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Government -Wide Financial Analysis
<br />While total net assets are often considered a useful indicator of a government's financial position, it does
<br />not adequately reflect the County's position. As noted above the liabilities of Cabarrus County exceeded
<br />the assets by $61,446,567 at June 30, 2012. In accordance with the North Carolina General Statutes, the
<br />County is the issuer and payer of debt for capital purposes for the Cabarrus County Schools, Kannapolis
<br />City Schools and the Rowan - Cabarrus Community College. This debt, which totals $285,580,925 at June
<br />30, 2012 and totaled $306,883,150 at June 30, 2011, is recorded in long -term liabilities with no offsetting
<br />capital assets recorded, as the assets are owned by the agencies. The agencies use the debt proceeds
<br />to acquire or construct capital assets. The effect of this accounting distorts net assets of the County,
<br />creating a large deficit in unrestricted net assets. Net Assets of $127,581,945 at June 30, 2012 and
<br />$115,035,476 at June 30, 2011 are invested in capital assets, net of any related outstanding debt of those
<br />assets. Capital assets include land, buildings, vehicles, equipment and other machinery used in providing
<br />services to residents. Also, net assets of $32,502,357 at June 30, 2012 and $46,892,224 at June 30,
<br />2011 are reserved by law for specific purposes. The net decrease in the deficit unrestricted net assets,
<br />resulted from the refunding of debt and the early pay off of $11,122,572 in installment financing. Net
<br />assets do not present the County's position regarding spending, this amount is presented in the
<br />governmental funds statements.
<br />Cabarrus County's Net Assets
<br />Figure 2
<br />Governmental Business -type
<br />Activities Activities
<br />2012 2011 2012 2011
<br />Total
<br />2012 2011
<br />Current and other assets $135,599,333 $ 151,949,043 $3,649,292 $3,494,731 $139,248,625 $155,443,774
<br />Capital assets
<br />217,058,330
<br />218,925,235
<br />3,601,643
<br />3,978,432
<br />220,659,973
<br />222,903,667
<br />Total assets
<br />352,657,663
<br />370,874,278
<br />7,250,935
<br />7,473,163
<br />359,908,598
<br />378,347,441
<br />Long -term liabilities outstanding
<br />372,652,226
<br />404,936,029
<br />3,314,716
<br />3,472,758
<br />375,966,942
<br />408,408,787
<br />Other liabilities
<br />45,098,682
<br />45,693,750
<br />289,541
<br />204,754
<br />45,388,223
<br />45,898,504
<br />Total liabilities
<br />417,750,908
<br />450,629,779
<br />3,604,257
<br />3,677,512
<br />421,355,165
<br />454,307,291
<br />Net assets
<br />Invested in capital assets, net
<br />of related debt
<br />123,980,302
<br />111,057,044
<br />3,601,643
<br />3,978,432
<br />127,581,945
<br />115,035,476
<br />Restricted
<br />32,502,357
<br />46,892,224
<br />-
<br />-
<br />32,502,357
<br />46,892,224
<br />Unrestricted
<br />(221,575,904)
<br />(237,704,769)
<br />45,035
<br />(272,454)
<br />(221,530,869)
<br />(237,977,223)
<br />Total net assets
<br />$(65,093,245)
<br />$ (79,755,501)
<br />$3,646,678
<br />$3,705,978
<br />$(61,446,567)
<br />$(76,049,523)
<br />Several particular aspects of the County's financial operations positively influenced the total unrestricted
<br />governmental net assets:
<br />• Continued low cost of debt due to the County's high bond rating and the prevailing low interest
<br />rate environment.
<br />• General Fund County revenues at June 30, 2012 were $9,353,305 over budget. This is primarily
<br />due to higher than expected sales tax collections and ambulance fee collections.
<br />• The General Fund received $3,267,346 in other financing sources from several capital project
<br />funds for projects that were completed during the year and had remaining unspent funds.
<br />18 Attachment number 1
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