The Town of Brookside Annual Financial Report 2021

THE TOWN OF
BROOKSIDE, ALABAMA
ANNUAL FINANCIAL REPORT
September 30, 2021

INTRODUCTORY SECTION
PRINCIPAL TOWN OFFICIALS
TABLE OF CONTENTS
THE TOWN OF BROOKSIDE, ALABAMA
PRINCIPAL TOWN OFFICIALS
September 30, 2021
MAYOR
Mike Bryan
TOWN COUNCIL
Daryl Burr
Jimmy Hall
Chris McCondichie
Dale McGuire
Mark Wolfe
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ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2021
TABLE OF CONTENTS
Introductory Section
Principal Town Officials............................................................................................................... i
Table of Contents.......................................................................................................................... iii
Financial Section
Independent Auditor’s Report.......................................................................................................... 1
Management’s Discussion and Analysis.......................................................................................... 4
Basic Financial Statements

Government-Wide Financial Statements
Statement of Net Position .......................................................................................................... 14
Statement of Activities .............................................................................................................. 16
Fund Financial Statements
Balance Sheet - Governmental Funds ....................................................................................... 17
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities .......................................................... 20
Statement of Net Position - Proprietary Funds .......................................................................... 21
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds ............... 22
Statement of Cash Flows - Proprietary Funds ........................................................................... 23
Notes to Financial Statements ...................................................................................................... 26
Combining Financial Statements
Nonmajor Governmental Funds:
Combining Balance Sheet............................................................................................................. 41
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................... 42
Government Audit 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 Government Auditing Standards ................................................................... 45
Schedule of Findings and Responses ........................................................................................ 47
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FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
COMBINING FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT
To the Town Council
The Town of Brookside, Alabama
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the Town of Brookside, Alabama (the “Town”), as of and for the year
ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Town’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the Auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position
of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the
Town, as of September 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis
be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other
knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Phone: 205.969.3443 3176 Cahaba Heights Road, Suite 100 pmorgan@morgancpas.com
Fax: 205.969.3445 Birmingham, AL 35243 www.morgancpas.com
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Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s
basic financial statements. The combining financial statements are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
The combining financial statements are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining financial statements are fairly stated in all
material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2022, on our
consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance.
Birmingham, Alabama
November 21, 2022
PHILLIP MORGAN & COMPANY P.C.
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September 30, 2021
As management of The Town of Brookside, Alabama, we offer this narrative overview and analysis as a
means to assist readers of the Town’s financial statements for the fiscal year ended September 30, 2021.
Our discussion and analysis focuses on significant financial issues, provides an overview of the Town’s
financial activity, notes changes in the Town’s financial position, and identifies individual fund issues and
concerns.
Financial Highlights
The net position of the Town of Brookside as of September 30, 2021 totaled $4,070,570. The portion of
net position that may be used to meet the Town’s ongoing obligations to citizens and creditors
(unrestricted net position) was $576,896. The Town’s total net position decreased by $12,486 in fiscal
year 2021.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements that are comprised of three components: (1) government-wide financial statements, (2) fund
financial statements, and (3) notes to financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with an overview of the Town’s
finances, in a manner similar to private-sector business.
The Statement of Net Position presents information on the Town’s assets and liabilities, with the
difference between the two reported as net position. This statement combines governmental funds current
financial resources with capital assets and long-term obligations. With sufficient history, increases or
decreases may serve as a useful indicator of the improvement or deterioration of the financial position of
the Town.
The Statement of Activities focuses on the functions of the Town and how net position changed during
the most recent fiscal year. The intent is to simplify the user’s analysis of revenue and expense of the
various government services to the business-type activities. All changes in net position are reported as
soon as the underlying event causing the change occurs, regardless of the timing or related cash flows.
Consequently, revenues and expenses are reported in this statement for some items that will only result
in cash flows in future fiscal periods.
The government-wide financial statements describe functions of the Town of Brookside that are
principally supported by taxes and intergovernmental revenues (governmental activities) as opposed to
those functions that are intended to recover all or a significant portion of the cost of operations, including
depreciation, through fees and charges for services (business-type activities). The governmental activities
of the Town of Brookside include general government, police protection, fire protection, streets and
parks, and recreation. The business-type activities of the Town of Brookside reflect operations of the gas
and water systems.
A component unit is a legally separate organization over which the Town can exercise influence and/or
may be obligated to provide financial subsidies. The Town of Brookside has no component units.
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September 30, 2021
Fund Financial Statements
Fund Financial Statements focus on the Town’s major funds rather than the Town as a whole. A fund is
a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities. The Town of Brookside uses fund accounting to ensure compliance with finance-
related legal requirements. Governmental and proprietary are the two categories of fund types currently
used by the Town.
Governmental Funds
The general fund is the primary operating fund of the Town. It includes all revenues that are not
associated with the proprietary fund. Expenditures applicable to the general operations of the Town are
paid from the general fund.
The greenway fund is used to account for the financial activities of the Town’s campground and canoe
rental facilities.
The capital projects fund is used to account for Alabama Trust Fund revenues (which are to be used
only for capital outlays), along with other revenues and debt proceeds intended for capital projects.
The USDA repayment fund is a debt service fund of the Town. Amounts accounted for in this fund
consist of funds set aside for the payment of principal and interest on the Town’s Series 2009 General
Obligation Warrants.
Additionally, the Town maintains several special revenue funds to account for resources that are legally
restricted to expenditure for specific purposes, not including those accounted for in capital projects funds,
debt service funds, or permanent funds.
The Town of Brookside does not adopt an annual budget.
Proprietary Funds
The Town of Brookside maintains two proprietary funds. The gas system fund and the water system fund
report the business-type activities of the Town. These funds include information on natural gas and water
activities.
Notes to the Financial Statements
The notes to the financial statements give additional information designed to enhance the readers
understanding of the data contained in the report.
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September 30, 2021
Government-wide Financial Analysis
Statement of Net Position
Condensed Statements of Net Position

As of September 30, 2021 and 2020
Governmental Activities Business-Type Activities Total

2021 2020 2021 2020 2021 2020
Assets
Current and other assets…………… $ 646,304 $ 584,076 $ 337,737 $ 337,288 $ 984,041 $ 921,364
Net capital assets…………………… 3,430,702 3,488,907 574,996 598,881 4,005,698 4,087,788
Total Assets………………… 4,077,006 4,072,983 912,733 936,169 4,989,739 5,009,152
Liabilities
Current and other liabilities………… 45,730 44,753 99,279 107,183 145,009 151,936
Long-term liabilities………………. 774,160 774,160 - - 774,160 774,160
Total Liabilities…………… 819,890 818,913 99,279 107,183 919,169 926,096
Net Position
Net investment in capital assets….. 2,656,542 2,691,747 574,996 598,881 3,231,538 3,290,628
Restrictred………………………… 262,136 305,030 - - 262,136 305,030
Unrestricted………………………… 338,438 257,293 238,458 230,105 576,896 487,398
Total Net Position………… $ 3,257,116 $ 3,254,070 $ 813,454 $ 828,986 $ 4,070,570 $ 4,083,056
The largest portion of the Town’s net position is its net investment in capital assets. The Town uses
these capital assets to provide services to its citizens; therefore, the assets are not available for future
spending. Those capital assets relating to business-type activities (such as gas and water) provide
services to our citizens and generate revenues, however, those capital assets cannot be used to liquidate
any debt associated with those assets unless the Town should choose to sell those assets to another
provider.
The restricted portion of the Town’s net position as of September 30, 2021 was $262,136. This amount
represents resources that are subject to external restrictions on how they are used.
The remaining unrestricted net position was $576,896.
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September 30, 2021
Statement of Activities
Condensed Statements of Activities

