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F:\CAFR2006\Table of Contents\Cafrcoversheet.Wpd COUNTY OF CHARLESTON, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2006 with REPORT OF INDEPENDENT AUDITORS PREPARED BY: CONTROLLER’S OFFICE HAROLD L. BISBEE, CONTROLLER CARLA R. CREECH, ASSISTANT CONTROLLER DOLORES S. DONG, ACCOUNTANT SCOTT A. BARTLEY, ACCOUNTANT TABLE OF CONTENTS INTRODUCTORY SECTION Page(s) Title Page .................................................................................................................................. i Table of Contents ...................................................................................................................... ii-iii Letter of Transmittal ................................................................................................................ 3-22 GFOA Certificate of Achievement ........................................................................................... 23 Organizational Chart ................................................................................................................ 24 Elected Officials ......................................................................................................................... 25 FINANCIAL SECTION Report of Independent Auditors ............................................................................................ 29-30 Management's Discussion and Analysis ................................................................................. 31-41 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ............................................................................ 43 Statement of Activities ................................................................................. 44 Fund Financial Statements: Balance Sheet-Governmental Funds ......................................................... 45 Reconciliation of Total Governmental Fund Balances to Net Assets of Governmental Activities ....................................................................... 46 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds .................................................................................. 47 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ………………………………………………………………………….... 48 Statements of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – General Fund………………………………………………….. 49-51 Statement of Net Assets - Proprietary Funds ………………………………... 52-53 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds …………………………………………………………………….. 55 Statement of Cash Flows - Proprietary Funds ...................……………….. 56-57 Statement of Fiduciary Net Assets - Agency ………………… 59 Combining Statement of Net Assets – Discretely Presented Component Units …………………………………………………………………….. 60-61 Combining Statement of Activities – Discretely Presented Component Units …………………………………………………………………….. 62-63 Notes to the Financial Statements ………………………………………………………...... 64-116 Combining Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds ……………………….. 124-129 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds …….....……………………………………. 130-135 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual .................................................................................................................. Accommodations Special Revenue Fund ................................................. 137 Child Support Enforcement Special Revenue Fund ................................. 138 Economic Development Special Revenue Fund .................................….. 139 Education Special Revenue Fund ............................. 140 Emergency Medical Services Special Revenue Fund ..................... 141 Fire Districts Special Revenue Fund .......................………………………… 142 ii COUNTY OF CHARLESTON, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2006 Page(s) Geographic Information Systems Special Revenue Fund ..................... 143 Hazardous Materials Enforcement Special Revenue Fund ..................... 144 Sheriff Special Revenue Fund ................................................................... 145 Solicitor Special Revenue Fund ................................................................. 146 Victim Notification Special Revenue Fund ............................................ 147 Victim Notification: Statement of Fines, Assessments, and Surcharges Collected .................................................................................................................... 148 Combining Statements of Nonmajor Enterprise Funds: Combining Statement of Net Assets - Nonmajor Enterprise Funds ..... 150-151 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor Enterprise Funds .............................................. 153 Combining Statement of Cash Flows - Nonmajor Enterprise Funds ...... 154-155 Combining Statements of Internal Service Funds: Combining Statement of Net Assets - Internal Service Funds ............. 157 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -Internal Service Funds ......................................................... 159 Combining Statement of Cash Flows - Internal Service Funds ............. 160-161 Combining Statement of Changes in Assets and Liabilities - Agency Funds .............................................................................................. 163-165 Capital Assets Used in the Operation of Governmental Funds: Schedule By Function and Activity ............................................................. 167 Schedule of Changes by Function and Activity ....................................... 168 STATISTICAL SECTION-UNAUDITED Net Assets by Component ................................................. 171 Changes in Net Assets ................................................. 172-173 Fund Balances of Governmental Funds ................................... 174 Changes in Fund Balances of Governmental Funds .......................... 176-177 Assessed Value and Estimated Actual Value of Taxable Property ........ 178 Property Tax Rates - Direct and Overlapping Governments ................. 179 Principal Property Taxpayers ……………………………………………………… 180 Property Tax Levies and Collections ……………………………………………. 181 Ratio of Outstanding Debt by Type ……………………………………………. 182 Ratio of General Obligation Bonded Debt to Assessed Value and General Obligation Bonded Debt Per Capita ................................................................................................... 183 Ratio of Total Tax Supported Debt to Assessed Value and Total Tax Supported Debt Per Capita ............................ 184 Legal Debt Margin Information …………………………………………………. 185 Pledged Revenue Bond Coverage ……………………………………………….. 186 Demographic and Economic Statistics ………………………………………….. 187 Principle Employers …………………………………………………………………… 188 Full Time Equivalent County Government Employees by Function ……………………………………………………………. 189-191 Operating Indicators by Function/Program .............................................. 192 Financial Assurance Coverage – Municipal Solid Waste ........................ 193 iii This page intentionally left blank INTRODUCTORY SECTION 1 This page intentionally left blank Lonnie Hamilton, III Public Services Building 4045 Bridge View Drive North Charleston, SC 29405-7464 McRoy Canterbury, Jr. Phone: (843) 958-4000 Administrator COUNTY ADMINISTRATOR Fax: (843) 958-4004 November 13, 2006 To the members of County Council and the citizens of Charleston County, South Carolina: State law requires that all general-purpose local governments publish at the close of each fiscal year a complete set of financial statements, presented in conformity with generally accepted accounting principles (GAAP), and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to this requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) for Charleston County, South Carolina, for the fiscal year ending June 30, 2006. This report consists of management’s representations concerning the finances of Charleston County. Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government agency’s assets from loss, theft or misuse, and to compile sufficient reliable information for the preparation of the County’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, Charleston County’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and beliefs, this financial report is complete and reliable in all material aspects. Charleston County's financial statements have been audited by Dixon Hughes PLLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements
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