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Reporting Requirements and DCA Resources
DOAA 2019 Governmental Accounting and
Reporting Issues Seminar
Georgia Center for Continuing Education
Athens, GA
Tyler Reinagel, Ph.D.
Director, DCA Office of Planning and ResearchSeptember 23, 2019
Agenda
Financial Reporting Requirements
Report of Local Government Finance (RLGF)
Debt Issuance
Hotel-Motel Excise Tax
Local Government Authorities (AARF)
Tax Exempt Bond Allocation Program
Grant Programs and Applications
Uniform Chart of Accounts (UCOA) Update
DCA Office of Research
Local Governments
(689)
• Cities
• Consolidated Governments
• Counties
Local Government Authorities
(1,246)
• Examples include:
• Development
• Hospital
• Housing
• Recreation
• Solid Waste
• Water/Sewer
• Others
Office of Research
Office of Research Responsibilities
Maintain Local Government and Authority Contact Information
Build user-friendly government reporting systems for seven
reports/surveys used by 1,935 jurisdictions/authorities
Management-oriented and financial-oriented
Track compliance, but not enforcement
Explanation of legal requirements, but not interpretation
Remind local governments and authorities of report due dates and
requirements
Serve as state repository for data and reports
Dissemination of reported data
Georgia’s Local Governments
Number of Chartered Counties 151
Number of Chartered Cities 530
Number of Consolidated Governments 8
Total Local Governments in Georgia 689As of September 2019
Local Government Annual Financial
Reporting Responsibilities
Local Governments
Report of Local
Government Finances (RLGF)
Hotel/Motel Tax Report
Debt Issuance Report
Report of Local Government Finances
(RLGF)
Annual report of all revenues, expenditures, assets, and
debts of all funds and agencies of the local government
Mandated in 1985 for all local governments
OCGA 36-81-8(b)(1)(a)
To be submitted within six months of local government’s FYE
Revised for FY2016 to better meet stakeholder needs and
more closely conform with the Uniform Chart of Accounts
All local governments (689) are required to have
submissions for the most recent three (3) fiscal years
Without the three most recent RLGF submissions, a local government is ineligible for state or federal grant/loan funding administered by DCA
Local Government Fiscal Years
FYE Total LGs
(689)
RLGF Due Date
January 2 July 31
February 2 August 31
March 2 September 30
April 5 October 31
May 3 November 30
June 270 December 31
July 6 January 31 (following calendar year)
August 10 February 28/29 (following calendar year)
September 58 March 31(following calendar year)
October 3 April 30 (following calendar year)
November 2 May 31 (following calendar year)
December 326 June 30 (following calendar year)
RLGF Audited Financial Statements
Audited figures not required for RLGF submission
Starting in 2016, the RLGF captures audited/unaudited status
Many jurisdictions prefer to have an audit, but it does not change deadline
Georgia DOAA exempts certain local governments from audit requirements, so not all 689
jurisdictions will have audited figures
If a local government has less than $300K of expenditures, it is not required to submit an audit
In their most recent filings, 128 local governments (18.6%, all cities) are under $300K
If an audit is completed after the six month window, local governments may submit
corrections to the RLGF if appropriate
Local Government Annual Financial
Reporting Responsibilities
Local Governments
Report of Local
Government Finances (RLGF)
Hotel/Motel Tax Report
Debt Issuance Report
Debt Issuance Report
Each local government that issues debt in excess of
$1,000,000 is required to report that issuance to the Office
of Research;
“A political subdivision which issues general obligation bonds, revenue bonds, or any other bonds, notes, certificates of participation, or other such obligations of that political subdivision in an amount exceeding $1 million, shall file a report with the Department of Community Affairs…” OCGA 36-82-10(b)
The same section applies to local authorities
The due date for debt issuance reports is within 60 days of
debt issuance
Local Government Annual Financial
Reporting Responsibilities
Local Governments
Report of Local
Government Finances (RLGF)
Hotel/Motel Tax Report
Debt Issuance Report
The Lodging Receipt
Base Hotel/Motel
Rate
Sales-Use Tax
6.0%-8.9%
State Hotel-Motel Fee
$5 Per Room/Per
Night
Local Hotel-Motel Excise
Tax2.0%-8.0%
LOST
SPLOST
E-LOST
MARTA
TSPLOST
MOST
4% State
HOST
Hotel-Motel Tax Authorization Paragraphs
O.C.G.A. § 48-13-51(a)1
O.C.G.A. § 48-13-51(a)3
O.C.G.A. § 48-13-51(b)*Requires act of General Assembly
Changes to HMT Authorizations
In 2008, HB 1168 reduced the number of authorizations for newly adopted HMT or changes in existing HMT to three (3) options
1-3%
5%
6-8%
Defining the Spending Restrictions - Purpose
Depending on the authorization paragraph used to
impose the HMT, a percentage of revenue goes toward
restricted spending
Always a percentage, never a flat/fixed amount
Tourism, Conventions, and Trade Shows (TCT)
“Planning, conducting, or participating in programs of information and publicity designed to attract or advertise tourism, conventions, or trade shows.”
