funded status of the Plan for the School Board as of July 1, 2008, is as follows: 

Actuarial accrued liability (AAL) $ 
Actuarial value of plan assets $ 
Unfunded actuarial accrued liability (UAAL) $ 

Funded ratio (actuarial value of plan assets I AAL) 
Covered payroll (active plan members) $ 

UAAL as a percentage of covered payroll 

3,755,059 

3,755,059 

0.00% 

24,186,441 

15.53% 

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the 
probability of occurrence of events far in the future. Examples include assumptions about future employment, mortality, 
and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required 
contributions of the employer are subject to continual revision as actual results are compared with past expectations and 
new estimates are made about the future. 

The schedule of funding progress, presented as required supplementary information following the notes to the financial 
statements, will present multiyear trend information, as it becomes available, about whether the actuarial value of plan 
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 

E. Actuarial Methods and Assumptions 

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the 
employer and the plan members) and include the types of benefits provided at the time of each valuation and the 
historical pattern of sharing of benefit costs between the employer and plan members to that point. 

The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term 
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the 
calculations. 

In the July 1, 2008, actuarial valuation, the projected unit of credit actuarial cost method was used. Under this method, 
future benefits are projected and the present value of such benefits is allocated from date of hire to date of eligibility the 
actuarial assumptions included: inflations at 2.50 percent, plus productivity component of 1.25 percent, and investments 
rate of return at 4.00 percent, and a health care trend rate of 10.00 percent graded to 5.00 percent over 8 years. The 
UAAL is being amortized as a level percentage over the remaining amortization period, which at June 30, 2009 was 29 
years. 

-47-

COUNTY OF RUSSELL, VIRGINIA

NoTEs To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 18-Other Post-Employment Benefits-Health Insurance (continued)

D. Funded Status and Funding Progress (continued)

The funded status of the Plan for the School Board as of July 1, 2008, is as follows:

Actuarial accrued liability (AL) $ 3,755,059
Actuarial value of plan assets $ :
Unfunded actuarial accrued liability (UAL) $ 3,755,059
Funded ratio (actuarial value of plan assets / AL) 0.00%
Covered payroll (active plan members) $ 24,186,441
UAAL as a percentage of covered payroll 15.59%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probabilly of occurrence of events farin the future. Examples include assumptions about future employment, mortality,
and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future.

The schedule of funding progress, presented as required supplementary information following the notes to the financial
‘statements, will present multiyear trend information, as it becomes available, about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

E. Actuarial Methods and Assumptions:

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
‘employer and the plan members) and include the types of benefits provided at the time of each valuation and the
historical pattem of sharing of benefit costs between the employer and plan members to that point.

The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations,

In the July 1, 2008, actuarial valuation, the projected unit of credit actuarial cost method was used. Under this method,
future benefits are projected and the present value of such benefits is allocated from date of hire to date of eligibility the
actuarial assumptions included: inflations at 2.50 percent, plus productivity component of 1.25 percent, and investments
rate of return at 4.00 percent, and a health care trend rate of 10,00 percent graded to 5.00 percent over 8 years. The
UAALs being amortized as a level percentage over the remaining amortization period, which at June 30, 2009 was 29
years.

-47-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

JUNE 30, 2010 

Note 19-0ther Post-Employment Benefits-VRS Health Insurance Credit 

A. Plan Description 

The County participates in the Health Insurance Credit Program, a plan designed to assist retirees with the cost of 
health insurance coverage. This program is an agent and cost sharing, multiple-employer defined benefit plan 
administered by the Virginia Retirement System (VRS). The Virginia General Assembly establishes the dollar 
amount of the health insurance credit for each year of creditable service. The credit amount and eligibility differs for 
state, school division, political subdivision, local officer, local social services department and general registrar 
retirees. 

An employee of the County, who retires under VRS with at least 15 years of total creditable service under the System 
and is enrolled in a health insurance plan, is eligible to receive a monthly health insurance credit of $1 .50 per year of 
creditable service up to a maximum monthly credit of $45. However, such credit shall not exceed the health 
insurance premium for the retiree. Disabled retirees automatically receive the maximum monthly health insurance 
credit of $45. 

Benefit provisions and eligibility requirements are established by Title 51.1, Chapter 14 of the Code of Virginia. The 
VRS actuarially determines the amount necessary to fund all credits provided, reflects the cost of such credits in the 
applicable employer contribution rate pursuant to §51. 1-145, and prescribes such terms and conditions as are 
necessary to carry out the provisions of the health insurance credit program. VRS issues separate financial 
statements as previously discussed in Note 9. 

B. Funding Policy 

As a participating local political subdivision, the County is required to contribute the entire amount necessary to fund 
participation in the program using the actuarial basis specified by the Code of Virginia and the VRS Board of 
Trustees. The County's contribution rate for the fiscal year ended 2010 was 0.14% of annual covered payroll. 

C. OPEB Cost and Net OPEB Obligation: 

The annual cost of OPEB under Governmental Accounting Standards Board (GASB) 45, Accounting and Financial 
Reporting by Employers for Postemployment Benefits Other than Pensions, is based on the annual required 
contribution (ARC). The County is required to contribute the ARC, an amount actuarially determined in accordance 
with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, 
is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a 
period not to exceed thirty years. 

For 2010, the County's contribution of $996 was equal to the ARC and OPEB cost. The County's annual OPEB cost, 
the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010: 

Fiscal Annual Percentage Net 
Year OPEB of ARC OPEB 

Ending Cost (ARC) Contributed Obligation 
Primary Government: 

County 6/30/2010 $ 996 100.00% $ 

-48-

COUNTY OF RUSSELL, VIRGINIA

Notes To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 19-Other Post-Employment Benefits-VRS Health Insurance Credit

A. Plan Description

The County participates in the Health Insurance Credit Program, a plan designed to assist retirees with the cost of
health insurance coverage. This program is an agent and cost sharing, multiple-employer defined benefit plan
administered by the Virginia Retirement System (VRS). The Virginia General Assembly establishes the dollar
amount of the health insurance credit for each year of creditable service. The credit amount and eligibility differs for
stale, school division, political subdivision, local officer, local social services department and general registrar
retirees.

‘An employee of the County, who retires under VRS with at least 15 years of total creditable service under the System
and is enrolled in a health insurance plan, is eligible to receive a monthly health insurance credit of $1.50 per year of
creditable service up to a maximum monthly credit of $45. However, such credit shall not exceed the health
insurance premium for the retiree. Disabled retirees automatically receive the maximum monihly health insurance
credit of $45.

Benefit provisions and eligibility requirements are established by Title 51.1, Chapter 14 of the Code of Virginia. The
VRS actuarially determines the amount necessary to fund all credits provided, reflects the cost of such credits in the
applicable employer contribution rate pursuant to §51.1-145, and prescribes such terms and conditions as are
necessary to cary out the provisions of the health insurance credit program, VR& issues separate financial
statements as previously discussed in Note 9.

B. Funding Policy

As a participating local political subdivision, the County is required to contribute the entire amount necessary to fund
participation in the program using the actuarial basis specified by the Code of Virginia and the VRS Board of
Trustees. The County's contribution rate forthe fiscal year ended 2010 was 0.14% of annual covered payral

C. OPEB Cost and Net OPEB Obligation:

The annual cost of OPEB under Governmental Accounting Standards Board (GASB) 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other than Pensions, is based on the annual required
contribution (ARC). The County is required to contribute the ARC, an amount actuarially determined in accordance
with the parameters of GASB Statement 45, The ARC represents a level of funding that, if paid on an ongoing basis,
is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed thirty years,

For 2010, the County's contribution of $996 was equal to the ARC and OPEB cost. The County's annual OPEB cost,
the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010:

Fiscal Annual Percentage Net
Year OPEB of ARC OPEB
Ending Cost (ARC) Contributed Obligation
Primary Government:
County 6/30/2010 $ 996 100.0% $

-48-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS {CONTINUED) 
JUNE 30, 201 0 

Note 19-0ther Post-Employment Benefits-VRS Health Insurance Credit (continued) 

D. Funded Status and Funding Progress 

The funded status of the plan as of June 30, 2009, the most recent actuarial valuation date, is as follows: 

Actuarial accrued liability {AAL) $ 72,718 

Actuarial value of plan assets $ 60,586 

Unfunded actuarial accrued liability {UAAL) $ 12,132 

Funded ratio {actuarial value of plan assets/AAL) 83.32% 

Covered payroll (active plan members) $ 5,559,094 

UAAL as a percentage of covered payroll 0.22% 

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about 
the probability of occurrence of events far into the future and reflect a long-term perspective. Examples include 
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the 
funded status of the plan and the annual required contributions of the employer are subject to continual revision as 
actual results are compared with past expectations and new estimates are made about the future. 

The schedule of funding progress, presented as required supplementary information following the notes to the 
financial statements presents multi-year trend information about whether the actuarial value of plan assets is 
increasing or decreasing over time relative to the actuarial accrued liability for benefits. The projection of benefits for 
financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding 
limitations. 

E. Actuarial Methods and Assumptions 

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by 
the employer and plan members) and include the types of benefits provided at the time of each valuation and the 
historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial 
methods and assumptions used included techniques that are designed to reduce short-term volatility in actuarial 
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. 

The entry age normal cost method was used to determine the plan's funding liabilities and costs. The actuarial 
assumptions included a 7.5% investment rate of return, compounded annually, including an inflation component of 
2.5%, and a payroll growth rate of 3%. The UAAL is being amortized as a level percentage of payroll on an open 
basis. The remaining open amortization period at June 30, 2009 was 27 years. 

The remainder of this page is left blank intentionally. 

-49-

COUNTY OF RUSSELL, VIRGINIA

NOTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 19-Other Post-Employment Benefits-VRS Health Insurance Credit (continued)

D. Funded Status and Funding Progress

The funded status of the plan as of June 30, 2009, the most recent actuarial valuation date, is as follows:

Actuarial acerued liability (AL) $ 72,718
Actuarial value of plan assets $ 60,586
Unfunded actuarial accrued liability (UAL) $ 12,132
Funded rato (actuarial value of plan assets/AAL) 83.32%
Covered payroll (active plan members) $ 5,559,094
UAAL as a percentage of covered payroll 0.22%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future and reflect a long-term perspective, Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about the future.

The schedule of funding progress, presented as required supplementary information following the notes to the
financial statements presents multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing overtime relative to the actuarial accrued liability for benefits. The projection of benefits for
financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding
limitations.

E. Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used included techniques thal are designed to reduce short-lerm volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the caleulations.

The entry age normal cost method was used to determine the plan's funding liabilities and costs. The actuarial
assumptions included a 7.5% investment rate of return, compounded annually including an inflafion component of

2.5%, and a payroll growth rate of 3%. The UAAL is being amortized as a level percentage of payroll on an open
basis. The remaining open amortization period at June 30, 2009 was 27 years.

The remainder of this page is left blank intentionally.

-49-




COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30, 2010 

Note 19-0ther Post-Employment Benefits-VAS Health Insurance Credit (continued) 

F. Professional Employees- Discretely Presented Component Unit School Board 

The School Board participates in the Health Insurance Credit Program, a plan designed to assist retirees with the 
cost of health insurance coverage. This program is a cost sharing, multiple-employer defined benefit plan 
administered by the Virginia Retirement System (VRS). The Virginia General Assembly establishes the dollar 
amount of the health insurance credit for each year of creditable service. 

A teacher, who retires under VRS with at least 15 years of total creditable service under the System and is enrolled in 
a health insurance plan, is eligible to receive a monthly health insurance credit of $4 per year of creditable service. 
However, such credit shall not exceed the health insurance premium for the retiree. Disabled retirees automatically 
receive a monthly health insurance credit of $4 multiplied by the smaller of (i) twice the amount of their creditable 
service or (ii) the amount of creditable service they would have completed at age 60 if they had remained in service 
to that age. 

The School Board is required to contribute, at an actuarially determined rate, the entire amount necessary to fund 
participation in the program. The current rate is 1.04% of annual covered payroll. The School Board's contributions to 
VRS for the year ended June 30, 2010 was $22,459 and equaled the required contributions. 

Note 20-Reserved/Designated Fund Balance and Restricted Net Assets: 

Primary Government: 
Reserved for: 

Coal Road Fund 

Designated, Reported in: 
General Fund for: 
Honaker Library 
DARE Funds 
Sheriff Funds 
Sheriff Forfeited Assets 
Commonwealth Altorney's Forteiled Assets 
Library Dona lions 
Danle CDBG 
Damage Slamp 
Knox Coal Insurance 
Law Library 
Housing 

Tolal General Fund Designations 

Industrial Development Fund for: 
Industrial development 

Total Primary Government Designations 

-50-

$ __ .:,:1 ,5;,;,1 ;;.c4,:.;:13:.:,_4 

$ 76,716 
83,242 
41,341 
34,034 
49,049 
90,511 

165,676 
8,786 

234,538 
22,875 

7,361 

$ ___ 8"-'1-"4,,;,:12"-9 

$ __ _c1 •c::84:.;:6~,04::.::2c.. 

$ ---"'2'"-66:..:.0'-', 17;_;1_ 

COUNTY OF RUSSELL, VIRGINIA

NoTES To FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010

Note 19-Other Post-Employment Benefits-VRS Health Insurance Credit (continued)

F. Professional Employees ~ Discretely Presented Component Unit School Board

The Schoo! Board participates in the Health Insurance Credit Program, a plan designed to assist retirees with the
cost of health insurance coverage. This program is a cost sharing, multiole-employer defined benefit plan
administered by the Virginia Retirement System (VRS). The Virginia General Assembly establishes the dolar
amount of the health insurance credit for each year of creditable service.

Ateacher, who retires under VRS with atleast 15 years of total creditable service under the System ands enrolled in
a health insurance plan, is eligible to receive a monthly health insurance credit of $4 per year of creditable service.
However, such credit shall not exceed the health insurance premium for the retiree. Disabled retirees automaticaly
receive a monthly health insurance credit of $4 multiplied by the smaller of (i) twice the amount oftheir creditable
serviee or (i) the amount of creditable service they would have completed at age 60 if they had remained in service
to that age.

The School Board is required to contribute, at an actuarially determined rate, the entire amount necessary to fund
parlicipation in the program, The current rate Is 1.04% of annual covered payroll. The School Board!s contributions to
VRS for the year ended June 30, 2010 was $22,459 and equaled the required contributions.

Note 20-Reserved/Designated Fund Balance and Restricted Net Assets:

Primary Government:
Reserved for:
Coal Road Fund $ 1,514,134

Designated, Reported in:
General Fund for

Honaker Library $ 78718
DARE Funds 83,242
Sherif Funds 44,341
Sherif Forfeited Assets 34,034
Commonwealth Attomey’s Forfeited Assets 49,049
Library Donations 90,511
Dante CDBG 165,678
Damage Stamp 8,786
Knox Coal Insurance 234,538
Law Library 22,875
Housing 7,361
Total General Fund Designations $ 814,129
Industrial Development Fund for:
Industrial development $ 1,946,042
Total Primary Government Designations 8 2,660,171





COUNTY OF RUSSELL, VIRGINIA 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 
JUNE 30,2010 

Note 21-Restatement of Beginning Fund Balance/Net Assets: 

Primary Government 
Governmental Business-type 

Activities Activities 
Net Assets, as previously reported $ 19,432,909 $ 3,024,137 

Adjustments: 
Capital assets (8,01 0,246) (4,389) 

Accumulated depreciation 
Net Assets, as restated $ 11,422,663 $ 3,019,748 

The remainder of this page is left blank intentionally. 

-51-

Component Unit 

School Board 

$ 19,607,338 

149,465 

(15,377) 

$ 19,741,426 

COUNTY OF RUSSELL, VIRGINIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2010

Note 21-Restatement of Beginning Fund Balance/Net Assets:

Primary Government Component Unit
Governmental Business-type
Activities Activities ‘School Board

Net Assets, as previously reported = $ 49,432,909 _$ 3,024,137 $ 19,607,338
Adjustments:

Capital assets (8,010,246) (4,389) 149,465,

Accumulated depreciation - - (15,377)
Net Assets, as restated $ 11,422,663 $ 3,019,748 $ 19,741,426

The remainder ofthis page is lett blank intentionally

5h.




Required Supplementary Information 

Required Supplementary Information





Exhibit 11 
County of Russell, Virginia 

General Fund 
Schedule of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual 

For the Year Ended June 30, 2010 

Variance with 
Bud~eted Amounts Final Budget· 

Actual Positive 
Original Final Amounts (Negative} 

REVENUES 
General property laxes $ 11,856,409 $ 11,856,409 $ 12,841,457 $ 985,048 
Other local taxes 4,771,986 4,771,986 4,549,860 (222,126) 
Permits, privilege lees, and regulatory licenses 34,313 34,313 45,877 11,564 
Fines and forfeitures 1,000 1,000 1,049 49 
Revenue I rom the use ol money and property 100,000 100,000 61 '156 (38,844) 
Charges for services 260,317 260,317 281,276 20,959 
Miscellaneous 150,200 150,200 62,627 (87,573) 
Recovered costs 6,490,349 6,490,349 1,158,913 (5,331 ,436) 
Intergovernmental revenues: 

Commonwealth 6,009,970 5,888,672 7,457,973 1,569,301 
Federal 2,442,988 2,442,988 

Total revenues $ 29,674,544 $ 29,553,246 $ 28,903,176 $ (650,070) 

EXPENDITURES 
Current: 

General government administration $ 1,924,151 $ 2,023,957 $ 1,837,926 $ 186,031 
Judicial administration 2,236,896 2,293,301 2,213,724 79,577 
Public safety 4,600,754 4,717,644 4,100,376 617,268 
Public works 4,314,653 4,370,151 3,526,556 843,595 
Health and welfare 2,733,725 2,733,725 6,812,493 (4,078,768) 
Education 5,030,296 5,030,296 4,829,713 200,583 
Parks, recreation, and cultural 476,420 499,412 497,417 1,995 
Community development 4,101,443 3,289,240 1,557,445 1,731,795 
Nondepartmental 289,857 9,095 280,762 

Capital projects 3,794,205 3,794,205 2,418,799 1,375,406 
Debt service: 

Principal retirement 1,375,388 1,375,388 1,747,568 (372,180) 
Interest and olher fiscal charges 577,230 577,230 757,063 (179,833) 

Total expenditures $ 31,165,161 $ 30,994,406 $ 30,308,175 $ 686,231 

Excess (deficiency) of revenues over (under) 
expenditures $ (1 ,490,617) $ (1,441,160) $ (1 ,404,999) $ 36,161 

OTHER FINANCING SOURCES (USES) 
Transfers out $ (112,600) $ (162,057) $ (298,054) $ (135,997) 
Issuance of general obligation bonds 1,603,217 1,603,217 1,620,000 16,783 
Bond premium 129,582 129,582 
Issuance of capital leases 306,975 306,975 

Total other financing sources and uses $ 1,490,617 $ 1,441,160 $ 1,758,503 $ 317,343 

Net change in lund balances $ $ $ 353,504 $ 353,504 
Fund balances ·beginning 5,884,658 5,884,658 
Fund balances· ending $ $ $ 6,238,162 $ 6,238,162 

-52-

County of Russel, Virginia
General Fund
‘Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actuat

For the Year Ended June 90, 2010

Exhibit 11

REVENUES
‘General property taxes
Other local taxes
Permits, privilege fees, and regulatory licenses
Fines and friitures
Revenue from the use of money and property
Charges lor services
iscalzneous
Recovered costs
Infergovernmental revenues:

‘Commonwealth

Federal

Tolal revenues

EXPENDITURES.
Cutten:
‘General government administration
Jocicial administration
Public safoty
Public works
Health and welfare
Education
Pat, recreation, and cultural
Community development
Nondeparimental
Capital projects
Debt service:
Principal retirement
Interest and other fiscal charges
Total expenditures

Exc9ss (deficiency) ol revenues over (under)
expendiiures

OTHER FINANCING SOURCES (USES)
Transfers out
Issuance of general obigation bonds
‘Bond premium
Issuance of capital leases
Tolal other financing sources and uses

‘Net change In fund balances
Fund balances - beginning
Fund balances - ending

Budgeted Amounts

Actual
Original inal Amounts

$ 11,886,408 $§ 11,858.408 $§  12.841457 § 985,048

4719864771986 4,549,860 (222,128)

34313 34,318 4587 11566

4,000 4,000 4.049 49

100,000 100,000 61.156 (98.48)

2605317 280,317 281.276 20,959

150,200 150,200 62827 (67.573)

649049 6,480,948 1,158,913 (6,831,438)

6009970 5.888672 7,487,978. 4,569,301

- 2.442.988 2.442.988

3 Baris S wa SERRIE FS PH.903.176 $ (650.070)

$ 1.904151 $ 2023957 $ 1.997.926 $ 186,031

2238808 = 2,290,501 2.219,724 787

4600754 = 4.717844 = 4,100,576, 617,268

4314853 4,870,151 3,526,556 843,595

2793725 «2.733725 «6,812,498, (4.078.768)

91090,296 5080.28 4829719 200,583

476,420 499,412 497.417 1.995

4101443 9.289.240, 1.957.445 4,781,795

: 289,857 9.095 200,762

3.794205 3.794205 2,418,799 1.375.408

1,375,388 4,975,988 1,747,588 (372,180)

577,230 877.230 757.083 (179.839)

S_3i,165,161_§ 90,994,408 5 90,908,175 § 686.231

S__ (1.490617) S$ (1.441.160) $ (1,404,900) § 35,161

$ (112,600) $ (182057) $ (298.054) § (195,997)

1603.217 4608,217 4,620,000 16,783

: : 1293582 129,582

- - 308,975 308,975

5am SaaS 1 758.509 F 738,

8 “8 + $ 353.506 $ 959,504

: = 584,658 5,884,658

a = = 36,258,162 _§___ 6,238,162

52.