For the Years Ended September 30, 2021 and 2020

2021 2020 2021 2020 2021 2020
Revenues
Program revenues:
Charges for services……………………… $ 928,175 $ 812,003 $ 884,929 $ 937,894 $ 1,813,104 $ 1,749,897
Operating grants and contributions………… 264,717 16,392 - - 264,717 16,392
Capital grants and contributions…………… 16,300 15,610 - - 16,300 15,610
General revenues:
Taxes……………………………………… 332,361 287,652 - - 332,361 287,652
Licenses and permits……………………… 71,018 71,069 - - 71,018 71,069
Other……………………………………… 43,934 33,243 154 76 44,088 33,319
Total Revenues……………………… 1,656,505 1,235,969 885,083 937,970 2,541,588 2,173,939
Expenses
Governmental activities:
Governmental administration……………… 599,968 431,279 - - 599,968 431,279
Police protection…………………………… 775,372 566,509 - - 775,372 566,509
Fire protection……………………………… 131,622 109,210 - - 131,622 109,210
Streets……………………………………… 36,026 30,346 - - 36,026 30,346
Parks and recreation……………………… 118,304 87,745 - - 118,304 87,745
Interest on long-term debt………………… 37,652 45,739 - - 37,652 45,739
Business-type activities:
Gas system………………………………… - - 208,649 180,631 208,649 180,631
Water system……………………………… - - 646,481 707,801 646,481 707,801
Total Expenses………………………. 1,698,944 1,270,828 855,130 888,432 2,554,074 2,159,260
Change in Net Position Before Transfers……… (42,439) (34,859) 29,953 49,538 (12,486) 14,679
Transfers………………………………………… 45,485 3,047 (45,485) (3,047) - -
Change in Net Position………………………… $ 3,046 $ (31,812) $ (15,532) $ 46,491 $ (12,486) $ 14,679
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September 30, 2021
Fund Financial Analysis
Governmental Funds
Fund Balances
Fund Fund
Balance Balance Increase
2021 2020 (Decrease)
Nonspendable………………………………………………… $ 6,877 $ 4,565 $ 2,312

Restricted……………………………………………………… 262,136 305,030 (42,894)
Assigned……………………………………………………… 53,463 53,238 225
Unassigned…………………………………………………… 261,260 172,550 88,710
Total Fund Balance……………………………………… $ 583,736 $ 535,383 $ 48,353
Several factors accounted for the increase in the fund balance of the Town’s governmental funds. Some of
the primary factors were increased tax revenues, increased operating grant revenues, increased revenues
at the campground, and the transfers to and from proprietary funds.
Proprietary Funds
Net Position
September 30, 2021 and 2020
Net Net
Position Position Increase
2021 2020 (Decrease)
Total net position…………………………… $ 813,454 $ 828,986 $ (15,532)
The proprietary funds comprise those assets and liabilities associated with the provision of utility services
for the citizens of the Town of Brookside, including natural gas and water. The primary factors for the
current year decrease were gas system operating losses (including depreciation of capital assets), water
system operating income, and transfers to and from governmental funds.
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September 30, 2021
Capital Assets and Debt Administration
Capital Assets

2021 2020 2021 2020 2021 2020
Land…………………………………………… $ 307,084 $ 307,084 $ 2,000 $ 2,000 $ 309,084 $ 309,084

Buildings………………………………………. 2,529,189 2,590,576 6,573 6,671 2,535,762 2,597,247
Equipment……………………………………… 317,946 307,007 2,913 5,653 320,859 312,660
Infrastructure…………………………………… 276,483 284,240 563,510 584,557 839,993 868,797
Construction in progress……………………… - - - - - -
Net Capital Assets………………………… $ 3,430,702 $ 3,488,907 $ 574,996 $ 598,881 $ 4,005,698 $ 4,087,788
Investments in capital assets include land, equipment, and utility systems (water and natural gas). The
major components of the capital assets of the governmental activities are the municipal complex and
equipment related to the police, fire, and emergency medical service operations. The major component of
the capital assets of the business-type activities is the distribution systems associated with the water and
natural gas operations of the Town.
Debt Outstanding
Outstanding Debt
September 30, 2021 and 2020
2021 2020
Governmental activities:
General Obligation Warrants, Series 2008 .................................... $ 629,000 $ 652,000
Capital Lease – Police Vehicles .................................................... 145,160 145,160
Total Long-Term Debt .......................................................... $ 774,160 $ 797,160
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September 30, 2021
Economic Factors
The Town of Brookside relies on taxes (sales and ad valorem) and fees (business license and building
permits) for their governmental activities. Other primary sources include intergovernmental revenues and
fines and forfeitures.
The business-type activities are primarily the utility operations of the Town (natural gas and water.). The
Town owns and operates all of those distribution systems and sells the utility to its customers. Transfers
from the profits of these utilities are made from time to time to the governmental activities.
The level of fees, taxes, and charges for services (primarily utilities) directly affect the Town’s ability to
provide the necessary public safety functions, provide for necessary infrastructure improvements, and
promote economic development and expand.
The Town’s water system continues to experience a high percentage of water loss.
In 2022, media reports highlighted the large percentage of the Town’s revenues and expenditures related
to police protection, and questioned the Town’s aggressive policing practices. In addition, the Town
faces multiple lawsuits regarding police practices. The Town’s decision to reduce the size and scope of
its police force, along with increased legal costs, will have a significant impact on the financial results of
future periods.
Financial Information Contact
The financial statements of the Town of Brookside are designed to present to the users of the statements
(citizens, customers, taxpayers, creditors) a general overview of the finances of the Town. Additional
information, if needed, may be obtained by contacting the office of the Town Clerk at P.O. Box 142,
Brookside, Alabama 35036.
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BASIC FINANCIAL STATEMENTS
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STATEMENT OF NET POSITION
September 30, 2021
Business-
Governmental Type
Activities Activities Total
Assets
Cash and cash equivalents……………………………… $ 559,935 $ 141,737 $ 701,672
Receivables, net of allowance for uncollectibles………… 79,938 105,075 185,013
Internal balances………………………………………… (446) 446 -
Inventories……………………………………………… - 1,382 1,382
Prepaids………………………………………………… 6,877 13,754 20,631
Restricted cash………………………………………… - 75,343 75,343
Capital assets, net of accumulated depreciation:
Land………………………………………………… 307,084 2,000 309,084
Buildings…………………………………………… 2,529,189 6,573 2,535,762
Equipment…………………………………………… 317,946 2,913 320,859
Infrastructure………………………………………… 276,483 563,510 839,993
Total Assets………………………………… 4,077,006 912,733 4,989,739
Liabilities
Accounts payable and other current liabilities…………… 45,730 99,279 145,009
Noncurrent liabilities:
Due within one year………………………………… 44,072 - 44,072
Due in more than one year………………………… 730,088 - 730,088
Total Liabilities……………………………… 819,890 99,279 919,169
Net Position
Net investment in capital assets…............................... 2,656,542 574,996 3,231,538
Restricted for:
Capital projects……………………………………… 5,130 - 5,130
Police protection…………………………………… 43,328 - 43,328
Streets……………………………………………… 23,083 - 23,083
Debt service………………………………………… 190,595 - 190,595
Unrestricted……………………………………………… 338,438 238,458 576,896
Total Net Position…………………………… $ 3,257,116 $ 813,454 $ 4,070,570
The notes to financial statements are an integral part of this statement

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STATEMENT OF ACTIVITIES
Program Revenues Changes in Net Position

Operating Capital
Charges for Grants and Grants and Governmental Business-Type
FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
Governmental administration………………… $ 599,968 $ 102,281 $ 223,851 $ 16,300 $ (257,536) $ - $ (257,536)
Police protection……………………………… 775,372 710,025 39,110 - (26,237) - (26,237)
Fire protection………………………………… 131,622 - 1,756 - (129,866) - (129,866)
Streets………………………………………… 36,026 - - - (36,026) - (36,026)
Parks and recreation…………………………… 118,304 115,869 - - (2,435) - (2,435)
Interest on long-term debt…………………… 37,652 - - - (37,652) - (37,652)
Total Governmental Activities………… 1,698,944 928,175 264,717 16,300 (489,752) - (489,752)
Business-Type Activities
Gas system…………………………………… 208,649 145,043 - - - (63,606) (63,606)
Water system………………………………… 646,481 739,886 - - - 93,405 93,405
Total Business-Type Activities………… 855,130 884,929 - - - 29,799 29,799
Total……………………………………………… $ 2,554,074 $ 1,813,104 $ 264,717 $ 16,300 (489,752) 29,799 (459,953)

