Town of Bermuda Run Bermuda Run, North Carolina For the year ended June 30, 2021  Independent Auditor's Reports Basic Financial Statements Information Accompanying the Basic Financial Statements  And    Town of Bermuda Run Table of Contents June 30, 2021  Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements:  1-2 3-12  Government-wide Financial Statements:  Exhibit1 Exhibit2  Statement of Net Position Statement of Activities  13 14  Fund Financial Statements Exhibit3 3 Exhibit 4 Exhibit5 5 Exhibit6  Balance Sheet - Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures And Changes in Fund Balances of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances- - General Fund and Annually Budgeted Statement of Fund Net Position - Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Fund Statement of Cash Flows - Proprietary Funds  15 16  tot the Statement of Activities Special Revenue Fund  17 18 19 20 21 22-39  Exhibit7 Exhibit8 Exhibit9  Notes to the Financial Statements    Required Supplementary Information:  Schedule oft the Proportionate Share oft the Net Pension Asset-L Local Government Employees' Retirement System Schedule of Contributions - Local Government Employees'  40 41  Retirement System  Individual Funds Statements and Schedules:  Statement of Revenues, Expenditures, and Changes in Fund Balances- Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual- - General Capital Projects Fund-l US158 Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual - Special Revenue Fund - Gated Security Schedule of Revenues and Expenditures Budget and Actual- - (Non-GAAP)  Budget and Actual - General Fund  42-43 44 45 46-47 48 49  Sewer Fund  Other Schedules:  Schedule of Changes in Ad' Valorem Taxes Receivable  Analysis of Current Tax Levy  Compliance Section:  Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance  with Govemment Auditing Standards  50-51      TOwN OF  Bermidh ARm NORTH CAROLINA I20 Kinderton Boulevard, Suite IOO Bermuda Run, NC: 27006 336.998.0906 Fax 336.998.7209 townofbr.com  Management's Discussion and Analysis  As management oft the Town of Bermudal Run, we offer the readers oft the Town of Bermuda Run's financial statements this narrative overview and analysis of the financial activities of the Town of Bermuda Run for the fiscal year ended June 30, 2021. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the Town's financial statements, which  follow this narrative. Financial highlights  The assets and deferred outflows of resources of the Town of Bermuda Run exceeded its liabilities and deferred inflows of resources att the close oft thei fiscal year by $11,958,078 (net position). The government's total net positioni increased by $167,297, primarily due to business-type activities and As of the close of the current fiscal year, the Town of Bermuda Run's governmental funds reported combined ending fund balances of $2,332,259 with a net decrease of $713,186 in fund balance. Att the end of the current fiscal year, unassigned fund balance for the general fund was $1,669,052, or The Town of Bermuda Run's total debt increased by $27,269 due to an increase in accrued vacation of  ac conservative approach to spending.  Approximately 28% oft this total amount, or $663,207, is restricted or assigned. 93% oft total general fund expenditures for thet fiscal year. $2,287, and ani increase in net pension liability of $24,982.  Overview of the Financial Statements  This discussion and analysis is intended to serve as introduction to the Town of Bermuda Run's basic financial statements. The Town's basic financial statements consist of three components: 1) goverment- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the Town through the use of government- wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial  condition oft the Town of Bermuda Run.  3  A Vibrant Community of Vision    Management Discussion and Analysis Town of Bermuda Run Figure1  Required Components of Annual Financial Report  Management's Discussion and Analysis  Basic Financial Statements  Government-wide Financial Statements  Fund Financial Statements  Notes to the Financial Statements Detail  Summary  Basic Financial Statements  The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide Financial Statements. They provide both short and long-term information about the Town's financial status. Ther next statements (Exhibit 31 through 9) are Fund Financial Statements. These statements focus on the activities of thei individual parts of the Town's government. These statements provide more detail than the government-wide statements. There are three parts to the Fund Financial Statements: 1) the governmental fund statements 2) the budgetary comparison statements and 3)t the proprietary fund statements. The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the Town's individual funds. Budgetary information required  byt the General Statutes also can bei found int this part oft the statements.  4    Management Discussion and Analysis Town of Bermuda Run Government-Wide Financial Statements  The govemment-wide financial statements are designed top provide the reader with al broad overview oft the Town's finances, similar in format to a financial statement of a private-sector business. The government- wide statements provide short and long-term information about the Town's financial status as a whole. The two government-wide statements report the Town's net position and how they have changed. Net position is the difference between the Town's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the Town's The government-wide statements are divided into three categories: 1) govemmental activities 2) business- type activities and 3) component units. The governmental activities include most of the Town's basic services such as safety and security, transportation and administration. Property tax and state shared revenues finance these activities. The business-type activities are those that the Town charges customers to provide. These include sewer services offered by the Town. The final category is component unit. Although legally separate from the Town, the Tourism Development. Authority is important to the Town. The  financial condition.  Town exercises control over the Authority by appointing itsr members. The government-wide financial statements are on Exhibits 1 and 2 oft this report.  Fund Financial Statements  The fund financial statements (see Figure 1) provide a more detailed look at the Town's most significant activities. A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Bermuda Run, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance), with finance-related legal requirements, such as General Statutes or the Town's budget ordinance. All of the funds oft the Town of Bermuda Run can be divided into two categories: governmental funds and proprietary Governmental Funds - Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Town's basic services are accounted fori in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Government funds are reported using an accounting method called modified accrual accounting which provides a short term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him determine if there are more or less financial resources available tot finance the Town's programs. The relationship between governmental activities (reported ini the Statement of Net Position and the Statement of Activities) and governmental funds is described in a  funds.  reconciliation thati is part of thet fund financial statements.  5    Management Discussion and Analysis Town of Bermuda Run  The Town of Bermuda Run adopts an annual budget for the General Fund and Special Revenue Fund, as required by the General Statutes. The budget is a legally adopted document that incorporates input from the citizens oft the Town, the management of the Town, and the decisions oft the board about which services top provide and how to pay for them. It also authorizes the Town to obtain funds from identified sources to finance the current period activities. The budgetary statement provided for the General Fund and Special Revenue Fund demonstrates how well the Town complied with the budget ordinance and whether or not the Town succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented in the same format, language and classifications as the legal budget document. The statement shows four columns: 1) the original budget as adopted by the board 2) the final budget as amended by the board 3) the actual resources, charges to appropriations, and ending balances ini the General Fund and Special Revenue Fund, and 4) the differences or variance between the final budget and actual resources and charges. To account fort the difference between the budgetary basis ofa accounting and the modified accrual basis, a reconciliation showing the differences ini the reported activities is shown att the end of the budgetary statement. Proprietary funds = The Town of Bermuda Run has one type of proprietary fund. Enterprise Funds are used to report the same functions presented as business-type activities in the goverment-wide financial statements. The Town uses an enterprise fund to account for its sewer activity. This fund is the same as the functions shown in the business-type activities in the Statement of Net Position and Statement of Notes to the Financial Statements - The notes provide additional information that is essential to the full understanding of data provided in the government-wide and fund financial statements. The notes to the Other Information = In addition to the basic financial statements and accompanying notes, this report includes certain supplemental information detailing the information provided ini the basic financial statements and is presented to allow the reader to gain an in-depth understanding of the financial information interdependence with Other Entities The Town depends on financial resources flowing from, or associated with, both the Federal Govemnment and the State of North Carolina. Because of this dependency, the Town is subject to changes in specific flows of intergovernmental revenues based on moditications to Federal and State laws and Federal and State appropriations. Iti is also subject to changes ini investment earnings and asset values associated with U.S. Treasury Securities because of actions by  Activities.  