Laserfiche WebLink
Cabarrus County, North Carolina <br /> Notes to the Financial Statements <br />For the Year Ended June 30, 2012 <br />B. Basis of Presentation, Basis of Accounting <br />Basis of Presentation, Measurement Focus – Basis of Accounting <br />Government-wide Statements: The Statement of Net Assets and the Statement of Activities display information <br />about the primary government (the County) and its component units. These statements include the financial <br />activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the <br />double counting of internal activities. These statements distinguish between the governmental and business- <br />type activities of the Country. Governmental activities generally are financed through taxes, intergovernmental <br />revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by <br />fees charged to external parties. <br />The Statement of Activities presents a comparison between direct expenses and program revenues for the <br />different activities of the County and for each function of the County’s governmental activities. Direct expenses <br />are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a <br />particular function. Indirect expense allocations that have been made in the funds have been reversed for the <br />Statement of Activities. Program revenues include (a) fees and charges paid by the recipients of goods or <br />services offered by the programs and (b) grants and contributions that are restricted to meeting the operational <br />or capital requirements of a particular program. Revenues that are not classified as program revenues, <br />including all taxes, are presented as general revenues. <br />Fund Financial Statements: The fund financial statements provide information about the County’s funds, <br />including its fiduciary funds and blended component units. Separate statements for each fund category – <br />governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major <br />governmental and enterprise funds, each displayed in a separate column. All remaining governmental and <br />enterprise funds are aggregated and reported as non-major funds. <br /> <br />Proprietary fund operating revenues, such as charges for services, result from exchange transactions <br />associated with the principal activity of the fund. Exchange transactions are those in which each party receives <br />and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, <br />result from non-exchange transactions or ancillary activities. <br />The County reports the following major governmental funds: <br />TheGeneral Fund is the general operating fund of the County. This fund accounts for all financial resources of <br />the general government except those that are required to be accounted for in another fund. <br />TheCertificates of Participation 2009 Capital Projects Fund. This fund accounts for planning, design, <br />construction and/or renovation of schools with Certificates of Participation, Lottery proceeds and contributions <br />from the Special Revenue and Capital Reserve funds. <br />TheQualified School Construction Bond Fund. This fund accounts for planning, design, renovations and <br />repairs of schools with Certificates of Participation. An interest subsidy payment will be received from the <br />federal government for a majority of the interest paid. <br />The County reports the following major proprietary fund: <br />TheLandfill Fundis used to account for those operations that are financed and operated in a manner similar to <br />private business or where the board has decided that the determination of revenues earned, costs incurred <br />and/or net income is necessary for management accountability. <br />Additionally, the County reports the following fund types: <br />TheInternal Service Fund accounts for operations that provide services to other departments or agencies of <br />the government, or to other governments, on a cost-reimbursement basis. Cabarrus County has two internal <br />service funds, the Workers Compensation Fund and Self-Insured Hospitalization Fund. The Workers <br />Compensation Fund was discontinued and the fund was closed as of June 30, 2012. <br />38 <br />