General Revenues
Taxes……………………………………………………………………………………………………… 332,361 - 332,361
Licenses and permits……………………………………………………………………………………… 71,018 - 71,018
Other……………………………………………………………………………………………………… 43,934 154 44,088
Transfers……………………………………………………………………………………………………… 45,485 (45,485) -
Total General Revenues and Transfers…………………………………………………………………… 492,798 (45,331) 447,467
Change in Net Position……………………………………………………………………………………… 3,046 (15,532) (12,486)
Beginning Net Position……………………………………………………………………………………… 3,254,070 828,986 4,083,056
Ending Net Position………………………………………………………………………………………… $ 3,257,116 $ 813,454 $ 4,070,570
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BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2021
Capital USDA Other Total
General Greenway Projects Repayment Governmental Governmental
Fund Fund Fund Fund Funds Funds
Assets
Cash and cash equivalents………………………….. $ 250,635 $ 53,463 $ 2,280 $ 190,595 $ 62,962 $ 559,935
Receivables, net:
Taxes……………………………………………. 67,534 - - - - 67,534
Accounts………………………………………. 8,320 - - - - 8,320
Intergovernmental………………………………. 1,586 - - - 2,498 4,084
Due from other funds……………………………… - - 2,850 - 951 3,801
Prepaids……………………………………………. 6,877 - - - - 6,877
Total Assets……………………………….. $ 334,952 $ 53,463 $ 5,130 $ 190,595 $ 66,411 $ 650,551
Liabilities, Deferred Inflows of

Resources, and Fund Balances
Liabilities
Accounts payable and other liabilities…………...…… $ 15,041 $ - $ - $ - $ - $ 15,041
Due to other funds……………………...…………… 4,247 - - - - 4,247
Total Liabilities……………………………… 19,288 - - - - 19,288
Deferred Inflows of Resources

Unavailable revenues…………………..…………… 47,527 - - - - 47,527
Total Liabilities and Deferred
Inflows of Resources…………………… 66,815 - - - - 66,815
Fund Balances
Nonspendable - prepaids…………………………. 6,877 - - - - 6,877
Restricted for:
Capital projects………………………………… - - 5,130 - - 5,130
Police protection……………………………….. - - - - 43,328 43,328
Streets…………………………………………. - - - - 23,083 23,083
Debt service…………………………………… - - - 190,595 - 190,595
Assigned for parks and recreation…………………. - 53,463 - - - 53,463
Unassigned……………………………………….. 261,260 - - - - 261,260
Total Fund Balances………………………… 268,137 53,463 5,130 190,595 66,411 583,736
Total Liabilities, Deferred Inflows

of Resources and Fund Balances……… $ 334,952 $ 53,463 $ 5,130 $ 190,595 $ 66,411
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not expendable, available financial resources and,
therefore, are not reported in the funds……………………………………………………………………………………… 3,430,702
Certain revenues reported in the statement of activities are not available to pay the liabilities of the
current year, and, therefore, are reported as deferred inflows of resources in the funds……………………………………. 47,527
Long-term liabilities are not due and payable in the current year, and therefore, are not reported in the funds………………… (804,849)
Net Position of Governmental Activities………………………………………………………………………………….. $ 3,257,116

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STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Capital USDA Other Total
General Greenway Projects Repayment Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
Taxes…………………………………………… $ 291,545 $ - $ - $ - $ - $ 291,545
Liceneses and permits………………………… 71,018 - - - - 71,018
Intergovernmental……………………………… 272,728 - 16,300 - 31,555 320,583
Charges for services…………………………… 67,251 115,869 - - - 183,120
Fines and forfeitures…………………………… 640,480 - - - 69,545 710,025
Other revenues………………………………… 81,168 - 3 18 - 81,189
Total Revenues………………………… 1,424,190 115,869 16,303 18 101,100 1,657,480
Expenditures
Current:
Governmental administration……………… 503,748 - 29,673 - - 533,421
Police protection…………………………… 685,623 - - - 32,055 717,678
Fire protection……………………………… 92,594 - - - - 92,594
Streets……………………………………… - - - - 36,026 36,026
Parks and recreation………………………… - 111,168 - - - 111,168
Capital Outlays………………………………… 80,045 - 32,155 - - 112,200
Debt Service:
Principal…………………………………… - - - 23,000 - 23,000
Interest and fiscal charges…………………… - - - 28,525 - 28,525
Total Expenditures…………………… 1,362,010 111,168 61,828 51,525 68,081 1,654,612
Excess (Deficiency) of Revenues

Over (Under) Expenditures…………………… 62,180 4,701 (45,525) (51,507) 33,019 2,868
Other Financing Sources (Uses)

Transfers in……………………………………… 231,149 - - 60,550 1,026 292,725
Transfers out…………………………………… (202,307) (4,476) - - (40,457) (247,240)
Net Other Financing Sources (Uses)… 28,842 (4,476) - 60,550 (39,431) 45,485
Net Change in Fund Balances…………………… 91,022 225 (45,525) 9,043 (6,412) 48,353
Beginning Fund Balances…………………………… 177,115 53,238 50,655 181,552 72,823 535,383
Ending Fund Balances…………………………… $ 268,137 $ 53,463 $ 5,130 $ 190,595 $ 66,411 $ 583,736

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RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF ACTIVITIES
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds .................................................... $ 48,353
Governmental funds report capital outlays as expenditures; however, in the statement of

activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. .................................................................................... (58,205)
Revenues are recognized in the governmental funds when they are both measurable and
available to pay the liabilities of the current period. Revenues are recognized in the
statement of activities when they are earned.
Increase (Decrease) in earned but unavailable deferred revenue in government funds... (975)
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however, has any effect on net
position. Also, governmental funds report the effect of premiums and discounts when debt
is first issued, whereas these amounts are deferred and amortized in the statement of
activities............................................................................................................................ 23,000
Some expenses reported in the statement of activities differ from amounts reported as
expenditures in governmental funds.
Decrease (Increase) in accrued interest payable .............................................................. (9,127)
Change in net position of governmental activities .............................................................. $ 3,046

20
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2021
Gas Water
System System Totals
Assets
Current Assets
Cash and cash equivalents………………………………… $ 32,213 $ 109,524 $ 141,737
Receivables, net of allowances for uncollectibles………… 6,856 98,219 105,075
Due from other funds……………………………………… 14 432 446
Inventories………………………………………………… 1,382 - 1,382
Prepaids…………………………………………………… 6,877 6,877 13,754
Total Current Assets………………………………… 47,342 215,052 262,394
Restricted cash………………………………………………… 6,101 69,242 75,343

Capital assets, net of accumulated depreciation:
Land……………………………………………………… 1,000 1,000 2,000
Buildings…………………………………………………… 446 6,127 6,573
Equipment………………………………………………… 899 2,014 2,913
Infrastructure……………………………………………… 26,211 537,299 563,510
Total Assets…………………………………………. 81,999 830,734 912,733
Liabilities
Current Liabilities
Accounts payable and other current liabilities…………… 14,137 85,142 99,279
Total Current Liabilities…………………………… 14,137 85,142 99,279
Net Position
Net investment in capital assets…........................……… 28,556 546,440 574,996
Unrestricted……………………………………………… 39,306 199,152 238,458
Total Net Position……………………………….…… $ 67,862 $ 745,592 $ 813,454