Expended by the Destination Marketing Organization (DMO)
O.C.G.A. § 48-13-50.2
Defining the Spending Restrictions - Recipient
For TCT spending, the Destination Marketing Organization (DMO)
“A private sector non-profit organization or other private entity which is exempt…under Section 501(c)(6) of the IRS Code of 1986” Primary responsibilities are to “encourage travelers to visit their destinations,
encourage meetings and expositions in the area, and provide visitor assistance and support as needed.”
Can be a Chamber of Commerce, CVB, Regional Travel Association, or other private group, so long as it is a tax-exempt 501(c)(6)
Also, any recreation Authority or CVB created by General Assembly or the State, a Department of State Government, or State Authority
For TPD spending, any municipal, county, or consolidated government
O.C.G.A. § 48-13-50.2
How about DDAs, Main Street?
DDAs, Tourism Authorities,
and other Local Authorities
Main Street 1
Organization Local Authority created by
General Statute, Local Law, or
Local Constitutional
Amendment
Department within local government, or
Stand-alone non-profit organization, or
Component of Chamber of Commerce
Flexibility from DCA ODD
Structure and
Restrictions
As defined by OCGA 36-42 If City department, defined by Mayor/Council;
If non-profit/Chamber component, as defined by
bylaws
Relationship
with City
“Creature” of city government If department, part of city government; if non-
profit/Chamber, contractual relationship with city
Hotel-Motel
Tax Revenue
No. Local Authorities in
Georgia are inherently public
entities and not eligible.
It depends.
If the Main Street program is a city department,
it is a public entity and not eligible. If the Main
Street program is a stand-alone 501(c)6 non-
profit, it is eligible.
Non-Profit Status – (c)3 versus (c)6
501(c)3 501(c)6
Hotel-Motel Tax Revenue Not eligible to receive Eligible to receive
Purpose Charitable Organization Business/Membership
Organization
Donation Tax deductible for donor Not tax deductible
Lobbying Prohibited from political
activity
Political activity permitted,
but taxable
Social Activities Social activities must be
“insubstantial”
Social activities permissible,
not “primary”
Examples Charitable foundations,
universities, churches,
charitable support groups
Business league, Chamber
of Commerce, CVB
Main Street programs in Georgia are largely self-determined. For
those that are stand-alone non-profits, some have status as 501(c)3
and some as 501(c)6. Always confirm the tax-exempt status of a
DMO receiving/potentially receiving Hotel-Motel Tax revenue
restricted to TCT
So, how can we use TCT restricted funds?
Generally*…
Community-wide tourism advertising
Social media and internet marketing campaigns
Radio and Television Commercials
Soliciting convention or trade show contracts
Supporting/operating a convention facility**
*Be sure to consult with city/county/consolidated government attorney
**Only in certain situations and under certain authorization paragraphs, consult attorney
So, how can’t we use TCT restricted funds?
Fireworks
Not “programs of information and
publicity” or an advertisement for an
event
They are the event
Defining the Spending Restrictions - Purpose
Depending on the authorization paragraph used to impose the HMT, a
percentage of revenue goes toward restricted spending
Always a percentage, never a flat/fixed amount
Tourism Product Development (TPD)
“Creation or expansion of physical attractions which are available and open to the public and which improve destination appeal to visitors, support visitors' experience, and are used by visitors. Such expenditures may include capital costs and operating expenses.” Project should be identified as TPD in jurisdiction’s annual budget
Must involve physical renovation of existing tourism facility, or construction of a new tourism facility
Expended directly by LG or entity other than DMO
O.C.G.A. § 48-13-50.2
What qualifies as TPD?
