Tyler Reinagel, Ph.D. Director, DCA Office of Planning and Research

1. Reporting Requirements and DCA Resources DOAA 2019 Governmental Accounting and Reporting Issues SeminarGeorgia Center for Continuing EducationAthens, GA September 23, 2019 Tyler Reinagel, Ph.D. Director, DCA Office of Planning and Research

2. 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

3. DCA Office of Research Office of Research

4. Role of the DCA Office of Research

5. 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

7. Reporting Requirements: Local Governments (Cities, Counties, Cons.)

8. Georgia’s Local Governments

9. Local Government Annual Financial Reporting Responsibilities

10. 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

11. Local Government Fiscal Years

13. 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

14. Tax and Expenditure Data Center (TED)

15. Local Government Annual Financial Reporting Responsibilities

16. 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

18. Debt Issuance Annual Report

19. Local Government Annual Financial Reporting Responsibilities

20. The Lodging Receipt TSPLOST MARTA MOST HOST E-LOST LOST 4% State SPLOST

21. 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%

22. “Grandfathered” Authorization Paragraph Jurisdictions As of May 2019

23. Mechanics of Restricted Spending

24. 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

25. 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

26. How about DDAs, Main Street?

27. Non-Profit Status – (c)3 versus (c)6 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

28. 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

29. So, how can’twe use TCT restricted funds? • Fireworks • Not “programs of information and publicity” or an advertisement for an event • They are the event

30. 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

31. What qualifies as TPD? • As identified in O.C.G.A. § 48-13-50.2(6)(A-P), Tourism Product Development may include Fishing Preserves Hunting Preserves Campsites Meeting/Convention Facility Information Centers Exhibit Hall Parks and Trails Wayfinding Signs Sports Stadium Zoos Auto Racetracks Drag Strips Performing Arts Facilities Golf Courses Sightseeing Boats Arenas Permanent Carnivals Amusement Parks Aquariums Sightseeing Planes and Helicopters Museums RV/Trailer/Camper Sites

32. 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.”

33. Understanding Restricted Spending

34. O.C.G.A. § 48-13-51(a)(1) – 1-3%

35. O.C.G.A. § 48-13-51(a)(3) – 5%

36. O.C.G.A. § 48-13-51(b) – 6%

37. O.C.G.A. § 48-13-51(b) – 7%

38. O.C.G.A. § 48-13-51(b) – 8%

39. After the Fiscal Year…

40. 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

41. 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

42. 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

43. 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

44. Local Government Reporting Guidance

45. Reporting Requirements: Local Government Authorities

46. Georgia’s Local Authorities

47. HB257 – Combined Reporting • 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

48. 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