21
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Gas Water
System System Total
Operating Revenues
Charges for sales and services………………………………… $ 145,043 $ 739,886 $ 884,929
Operating Expenses
Cost of sales and services…………………………………… 206,548 624,697 831,245
Depreciation of capital assets………………………………… 2,101 21,784 23,885
Total Operating Expenses……………………………… 208,649 646,481 855,130
Operating Income (Loss)……………………………………… (63,606) 93,405 29,799
Non-operating revenue - interest earned………………………… 154 - 154
Income (Loss) Before Contributions and Transfers………… (63,452) 93,405 29,953
Contributions and Transfers

Transfers in…………………………………………………… 89,085 25,404 114,489
Transfers out………………………………………………… (40,268) (119,706) (159,974)
Total Contributions and Transfers……………………… 48,817 (94,302) (45,485)
Changes in Net Position………………………………………… (14,635) (897) (15,532)
Beginning Net Position…………………………………………… 82,497 746,489 828,986
Ending Net Position…………………………………………… $ 67,862 $ 745,592 $ 813,454

22
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Gas Water
System System Total
Cash Flows From Operating Activities
Receipts from customers and users……………………………… $ 145,936 $ 734,227 $ 880,163
Payments to suppliers……………………………………………… (121,538) (499,133) (620,671)
Payments to employees…………………………………………… (86,903) (135,002) (221,905)
Net Cash Provided (Used) by
Operating Activities…………………………………… (62,505) 100,092 37,587
Cash Flows From Noncapital Financing Activities

Transfers from other funds………………………………………… 89,085 - 89,085
Transfers to other funds…………………………………………… (40,268) (94,302) (134,570)
Net Cash Provided (Used) by Noncapital
Financing Activities…………………………………… 48,817 (94,302) (45,485)
Cash Flows From Capital and Related Financing Activities

Acquisition and construction of capital assets……………………… - - -
Net Cash Provided (Used) by Capital and
Related Financing Activities………………………… - - -
Cash Flows From Investing Activities

Decrease (Increase) in restricted assets - customer deposits……… 1,100 (2,511) (1,411)
Interest received…………………………………………………… 154 - 154
Net Cash Provided (Used) by
Investing Activities…………………………………… 1,254 (2,511) (1,257)
Net Increase (Decrease) in Cash and Cash Equivalents…………… (12,434) 3,279 (9,155)
Beginning Cash and Cash Equivalents………………………………… 44,647 106,245 150,892
Ending Cash and Cash Equivalents………………………………… $ 32,213 $ 109,524 $ 141,737

23
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
Gas Water
System System Total
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss)…………………………………… $ (63,606) $ 93,405 $ 29,799
Depreciation………………………………………………… 2,101 21,784 23,885
Change in receivables……………………………………… 1,793 (7,044) (5,251)
Change in prepaids………………………………………… (2,312) (2,312) (4,624)
Change in inventories……………………………………… 1,682 - 1,682
Change in accounts payable and other liabilities…………… (2,163) (5,741) (7,904)
Change in due from/due to other funds…………………… - - -
Change in accrued payroll and related liabilities…………… - - -
Net Cash Provided (Used) By Operating Activities…………… $ (62,505) $ 100,092 $ 37,587
Noncash Investing, Capital and Financing Activities

None………………………………………………………… $ - $ - $ -

24
25
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
Note 1 - Summary of Significant Accounting Policies
Reporting Entity
The Town of Brookside, Alabama (the “Town”) was incorporated as a municipality in 1897. The Town
operates under the Mayor-Council form of government and provides the following services: public safety
(police and fire), infrastructure maintenance, parks and recreation, gas system, water system, planning and
zoning, and general administration.
Description of Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the activities of the Town. Governmental activities, which
normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are
reported separately from business-type activities, which rely to a significant extent on fees and charges to
external customers for support.
Basis of Presentation – Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. The
governmental activities column incorporates data from governmental funds, while the business-type
activities column incorporates data from the Town’s enterprise funds. Separate financial statements are
provided for governmental and proprietary funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are
reasonably equivalent in value to the interfund services provided and other charges between the Town’s
water and gas functions and various other functions of the Town. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
As required by GAAP, these financial statements present the Town and its component units, legally separate
entities for which the Town is considered to be financially accountable. The Town has no blended or
discretely presented component units.
Brookside Gas System, Brookside Water System, and Brookside Parks and Recreation Board - Because
these entities are not legally separate from the Town, they are considered, for financial reporting
purposes, part of the primary government that holds their corporate powers. Their financial information
has been included with the financial data of the Town.
Basis of Presentation – 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 emphasis of fund financial statements
is on major governmental and enterprise funds, each displayed in a separate column. All remaining
governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual
governmental and enterprise funds are reported in separate columns in the fund financial statements.
26
September 30, 2021
Note 1 - Summary of Significant Accounting Policies - Continued
Basis of Presentation - Fund Financial Statements - Continued
The Town reports the following major governmental funds:

The general fund is the primary operating fund of the Town. General tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are accounted for
in this fund. Expenditures applicable to the general operations of the Town are paid from the
general fund.
The greenway fund is used to account for the revenues and expenditures associated with the
Town’s campground and canoe rental activities.
The capital projects fund is used to account for Alabama Trust Fund revenues (which are to be
used only for capital outlays), along with other revenues and debt proceeds intended for capital
projects.
The USDA repayment fund is a debt service fund of the Town. Amounts accounted for in this
fund consist of funds set aside for the payment of principal and interest on the Town’s Series 2008
General Obligation Warrants.
The Town reports the following major proprietary funds:
The gas system fund accounts for the activities of the Town’s natural gas system.
The water system fund accounts for the activities of the Town’s water system.
Additionally, the Town reports the following fund types:
The Town’s nonmajor special revenue funds are used to account for resources that are legally
restricted to expenditure for specific purposes, not including those accounted for in capital projects
funds or permanent funds.
During the course of operations, the Town has activity between funds for various purposes. Any residual
balances outstanding at year end are reported as due from/due to other funds and advances to/advances from
other funds. While these balances are reported in fund financial statements, certain eliminations are made in
the preparation of the government-wide financial statements. Balances between the funds included in
governmental activities are eliminated so that only the net amount is included as internal balances in the
governmental activities column. Similarly, balances between the funds included in business-type activities
are eliminated so that only the net amount is included as internal balances in the business-type activities
column.
27
September 30, 2021
Note 1 - Summary of Significant Accounting Policies – Continued
Basis of Presentation - Fund Financial Statements - Continued
Further, certain activity occurs during the year involving transfers of resources between funds. In fund
financial statements these amounts are reported at gross amounts as transfers in/transfers out. While
reported in fund financial statements, certain eliminations are made in the preparation of government-wide
financial statements. Transfers between the funds included in governmental activities are eliminated so that
only the net amount is included as transfers in the governmental activities column. Similarly, transfers
between the funds included in business-type activities are eliminated so that only the net amount is included
as transfers in the business-type activities column.
Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions
or events for recognition in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when the related liability is incurred.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items
are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions that affect reported amounts and
disclosures in the financial statements. Accordingly, actual results could differ from these estimates.
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
Cash and Investments: Cash includes cash on hand, amounts in demand deposits, and short-term
investments with a maturity date within three months of the date acquired by the Town. State statutes
authorize the Town to invest in U.S. Government obligations, U.S. Government agency obligations, U.S.
corporate stock, U.S. corporate debt, State of Alabama Government obligations, County Government
obligations, and other Municipal Government obligations. All investments are reported at fair value.
28
September 30, 2021
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance -

