FINANCIAL REPORT FOR THE FISCAL YEAR EN DE D J U N E 30, 2015 MECKLENBURG COUNTY • NORTH CAROLINA FINANCIAL REPORT FOR THE FISCAL YEAR EN DE D J U N E 30, 2015 MECKLENBURG COUNTY • NORTH CAROLINA 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 Report of Independent Auditor .............................................................................................1 Management’s Discussion and Analysis ..................................................................................4 BASIC FiNANCIAL STATEMENTS Government-wide Financial Statements A - 1 Statement of Net Position (Deficit) ......................................................................................14 A - 2 Statement of Activities .........................................................................................................15 Fund Financial Statements Governmental Funds A - 3 Balance Sheet .......................................................................................................................16 A - 4 Statement of Revenues, Expenditures and Changes in Fund Balances ..................................17 A - 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................................................................................18 A - 6 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ...................................................................19 Proprietary Funds A - 7 Statement of Net Position ....................................................................................................22 A - 8 Statement of Revenues, Expenses and Changes in Net Position ...........................................23 A - 9 Statement of Cash Flows ......................................................................................................24 Fiduciary Funds A -10 Statement of Fiduciary Net Position ....................................................................................25 A -11 Statement of Changes in Fiduciary Net Position ..................................................................26 Notes to the Basic Financial Statements ...............................................................................27 REQUIRED SUPPLEMENTARY INFORMAtiON B - 1 Separation Allowance for Law Enforcement Officers – Analysis of Funding Progress ................................................................................................77 B - 2 Separation Allowance for Law Enforcement Officers – Schedule of Employer Contributions ...................................................................................78 B - 3 Post Employment Benefit Healthcare Plan – Analysis of Funding Progress ..........................79 B - 4 Post Employment Benefit Healthcare Plan – Schedule of Employer Contributions ..............80 B - 5 Local Governmental Employees’ Retirement System – Schedule of Proportionate Share of the Net Pension Asset (Liability) ...................................81 B - 6 Local Governmental Employees’ Retirement System – Schedule of County Contributions ......................................................................................82 B - 7 Registers of Deeds’ Supplemental Pension Fund – Schedule of Proportionate Share of the Net Pension Asset (Liability) ...................................83 B - 8 Registers of Deeds’ Supplemental Pension Fund - Schedule of County Contributions .........84 TABLE OF CONTENTS COMBINING AND INDIViduAL FuND STATEMENTS AND SCHEDULES Nonmajor Governmental Funds Nonmajor Governmental Funds Descriptions......................................................................85 C - 1 Combining Balance Sheet ....................................................................................................86 C - 2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................................................................................87 Special Revenue Funds C - 3 Combining Balance Sheet ....................................................................................................88 C - 4 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................89 Capital Projects Funds C - 5 Combining Balance Sheet ....................................................................................................90 C - 6 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................................................................................91 Other Financial Schedules Agency Fiduciary Funds D - 1 Combining Statement of Assets and Liabilities ....................................................................92 D - 2 Schedule of Changes in Assets and Liabilities .......................................................................93 Grants Project Fund E - 1 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ....................................................................94 Other Budgetary Schedules Special Revenue Funds F - 1 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Storm Water Management ..................................................................97 F - 2 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Law Enforcement Service District .......................................................98 F - 3 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Transit One-half Cent Sales Tax ..........................................................99 F - 4 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Scrap Tire Disposal ...........................................................................100 F - 5 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Discarded White Goods ....................................................................101 F - 6 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Register of Deeds ..............................................................................102 F - 7 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Fire Service Districts .........................................................................103 Debt Service Fund G – 1 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Debt Service Fund ............................................................................104 Proprietary Funds H - 1 Schedule of Revenues and Expenses – Budget (Modified Accrual Basis) and Actual – Solid Waste Operating Fund .........................................................................105 H - 2 Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) - Landfill Closure and Postclosure Reserve Fund ...............................106 H – 3 Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) – Special Obligation Bond Fund ....................................107 H – 4 Schedule of Revenues and Expenses – Budget (Modified Accrual Basis) and Actual – MeckLink Fund ............................................................................................108 TABLE OF CONTENTS STATISTICAL Statistical Section Summary ...............................................................................................109 Financial Trend Information Table 1 Net Position by Component ..............................................................................................110 Table 2 Change in Net Position......................................................................................................111 Table 3 Fund Balances, Governmental Funds .................................................................................112 Table 4 Changes in Fund Balances, Governmental Funds ..............................................................113 Table 5 Governmental Tax Revenues by Source ..............................................................................114 Revenue Capacity Information Table 6 Analysis of Current Tax Levy .............................................................................................115 Table 7 Schedule of Ad Valorem Taxes Receivable ..........................................................................116 Table 8 Assessed and Estimated Actual Value of Taxable Property ..................................................117 Table 9 Property Tax Rates Per $100 Assessed Valuation – Direct and Overlapping Governments .................................................................................................118 Table 10 Principal Taxpayers ............................................................................................................119