AG 2011 12 19 - Laserfiche WebLink

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Management's Discussion and Analysis As management of Cabarrus County, we offer readers of Cabarrus County's financial statements this narrative overview and analysis of the financial activities of Cabarrus County for the fiscal year ended June 30, 2011. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the County's financial statements, which follow this narrative. Financial Highlights • The liabilities of Cabarrus County exceeded its assets at the close of the fiscal year by ($76,049,523) (net assets). • The total net assets of governmental activities was a deficit $79,755,501 an increase of $826,958 from the prior year's deficit amount of $78,928,543, primarily due to school capital spending and the issuance of debt without a corresponding capital asset. In accordance with North Carolina law, the County is financially responsible for funding school facilities and issuing any debt in connection with school facilities; however, since assets are not reflected in the County's financial statements, school capital improvements are expensed. • As of the close of the current fiscal year, Cabarrus County's governmental funds reported combined ending fund balances of $126,272,933, after a net decrease in fund balance of $8,008,475. Approximately 37.8 percent of this total amount, or $47,679,526, is restricted or non - spendable. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $46,800,234, or 24.6 percent of total general fund expenditures for the fiscal year. • Cabarrus County's total debt decreased by $9,382,295 or 2.2% during the current fiscal year. The key factors in this net decrease was the refunding of $20,000,000 of Certificates of Participation (COPS), issuance of $14,635,000 Certificates of Participation and large principal payments of General Obligation and installment financing debt. The payments and refunding of COPS debt was greater than the new COPS issuance. • Cabarrus County has an AA bond rating and currently has general obligation bond ratings of AA+ / Aa 1 / AA +. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Cabarrus County's basic financial statements. The County's basic financial statements consist of three components; 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the County through the use of government - wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that is designed to enhance the reader's understanding of the financial condition of Cabarrus County. Required Components of Annual Financial Report (Figure 1) Management's Discussion and Analysis Government -wide Fund Financial Financial Statements Statements Basic Financial Statements Summary 15 Notes to the Financial Statements Detail Attachment number 1 1 -3 Page 135