Continued
For purposes of the statements of cash flows, cash and cash equivalents include short-term investments
with an original maturity date of three months or less.
Receivables and Payables: Activity between funds that are representative of lending and borrowing
arrangements, as well as all other outstanding balances between funds at year end are referred to as either
due to/from other funds (for the current portion) or advances to/from other funds (for the noncurrent
portion). Any outstanding balances between governmental activities and business-type activities are
reported in the government-wide Statement of Net Position as internal balances.
Receivables and Payables – Continued: Advances to other funds are offset by a fund balance reserve in
the fund financial statements to indicate that they are not available for appropriation and are not
expendable available financial resources.
All receivables are shown net of an allowance for uncollectibles.
Inventories and Prepaid Items: All inventories are valued at cost using the first in/first out method.
Inventories of governmental funds are recorded as expenditures when consumed rather than when
purchased.
Certain payments to vendors reflect costs applicable to future periods and are recorded as prepaid items in
both government-wide and fund financial statements.
Restricted Assets: Certain proceeds of long-term debt, as well as certain resources set aside for its
repayment, are classified as restricted assets because they are maintained in separate bank accounts and
their use is limited by applicable debt agreements.
Capital Assets: Capital outlays are recorded as expenditures in governmental fund financial statements.
In contrast, capital assets, which include land, buildings, improvements other than buildings, equipment,
construction in progress, and infrastructure (e.g., roads, bridges, sidewalks and similar items), are reported
in the government-wide and proprietary fund financial statements.
Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair value at the date of donation. The cost of normal
maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are
not capitalized. Capital assets are defined by the Town as assets with an estimated useful life in excess of
one year, and are depreciated using the straight-line method over their estimated useful lives. Interest
incurred during the construction phase of major capital projects is expensed as incurred.
29
September 30, 2021

Continued
Deferred Outflows/Inflows of Resources: In addition to assets, the statement of financial position will
sometimes report a 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 a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until then. The Town reports unavailable revenue from property taxes in
the governmental funds balance sheet as a deferred inflow of resources.
Long-Term Obligations: In the government-wide and proprietary 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. Premiums, discounts, and deferred amounts on refunding
transactions are deferred and amortized over the life of the related debt using the straight-line method.
Long-term debt is reported net of the unamortized portion of these amounts. Long-term obligations are
not reported in governmental funds.
Net Position Flow Assumption: Sometimes the Town will fund outlays for a particular purpose from both
restricted and unrestricted sources. In order to calculate the amounts to report as restricted net position
and unrestricted net position in the government-wide and proprietary fund financial statements, a flow
assumption must be made about the order in which the resources are considered to be applied. It is the
Town’s policy to consider restricted net position to have been depleted before unrestricted net position is
applied.
Fund Balance Flow Assumption: Sometimes the Town will fund outlays for a particular purpose from
both restricted and unrestricted resources. In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow
assumption must be made about the order in which the resources are considered to be applied. It is the
Town’s policy to consider restricted fund balance to been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the
same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned
fund balance is applied last.
Fund Balance Policies: Fund balance of governmental funds is reported in various categories based on
the nature of any limitations requiring the use of resources for specific purposes. The Town itself can
establish limitation on the use of resources through either a commitment (committed fund balance) or and
assignment (assigned fund balance).
30
September 30, 2021

Continued
The committed fund balance classification includes amounts that can be used only for the specific
purposes determined by a formal action of the Town Council. The Town Council is the highest level of
decision-making authority for the Town that 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 is taken (the adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the Town for specific
purposes but do not meet the criteria to be classified as committed. Unlike commitments, assignments
generally only exist temporarily. In other words, an additional action does not normally have to be taken
for the removal of an assignment.
Revenues and Expenditures/Expenses
Program Revenues: Amounts reported as program revenues include 1 - Charges to customers who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment of the Town and 2 - grants and contributions (including special assessments) that are restricted to
meeting the operational or capital requirements of a particular function or segment. All taxes, including
those dedicated for a specific purpose, and other internally dedicated resources are reported as general
revenues rather than as program revenues.
Accrued Revenues – Governmental Fund Financial Statements: Property taxes, sales and use taxes, beer
taxes, occupational taxes, lodging taxes, rental and leasing taxes, payments in lieu of taxes,
intergovernmental revenues and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal year. All other
revenues are considered to be measurable and available only when cash is received by the Town.
Compensated Absences: Town employees do not earn vesting accumulating rights to receive vacation or
sick leave.
Proprietary Funds Operating and Nonoperating Revenues and Expenses: Proprietary funds distinguish
operating revenues and expenses from nonoperating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a proprietary fund’s
principal ongoing operations. The principal operating revenues of the Town’s enterprise funds and
internal service fund are charges to customers and users for sales and services. Operating expenses for
enterprise funds and the internal service fund include the cost of sales and services and depreciation of
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
31
September 30, 2021
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government-wide and proprietary fund financial statements to the extent that those
standards do not conflict with or contradict the guidance of the GASB. The Town also has the option of
following subsequent private-sector guidance for its business-type activities and enterprise funds, subject to
this same limitation. The Town has elected not to follow subsequent private-sector guidance.
Subsequent Events: In preparing the financial statements, management evaluated subsequent events
through November 21, 2022, the date the financial statements were available to be issued.
Note 2 - Reconciliation of Government-Wide and Fund Financial Statements
Explanation of certain differences between the governmental funds balance sheet and the government-
wide statement of net position:
The governmental funds balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the statement of net position.
One element of that reconciliation explains that long-term liabilities are not due and payable in the current
year, and, therefore, are not reported in the funds. The details of this difference are as follows:
General Obligation Warrants and Capital Leases Payable ................................................. $ (774,160)

Accrued Interest Payable .................................................................................................... (30,689)
Net adjustment to decrease fund balance – total governmental funds

to arrive at net position – governmental activities ........................................................... $ (804,849)
Explanation of certain differences between the governmental funds statement of revenues,

expenditures and changes in fund balances and the government-wide statement of activities:
The governmental funds statement of revenues, expenditures and changes in fund balances includes a
reconciliation between net change in fund balances – total governmental funds and changes in net
position – governmental activities as reported in the government-wide statement of activities. One
element of that reconciliation explains that governmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. The details of this difference are as follows:
Capital outlays .................................................................................................................... $ 112,200

Depreciation expense .......................................................................................................... (170,405)
Net adjustment to decrease Net Change in Fund Balances – total governmental funds
to arrive at changes in net position of governmental activities ........................................ $ (58,205)
32
September 30, 2021
Note 2 - Reconciliation of Government-Wide and Fund Financial Statements
Explanation of certain differences between the governmental funds statement of revenues,

expenditures and changes in fund balances and the government-wide statement of activities -
Continued:
Another element of that reconciliation states that the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principle of long-term debt consumes the
current financial resources of governmental funds. Neither transaction, however, has any effect on net
position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued, whereas these amounts are deferred and amortized in the statement of
activities. The details of this difference are as follows:
Proceeds of long-term debt ................................................................................................. $ —

Long-term debt principal repayments ................................................................................ 23,000
Net adjustment to increase Net Change in Fund Balances – total governmental

funds to arrive at changes in net position of governmental activities .............................. $ 23,000
Note 3 - Stewardship, Compliance, and Accountability
Budgetary Information: The Town does not adopt annual budgets.
Note 4 - Deposits and Investments
Deposits - On September 30, 2021, the carrying amount of the Town’s demand deposits and certificates of
deposits in all funds was $777,015, and the bank balance was $796,912. All of the bank balance was covered
by federal depository insurance or by the State of Alabama’s SAFE Program. The SAFE Program requires all
covered public entities to deposit their funds with financial institutions that meet the requirements of the SAFE
Program and that have been designated as Qualified Public Depositories (“QPD’s”). These funds are protected
by a collateral pool administered by the State Treasurer. In the event of a failure of a QPD, securities pledged
by that QPD would be liquidated by the State Treasurer to replace the public deposits not covered by the
FDIC. A reconciliation of deposits and investments to the statement of net position for the primary
government follows:
Cash on hand ....................................................................................................................... $ —

Carrying amount of deposits ............................................................................................... 777,015
Total ................................................................................................................................. $ 777,015
Cash and cash equivalents .................................................................................................. $ 701,672

Restricted assets - cash........................................................................................................ 75,343
Total ................................................................................................................................. $ 777,015
33
September 30, 2021
Note 5 - Receivables
Receivables of the Town’s individual major funds and non-major funds in the aggregate were as follows
at year-end:
General Gas Water Nonmajor
Fund System System Funds Total
Taxes receivable…………………… $ 67,534 $ - $ - $ - $ 67,534

