CLEVELAND COUNTY NORTH CAROLINA

Transcription

1 CLEVELAND COUNTY NORTH CAROLINA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR THE YEAR ENDED JUNE 30, 2011 COMPARATIVE INFORMATION TO PRIOR YEAR INCLUDED SIMILAR TO GFOA'S RECOGNIZED FORMAT FOR A COMPREHENSIVE ANNUAL FINANCIAL REPORT

2 CLEVELAND COUNTY NORTH CAROLINA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR THE YEAR ENDED JUNE 30, 2011 This report was compiled by staff of the County Finance & Purchasing Department, in cooperation with the County Manager and certain staff of various other departments, primarily Human Resources, Social Services, Property Tax Administration, and Information Technology. Martin Starnes & Associates, CPAs, P.A. printed this report.

3 Page 1 of 4 I: PREFACE AND INTRODUCTION Section I 1 A. Message from the County Manager Subsection I.A 3 B. List of Principal County Officials Subsection I.B 11 C. Organizational Chart Subsection I.C 12 D. Introduction from the County Finance Director Subsection I.D 13 II: FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Section II 19 A. Report from the Independent Auditor Subsection II.A 21 B. Management's Discussion and Analysis Subsection II.B 23 C. Basic Financial Statements (includes Notes to Financial Statements) Subsection II.C Government-Wide Financial Statements Part II.C.1 38 a. Government-Wide Statement of Net Assets Exhibit II.C.1.a 39 b. Government-Wide Statement of Activities Exhibit II.C.1.b Fund Financial Statements Part II.C.2 42 a. Governmental Funds: Balance Sheet Exhibit II.C.2.a 43 a.i. Reconciliation of the 'Governmental Funds: Balance Sheet' to the 'Government- Exhibit II.C.2.a.i 44 Wide Statement of Net Assets' b. Governmental Funds: Statement of Revenues, Expenditures, and Changes in Exhibit II.C.2.b 45 Fund Balances b.i. Reconciliation of the 'Governmental Funds: Statement of Revenues, Exhibit II.C.2.b.i 46 Expenditures, and Changes in Fund Balances' to the 'Government-Wide Statement of Activities' c. General Fund: Statement of Revenues, Expenditures, and Changes in Fund Exhibit II.C.2.c 47 Balances -- Budget to Actual d. Enterprise Fund: Solid Waste Fund: Statement of Fund Net Assets Exhibit II.C.2.d 48 e. Enterprise Fund: Solid Waste Fund: Statement of Revenues, Expenses, and Exhibit II.C.2.e 49 Changes in Fund Net Assets f. Enterprise Fund: Solid Waste Fund: Statement of Cash Flows Exhibit II.C.2.f 50 g. Fiduciary Funds: Agency Funds: Statement of Fiduciary Net Assets Exhibit II.C.2.g Notes to Financial Statements Part II.C.3 52 a. Summary of Significant Accounting Policies Note a 53 b. Detail Notes on Important Items Note b 61 c. Joint Ventures Note c 81 d. Jointly Governed Organization Note d 81 e. Hospital Lease Agreement Note e 82 f. Benefit Payments Issued by the State Note f 82 g. Stewardship, Compliance, and Accountability Note g 83 h. Prior Period Adjustments Note h 83 (continued on next page)

4 Page 2 of 4 II: FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION (continued from prior page) D. Required Supplementary Information: Subsection II.D Law Enforcement Officers' Special Separation Allowance Financial Schedules Part II.D.1 85 a. LEOSSA Schedule of Funding Progress Exhibit II.D.1.a 86 b. LEOSSA Schedule of Employer Contributions Exhibit II.D.1.b 86 c. Notes to LEOSSA Financial Schedules Exhibit II.D.1.c Other Post-Employment Benefits-Retirees Healthcare Coverage Financial Schedules Part II.D.2 90 a. OPEB-RHC Schedule of Funding Progress Exhibit II.D.2.a 91 b. OPEB-RHC Schedule of Employer Contributions Exhibit II.D.2.b 91 c. Notes to OPEB-RHC Financial Schedules Exhibit II.D.2.c Major Governmental Funds Financial Statements Part II.D.3 94 a. General Fund: Statements of Revenues, Expenditures, and Changes in Fund Exhibit II.D.3.a 95 Balances -- Budget to Actual (added details) b. Capital Projects Fund: Statements of Revenues, Expenditures, and Changes Exhibit II.D.3.b 104 in Fund Balances -- Budget to Actual 4. Non-major Governmental Funds Financial Statements Part II.D a. Non-major Governmental Funds: Combining Balance Sheet Exhibit II.D.4.a 108 b. Non-major Governmental Funds: Combining Statement of Revenues, Exhibit II.D.4.b 110 Expenditures, and Changes in Fund Balances c. Emergency Telephone Fund: Statement of Revenues, Expenditures, and Exhibit II.D.4.c 112 Changes in Fund Balance - Budget to Actual d. County Fire Service District Fund: Statement of Revenues, Expenditures, and Exhibit II.D.4.d 113 Changes in Fund Balance - Budget to Actual e. Community Development Fund: Statement of Revenues, Expenditures, and Exhibit II.D.4.e 114 Changes in Fund Balance - Budget to Actual (since projects' inception) f. Debt Service Fund: Statement of Revenues, Expenditures, and Changes in Exhibit II.D.4.f 115 Fund Balance - Budget to Actual 5. Major Enterprise Fund Financial Schedule Part II.D a. Solid Waste Fund: Schedule of Revenues and Expenditures -- Budget to Exhibit II.D.5.a 117 Actual; non-gaap modified accrual basis 6. Fiduciary Funds Financial Statement Part II.D a. Combining Statement of Changes in Assets and Liabilities -- Fiduciary Funds Exhibit II.D.6.a 120 (continued on next page)

