Financial Audit Presentation Year Ended June 30, 2018 10/1/2018 Financial Audit Presentation Year Ended June 30, 2018

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ OPINION The Town’s responsibility: Maintain effective internal controls There are limitations on internal controls. Regular risk assessment is important, including assessing the risk of fraud.

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ OPINION The Town’s responsibility: Financial Statements Accuracy, completeness, and propriety of balances, amounts, and disclosures

Greene Finney’s responsibility: 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Greene Finney’s responsibility: Opinion – reasonable assurance that financial statements are materially correct Does not address the financial condition of the Organization Purpose of the audit is not to detect fraud. We cannot take responsibility for finding fraud, if it existed. Issued unmodified opinion

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ General Fund Total fund balance decreased from $2,106k at 6/30/17 to $1,975k at 6/30/18; a decrease of $131k Restricted fund balance of $182k – primarily for cemetery fund and Envision Williamston.

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ General Fund Unassigned fund balance is $1,793k, a decrease of $139k from the prior year 52% of 2018 actual expenditures and 62% of 2019 budgeted expenditures GFOA recommends a minimum of 16.7% (two months)

10/1/2018 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Major Reasons To Maintain An Adequate Fund Balance: Cash flow through second half of calendar year; property taxes, business licenses and franchise fees are cyclical Planned future capital expenditures and significant repairs and maintenance Significant emergencies and unanticipated expenditures Flexibility for discretionary funding needs Potential for better interest rates on debt issues (can save the Town money). To cover potential shortfalls from the state (a) due to budget cuts or (b) as a result of the change in legislation Extremely important given the uncertain economic times

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ General Fund Revenues: $3,199k for 2018: $1,128k from property taxes $363k in franchise fees $397k in licenses and permits $250k in hospitality taxes $221k in sanitation fees $238k for resource officers $390k (13.9%) increase from 2017 Increase in property taxes of $77k Increase in grants of $59k Increase in resource officers of $72k Increase in other revenues of $77k $419k (15.1%) over budget Hospitality taxes $35k over budget Licenses and permits $72k over budget Other charges for services $28k over budget Grant revenue $73k over budget Other revenue $131k over budget

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ General Fund Expenditures: $3,426k for 2018: $1,368k in public safety $692k in general government $370k in public works $520k in recreation $418k in capital outlay $303k increase from 2017 General government increased $150k Recreation increased $137k Public safety increased $126k Public works decreased $57k Capital outlay decreased $86k $644k (23.2%) over budget Capital outlay $387k over budget General government $167k over budget Public safety $54k over budget

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Water Enterprise Fund Revenues of $1,102k for 2018, an increase of $76k compared to 2017 revenues of $1,026k Recurring water charges of $1,052k were up $73k (7.4%) Other revenues increased $3k to $50k Expenses of $954k for 2018, compared to $1,036k for 2017 Decreased pension costs ($111k) Change in Net Position of $111k in 2018, compared to a decrease of $10k in 2017 Net Position of $2,856k at 6/30/18, compared to $2,745k at 6/30/17 Total of $1,340k in Net Investment in Capital Assets Total of $1,516k in Unrestricted Net Position   Need a large net position for future infrastructure repairs and replacement (anticipate spending $1MM over current water line projects)

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Sewer Enterprise Fund Operating revenues of $1,168k for 2018, an increase of $111k compared to 2017 revenues of $1,057k Recurring sewer charges of $1,039k were up $110k (11.8%) Operating expenses of $1,102k for 2018, compared to $924k for 2017 Operating income of $66k for 2018, compared to $133k in PY Non-operating loss of $99k for 2018; 2017 non-operating income of $331k Decrease of $430K due to a decrease in grant revenue ($430k) Change in Net Position of ($33k) for 2018, compared to $464k in PY Net Position of $7,067k at 6/30/18, compared to $7,100k at 6/30/17 Total of $6,048k in Net Investment in Capital Assets Total of $367k in Restricted Net Position (primarily debt service) Total of $652k in Unrestricted Net Position Need large net position for infrastructure repairs & replacement Consent Order executed in July 2016 – additional operating costs

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Town-Wide (GASB #34) Net Position - $11,859k $9,105k Net investment in capital assets $550k Restricted $2,204k Unrestricted Revenues - $5,550k Expenses - $5,696k - $643k is non-cash depreciation Town-Wide (GASB #34) Assets - $19,998k $13,791k is capital assets $5,518k is cash and investments $690k in other assets Deferred Outflows of Resources - $688k Liabilities - $8,741k $4,991k is long-term obligations $3,027k is net pension liability Accounts payable and other accrued liabilities of $723k Deferred Inflows of Resources - $87k

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Long-Term Debt: The Town’s total outstanding long-term debt at 6/30/18 was $4,918k – decrease of $245k from 6/30/17: 2010A & 2010B Revenue Bonds (Sewer) - $3,353k, matures in 2051, with annual debt service of $162k 2017 Water Meter Lease (Water) - $1,366k, matures in 2027, with annual debt service of $171k 2017 Fire Truck Lease - $198k, matures in 2025, with annual debt service of $31k Total debt service payments for FY 2019 is expected to be $364k

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Internal Control No material weakness or significant deficiencies noted Management Letter Required communications to management and those charged with governance – No matters to report

2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Summary Unmodified opinion on the Financial Statements from Greene Finney General Fund and Water Fund are in very good financial condition as of June 30, 2018; Sewer Fund is in adequate financial condition The Town should begin developing long-range plans, such as a five-year plan for capital expenditures and related funding