AG 2011 12 19 - Laserfiche WebLink

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2011 Total fund balance - General Fund $74,013,411 Less: Inventories 8,102 Prepaid items 59,200 Stabilization by state statute 10,190,775 Uncompleted FY 11 project assignments 2,514,100 Internal Service Fund assignments 2,000,000 General Government assignments 3,900,000 Environmental Protection assignments 1,200,000 Education assignments 7,341,000 Working Capital /Fund Balance Policy 30,509,956 Fund Balance remaining for appropriation $ 16,290,278 Outstanding encumbrances represent amounts needed to pay commitments related to purchase orders and contracts that remain unperformed at year -end. Cabarrus County cancels all purchase orders at year end. Therefore, no outstanding encumbrances are reported in the financial statements. F. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures /expenses during the reporting period. Actual results could differ from those estimates. G. Other Resources The General Fund provides the basis of local resources for other governmental funds. These transactions are recorded as "Transfers -out" in the General Fund and "Transfers -in" in the receiving fund. H. Comparative Data /Reclassifications Comparative data for the prior years have been presented for individual funds in the fund financial statements, the Management Discussion and Analysis report, the Notes to the Financial Statements and Capital Assets Used in the Operation of Government Funds, in order to provide an understanding of the changes in the financial position and operations of the County. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Note 2. Detailed Notes on All Funds A. Deposits All of the County's and its component unit's deposits are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the County's agents in these unit's names. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the County and its component units, these deposits are considered to be held by their agents in the entities name. The amount of pledged collateral is based on an approved averaging method for non - interest bearing deposits and the actual current balance for interest bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the County, its component units or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged for the County or its component units under the Pooling Method, the potential exists for under - collateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for 49 Attachment number 1 1 -3 Page 171