Accounts receivable……………… 8,497 7,206 102,640 - 118,343
Intergovernmental receivables…… 1,586 - - 2,498 4,084
Gross receivables………………… 77,617 7,206 102,640 2,498 189,961
Allowance for uncollectibles……… (177) (350) (4,421) - (4,948)
Net receivables…………………… $ 77,440 $ 6,856 $ 98,219 $ 2,498 $ 185,013
The Town reports revenues net of uncollectible amounts. Total uncollectible amounts related to revenues
of the current year were:
Gas Water
General System System Total
$ 10 $ — $ 489 $ 499
(The remainder of this page intentionally left blank)
34
September 30, 2021
Note 6 - Capital Assets
The following table summarizes the changes in capital assets during the year:
Beginning Ending
Balance Additions Disposals Balance
GOVERNMENTAL ACTIVITIES:
Capital Assets Not Being Depreciated

Land…………………………………………… $ 307,084 $ - $ - $ 307,084
Construction in progress………………………… - - - -
Total Capital Assets Not
Being Depreciated……………………… 307,084 - - 307,084
Capital Assets Being Depreciated
Buildings………………………………………… 3,400,370 10,735 - 3,411,105
Equipment……………………………………… 1,233,934 101,465 - 1,335,399
Infrastructure…………………………………… 392,834 - - 392,834
Total Capital Assets
Being Depreciated……………………… 5,027,138 112,200 - 5,139,338
Less Accumulated Depreciation On
Buildings………………………………………… (809,794) - (72,122) (881,916)
Equipment……………………………………… (926,927) - (90,526) (1,017,453)
Infrastructure…………………………………… (108,594) - (7,757) (116,351)
Total Accumulated Depreciation………… (1,845,315) - (170,405) (2,015,720)
Net Capital Assets

Being Depreciated……………………… 3,181,823 112,200 (170,405) 3,123,618
Net Capital Assets Used in the Operation

of Govermental Activities…………………… $ 3,488,907 $ 112,200 $ (170,405) $ 3,430,702
BUSINESS-TYPE ACTIVITIES
Capital Assets Not Being Depreciated

Land…………………………………………… $ 2,000 $ - $ - $ 2,000
Construction in progress………………………… - - - -
Total Capital Assets Not
Being Depreciated……………………… 2,000 - - 2,000
Capital Assets Being Depreciated
Buildings………………………………………… 24,311 - - 24,311
Equipment……………………………………… 104,326 - - 104,326
Infrastructure…………………………………… 1,853,116 - - 1,853,116
Total Capital Assets
Being Depreciated……………………… 1,981,753 - - 1,981,753
Less Accumulated Depreciation On
Buildings………………………………………… (17,540) - (98) (17,638)
Equipment……………………………………… (98,770) - (2,740) (101,510)
Infrastructure…………………………………… (1,268,562) - (21,047) (1,289,609)
Total Accumulated Depreciation………… (1,384,872) - (23,885) (1,408,757)
Net Capital Assets

Being Depreciated……………………… 596,881 - (23,885) 572,996
Net Capital Assets Used in the Operation

of Business-Type Activities…………………… $ 598,881 $ - $ (23,885) $ 574,996
35
September 30, 2021
Note 6 - Capital Assets - Continued
Depreciation expense was charged to functions of the Town as follows:
Governmental Activities:
Governmental administration…………………………………………………… $ 66,547
Police protection………………………………………………………………… 57,694
Fire protection…………………………………………………………………… 39,028
Parks and recreation……………………………………………………………… 7,136
Total Depreciation Expense - Governmental Activities………………… $ 170,405
Business-Type Activities:
Gas system……………………………………………………………………… $ 2,101
Water system…………………………………………………………………… 21,784
Total Depreciation Expense - Business-Type Activities………………… $ 23,885
Note 7 - Interfund Receivables, Payables and Transfers
The following is a detailed listing of interfund balances at year-end:

Interfund Interfund
Receivable Payable
General Fund………………………………………………… $ - $ 4,247

State Four Cent and Five Cent Gas Tax Fund……………… 951 -
Capital Projects Fund………………………………………… 2,850 -
Gas System…………………………………………………… 14 -
Water System………………………………………………… 432 -
$ 4,247 $ 4,247
36
September 30, 2021
Note 7 - Interfund Receivables, Payables and Transfers - Continued
The following is a detailed listing of interfund transfers during the year:
Purpose Fund Transferred From Fund Transferred To Amount
Cash for operations Water System Gas System $ 89,085

Cash for debt service Water System USDA Repayment Fund 30,500
Cash for debt service Gas System USDA Repayment Fund 23,000
Cash for operations Gas System General Fund 17,268
Cash for debt service General Fund USDA Repayment Fund 7,050
Cash for operations General Fund Water System 25,404
Cash for operations 4 and 5 Cent Gas Tax Fund General Fund 1,108
Cash for operations Greenway Fund General Fund 4,476
Cash for operations Corrections Fund General Fund 39,349
$ 237,240
Note 8 - Long-term Liabilities
Changes in long-term liabilities during the year are summarized as follows:

Due Due in
Beginning Ending Within More Than
Balance Additions Reductions Balance One Year One Year
General Obligation Warrants,
Series 2008…………………………………………… $ 652,000 $ - $ (23,000) $ 629,000 $ 24,000 $ 605,000
Capital Lease…......................................................... 145,160 - - 145,160 20,072 125,088
Total…..................................................................... $ 797,160 $ - $ (23,000) $ 774,160 $ 44,072 $ 730,088
Warrants, Notes, and Capital Leases
The Town issues long-term warrants, notes, and capital leases to provide funds for the acquisition and
construction of major capital facilities and equipment. The outstanding debt was issued for governmental
activities.
General Obligation Warrants -
$846,000 General Obligation Warrants, Series 2008; due in annual principal installments
ranging from $14,000 to $49,000 beginning January 9, 2010 and continuing through
January 9, 2039; with interest payable annually on January 9 at 4.375 percent. .......................... $ 629,000
37
September 30, 2021
Note 8 - Long-term Liabilities - Continued

General Obligation Warrants - Continued
The following schedule shows debt service to maturity for warrants and notes payable outstanding at
September 30, 2021:
Principal Interest Total
Year ending September 30,
2022…………………………………………………………… $ 24,000 $ 27,519 $ 51,519
2023…………………………………………………………… 25,000 26,469 51,469
2024…………………………………………………………… 26,000 25,375 51,375
2025…………………………………………………………… 27,000 24,238 51,238
2026…………………………………………………………… 28,000 23,056 51,056
2027-2031……………………………………………………… 160,000 95,769 255,769
2032-2036……………………………………………………… 198,000 57,575 255,575
2037-2041……………………………………………………… 141,000 12,513 153,513
Total…………………………………………………………… $ 629,000 $ 292,514 $ 921,514
Capital Lease -
Capital lease of 4 Police vehicles; dated June 5, 2019; due in annual installments of $30,857
beginning October 1, 2020 and continuing through October 1, 2026. Future minimum
lease payments are as follows for the fiscal years ending September 30:
2022…............................................................................................ $ 30,857
2023…............................................................................................ 30,857
2024…............................................................................................ 30,857
2025…............................................................................................ 30,857
2026…............................................................................................ 30,857
2027…............................................................................................ 30,857
Total…............................................................................................ 185,142
Less: Amounts representing interest…........................................... (39,982)
Net Present Value of Future Minimum Lease Payments…............... $ 145,160
38
September 30, 2021
Note 9 - Claims and Judgments