County of Russell, Virginia 
Special Revenue Fund • Industrial Development Fund 

Schedule of Revenues, Expenditures, and Changes in Fund Balances • Budget and Actual 
For the Year Ended June 30, 2010 

Bud~eted Amounts 
Actual 

Original Final Amounts 
REVENUES 
Revenue from the use of money and property $ $ $ 3,397 

Excess (deficiency) of revenues over (under) expenditures $ $ $ 3,397 

Net change in fund balances $ $ $ 3,397 
Fund balances- beginning 1,842,645 
Fund balances- ending $ $ $ 1,846,042 

-53· 

Exhibit 12 

Variance with 
Final Budget· 

Positive 
(Negative} 

$ 3,397 

$ 3,397 

$ 3,397 
1,842,645 

$ 1,846,042 

Exhibit 12
County of Russell, Virginia
Spocial Revenue Fund - Industrial Development Fund,
Schedule of Revenues, Expenditures, and Changes in Fund Balances « Budget and Actual
For the Year Ended June 30, 2010

Variance with
Budgeted Amounts
Actual Positive
Original Final Amounts Negative)

REVENUES

Revenue from the use of money and property $ 3 -$ 3307_$ 3397
Excess (deficiency) of revenues over (under) expenditures. $ -$ _$ 3397_$ 3,397.
Net change in fund balances $ -§ -$ 3397 $ 3,307
Fund balances - beginning ~ = 1,842,645 1,842,645,

Fund balances - ending ii =s 3186.04 $1845.08





County of Russell, Virginia 
Special Revenue Fund· Coal Road Fund 

Schedule of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual 
For the Year Ended June 30, 2010 

REVENUES 
Other local taxes 
Revenue from the use of money and property 

Total revenues 

EXPENDITURES 
Current: 

Public works 

Excess (deficiency) of revenues over (under) expenditures 

OTHER FINANCING SOURCES (USES) 
Transfers in 

Net change in fund balances 
Fund balances- beginning 
Fund balances- ending 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

-54-

Bud~eted Amounts 
Actual 

Original Final Amounts 

3,075,000 $ 3,075,000 $ 1,573,947 $ 
8,226 

3,075,000 $ 3,075,000 $ 1 ,582,173 $ 

3,075,600 $ 3,075,600 $ 1,964,876 $ 

(600) $ (600) $ (382,703) $ 

600 $ 600 $ $ 

$ $ (382,703) $ 
1,896,837 

$ $ 1,514,134 $ 

Exhibit 13 

Variance with 
Final Budget· 

Positive 
(Negative) 

(1 ,501 ,053) 
8,226 

(1 ,492,827) 

1,110,724 

(382,103) 

(600) 

(382,703) 
1,896,837 
1,514,134 

Exhibit 13
County of Russel, Virginia
Special Revenue Fund - Coal Road Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2010

Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original al Amounts (Negative
REVENUES
Other local taxes $ 3075000 $ 3.075.000 $ 1,573,947 $ (1,501,053)
Revenue from the use of money and property - - 8,226, 8,226
Total revenues 53075 000_S__ 3.075 000_F 1582173 F (1,492,827)
EXPENDITURES
Current:

Public works $3075.00 _$ 3,075.60 $__1,964876 $1,110,724
Excess (deficiency) of revenues over (under) expencitures $ (600) $ (600) $__ (982,703) $ (382,103)
OTHER FINANCING SOURCES (USES)

Transfersin $ 600_§ 600_$ $8 (600)
Net change in fund balances $ “8 = $ (382,703) $ (982,703)
Fund balances - beginning : : 4,896,837 11896,897

Fund balances - ending 5 _s — 31514394 1514, 134





County of Russell, Virginia 
Special Revenue Fund -Rental Assistance Fund 

Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual 
For the Year Ended June 30, 2010 

REVENUES 
Intergovernmental revenues: 

Commonwealth 

EXPENDITURES 
Current: 

Health and welfare 

Excess (deficiency) of revenues over (under) expenditures 

OTHER FINANCING SOURCES (USES) 
Transfers in 

Net change in lund balances 
Fund balances- beginning 
Fund balances- ending 

Budgeted Amounts 

$ 86,397 $ 

$ 86,397 $ 

$ $ 

$ $ 

$ $ 

$ $ 

-55-

86,397 $ 

94,391 $ 

(7,994) $ 

7,994 $ 

$ 

$ 

Actual 
Amounts 

37,617 $ 

94,441 $ 

(56,824) $ 

43,326 $ 

(13,498) $ 
13,498 

- $ 

Exhibit 14 

Variance with 
Final Budget­

Positive 
(Negative) 

(48,780) 

(50) 

(48,830) 

35,332 

(13,498) 
13,498 

‘Schedule of Revenues, Expe

County of Russell, Virginia
Special Revenue Fund - Rental Assistance Fund

res, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2010

Exhibit 14

REVENUES
Intergoveromental revenues:
Commonweath

EXPENDITURES.
Current
Health and welare

Excess (deficiency) of revenues over (under) expenditures

OTHER FINANCING SOURCES (USES)
Translrs in

Not change in fund balances
Fund balances - begining
Fund balances - ending

Variance with
Budgeted Amounts Final Budget -
Actual Positive

rina Final ‘Amounts (Negative
3 86397 es §  o7si7 8 (48,780)
S$ 86597 e4got $ o4aet_§ (50)
8 : (7.994) $_ (66,824) $ (48,890)
$ : 79% $4392 § 95,932
$ . = $ (13,498) $ (19,499),
- : 13.498 13498

z = =s 5 o





Exhibit 15 
County of Russell, Virginia 

Required Supplementary Information 

Schedules of OPEB and Pension Funding Progress 
For the Year Ended June 30, 2010 

Priimary Government 

County Retirement Plan: 

Actuarial Actuarial Unfunded Funded Ratio Annual UAAL as a 
Valuation Value of Accrued AAL (UAAL) Assets as% Covered %of Covered 

as of Assets Liability (AAL) 131·121 of AAL (21/131 Payroll Pa1roll (4)/(6) 
(1) (2) (3) (4) (5) (6) (7) 

June 30, 2009 $ 19,933,712 $ 23,803,518 $ 3,869,806 83,74% $ 5,559,094 69.61% 
June 30, 2008 19,979,433 22,063,871 2,084,438 90,55% 5,013,469 41.58% 
June 30, 2007 18,329,611 18,933,887 604,276 96.81% 5,121,001 11.80% 

County Other Postemployment Benefits-Health Insurance: 

Actuarial Actuarial Unfunded Funded Ratio Annual UAAL as a 
Valuation Value of Accrued AAL (UAAL) Assets as% Covered %of Covered 
as of(') Assets Liability (AAL) (3). (2) of AAL (211131 Payroll Pa1roll(41/(6) 

(1) (2) (3) (4) (5) (6) (7) 

July 1, 2008 $ $ 546,570 $ 546,570 0.00% $ 4,198,697 13.02% 

County Other Postemployment Benefits-VAS Health Insurance Credit: 

Actuarial Actuarial Unfunded Funded Ratio Annual UAAL as a 
Valuation Value of Accrued AAL (UAAL) Assets as% Covered %of Covered 

as of Assets Liability (AAL) (3)· (2) of AAL 121/131 Pa~roll Pa1roll (4)/(6) 
(1) (2) (3) (4) (5) (6) (7) 

June 30, 2009 $ 60,586 $ 72,718 $ 12,132 83.32% $ 5,559,094 0.22% 
June 30, 2008 75,699 132,923 57,224 56.95% 5,013,469 1.14% 
June 30, 2007 52,044 136,250 84,206 38.20% 5,121,001 1.64% 

Discretely Presented Component Unit: 

School Board Non-Professional Retirement Plan: 

Actuarial Actuarial Unfunded Funded Ratio Annual UAAL as a 
Valuation Value of Accrued AAL (UAAL) Assets as% Covered %of Covered 

as of Assets Liability (AAL) (3)· (2) of AAL (211131 Payroll Payroll (4)/(6) 
(1) (2) (3) (4) (5) (6) (7) 

June 30, 2009 $ 10,588,117 $ 14,751,035 $ 4,162,918 71.78% $ 2,878,696 144.61% 
June 30, 2008 10,678,577 13,994,136 3,315,559 76.31% 2,603,882 127.33% 
June 30, 2007 9,884,747 13,292,383 3,407,636 74.36% 2,477,872 137.52% 

School Board Other Postemployment Benefits-Health Insurance: 

Actuarial Actuarial Unfunded Funded Ratio Annual UAALas a 
Valuation Value of Accrued AAL (UAAL) Assets as% Covered %of Covered 
as of(') Assets Liability (AAL) 131· (2) of AAL (21/131 Payroll Payroll (4)/161 

(1) (2) (3) (4) (5) (6) (7) 

July 1, 2008 $ $ 3,755,059 $ 3,755,059 0.00% $ 24,186,441 15.53% 

·only one year available 

-56-

County of Russet, Viginia
Required Supplementary Information

‘Schedules of OPEB and Pension Funding Progress
For the Year Ended June 30,2010

Exhibit 1s

Primary Goveroment
County Retirement Plan:
Actuarial ‘Actual Uniinded Funded Rio Annual UMLasa
Veluaton Value of ‘Acctwod ——AAL(UAAL)-—Asse's 5% —Covarad— of Covered
ascot Assois__Uablly MAL) _@)+@)___ofAAL VQ) _Payrol_—_Payrot ay).
0) @ @) 4 ® @ o
june 30,2009 $ 19999,712 § 29009518 $ 3850806 BATE ©—«§ <SESBOD BETTE
sine 90,2002 19978438 «2089T! 208440890 55%, 5013489 «4158%
sjme0,2007 tggaget1 —1899,887 604778 988% BAZLO01 11.80%
(County Other Posterploymant Beefs Health Insurance
Actuarial Actual —-—«Unlunded-=—=— ‘Funded Ratio. Annual UaALasa
Vaan Value of Accrued AL (UAAL)-—Aselsas% Covered «=o Covered
asolf) Assets ___Liaity (MAL) _(@)-@)_—_oL AL (2/9) _Payrol_—_Payrot 6)
@ @ @ @ cy @ tt)
yt, 2008 S$ 545570 $ 54857 00H $4 1986071002%
‘County Cer Postenployment Benefis-VRS Heath nscance red
‘Actual Auaral Uniunded — Fundad Ratio Annual UaALasa
Vahiation Valve of Accuad AL (UAAL)-—Asselsas% © Covered-—«Ss of Covered
ascot Assets _Liaily (AL) _(S)-@) of AAL(2V(9),_Payeol_—_Pyrol 6)
o a i) @ @ ® a
June 90,2008 $ © «8088 «§ «TTB «$1252 BMH «$5889 05 ORTH
June 90,2008 75,690, 192928 S728 56.5% 5013489148
June 80, 2007 52.046 196280 84205 8.20% 5.121001 168%
Diseretely Presented Component Uni:
‘Schoo! Board Non Polesionl Retirement Pan
Aaluail ‘cual Unfunded “Funded Ratio’ Annual AKL
Valuation Value of ‘Accrued —«AAL(UAAL)-—ASselv 3% Covered. of Covered
asf Assels __ably (RAL) _(@)-2)_—_of AL (2619), _Payrol_—_Payrl (26)
a @ @ a @ @ a
une 90,2009 $ 10588,117 § 14751095 $.4,t62918 —TH.7B «$2,878,606 ada
vlne 80,2008 «10878577 «18,904,198 «3.815559 6.81 2803882 127.9%,
slune 30,2007 gee4ra7 19,200,989 307695 TA. 2ATTBI.—18782%
‘Schoo! Board Over PostemploymentBenelis Health insurance
elu ‘Actual Uniunded Funded Ratio Annual UMALas2
Valuation Value of ‘Acctued ——AAL(UAAL)-—Assais2s% Covered Sof Covered
asoiC) Assels__Uabéty (MAL) _@)-@) of AAL (243). _Paysoll__—_Payrl a6)
@) @ a) @ @ } a
shy 3.20088 $ 9785059 $.3755059 00K $24,641 «185

“Only one yer avaible

56-




Other Supplementary Information 

Other Supplementary Information





DISCRETELY PRESENTED COMPONENT UNIT- SCHOOL BOARD 

MAJOR GOVERNMENTAL FUNDS 

School Operating Fund- The School Operating Fund is a special revenue fund that 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. 

DISCRETELY PRESENTED COMPONENT UNIT - SCHOOL BOARD.

MAJOR GOVERNMENTAL FUNDS

‘Schoo! Operating Fund - The School Operating Fund is a special revenue fund that 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.




ASSETS 
Cash and cash equivalents 
Receivables (net of allowance 

Accounts receivable 
Due from other governmental units 

Total assets 

LIABILITIES AND FUND BALANCES 
Liabilities: 

Accounts payable 
Salaries payable 

Total liabilities 

Fund balances: 
Unreserved: 

Designated balances 
Total fund balances 

County of Russell, Virginia 
Balance Sheet 

Discretely Presented Component Unit- School Board 
June 30, 2010 

Total liabilities and fund balances 

Amounts reported for governmental activities in the statement of net assets (Exhibit 1) are different because: 

Total fund balances per above 

Capital assets used in governmental activities are not financial resources and, therefore, 
are not reported in the funds. 

Long-term liabilities, including early retirement incentives, are not due and payable in the current 
period and, therefore, are not reported in the funds. 

Net assets of governmental activities 

-57-

$ 

$ 

$ 

$ 

$ 
$ 
$ 

$ 

$ 

Exhibit 16 

School 
Operating 

Fund 

1,879,511 

82,221 
1 ,681 ,471 
3,643,203 

618,225 
980,529 

1,598,754 

2,044,449 
2,044,449 
3,643,203 

2,044,449 

17,808,434 

(1 ,064,578) 

18,788,305 

Exhibit 16

County of Russel, Virginia
Balance Sheet
Discretely Presented Component Unit - School Board
June 30, 2010
School
Operating
Fund
ASSETS
Cash and cash equivalents $ 4,879,511
Receivables (net of allowance
‘Accounts receivable
Due from other governmental units
Total assets 3
LIABILITIES AND FUND BALANCES
‘Liabilities:
‘Accounts payable $ 618,225
Salaries payable 960,529
Total liabilities: $ 4,598,754
Fund balances:
Unteserved:
Designated balances: $ 2,044,449
Total fund balances $ 2,044,449
Total iabilies and fund balances 5 3613,203

Amounts reported for governmental activites in the stalement of net assets (Exhibit 1) are different because:

‘Total fund balances per above $2,048,449
Capital assets used in governmental activities are no financial resources and, therefore,

are not reported inthe funds, 17,808,434
Long-term labile, including earty retirement incentives, are not due and payable in the current

period and, therefore, are not reported inthe funds. (1,064,578)
Net assets of governmental activities, 76,788,505

5T-




County of Russell, Virginia 
Statement of Revenues, Expenditures, and Changes in Fund Balances 

Governmental Funds . Discretely Presented Component Unit. School Board 
For the Year Ended June 30,2010 

REVENUES 
Revenue from the use of money and property 
Charges for services 
Miscellaneous 
Recovered costs 
Intergovernmental revenues: 

Local government 
Commonwealth 
Federal 

Total revenues 

EXPENDITURES 
Current: 

Education 

Excess (deficiency) of revenues over (under) 
expenditures 

Net change in fund balances 
Fund balances· beginning 
Fund balances· ending 

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 

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. 

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 net assets of governmental activities 

-58-

Exhibit 17 

School 
Operating 

Fund 

$ 1,500 
717,272 
230,840 
573,948 

4,782,213 
26,283,660 
7,634,140 

$ 40,223,573 

$ 41,018,862 

$ (795,289) 

$ (795,289) 
2,839,738 

$ 2,044,449 

$ (795,289) 

(17,183) 

(140,649) 

$ (953, 121) 

Exhibit 17
County of Russell, Virginia
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds - Discretely Presented Component Unit- School Board
For the Year Ended June 30, 2010

School
Operating
Fund

REVENUES:
Revenue from the use of money and property $ +1500
Charges for services 7272
Miscellaneous: 230,840
Recovered costs 573,948
Intergovernmental revenues:

Loca government 4782213,

Commonwealth 26,283,660

Federal 7,834,140

Total revenues 40,223,573

EXPENDITURES
Curent

Education $ 41,018,862
Excess (deficiency) of revenues over (under)

expenditures (795,269)
Net change in fund balances $ (796,289)
Fund balances - beginning 2,839,738,

Fund balances - ending

Amounts repotted for governmental actives in the statement of acts (Exhibit 2) are diferent because:
‘Net change in fund balances - total governmental funds - per above $ (795,289)
Governmental funds report capital outlays as expenditures. However, in the statement of

~2ctvtes the cost of those assets is allocated over thelr estimated useful ives and reported

‘as depreciation expense. This is the amount by which the capital outlays exceeded depreciation in

the current peso. (17,183)

Some expenses reported in the statement of activites do not require the use of current
financial resources and, therefore are not reported as expenditure in governmental funds. (140,649)

Change in net assets of governmental activities

~58-




County of Russell, Virginia 
Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual 

Discretely Presented Component Unit- School Board 

REVENUES 
Revenue from the use of money and property 
Charges for services 
Miscellaneous 
Recovered costs 
Intergovernmental revenues: 

Local government 
Commonwealth 
Federal 

Total revenues 

EXPENDITURES 
Current: 

Education 

Excess (deficiency) of revenues over (under) 
expenditures 

Net change in fund balances 
Fund balances- beginning 
Fund balances- ending 

For the Year Ended June 30, 2010 

School Operating Fund 

Budgeted Amounts 
Original Final Actual 

$ 50,318 $ 50,318 $ 1,500 $ 
791,844 791,844 717,272 
152,046 152,046 230,840 
414,642 414,642 573,948 

4,982,796 4,982,796 4,782,213 
28,227,545 28,250,045 26,283,660 
8,565,005 9,477,329 7,634,140 

$ 43,184,196 $ 44,119,020 $ 40,223,573 $ 

$ 43,184,196 $ 44,119,020 $ 41,018,862 $ 

$ $ $ (795,289) $ 

$ $ $ (795,289) $ 
2,839,738 

$ $ $ 2,044,449 $ 

-59-

Exhibit 18 

Variance with 
Final Budget 

Positive 
(Negative) 

(48,818) 
(74,572) 
78,794 

159,306 

(200,583) 
(1 ,966,385) 
(1 ,843, 189) 
(3,895,447) 

3,100,158 

(795,289) 

(795,289) 
2,839,738 
2,044,449 

Exhibit 18
County of Russell, Virginia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Discretely Presented Component Unit - Schoo! Board
For the Year Ended June 30, 2010

School Operating Fund
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from the use of money and property 8 50318 § 50,318 § 1,500 $ (48,818)
Charges for services 791,844 791,844 717,272 (74572)
Miscellaneous 152.046 152,046 230,840 73,798
Recovered costs 414642 414,642 573,948 159,306
Intergovernmental revenues:
Local government 4,982,796 4,982,798 4.782.213 (200,583)
‘Commonwealth 28,227,585 28,250,045 26,283,660 (1,986,385)
Federal 8,565,005 9,477,328 7,634,140 (1,843,189)
Tolal revenues 5 4104.16 F44,119020 F  40,223.573 F (3.805.447)
EXPENDITURES
Curent
Education $43,184,198 $ _44,119.020 $ 41,018,862 § 3,100,158