financial statements begin on page 22 of this report.  presented.  foreign govemment and other holders of publicly held U.S. Treasury Securities.  6    Management Discussion and Analysis Town of Bermuda Run Government-Wide Financial Statements  Town of Bermuda Run's Net Position (Figure 2) Governemental Activities Business-Type Activities  Total 2021 2020  2021  2020  2021  2020  Current and other assets Capital assets Deferred outflows ofresources Total assets ando deferred outflows ofr resources Long-term! liabilities Otherl liabilities Deferred inflows ofr resources Total liabilities ando deferred inflows ofr resources Net position: Neti investment in capital assets Restricted for: Stabilization! by State Statute Streets Unrestricted Total net position  $2,401,151 $ 3,273,094 $ 2,206,466 $ 1,949,827 $ 4,607,617 $ 5,222,921 5,604,832 4,881,341 1,862,363 1,948,180 7,467,195 6,829,521 8,063,714 8,202,971 4,068,829 $3,898,007 12,132,543 12,100,978  57,731  48,536  57,731  48,536  113,528 53,380 4,820 171,728  86,259 217,125 6,729 310,113  113,528 56,117 4,820 174,465  86,259 217,208 6,729 310,196  2,737 2,737  83 83  5,604,832 4,881,341 1,862,363 1,948,180 7,467,195 6,829,521  1,006,430 249,102  1,006,430 249,102 310,334  60,065  60,065 310,334  1,031,621 2,641,118 2,203,729 1,949,743 3,235,350 4,590,861 $7,891,985 $ 7,892,858 $4,066,093 $ 3,897,924 $1 11,958,078 $ 11,790,782  As noted earlier, net position may serve over time as one useful indicator of a govemnment's financial condition. The assets and deferred outflows of resources of the Town exceeded liabilities and deferred inflows by $11,958,078 as of June 30, 2021. The Town's net position increased by $167,297 for the fiscal year ended June 30, 2021. However, thel largest portion (62%) reflects the Town's neti investment in capital assets (road improvements, equipment, machinery, utility plant) less any related debt still outstanding that was issued to acquire those items. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's net investment in capital assets is reported net of the outstanding debt, the resources needed to repay that debt must be provided by other sources, since capital assets cannot be used to liquidate these liabilities. An additional portion of the Town's net position, $1,255,532, represents resources that are subject to external restrictions  on! howi they may be used. The remaining balance of $3,235,350 is unrestricted.  7    Management Discussion and Analysis Town of Bermuda Run government net position:  Several particular aspects of the Town's financial operations positively influenced the total unrestricted  Continued diligence in the collection of property taxes by maintaining at tax collection percentage of  99.16%, compared toi the state average of 98.96%. Timely maintenance of Town assets tor maximize lives.  Town of Bermudal Run's Changes in Net Position (Figure3)  Governmental Activities 2021 2020  Business-type Activities 2021 2020  Total 2021 2020  Revenues Program revenues: Charges fors services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Other taxes Other Total revenues Expenses: General government Safely Gate operations Transportation Interest on long-term debt Sewer Total expenses Increasei inr net position before transfers Transfers Increase inr netp position Net position, July1 Net position, June 30  568,581 $ 512,652 $ 525,341 $ 527,122 $ 1,093,922 $ 1,039,774  61,969  61,896 770,000  61,969 882,278 465,766 538,186 1,049,225 79,553 576,021 812,003 358,022  61,896 770,000 849,843 486,533 557,664 960,164 87,740 545,210 732,997 302,500  882,278 849,843 465,766 486,533 537,336 556,814 1,049,225 960,164 79,553 576,021 812,003 732,997 2,516,802 2,326,111  850  850  2,515,930 3,237,738 526,191 527,972 3,042,121 3,765,710  87,740 545,210  358,022 302,500  358,022 302,500 2,874,824 2,628,611  (872) 911,626 168,169 225,472 (872) 911,626 168,169 225,472  167,297 1,137,098  167,297 1,137,098  7,892,858 6,981,231 3,897,924 3,672,452 114,790,782 10,653,683 $7,891,985 $7,892,858 $ 4,066,093 $ 3,897,924 $ 114,958,078 $11,790,782  8    Management Discussion and Analysis Town of Bermuda Run  Governmental activities. Governmental activities decreased the Town's net position by $872, thereby accounting for 0% of thei total growth in net position oft the Town. The increase in net position was the result of increased revenue generation, capital contributions as well as continued effort to control costs and manage expenditures. Management believes healthy investment in the Town will result in additional revenues, adding to the Town's net position by investing in capital assets which were largely funded by capital contribution revenues. Tax revenue remained steady in the current year. Town management acknowledges that 2021 was a successful year and plans on improving upon these approaches as a long-  term strategy to realize continued fiscal health. Key elements oft this decrease are as follows: Taxi revenues remained steady Road maintenance  Town council has adopted a conservative approach to general fund spending  Business-type activities: Business-type activities increased the Town's net position by $168,169, accounting for 100% of the total growth in the government's net position. Key elements oft this increase are  as follows:  Sewer charges remain steady Conservative approach tos spending Financial Analysis of the Town's Funds related legal requirements.  As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance- Governmental Funds: The focus of the Town's governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the Town's financing requirements. Specifically, unreserved fund balance can be a useful measure of a govemnment's The General Fund is the chief operating fund oft the Town. Att the end of the current fiscal year, the Town of Bermuda Run's fund balance available in the General Fund was $1,669,052, while total fund balance reached $2,924,584. The Town currently has an available fund balance of 93% of general fund At. June 30, 2021, the governmental funds oft the Town reported a combined fund balance of $2,332,259 with a net decrease in fund balance of $713,186. Included ini this change in fund balance are increases in the General Fund of $28,445, a decrease in the General Fund Capital Project of$ $751,164, and an increase  net resources available for spending at the end oft the fiscal year.  expenditures, while total fund balance represents 163% oft the same amount.  in Special Revenue Fund of$ $9,534.  9    Management Discussion and Analysis Town ofE Bermuda Run  General Fund Budgetary Highlights: During thei fiscal year, the Town revised the budget on one occasion. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments made to recognize new funding amounts from external sources, such as Federal and State grants; and 3) increases in appropriations that become necessary to maintain services. The Town amended the budget in order to account fort the road maintenance expenditures.  Proprietary Funds: The Town's proprietary funds provide the same type of information found in the government-wide statements but in more detail. Unrestricted net position in the Sewer Fund at the end of the fiscal year amounted to $2,203,729. The total change in net position was $168,169. Other factors concerning thei finances oft this fund have already been addressed int the discussion oft the Town's business-  type activities.  Capital Asset and Debt Administration  Capital Assets. The Town's investment in capital assets for its governmental and business-type activities as of June 30, 2021, totals $7,467,195 (net of accumulated depreciation). These assets include buildings,  roads, machinery and equipment, and construction in progress.  Major capital asset transactions during the year included thei following additions: Construction in progress- road improvements $874,364  Road improvements $141,806  Town of Bermudal Run's Capital Assets (net of depreciation) (Figure 4)  Govemmental Activities 2021 2020 3,101,626 3,119,290 392,700 428,400 381,640 382,011 25,856 122,992  Business-type Activities 2021 2020  Total 2021 2020 $1,703,010 $ 828,646 3,101,626 3,119,290 392,700 428,400 381,640 382,011 25,856 122,992  Constructioni inj progress $1,703,010 $ 828,646  Roadi improvements Buildings Other improvements Equipment andf furnishings Plant and distribution  1,862,363 1,948,182 1,862,363 1,948,182  $5,604,832 $ 4,881,341 $ 1,862,363 $ 1,948,180 $7 7,467,195 $6,829,521  Additional information on the Town's capital assets can be found in the Note ILA.4 of the Basic Financial  Statements.  10    Management Discussion and Analysis Town of Bermudal Run  Long-term Debt. As of June 30, 2021, the Town's long-term debt was made up oft thef following:  Town of Bermuda Run's Long-term Debt (Figure 5)  Governmental Activities 2021 2020 5,253 2,966 113,528 $ 86,259 $  Business-type Activities 2021 2020 $ $  Total 2021 2020 $ 108,275 $ 83,293 5,253 2,966 $1 113,528 $ 86,259  Pension related debt (LGERS) $ 108,275 $ 83,293 $  Compensated absences  Town of Bermuda Run's Outstanding Debt  The Town of Bermuda Run's total debt increased by $27,269 duet to an increase in accrued vacation of North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of thei total assessed value ofp property located within that government's boundaries. The Additional information regarding the Town's long- term debt can be found in Note I.B.6 oft this report. Thet following key economic indicators reflect the growth and prosperity of the Town.  $2,287, and ani increase in net pension liability of $24,982.  legal debt margin for the Towni is $46,945,227.  