The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; job-related illnesses and injuries to employees; and natural disasters. The Town has
purchased commercial insurance coverage with varying coverage amounts and deductibles. Settlements
have not exceeded coverages in any of the last three fiscal years.
Note 10 - Contingencies
Various lawsuits are filed against the Town from time to time. In addition, potential claims may exist which
have not yet resulted in lawsuits. In the opinion of the Town’s management, the potential adverse impact of
all these claims, individually or in the aggregate, cannot be estimated at this time.
The Town from time to time receives federal and state grants for specific purposes that are subject to
review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the
grantor agencies for expenditures disallowed under the terms of the grants. Town management believes
such disallowances, if any, will be immaterial.
The Town faces multiple lawsuits regarding police practices. In the opinion of the Town’s management,
the potential adverse impact of all these claims, individually or in the aggregate, cannot be estimated at this
time.
39
COMBINING FINANCIAL
STATEMENTS
40
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
September 30, 2021
State Four
Cent and State
Five Cent Seven Total
Gas Tax Cent Gas Corrections Nonmajor
Fund Tax Fund Fund Funds
Assets
Cash and cash equivalents……………………… $ 19,461 $ 173 $ 43,328 $ 62,962
Intergovernmental receivables…………………… 1,158 1,340 - 2,498
Due from other funds…………………………… 951 - - 951
Total Assets………………………………… $ 21,570 $ 1,513 $ 43,328 $ 66,411
Liabilities and Fund Balances
Liabilities
Accounts payable and other liabilities…………… $ - $ - $ - $ -
Fund Balances
Restricted………………………………………… 21,570 1,513 43,328 66,411
Assigned………………………………………… - - - -
Total Fund Balances………………………… 21,570 1,513 43,328 66,411
Total Liabilities and Fund Balances……… $ 21,570 $ 1,513 $ 43,328 $ 66,411
41
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
State Four
Cent and State
Five Cent Seven Total
Gas Tax Cent Gas Corrections Nonmajor
Fund Tax Fund Fund Funds
Revenues
Intergovernmental……………………………………… $ 17,997 $ 13,558 $ - $ 31,555
Fines and forfeitures…………………………………… - - 69,545 69,545
Total Revenues…………………………………… 17,997 13,558 69,545 101,100
Expenditures
Current:
Police protection…………………………………… - - 32,055 32,055
Streets……………………………………………… 21,080 14,946 - 36,026
Capital outlays………………………………………… - - - -
Total Expenditures……………………………… 21,080 14,946 32,055 68,081
Excess (Deficiency) of Revenues

Over (Under) Expenditures…………………… (3,083) (1,388) 37,490 33,019
Other Financing Sources (Uses)

Transfers in…………………………………………… - 1,026 - 1,026
Transfers out………………………………………… (1,108) - (39,349) (40,457)
Total Other Financing Sources (Uses)………… (1,108) 1,026 (39,349) (39,431)
Net Change in Fund Balances………………………… (4,191) (362) (1,859) (6,412)
Beginning Fund Balances………………………………… 25,761 1,875 45,187 72,823
Ending Fund Balances…………………………………… $ 21,570 $ 1,513 $ 43,328 $ 66,411
42
43
GOVERNMENT AUDIT SECTION
44
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENTAUDITING STANDARDS
To the Honorable Mayor and Members of the Town Council

of The Town of Brookside, Alabama
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the Town of Brookside, Alabama (the “Town”), as of and for the year ended September 30, 2021, and the
related notes to the financial statements, which collectively comprise the Town’s basic financial
statements, and have issued our report thereon dated November 21, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal
control over financial reporting (internal control) to determine the 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 the effectiveness of the Town’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the Town’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in 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 did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified. We did identify certain deficiencies in internal
control, described in the accompanying schedule of findings and responses as items 04-01, 04-02, 13-01,
and 21-01, that we consider to be significant deficiencies.
Phone: 205.969.3443 3176 Cahaba Heights Road, Suite 100 pmorgan@morgancpas.com
Fax: 205.969.3445 Birmingham, AL 35243 www.morgancpas.com
45
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’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 with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards and which are described in the accompanying schedule of findings
and responses as item 21-02.
The Town’s Response to Findings

The Town’s response to the findings identified in our audit is described in the accompanying schedule of
findings and responses. The Town’s response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Town’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Birmingham, Alabama
November 21, 2022
Phillip Morgan & Company P.C.
46
SCHEDULE OF FINDINGS AND RESPONSES
I. Summary of Auditor’s Results
Financial Statements
 Type of auditor’s report issued: Unmodified

 Internal control over financial reporting:
o Material weakness(es) identified? Yes X No
o Significant deficiency(ies) identified not
considered to be material weaknesses? X Yes None Reported
 Noncompliance material to financial
statements noted? Yes X No
II. Financial Statement Findings
04-01
Condition: Due to the Town’s small staff size, a lack of segregation of duties exists in one or
more areas.
Context: During the performance of our audit, we observed the operation of some controls
in place that compensate somewhat for this weakness.
Effect: The Town’s assets are not completely safeguarded from loss occurring because
of employees performing incompatible job functions.
Cause: Small staff size.
Recommendation: The mayor and council should continue to closely monitor this situation.
Views of Responsible
officials and planned
corrective actions: We agree that we have a lack of segregation of duties, but we have no funds to
hire additional office staff at this time.
47
II. Financial Statement Findings - Continued
04-02
Condition: The Town does not have an annual budget.
Context: Budget controls are essential to (1) set public policy, (2) act as Town Council
control over taxing and spending by the mayor, and (3) to serve as a financial
planning tool.
Effect: The Town’s sources and uses of funds are not controlled by or monitored in
relation to budgeted amounts.
Cause: The Town does not have a policy of adopting an annual budget.
Recommendation: The Town should adopt and adhere to a policy of utilizing a formal budgetary
process.
officials and planned
corrective actions: While there is no legal requirement that a Town our size adopt a budget, the
Town has now established a practice of adopting an annual budget. An annual
budget was adopted for the 2021-2022 fiscal year on November 1, 2021, and an
annual budget for the 2022-2023 fiscal year will be adopted on December 5,
2022.
13-01
Condition: The Town continues to experience very high water loss percentages.
Context: The Town purchases water from a large municipal water system and in turn sells
the water to the Town’s customers. Large differences between the amount of
water purchased and the amount of water sold have resulted in significant losses
to the Town.
Effect: During the fiscal year ended September 30, 2021, the Town’s water loss totaled
27,318,103 gallons. This loss represented 35.50% of the water purchased by the
Town, and had a total cost of approximately $138,157.
Cause: The age of the water system, the materials used to construct the water system,
and difficulty in locating leaks all contribute to the water loss.
Recommendation: Management should continue to strive to reduce the water loss.
Officials and Planned
Corrective Actions: The Town management is aware of this problem, and will continue to work to
find solutions. One effort the Town has engaged in to reduce unaccounted for
water is converting all water meters to automatic meters. This should assist the
Town in controlling and reducing the amount of unaccounted for water.
48
II. Financial Statement Findings – Continued
21-01
Condition: A limited review performed by the Alabama Department of Examiners of Public

Accounts found multiple internal control deficiencies.
Context: On April 15, 2022 the Alabama Department of Examiners of Public Accounts
filed a report on its limited review of the Town’s police department expenditures,
court funded expenditures, evidence claimed to be on hand, and impound fees for
the period from October 1, 2018 through February 2, 2022.
Effect: The Town’s reported internal control deficiencies include:

