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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 />1,188,028 <br />For the Year Ended June 30, 2012 <br />37,142,398 <br />Net change in fund balances -total governmental funds <br />$ (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 />(164,498) <br />over their estimated useful lives. <br />119,942 <br />Expenditures for capital assets 4,467,028 <br />(1,693,390) <br />Less current year depreciation (6,302,501) <br />(1,835,473) <br />Revenues in the statement of activities that do not provide current <br />(927,648) (2,150,482) <br />financial resources are not reported as revenues in the governmental funds. <br />Ambulance (92,519) <br />Property Tax 810,833 <br />718,314 <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 <br />(38,333,562) <br />Debt costs <br />413,915 <br />Amortization of current year debt premium <br />1,188,028 <br />Principal payments <br />37,142,398 <br />Disbursements for refunding <br />37,431,142 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 <br />(164,498) <br />LEO Pension Obligation <br />119,942 <br />OPEB Obligation <br />(1,693,390) <br />Accrued Interest <br />515,112 <br />Amortization of current year debt costs <br />(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. <br />29 Attachment number 1 <br />1 -3 Page 284 <br />