Cabarrus County Comprehensive Annual Financial Report

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2012 Note 1. Summary of Significant Accounting Policies The accompanying financial statements and the following accounting policies of Cabarrus County, North Carolina (the “County”) and its component units conform to accounting principles generally accepted in the United States of America as applicable to local governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies: A. Reporting Entity The County, which is governed by a five-member board of commissioners, is one of the one hundred counties established in North Carolina under North Carolina General Statute 153A-10. As required by accounting principles generally accepted in the United States of America, these financial statements present the County and its component units, legally separate entities, for which the County is financially accountable. The Cabarrus Development Corporation, blended component unit, and the Cabarrus County Industrial Facility and Pollution Control Financing Authority, a discretely presented component unit, described below, have no financial transactions or account balances; therefore, they do not appear in the financial statements. The Cabarrus County Development Corporation was organized and shall be operated exclusively for the purpose of providing debt financing for the County, to fulfill various statutory obligations involving but not limited to, purchase and sale, construction and/or lease of real estate improvements, facilities, and equipment. The Cabarrus County Industrial Facility and Pollution Control Financing Authority exist to issue and service revenue bond debt of private businesses for economic development purposes. The Public Health Authority of Cabarrus County, a discretely presented component unit described below, is reported in a separate column in the County’s financial statements in order to emphasize that it is legally separate from the County. Reporting Separate Component Unit Method Criteria for Inclusion Financial Statements Cabarrus Development Blended The Development Corporation is governed None Issued Corporation by a three-member board of directors who are established through the bylaws of the Articles of Incorporation. The Corporation exists to provide debt financing to the County. Cabarrus County Discrete The Authority is governed by a seven-None Issued Industrial Facility and member board of commissioners that is Pollution Control appointed by the county commissioners. Financing Authority The County can remove any commissioner of the Authority with or without cause. Public Health Authority of Discrete Cabarrus Health Alliance (the “Alliance” was Cabarrus Health Alliance Cabarrus County d.b.a. incorporated under the hospital authority act 300 Mooresville Road Cabarrus Health Alliance to provide public health care to the citizens Kannapolis, NC 28081 th and residents of the County. On April 20, 1998, the Cabarrus County Board by resolution authorized the transfer of powers, duties, and responsibilities to the Alliance for communicable disease control, environmental protection, and maintenance of vital records. The members of the Board of Alliance are appointed by the Chairperson of the Board of Commissioners for Cabarrus County. The County provides funding to the Alliance. Funding is flat based on adopted funding for FY 2009. The County funded the Alliance with $4,242,711 or 26% of its total revenues for the fiscal year ended June 30, 2012 A financial benefit or burden relationship exists between the Alliance and the County. 37