Economic Factors and Next Year's Budgets and Rates  The complete build out of Kinderton Village Residential Community with a new 73 unit single family Af fully operational 50 bed tower in for the Davie Medical Center - Bermuda Run Campus, as well The expansion of services for Bermudal Village Premier Retirement Community Increased commercial and retail growth in the Town and surrounding areas events. This facility produces over 18,000 room nights for the region  section  as ai fully operational joint replacement unit  Increased destination driven economic impact from Truist Sports Park for tournaments and special The completion and opening of the new R.I.S.E. 123,000 square foot indoor sports and events facility adjacent to Truist Sports Park. The facility is forecast to produce 20,000 room nights for the Continued increased use of WinMock at Kinderton for corporate events, weddings, and regional programs. WinMock produces between 8,000 and 10,000 room nights for the region. Work toward the recruitment of a 130 room boutiquelupscale hotel adjacent to WinMock at The completion of a 224 unit market rate apartment community, Comet-Bermuda Run, within the Kinderton Commercial Core area. This apartment community is fully leased and has a waiting list.  region.  Kinderton  11    Management Discussion and Analysis Town of Bermuda Run  Economic Factors and Next Year's Budgets and Rates (Continued)  Two new access streets to thel Kinderton Commercial Core area adding additional opportunities for The completed availability of sewer for a 125 acre undeveloped mixed-use zoned area called  mixed-use development  "Hillsdale at Bermuda Run" thati is ready for development. Budget Highlights fort thel Fiscal Year Ending June 30, 2022  Governmental Activities: Property tax revenues are expected to increase slightly in conjunction with new construction in the commercial areas, as well as renewed residential family home construction in the residential zoned areas. The Town has budgeted monies to enhance quality of life by interconnecting residential and retail areas with multi-use paths. Other revenues and expenses are expected to remain The Town has chosen not to appropriate fund balance in the fiscal year 2022 budget. Management believes that increased revenues and continued restrictions on spending will maintain the Town's financial position. As the Town considers future revenue sources, it has determined that a $0.01 increase in the property tax rate will result in additional revenues of approximately $58,189 at current values and collection rate. Though management believes current growth will generate enough revenue to support Town operations, a careful analysis of property taxi revenue will be considered int future years' budgets. Business-type Activities: Revenues for the 2021-2022 year are expected to increase slightly due to projected volume increase in sales tax distribution from the State of North Carolina. However, this will be tempered with a change from per capita to ad valorem method of sales tax distribution by the Davie County  consistent with the 2020-2021 fiscal year.  Commissioners. Requests for Information  This report is designed to provide an overview oft the Town's finances for those with an interest int this area. Questions concerning any oft thei information found ini this report or requests fora additional information should be directed to the Town Manager, Town of Bermuda Run, 120 Kinderton Blvd, Suite 100, Bermuda Run, NC  27006.  12    Exhibit1  Town of Bermuda Run, North Carolina Statement of Net Position June 30, 2021  Component Unit Town of Bermuda Run Tourism Development Authority  Primary Government Business-type Activities  Governmental Activities  Total  ASSETS Current assets: Cash andi investments Propertyt taxes receivable (net) Due (to) from other funds Accounts receivable (net) Restricted cash Total current assets Non-current assets: Capital assets (Note 4): Construction inj progress Other capital assets, neto of depreciation Total Capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Pension deferrals Total deferredi inflows of resources LIABILITIES Current! liabilities: Accounts payable Long-term! liabilities: Netp pension liability Accrued vacation Totall liabilities DEFERRED INFLOWS OF RESOURCES Pension deferrals Total deferredi inflows ofr resources NET POSITION Neti investmenti in capital assets Restrictedi for: Stabilization by State Statute Streets Tourism Development Unrestricted Total net position  $ 1,939,918 $ 2,232,443 $ 4,172,361 $  15,511 25,978 170,643 249,102 2,401,151 1,703,010 3,901,822 5,604,832 8,005,983 57,731 57,731  15,511 170,643 249,102 4,607,617 1,703,010 5,764,185 7,467,195 12,074,812 57,731 57,731  (25,978) 2,206,466  12,116 200,463 212,579  1,862,363 1,862,363 4,068,829  212,580  53,380 108,275 5,253 166,908 4,820 4,820 5,604,832 1,006,430 249,102 1,031,621  2,737  56,117 108,275 5,253 169,645 4,820 4,820 7,467,195 1,006,430 249,102 3,235,350  2,737  1,862,363  12,116 200,463 212,580  2,203,729  7,891,985 $ 4,066,093 $ 11,958,078 $  The accompanying notes are ani integral part oft thei financial statements  13    e i    Exhibit3  Town of Bermuda Run, North Carolina Governmental Funds Balance Sheet June 30, 2021  Major Capital Project US158  Total Governmental Funds 249,102 25,978 15,511 170,643 2,401,151  Special Revenue  General 1,720,886 $ 249,102 835,788 15,511 170,643  ASSETS Cash andi investments Restricted cash Due (to)f from other funds Property taxes receivable (nei) Accounts receivable (net) LIABILITIES Accounts payable  $ 219,032 $ 1,939,918  (809,811)  2,991,929 $ (809,811) $ 219,032  $ 51,834 $ 51,834 15,511 15,511 1,006,430 249,102 1,669,052 2,924,584 : 2,991,929 $ (809,811)  $ 1,547 $ 53,380 1,547  53,380 15,511 15,511 1,006,430 249,102 (809,811) 217,485 1,669,052 2,332,259  DEFERRED INFLOWS OF RESOURCES Property taxes receivable Total deferred inflows ofr resources Fund balances: Restrictedi for: Stabilization bys states statute Streets Capital project Assignedi for gate operations Unassigned Total Fund! Balances Total liabilities, deferredi inflows ofr resources and fund! balances Amounts reported for governmental activities int the statement ofr net position (Exhibit 1) arec different because: Capital assets usedi ing governmental activities are not financial resources andi therefore arer not reportedi int thei funds. ofr resources ont the Statement of Net Position Liabilities fore eamedi revenues considered deferred inflows ofr resources inf funds statements. Pension related deferrals governmental activities: Accrued vacation Netp position oft the governmental activities  (809,811) (809,811)  217,485 217,485 219,032  5,604,832 (108,275) 57,731 15,511 (4,820)  Net pension liability  Contributions tot thep pension plani int thec current fiscal year are deferred outflows  Somel liabilities, including bonds payable, are not duea and payablei int the current period and aret therefore notr reportedi int the net position oft the  (5,253) 7,891,985  Thea accompanyingr notes are ani integral part oft thet financial statements  15    Exhibit4  Town of Bermuda Run, North Carolina Governmental Funds For the' Year Ended June 30, 2021  Statement of Revenues, Expenditures and Changes in Fund Balance  Major Capital Project US158  Total Governmental Funds $ 877,291 465,766 209,732 255,759 8,560 568,581 125,253 2,510,944 123,200 2,634,144 959,037 79,553 559,048 1,626,491 3,224,129 123,200 3,347,329 (713,186) 3,045,445  Special Revenue $  General 877,291 $ 465,766 209,732 255,759 8,560 125,253 1,942,362  Revenues: Ad Valorem taxes Other taxes andl licenses Unrestrictedi intergovernmental revenues Restricted intergovernmental revenues Investment earnings Gatet fees Other revenues Other financing sources: Proceeds from! long-term debt Transfers in Capital contributions Appropriated fundi balance Total revenues and other sources Expenditures: General government Safety Gate operations Transportation Debts service Other Financing Uses: Transfers out Total Expenditures and Other Uses Excess ofr revenues and other sources over (under) expenditures and other uses Fund Balances Beginning of year,. July1 End of year, June 30  568,581 568,581  123,200 123,200  1,942,362 959,037 79,553 752,127 1,790,717 123,200 1,913,917 28,445 2,896,139  568,581  559,048 559,048  874,364 874,364  874,364 (751,164) (58,646)  559,048 9,534 207,952  2,924,584 $ (809,811) $ 217,485 $ 2,332,259  The accompanying notes are ani integral part oft the financial statements  16    Exhibit 5  Town of Bermuda Run, North Carolina Governmental Funds Fort the Year Ended June 30, 2021  Statement of Revenues, Expenditures and Changes in Fund Balance  Amounts reported for governmental activities ini thes statement ofa activities are different because:  Neto changes ini fund! balances total governmental funds  $ (713,186)  Governmental funds report capital outlays as expenditures. However, int the Statement ofA Activities, the cost oft those assets is allocated over their estimated usefull lives andi reported as depreciation expense. Thisi ist the amount by which capital outlays exceeded depreciation for the current period.  Capital outlay Construction inj progress Depreciation  141,806 874,364 (292,678)  723,492 4,987  Revenues int the statement ofa activities that do not provide current financial resources: are not reported as revenuesi in thet funds. Change in unavailable revenue fort tax revenues Changes inp pensione expense Changes inr net pension assets Changes inc deferred outflows Changes inr net pension liability Changes in deferred inflows  9,195 (24,982) 1,909  (13,878)  Thei issuance ofl long-term debtp provides currentf financial resources to governmental: funds, whilet the repayment oft thep principal ofl long-term debt consumes the current financial resources ofg govemmental funds. Neither transaction has anye effect on net position. This amount ist ther net effect oft these differences int thet treatment ofl long-term debt Some oft the expenses reported int the statement of activities do not require the use ofo current financial resources and, therefore, are notr reported as  andr relatedi items.  