Excess (deficiency of revenues over (under)

expenditures $ _$ -$ (795,289) $___ (795,268)
Net change in fund balances: § +8 “$8 (795,289) $ (795,289)
Fund balances - beginning : - 2,839,738. 2,839,738
Fund balances - ending g _$ = S204 SF 2,084,449





Supporting Schedules 

Supporting Schedules





County of Russell, Virginia Schedule 1 
Schedule of Revenues· Budget and Actual Page 1 of 6 

Governmental Funds 
For the Year Ended June 30,2010 

Variance wi!h 
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 Tax $ 5,317,663 $ 5,317,663 $ 6,229,645 $ 911,982 
Real and Personal PSC Tax 1,410,000 1,410,000 1,583,060 173,060 
Personal Property Tax 2,468,279 2,468,279 2,056,106 {412,173) 
Mobile Home Tax 109,737 109,737 105,965 {3,772) 
Machinery and Tools Tax 1,535,941 1,535,941 1,556,747 20,806 
Merchants Capital 34,789 34,789 26,942 {7,847) 
Mineral Tax 830,000 830,000 929,918 99,918 
Penalties 50,000 50,000 135,593 85,593 
Interest 100,000 100,000 217,481 117,481 

Total general property taxes $ 11,856,409 $ 11,856,409 $ 12,841,457 $ 985,048 

Other local taxes: 
Local Sales and Use Tax $ 1,831,492 $ 1,831,492 s 1,839,057 $ 7,565 
Consumers' Utility Tax 594,960 594,960 593,616 (1,344) 
Consumption Taxes 85,333 85,333 95,363 10,030 
Franchise License Tax 18,443 18,443 
Coal Severance Tax 1 ,820,021 1,820,021 1,606,851 {213,170) 
Grantee tax 115,180 115,180 85,307 {29,873) 
Motor Vehicle Licenses 325,000 325,000 295,866 {29,134) 
Taxes on Recordation and Wills 15,357 15,357 

Total other local taxes s 4,771,986 $ 4,771,986 $ 4,549,860 $ (222,126) 

Permits, privilege fees, and regulatory licenses: 
Animal licenses $ 1,000 $ 1,000 s 1,515 $ 515 
Transfer fees 750 750 793 43 
Building permits 32,000 32,000 37,358 5,358 
Other permits and other licenses 563 563 6,211 5,648 

Total permits, privilege fees, and regulatory licenses $ 34,313 $ 34,313 $ 45,877 $ 11,564 

Fines and forteitures: 
Court fines and forteitures $ 1,000 $ 1,000 $ 1,049 $ 49 

Revenue from use of money and property: 
Revenue from use of money $ 100,000 $ 100,000 $ 61,156 $ 138,844) 

Charges for services: 
Charges for law enforcement and traffic control $ 25,000 $ 25,000 $ $ {25,000) 
Charges for Commonwealth's Attorney 1,500 1,500 2,052 552 
Miscellaneous jail and inmate fees 3,156 3,156 
District court fees 3,045 3,045 
Clerk's collections 852 852 
Charges for sanitation and waste removal 164,155 164,155 188,585 24,430 
Charges for library 33,617 33,617 10,313 {23,304) 
Courthouse maintenance fees 6,045 6,045 6,855 810 
Courthouse security fees 36,794 36,794 
Cannery charges 30,000 30,000 28,897 {1,103) 
Other charges for services 727 727 

Total charges for services $ 260,317 $ 260,317 s 281,276 $ 20,959 

-60-

County of Russell, Virginia Schedule 1

‘Schedule of Revenues - Budget and Actuat Page 1 of6
Governmental Funds
For the Voor Ended June 30,2010
Variance with
Final Budget -
Originat Fal Positive
Fund, ior and Ninor Revenue Source Budget Budget Atul ‘edative)
General Fund:
Fevenue fem cal souces:
‘General propary taxes:
Fea Properly Tax S 5317883 § 517883 §  G2R8I5 § — sT1982
Real and Personal PSC Tax 1,410,900 19001 809}080 173080
Personal Property Tax 2asegTs 2488279 2,058,108. ast)
Mobile Home Tax 109,797 105,985 g7n}
Machinery and Tools Tax 153511556747 20.806
Merchares Capital 24,709, 25342 aa)
Mawal Tax 20,000 ag.aie 99818
Perales 0,000 195593 85590
Intros 100,00, 217A 117888
ola gener! property exes F1as509§__11555.409 6 Tesi as _§ 585046
ther orl teres
Local Seles and Use Tax S$ 1B1es2 § 1891892 8 1eaK087 8 7585
(Consumer Uy Tax 594.960, 384860 593516 (34a)
Consumption Taxes 85,388 85,059 95,968, 10090
Franchise Lense Tex - - 19483
(Coal Severance Tax genet 120021108851 (213,170)
Geant ax 118,160 115,180 85,07 (29870)
Molo Vehicle Licenses 825,000 25,000 235,066, (29,138)
exes on Recoraton and Wits - - 18357 1537
Total cites cal taxes SSS ara SAGO See es)
Permits, pvage fees, and regulatory lenses:
‘nial lconses s 1000 $ 1900 § 1515 8 515
Transer fees 750 750 793 3
Bulking permits 32000 32000 a7ss6 5958
(Other perms and othe oensos 358 583 batt 508
Total perms, privilege fees, and regulatory lenses Saas Sass Sa
Fes and foratues
Court nes and foroturos 3 4,000 $ 1000 $ 1988 8, mn
‘Revenue rem use of manoy and popery:
avenue kom use of money S$ 1oo.000 § 00009 $6158 $___isag4e)
Charges or sarvies:
‘Chargas fo iaw onforemant and vate cont S 25000 § 25.000 $ $
CChargas for Coronas Attorney 1500 1500 2062
isceleneous jal and inmate fees : : 5358
Dist court eas : - 3.045,
ters colectons : 152
Charges or saraaton and waste removal 164,355, 168,155 188 95
‘Charges oc ibrary 23617 39817 19313 (es.a0e)
Courtouse maintenance foes 604s 5015 8.855, B10
Gouthouse sunt ees : - 35,708 95794
‘Camary charges 30,000, 30000, 2eeo7 (1109)
Other charges tor sonices - - 727 27
Talal charges for senices FS

-60-




County of Russell, Virginia Schedule 1 
Schedule of Revenues- Budget and Actual Page 2 of 6 

Governmental Funds 
For the Year Ended June 30, 2010 

Variance with 
Final Budget· 

Original Final Positive 
Fund, Major and Minor Revenue Source Budge! Budget Actual (Negative) 

General Fund: (Continued) 
Revenue from local sources: (Continued) 

Miscellaneous revenue: 
Sale of maps, ordinances $ $ $ 202 $ 202 
Donations 14,814 14,814 
Miscellaneous other 150,200 150,200 8,911 (141,289) 
Sale of property/surplus 38,700 38,700 

Total miscellaneous revenue $ 150,200 $ 150,200 $ 62,627 $ (87,573) 

Recovered costs: 
Housing Fund s s $ 2,043 $ 2,043 
Telephone 4,223 4,223 
Extradition expense 1,875 1,875 
Recovered Cost - Social Services 20,000 20,000 430,353 410,353 
Recovered Cost - Health Department 42,407 42,407 137,231 94,824 
Recovered Cost- Tax Collections 121,295 121,295 8,700 (112,595) 
Recovered Cost- Sheriff 4,500 4,500 92,959 88,459 
Insurance recoveries 41,376 41,376 
Restitution 4,161 4,161 
Recovered Cost • Alcohol Safety 323,366 323,366 4,880 (318,486) 
Recovered Cost • Regional Jail 70,737 70,737 
Recovered Cost • Workforce Investment 3,017,264 3,017,264 265,050 (2,752,214) 
Recovered Cost· Swords Creek 261,517 261,517 (261,517) 
Recovered Cost - Industrial 2,700,000 2,700,000 94,951 (2,605,049) 
Other Recovered Costs 374 374 

Total recovered costs $ 6,490,349 $ 6,490,349 $ 1,158,913 $ (5,331 ,436) 

Total revenue from local sources $ 23,664,574 $ 23,664,574 $ 19,002,215 $ (4,662,359) 

Revenue from the Commonwealth: 
Noncategorical aid: 

ABC profits $ 29,000 $ 29,000 $ $ (29,000) 
Wine taxes 30,000 30,000 (30,000) 
Motor vehicles carriers' tax 115,862 111,734 (4,097) (115,831) 
Mobile home titling tax 122,000 122,000 100,228 (21,772) 
Motor vehicle rental lax 2,445 2,445 
Communications tax 966,384 966,384 901,430 (64,954) 
State recordation tax 18,914 17,828 28,442 10,614 
Personal property tax relief act funds 1,299,170 1,299,170 1,437,003 137,833 

Total noncategorical aid $ 2,581 ,330 $ 2,576,116 $ 2,465,451 $ (110,665) 

Categorical aid: 
Shared expenses: 

Commonwealth's attorney 231,426 $ 223,172 $ 303,360 $ 80,188 
Sheriff 1,185,044 1,130,793 1,199,750 68,957 
Commissioner of revenue 133,741 131,302 147,635 16,333 
Treasurer 138,408 135,788 118,496 (17,292) 
Medical examiner 400 400 (400) 
Registrar/electoral board 67,670 65,340 46,621 (18,719) 
Clerk of the Circuit Court 279,961 274,392 243,565 (30,827) 
Total Shared Expenses $ 2,036,650 $ 1,961,187 $ 2,059,427 $ 98,240 

Other categorical aid: 
Victim witness grant $ 22,222 $ 22,222 $ $ (22,222) 
E911 Grant 94,170 94,170 73,832 (20,338) 
School resource officer 29,586 29,586 
GIS 27 27 
Law enforcement grants 1,300 1,300 
Asset forfeiture funds 70,620 70,620 

-61-

County of Russel, Virginia Schedule 4

Schedule of Revenues - Budget and Actual Page 20f6
Governmental Funds
For the Year Endod June 30,2010
Variance with
Final Budget -
Original Final Positive
f and Minor Hever Budget Budaet Actual (Mesativel
‘General Fund: (Continued)
verve tamloca sources: (Continued)
Mscaaneous venue:
‘Sale ol maps, ordinances 8 8 5 202 §
Donations : : tape
‘Misealaneous eter 180200 150200 89it
Sale of propertyisuphs - : 33.700,
Toil miscslaneous reverue 5S 0
‘Recovered costs:
Housing Fund 8 “8 “8 20s 2088
“Teaphone : : 4203, 4223
Esration expense - 1.875 1875
Facavered Cost - Socil Servioes 20.000 20000 490.58, 410353,
Recavered Cost Hells Deparment 22407 42407 137231 94,824
Fecavered Coat Tax Coletions 121298 121295 700 (112586)
Recovered Cost Seti 4500, 4500 92.958 an.
Insurance recoveries : : 41376
Restiuton : 4161 438
Recovered Cost Alc! Salty 823.966 23.358 4500 (916,486)
Recovered Cost Rion ei : 20,737 Tore
Recovered Cost - Workiorce Investment spi72es 3.017264 265.000 (BT82.214)
Recovered Cost- Swords Crk 281517 261817 : (81517)
Recovered Cost: Indust 2qooe 2,700,000, 4961 (2,605,049)
Other Recovered Costs : - 3m Ba
Toll covered costs ES EY A RSTICES
Total venue fom cal sources S$ rosssrs § 23604574 $ 190.215 § (4,652.50)
everue ram tha Coneoniveath
Noncstegorcal at
ABC profs $ 29000 8 28000 § 8 3000)
Wine tres 30,000, 30,000, : (0.000
Motor vehicles cari tex 115.862 111794 (soe) (115,834),
abil oie lng tax 122,000 122,000 100,228 (e177)
tor vericerrtal ax : 25
‘Communications tex 965,284 986,904 901,490, (e4a5e)
Slate recordation ax 19914 17828 28.842 10814
Personal popary iat ot act ands 1208170 1.280,170 4,447 008, 197833
Tota nancategre! ed T2s81880 F576 116 5 Fito 865)
Categorical i
‘Sharad expenses:
‘Commonseaits atomoy paige § 223,172 § © 08980 $B
Sheri 1188.044 1.190798 1,198,750 8957
‘Commissioner a revenue 195,741 131/308 147835 19809
Treasurer 136,408 135,788 118496 728)
Nodal examiner ‘400 00 : (400)
Fegisharfletoral boa erg70 65,340 48621 (719)
Clk ofthe Cet Cout 279.961 274360 243.565, (07)
Toll Sates Expenses T2065 ST eei.ta7_ 8205047 “F 96200
Other categorical it
Vier winess grant Sue § apes = $ — @azza)
Ett Grant 9470, 94170 73982 (20.208)
‘Schoo resoues oer : 23.506 29588
os : 2 7
Law enforcement rants : 1300 1.300
Asset foreture funds : 70820 70820




County of Russell, Virginia Schedule 1 
Schedule of Revenues· Budget and Actual Page 3 of6 

Governmental Funds 
For the Year Ended June 30, 2010 

Variance with 
Final Budget-

Original Final Positive 
Fund. Major and Minor Revenue Source Budget Budget Actual fNegatfvel 

General Fund: (Continued) 
Revenue from the Commonwealth: (Continued) 

Categorical aid: (Continued) 
Other categorical aid: (Continued) 

EMS grants $ 12,000 $ 12,000 $ 28,646 $ 16,646 
Fire Program Funds 35,000 35,000 68,078 33,078 
library grants 77,691 74,213 81,639 7,426 
Litter control grants 13,500 13,500 11,017 (2,483) 
Clerk of the circuit court grants 109,500 109,500 4,892 (104,608) 
Public assistance 440,383 438,766 1,444,378 1,005,612 
Comprehensive services act 583,524 547,998 1,058,407 510,409 
Other categorical aid 4,000 4,000 60,673 56,673 
Total other categorical aid $ 1,391,990 $ 1,351 ,369 $ 2,933,095 $ 1,581,726 

Total categorical aid $ 3,428,640 $ 3,312,556 $ 4,992,522 $ 1,679,966 

T o\al revenue from the Commonwealth $ 6,009,970 $ 5,888,672 $ 7,457,973 $ 1,569,301 

Revenue from the federal government: 
Calegorical aid: 

CDBG grants $ $ $ 244,084 $ 244,084 
ARRA • Violence against women 27,093 27,093 
Violence againsl women 19,530 19,530 
ARRA • Justice assistance grant 72,946 72,946 
Library grant to states 4,000 4,000 
Emergency management grants 65,361 65,361 
DMV ground transportation safety grant 3,720 3,720 
Public assistance 1,954,041 1,954,041 
ARRA ·Public assislance 52,213 52,213 

Total categorical aid $ $ $ 2,442,988 $ 2,442,988 

Total revenue from the federal government $ $ $ 2,442,988 $ 2,442,988 

Total General Fund $ 29,674,544 $ 29,553,246 $ 28,903,176 $ 1650,0701 

Special Revenue Funds: 
Industrial Development Fund: 
Revenue from local sources: 

Revenue from use of money and property: 
Revenue from the use of money $ $ $ 3,397 $ 3,397 

Total Industrial Development Fund $ $ $ 3,397 $ 3,397 

Coal Road Fund: 
Revenue from local sources: 

Other local taxes: 
Coal road taxes $ 3,075,000 $ 3,075,000 $ 1,573,947 $ 11,501,0531 

Revenue from use of money and property: 
Revenue from the use of money $ $ $ 8,226 $ 8,226 

Total revenue from local sources $ 3,075,000 $ 3,075,000 $ 1,582,173 $ 11,492,8271 

Total Coal Road Fund $ 3,075,000 $ 3,075,000 $ 1 ,582,173 $ 11,492,8271 

-62-

County of Russel Virginia

Schedule 1

Schedule of Revenues - Budget and Actual Page 3of6
‘Governmental Funds.
For the Year Ended June 30,2010
Variance with
Final Budget -
Original Final Positive
Fund. sor and liner Revenue Sour Budgst user Actual (iegativ)
General Fund: (Continued)
Feverue om he Conrrorwet: (Coninued)
‘Celogocal ald (Continua)
‘her celgorical ait (Continued)
ENS grants $ 12000 1200 $ BMS S$ TOR
Fe Program Funds 35,000, $5,000, ea078 33078
brary rants T7691 4213 81839 7428
ter conto grants 19500 13500 n017 (2.489)
Clerk ofthe cout court ants 109.500 109500, (104608)
Public assistance 40.368 498,768 4,006,612
CComprenensivesevies act 589.524 S478 9,066,407 510.409
thar categorical ad 00, 4000 60678 5873
Toll other categorical aid S__Awei.9e0 STG, 968_S 2005 Sra
Toll catogorcal id S_saenoun § 3.912885 $ __agensee § 1.670085
Tota revenue rom the Commonwaath S__so0ag70 § _sgensre $ 7457973 $ 1569301
avenue fom the federal government
Categorical ait
(0086 grants 8 - 3 magose $ — 2a488
-ARRA-Vllence agains! women : 27098, 27.088
Vilance agains! women : 193590 19380
ARRA..usice assistance grant : 7298 7288
Una gantio states : 400 4000
Emergency management grants : 65,361 65.61
‘ON ground tranporation salty gran : 3720 3720
Pobic assistance sigstas; 9581
ABR - Pub assistance 52219 52.218
Total celepoial aid = 3 2i.se8 = 2.908
Totlsevenue frm he federal government $ 2 $ gavage § _ 24v2.9H8
Total General Fund S$ wonsis § _295ss246 § _26008,178 $650,070)
Special Revenue Funds:
Industrial Development Fund:
venue fom local sources:
Revenue kom use ol maney and pope
Revenue fromthe use of monay 8 : 8 3397 §__g9o7
otal instal Daelopment Fund $ 8 37 § 9987
(Coat Red Fund:
‘Revenue fom local sources:
‘ther ocala:
(Coal road axes S$ 3075.000 $ 3.075.000 $ 1573947 §_(1.501,059)
venue fr use of maney and property:
Fevenue fom the use of money 8 13 ame $ 8276
Total venue cm local sources S$ ___3075,000 $ _3076.000 $__1502173 §__ (1490827)
ola Goal Red Fund $075,000 § _3ovs0n0_$_1552173 $ (1490827)

62-




County of Russell, Virginia Schedule 1 
Schedule of Revenues· Budget and Actual Page 4 of 6 

Governmental Funds 
For the Year Ended June 30, 2010 

Variance with 
Final Budget· 

Original Final Positive 
Fund. Major and Minor Revenue Source Budget Budget Actual {Negative) 

Special Revenue Funds: (Continued) 
Rental Assistance Fund: 
Revenue from the Commonwealth: 

Categorical aid: 
Rental Assistance Grants $ 86,397 $ 86,397 $ 37,617 $ 148,7801 

Total Rental Assistance Fund $ 86,397 $ 86,397 $ 37,617 $ 148,7801 

Total Primary Government $ 32,835,941 $ 32,714,643 $ 30,526,363 $ 12,188,2801 

Discretely Presented Component Unit· School Board: 
Special Revenue Funds: 
School Operating Fund: 
Revenue from local sources: 

Revenue from use of money and property: 
Revenue from the use of money $ 48,278 $ 48,278 $ $ (48,278) 
Revenue from the use of property 2,040 2,040 1,500 15401 

Total revenue from use of money and property $ 50,318 $ 50,318 $ 1,500 $ 148,8181 

Charges for seNices: 
Cafeteria sales $ 682,214 $ 682,214 $ 572,373 $ (109,841) 
Tuition payments 6,213 6,213 
Drivers Ed fees 14,000 14,000 10,860 (3,140) 
Other charges for seNices 10,000 10,000 (10,000) 
Regional Adult Education 75,630 75,630 124,070 48,440 
GED Testing fees 10,000 10,000 3,756 16,2441 

Total charges for seNices $ 791,844 $ 791 ,844 $ 717,272 $ 174,5721 

Miscellaneous revenue: 
Other miscellaneous $ 152,Q46 $ 152,046 $ 230,840 $ 78,794 

