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Cabarrus County, North Carolina
<br />Exhibit 4A
<br />Reconciliation of the Statement of Revenues, Expenditures
<br />Page 2 of 2
<br />And Changes in Fund Balance to the Statement of Activities of Governmental Funds
<br />For the Year Ended June 30, 2012
<br />Net change in fund balances-total governmental funds(19,063,604)$
<br />Amounts reported for governmental activities in the statement of
<br /> activities are different because:
<br /> Governmental funds report capital outlays as expenditures. However, in the
<br /> statement of activities, the cost of those assets is capitalized and depreciated
<br /> over their estimated useful lives.
<br /> Expenditures for capital assets4,467,028
<br /> Less current year depreciation(6,302,501) (1,835,473)
<br /> Revenues in the statement of activities that do not provide current
<br /> financial resources are not reported as revenues in the governmental funds.
<br /> Ambulance (92,519)
<br /> Property Tax 718,314810,833
<br /> The effect of various miscellaneous transactions involving capital assets.
<br /> Donation of capital assets 25,615
<br /> Disposal of capital assets, net book value(57,047) (31,432)
<br /> Debt proceeds provide current financial resources to governmental funds,
<br /> but issuing debt increases long-term liabilities in the statement of net
<br /> assets. Repayment of debt principal is an expenditure in the governmental
<br /> funds, but the repayment reduces long-term liabilities in the statement of
<br /> net assets. This amount is the net effect of these differences in the treatment of
<br /> Debt proceeds (38,333,562)
<br /> Debt costs 413,915
<br /> Amortization of current year debt premium1,188,028
<br /> Principal payments 37,142,398
<br /> Disbursements for refunding37,431,142 37,841,921
<br /> Some expenses reported in the statement of activities do not require the use of
<br /> current financial resources and therefore are not reported as expenditures in
<br /> governmental funds.
<br /> Compensated Absences (164,498)
<br /> LEO Pension Obligation 119,942
<br /> OPEB Obligation (1,693,390)
<br /> Accrued Interest 515,112
<br /> Amortization of current year debt costs(927,648) (2,150,482)
<br /> The purpose of this adjustment is to recognize the net change in "unavailable"
<br /> revenues. Under the modified accrual basis of accounting, revenues are
<br /> not recognized unless they are deemed "available" to finance the expenditures
<br /> of the current period. Accrual-basis recognition is not limited by availability, so
<br /> certain revenues need to be reduced by the amounts that were unavailable
<br /> at the beginning of the year and increased by the amounts that were unavailable at
<br /> the end of the year. This adjustment records a net decrease in revenues -
<br /> unavailable revenues at the end of the year exceed beginning unavailable revenues
<br /> by this amount.
<br /> Internal service funds are used by management to charge the cost of workers' compensation
<br /> and self-insured hospitalization systems to individual departments.(816,988) (816,988)
<br /> Changes in net assets of governmental activities$ 14,662,256
<br />The notes to the financial statements are an integral part of this statement.
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