expenditures in governmental funds. Compensated absences Total changesi in net position of governmental activities  (2,287) (872)  $  The accompanying notes are ani integral part oft thei financial statements  17    6    Exhibit7  Town of Bermuda Run, North Carolina Proprietary Funds Statement of Fund Net Position June 30, 2021  Assets Current assets: Cash andi investments Accounts receivable (net) Total current assets Noncurrent assets: Capital assets:  $2,232,443 2,232,443  Other capital assets, net of depreciation Total non-current: assets Total assets Liabilities Current liabilities: Current maturities on long-term debt Accounts payable Due to other funds Total currentl liabilities Long-terml liabilities: Duei inr more than one year Total liabilities Net Position Neti investment in capital assets Unrestricted  1,862,363 1,862,363 4,094,807  2,737 25,978 28,714  28,714 1,862,363 2,203,729 $4,066,093  Total net position ofb business-type activities  The accompanying notes are ani integral part of thef financial statements  19    Exhibit 8  Town of Bermuda Run, North Carolina Proprietary Funds For the Year Ended June 30, 2021  Statement of Revenues, Expenses and Changes in Fund Net Position  Operating revenues: Sewer charges Operating expenses: Administration Sewer operations Depreciation  $  525,341 525,341 51,010 221,195 85,817 358,022 167,319  Operatingi income Nonoperating revenue (expense): Interesti income Otheri income  850 850 168,169  Total nonoperating revenue (expense) Income before operating transfers Operating transfers in (out)  Change in net position business type activities  168,169 3,897,924 $ 4,066,093  Total net position July1 Total net position June 30  The accompanying notes are an integral part of the financial statements  20    Exhibit9  Town of Bermuda Run, North Carolina Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2021  Cash flows from operating activities: Cash received from customers Cash payment tos suppliers of goods and services Cash payment to employees and benefits Net Cash Provided By Operating Activities Cashi flows from noncapital financial activities: Transfer from General Fund Increasei ini interfund payable  $ 525,341 (269,553) 255,788  25,978 25,978  Net Cash Provided by Noncapital Financing Activities Cash from capital and related financing activities:  Interest paid Payments on long-term debt Purchase of capital assets  Net Cash Used by Capital and Related Financing Activities Cashi flows fromi investing activities: Interest oni investments Net Cash Provided by! Investing Activities Net Increase (Decrease) In Cash Cash- Beginning of Year, July 1 Cash End of Year, June 30  850 850 282,616 1,949,827 2 2,232,443  Adjustments to Reconcile Net Operating Income to Net Cash Provided by Operating Activities: Changes in current assets and liabilities: (Increase) decrease in accounts receivable Increase (decrease) in accounts payable Net Cash Provided (Used) By Operating Activities  Net operating income Depreciation  $ 167,319 85,817 2,654 255,788 $  Interest paid  The accompanying notes are ani integral part oft thef financial statements  21    Town of Bermuda Run, North Carolina NOTES TO FINANCIAL STATEMENTS As of ort for the Year Ended. June 30, 2021  Description of the unit  The Town of Bermudal Runi is located in Davie County, which is in the Piedmont area of North Carolina. The Town has aj population of approximately: 2,811 and covers approximately two thirds of one square mile. The  Town provides sewer services to its residents. LS Summary of Significant Accounting Policies ther more significant accounting policies: A. Reporting entity  The accounting policies of the Town of Bermuda Run and its discretely presented component unit conform to generally accepted accounting principles as applicable to governments. The following is a summary of  The Town of Bermuda Run is a municipal corporation governed by an elected mayor and council. As required by generally accepted accounting principles, these financial statements present the Town and its component unit, a legally separate entity for which the Town is financially accountable. The discretely presented component unit presented below is reported in a separate column in the Town's financial  statements in order to emphasize thati iti is legally separate fort the Town. Town of Bermuda Run Tourism Development Authority  The Town of Bermuda Run Tourism Development Authority was established December 1, 2010 for the purpose of collecting a 3% occupancy tax to be used for the promotion of tourism in Bermuda Run. The members oft the Tourism Development Authority's governing board are appointed by the Town. The Tourism Development Authority, which has a June 30 year-end, is presented as if it were a special revenue fund. Information concerning the Tourism Development Authority can be obtained by contacting the Finance  Officer, Town of Bermuda Run, Bermuda Run, NC.  B. Basis ofpresentation  Govemment-wide Statements: The statement of net position and the statement of activities display the information about the government and its component unit. These statements include the activities of the overall government. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the Town. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non- exchange transactions. Business-type activities are financed in whole or part by fees charged to external The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Town and for each function of the Town's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods and services offered by the programs and (b) grants and contributions that are restricted to meeting the operational and capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.  parties.  22    Notes to the Financial Statements (continued)  B. Basis of presentation (continued)  Fund Financial Statements: The fund financial statements provide information about the Town's funds. Separate statements for each fund category - governmental and proprietary - are presented. The Town has no fiduciary funds to report. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining govemmental and enterprise funds Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially the equal values. Non-operating revenues, such as subsidies and  are aggregated and reported as non-major funds.  investment earnings, result from non-exchange transactions or ancillary activities.  The Town reports thet following major governmental funds:  General Fund  The General Fund is the general operating fund of the Town. Itis used to account for allf financial resources except those required to be accounted for in other funds. The primary revenue sources are ad valorem taxes and state-shared revenues. The primary expenditures are for streets and general government  services. Special Revenue Fund  The Special Revenue Funds account for specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specific purposes. The Town maintains one  Special Revenue Fund, the Gated Security Fund. The Town reports thet following major enterprise funds:  Sewer Fund  The Town maintains an Enterprise Fund, the Sewer Fund, to account for its sewer services. This fund is Itis the intent of the governing body that costs (expenses, including depreciation) of providing these services to the public on a continuing basis be financed or recovered primarily through user charges. Therefore, periodic accounting is necessary for determination of net income and rate control.  financed and operated int the same manner as ap private business enterprise.  C.M Measurement Focus and Basis of Accounting using the modified basis of accounting.  Ina accordance with North Carolina General Statutes, all funds of the Town are maintained during the year Govemment-wide and Proprietary Fund Financial Statements: The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses recorded at the time liabilities are incurred regardless of when the related cash flows take place. Non-exchange transactions, in which the Town gives (or receives) value  23    Notes to the Financial Statements (continued)  C. Measurement Focus and Basis of Accounting (continued)  without directly receiving (or giving) equal value in exchange, including property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility 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 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 oft the Town enterprise fund are charges to customers for sales and services. The Town also recognizes as operating revenue the portion of tap feesi intended to recover the cost of connecting new customers to the sewer system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this Govemmental Fund Financial Statements: Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long- term debt and acquisitions under capital leases are reported as other financial sources. The Town considers all revenues available if they are collected within 90 days after year end, except for property taxes. Ad valorem taxes receivable are not accrued as revenue because the amount is not susceptible to accrual. At. June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations of the current year. Also, as of September 1, 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which they are received. Uncollected taxes that were billed in periods prior to September 1, 2013 and for limited registration plates are shown as a receivable ini these financial statements and are offset by deferred inflows of resources. Sales taxes and certain intergovermental revenues, such as the beer and wine tax, collected and held by the State at year-end on behalf of the Town are recognized as revenue. Sales taxes are considered shared revenue for the Town because the taxi is levied by Davie County and then remitted to and distributed by the State. Most intergovernmental revenues and sales and services are not susceptible to accrual because generally they are not measurable until received in cash. All taxes, including those dedicated for specific  requirements have been satisfied.  as program revenues. Likewise, general revenues include allt taxes.  definition are reported as non-operating revenues and expenses.  