Recovered costs: 
Insurance recoveries $ $ $ 65,173 $ 65,173 
Extra duties revenue 23,000 23,000 40,299 17,299 
FAPT reimbursememts 30,240 30,240 8,400 (21,840) 
Dual Enrollment 200,000 200,000 268,242 68,242 
Consortium Clerical 
Sale of Vocational House 22,000 22,000 32,000 10,000 
Sale of Equipment and Supplies 20,000 20,000 8,308 (11,692) 
Reimburse Health SeNices 45,000 45,000 55,300 10,300 
Other recovered costs 74,402 74,402 96,226 21,824 

Total recovered costs $ 414,642 $ 414,642 $ 573,948 $ 159,306 

Total revenue from local sources $ 1,408,850 $ 1,408,850 $ 1,523,560 $ 114,710 

Intergovernmental revenues: 
Revenues from local governments: 

Contribution from County of Russell, Virginia $ 4,982,796 $ 4,982,796 $ 4,782,213 $ 1200,5831 
Total revenues from local governments $ 4,982,796 $ 4,982,796 $ 4,782,213 $ 1200,5831 

Revenue from the Commonwealth: 
Categorical aid: 

Share of state sales tax $ 3,206,345 $ 3,206,345 $ 3,063,177 $ (143,168) 
Basic Aid 15,607,438 15,607,438 13,996,053 (1,611 ,385) 
Remedial summer education 224,793 224,793 195,264 (29,529) 
Regular foster care 14,809 14,809 11,287 (3,522) 
Gifted and talented 145,833 145,833 144,234 (1,599) 
Remedial education 486,111 486,111 480,780 (5,331) 
Enrollment loss 118,373 118,373 

-63-

‘County of Russel, Virgina
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Vear Ended June 9, 2010,

Variance with
Final Budget -
Original Final Positive
Fund Maior and Minor Revenve Source Bucget Budget ‘Actual (Negative
‘Special Revenue Funds: (Continued)
Rental Assistance Fund:
Fevenue fom the Conerenwlt
Calagorical ai
Renta sistance Grants S__me997 § maga7 set §_48,700)
etl Rental Assistance Fund S$ 86307 §m97 ss aners 40.700)
ola Prinery Government S_soaassu1_§ 2714643 § 90596953. § (2.188.200)
Diseretely Presented Component Unit- School Board:
Special Revenue Funds:
School Operating Fund:
Revenue fom acl sources:
Revenue ton use of maney and propery
‘Revenue tom tha use of money S827 $ aaeTa § -$ 49278)
Revenue orn uso of property 2.040 2040 4,500 (640)
Talal revue rom use of ney and propery yo hoses sass 7.5003 (asia)
Charges for senives:
Calor sales S  esazre § © eozia $ © -sIzaT9-§—((10aAN)
Tuiton payments . : 6213 5213
Drivers Ea fans 1400 10360 (14g)
Other charges lor servis 10900 10,000)
Regional Aduk Education 75620 124070 48.440
GED Testng fees 3756 (6244)
“otal charges for services 5 LEE

Miscellaneous revenue

‘Other miscellaneous $1529 § 152046 §  zmpauo § _7a7a
Recovored costs:
Insurance reooveres $ 8 <8 65173 $65,173
Extra dts revenue 25000 23,000 40288 17298
APT reimbursements 80240 20200 8400 21,880)
ual Enralimant 200,000 200,000 a0 242 e322
CConseium Clerical : : : :
Sala of Vocational House 22000 22.000 2000 10900
Sale of Equipment end Supplies 20,000 79,000 8.08 (5,632)
eenburse Health Senicas 45,000 45,000 55.300 10300
Other recovered costs 74402 7402 965.206 2108
“ota raovered costs Sse gage T_ Sra S 188 06
“otal revenue ram cal sources S$ 1aoegso § _ 14ogaso $ 1529560 § 114710

lnleqgovernecial revenues:
Fevenues rom al governments

‘Contibuen rom County of Fuss, Vigra S__don.705 § 4.900796 § 4780213 $ (gone)
Total cevonves fom ical govermanis §_hgse.705_$49ea 798 $_AyeazIC $ (00583)

Revenue fro bv Cormmonneat:

Categorical ak

‘Share of slate sales tax S 9208885 $ 306385 § —306m,177 $40,168)
Basic Aid 15607498 15607498 13,898,059 —_1,811.225)
Remedial summer edvaton 724,708 224,788 195,254 (29528)
Regular foster care +4300 14309 11287 (522)
(Ged and talented 145899, 145,898 a2 (1598),
‘emodal educafon 486,111 485111 -o,7e0 1)
Envoleent oes 118378 118373

63-




County of Russell, Virginia Schedule 1 
Schedule of Revenues • Budget and Actual Page 5 of 6 

Governmental Funds 
For the Year Ended June 30, 2010 

Variance with 
Final Budget • 

Original Final Positive 
Fund. Major and Minor Revenue Source Budget Budget Actual !Negative) 

Discretely Presented Component Unit· School Board: (Continued) 
Special Revenue Funds: (Continued) 
School Operating Fund: (Continued) 
Intergovernmental revenues: (Continued) 
Revenue from the Commonwealth: (Continued) 

Categorical aid: (Continued) 
Special education s 1,963,890 $ 1 ,963,890 $ 1,942,352 $ (21,538) 
Textbook payment 384,094 384,094 174,118 (209,976) 
Career and Technical Education 61,788 61,788 31,127 (30,661) 
Alternative education 771,602 771 ,602 800,809 29,207 
Elementary Alternative Education 2,500 2,500 
Algebra readiness 72,038 72,038 64,643 (7,395) 
Mentor teacher program 4,898 4,898 4,449 (449) 
Social security fringe benefits 894,445 894,445 884,636 (9,809) 
Group life 32,407 32,407 22,436 (9,971) 
Retirement fringe benefits 1,153,704 1,153,704 855,789 (297,915) 
Early reading inleNention 60,756 60,756 60,756 
Adult Education 6,338 6,338 36,160 29,822 
Homebound education 81,332 81,332 92,478 11,146 
Vocation education 525,000 525,000 604,098 79,098 
Advanced placement incentive 78 78 
At risk payments 587,708 587,708 570,190 (17,518) 
Primary class size 675,277 675,277 658,098 (17,179) 
Technology 400,000 400,000 340,067 (59,933) 
Jobs for Virginia Graduates 22,500 43,498 20,998 
Indus!!)' Certification Costs 8,739 8,739 
At risk four·year olds 427,734 427,734 465,755 38,021 
School Food 24,002 24,002 32,138 8,136 
School construction 294,486 294,486 (294,486) 
GED prep programs 15,717 15,717 96,193 80,476 
Lotte!)' payments 370,041 370,041 
Tobacco Commission 20,000 20,000 5,309 (14,691) 
Adult literacy 85,000 85,000 102,000 17,000 
Special education· foster care 6,035 6,035 

Total categorical aid $ 28,227,545 $ 28,250,045 $ 26,283,660 $ 11 ,966,385) 

Total revenue from the Commonwealth $ 28,227,545 $ 28,250,045 $ 26,283,660 $ 11 ,966,385) 

Revenue from the federal government: 
Categorical aid: 

Basic Adult Education $ 453,160 $ 453,160 $ 250,726 $ (202,434) 
Title I 1,568,477 1,568,477 1 ,336,604 (231 ,873) 
ARRA· Title I 448,400 448,400 295,710 (152,690) 
Special Education 1,048,208 1,048,208 913,016 (135,192) 
ARRA • Special Education 446,297 446,297 390,652 (55,645) 
Title VI·B, preschool 36,198 36,198 (36,198) 
ARRA ·Title VI·B, preschool 15,029 15,029 35,825 20,796 
Vocational education 101,391 101,391 101,391 
Drug free schools 23,834 23,834 5,005 (18,829) 
School Food Program 1,031,129 1,031,129 1,229,829 198,700 
ARRA. School Food Program Equipment 30,300 30,318 18 
Fresh fruit and vegetable program 7,704 6,674 (1,030) 
WIA youth activities 11,197 11,197 
WIA adult activities 57,000 57,000 
Title II 327,208 327,208 334,477 7,269 
Even start 357,733 357,733 233,098 (124,635) 

-64-

County of Russel Virginia Schedule 1
‘Schedule of Rvenues - Budget and Actus] Page 5 0f6
Goveramental Funds
For the Voor Endod June 30,2010

Variance with
Final Budget -

Original Fiat Positive

Fund Hajar and tinge source Busoet Budgot Setual {Negative

Diseretely Presented Component Unit - School Board: (Continued)
Special Rovenue Funds: (Continued)
School Operating Fund: (Continued)
Intergovernmental revenues: (Continosd)
Feverue rom the Comnonveat: (Cortinued)
Categorical ait: (Continued)

‘Spectl education S 19899800 § tags § (21838)
Textoook payment 384,094 174,18 (202.76)
Career and Tocizal Eduction 81,788 3107 (90.551)
‘erat education Tiga 00,808 29207
Elementary Ateroalve Educallon : 2500, 2500
‘Ageba readiness 72038 e848 (7998)
Menlo teacher program 4998 4469 (949)
‘Sovilsecuy fing benefits andes 84,696 (9.209)
‘Goop lite 2407 407 22638 (e971)
Fesrementrnge benefits 4153708 1,383,704 955,788, 237815)
Eatly acing iterention 60758 80.786, 0,758 :
Adult Education 6398 6936 35,160, 2g
Homnebound edeaton 81.02 81,382 e278 11148
Vocation edueaton 25,000 26,000 e098 088
Advanced placement incentive : % 8
Attic payments 587,708 87,708 570,390 (7518)
Primary class size ersar 675,277 650,008 (779)
Technology 400,000 400,000 (69383)
obs for Vigiis Graduates : 22.500, 20.998
Industry Cedieaton Costs : : 3730
‘Asik foueyear ods e778 27796 aaoat
Schoo! Food 24002 24.002 8,186
School contruction 2306 254.486 (236 488)
{GED prop programs 187 1817 5 90476
Lotery payments . 70.41 S701
“Tobacco Commission 20,000 20,000 5308 114831)
Aauititeacy 5,000 85,000 102,00 17900
‘Special education foster owe : - 6.035, 8.035,

otal categorical ld SCTE AEBSO NE 8 PRR GHD_S 11965.565)

Teal evenue om the Conenenwlth 820227845 § 2m250,045 § 26280600 § (1.966.805)

Revenue tom he federal goverment
Categorical i

Basic Aduit Education S 459160 § 453,160 $5075 §
Tale 1siear7 4865477 106,804 (231,873)
ARRA-Tilo| "48,400 “49,400 295,710 (152660)
‘Special Education 1.048208 1,048,208 sr9.018 135,192)
APRA - Spoil Education 488.297 48,287 an0.2 (65,8585)
Tie WB, preschoo! 8198 36,188 : (65.198)
ARR. Tile VB, preschoo! 15023 15/009 25,805 20796,
\Voratonal education 101391 101,991 101391 -
Drug te schoo 2354 25,884 5,005, (18.08)
Scio! Food Program 031,129 101,128 ,209820 198,700
ARRA.- School Foed Program Equipment - 30,300 90.18 8
Fresh ul and vegetable progtam 7704 8574 (1,00)
‘WMA youth actives - : 11,97 tis7
Wt adult aves - : 37,000, 57.000
Tee # 27208 37208 sudan? 7258
Even stat 357738, 957758, 256.008 128835)

64-




County of Russell, Virginia Schedule 1 
Schedule of Revenues- Budget and Actual Page 6 of 6 

Governmental Funds 
For the Year Ended June 30,2010 

Variance with 
Final Budget -

Original Final Positive 
Fund. Major and Minor Revenue Source Budget Budget Actual INegativel 

Discretely Presented Component Unit- School Board: (Continued) 
Special Revenue Funds: (Continued) 
School Operating Fund: (Continued) 
Intergovernmental revenues: (Continued) 
Revenue from the federal government: {Continued) 

Categorical aid: (Continued) 
21st century grant $ 952,181 $ 1,826,501 $ 985,091 $ (841,410) 
ARRA ·State fiscal stabilization funds 1,695,268 1,695,268 1,203,591 (491 ,677) 
Learn and serve america 22,709 22,709 24,150 1,441 
Rural and low income schools 22,355 22,355 
Reading first grant 57,056 57,056 
REMS 64,067 64,067 
ARRA . Educational technology 19,750 19,750 
Educational technology 37,783 37,783 26,558 (11,2251 

Total categorical aid $ 8,565,005 $ 9,477,329 $ 7,634,140 $ 11,843,189) 

Total revenue from the federal government $ 8,565,005 $ 9,477,329 $ 7,634,140 $ 11,843,189) 

Total Discretely Presented Component Unit- School Board $ 43,184,196 $ 44,119,020 $ 40,223,573 $ p,895,4471 

-65-

‘County of Russel, Virginia Schedule 1
Schedule of Revenues - Budget and Actual Page 6 of6
‘Governmental Funds
For the Veer Ended June 30,2010

Variance with
Original Final
Fund, alo Budget Budaet Actual
Diseretely Presented Component Unit School Board: (Continued)
Special Revenue Funds: (Continued)
‘School Operating Fund: (Continued)
Infegovernmental revenues: (Continued)
Fevenve fom te federal govement (Conte)
Categorical al: (Continued)
2s century grant S 962181 § 1826501 $ BBO § © feATAIO
[ARR Slate tcl sabiization funds 1995,268 4,209,581 (991.877)
eam and serve america 22708 24,150 test
Fura and low nce schools : 22.55 2285
eading tt grant : 57058, 57.058,
Rens - : 64.067 e067
[ARR Educational technology 19780 19,750
Evcatona technology 3778, 37,788 26556 1225)
Total celegorical aid EBs 005 §__Gari.ges §_7esa tao Ses, f09)
Total venue rom h federal goverment $9586.00 § 9477929 $ 7604140 $ _(1.848,169)
ola Discretly resanied Component Uni: School Board 845,184,105 $44,119,000 § 4020573 $_(3805,447)





County of Russell, Virginia Schedule 2 
Schedule of Expenditures· Budget and Actual Page 1 of4 

Governmental Funds 
For the Year Ended June 30, 2010 

Variance with 
Final Budget-

Original Final Positive 
Fund. Function. Activity and Element Budget Budget Actual (Negative) 

General Fund: 
General government administration: 

Legislative: 
Board of supervisors $ 214,297 $ 276,045 $ 270,259 $ 5,786 

General and financial administration: 
County administrator $ 392,579 $ 393,357 $ 520,604 $ (127,247) 
Independent auditor 66,395 100,334 63,834 36,500 
Commissioner of the revenue 298,423 298,423 300,417 (1,994) 
Real estate assessor 153,115 153,115 60,033 93,082 
Real estate assessment 50,000 50,000 50,000 
Treasurer 387,977 387,977 366,556 21,421 
Auto decals 37,350 37,350 24,209 13,141 
Data processing 115,338 115,338 73,789 41,549 

Total general and financial administration $ 1,501,177 $ I ,535,894 $ I ,409,442 $ 126,452 

Board of elections< 
Electoral Board $ 89,407 $ 92,748 $ 59,388 $ 33,360 
General Registrar 119,270 119,270 98,837 20,433 

Total board of elections $ 208,677 $ 212,018 $ 158,225 s 53,793 

Total general government administration $ I ,924,151 $ 2,023,957 $ I ,837,926 $ 186,031 

Judicial administration: 
Courts: 

Circuit Court s 114,147 $ 114,147 $ 104,157 $ 9,990 
General District Court 16,200 16,200 10,938 5,262 
Special Magistrates 15,400 15,400 8,881 6,519 
Probation Office 131,800 137,907 136,711 1,196 
Clerk's Office 385,589 385,589 354,632 30,957 
Sheriff Civil and Court 1,084,304 I ,115,428 1,127,786 (12,358) 
Law Library 5,299 5,299 

Total courts $ I ,747,440 $ I ,784,671 $ I ,748,404 $ 36,267 

Commonweallh's attorney: 
Commonweallh's Attorney $ 467,234 $ 477,284 $ 433,630 $ 43,654 
Victim Witness Grant 22,222 31,346 31,690 (344) 

Total commonwealth's attorney s 489,456 $ 508,630 $ 465,320 $ 43,310 

Total judicial administration $ 2,236,896 $ 2,293,301 $ 2,213,724 $ 79,577 

Public safety: 
Law enforcement and traffic control: 

Sheriff $ I ,653,393 $ I ,656,452 $ I ,427,985 $ 228,467 
Dare program 4,275 5,244 2,250 2,994 

Total law enforcement and traffic control $ I ,657,668 $ I ,661,696 $ I ,430,235 s 231,461 

Fire and rescue services: 
Volunteer Fire Departments $ 242,391 $ 242,391 $ 329,612 $ (87,221) 
Ambulance Rescue Squad 170,575 218,424 218,423 1 

Total fire and rescue services s 412,966 $ 460,815 $ 548,035 $ (87,220) 

Correction and detention: 
Operation of Jail $ 1,249,255 $ 1,312,218 $ 1,248,253 $ 63,965 

Inspections: 
Building inspector $ 147,274 $ 147,274 $ 106,385 $ 40,889 

-66-

County of Russel Vigna Schedule 2
‘Schedule of Expenditures - Budget and Actual Pago 1 of 4
Governmental Funds
For the Vear Ended June 30,2010
Variance with
Final Budget -
Origins! Final Positive
Fund, Function, Astivty ang Element Budget Budget Actual (iegatve)
General Fund:
General ovement adninisaton
Legiatve
Board of supanisors S$ 214207 § __27ou § amas § 588
General and thanciat acninistation:
County acinistrlor S$ — gaas7e § sagas § senso § (127247)
Independant auctor 06,295, 100.394 e304 35500
Commissioner ofthe revenue 298.428, 298,428 moan (1334)
Fel esol assessor 186,15 153,15 60,088, 53.082
eal ese assessment 50,000, 50,000, : 50,000,
Treasurer asrar 987977 558 21a
to cacais 37.350 37.360, 24.208 ‘gai
Data processing 115338 115.538 73.709 41549
otal generl and fiscal adinisaton Tigo? Ss oaeS__taoee Si a82
Board ol eecons
Electoral Board $s saaar § sora $ — s9g00 $83,360
‘General Register 119270 119270 96697 20.408
Toll bord of alecions FS
‘Totl general goverment eeinistaion S$ 1924151 § 2003957 § 137928 $ 166031
udisil driniston
outs:
Creuit Court S47 8 tte § 10487 § 9990
Gonoral Distt Court 18200 16200 19993 5262
Special Maicteles 15400 18400 88st bod
Probation Oice 1313800, 137807 186,711 1198
lets Otoe 35,509 365,589 20387
‘Sharif Chal and Court 1,088:304 1115428 (12,358)
Lavubrey, - : (5299)
Total courts eS __ eT S Ga
CCommonweatisatomey:
‘Commonweal’ Alomey S 48724 Ss aTTZEA § «aa 8 ABBE
Vieim Winess Grant 22202 31348 31,690 (94a)
Toll commonweathsatorney S565 50,690 Fes 220-10
Total ji administraton S 2296565 § 2200901 § azi37a¢ § _TaSTT
Pub stety:
Law enforcement and ec onto
Shetit $ 1853903 $ 1656852 § 1427995 § © ROEAET
Dare progr 4275, 5286 2250, 2934
Talla forcement and tac contol FSSA ITE
Fe andrascue sences:
Voluntoe: Fre Dopartnonts $ — 2azgor § —ategar $= meaI2 $67 Z2N)
Ambulance Rescue Squad 570875 2igaze 718,23, i
Toa fro androscue senices FS 7A EZ
‘Conteton an detention:
Operatcn oft S$ 1249255 § _1gizgie § 1249259 § _saoes
Inspections:
Bulg inpactor S$ vurgma go aig7 $10.85 § 40889

-68-




County of Russell, Virginia Schedule 2 
Schedule of Expenditures- Budget and Actual Page 2 of4 

Governmental Funds 
For the Year Ended June 30, 2010 

Variance with 
Final Budget -

Original Final Positive 
Fund, Function. Activity and Element Budget Budget Actual lNeqativel 

General Fund: (Continued) 
Public safety: (Continued) 

Other protection: 
Forestry Service $ 10,048 $ 12,098 $ 12,098 $ 
Enhanced 911 535,539 535,539 541,569 {6,030) 
Medical Examiner 1,750 1,750 580 1,170 
Emergency Services 112,363 112,363 73,202 39,161 
Animal Control 150,525 150,525 121,589 28,936 
Animal Shelter 18,430 {18,430) 
Alcohol Safety Action Program 323,366 323,366 323,366 

Total other protection $ 1,133,591 $ 1,135,641 $ 767,468 $ 368,173 

Total public safety $ 4,600,754 $ 4,717,644 $ 4,100,376 $ 617,268 

Public works: 
Sanitation and waste removal: 

Landfill $ 1,825,782 $ 1,825,782 $ 1,716,105 $ 109,677 
Refuse collection 1,345,000 1,345,000 968,272 376,728 
Litter Coordinator 73,301 73,301 66,379 6,922 

Total sanitation and waste removal $ 3,244,083 $ 3,244,083 $ 2,750,756 $ 493,327 

Maintenance of general buildings and grounds: 
General properties $ 1,070,570 $ 1,126,068 $ 775,800 $ 350,268 

Total public works $ 4,314,653 $ 4,370,151 $ 3,526,556 $ 843,595 

Health and welfare: 
Health: 

Health Department $ 399,994 $ 399,994 $ 352,407 $ 47,587 

Mental health and mental retardation: 
Cumberland Mountain Community $ 47,500 $ 47,500 $ 58,912 $ j11,412) 

Welfare: 
Health and welfare $ 167,941 $ 167,941 $ 68,135 $ 99,806 
Social services 406,506 406,506 4,510,312 {4,103,806) 
Comprehensive Services Act 783,188 783,188 1,372,707 {589,519) 
Appalachian Agency for Senior Citizens 90,920 90,920 88,624 2,296 
Lebanon Speech and Hearing 11,400 11,400 11,400 
Workforce Investment Act 826,276 826,276 349,996 476,280 

Total welfare $ 2,286,231 $ 2,286,231 $ 6,401,174 $ j4,114,943) 

Total health and welfare $ 2,733,725 $ 2,733,725 $ 6,812,493 $ j4,078,768) 

Education: 
Other instructional costs: 

Contributions to County School Board $ 4,982,796 $ 4,982,796 $ 4,782,213 $ 200,583 
SVCC Contribution 47,500 47,500 47,500 

Total education $ 5,030,296 $ 5,030,296 $ 4,829,713 $ 200,583 

Parks, recreation, and cultural: 
Parks and recreation: 

Recreation Park $ 101,748 $ 110,650 $ 105,511 $ 5,139 

Library: 
Public Library $ 374,672 $ 388,762 $ 391,906 $ j3,144) 

Total parks, recreation, and cultural $ 476,420 $ 499,412 $ 497,417 $ 1,995 

-67-

County of Russel, Viginia.

