2011 Comprehensive Annual Financial Report (CAFR)
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2011 Comprehensive Annual Financial Report For the year ended The County of December 31, 2011 Hamilton, Ohio Issued by Dusty Rhodes Hamilton County Auditor This page intentionally left blank. 2011 Comprehensive Annual Financial Report For the fiscal year ended December 31, 2011 Issued by Dusty Rhodes Auditor Hamilton County, Ohio This page intentionally left blank. COUNTY OF HAMILTON, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2011 TABLE OF CONTENTS INTRODUCTORY SECTION PAGE LETTER OF TRANSMITTAL. 1 LIST OF ELECTED OFFICIALS. 6 ORGANIZATION CHART. 7 FINANCIAL SECTION REPORT OF INDEPENDENT ACCOUNTANTS . 9 MANAGEMENT’S DISCUSSION AND ANALYSIS. 13 BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Assets. 36 Statement of Activities. 37 Fund Financial Statements: Balance Sheet—Governmental Funds. 38 Reconciliation of Balance Sheet—Governmental Funds—to Government-Wide Statement of Net Assets. 39 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds. 40 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances— Governmental Funds—to Government-Wide Statement of Activities. 41 Statements of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual: General Fund. 42 Public Assistance—Special Revenue Fund. 43 Health and Human Services Levies—Special Revenue Fund. 44 Statement of Net Assets—Proprietary Funds. 46 Reconciliation of Statement of Net Assets—Proprietary Funds to Government-Wide Statement of Net Assets . 48 Statement of Revenues, Expenses and Changes in Fund Net Assets—Proprietary Funds. 50 Reconciliation of Statement of Revenues, Expenses and Changes in Fund Net Assets— Proprietary Funds—to Government-Wide Statement of Activities . 52 Statement of Cash Flows—Proprietary Funds. 54 Statement of Assets and Liabilities—Agency Funds. 56 Notes to the Basic Financial Statements. 58 SUPPLEMENTARY INFORMATION: Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet—Nonmajor Governmental Funds. 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances— Nonmajor Governmental Funds. 106 Schedules of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual: General Fund. 108 Public Assistance—Special Revenue Fund. 114 Health and Human Services Levies—Special Revenue Fund. 115 Motor Vehicle Gas Tax—Special Revenue Fund. 116 Health and Community Services Nongrants—Special Revenue Fund. 118 Health and Community Services Grants—Special Revenue Fund. 120 Community Development Block Grants—Special Revenue Fund. 121 Bond Retirement—Debt Service Fund. 122 General Obligation Nonvoted—Debt Service Fund. 123 Special Assessments—Debt Service Fund. 124 Combining Statement of Net Assets—Nonmajor Enterprise Funds. 126 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets— Nonmajor Enterprise Funds. 128 Combining Statement of Cash Flows—Nonmajor Enterprise Funds. 130 Combining Statement of Net Assets—Internal Service Funds. 134 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets— Internal Service Funds. 136 Combining Statement of Cash Flows—Internal Service Funds. 138 Combining Statement of Assets and Liabilities—Agency Funds. 142 Combining Statement of Changes in Assets and Liabilities—Agency Funds. 143 STATISTICAL SECTION STATISTICAL SCHEDULES: Net Assets by Component—Last Ten Fiscal Years . .. 147 Changes in Net Assets—Last Ten Fiscal Years . 148 Fund Balances of Governmental Funds—Last Ten Fiscal Years . 150 Changes in Fund Balances of Governmental Funds—Last Ten Fiscal Years . 151 Assessed Value and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years . 152 Property Tax Rates—Direct and Overlapping Governments—Last Ten Years . 154 Principal Property Taxpayers . 156 Property Tax Levies and Collections—Real, Utility and Tangible Taxes—Last Ten Years . 157 Ratios of Outstanding Debt by Type—Last Ten Fiscal Years . 158 Legal Debt Margin Information—Total Debt Limit—Last Ten Fiscal Years . 160 Legal Debt Margin Information—Unvoted Debt Limit—Last Ten Fiscal Years . 161 Pledged Revenue Coverage—Metropolitan Sewer District—Last Ten Fiscal Years . 162 Pledged Revenue Coverage—Last Ten Fiscal Years . 164 Ratios of Net General Bonded Debt Outstanding—Last Ten Fiscal Years . 166 Demographic and Economic Statistics—Last Ten Fiscal Years . 167 Principal Employers—Current Year and Nine Years Ago . 168 Full-Time Equivalent County Government Employees by Function/Program—Last Ten Fiscal Years . 169 Operating Indicators by Function/Program—Last Ten Fiscal Years . 170 Capital Asset Statistics by Function—Last Ten Fiscal Years . 172 Introductory Section The County of Hamilton, Ohio This page intentionally left blank. August 29, 2013 To the Honorable Board of County Commissioners and Citizens of Hamilton County: I am pleased to present the Comprehensive Annual Financial Report (CAFR) of the County of Hamilton for the year ended December 31, 2011. This report contains the financial and statistical data that provide a complete and full disclosure of all material financial aspects of the County. Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03 require that the County produce annual financial statements pursuant to generally accepted accounting principles (GAAP). The responsibility for the accuracy of all data presented and its completeness and fairness of presentation rests with the County Auditor’s Office and, specifically, the Department of Finance. To the best of management’s knowledge, this report contains the financial statements and other financial and statistical data that provide a complete and full disclosure of all material financial aspects of the County. All disclosures necessary to enable the reader to gain an understanding of the County of Hamilton’s activities have been included. This report represents the financial activity of the County in conformity with generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB) and other recognized authoritative sources, and is consistent with the reporting model as promulgated by GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. The County of Hamilton is required to undergo an annual single audit in conformity with provisions of the Single Audit Act of 1984, the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget’s Circular A-133, Audits of State and Local Governments. Information related to this single audit, including a schedule of federal financial assistance, the independent accountants’ report on internal control and compliance with applicable laws and regulations, and a schedule of findings and questioned costs are included in a separately issued audit report. The basic financial statements of the County as of and for the year ended December 31, 2011, included in this CAFR have been audited by the Ohio Auditor of State. The independent accountants’ report is located at the front of the financial section of this report. GAAP requires that management provide a Management’s Discussion and Analysis (MD&A), a narrative introduction, overview and analysis to accompany the basic financial statements. The MD&A complements 1 this letter and should be read in conjunction with it. The MD&A appears immediately after the independent accountants’ report. Reporting Entity County of Hamilton was named for the former Secretary of the Treasury Alexander Hamilton, and was created by proclamation of Arthur St. Clair, Governor of the Northwest Territory, on January 2, 1790. The County was the second county formed in the State of Ohio, with Cincinnati as the County seat. The County is situated in the extreme southwestern corner of the State and covers an area of 407.4 square miles. The County encompasses 49 cities, villages and townships, of which Cincinnati is the largest. The County is the third largest in the State of Ohio in terms of population (802,374 per the 2010 U.S. Census). Located on the Ohio River, Hamilton County forms the core of the Greater Cincinnati Metropolitan Area, which also includes the counties of Brown, Butler, Clermont and Warren in Ohio; Dearborn, Franklin and Ohio Counties in Indiana; and Boone, Bracken, Campbell, Gallatin, Grant, Kenton and Pendleton Counties across the river in Kentucky. The metro area has a population of 2,130,151 which makes it the 27th largest metropolitan area in the country per the 2010 U.S. Census. The County has operated under the statutory form of government since its founding. As an agent of the State, County government serves the entire County in a variety of ways. The County’s legislative.