As identified in O.C.G.A. § 48-13-50.2(6)(A-P),
Tourism Product Development may include
Information Centers
Hunting Preserves
Wayfinding Signs
Golf Courses
Sightseeing Planes and Helicopters
Performing Arts Facilities
Meeting/Convention Facility
Amusement Parks
Auto Racetracks
RV/Trailer/Camper Sites
Exhibit HallSports Stadium
Arenas
Fishing Preserves
Parks and Trails
Drag Strips
Permanent Carnivals Sightseeing Boats
Campsites
Zoos
Aquariums
Museums
What qualifies as TPD?
And other “creation or expansion of physical attractions which are available
and open to the public and which improve destination appeal to visitors,
support visitors’ experience, and are used by visitors.”
O.C.G.A. § 48-13-51(a)(1) – 1-3%
Non-Restricted
Proceeds can be used for any legal general fund purpose in
the city, county, or consolidated government
100% of HMT
Revenue
Restricted
None
*Potential requirements for TCT based on local-specification and
previous TCT spending
O.C.G.A. § 48-13-51(a)(3) – 5%
Non-Restricted
Proceeds can be used for any legal general fund purpose in
the city, county, or consolidated government
60% of HMT
Revenue
Restricted
At least 40% of HMT revenue must be used for
TCT.
40% TCT
O.C.G.A. § 48-13-51(b) – 6%
Non-Restricted
Proceeds can be used for any legal general fund purpose in
the city, county, or consolidated government
50% Non-
Restricted
Restricted
At least 41⅔% of HMT revenue must be used for
TCT
41⅔% TCT Restricted
Up to 8⅓% of HMT may be used for TPD, otherwise
used for TCT
8⅓% TPD
O.C.G.A. § 48-13-51(b) – 7%
Non-Restricted
Proceeds can be used for any legal general fund purpose in
the city, county, or consolidated government
42.86% Non-
Restricted
Restricted
At least 42.86% of HMT revenue must be used for
TCT
42.86% TCT Restricted
Up to 14.28% of HMT may be used for TPD, otherwise used for TCT
14.28% TPD
O.C.G.A. § 48-13-51(b) – 8%
Non-Restricted
Proceeds can be used for any legal general fund purpose in
the city, county, or consolidated government
37.5% Non-
Restricted
Restricted
At least 43.75% of HMT revenue must be used for
TCT
43.75% TCT Restricted
Up to 18.75% of HMT may be used for TPD, otherwise used for TCT
18.75% TPD
Local Government Requirements
State-mandated Audit to DOAA
Determination of compliance with authorization paragraph’s expenditure requirements
Identification of any non-compliance
Amount of HMT receipts during fiscal year
Expenditures, as a percentage of tax receipts O.C.G.A. § 48-13-51(a)(9)(B)
State-required Reporting to DCA
Verify authorization paragraph and rate Unique form for each authorization paragraph
Report HMT revenues received
Project Contractor Information Schedule (PCIS) O.C.G.A. § 48-13-56
Tourism Product Development (TPD) List If under Paragraph 51(b)
O.C.G.A. § 48-13-50.2
Reporting to DCA Office of Research
Within six (6) months of the end of the fiscal year, each jurisdiction
imposing a HMT is responsible for completing an online Hotel Motel
Tax Report with DCA
Reporting to DCA Office of Research
Within six (6) months of the end of the fiscal year, each jurisdiction
imposing a HMT is responsible for completing an online Hotel Motel
Tax Report with DCA
Project-Contractor Information Schedule
Maintain open communication with your Chamber, CVB, or other 501(c)(6) (DMO)
receiving restricted HMT funds
Remember restricted spending is percentage based, regardless of authorization paragraph – not a fixed dollar amount
Have an established mutual agreement on how restricted HMT funds will be expended – additional funds can go to the DMO, but PCIS form to DCA focuses only on restricted funds