‘Schedule 2

‘Schedule of Expencitures - Budget and Actual Page 2 of 4
‘Governmental Funds
For the Year Ended June 30,2010
Vviance wth
Final Budget
original Final Positive
Fund, Function, Aetity and El Budt Budget rl Negative
ube efety: (Continued)
(ier preiecion
Forestry Senice 8 100K § 12008 $ 12088 §
Enhanced 911 535,509 535,508 541.568
oaieal Examiner 1750 1750 560
Energency Senices 112353, 112369, 73.202
rina Conte 150525, 160525 121588
‘nival Seller : - 18490
‘lohalSaaty Acton Progam 323.366 09,988 :
Total othe peotoxson Ease, SLs SES
ola pui safety $_4sua7sa §__a7i7gad §  ato0g7e § 617268
Pubic wort:
Serilation ad waste mova
Landi S 1925780 § 1805782 § 1,716,108 $ TORT?
Reuse ooledtion 4,848,000 11345}000, ‘972 376,728
Utler Coordinator 73.201 73201 66,579 8922
Total sanalon and waste removal 3 Sps0e5 SSpuaoasy §__a7e0.756 SUNT
Neietenance of general bulings ane ground:
‘General properies $_soros7o s 1126088 $ 775900 $§ __s60288
ota pi works $_43i4653 § _ag7oJst $ _9526555 § 843595
Health and wellare
Heath:
Health Departnent $g0a904 $ so.904 §asato7 sar sa?
‘Mental heath and mental retardation:
‘Cumbariand Mountain Corerunity S 47500 § argo $ saga $—_tttata)
Wille:
Healt and wore S  te7gH Stare § 68,98 $ © Sg808
Social sevens 405,506, 406508 4st0.s12 (108806)
Compretensive Senices Act 733,188, 799.168 1,972,107 (689519)
Appalacian Agency fox Senior Citzans 0920 80.900 99.626 2298
Lebanon Speech and Heating 11400 11,400 11400 -
Weortorce vestment Al 626.076 826.276, 149.98 476.200,
ola wolare EBzee aS apeb aS Hao Seta
‘Teel heath and wore S__2703725 § 2750725 § 6812409 $ (4,078,768)
Edveaon
‘ther nsrstnal cost:
Contains to County Soe! Board S 4982798 § 4980798 $ © a7BaeIs $ 200889
VCC Contouten 47.500, 47500, 47500 -
Toll education 5 smeo.ze6_S_——Soa0 296 Fame 719 Fa
Parks eceaton, and ctr
Parks and ocean:
Feceaton Park $ 101748 § tosses sesh $8198
Lay
Public bray $s74g7e § 88.762 § 1g SB.
Total parks, reseaton and cultural $476.00 § waar sears? 8 1.885

67-




County of Russell, Virginia Schedule 2 
Schedule of Expenditures· Budget and Actual Page3of4 

Governmental Funds 
For the Year Ended June 30,2010 

Variance with 
Final Budget· 

Original Final Positive 
Fund. Function. Activity and Element Budget Budget Actual !Negative) 

General Fund: (Continued) 
Community development: 

Planning and community development: 
Planning Commission $ 40,700 $ 56,699 $ 53,046 $ 3,653 
Community Development 486,840 726,211 170,372 555,839 
Industrial Development Authority 3,239,250 2,156,980 433,615 1,723,365 
PSA Contributions 360,000 {360,000) 
Cumberland Plateau 35,000 35,000 35,000 
Regional Housing 15,000 15,000 183,820 {168,820) 
Highway Safety Commission 2,500 2,500 1,935 565 
Canneries 98,404 113,101 165,217 {52,116) 
Tourism 79,282 79,282 54,211 25,071 

Total planning and community development $ 3,996,976 $ 3,184,773 $ 1,457,216 $ 1,727,557 

Environmental management: 
Soil and Water Conservation $ 31,215 $ 31,215 $ 30,715 $ 500 

Cooperative extension program: 
VPI Extension $ 73,252 $ 73,252 $ 69,514 $ 3.738 

Total community development $ 4,101,443 $ 3,289,240 $ 1,557,445 $ 1.731,795 

Nondepartmental: 
Nondepartmental $ $ 289,857 $ 9,095 $ 280,762 

Capital projects: 
Water projects $ $ $ 44,016 $ (44,016) 
Other capital projects 2,190,988 2,190,988 50,911 2,140,077 
School projects 1,603,217 1,603,217 2,323,872 (720,655) 

Total capital projects $ 3,794,205 $ 3,794,205 $ 2,418,799 $ 1,375,406 

Debt service: 
Principal payments $ 1,375,388 $ 1,375,388 $ 1,747,568 $ {372,180) 
Interest Expense 577,230 577,230 757,063 (179,833) 

Total debt service $ 1,952,618 $ 1,952,618 $ 2,504,631 $ (552,013) 

Total General Fund $ 31,165,161 $ 30,994,406 $ 30,308,175 $ 686,231 

Special Revenue Funds: 
Coal Road Fund: 
Public Works: 

Maintenance of highways, streets, bridges and sidewalks: 
Maintenance of highways, streets, bridges and sidewalks $ 2,500,600 $ 2,500,600 $ 1,398,241 $ 1,102,359 
Virginia coalfield 575,000 575,000 566,635 8,365 

Total Public Works $ 3,075,600 $ 3,075,600 $ 1,964,876 $ 1,110,724 

Total Coal Road Fund $ 3,075,600 $ 3,075,600 $ 1,964,876 $ 1,110,724 

Rental Assistance Fund: 
Health and Welfare 

Welfare 
Rental Assistance $ 86,397 $ 94,391 $ 94,441 $ (50) 

Total Rental Assistance Fund $ 86,397 $ 94,391 $ 94,441 $ (50) 

Total Primary Government $ 34,327,158 $ 34,164,397 $ 32,367,492 $ 1,796,905 

-68-

County of Russel, Virginia Schedule 2

Schedule of Expenditures - Budget and Actual Page 3 of
‘Governmental Funds
For the Year Endod June 30,2010
Variance with
Final Budget -
Original Final Positive
Fund, Function, Activity and Element Budget Burlaet ‘Actual (ogatve)
General Fund: (Continued)
Community development:
Planaing and comunity dveloprent
Planing Comission s 40700 spe $580 $9,650
Comma Develoenent 486,000 reat s70372 555,558,
Indstl Development Authosty 9259,250 2,156,980 495615 1723.88,
PSR Contiutons . : 80,000, (50,000)
CCunberané Plateau 25,000, 35,000
Regional Housing 15,000 183820 (168,820)
Fightay Safety Commission 2500 1905 65
Carneros v13.to1 185217 (62,116)
Tourism 73282 sa2it 25.074
Toil planning and community development Sseeears SSeS Saw Sz SST
Envormantl management
‘Soil and Water Conservation $___sizis $ g12i5 $ aot 8 00
(Cooperative extension program:
VPI Extension $1525 § 73282 $ _easid § 9798
Tota community d2elopment $4101.03 §  gzmo240 § 16744 $1,731,795
Nondeparmentl
Nendepartntl 8 _ 8 29657 § goss $2076
Cail projets:
Witer projects 8 “8 same §
‘Other capa pojacts 2,190 988 2,190,088 Sogn
Schoo! projets 1,903.217 ieog217 2823.72 (720,686)
“ota capil projets F_ 3 794206 S704, 205 8 2418,799 1.975405
Debt sence
nepal payments S 1975988 § 1975288 § © 4747.568 $ (672,180)
Interest Expanse 577.220, 577290 "757,063. (79839)
Total det sone 3 iesasie S 19261 Fass S201
Toll Ganeral Fund $._31165,161_ $ 90904406 $ 90908175 $ __885251
Special Revenve Funds
(Coal Road Fund:
ube Wor
Vaintenance of highways, sets, bridges and stews
Naintenance of highways, sees, bidges and sdewalis $ 2500600 § 2500600 $ sagem § —1,100;859
Vegi coatild 575,000, 575,000, 508,595, 8.965
Total Pub Works $__Bors.500~§ "Gore, a00§ Toe gre ST .res
Total Coal Road Fund $075,800 $  go7s.go0 $984.76 § 1,110,724
Rental Assistance Fun
Heath and Wolre
Wetere
ental Acsistanca Seeger season § sates (50)
Toll Penll Assistance Fund S___sss7 $___osgot§__gatt (50)
Total Peary Government S_s4927.158 § _94,164597 $__s2ge74ve_$ 1.796905

-68-




County of Russell, Virginia 
Schedule of Expenditures- Budget and Actual 

Governmental Funds 
For the Year Ended June 30, 2010 

Fund. Function. Activity and Element 
Original 
Budget 

Discretely Presented Component Unit- School Board: 
Special revenue funds: 
School Operating Fund: 
Education: 

Administration of schools: 
Administration and health seNices 

Instruction costs: 
Instructional costs 
Technology 

Total instruction costs 

Operating costs: 
Pupil transportation 
Operation and maintenance of school plant 
Food seNice and non-instructional 
Facilities 

Total operating costs 

Total Discretely Presented Component Unit- School Board 

$ 1,436,872 $ 

$ 30,624,098 $ 
553,690 

$ 31,177,788 $ 

$ 2,938,074 $ 
5,704,064 
1,917,398 

10,000 
$ 10,569,536 $ 

$ 43,184,196 $ 

-69-

Final 
Budget 

1,436,872 s 

31,520,918 $ 
553,690 

32,074,608 $ 

2,938,074 $ 
5,704,064 
1,955,402 

10,000 
10,607,540 $ 

44,119,020 $ 

Schedule 2 
Page 4 of4 

Variance with 
Final Budget­

Positive 
(Negative) 

1,342,400 $ 

29,594,301 $ 
546,654 

30,140,955 $ 

2,477,431 $ 
4,989,085 
1,956,085 

112,906 
9,535,507 $ 

41,018,862 $ 

94,472 

1,926,617 
7,036 

1 ,933,653 

460,643 
714,979 

(683) 
(102,906) 

1,072,033 

3,100,158 

69-

County of Russel, Vigna Schedule 2
Schedule of Expenditures - Budget and Actual Page dof
Governmental Funds
For the Year Ended June 0, 2010
Voriance with
Fisal Budget
Original Fal Positive
Fund, Function, Activity and Element Budget Busaet Actual Negative
Discretely Presented Component Unit - School Boar
‘Special revenue funds:
School Operating Fune:
Education:
‘Aislin of schools
Adniisvalin and hea senices 696 872 1assgre $ _1g4e.c00 $94.72
Instruction ents
Insrvetona costs sng2dons $ s1s20918 $ 2950401 $ 1926817
Tecnology $59,600, 553,600 546,554 7958
Talal insrution cosis Bi,i77 788 8 “wera g0e FH. osss STR.
Operating costs
ug ransporation 2aceore 2oseore §  2a7Tasl $ 480813.
(Operation and erintenance of schoo plant 5704066 57rodoca——4.89,005, n4g7a
Food sence and nom nstuctonal 11917,398 1985.40 ‘1,858,095 (683)
Facies 10.00, 10.000, 114,608 02,908)
Tolal operating costs THses,595 S —TOso7 sao S$ SH5 507 _§_ 072 000,
“TotelOiscretly Presented Component Unt - School Board 49184196 _§ _44.119000 §419rgss2 $9,100,158





Other Statistical Section 

Other Statistical Section





.:_, 
'? 

General 
Fiscal Government Judicial 
Year Administration Administration 

2009-10 $ 1,828,631 $ 2,219,866 $ 
2008-09 1,706,342 2,243,005 
2007-08 1,411,595 2,070,008 
2006-07 1,465,480 1,710,751 

(1) Information has only been available for 4 years . 

County of Russell, Virginia 
Government-Wide Expenses by Function 

Last Ten Fiscal Years (1) 

Parks, Interest 
Public Public Health and Recreation, Community on long· Service 

Table 1 

Safety Works Welfare Education and Cultural Development Term Debt Authority Total 

4,234,145 $ 
4,013,947 
4,025,383 
3,667,580 

5,549,934 $ 
6,055,397 
5,386,506 
2,867,007 

6,070,091 $ 
5,982,456 
5,395,294 
4,880,408 

5,897,486 $ 
5,471,573 
4,508,131 
3,884,301 

560,735 $ 
541,087 
433,946 
477,515 

1,491,257 $ 
4,826,721 
5,549,375 
3,246,100 

728,202 $ 
758,753 
827,965 
852,493 

434,552 $ 
407,145 
388,949 
422,425 

29,014,899 
32,006,426 
29,997,152 
23,474,060 

“0

County of Russel

eine

Goverriant Wide Expenses by Function
Last Ten Fiscal Years (1)

Table

Genera Pat letrest,
Focal Government studi Poblc ube Heath and eceeation, Community on Long Seniee
Yost Amnon __ Admission __ Salty orks Wetiare Edveaion __ardGultwal___Developmert__TormDaot___Autosty Teal
2009-10 ieeessr $  2zigee0 $ 599894 § — GOTOOR SS 887.KE5 § — SHOTS $1025 § Ta ROD § —aa4sse 29014899
2008-08 170812 248,005, 6055387 5.90488 5471873, 541067 4006,721 7se753aOT148 2006 428
2007.08 1411595 2orooos == 4na5.363 5.556508 5.395.206 4508,131 455908 55103375 ears 8,848 29,997,152
2006.07 1485 480 1710751 3687580 2887,007 g00,400 3,884,201 47sis——8246,100 a52493 22,005 23,474,060

(1) Infomation has ony boon avalble for yeas




.!_, 
~ 

' 

Fiscal 
Year 

2009-10 $ 
2008-09 
2007-08 
2006-07 

PROGRAM REVENUES 

Charges 
for 

Services 

393,362 $ 
481,092 
505,428 
527,092 

Operating 
Grants 

and 
Contributions 

7,473,127 $ 
7,376,521 
7,780,609 
8,235,960 

(1) Information has only been available for 4 years. 

Capital 
Grants 

and 
Contributions 

County of Russell, Virginia 
Government-Wide Revenues 

Last Ten Fiscal Years (1) 

GENERAL REVENUES 

Other Unrestricted 

Grants and 
Contributions 
Not Restricted General 

Property 
Taxes 

Local Investment to Specific 

$ 13,004,381 $ 
12,889,357 
12,279,583 

Taxes (2) Earnings Miscellaneous Programs (2) 

2,465,451 $ 
1,771,674 

802,191 13,239,976 

6,123,807 $ 
7,779,265 
7,976,046 
5,467,574 

106,848 $ 
153,807 
529,827 
808,979 

173,322 $ 
346,880 
55,649 

252,756 
1 ,711 ,485 
1,881 ,802 

(2) 2009-10 is the first year State Communications tax is classified as grants and contributions not restricted to specific programs . 

Table 2 

Total 

29,740,298 
30,798,596 
30,838,627 
31,216,330 

be

County of Russell, Virgt

Government-Wide Revenues
Last Ten Fiscal Years (1)

Table2

PROGRAM REVENUES GENERAL REVENUES
Grants and
Operating Capital Contibutions
Charges Grants Grants General Other Unrestricted Not Restricted

Fiscal for and and Property Local Investment to Specific.

Year Senices Contibutions Contributions Taxes Taxes (2) Eamings _Misceaneous Programs (2) Total
2009-10 999,62 § 7,473,127 § : 43,004381 $ 6123807 § 108848 § © 173,822 § 2,486,481 29,740,208
2008-09 481,092 7,376 521 12,889,357 7.779265 153,807 346,860 171,674 30,798,596
2007-08 505,428 7,780,609 : 12,270,588 7,976,085 529.827 55,649 1,711,485 30,898,627
2006-07 527,092 8,235,980 802,191 13,239,976 5,467,574 808,979 252,756 1,881,802 31,216,330

(1) Information has only been avaiable for 4 years.
(2) 2009-10 the frst year Stale Communications taxis classified as grants and contributions not resticted to specific programs.




-!, 
'>' 

General 
Fiscal Government Judicial Public 
Year Administration Administration Safe!~ 

2009-10 $ 1,837,926 $ 2,213,724 $ 4,100,376 $ 
2008-09 1,702,193 2,236,691 4,383,789 
2007-08 1,745,817 2,070,455 4,057,495 
2006-07 1,547,966 1,805,418 3,863,960 
2005-06 1,810,230 1,814,649 4,022,185 
2004-05 1,471,043 1,059,566 3,977,841 
2003-04 1,216,960 957,320 3,585,934 
2002-03 1,267,146 977,540 3,651,469 
2001-02 1,365,932 1,017,492 3,635,861 
2000-01 1,450,187 1,031,613 3,664,306 

County of Russell, Virginia 
General Governmental Expenditures by Function (1) 

Last Ten Fiscal Years 

Parks, 
Public Health and Recreation, 
Works Welfare Education (2) and Cultural 

5,491,432 $ 6,906,934 $ 41 ,066,362 $ 497,417 $ 
6,093,232 6,672,387 42,452,183 547,104 
5,083,514 5,398,035 39,724,130 433,946 
3,205,718 5,126,034 41,346,518 493,366 
3,605,915 5,003,511 39,574,345 438,198 
3,434,569 4,948,270 33,030,292 339,244 
3,100,508 4,893,329 33,016,616 367,686 
3,067,788 4,910,495 27,683,380 378,365 
2,699,858 4,968,406 27,361,431 479,313 
2,555,345 4,680,775 27,897,353 419,894 

Community 
Develo~ment 

1,557,445 $ 
3,925,736 
5,549,375 
5,699,361 
7,653,814 
5,186,187 
2,843,672 
4,133,801 
3,648,003 
3,435,485 

(1) Includes General and Special Revenue funds of \he Primary Government and its Discretely Presented Component Unit· School Board. Excludes Capita! Projects. 
(2) Excludes contribution from Primary Government to Discretely Presented Component Unit · School Board. 