 Proper documentation was not always retained to support expenditures,
 The Town’s clerks shared one cash drawer to make change for all cash
collections,
 The Town did not have a purchasing process in place, and does not adopt
an annual budget,
 Cash collected on April 27, 2021 from impound fees was still on hand on
February 8, 2022,
 Town Hall security access codes were known by the majority of
employees, and
 There was no control and accountability for receipt books issued to the
Town’s staff,
 The Town failed to maintain documentation demonstrating the public
purpose of all expenditures,
 Payments were made to individuals based on verbal attestations of the
hours worked,
 The Town did not ensure approval of expenditures from the Police
Department account were obtained as required by Town ordinance,
 Evidence inventory items were found to be stored in a disorganized and
chaotic manner,
 Nineteen firearms listed on the evidence logs were unaccounted for at the
conclusion of the Examiner’s inventory. Additionally, sixty-three
firearms and numerous ammunition magazines that were not listed on the
evidence logs were found,
 Officers did not ensure that all pertinent details were listed on evidence
logs or on evidence bags/envelopes,
 The location of cash collected as evidence was not consistent or always
properly documented,
 Access to temporary storage lockers containing evidence was not always
secured,
 Items unrelated to evidence were found stored in the Police Department’s
evidence closet.
Cause: The Town does not have written internal control policies and procedures to
address these issues.
Recommendation: Management should correct these deficiencies as soon as possible.
49
21-01 - Continued
Corrective Actions: In an effort to establish written internal control policies and procedures, the
Town has contacted the Alabama Department of Examiners of Public Accounts
and the Alabama League of Municipalities for templates and examples. Both
entities were unable to assist the Town, so we have retained an outside source to
recommend and write such necessary policies and procedures. In addition, the
Town has the following responses:
 Cash Drawer: The Town has a cash drawer for utility payments (gas,
water, and garbage). No other money goes in that drawer. Staff enters
payments and runs a report for that day and makes a bank deposit. Staff
accepts cash, checks and credit cards. Everything has to balance. The
Town has a cash drawer for business licenses, permits, reports, etc. The
Town accepts court payments, cash, credit cards, and money orders, and
has a cash box that stays in the safe. Staff hand writes receipts and a
copy remains in the receipt book. All of the receipts are prenumbered.
Staff makes bank deposits, and at the end of the month, Staff totals the
receipts in the receipt book and the Court Clerk enters the payments into
the computerized accounting system. The two different forms of
receipts (computerized and hand-written) are reconciled. The Town
keeps the deposit slips and credit card receipts and everything is
reconciled at the end of each month. No funds are comingled.
 Purchases: The department heads now keep purchases at or under

budgeted amounts. If there is a large purchase, the department heads
must receive approval from the Mayor and Town Council.
 Police Department:
o The Town is near the completion of a new property room that
will make it possible to store property and evidence adequately
and securely.
o The Town has created a new position of Property Room

Custodian. This position will be responsible for ensuring that
the chain of custody is not broken.
o Once property is transferred from the property storage area to the

new property room, all items will be entered into a barcode
system and stored properly. This will also make the retrieval of
property and inventorying property much easier.
o The Property Room Custodian will give training to officers on

the proper way of handling property. In addition, there will be a
poster outside of the passthrough lockers and by the officer’s
workstation that will remind them how to handle property
correctly.
50
21-01 - Continued
Corrective Actions:
o The Property Room Custodian will be responsible for ensuring

that all cash collected as evidence is stored appropriately and
adequately documented.
o Passthrough lockers will be used to turn in property. Proximity

card readers will be used by officers to get into their area to
prepare property to be placed inside the lockers.
o Access to the property room will be limited. Those who have

access will also have a proximity card. Each time a card is used,
it will be recorded. In addition, cameras will be situated in and
outside the building.
o No items unrelated to evidence will be stored in the new

property room.
o The Police Department will have a Standard Operating

Procedure for the property room personnel, and a Crime Scene
Policy for all personnel.
21-02
Condition: A limited review performed by the Alabama Department of Examiners of Public

Accounts found instances of noncompliance with laws and regulations.
Context: On April 15, 2022 the Alabama Department of Examiners of Public Accounts
filed a report on its limited review of the Town’s police department expenditures,
court funded expenditures, evidence claimed to be on hand, and impound fees for
the period from October 1, 2018 through February 2, 2022.
Effect: The Town’s reported instances of noncompliance with applicable laws and
regulations include:
 The Town’s Municipal Court did not comply with Rule 43 of the
Alabama Rules of Judicial Administration. Cash bonds were not recorded
or deposited properly, and written policies and procedures were not in
place to address internal controls for Municipal Court cash,
 Thirty-six percent of amounts collected by the Town for the impounding
of vehicles were for offenses not included in the Town’s ordinances, and
 The Town did not bid towing services as required by the Code of
Alabama 1975, Section 41-16-50, and awarded the contract exclusively
to one company which does not comply with Section 22 of the
Constitution of Alabama 1901.
51
21-02 - Continued
Cause: The Town does not have written internal control policies and procedures to
address these issues.
Recommendation: Management should correct these deficiencies as soon as possible.
Corrective Actions: As stated above, the Town has been actively working to establish written policies
and procedures. The Town will adopt such policies and procedures as soon as
these have been completed. In addition, the towing service contract request for
bids was sent out on July 5, 2022, and the contract was awarded to Richs
Collision Repair on August 1, 2022.
52
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The Town of Brookside Annual Financial Report 2021

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THE TOWN OF

ANNUAL FINANCIAL REPORT

September 30, 2021

PRINCIPAL TOWN OFFICIALS

September 30, 2021

Basic Financial Statements

Government Audit Section

INDEPENDENT AUDITOR’S REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

COMBINING FINANCIAL STATEMENTS

Overview of the Financial Statements

Government-wide Financial Statements

Fund Financial Statements

The Town of Brookside does not adopt an annual budget.

Notes to the Financial Statements

Government-wide Financial Analysis

Statement of Net Position

Condensed Statements of Net Position

Governmental Activities Business-Type Activities Total

The remaining unrestricted net position was $576,896.

Condensed Statements of Activities

Governmental Activities Business-Type Activities Total

Transfers………………………………………… 45,485 3,047 (45,485) (3,047) - -

Change in Net Position………………………… $ 3,046 $ (31,812) $ (15,532) $ 46,491 $ (12,486) $ 14,679

Fund Financial Analysis

Nonspendable………………………………………………… $ 6,877 $ 4,565 $ 2,312

Total Fund Balance……………………………………… $ 583,736 $ 535,383 $ 48,353

Total net position…………………………… $ 813,454 $ 828,986 $ (15,532)

Capital Assets and Debt Administration

Governmental Activities Business-Type Activities Total

Land…………………………………………… $ 307,084 $ 307,084 $ 2,000 $ 2,000 $ 309,084 $ 309,084

Total Long-Term Debt .......................................................... $ 774,160 $ 797,160

Financial Information Contact

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

Program Revenues Changes in Net Position

Total……………………………………………… $ 2,554,074 $ 1,813,104 $ 264,717 $ 16,300 (489,752) 29,799 (459,953)

Total General Revenues and Transfers…………………………………………………………………… 492,798 (45,331) 447,467

Change in Net Position……………………………………………………………………………………… 3,046 (15,532) (12,486)

Beginning Net Position……………………………………………………………………………………… 3,254,070 828,986 4,083,056

Ending Net Position………………………………………………………………………………………… $ 3,257,116 $ 813,454 $ 4,070,570

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

Liabilities, Deferred Inflows of

Deferred Inflows of Resources

Total Liabilities, Deferred Inflows

Net Position of Governmental Activities………………………………………………………………………………….. $ 3,257,116

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

Excess (Deficiency) of Revenues

Other Financing Sources (Uses)

Beginning Fund Balances…………………………… 177,115 53,238 50,655 181,552 72,823 535,383

Ending Fund Balances…………………………… $ 268,137 $ 53,463 $ 5,130 $ 190,595 $ 66,411 $ 583,736

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

Net change in fund balances - total governmental funds .................................................... $ 48,353

Governmental funds report capital outlays as expenditures; however, in the statement of

Decrease (Increase) in accrued interest payable .............................................................. (9,127)

Change in net position of governmental activities .............................................................. $ 3,046

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

Restricted cash………………………………………………… 6,101 69,242 75,343

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

Operating Income (Loss)……………………………………… (63,606) 93,405 29,799

Non-operating revenue - interest earned………………………… 154 - 154

Income (Loss) Before Contributions and Transfers………… (63,452) 93,405 29,953

Contributions and Transfers

Changes in Net Position………………………………………… (14,635) (897) (15,532)