24    Notes to the Financial Statements (continued)  C.M Measurement. Focus and Basis of Accounting (continued)  purposes are reported as general revenues rather than program revenues. Under the terms of grant agreements, the Town funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there is both restricted and unrestricted net position available tot finance the program. Itis the Town's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then  general revenues. D.B Budgetary data  The Town's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund, the Gated Security Special Revenue Fund and the Enterprise Fund. All annual appropriations lapse at the fiscal-year end. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the departmental level for all annually budgeted funds and at the project level fort the multi-year funds. The Town does not have a current  policy which allows for departmental transfers without council approval. E.A Assets, Liabilities, Deferred Outflows/nflows of Resources, and Fund Equity:  1. Deposits and Investments  All deposits of the Town and the Tourism Development Authority are made in board-designated official depositories and are secured as required by State law (G.S. 159-31). The Town and the Tourism Development Authority may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Town and the Tourism Development Authority may establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts, and State law [G.S. 159-30(c)] authorizes the Town and the Tourism Development Authority to invest in obligations oft the United States or obligations fully guaranteed both as to principal and interest by the United States, obligations of the State of North Carolina, bonds and notes of any North Carolina local government or public authority, obligations of certain non-guaranteed federal agencies, certain high quality issues of commercial paper and bankers' acceptances, and the North Carolina Capital Management Trust (NCCMT). The Town's and the Tourism Development Authority investments are reported at fair value. Non- participating interest earning contracts are accounted for at cost. The NCCMT Government Portfolio, a SEC-registered (2a-7) money market mutual fund, is measured at fair value. Because the NCCMT Government Portfolio has a weighted average maturity of less than 90 days, it is presented as an investment with a maturity of less than 61 months. The Town does not have ai formal investment or credit risk  certificates of deposit.  policy.  2. Cash and Cash Equivalents  The Town pools money from several funds to facilitate disbursements and investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered cash and cash equivalents. The Tourism Development Authority considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash  and cash equivalents.  25    Notes to the Financial Statements (continued)  3. Restricted. Assets  Powell Bill funds are classified as restricted cash because it can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through  136-41.4.  Town of Bermua Run Restricted Cash Governmental Activities General Fund Total Restricted Cash  Streets $249,102 $249,102  4. Ad Valorem Taxes Receivable  Ina accordance with State law (G.S. 105-347 and G.S. 159-13(a)), the Town levies ad valorem taxes on July 1, the beginning oft the fiscal year. The taxes are due on September 1; however, interest does not accrue until the following January 6. These taxes are based on the assessed values as of January 1, 2020. As allowed by State law, the Town has established a schedule of discounts that apply to taxes which are paid prior to the due date. In the Town's General Fund, ad valorem tax revenues are reported net of such  discounts.  5. Allowances for Doubfful Accounts  Allr receivables thatl historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. This account is estimated by analyzing the percentage of receivables that were written offi in prior  years. 6. Capital Assets  Capital assets are defined by the government as assets with an initial, individual cost ofr more than $2,500 and an estimated useful life of more than two years. Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. General infrastructure assets acquired prior to July 1, 2003, consist of the road network and improvements that were acquired or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value oft the asset or materially extend assets' lives are not Capital assets are depreciated using the straight-line method over thei following estimated useful lives:  capitalized.  Asset Class Roadi improvements Furniture and office equipment Infrastructure  Useful Life- -Yrs 25 10-15 15-40  26    Notes tot the Financial. Statements (continued)  7. Deferred Outflows/Inflows of Resources  Ina addition to assets, the statement of financial position will sometimes report as separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to ai future period and SO will not be recognized as an expense or expenditure until then. The Town has one that meet this criterion, contributions made to the pension plan in the 2021 fiscal year. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial element, Deferred Inflows of Resources, represents an acquisition ofr net position that applies to a future period and sO will not be recognized as revenue until then. The Town has one item that meets the criterion for this category -deferrals of pension expense that result from thei implementation of GASB Statement 68. Int 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 statements of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method that approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance cost, except for prepaid insurance costs, are expensed in the reporting period in which they are incurred. Prepaid insurance costs are expensed over Int 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 ported as other financing uses. Issuance costs, whether or not withheld  8. Long-Term Obligations  the life of the debt.  from the actual net proceeds received, are reported as debt service expenditures.  9. Compensated. Absences  The vacation policy of the Town provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when eamed. For the Town's government-wide funds, an expense and liability for compensated absences and the salary-related payments are recorded as the leave is earned. The Town has not recognized a current! liability duet tot the immaterial nature of this liability. The Town's sick leave policy provides for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination ofl length of service for retirement benefit purposes. Since the Town does not have any obligation for the accumulation ofs sickl leave untili iti is actually taken, no accrual for sick leave has been made.  10. Net Position/ Fund Balances  Net Position  Net position in government-wide and proprietary fund financial statements are classified as net investment in capital assets, net of related debt; restricted and unrestricted. Restricted net position represent constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or  regulations of other govemments or imposed byl lawi through state statute.  27    Notes to the Financial Statements (continued)  10. Net Position/ Fund Balances (continued)  Fund Balances  Int the governmental fund financial statements, fund balance is composed ofi five classifications designed to  disclose the hierarchy of constraints placed on howi fund balance can be spent. The governmental fund types classify fund balances asi follows:  Nonspendable Fund Balance - This classification includes amounts that cannot be spent because they are either (a) noti in spendable form or (b) legally or contractually required to bei maintained intact. Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes  externally imposed by creditors ori imposed byl law.  Restricted for Stabilization by State statute portion of fund balance that is restricted by State Restricted for Streets - Powell Bill portion of fund balance that is restricted by revenue source for street construction and maintenance expenditures. This amount represents the balance of the total Committed Fund Balance -portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum of Town of Bermuda Run's governing body (highest level of decision-making authority). The governing body can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action Assigned fund balance - portion of fund balance that Town of Bermuda Run intends to use for specific  Statute [G.S. 159-8(a)).  unexpended Powell Billi funds.  ist taken (he adoption of another ordinance) to remove or revise thel limitation.  purposes.  Gate Operations - portion of fund balance that intended to be used for the security gate Unassigned fund balance - the portion off fund balance that has not been restricted, committed, or assigned The Town of Bermuda Run has ai revenue spending policy that provides guidance forp programs with multiple revenue sources. The Finance Officer will use resources ini the following hierarchy: bond proceeds, federal funds, State funds, local non-town funds, town funds. For purposes of fund balance classification expenditures are to be spent from restricted fund balance first, followed by in-order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority  operations.  tos specific purposes or other funds.  to deviate from this policy ifiti isi in the best interest of the Town.  28    Notes to the Financial Statements (continued)  11. Defined Benefit Cost-Sharing Plans  For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental Employees' Retirement System (LGERS) and additions toldeductions from LGERS' fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town of Bermuda Run's employer contributions are recognized when due and the Town of Bermuda Run has al legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms ofL LGERS. Investments are reported at fair value. A. Material Violations of Finance-Related. Legal and Contractual Provisions: None  II.S Stewardship, Compliance, and Accountability:  B. Excess of Expenditures over Appropriations: None II. Detail Notes on AlI Funds and Account Groups:  A. Assets: 1. Deposits  All the deposits of the Town and the Tourism Development Authority are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Town's or the Tourism Development Authority's agents in these units' names. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent ini the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Town and the Tourism Development Authority, these deposits are considered to be held by the Town's and the Tourism Development Authority's agents in their names. The amount of the pledged collateral is based on an approval averaging method for non-interest bearing deposits and the actual current balance for interest- bearing deposits. Depositories using the Pooling Method report tot the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Town, the Tourism Development Authority, or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged fort the Town and the Tourism Development Authority under the Pooling Method, the potential exists to undercolaterzation, and this riski mayi increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Town has no formal policy regarding custodial credit risk for deposits, but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions andi to monitor them for compliance. The Town complies with provisions of GS 159-31 when designating official depositories and verifying that deposits are properly secured. The Tourism Development. Authority has no formal policy regarding custodial  credit riski for deposits.  29    Notes to the Financial Statements (continued)  1. Deposits (continued)  At June 30, 2021, the Town's deposits had a carrying amount of $4,104,210 and a bank balance of $4,142,472. The bank balances oft the Town were covered by $250,000 of federal depository insurance. The remaining balance of deposits is collateralized under the Pooling Method as enumerated above. At. June 30, 2021, the TDA's deposits had a carrying amount of $200,463 and al bank balance of $200,463. The bank balances of the TDA were covered by $250,000 of federal depository insurance. Any excess  balance ofo deposits is collateralized under thel Pooling Method as enumerated above.  2. Investments credit risk.  At. June 30, 2021, the Town had $317,253 invested with the North Carolina Capital Management Trust Cash Portfolio which carried a credit rating of AAAm by Standard and Poor's. The Town has no policy regarding  3. Receivable- - Allowances for Doubtful Accounts 30, 2021 arer net of the following allowances for doubtful accounts:  The amounts presented in the Balance Sheet and the Statement of Net Position for the year ending June  Fund None  June 30,2021 -0-  4. Capital Assets Primary Government  Capital asset activity for the Primary Government for the yeare ended. June 30, 2021:  Beginning Balances  Ending  Increases (Decreases) Balances  Governmental activities: Capital assets not being depreciated: Construction inj progress Capital assets being depreciated: Roadi improvements Building Otheri improvements Equipment andi furnishings Total capital assets being depreciated: Less, accumulated depreciation for: Roadi improvements Building Otheri improvements Equipment Total accumulated depreciation Governmental activity capital assets, net  828,646 $ 874,364 $ $ 4 4,936,758 $ 141,806 $ 892,500 1,171,461 595,625 7,596,344 1,817,468 464,100 789,450 472,633 3,543,651  $1 1,703,010 $5 5,078,564 892,500 1,171,461 595,625 7,738,150 1,976,939 499,800 865,770 493,821 3,836,330 $5,604,832  141,806 159,471 35,700 76,320 21,188 292,679  $4,881,341 $ (150,873) $  30    Notes to the Financial Statements (continued)  4. Capital Assets Primary Government (continued)  Depreciation expense was charged to functions of the primary govemment as follows:  General government Gate operations Transportation  $7 74,023 16,973 201,683 $292,679  Beginning Balances  Ending  Increases Decreases Balances  Business-type activities: Sewer fund: Capital assets not! being depreciated: Sewer construction Capital assets being depreciated: Plant and distribution Total capital assets being depreciated: Less, accumulated depreciation for: Plant and distribution Total accumulated depreciation Business-type activity capital assets, net Construction commitments  $  $  $  $ 3,313,403 3,313,403 1,451,038 1,451,038 $1,862,363  3,313,403 3,313,403 1,365,221 1,365,221  85,817 85,817  $1,948,180 $ (85,817) $  The govemment has active construction projects as of June 30, 2021. At year-end, the government's  commitments with contractors are as follows:  Remaining  Project  Spent-to-date Commitment 1,703,011 $ 60,600  General Capital Project-US158  31    Notes to the Financial Statements (continued)  B. Liabilities:  1. Pension Plan Obligations:  a. Local Governmental Employees' Retirement System  Plan Description. The Town is a participating employer in the statewide Local Governmental Employees' Retirement System (LGERS), a cost-sharing muliple-employer defined benefit pension plan administered by the State of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local govemmental entities. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management oft the plan is vested in the LGERS Board of Trustees, which consists of 13 members = nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, andi the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees' Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State's CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member's average final compensation times the member's years of creditable service. A member's average final compensation is calculated as the average of a member's four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age (15) years of creditable service fori firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit forl life orar return of the member's contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon LGERS plan members who are LEOS are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or a return oft the memberscontriputions. Contributions. Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. Town employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Town's contractually required contribution rate for the year ended June 30, 2021, was 10.15% for general employees actuarially determined as an amount that, when combined with employee  ora at Www.0sc.nc.gov.  actuarial gains of the plan.  32    Notes to the Financial Statements (continued)  a. Local Governmental Employees' Retirement System (continued)  contributions, is expected to finance the costs of benefits eared by employees during the year. Contributions to the pension plan from the Town were! $20,416 for the year ended. June 30, 2021. Refunds of Contributions - Town employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual's Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of At. June 30, 2021, the Town reported a liability of $108,275 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2019. The total pension liability was then rolled forward to the measurement date of June 30, 2020 utilizing update procedures incorporating the actuarial assumptions. The Town's proportion of the net pension liability was based on a projection of the Town's long-term share of future payroll covered by the pension plan, relative tot the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2021, the Town's proportion was 0.00303% (measured as of June 30, 2020), which was a decrease of0.00002% from its proportion as of. June 30, 2020 (measured as of June 30, 2019). For the year ended June 30, 2021, the Town recognized pension expense of $34,294. At. June 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions  rightt to employer contributions or any other benefit provided by LGERS.  Resources Related to Pensions  from the following sources:  Deferred Outflows Deferred Inflows  of Resources $  of Resources  Differences between expected and actual experience Net difference between projected and actual eamings on Changes in proportion and differences between Town contributions and proportionate share of contributions Town contributions subsequent to the measurement date  13,673 $ 8,058 15,237 347 20,416 57,731 $  Changes of assumptions pension plani investments  4,820 4,820  Total  $  33    Notes to the Financial Statements (continued)  a. Local Governmental Employees' Retirement System (continued)  $20,416 reported as deferred outflows of resources related to pensions resulting from Town contributions subsequent to the measurement date will be recognized as a decrease oft the net pension asset int the year ended June 30, 2022. Other amounts reported as deferred inflows ofr resources related to pensions will be  recognized in pension expense as follows:  Year ended. June 30: 2022 2023 2024 2025 2026 Thereafter  $  8,964 12,065 6,956 4,509  Actuarial Assumptions. The total pension liability in the December 31, 2019 actuarial valuation was determined using thei following actuarial assumptions, applied to all periods included in the measurement:  Inflation Salary increases Investment rate of return  3.0 percent productivity factor including inflation  3.50 percent to 8.10 percent, including inflation and 7.00 percent, net ofp pension plan investment expense,  The plan actuary currently uses mortality rates based on the RP-2014 Total Data Set for Healthy Annuitants Mortality Table that vary by age, gender, employee group (ie. general, law enforcement officer) and health status (e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an actuarial experience study for the period. January 1,2010 through December 31, 2014. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated forr multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis oft the equity risk premium and thet fixed income return projections. Other asset categories and strategies' return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2020 are  provision to. reflect future mortality improvements.  included ini the measurement.  