Comprehensive Annual Financial Report
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MECKLENBURG COUNTY, NORTH CAROLINA Comprehensive Annual Financial Report For the year ended June 30, 2010 Vision Statement To be the best local government service provider. Mission Statement To serve Mecklenburg County residents by helping improve their lives and community. www.charmeck.org/departments (select “finance - county”) Comprehensive Annual Financial Report For the year ended June 30, 2010 Mecklenburg County, North Carolina Prepared by the Finance Department Dena R. 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Mecklenburg County, NC Letter of Transmittal Mecklenburg County Dena R. Diorio Director of Finance October 19, 2010 The Board of County Commissioners and County Manager Mecklenburg County Charlotte, North Carolina The Comprehensive Annual Financial Report (Report) of Mecklenburg County for the fiscal year ended June 30, 2010 is submitted herewith. The report meets the State requirement to issue audited financial statements within four months of the close of the fiscal year. County management assumes full responsibility for the completeness and reliability of the information contained in this Report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The financial statements have been prepared in compliance with applicable General Statutes of North Carolina and accounting principles generally accepted in the United States of America for governmental entities. Cherry, Bekaert and Holland L.L.P., an independent public accounting firm, has issued an unqualified (“clean”) opinion on the financial statements. Their opinion is located at the beginning of the Financial Section of the Report. The audit was also designed to meet the requirements of the Federal Single Audit Act Amendment of 1996, as well as the State Single Audit Act, N.C.G.S.159-34. The reports required by these Acts are issued separately. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this Letter of Transmittal and the two should be read together. Profile of the Government Mecklenburg County was created from a portion of Anson County through a petition that was granted on December 11, 1762 by the Provincial Assembly, effective February 1, 1763. During the colonial period, a governor appointed by the King of England administered the County. Settlers chose the name Mecklenburg for their county in the hopes of gaining favor with King George III. His wife, Queen Charlotte, was born in the German province of Mecklenburg. When Mecklenburg was established, it was considerably larger than it is today. Portions of what are now Cabarrus, Union, Lincoln, Rutherford, Cleveland and Gaston Counties in North Carolina and part of South Carolina were all once in Mecklenburg County. The City of Charlotte was incorporated on November 7, 1768 and was chosen the county seat in 1774. The current boundaries of the County were established in 1842. County officials continued to be appointed by the governor until 1868. The Constitution of North Carolina was rewritten in that year to allow citizens, for the first time, to elect officials to govern them at the county level. This form of government is still in practice today with the governing body known as the Board of County Commissioners (the Board). In 1963, the Board adopted the County Manager form of government and appointed a County Manager to perform the administrative duties of the County. The Board has six district and three at-large members. Elections for Board members are held in November of even-numbered years, and candidates run for office as members of a political party. Any registered voter is eligible to run for Commissioner. Following the election, Commissioners take office at the firstmeeting in December. It is also at the first meeting in December each year that the Board elects a chairman and vice-chairman from among its members. L Letter of Transmittal The Board appoints several officials to help carry out the County’s business: a County Manager, who serves as chief executive officer; a County Attorney, who serves as legal advisor to the Board; a Director of Finance, who provides required financial information and guidance for planning and conducting fiscal management in operating the County; and a Clerk to the Board, who is responsible for keeping official Board records and preparing official minutes of all Board meetings. The County provides the following services: land use, including listing and appraising all real and personal property and regulating the development of land and construction of residential, commercial and industrial facilities; recreation and cultural activities; human services, including social services, public health, mental health and environmental health; detention and court support; and general administration. The County also provides support for education, public libraries, and emergency medical service. The County represents a primary government as defined by Governmental Accounting Standards Board Statement 14, as amended by Statement