FINANCIAL REPORT Comprehensive Annual Financial Report for the Year Ended June 30, 2012
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MECKLENBURG COUNTY • NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT Comprehensive Annual Financial Report For the year ended June 30, 2012. Mecklenburg County, North Carolina Prepared by the Financial Services Department Dena R. Diorio Director of Financial Services Table of Contents INTRODUCTION Letter of Transmittal ...................................................i Facts and Information ............................................. vii Five Year Trends .....................................................xx Board of County Commissioners ........................ xxiv Organizational Chart .............................................xxv GFOA Certificate of Achievement ....................... xxvi Financial Services Department ........................... xxvii FINANCIAL Independent Auditors’ Report............................................................................... 1 Management’s Discussion and Analysis ............................................................... 3 BASIC FINANCIAL StatEMENTS Government-wide Financial Statements A - 1 Statement of Net Assets (Deficit) ........................................................................ 13 A - 2 Statement of Activities ........................................................................................ 14 Fund Financial Statements Governmental Funds A - 3 Balance Sheet ..................................................................................................... 15 A - 4 Statement of Revenues, Expenditures and Changes in Fund Balances ............ 16 A - 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................... 17 A - 6 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ................................................. 18 Proprietary Fund A - 7 Statement of Net Assets ..................................................................................... 21 A - 8 Statement of Revenues, Expenses and Changes in Net Assets ........................ 22 A - 9 Statement of Cash Flows .................................................................................... 23 Fiduciary Funds A -10 Statement of Fiduciary Net Assets ..................................................................... 24 A -11 Statement of Changes in Fiduciary Net Assets .................................................. 25 Notes to the Basic Financial Statements ............................................................ 27 REQUIRED SUPPLEMEntarY INFORMation B - 1 Separation Allowance for Law Enforcement Officers – Analysis of Funding Progress ................................................................................................ 65 B - 2 Separation Allowance for Law Enforcement Officers – Schedule of Employer Contributions ...................................................................................... 66 B - 3 Post Employment Benefit Healthcare Plan – Analysis of Funding Progress ...... 67 B - 4 Post Employment Health Benefits – Schedule of Employer Contributions ........ 68 Table of Contents COMBINING AND INDIVIDUAL FUND StatEMENTS AND SCHEDULES Nonmajor Governmental Funds ............................................................................ 69 C - 1 Combining Balance Sheet .................................................................................. 70 C - 2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................ 71 Special Revenue Funds C - 3 Combining Balance Sheet .................................................................................. 72 C - 4 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................... 73 Capital Projects Funds C - 5 Combining Balance Sheet .................................................................................. 74 C - 6 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................ 76 Debt Service Fund C - 7 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual .............................................................................................. 79 Other Financial Schedules Agency Fiduciary Funds D - 1 Combining Statement of Assets and Liabilities .................................................. 80 D - 2 Schedule of Changes in Assets and Liabilities ................................................... 81 Grants Project Fund E - 1 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ................................................. 82 Other Budgetary Schedules Special Revenue Funds F - 1 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Storm Water Management ...................... 86 F - 2 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Law Enforcement Service District ..................................... 87 F - 3 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Transit One-Half Cent Sales Tax ............. 88 F - 4 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Scrap Tire Disposal ................................. 89 F - 5 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Discarded White Goods .......................... 90 F - 6 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Register of Deeds .................................... 91 F - 7 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Emergency Telephone ............................. 92 Proprietary Fund G - 1 Schedule of Revenues and Expenses – Budget (Modified Accrual Basis) and Actual – Solid Waste Operating Fund .......................................................... 93 G - 2 Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) - Landfill Construction, Final Development and Postclosure Reserve Fund ......... 94 G - 3 Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) Special Obligation Bond Fund ............................................................................ 95 G - 4 Schedule of Revenues and Expenses – Budget (Modified Accrual Basis) - and Actual – MeckLink Fund .............................................................................. 96 Table of Contents STATISTICAL Statistical Section Summary ............................................................................... 99 Financial Trend Information Table 1 Net Assets by Component ................................................................................ 100 Table 2 Change in Net Assets ....................................................................................... 101 Table 3 Fund Balances, Governmental Funds............................................................... 102 Table 4 Changes in Fund Balances, Governmental Funds ........................................... 103 Table 5 Governmental Tax Revenues by Source ........................................................... 104 Revenue Capacity Information Table 6 Analysis of Current Tax Levy ............................................................................. 105 Table 7 Assessed and Estimated Actual Value of Taxable Property .............................. 106 Table 8 Property Tax Rates Per $100 Assessed Valuation – Direct and Overlapping Governments ................................................................................ 107 Introduction Table 9 Principal Taxpayers ........................................................................................... 108 Table 10 Property Tax Levies, Tax Collections and Credits ............................................. 109 The introduction provides background and Debt Capacity Information general information about the County. Table 11 Schedule of Bonds Payable .............................................................................. 110 Table 12 Schedule of Certificates of Installment Financings ........................................... 111 Table 13 Ratios of Outstanding Debt by Type ................................................................. 112 Table 14 Ratio of Net General Bonded Debt to Assessed Valuation and Net Bonded Debt Per Capita ............................................................................ 113 Table 15 Computation of Direct and Overlapping Governmental Activities Debt ........... 114 Table 16 Computation of Legal Debt Margin ................................................................... 115 Demographic and Economic Information Table 17 Demographic Statistics ..................................................................................... 116 Table 18 Principal Employers .......................................................................................... 117 Operating Information Table 19 Full-time Equivalent County Employees .......................................................... 118 Table 20 Operating Indicators by Function/Program ...................................................... 119 Table 21 Capital Asset Statistics by Function/Program .................................................