summarized int the following table:  34    Notes to the Financial Statements (continued)  a. Local Governmental Employees' Retirement System (continued)  Long-Term Expected Real Rate of Return  Asset Class Fixed Income Global Equity Real Estate Alternatives Credit Inflation Protection Total  Target Allocation  29.0% 42.0% 8.0% 8.0% 7.0% 6.0% 100%  1.4% 5.3% 4.3% 8.9% 6.0% 4.0%  The information above is based on 30 year expectations developed with the consulting actuary for the 2019 asset, liability, and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates ofr return are calculated from nominal rates by multiplicatively subtracting a long-term inflation Discount rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cashi flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of Sensitivity oft the Town's proportionate share of the net pension asset to changes in the discount rate. The following presents the Town's proportionate share of the net pension asset calculated using the discount rate of7.00 percent, as well as what the Town's proportionate share of the netp pension asset or net pension liability would bei ifit it were calculated using a discount rate that is one percentage point lower (6.00 percent)  assumption of 3.00%. All rates of return and inflation are annualized.  projected benefit payments to determine thet total pension liability.  or one percentage point! higher (8.00 percent) than the current rate:  1% Decrease (6.00%) $  Discount Rate (7.00%)  1% Increase (8.00%) 15,691  Town's proportionate share oft the net pension liability (asset)  219,678 $ 108,275 $  Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North  Carolina.  35    Notes to the Financial Statements (continued)  b. Law Enforcement Officers Special Separation. Allowance  The Town contracts all security and has no eligible law enforcement employees.  C.S Supplemental Retirement Income Plan  The Town contracts all security and has no eligible law enforcement employees.  Plan Description. The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and al Board of Trustees. The Plan provides retirement benefits to employees employed by the Town. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Supplemental Retirement Income Plan for employees is included in the Comprehensive Annual Financial Report (CAFR) fori the State of North Carolina. The State's CAFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for employees. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919)981-5454. Funding Policy. Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to five percent ofe each employee's salary, and all amounts contributed are vested immediately. Also,  the employees may make voluntary contributions toi the plan.  The Town made contributions of $2,9791 fori the reporting year. No amounts were forfeited.  d. Other Post-employment Benefits  The Town has not established policies concerning postemployment benefits as of. June 30, 2021.  2. Deferred Outflows and Inflows of Resources Deferred outflows ofr resources are comprised oft thei following:  Source  Amount $ 13,673 8,058 12,237 347 20,416 54,731  Differences between expected and actual experience Net differencel between projected and actual eamnings on Changes in proportion and differences between employer contributions and proportionate share of contributions Town contributions subsequent tot the measurement date  Changes in assumptions pension plan investments  Total  $  36    Notes to the Financial Statements (continued)  2. Deferred Outflows and Inflows of Resources (continued) Deferred inflows ofr resources at year-end are comprised oft thet following:  Statement of Net General Fund  Position $  Balance Sheet $ 15,511  Taxes Receivable, less penalties (General Fund) Differences between expected and actual experience  Changes in assumptions  Changes inj proportion and differences between employer contributions and proportionate share of contributions  4,828 4,828 $  Total  $  15,511  3. Risk Management  The Town is exposed to various risks ofl loss related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town participates in three self- funded riski financing pools administered by the North Carolina League of Municipalities. Through these pools, the Town obtains general liability and auto liability coverage of $3 million per occurrence, property coverage up to $20 million per building per occurrence, workers' compensation coverage up to the statutory limits, and employee health coverage up to a $1 million lifetime limit. The pools are reinsured through commercial companies for single occurrence claims against general liability and auto liability in excess of $500,000, up to $500,000 for property, and $250,000 upt to $5 million for workers' compensation. The pools are reinsured for annual employee health claims in excess of $150,000. The properly liability pool has an aggregate limit of $1,000,000 fort the aggregate losses in as single year. After the property pool has paid out $1,000,000, then the pool will be liable for a $10,000 per claim maintenance deductible on future property The Town has a public officials bond of $50,000 on the Finance Officer and $10,000 on the Tax Collector.  losses fori that year. The remainder ofe each claim willl be borne by the re-insurer.  The Town currently has no flood insurance coverage.  4. Long-Term Obligations: a. Changes in Long-term Liabilities Governmental activities: Installment Note Net Pension Liability (LGERS) Accrued' Vacation  Balance $  Balance Current Portion  June 30, 2020 Increases Decreases June 30, 2021 of Balance  $ 83,293 24,982 2,966 2,287  $ $ 108,275 5,253 $ 113,528 $  $ 86,259 $ 27,269 $  37    Notes to the Financial Statements (continued)  a. Changes in Long-term Liabilities (continued)  Compensated absences for governmental activities have typically been liquidated ini the General Fund. At June 30, 2021, the Town of Bermuda Run had bonds authorized but un-issued of $-0- and al legal debt  margin of$46,945,227. C. Interfund Balances and Activity  Balances due to/from other funds at June 30, 2021, consist of thet following:  Due to/from other funds: To From From  General Fund General Fund Capital Project Sewer Fund  $ 835,788 $ 809,811 $ 25,978  The interfund balances resulted from thet time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded int the accounting system, The General Fund has advanced the General Fund Capital Project Fund proceeds needed for various expenditures. The General Fund anticipates a repayment arrangement after the project is completed. The General Fund has advanced the Sewer Fund proceeds needed for storm water management expenditures.  and (3) payments between funds are made.  The General Fund anticipates ar repayment arrangement int the nexti fiscal year.  D. Net Investment in Capital Assets  Governmental Business-type $ 5,604,832 $ 1,862,363 $5 5,604,832 $ 1,862,363  Capital Assets less: long-term debt add: unexpended debt proceeds Net investment in capital assets E. Fund Balance  The following schedule provides management and citizens with information on the portion of General fund  balance thati is available for appropriation:  Total fund balance General Fund Less: Stabilization by State Statute Streets Powell Bill Remaining Fund Balance  $ 2,924,584 1,006,430 249,102 $ 1,669,052  38    Notes to the Financial Statements (continued)  E.F Fund Balance (continued)  The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders  and contracts that remain unperformed at year-end.  Encumbrances  General Fund $0  Non-Major Funds  IV. Summary Disclosure of Significant Contingencies Federal and State Assisted Programs  The Town has received proceeds from several federal and State grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result int the refund of grant moneys to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying  financial statements fort the refund of grant moneys. V.S Significant Effects of Subsequent Events  Subsequent events occurring after the statement of financial position date have been evaluated through September 15, 2021, which is the datei thet financial statements were available to bei issued. InJ January 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a "Public Health Emergency of International Concern", which continues to spread throughout the world and has adversely impacted global commercial activity and contributed to significant declines and volatility inf financial markets. The coronavirus outbreak and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the coronavirus outbreak. The outbreak presents uncertainty and risk with respect to the Authority  and its abilityt to carry outi its activities which could impact its financial results.  39    8  -  6          Town of Bermuda Run, North Carolina Fort the Year Ended June 30, 2021  General Fund  Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual  With Comparative Actual Amounts fort the Year Ended June 30, 2020)  Variance Favorable (Unfavorable)  Actual- - Year Ended June 30, 2020 $ 843,867 993 1,391 846,251 486,533 486,533 203,404 6,505 11,462 221,372 61,896 166,000 227,896 33,392 36,050 100,000 136,050 1,951,494  Budget  Actual $ 875,192 1,975 124 877,291 465,766 465,766 197,992 11,740 209,732 61,969 193,790 255,759 8,560 25,253 100,000 125,253 1,942,362  Revenues: Ad Valorem taxes (neto ofr refunds) Current levies Prior levies Penalties andi interest Other taxes and licenses: Local option sales tax Unrestrictedi intergovernmental revenues: Utilities franchise tax Cable franchise Beer and wine tax Restricted intergovernmental revenues: Powell Bill allocation ABC revenues Investment eamings Other revenues: Otheri income  1,030,700 350,000  $ (153,409)  115,766  178,000  31,732  211,000 20,000  44,759 (11,440)  Reimbursement for administrative charges  110,300 1,900,000 123,200 2,023,200  14,953 42,362 (123,200) (80,838)  Total Revenues Other financing sources: Appropriated fund balance Total revenues and otherf financing sources  1,942,362  1,951,494  42    Town of Bermuda Run, North Carolina  Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (continued)  Variance Favorable (Unfavorable) June 30, 2020  Actual- -Year Ended  Budget  Actual  Expenditures: General Government Governing Body Administration: Salaries and Employee Benefits Operating Expenses Professional Services Tax collection fees Town! Hall expenses Capital outlay Election costs Community Services: Planning andz zoning Ground/ Igeneral