Table3 

Non· Debt 
de~artmental Service Total 

9,095 $ 2,504,631 $ 66,185,342 
56,093 2,547,424 70,616,832 
45,503 2,669,081 66,777,351 

2,429,487 65,517,828 
2,546,073 66,468,920 
2,704,665 56,151,677 
2,497,309 52,479,334 
2,111,104 48,181,088 
3,353,899 48,530,195 
3,007,990 48,142,948 

Teble3
County of Russel, Virginia
GGenerat Governmental Expenditures by Function (1)
Last Ten Fiscal Years

General Pets,
Fiscal Goverment cial Poblic Public Heath and Receeation, _Commrunty Nene eb
‘Year __Adrinisation Administration ___—Slty Worts ‘Wottre Education (2) and Cutural_Oavelopment_apanmantal__Servina Total
2006-10 S$ 1897928 § © —-BIATA § —4,00STS $ SANTA § GUSH § doa. § 4BTAIT S LSBTAKS $ 9095 -§ —BOKAN § —Bs.5 342
2008.08 1702198 2226891 4983789 Goua2%—6672.387 501837104 3.805795 sous ser roses?
200708 174587 40s7405 e554 5.398095 93704100 ARH BAG 75 45503 2,688,08t 6777381
200807 11547 96 3psas0 3.205718 5.126038 41gi6518 493.905.699.981, : 65517 28
2005.08 110.200 1814649 400218 305915 o0R BT 29574345 AURIS - 468,220,
200805 1713 11959368 sa77Bit 3434509 3gqs0222 «© seBzae 5,185,187 : 56,151877
2o0s04 1216.60 967,320 asesse¢ 3.400500 Beoige1s © 87H Te : 82479534
2002083 1207.46 977540 3651469 3,057,788 2rgeg390 © regs 1a 80 : 48,181,088
2oo%ae 13851922 1.017.492 3606,851 2.699868 2rasias 479219 3848.08 48,520,195
2000-91 #460.187 41031,613, 3564205 2555;948 re 45,142,948

(1) ncludes General and Special Revenue funds of he Primary Goversmen! ands Disrley Presented Component Unt - School Board, Excludes Capita Projects,
(2) Excludes cotibuton tom Primary Governenent to Dscrciely Presented Component Unt Scheel Boar

N
>




' ___, 
y:> 

Permits, 
General Other Privilege Fees, 

Fiscal Property Local Regulatory 
Year Taxes Taxes 13) Licenses 

2009-10 $ 12,841,457 $ 6,123,807 $ 45,877 $ 
2008-09 12,540,392 7,779,265 39,662 
2007-08 11,826,325 7,976,046 44,933 
2006-07 11,566,874 6,869,060 144,452 
2005-06 12,337,123 6,713,063 52,707 
2004-05 12,204,466 5,981,937 35,700 
2003-04 10,148,719 4,820,255 38,906 
2002-03 10,025,380 4,785,938 45,294 
2001-02 10,375,632 3,909,367 64,261 
2000-01 9,124,022 3,260,808 45,707 

County of Russell, Virginia 
General Governmental Revenues by Source (1) 

Last Ten Fiscal Years 

Revenue 
from the 

Fines Useol Charges 
and Money and lor 

Forfeitures Proeerty Services 

1,049 $ 74,279 $ 998,548 $ 
1,168 117,983 1,148,414 

321 501,144 1,023,848 
7,547 794,365 1,122,223 
8,181 660,142 878,017 
9,430 231,701 755,446 
9,938 74,324 892,392 

19,552 89,715 764,203 
11,766 228,739 791,877 
17,217 445,809 750,746 

Recovered 
Miscellaneous Costs 

293,467 $ 1,732,861 
643,861 1,884,165 
510,972 796,913 
289,980 276,806 
310,534 187,855 
192,958 266,232 
209,598 283,077 
209,160 145,776 
164,096 476,465 
383,544 291,711 

(1) Includes General and Special Revenue funds of the Primary Government and its Discretely Presented Component Unit- School Board. Excludes Capital Projects. 
(2) Excludes contribution from Primary Government to Discretely Presented Component Unit- School Board. 
(3) 2009-10 is the first year State Communications tax is classified as noncategorical state aide. 

Table 4 

Inter-
governmentall2), !3) Total 

$ 43,856,378 $ 65,967,723 
45,438,632 69,593,542 
43,519,497 66,199,999 
48,149,588 69,220,895 
42,906,554 64,054,176 
38,060,020 57,737,890 
35,517,991 51,995,200 
36,381,448 52,466,466 
30,997,358 47,019,561 
30,439,563 44,759,127 

Table
County of Russell, Virginia
General Governmontal Revenues by Source (1)
Last Ten Fiscal Years

Pevenue
Permits, from the
General Other Prvlege Fees, Fines Use of Charges

Fiscal Property Local Regulatory and Money snd for Recovered tetor

Year Tangs Taxes (3) Lisensos Forletures Property Services Miscellaneous ___Costs_governmantal 2), (3). Total
200810 § © 1aBH1457 § 6,123,807 § 45erT $1088 $7427 -§ —SaBsA S$ —DEHGT § I TERAEL § —«aBASESTE $5967, 729,
2008-08 10,392 7,779,265 39,662 1168 417,983, asia eagae1 1,884,165 45,499,622 69,590,542
2007-08 11226225, 7,978,086 44923, cal son tae 1023 246 s10972 798.18 43519,497 66,199,999
2008-07 11,566,874 6,969,060 44452 78a7 794,365, 1122208 269,980, 278,06 45,149,588 69,220,895
2008-08 123397,128, 6,713,063 2707 a18t 60,142 878017 310594 167,885 42,906,554 64,054,176
2004-05 127204465, 5,981,997 35,700 9490 231,701 755,448 192.958 266,232 38,080,020 57737890
2008-04 10,148,719 4.920.285 36,906, 9.938 74,324 992,392 209,598, 2077 35517.991 51,995,200
2002-03 10,025,380 4,785,898 45,284 19.552 saris 764,208, 209,160, 145,778 26,381,448 52,405,488
2003-02 10,575,632 3.909.367 eazet 11,768 28,758 1877 164.096 476,485, 30,997,858 47,019,581
2000-01, 9,124,002 3,260,008 70 weir 445,609 750,748 aaa 544 port 30,499,569 4789,127

(1) Includes General and Special Revenue funds ofthe Primary Government and its Discoely Presontad Component Unit - School Board, Exckies Capit! Projects
{2) Excludes convbution kom Primary Government to Discretely Presented Component Unt» School Board,
(3) 2009-10 the fist year Stele Communications axis casiled as noncategeical sale ede,




Total Current 
Fiscal Tax Tax 
Year Levy(1) Collections (1) 

2009-10 $ 14,169,807 $ 13,038,906 
2008-09 14,091,178 13,212,582 
2007-08 13,784,900 12,618,969 
2006-07 12,104,262 8,435,607 
2005-06 11,360,623 11,118,399 
2004-05 10,576,870 9,740,619 
2003-04 9,070,812 8,274,805 
2002-03 8,989,461 8,106,975 

.!.., 
2001-02 9,760,635 8,957,849 

_,. 2000-01 9,105,631 8,381,781 
' 

(1) Exclusive of penalties and interest. 

County of Russell, Virginia 
Property Tax Levies and Collections 

Last Ten Fiscal Years 

Percent Delinquent Total 
of Levy Tax Tax 

Collected Collections (1) Collections 

92.02% $ 886,480 $ 13,925,386 
93.76% 496,787 13,709,369 
91.54% 411,887 13,030,856 
69.69% 863,735 9,299,342 
97.87% 797,364 11,915,763 
92.09% 537,362 10,277,981 
91.22% 324,217 8,599,022 
90.18% 361,604 8,468,579 
91.78% 407,972 9,365,821 
9205% 439,386 8,821,167 

Table 5 

Percent of Percent of 
Total Tax Outstanding Delinquent 

Collections Delinquent Taxes Ia 
to Tax Levy Taxes (1) Tax Levy 

98.28% $ 3,624,318 25.58% 
97.29% 3,506,132 24.88% 
94.53% 3,234,367 23.46% 
76.83% 1,628,182 13.45% 

104.89% 1,854,243 16.32% 
97.17% 1 ,849,194 17.48% 
94.80% 1,772,141 19.54% 
94.21% 1,853,569 20.62% 
95.96% 1,481,506 15.18% 
96.88% 1,290,811 14.18% 

4b

County of Russell, Virginia
Property Tax Levies and Collections:
Last Ten Fiscal Years

Table 5

Percent of Percent of

Total Current Percent Delinquent Total Total Tax Outstanding Detinguent

Fiscal Tax Tax of Lew Tax Tax Collections Delinquent Taxes 10

Year Lewy (1) Collections (1) ___Callested_ Collections (1)__ Collections toTaxLey Taxes (1) Taxlevy
200010 $ © — 14,169,807 $ 13,038,906 92.02% $ 886,480 $13,025,386 98.28% $ 3,624,318 25.58%
2008-09 14,091,178 13,212,582 93.76% 496,787 13,709,369 97.29% — 3,506,132 24.88%
2007-08 13,784,900 12,618,969 91.54% 411,887 13,080,856 94.53% 3,234,367 23.46%
2006-07 12,104,262 8,435,607 69.69% 863,735 9,299,342 76.83% 1,628,182 13.45%
2006-06 11,360,623 11,118,399 97.87% 797,364 11,915,763 106.89% 1,854,243 16.32%
2004-05 10,576,870 9,740,819 92.09% 537,362 10,277,981 97.17% 1,849,194 17.48%
2003-04 9.070.812 8,274,805 91.22% 324,217 8,599,022 94.80% 1,772,141 19.54%
2002-03 8,989,461 8,108,975 90.18% 361,604 8,468,579 94.21% 1,853,569 20.62%
2001-02 9,760,635 8,957,849 91.78% 407,972 9,365,821 95.96% 1,481,506 15.18%
2000-01 9,105,631 8,381,781 92.05% 439,386 8,821,167 96.88% 1,290,814 14.18%

(1) Exclusive of penalties and interest




..!.., 
01 
' 

Fiscal Real Personal 
Year Estate (1) Property 

2009-10 $ 1,181,352,276 $ 224,871,200 $ 
2008-09 1,153,488,246 239,254,757 
2007-08 1,130,643,127 243,837,948 
2006-07 931,095,586 152,418,7 44 
2005-06 927,558,386 241 ,849,424 
2004-05 905,496,7 46 220,786,936 
2003-04 885,323,887 205,377,101 
2002-03 842,179,548 114,427,984 
2001-02 810,877,087 199,122,212 
2000-01 693,154,045 174,082,673 
1999-00 682,080,389 205,617,833 

(1) Real estate is assessed at 1 00% of fair market value. 

County of Russell, Virginia 
Assessed Value of Taxable Property 

Last Ten Fiscal Years 

Machinery 
and Merchant's 

Tools Capital 

96,552,183 $ 5,402,115 $ 
93,960,621 5,501,882 

107,205,468 5,742,600 
99,124,678 4,954,226 
92,859,770 5,113,134 

102,287,891 4,160,621 
77,287,167 3,438,802 
78,930,645 3,051,245 
67,692,057 2,978,115 
68,630,472 2,788,937 
77,018,308 3,405,765 

(2) Assessed values are established by the State Corporation Commission-includes all property types. 

Table 6 

Mobile Public 
Homes Service (2) Total 

22,864,821 $ 253,750,196 $ 1,784,792,791 
23,139,220 234,196,018 1,749,540,744 
23,608,064 231,981,492 1,743,018,699 
23,802,666 199,922,460 1,411,318,360 
26,020,997 206,306,945 1,499,708,656 
24,774,536 222,627,640 1 ,480,134,370 
23,763,122 226,411' 983 1,421,602,062 
24,231,179 226,477,438 1,289,298,039 
22,720,856 227,820,417 1,331,210,744 
18,014,620 195,932,118 1 '152,602,865 
17,458,675 206,155,148 1,191,736,118 

“or

County of Russell, Virginia
Assessed Value of Taxable Property
Last Ten Fiscal Years

Table 6

Machinery

Fiscal Real Personal and Merchant's, Mobiie Public

Year Estate (1) Property Tools Capital Homes Service (2) Total
2008-10 § — 1,181,352,276 $ 224,871,200 $ 96,552,183 $ 5402.18 22,864,821 $ 263,750,196 § — 1,784,792,791
2008-09 4,153,488,246 239,254,757 93,960,621 5,501,882 23,139,220 234,196,018 4,749,540,744
2007-08 1,130,643,127 243,837,948 107,205,468 5,742,600 23,608,064 231,981,492 1,743,018,699
2006-07 931,095,586 152,418,744 99,124,678 4,954,226 23,802,666 199,922,460 1,411,318,360
2005-06 927,558,386 241,849,424 92,859,770 5,113,134 26,020,997 206,306,945 1,499,708,656,
2004-05, 905,496,746 220,786,936 102,287,891 4,160,621 24,774,536 222,627,840 1,480,134,370
2003-04 885,323,887 205,377,101 77,287,167 3,438,802 23,763,122 226,411,983, 1,421,602,062
2002-03 842,179,548 114,427,984 78,930,645 3,081,245 24,231,179 228,877,438 1,289,298,039
2001-02 810,877,087 199,122,212 67,692,057 2,978,115 22,120,856 21,820,417 41,331,210,744
2000-01, 693,154,045 174,082,673 68,690,472 2,788,937 18,014,620 195,932,118 1,182,602,865,
1999-00 682,080,389 205,617,833 77,018,308 3,405,765 17,458,675 206,155,148 1,194,736,118

(1) Realestate is assessed at 100% of far market value
(2) Assessed values ate established by the State Corporation Commission-incudes all property types.




Fiscal Real 
Year Estate 

2009-10 $ 0.61 $ 
2008-09 0.61 

2007-08(3) 0.56/0.61 
2006-07(2) 0.65/0.56 

2005-06 0.65 
2004-05 0.60 
2003-04 0.60 
2002-03 0.55 
2001-02 0.55 
2000-01 0.64 

(1) Per $100 of assessed value. 
(2) 2nd half 2006/1 st half 2007 
(3) 2nd half 2007/1 st half 2008 

County of Russell, Virginia 
Property Tax Rates (1) 
Last Ten Fiscal Years 

Personal Machinery 
Property & Tools 

1.65 $ 1.65 
1.65 1.65 
1.65 1.65 
1.65 1.65 
1.65 1.65 
1.45 2.45 
1.45 1.45 
1.45 1.45 
1.45 1.45 
1.45 1.45 

-76-

$ 

Table 7 

Merchant's Mobile 
Capital Homes 

0.65 $ 0.61 
0.65 0.61 
0.65 0.56 

NA 0.64 
NA 0.64 
NA NA 
NA NA 
NA NA 
NA NA 
NA NA 

County of Russell, Virginia
Property Tax Rates (1)
Last Ten Fiscal Years

Table 7

Fiscal Real Personal Machinery Merchants Mobile
Year Estate Propet & Tools Capital Homes
2009-10 061 $ 165 $ 1.65 § 0.65 $ 0.61
2008-09 0.61 1.65 1.65 0.65 0.61
2007-083) 0.56/0.61 185 1.85 0.85 058
2008-072) 0.65/0.56 1.65 1.85 NA 064
2005-06 085 1.65 1.65 NA 064
2004.05 0.60 4.45 245 NA NA
2003-04 0.60 1.45 445 NA NA
2002-03 0.55 145 1.45 NA NA
2001-02 0.55 1.45 1.45 NA NA
2000-01 0.64 1.45 1.45 NA NA

(1) Per $100 of assessed value.
(2) 2nd half 2006/1st half 2007
(3) 2nd half 2007/'st half 2008

T6-




Table 8 
County of Russell, Virginia 

Ratio of Net General Bonded Debt to 
Assessed Value and Net Bonded Debt Per Capita 

Last Ten Fiscal Years 

Ratio of 
Net Bonded Net 

Assessed Gross Net Debt to Bonded 
Fiscal Value (in Bonded Bonded Assessed Debt per 
Year Population (1) thousands) (2) Debt (3) Debt Value Capita 

2009-10 28,790 $ 1,784,793 $ 20,863,604 $ 20,863,604 1.17% $ 725 
2008-09 28,790 1,749,541 20,684,197 20,684,197 1.18% 718 
2007-08 28,790 1,743,019 19,834,689 19,834,689 1.14% 689 
2006-07 28,790 1,411,318 14,836,861 14,836,861 1.05% 515 
2005-06 28,790 1,499,709 12,594,094 12,594,094 0.84% 437 
2004-05 28,830 1 ,480,134 13,633,304 13,633,304 0.92% 473 
2003-04 28,795 1,421,602 14,670,561 14,670,561 1.03% 509 
2002-03 28,940 1,289,298 15,770,006 15,770,006 1.22% 545 
2001-02 28,944 1,331,211 12,408,937 12,408,937 0.93% 429 
2000-01 29,071 1 '152,603 13,293,135 13,293,135 1.15% 457 

(1) Bureau of the Census 
(2) Real property assessed at 100% of the fair market value. 
(3) Includes all long-term general obligation bonded debt, bonded anticipation notes, and literary fund loans. 

Excludes revenue bonds, landfill closure/post-closure care liability, capital leases, and compensated absences. 

-77-

Tables
County of Russell, Virginia
Ratio of Net General Bonded Debt to
Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years

Ratio of
Net Bonded Net

Assessed Gross Net Debt to Bonded

Fiscal Value (in Bonded Bonded Assessed Debt per

Year Population (1) thousands) (2) Debt (3) Debt Value Capita
2009-10 28,790 $ 1,784,793 § 20,863,604 $ 20,863,604 117% § 725
2008-08 28,790 1,749,541 20,684,197 20,684,197 1.18% 718
2007-08 28,790 1,743,019 19,834,689 19,834,689 1.14% 689
2006-07 28,790 1,441,318 14,836,864 14,836,864 1.05% 515
2006-06, 28,790 1,499,708 12,594,094 12,594,094 0.84% 437
2004-05, 28,830 41,480,434 13,633,304 13,633,304 0.92% 473
2008-04 28,795 4,421,602 14,870,564 14,670,561 1.03% 509
2002-03, 28,940 1,289,298, 18,770,008 18,770,006 1.20% 545,
2001-02 28,944 1,831,211 12,408,937 12,408,937 0.93% 429
2000-01 29074 4,182,603, 13,203,135 13,203,135, 1.15% 457

(1) Bureau of the Census

(2) Real property assessed at 100% ofthe fair market value

(3) Ince alliong-term general obigation bonded debt, bonded antcipation notes, and iterary fund loans.
Excludes revenue bonds, lanl cosure/post-closure care liailty, capital leases, and compensated absences.

T7-




Table 9 
County of Russell, Virginia 

Ratio of Annual Debt Service Expenditures for General Bonded 
Debt to Total General Governmental Expenditures (1) 

Last Ten Fiscal Years 

Ratio of 
Total Debt Service 

Total General to General 
Fiscal Debt Governmental Governmental 
Year Service Expenditures Expenditures 

2009-10 $ 2,504,631 $ 66,185,342 3.78% 
2008-09 2,547,424 70,616,832 3.61% 
2007-08 2,669,081 66,777,351 4.00% 
2006-07 2,429,487 65,517,828 3.71% 
2005-06 2,546,073 66,468,920 3.83% 
2004-05 1,775,036 56,151,677 3.16% 
2003-04 1,742,481 52,479,334 3.32% 
2002-03 1,658,923 48,181,088 3.44% 
2001-02 1,939,714 48,530,195 4.00% 
2000-01 1,790,670 48,142,948 3.72% 

(1) Includes all governmental funds of the Primary Government and Special 
Revenue funds of the Discretely Presented Component Unit-School Board. 

-78-

Table 9
County of Russell, Virginia
tio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Governmental Expenditures (1)
Last Ten Fiscal Years

Ratio of

Total Debi Service

Total General to General

Fisoal Debt Governmental Governmental

Year Servioe Expenditures Expenditures
2008-10 $ 2804631 § 65,185,942 3.78%
2008-09 2,547,424 70,616.832 3.61%
2007-08 2,069,081 66,777,351 4.00%
2006-07 2,429,487 65517.828 3.71%
2005-06 2,548,073 66,468,920 3.83%
2004-05 4,775,036 56,151,677 3.18%
2008-04 4,742,484 52,479,334 3.82%
2002-08 4,658,923, 48,181,088 3.44%
2001-02 1,999,714 48,530,195 4.00%
2000-01 1,790,670 48,142,948 3.72%

{1) Includes all governmental funds of the Primary Government and Special
Revenue funds of the Discretely Presented Component Unit-School Board.