Have contracting entity (DMO) complete PCIS and submit to local government for
review and upload to HMT Report
Georgia’s Local Authorities
Authority Type # of
AuthoritiesAuthority Type # of
Authorities
Airport 45 Public Transit 4
Building 38 Recreation 22
Development 205 Regional Jail 3
Downtown Development 225 Residential Care of the Elderly 9
Hospital 107 Resource Recovery 4
Housing 179 Solid Waste Management 26
Industrial Development 81 Stadium and Coliseum 6
Joint Development 74 Tourism 22
Land Bank 12 Urban Redevelopment 41
Parking 3 Water and Sewer 63
Public Facilities 44 E-911 6
Public Service 7 Other 20
As of August 2019 Total Local Authorities 1,246
HB257 – Combined Reporting
Local Authorities
Authority Registration
Debt Issuance Report
Report of Authority Finances
(RAF)
HB257 combines Registration and Financial Reporting into a single report
Due within six months of Authority FYE
“Annual Authority Registration and Finance Report,” or AARF
Beginning with FY18
Report of Authority Finances (RAF)
Since 1985, each authority is required to submit an annual financial report;
“(2) Each local independent authority shall submit an annual report of indebtedness to the Department of Community Affairs. Such report shall include the revenues, expenditures, assets, and debts of all funds of the local independent authority and shall describe any actions taken by such local independent authority to incur indebtedness.” (OCGA 36-81-8(b)(2))
Annual report of all revenues, expenditures, assets, and debts of the local authority
OCGA does not dictate a timeline, but rather says they “shall be submitted within
the requested time periods established by the department” (OCGA 36-81-8(b)(3))
The current requirement is 6 months from the end of the authority’s fiscal year
Like RLGF, audited figures are preferred but not required
Submitted online with authority User ID and Password from Office of Research
All authorities are required to have submissions for the most recent 3 fiscal years
Local Authority Annual Reporting
Responsibilities
Local Authorities
Authority Registration
Debt Issuance Report
Report of Authority Finances
(RAF)
Debt Issuance Report
Each authority that issues debt in excess of $1,000,000 is required
to report that issuance to the Office of Research;
“A political subdivision which issues general obligation bonds, revenue bonds, or any other bonds, notes, certificates of participation, or other such obligations of that political subdivision in an amount exceeding $1 million, shall file a report with the Department of Community Affairs…” OCGA 36-82-10(b)
The same section applies to cities, counties, and consolidated governments issuing debt.
The longstanding due date for debt issuance reports has been within
60 days of debt issuance
Same 2-page .XLS form as local governments, combined annual
reporting on DCA website
Bond Allocation Program Background
Local & state governments/authorities may apply to issue "private
activity tax exempt bonds“
Tax Exempt Bond Allocations are not cash changing hands or the state issuing debt
Allows for lower than normal financing costs, resulting in the creation
or retention of jobs and expansion of affordable housing.
Fund-able projects include traditional industrial development bond
(IDB) for manufacturing concerns and mortgage revenue bonds
(MRB) for single family mortgages to bonds for multi-family housing
development and exempt facility bonds.
To receive an allocation, the local issuing authorities must approve
the project, hold a public hearing, have local government approval,
and general financing in place.