maintenance Leafr removal Waster removal Townp projects Posto office Capital outlay Other Total General Government Safety- Community police program Transportation: Street! Department Engineering Repairs -streets Other Streetl lights Capital outlay Powell- streetr repairs Total Transportation Debts service: Principal Interest Total Expenditures Revenues over Expenditures Other Financing Sources (Uses) Transfer tog general capital project Transfer tos seweri fund Excess ofr revenues ando others sources over (under) expenditures and other uses Fund! Balance: Beginning ofYear, July1 Endo ofy Year, June 30  $ 11,400 $ 11,250 $  150 $ 10,850  247,491 106,756 39,409 41,460 19,950 455,066 48,885 75,716 43,335 207,396 85,828 5,379 26,181 492,721 959,037 79,553 9,000 410,920 113,822 96,342 122,044 752,127  242,767 104,244 31,844 27,441 24,095 4,171 434,563 52,855 63,934 35,325 200,924 28,540 707 43,066 425,350 870,763 87,740 15,929 323,587 109,054 80,571 266,128 7,844 803,114  466,600  11,534  505,400 983,400 90,000  12,679 24,363 10,447  826,600  74,473  1,900,000 123,200 (123,200)  1,790,717 151,645 (123,200)  109,283 28,445  1,761,617 189,877  28,445 $ 28,445 2,896,139 2,924,584  189,877 2,706,262 2,896,139  43    Town of Bermuda Run North Carolina General Capital Projects Fund- US158  Statement of Revenues, Expenditures and Changes in Fund Balance. Budget and Actual  From inception and for the fiscal year ended June 30, 2021  Actual Current Year  Variance Favorable (Unfavorable)  Project Authorization  Prior Year  Totalto Date  Revenues:  Capital contributions: Hillsdale Group Total revenues Expenditures: Road construction Right of way Total expenditures Revenues over expenditures Othert financing sources: Transfer from General Fund-F Powell Bill Transfer from General Fund Total othert financing sources Revenues and other sources over (under) expenditures  770,000 $ 770,000 $  $ 770,000 $ 770,000 1,640,411 62,600 1,703,011 (933,011) 123,200 123,200  770,000 1,540,000 123,200 1,663,200 (893,200) 123,200 770,000 893,200  770,000 767,046 61,600 828,646 (58,646)  873,364 1,000 874,364 (874,364) 123,200 123,200  (100,411) 60,600 (39,811) 39,811 246,400 770,000 1,016,400  9 (58,646) $ (751,164) $ (809,811) $ 1,056,211  44    Town of Bermuda Run, North Carolina Special Revenue Fund- Gated Security For the Year Ended June 30,2021  Statement of Revenues, Expenditures and Changes in Fund Balance. Budget and Actual  With Comparative Actual Amounts for the Year Ended June 30, 2020)  Variance Favorable (Unfavorable)  Actual -Year Ended June 30,2020 $ 512,652 512,652  Budget  Actual $ 568,581 568,581  Operating revenues: Gate fees Insurance proceeds Fund balance appropriated Total revenue and other financing sources Operating expenditures: Administrative Gate operations expense Other Financing Sources (Uses) Transfer to other funds Total other financing sources (uses) Total expenditures and other financing uses Revenues over (under) expenditures Fund Balance: Beginning ofy year End ofy year  $ 566,017  $  2,564  566,017  568,581  2,564  512,652  50,000 509,048 559,048  50,000 478,237 528,237  566,017  6,969  566,017  559,048 9,534 207,952 $ 217,485  6,969 9,534  528,237 (15,586) 223,537 $ 207,952  $  $  45    Town of Bermuda Run, North Carolina Sewer Fund Fort the Year Ended. June 30, 2021  Schedule of Revenues andl Expenditures Budget and Actual- - (Non-GAAP) (With Comparative Actual Amounts for the Year Ended June 30. 2020)  Variance Favorable  Actual - Year Ended 527,122 850 527,972  Budget  Actual 525,341 850 526,191 $ (4,659)  (Unfavorable) June 30, 2020  Operating revenues: Sewer charges Tapi fees  $ 530,850  Othert financing sources; Transfer from general fund Appropriated fund balance Total revenue and other financing sources Operating expenditures: Administrative Licenses Charges from general fund Sewer operations: Plant operations Maintenance Repairs plant Repairs lines Utilities Storm water management Capital outlay Other  530,850  526,191  (4,659)  527,972  1,010 50,000 51,010 53,000 31,121 29,174 32,837 58,898 16,165 221,195 272,205  1,010 50,000 51,010 49,852 1,991 7,955 55,355 31,572 16,026 162,751 213,761  51,200  190  479,650 530,850  258,455 258,645  Total operating expenditures Other budgetary appropriations: Principal paid on long-term debt Interest paid Total expenditures and budgetary appropriations Total revenue and other financing sources over (under) expenditures and budgetary appropriations  530,850  272,205  258,645  213,761  $  253,986  253,986  314,211  46    Town of Bermuda Run, North Carolina Sewer Fund (continued) For the Year Ended June 30, 2021  Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) (With Comparative Actual Amounts fort the Year Ended June 30, 2020)  2021 Actual  2020 Actual  Reconciliation of! Modified Accrual Basis toF Full Accrual Basis:  Total Revenues and Other Financing Sources Total Expenditures and Budgetary Appropriations Excess of Revenues Over (Under) Expenditures Capital outlay Depreciation  $ 526,191  $ 527,972  272,205 253,986  213,761 314,211  (85,817)  (88,739)  Change in net position  $ 168,169  $ 225,472  47    Town of Bermuda Run, North Carolina Schedule of Changes in Ad Valorem Taxes Receivable For the Yeare ended June 30, 2021  Balance June 30, 2020 $  Collections and Credits $ 872,813 2,259 153 2 6 1  Balance June 30, 2021 $  Year ofL Levy 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010  Additions $ 880,223  7,410 3,617 1,221 531 492 389 15 179 236 155 1,266  5,876 1,374 533 498 390 15 179 236 155 71 1,197 10,524  (1,195) 1,197 875,236  $  880,223  $  Ad Valorem Taxes Receivable- Net Reconcilement with Revenues: Tax- Ad' Valorem Adjustments  $ $ $  15,511 877,167 (1,931) 875,236  Total collections and credits  48    Town of Bermuda Run, North Carolina Analysis of Current Tax Levy Fori the) Year Ended. June 30, 2021  TotalL Levy  Property excluding Registered Motor Vehicles $ 800,129 7,176  Registered Motor Vehicles $ 72,918  Property  Total  Valuation Rate Levy $582,031,333 0.15 $ 873,047  Taxl Levy- Town Wide Discoveries Abatements and Releases Totalf for Year  4,784,000  7,176  $586,815,333  880,223 7,410 $ 872,813  807,305 7,410 799,895 99.08%  72,918  Less, Uncollected' Tax at. June 30, ,2021 Current' Year's Taxes Collected Percent Current Year Collected  $ 72,918  99.16%  100.00%  49    EDDIE CARRICK, CPA, PC Certified Public Accountant  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  INDEPENDENT. AUDITOR'S REPORT  Tot the Honorable Mayor and Members oft the Town Council Town of Bermuda Run, North Carolina  We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable toi financial audits contained in Govemment Auditing Standards issued by the Comptroller General of the United States, the financial statements of the govemmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information the Town of Bermuda Run, North Carolina, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprises the Town of Bermuda Run's basic financial statements, and have issued our report thereon dated  September 15, 2021.  Internal Control Over Financial Reporting  In planning and performing our audit of the financial statements, we considered the Town of Bermuda Run's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on thee effectiveness oft the Town of Bermuda Run's internal control. Accordingly, we dor not express A deficiency in internal control exists when the design or operation of a control does not allow management or employees, int the normal course of performing their assigned functions, to prevent or detect and correct misstatements on ai timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency or combination of deficiencies, in internal control thati is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of thei internal control was for the limited purpose described ini the first paragraph of this section and was not designed to identify all deficiencies ini internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we didr noti identify any deficiencies in internal control that we consider to be material weaknesses. We didi identify certain deficiencies ini internal control, described in the following paragraph that we consider to be significant deficiencies. Due toi the limited number of personnel ini the Town of Bermuda Run's office, there are inherent limitations to segregation of duties among Town of Bermuda Run's personnel. Presently, a single individual prepares checks, reconciles bank accounts, and maintains the general ledger. Alternative controls should be used to compensate for any lack of segregation of duties. The Town of Bermuda Run's governing board should provide some oft these controls. Management is aware of the deficiency, but cost-benefit analysis indicates that hiring more personnel to mitigate this issue is not feasible. Management will request specific board members become morei involved by providing additional oversight.  and opinion on the effectiveness of the Town'si internal control.  Member of the American. Institute ofc Certified Public Accountants  151 Young Drive, Lexington, NC27292 336-249-2545, Fax 336-249-4745  50    Compliance and Other Matters  As part of obtaining reasonable assurance about whether the Town of Bermuda Run's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance witht those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or  other matters that are required to be reported under Govemment. Auditing Standards.  Town of Bermuda Run's Response tol Findings  The Town of Bermuda Run's responses to the findings identified in our audit are described previously. The Town's response was not subjected tot the auditing procedures applied in the audit of thet financial statements and, accordingly, we  express no opinion oni it. Purpose oft this Report  The purpose of this report is solely to describe the scope of our testing ofi internal control and compliance and the result of that testing, and not to provide an opinion on the ettectiveness oft the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.  Eddie Carrick, CPA, PC  Lexington, North Carolina September 15, 2021  51