COMPLIANCE SECTION 

COMPLIANCE SECTION




ROJB][NSON, F ARMJER, Cox Assoc][ATJES 
CERTIFiED PUBliC ACCOUNTANTS A PROFESSIONAL LIMITED IJABllJTY COMPANY 

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 Members of the Board of Supervisors 
County of Russell, Virginia 
Lebanon, Virginia 

We have audited the financial statements of the governmental activities, the business-type activities, the aggregate 
discretely presented component units, each major fund, and the aggregate remaining fund information of the 
County of Russell, Virginia, as of and for the year ended June 30, 2010, which collectively comprise the County of 
Russell, Virginia's basic financial statements and have issued our report thereon dated January 26, 2011, which 
was qualified due to scope limitations. We conducted our audit in accordance with auditing standards generally 
accepted in the United States of America; Specifications for Audits of Counties, Cities, and Towns, issued by the 
Auditor of Public Accounts of the Commonwealth of Virginia; and the standards applicable to financial audits 
contained in Government Auditing Standards, issued by the Comptroller General of the United States. 

Internal Control Over Financial Reporting 

In planning and performing our audit, we considered the County of Russell, Virginia's internal control over financial 
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the 
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County of Russell, 
Virginia's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of 
the County of Russell, Virginia's internal control over financial reporting. 

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding 
paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be 
significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, 
significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying 
schedule of findings and questioned costs, we identified certain deficiencies in internal control over financial 
reporting that we consider to be material weaknesses. 

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. We consider the deficiency described in the 
accompanying schedule of findings and questioned costs to be material weakness 2010-1. 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the County of Russell, Virginia's financial statements are 
free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, 
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the 
determination of financial statement amounts. 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 

-79-

ROBINSON, FARMER, COX ASSOCIATES

(CERTIFUED PUBLIC ACCOUNTANTS "A PROFESSIONAL LIMITED LIABILITY COMPANY

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 Members of the Board of Supervisors
County of Russell, Virginia
Lebanon, Virginia

We have audited the financial statements of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the
County of Russell, Virginia, as of and for the year ended June 30, 2010, which collectively comprise the County of
Russell, Virginia's basic financial statemients and have issued our report thereon dated January 26, 2011, which
was qualified due to scope limitations. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America; Specifications for Audits of Counties, Cities, and Towns, issued by the
Auditor of Public Accounts of the Commonwealth of Virginia; and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the County of Russell, Virginia's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County of Russell,
Virginia's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of
the County of Russell, Virginia's internal control over financial reporting.

Our consideration of intemal controt over financial reporting was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be
significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies,
significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying
schedule of findings and questioned costs, we identified certain deficiencies in intemal control over financial
reporting that we consider to be material weaknesses,

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. We consider the deficiency described in the
accompanying schedule of findings and questioned cosis to be material weakness 2010-1.

Compliance and Other Matters

AAs part of obtaining reasonable assurance about whether the County of Russell, Virginia's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts, 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

-79-




disclosed an instance of noncompliance or other matters that are required to be reported under Government 
Auditing Standards and which are described in the accompanying schedule of findings, responses, and questioned 
costs as item 2010-2. 

We noted certain matters that we reported to management of the County of Russell, Virginia, in a separate letter 
dated January 26, 2011. 

The County of Russell, Virginia's responses to the findings identified in our audit are described in the accompanying 
schedule of findings, responses, and questioned costs. We did not audit the County of Russell, Virginia's responses 
and, accordingly, we express no opinion on them. 

This report is intended solely for the information and use of management, the Board of Supervisors, others within 
the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be 
used by anyone other than these specified parties. 

if?~~,~~ /,c~oa·~ 
Christiansburg, Virginia 
January 26, 2011 

-80-

disclosed an instance of noncompliance or other matters that are required to be reported under Goverment
Auditing Standards and which are described in the accompanying schedule of findings, responses, and questioned
costs as item 2010-2.

‘We noted certain matters that we reported to management of the County of Russell, Virginia, in a separate letter
daied January 26, 2011,

‘The County of Russell, Virginia's responses to the findings identified in our audit are described in the accompanying
schedule of findings, responses, and questioned costs. We did not audit the County of Russell, Virginia's responses
and, accordingly, we express no opinion on them.

This report is intended solely for the information and use of management, the Board of Supervisors, others within
the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.

Hateimoen, Saomar, py Chsocittes-

Christiansburg, Virginia
January 26, 2011

-80-




ROBINSON, FARMER, COX ASSOCIATES 
CI:Rllf1ED PUBLTC ACCOUNTANTS A PROFESSIONAL LIMITED LTABTLTTY COMPANY 

Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major 
Program and on Internal Control Over Compliance in Accordance with OMS Circular A-133 

Independent Auditors' Report 

To the Board of Supervisors 
County of Russell, Virginia 
Lebanon, Virginia 

Compliance 

We have audited the County of Russell, Virginia's compliance with the types of compliance requirements described 
in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the 
County of Russell, Virginia's major federal programs for the year ended June 30, 2010. The County of Russell, 
Virginia's major federal programs are identified in the summary of auditor's results section of the accompanying 
schedule of findings, responses, and questioned costs. Compliance with the requirements of laws, regulations, 
contracts, and grants applicable to each of its major federal programs is the responsibility of the County of Russell, 
Virginia's management. Our responsibility is to express an opinion on the County of Russell, Virginia's compliance 
based on our audit. 

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 OMB Circular A-133, Audits of States, Local Governments, 
and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit 
to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred 
to above that could have a direct and material effect on a major federal program occurred. An audit includes 
examining, on a test basis, evidence about the County of Russell, Virginia's compliance with those requirements 
and performing such other procedures as we considered necessary in the circumstances. We believe that our audit 
provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the County of 
Russell, Virginia's compliance with those requirements. 

As described in item 2010-3 in the accompanying schedule of findings, responses, and questioned costs, we were 
unable to obtain audited financial statements of the local Workforce Investment Board that administers the 
Workforce Investment Act Cluster (CFDA 17.258, 17.259, 17.260) on behalf of the County. The County serves as 
the grant recipient, however all funds are remitted directly to the Workforce Investment Board from the 
Commonwealth of Virginia. Aside from requiring an annual audit of the Workforce Investment Board, the County 
does not have a process in place to monitor the Board's performance in relation to this grant. The Workforce 
Investment Board has not completed audits for the fiscal years ending June 30, 2007, June 30, 2008, June 30, 
2009 or June 30, 2010. As such, we were unable to obtain sufficient documentation supporting the compliance of 
the County of Russell, Virginia (via the Workforce Investment Board) regarding all applicable compliance 
requirements, nor were we able to satisfy ourselves as to the County of Russell, Virginia's compliance with those 
requirements by other auditing procedures. 

As described in item 2010-4 in the accompanying schedule of findings, responses and questioned costs, the 
County of Russell, Virginia did not comply with requirements regarding Davis Bacon Act that are applicable to its 
ARRA - State Fiscal Stabilization Funds. Compliance with such requirements is necessary, in our opinion, for the 

-81-

ROBINSON, FARMER, COX ASSOCIATES

‘CERTIFIED PUBLIC ACCOUNTANTS “A PROFESSIONAL LIMITED LIABILITY COMPANY

Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major
Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133
Independent Auditors’ Report

To the Board of Supervisors
County of Russell, Virginia
Lebanon, Virginia

Compliance

We have audited the County of Russell, Virginia's compliance with the types of compliance requirements described
in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the
County of Russell, Virginia's major federal programs for the year ended June 30, 2010. The County of Russell,
Virginia's major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings, responses, and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major federal programs is the responsibilty of the County of Russell,
Virginia's management. Our responsibility is to express an opinion on the County of Russell, Virginia's compliance
based on our audit.

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 OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit
to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred
to above that could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the County of Russell, Virginia's compliance with those requirements
and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the County of
Russell, Virginia's compliance with those requirements.

‘As described in item 2010-3 in the accompanying schedule of findings, responses, and questioned costs, we were
unable to obtain audited financial statements of the local Workforce Investment Board that administers the
Workforce Investment Act Cluster (CFDA 17.258, 17.259, 17.260) on behalf of the County. The County serves as
the grant recipient, however all funds are remitted directly to the Workforce Investment Board from the
Commonwealth of Virginia. Aside from requiring an annual audit of the Workforce Investment Board, the County
does not have a process in place to monitor the Board's performance in relation to this grant. The Workforce
Investment Board has not completed audits for the fiscal years ending June 30, 2007, June 30, 2008, June 30,
2009 or June 30, 2010. As such, we were unable to obtain sufficient documentation supporting the compliance of
the County of Russell, Virginia (via the Workforce Investment Board) regarding all applicable compliance
requirements, nor were we able to satisfy ourselves as to the County of Russell, Virginia's compliance with those
requirements by other auditing procedures.

As described in item 2010-4 in the accompanying schedule of findings, responses and questioned costs, the

County of Russell, Virginia did not comply with requirements regarding Davis Bacon Act that are applicable to its
ARRA - State Fiscal Stabilization Funds. Compliance with such requirements is necessary, in our opinion, for the

81.




County of Russell, Virginia to comply with the requirements applicable to that program. 

In our opinion, except for the noncompliance described in the preceding paragraphs, the County of Russell, Virginia 
complied, in all material respects, with the 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 30,2010. 

Internal Control Over Compliance 

Management of the County of Russell, Virginia is responsible for establishing and maintaining effective internal 
control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal 
programs. In planning and performing our audit, we considered the County of Russell, Virginia's internal control 
over compliance with the requirements that could have a direct and material effect on a major federal program to 
determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report 
on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing 
an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on 
the effectiveness of the County of Russell, Virginia's internal control over compliance. 

Our consideration of internal control over compliance was for the limited purpose described in the preceding 
paragraph and was not designed to identify all deficiencies in internal control over compliance that might be 
significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, 
significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified 
certain deficiencies in internal control over compliance that we consider to be material weaknesses. 

A deficiency in internal control over compliance exists when the design or operation of a control over compliance 
does not allow management or employees, in the normal course of performing their assigned functions, to prevent, 
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. 
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal 
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of 
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. 
We consider the deficiencies in internal control over compliance described in the accompanying schedule of 
findings and questioned costs as items 2010-3 and 2010-4 to be material weaknesses. 

The County of Russell, Virginia's responses to the findings identified in our audit are described in the accompanying 
schedule of findings, responses, and questioned costs. We did not audit the County of Russell, Virginia's 
responses and, accordingly, we express no opinion on the responses. 

This report is intended solely for the information and use of management, Board of Supervisors, others within the 
entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by 
anyone other than these specified parties. 

i'f~mt, ~~ '~tJa~ 
Christiansburg, Virginia 
January 26, 2011 

-82-

County of Russell, Virginia to comply with the requirements applicable to that program.

In our opinion, except for the noncompliance described in the preceding paragraphs, the County of Russell, Virginia
complied, in all material respects, with the compliance requirements referted to above that could have a direct and
material effect on each of its major federal programs for the year ended June 30, 2010.

Internal Control Over Compliance

Management of the County of Russell, Virginia is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the County of Russell, Virginia's internal control
‘over compliance with the requirements that could have a direct and material effect on a major federal program to
determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report
‘on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing
an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the County of Russell, Virgiia’s internal control over compliance.

Our consideration of intemal control over compliance was for the limited purpose described in the preceding
paragraph and was not designed to identity all deficiencies in internal control over compliance that might be
significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies,
significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified
certain deficiencies in internal control over compliance that we consider to be material weaknesses.

‘A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in intemal control over compliance is a deficiency, or combination of deficiencies, in intemal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis,
We consider the deficiencies in internal control over compliance described in the accompanying schedule of
findings and questioned costs as items 2010-3 and 2010-4 to be material weaknesses.

The County of Russell, Virginia's responses to the findings identified in our audit are described in the accompanying
schedule of findings, responses, and questioned costs. We did not audit the County of Russell, Virginia's
responses and, accordingly, we express no opinion on the responses,

This report is intended solely for the information and use of management, Board of Supervisors, others within the
entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by
anyone other than these specified parties.

Hsteinson,, Gaoman, lay Cssocictes-

Christiansburg, Virginia
January 26, 2011

-82-




County ol Russell, Virginia Page 1 of3 
Schedule of Expenditures of Federal Awards 

For the Year Ended June 30,2010 

Pass-through 
Federal Entity 

Federal Grantor/State Pass • Through Grantor/ CFOA Identifying Federal 
Program Cluster or Title Number Number Expenditures 

Departmer~t or Health and Humar1 Services: 
Pass Through Payments: 

Departmer1l of Social Services: 
Promoting Safe and Stable Families 93.556 90249, 90359, 90360, 90361 s 26,279 
Temporary Assistance for Needy Families (T ANF) 93.558 90109, 90110, 90111' 90112 647,095 

90127, 90229, 90230, 90231 
90232, 90247, 90365, 90366 
90367, 90377, 90603, 90621 

Refugee and Entrant Assistance· Slate Administered Programs 93.566 90113,90233 796 
Low-Income Home Energy Assistance 93.568 90114,90115,90234,90235 20,887 
Child Care and Development Fund Cluster: 

Child Care and Development Block Grant 93.575 90545 16,092 
ARRA • Child Care and Development Block Grant 93.713 90529, 90540, 90541' 90545 7,798 
Child Care Mandatory and Matching Funds of the 93.596 90116,90117,90118,90119 69,047 

Child Care and Development Fund 90236, 90237, 90238, 90239 
90529, 90540, 90541 

Child Welfare Services · Slate Grants 93.645 90251 1,352 
Foster Care· Title IV-E 93.658 90105,90106,90107,90209 391,992 

90225, 90226, 90227, 90253 
90258, 90636, 90637, 90639 

90657, 90658 
ARRA- Foster Care- Title IV-E 93.658 90636, 90637, 90639, 90657 35,388 

90658 
Adoption Assistance 93.659 90108, 90214, 90228, 90606 54,327 

90627 
ARRA- Adoption Assistance 93.659 90606 5,277 
Soc1al Services Block Grant 93.667 90120,90122,90123,90124 174,104 

90125, 90126, 90240, 90242 
90243, 90244, 90245, 90246 
90262,90312,90313,90332 
90338, 90340, 90358, 90379 

Chafee Foster Care Independence Program 96.674 90254, 90356 8,029 
Children's Health Insurance Program 93.767 90102, 90222 15,269 
Medical Assistance Program 93.778 90101,90146,90213,90221 194,995 

90266 

Total Department of Health and Human Services $ 1,668,727 

Department of Agriculture: 
Pass Through Payments: 
Department of Agriculture: 
Child Nutrition Cluster: 

Food Distribution-Schools (Note 3) 10.555 Not applicable s 106,824 

Department of Education: 
Child Nutrition Cluster: 

National School Breakfast Program 10.553 40591 272,420 
National School Lunch Program 10.555 40623 850,585 

ARRA- National School Lunch Program Equipment 10.579 40592 30,318 
Fresh Fruit and Vegetable Program 10.582 40599 6,674 

Department of Social Services: 
SNAP Cluster: 

State Administrative Matching Grants for the Supplemental 10.561 90103,90104,90212,90223 333,777 
Nutrition Assistance Program 90224 

ARRA- State Administrative Matching Grants for the Supplemental 10.561 90103,90104,90212,90223 3,750 
Nutrition Assistance Program 90224 

Total Department of Agriculture 1,604,348 

-83-

ounty of uss, Virginia Pago ot
Schedule of Expenatures of Feral Awards
Forth Year Ended Jura 30,2010,

Pasesnrough
Fectral Entity
Federal Geantorsata Pass-Through Grate! orDA entiying erat
Prop Gtr Tie umber Numer Exgonctres
Depsient ot Heath an Human Sarces:
Pass Thugh Payers
Depatnani ol Sol Sees:
‘Prong Sie are Sable Faris ee
‘Tenparary Aosinos or Nos Farben TANF) 98556 08, coro, spt, nie 687085
soir, size, 922080284,
Boe, 0247, 90985 308
5057, 9087, 6a, 8082,
‘auge ent EntantAsilence Slt Adninisled Prorans ans sot, 90238
Lonsteome Hemet nagy Asstance 58556 9014 S015, 91254, 0285,
(tid Catered Devaoorent Fund Duster
(Ch Cae sn Deepen ick rat 3575 God
RRA. Ci Cand Developmen Bock Grant 758604 S060, B54, 0585,
(ht Cate Many ae ching Fars ote 95586 16 c0r7, 90018 ene
(hie Care a6 Deepen Fins 5126, 257, 9228, 8028
50525, 0, 9584
‘hi eta Senses Ste Gras sais ast tae
sls Caro TeV 58856 905 gots, sbi, szn8 swig
sz, uz, 90227, 90253
80258, os, 90887, 90699
0657, 0658
-ARRA. Foster Cre The N-E 856 5005, S067, 9068, 0887 88
esd
Acopn Assistance 3058 S108 904, ote, 0808 sar
0ea7
ARPA. Acopln Asisneo suas eos san
Steal Serves Beek Grant, ‘8867 rz ootz, 90128 012s 7404
eas, 01, cen, se
ez, ope, 25,90
5026, 9082, 90518 90382
508, to, 90988, 80078
‘ale Fotr Care nopensonce Program soon a, 586 008
‘Chicas Hath lswarce Progam 38767 one, 0222 13209
ail Aesance Progr, 55776 oro}, ses 92,0221 194985
‘es
Tl Dopartnat ot Hea Hun Senices 1988727
Departmen of Apel:
ass Trough Payrens:
Donate of Agree
Chianaion cha
Fao isn Shoo (Nae) 10585 tape Soa
Depart of actor:
Chis Muse Cer
Naioa ence Bestest Progen 10553 eg 272420
Natal etc! Le Pega 10585 23 50585
RRA. Nara Schaal Lune Program Egret 10579 se mai6
Fresh Fa nd Voge Progam see 9 can
Depart of Soil Sees
SP Cus
Sie AtminsabeMalsing rans ore Superenat 051 onto, ia, sate 80203 ss”
‘nen Asiteoe Progam ca8
ABBA Sl Aiiave Maching Gas ote Supplements soset soto oro, sera soa 370
‘aon Asis Prepam cat

‘To Deprertt Agee Siem





County of Russell, Virginia Page 2 of 3 
Schedule of Expenditures of Federal Awards 

For the Year Ended June 30,2010 

Pass-through 
Federal Entity 

Federal Grantor/State Pass· Through Grantor/ CFDA Identifying Federal 
Program Cluster or Title Number Number Expenditures 

(Continued) 
Department of Justice: 

Pass Through Payments· 
Department of Criminal Justice Services: 
Violence Against Women Formula Grants 16.588 08WFAX0050 $ 19,530 

09WFAX0037 
ARRA- Stop Violence Againsl Women Formula Grants 16.588 09EFS60025 27,093 

Total Department of Criminal Justice Services-pass through 46,623 

Compensation Board: 
ARRA- Edward Byme Memorial Justice Assistance Grant Program 16.803 09SUB9033 $ 72.946 

Total Department of Justice s 119,569 

Department ofT ransportation: 
Pass Through Payments: 
Department of Motor Vehicles· 

State and Community Highway Safety (402 Funds) 20600 AL-2010 50321 3941 $ 3,720 
SC-2009 59295 3598 

Department of Emergency Management: 
Interagency Hazardous Materials Public Sector Training and Planning Grants 20.703 52609 3,842 

Total Department of Transportation $ 7,562 

Department of Education: 
Pass Through Payments: 
Department of Education: 
Adult Education - Basic Grants to States 84.002 42801,61111 250,726 
Title I Cluster: 

Title 1: Grants to Local Educational Agencies 84.010 42901' 42999 1,336,504 
ARRA- Tille 1· Grants to Local Educational Agencies 84.389 42913 295,710 

Special Education Cluster: 
Special Education - Grants to Stales 84.027 43071 913,016 
ARRA- Special Education -Grants to States 84.391 61245 390,652 
Special Education - Preschool Grants 84.173 62521 35,825 

Career and Technical Education: Basic Grants to States 84.048 61095 101,391 
Safe and Drug Free Schools and Communities- State Grants 84.186 60511 5,005 
Even Start- State Educational Agencies 84.213 42950, 86603 233,098 
Twenty-First Century Community Learning Centers 84.287 60565 985,091 
Readinesss and Emergency Management for Schools Program 84.184E 64,067 
Education Technology Stale Grants 84.318 61600 26,558 
ARRA- Education Technology State Grants 84.386 60897 19,750 
Reading First State Grants 84.357 60655 57,056 
Rural Education 84.358 43481 22,355 
ARRA- State Fiscal Stabilization Funds - Educational Stale Grants 84.394 62532 1,203,591 
Improving Teacher Quality State Grants 84.367 61480 334,477 

