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 the possession of an outside party. The County’s formal policy indicates that the County shall utilize a third party custodial agent for book entry transactions, all of which shall be a trust department authorized to do trust work in North Carolina who has an account with the Federal Reserve. Certificated securities shall be in the custody of the designated investment officer. Concentration of Credit Risk. With the exception of U.S. Treasury securities and agencies and authorized pools, Cabarrus County’s investment policy does not allow for an investment in any one issuer in excess of 35% of the County’s total investments. These investments are 10% of the County’s total investments. At June 30, 2012, the Cabarrus Health Alliance investments consisted of $3,695,253 in the North Carolina Capital Management Trust’s Cash Portfolio, which carried a credit rating of AAAm by Standard and Poor’s. The Alliance has no policy on credit risk, custodial credit risk or interest rate risk. Less Than 1 Investment Type Fair Value Year 2-3 Years 4-7 Years NC Capital Management Trust - Cash Portfolio $ 3,695,253 $ - $ - $ - $ 3,695,253 $ - $ - $ - C. Property Tax-Use-Value Assessment on Certain Lands In accordance with North Carolina general statutes, agriculture, horticulture, and forestland may be taxed by the County at present-use value as opposed to market value. When the property loses its eligibility for use-value taxation, the property tax is recomputed at market value for the current year and the three preceding fiscal years along with accrued interest from the original due date. This tax is immediately due and payable. The amounts shown in the table are property taxes that could become due if present use-value eligibility is lost. These amounts have not been recorded in the financial statements. D. Receivables 1. Notes Receivable On May 22, 2007 Midland Volunteer Fire and Rescue agreed to pay $900,000 over a 10 year period at zero interest for the construction of a new fire station. The first payment of $3,000 was due on July 1, 2007 and payable each month through June 1, 2012. Beginning July 1, 2012 payments of $6,000 will be payable each month through June 1, 2017. A final balloon payment of $360,000 is due on July 1, 2017 for total payments of $900,000. The unpaid balance of the note at June 30, 2012 was $720,000. The note receivable is being reported in the Capital Reserve Capital Projects Fund. 51