5 Page 3 of 4 II: FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION (continued from prior page) E. Other Supplementary Information Subsection II.E Schedule of Cash and Investment Balances Exhibit II.E Schedule of Interfund Transfers Exhibit II.E Analysis of Current Tax Levy - County Government (10) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - County Government (10) and Exhibit II.E Public Schools (20) 5. Schedule of Ad Valorem Taxes Receivable - County Fire Service District (28) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Fallston Fire District (74) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Lattimore Fire District (75) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Rippy Fire District (76) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - County Sanitary District (82) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - City of Shelby (77) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Boiling Springs (78) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Grover (79) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - City of Kings Mountain (80) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Lattimore (81) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Kingstown (83) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Fallston (84) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Earl (85) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Polkville (86) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Lawndale (87) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Casar (88) Exhibit II.E Schedule of Ad Valorem Taxes Receivable - Town of Waco (89) Exhibit II.E III: STATISTICAL AND TREND INFORMATION Section III 137 A. Information for Publicly Sold Securities Subsection III.A Tax Information and Debt Information (including bonds issued) Exhibit III.A Budget Ordinance as of July 1, Annually Budgeted Funds Exhibit III.A Budget Amended as of September 30, Annually Budgeted Funds Exhibit III.A Budget Reconciliation as of September 30, Annually Budgeted Funds Exhibit III.A B. Revenue Capacity Schedules: Subsection III.B Property Tax Levies by Taxing District (twelve most recent fiscal years) Exhibit III.B Property Tax Levies and Collections (twelve most recent fiscal years) Exhibit III.B Direct and Overlapping Property Tax Rates (twelve most recent fiscal years) Exhibit III.B Principal Taxpayers - Current versus 3, 6, and 9 years ago Exhibit III.B Assessed Value of Taxable Property and Property Tax Rates (twelve most Exhibit III.B recent fiscal years) (continued on next page)

6 Page 4 of 4 III: STATISTICAL AND TREND INFORMATION (continued from prior page) C. Debt Capacity Schedules: Subsection III.C Computation of Legal Debt Margin (twelve most recent fiscal years) Exhibit III.C Computation of Direct and Underlying Debt for non-revenue Bonded Debt Exhibit III.C Annual Requirements and Debt Limitations for non-revenue Bonded Debt Exhibit III.C Ratio of Annual Debt Service Expenditures for non-revenue Bonded Debt Exhibit III.C to Total General Governmental Expenditures (twelve most recent fiscal years) 5. Breakdown of Outstanding Debt (twelve most recent fiscal years) Exhibit III.C Ratios of Outstanding Debt (twelve most recent fiscal years) Exhibit III.C D. Demographic, Economic, and Operating Schedules: Subsection III.D Miscellaneous Information Exhibit III.D Economic Trends Schedule (twelve most recent fiscal years) Exhibit III.D County Employment by Function (twelve most recent fiscal years) Exhibit III.D Principal Industry Sectors - Current versus 3, 6, and 9 years ago Exhibit III.D E. Financial Trends Schedules: Subsection III.E Government-Wide Changes in Net Assets (nine most recent fiscal years) Exhibit III.E All Funds Combined: Changes in Fund Balances (twelve most recent fiscal years) Exhibit III.E Government-Wide Net Assets by Component (nine most recent fiscal years) Exhibit III.E All Funds Combined: Fund Balances by Category (twelve most recent fiscal years) Exhibit III.E Retirement Contributions Schedule Exhibit III.E IV: SECTION ON COMPLIANCE WITH FEDERAL AND STATE GRANTS Section IV 175 (REPORTS REQUIRED BY GOVERNMENT AUDITING STANDARDS) A. Reports from the Independent Auditor Subsection IV.A Report from the Independent Auditor on Internal Control Over Financial Exhibit IV.A Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 2. Report from the Independent Auditor on Compliance with Requirements Exhibit IV.A Applicable to Each Major Federal Program and On Internal Control Over Compliance in Accordance with OMB Circular A-133 and with the State Single Audit Implementation Act 3. Report from the Independent Auditor on Compliance with Requirements Exhibit IV.A Applicable to Each Major State Program and On Internal Control Over Compliance in Accordance with Applicable Sections of OMB Circular A-133 and with the State Single Audit Implementation Act B. Schedule of Findings, Questioned Costs, and Responses Subsection IV.B. 184 C. Summary Schedule of Prior Year Findings, Questioned Costs, and Responses Subsection IV.C. 186 D. Schedule of Expenditures of Federal and State Awards Subsection IV.D Notes to Schedule of Expenditures of Federal and State Awards Exhibit IV.D.1 193