2019 Tax Exempt Bond Allocation Formula
State Population 10,519,475 ($105 Per) $1,104,544,875
Economic Development
Period #1 1/1/19-3/31/19 $187,772,629
Period #2 4/1/19-6/30/19 $187,772,629
Period #3 7/1/19-9/30/19 $93,886,314 $469,431,572
Housing
GHFA Reservation 1/1/19-9/30/19 $291,047,575
URFA Reservation 1/1/19-9/30/19 $89,191,999
Local Reservation 1/1/19-9/30/19 $89,191,999 $469,431,573
Flexible Share 1/1/19-12/31/19 $165,681,731 $165,681,731
Total State Cap $1,104,544,875
Bond Allocation Applications
Inducement Resolution
Publisher’s Affidavit (TEFRA)
Public notice published at least 14 days prior to public hearing
Public Official’s Approval of TEFRA
State Law/Legal Counsel Opinion
Financial Commitment Letter
Application Fee
Bond Allocation Fee Schedule
Bond Application Fee: $250.00
Bond Carryforward Fee: $250.00
Bond Adjustment (change in amount of allocation or
one -time 30 day extension) Fee: $100.00
Bond Issuance Fee: 1/10 of 1% (0.001)
$20,000 on a $20M allocation
Economic Development Share
Must create/retain one permanent job for each $125K
in allocation sought
“Flex Share” funds can be used at the discretion of
the Commissioner with/without jobs requirement
Applicant must provide a “but for” statement as a
part of the “Jobs Test” portion of application
After nine months (September 30), all unused Economic
Development share and Housing share are transferred
to “Flex Share” for the duration of the calendar year
DCA Community and Economic
Development Programs
Funding Programs Appalachian Regional
Commission Economic Development Grant Program
Community Development Block Grant (CDBG)
Downtown Development Revolving Loan Fund (DDRLF)
Neighborhood Stabilization Program
OneGeorgia Programs (EDGE and Equity)
Regional Economic Business Assistance (REBA) Program
State Small Business Credit Initiative (SSBCI)
Incentive Programs Enterprise Zones
Georgia Agribusiness and Rural Jobs Act (GARJA)
Georgia Tourism Development Act
Job Tax Credits
Military Zones
Opportunity Zones (State)
Opportunity Zones (Federal)
Regional Economic Assistant Program (REAP)
Rural Zones
Compliance and Funding/Program Eligibility
For many funding/incentive programs, permitting, and community
designations, certain compliance requirements exist…
QLG Status – Comprehensive Plan/Plan Update, E-Verify
Service Delivery Strategy (County and Resident Cities)
Local Governments (all municipalities, counties, and consolidated governments) must have the three most recent years of GOMI and RLGF submissions on file with DCA to be eligible for any state/federal funding (i.e. CDBG) or permits administered by DCA
Compliance listing is available at
https://apps.dca.ga.gov/LocalGovStatus/planning.asp
Questions regarding QLG Status and SDS should be emailed to [email protected]
Questions regarding reporting requirements should be emailed to [email protected]
Background on UCOA
• The UCOA was established by the General Assembly
(HB491) during the 1997-1998 legislative session
• The Georgia Department of Community Affairs (DCA) was
to develop and maintain a uniform chart of financial
accounts to be used by all local governments in Georgia
• The UCOA was developed with input from local government
finance stakeholders, and implemented by cities, counties,
and consolidated governments beginning in 2001
UCOA>>RLGF
Beginning in
FY2016, the
Report of Local
Government
Finances (RLGF) -
required by all
cities, counties,
and consolidated
governments
within six months
of the conclusion
of their fiscal
year – was
reflective of the
UCOA
2019 UCOA Update
• Local government is ever-changing, so it’s necessary that
the UCOA be a “living document” — adaptable to the
new needs and challenges of local government finance
managers, accountants and auditors
• The current version of UCOA was released in December
2013
• This is an opportunity to update the document to better
meet the current needs of local government finance
2019 UCOA Update
Workshop at DCA Office in Atlanta on
Thursday, November 7
Representatives from:
Georgia Department of Community Affairs
Georgia Department of Audits and Accounts (DOAA)
Carl Vinson Institute of Government/University of Georgia
Georgia Municipal Association (GMA)
Association County Commissioners of Georgia (ACCG)
Revisions will be presented to the DCA Board
and State Auditor for approval
4th Edition should be released in 2Q 2020
UCOA Update – Providing Feedback
Option 1: Feedback Form
- A hard-copy feedback
form is available
- Can be returned to
DCA in person, by
email, or via USPS
- Should be received by
October 15, 2019 for
full consideration
UCOA Update – Providing Feedback
Option : Email
Email feedback, questions, or concerns to
Email by October 15, 2019 for full consideration
Additional Questions and Assistance
For report system log-in, PCIS form, ordinance requirements, sample
ordinances, and other information on the hotel-motel tax in Georgia,
visit:
https://www.dca.ga.gov/local-government-assistance/research-surveys/hotel-
motel-excise-tax
DCA cannot provide legal interpretations or opinions, but if you have a
question specific to your jurisdiction, or something unaddressed on the
DCA website, please contact:
Tyler Reinagel, Ph.D.
Director,
Office of Planning and Research
404.679.4996