Total Department of Education $ 6,274,972 

Deparbnent of Housing and Urban Development: 
Pass Through Payments: 
Deparbnent of Housing and Community Development: 

Community Development Block Grant 14.228 50797, 50799 $ 244,084 

National Endowment for the Arts· 
Pass Through Payments: 
Virginia Commission for the Arts: 
Promotion of the Arts Partnership Agreements 45.025 99910 4,000 

Corporation for National Community Service: 
Pass Through Payments: 
Department of Education: 

Learn and Serve America- School and Community Based Programs 94.004 60185 $ 24,150 

-84-

County of Russ, Vega

‘Schodul of Expestre of Feral Avards

Forth Year Ended June 30,2010,

Page2ot3

Pasettrough
Feterat Entity
Federal Grantostat Pass-Through Grote ‘FDA loettyng Fete!
Program Custer oT umber Number Expentures
(Conieves
Deparment of size:
ass Trough Payents:
para Cerin usceSences

‘ier Aga! Worn Forma Gaal 15588 wr ax0s0 S980

ewes

ARRA. Sp Vidor Agia Women Formule als 13538 wEFSeoNes 210083

Tol Dope Cin! use Senice pas trowgh 583
‘onpesaon Boar

"AREA. Edvard Bye Marat uses Assan Gran Paya ae ess s_ma16
Tale patra of toe 19880
Depart of renee:

Pass Tron Payers:
Depron of tr Visas:
‘So an Communty Highway Slay (02 Funds) 20600 L200 ssz1 sot 37m
‘5070 Sea 88
Degatent of Emagen Managenant:

Ineragoney Harari Male Puc Sco Taig an Plain Gras 20708 508 soe
“Te Dearne Tenspatiton 1582
Depatnent of Eaton:

as To.gh Payers
Deparment of Eceton
Au Eucla Gan Stes x00 ace, 6115 sma
Ti Out
Tie CranisoLoa cesta gens axot0 1,290 ‘guge04
AREA. Tile Gas o LoralEevetona Agence 4s aS ‘as
Spi Eastin Cua
Speci Euan - Gras Stas ex0ar sant 13016
-ARRA. Speed Eoveton- Cease Sias ease eis 0352
Spe Even - Prec Grane au173 2821 52

ar Tete Etec: Bae Cran Silos 84048 085 101381

Salen Ou Fre cons and Communion - Sta Gels 84105 eoeit 5005

Even Sa Sao Edvatal Agee 24213 650, 5803 230%

ToatyFit Contry ConmuniyLeanirg Caries 34267 0885 85081,

eesinets and Enageny Meagan a eno Progr Ae 4057

Etucaton Teco Sia Gris 318 seen 2588

RRA. Eden Tesolagy Sta Grats 35 ‘0887 19780

eat Fst Site Gants 357 ss 51088

irl eaten 8 ‘ve 2388

AREA Sil Feral Statileon Funds - Elona Sale Grn ey 582 ‘208881

roeg Tear Oly Sine rans 387 cra Sear?
“oa Dapartnortt Edn apie
‘eparrent of Hung ant idan Doveapent

Pas Though Payers
epatnerof Husg and Community Doeopant

Conny Deveopmert Bec Grek 14228 ser. 0729 $s neous

ton Endooret re At:
Pass Tru Panes
‘Vegi Gans rho et
‘Proraton ale As Parveen Aearant 25005 se sso
Copan atl Commanty Serie:
Pass Tough Payents
‘sparta of Eeson:
Lean and Seve Aner Scheel and Corman Based Pron ot es sms0




County of Russell, Virginia 
Schedule of Expenditures of Federal Awards 

For the Year Ended June 30, 2010 

Federal Grantor/State Pass ·Through Grantor/ 
Program Cluster or Title 

Federal 
CFOA 

Number 

(Continued) 
Oepartmenl of labor: 
Pass Through Payments: 
Oepartmenl of Education: 
Workforce Investment Act Cluster: 

WIA Youth Activities 
WIA Adult Program 

Total Department of labor 

U.S. Department of Homeland Security: 
Pass Through Payments: 
Department of Emergency Management: 

State Homeland Security Program (SHSP) 
Emergency Management Performance Grant 

Total U.S. Department of Homeland Security 

Total Federal Expenditures of Federal Awards 

Note 1 -- Basis of Presentation 

17 259 
17.258 

97.073 
97.042 

Pass-through 
Entity 

Identifying 
Number 

86713 
86712 

52708 
52749 

Federal 
Expenditures 

$ 

$ 

s 

11,197 
57,000 

68,197 

54,750 
6,769 

$ 61,519 

$ 10,077,128 

The accompanying schedule of expenditures of federal awards {the Schedule) includes the federal grant activity of Russell County, Virginia under programs of the 
federal government for the year ended June 30, 2010. The information in this Schedule is presented in accordance with the requirements of OMB Circular A-133, 
Audits of States, Local Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of Russell County, 
Virginia, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Russell County, Virginia. 

Note 2 ·- 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 OMS Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to 
reimbursement. 
(2) Pass-through entity identifying numbers are presented where available. 

Note 3 -- Food Distribution 
Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. At June 30, 2010 Russell County, 
Virginia had food commodities totaling $0 in inventory 

Note 4 ·· Subrecipients 
Of the federal expenditures presented in the Schedule, Russell County, Virginia provided federal awards to subrecipients as follows: 
CFDA Number Prooram Name Amount 

14.228 Community Development Block Grant $ 168,820 
The County of Russell serves as the grant recipient for the Workforce Investment Act Cluster (WIA) CFDA numbers 17.258, 17.259, and 17.260. Funds are 
delivered direcUy to the subrecipient (local Workforce Investment Board) through the Virginia Employment Commission. The Workforce Investment Board did not 
produce an audit for the fiscal year ending June 30, 2010 and therefore no amounts are available for presentation herein related to the program See schedule of 
findings, responses and questioned costs for additional information. 

Note 5 -- Relationship to the 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: 
General Fund $ 2,442,988 

Component Unit Schools: 
School Operating Fund 7,634,140 

Total federal expenditures per the Schedule of Expenditures of Federal Awards $ 10,077,128 

-85-

Page 3 of3 

‘County of Russe, Vigna
Schedule of Expenstres of Federal Awards
Forth YearEnded June 32000,

Pasetrough
Federal ty
Federal Granortete Pats - Trough Grant rOA, eenting Fetes!
Progam Guster or Tile urbe Number Expenditures
{Contnuet)
Depotnan tbe:
Pass Tough Payments:
Depart Eda:
‘Wolke nesta at sie
‘WIA Yeu ties 17289 3 some
{Maa Progam 17238 2
Tole Department Labor sar
US, Depron Homans Secu
Pass Though Paynes
‘partment Erergency Manage
‘Se Homan Seu Pega (SHSP) sro7s 57708 5 tt
EmsgenyHanepement Pestmenc Gran 02 508 53
Total US, Deparment of Homer Secnty sas
“Told Fees penis Feral Ais $997.18

Nott Bas of revertation

The sesarpsnyig shel of expense firs awards ho Schein he ore rant acto Fuss Cun, Vii under rogram fo
feral oven fr yo endo Je 0, ZO. The nate ns Schetue pesos in zcrcsne wih fe regan of OME Grol 13,

‘Aus of Stes, Loc! Coveramens, a Non Po Orgarzaone. cau to Sehedde pect cly called grin of he coatalre ol assel Co,
‘Vapi, is tne oa oes ot presen tern positon cheges nl asst, or cash ows Rusa Cau, Vig

‘Noe 2--Surmay of Sica ossuning Plies
(*) pecs repre ne Seneca epson Be ca base anxunng, Such expenses a eons owing Be cos picfles
cama OMG Cle A122, Cas Pras foc Non-Pro Crgatizsos, wer carn yes expen aol lowe cris 2
‘eenboeeran

(2) Pass streagh ry tethjing manasa rosea are abi

te Foot Dison
Nonna eaitence aorta hace ae alt are vl fhe canes reed and dsb, Aue 0, 2010 seal County,
Vigil aed corse srg Si inven.

No Subeiiants
‘ft deal anges peor ine Schad, Russel Cony, Vega poi ode swans lo ube 8 ons
(CeDANenber Pronanane Anau

14238 ena Daveopent ek Crt se80

The Counly of Rusa eeves athe int eet the Woes Isnt Act Cie (HU) CFDA meters 1.258, 17.259, an 17.280. Furs ee
«elves eet loth versie Lea Wares nese oad ivcgh te Vigna Eoymar Corson. The Wore resent Boa ot
rede ana ote fa yar ntng June 20,200 anette no amounts all presen herein ata of progam. Se sche of
Teg, sponses td quosionod ests orale inoralon.

Note ~Rolaonstip ote Frac Stores
Fedo expres, oveuts ae copa cota eer ine Couns bas acl tates slows

Intrgoveraril oferclevnon othe basic fara sae:

Pinay goverment
Gone fund 296
‘omg Uni Shek:
‘Sted Operating Fund sano
Tot ote expends pre Shetlands ct Fea ards 5 morn

Pagoda




County of Russell, Virginia 

Schedule of Findings, Responses and Questioned Costs 
Year Ended June 30, 2010 

Section I- Summary of Auditor's Results 

Financial Statements 

Type of auditor's report issued: 

Internal control over financial reporting: 
Material weakness(es) identified? 

Significant deficiency(ies) identified? 

Noncompliance material to financial statements noted? 

Federal Awards 

Internal control over financial reporting: 
Material weakness(es) identified? 

Significant deficiency(ies) identified? 

Type of auditor's report issued on compliance for major programs: 

Any audit findings disclosed that are required to be 
reported in accordance with Circular A-133, 
Section .510 (a)? 

Identification of major programs: 

CFDA# 

84.173/84.027/84.391 

Name of Federal Program or Cluster 

Special Education Cluster 
Title 1: Part A Cluster 

Unqualified 

Yes 

No 

Yes 

Yes 

No 

Qualified 

Yes 

84.010/84.389 
10.561 
93.558 
93.658 
84.394 

State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Cluster 
Temporary Assistance for Needy Families (TANF) 
Foster Care- Title IV-E Cluster 

10.553/10.555 
17.258/17.259/17.260 

ARRA- State Fiscal Stabilization Funds - Educational State Grants 
Child Nutrition Cluster 
Workforce Investment Act Cluster 

Dollar threshold used to distinguish between Type A 
and Type B programs: 

Auditee qualified as low-risk auditee? 

-86-

$302,314 

No 

County of Russell, Virginia

‘Schedule of Findings, Responses and Questioned Costs
‘Year Ended June 30, 2010

Section |- Summary of Auditor's Results

Financial Statements

Type of auditor's report issued: Unqualified
Internal control over financia! reporting:
Material weakness(es) identified? Yes
Significant deficiency(jes) identified? No
Noncompliance material to financial statements noted? Yes
Federal Awards
Internal control over financial reporting:
Material weakness(es) identified? Yes
Significant deficiency(jes) identiled? No
Type of auditors report issued on compliance for major programs: Qualified

Any audit findings disclosed that are required to be

reported in accordance with Circular A-133,

Section .510 (a)? Yes
Identtcation of major programs:

CFDA # Name of Federal Program or Cluster

84.173/84,027/84.391 Special Education Cluster
84.010/84.389 Title 1: Part A Cluster

10.561 State Administrative Matching Grants for he Supplemental Nutrition Assistance Program Cluster
93.558 Temporary Assistance for Needy Families (TANF)

93.658 Foster Care - Tile IV-E Cluster

84,304 ARRA - State Fiscal Stabilization Funds - Educational State Grants

10.559/10.555 Child Nutrition Cluster
17.258/17.259/17.260 Workforce Investment Act Cluster

Dolar threshold used fo distinguish between Type A
and Type 8 programs: $302,314

Auditee qualified as low-risk ausitee? No

-86-




County of Russell, Virginia 

Schedule of Findings, Responses and Questioned Costs 
Year Ended June 30,2010 

Section II· Financial Statement Findings 

2010-1 

Criteria: 

Condition: 

Cause of Condition: 

Effect of Condition: 

Recommendation: 

Management's 
Response: 

2010-2 

Criteria: 

Condition: 

Cause of Condition: 

Effect of Condition: 

Recommendation: 

Management's 
Response: 

Per Statement on Auditing Standards 115 (SAS 115), identification of a material adjustment to the 
financial statements that was not detected by the entity's internal controls indicates that a material 
weakness exist. 

The financial statements, as presented for audit, did not contain all necessary adjustments to 
comply with generally accepted accounting principles (GAAP). As such, the auditor proposed 
adjustments that were material to the financial statements. 

The County does not have proper controls in place to notice and correct errors in closing their year 
end financial statements. 

There is more than a remote likelihood that a misstatement of the County's financial statements 
that is more than inconsequential will not be prevented or detected by the County's internal 
controls over financial reporting. 

The County should review the auditors' proposed audit adjustments for 2010 and develop a plan to 
ensure the trial balances and related schedules are accurately presented for audit. 

The County will review the auditors' proposed audit adjustments for 2010 and will develop a plan of 
action to ensure that all adjusting entries are made prior to final audit fieldwork next year. 

The Code of Virginia, (1950), as amended requires that an appropriation exist prior to the 
expenditure of funds. 

The budgeting process for the County did not include the Department of Social Services. As such, 
anticipated expenditures were not included in the County's advertisement process and no 
appropriation of funds was given. 

The County had never budgeted to include the Department of Social Services in the past. 

The County has not met the requirements of the Code of Virginia, (1950), as amended. 

The County should budget to include appropriations for all necessary expenditures. 

Management will begin to include the Department of Social Services expenditures in all aspects of 
the budgeting process. In addition, management will post all appropriations in the County's 
accounting system and monitor expenditures against same. 

-87-

County of Russell, Virginia

Schedule of Findings, Respor
Year Ended June 30, 2010

nses and Questioned Costs,

Section II - Financial Statement Findings

2010-4
Criteria Per Statement on Auditing Standards 116 (SAS 115), identtication of a material adjustment to the
financial statements that was not detected by the entity's intemal controls indicates that a material
weakness exist.

Condition The financial statements, as presented for audit, did not contain all necessary adjustments to
comply with generally accepted accounting principles (GAAP). As such, the auditor proposed
adjustments that were material tothe financial statements

Cause of Condition: The County does not have proper controls in place to notice and correct errors in closing their year
end financial statements.

Effect of Condition: There is more than a remote likelihood that a misstatement of the County’ financial statements
that is more than inconsequential will not be prevented or detected by the County's internal
controls over financial reporting

Recommendation: The County should review the aucitors’ proposed audit adjustments for 2010 and develop a plan to
ensure the trial balances and related schedules are accurately presented for audit.

Managements The County will review the auditors’ proposed aucit adjustments for 2010 and will develop a plan of

Response: action to ensure that all adjusting entries are made prior to final auit fieldwork next year

2010-2
Criteria: ‘The Code of Virginia, (1950), as amended requires that an appropriation exist prior to the
expenditure of funds.

Condition: The budgeting process for the County did not include the Department of Social Services. As such,
anticipated expenditures were not included in the County's advertisement process and no
‘appropriation of funds was given.

Cause of Condition: The County hed never budgeted to include the Department of Social Services in the past.

Effect of Condition: The County has not met the requirements of the Code of Virainia, (1950), as amended.

Recommendation: The County should budget to include appropriations forall necessary expenditures

Managements Management will begin to include the Department of Social Services expenditures in all aspects of

Response the budgeting process. In addition, management wil post all appropriations in the County's

~2ccounting system and monitor expenditures against same,

-87-




County of Russell, Virginia 

Schedule of Findings, Responses and Questioned Costs 
Year Ended June 30, 2010 

Section Ill· Federal Award Findings and Questioned Costs 

Statement of 
Condition: 

Criteria: 

Effect: 

Recommendation: 

Statement of 
Condition: 

Criteria: 

Effect: 

Recommendation: 

Workforce Investment Act Cluster (WIA) · CFDA 17.258, 17.259, 17.260 

Reporting: The County of Russell serves as the grant recipient for the WIA grant, however funds 
are remitted directly to the local Workforce Investment Board from the Commonwealth of Virginia. 
The County does not receive or disburse federal funds, however pursuant to their agreement with 
the State certain oversight functions are required of the County. Specifically, the County is 
required to monitor their subrecipient. To date, the County has relied on the Workforce Investment 
Board's annual audit, performed in accordance with OMB Circular A-133 to serve as 
documentation that the Workforce Investment Board has complied with requirements of the grant. 
The Workforce Investment Board has not completed an audit for the fiscal years ending June 30, 
2007, June 30, 2008, June 30, 2009 or June 30, 2010. In addition, the County has not 
implemented other programs to monitor the Board's compliance with requirements of the Grant. 

The County, as the grant recipient, has the responsibility of monitoring their subrecipient's 
compliance with grant requirements. 

The subrecipient may not be in compliance with all grant requirements. 

The County should require that the subrecipient have the program audited annually and require 
that the annual audit be completed and finalized within 90 days of year end. 

ARRA ·State Fiscal Stabilization Funds· Educational State Grants· CFDA 84.394 

Davis Bacon Act: The School Board did not receive weekly certified payrolls in conjunction with 
construction related to the schools. 

The Davis Bacon Act requires that all contractors and subcontractors performing on federal 
contracts in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage 
rates and fringe benefits. 

Although the School Board received signed notifications from contractors agreeing to follow the 
Davis Bacon Act, without reviewing the certified payrolls as required, there is a likelihood the 
School Board is not in compliance with the Davis Bacon Act. 

The School Board should require the contractors and subcontractors to submit weekly certified 
payrolls and review to ensure they meet the required prevailing wage rate clauses in the 
agreements. 

Section IV· Status of Prior Audit Findings and Questioned Costs 

Financial Statement Findings 2009-1 and 2009-3 recurred during fiscal year 2010. Federal Award Findings and Questioned 
Costs 2009-5 recurred during fiscal year 2010. 

-88-

County of Russell, Virginia

‘Schedule of Findings, Responses and Questioned Costs

Year Ended June 30, 2010

Section Ill - Federal Award Findings and Questioned Costs

2010:3

Statement of
Condition:

Criteria

Effect

Recommendation:

2010-4

Statement of
Condition:

Criteria

Effect:

Recommendation:

Section 1V - Status of Prior

Workforce Investment Act Cluster (WIA) - CFDA 17.258, 17.259, 17.260

Reporting: The County of Russell serves as the grant recipient for the WIA grant, however funds
are remitted directly o the local Workforce Investment Board from the Commonwealth of Virginia,
The County does not receive or disburse federal funds, however pursuant to their agreement with
the Slate certain oversight functions are required of the County. Specifically, the County is
required to monitor their subrecipient. To date, the County has relied on the Workforce Investment
Board's annual audit, performed in acoordance with OMB Circular A-133 to serve as
documentation that the Workforce investment Board has complied with requirements ofthe grant.
The Workforce Investment Board has not completed an audit for the fiscal years ending June 30,
2007, June 30, 2008, June 30, 2009 or June 30, 2010. in addition, the County has not
implemented other programs to monitor the Board's compliance with requirements ofthe Grant.

The County, as the grant recipient, has the responsibilty of monitoring their subrecipient’s
compliance with grant requirements.

The subrecipient may not be in compliance with all grant requirements,

The County should require that the subrecipient have the program audited annually and require
that the annual audit be completed and finalized within 90 days of year end,

ARRA - State Fiscal Stabilization Funds - Educational State Grants - CFDA 84.304

Davis Bacon Act: The School Board did not receive weekly certified payrolls in conjunction with
construction related to the schools.

The Davis Bacon Act requires that all contractors and subcontractors performing on federal
contracts in excess of $2,000 pay their laborers and mechanics not less than the prevaling wage
rates and fringe benefits

Although the Schoo! Board received signed notifications from contractors agreeing to follow the
Davis Bacon Act, without reviewing the certified payrolls as required, there isa likelihood the
‘Schoo! Board is not in compliance with the Davis Bacon Act.

‘The School Board should require the contractors and subcontractors to submit weekly certied
payrolls and review to ensure they meet the required prevaling wage rate clauses in the
agreements.

‘Audit Findings and Questioned Costs

Financial Statement Findings 2009-1 and 2009-3 recurred during fiscal year 2010. Federal Award Findings and Questioned
Costs 2008-5 recurred during fiscal year 2010.

-88-