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Cabarrus County, North Carolina <br />Notes to the Financial Statements <br />For the Year Ended June 30, 2011 <br />Statement 23, the difference between the reacquisition price and the net carrying amount of the old (refunded) <br />bonds was deferred by $902,811 and amortized as a component of interest expense over the remaining life of the <br />refunding bonds. The unamortized deferred amount as of June 30, 2011 was $820,740. <br />K. Conduit Debt Obligations <br />Cabarrus County Industrial Facility and Pollution Control Authority has issued industrial revenue bonds to provide <br />financial assistance to private businesses for economic development purposes. These bonds are secured by the <br />properties financed as well as by letters of credit and are payable solely from payments received from the private <br />businesses involved. Ownership of the acquired facilities is in the name of the private business served by the bond <br />issuance. Neither the County, the Authority, the State, nor any political subdivision thereof is obligated in any <br />manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying <br />financial statements. As of June 30, 2011, there were two series of industrial revenue bonds outstanding, with an <br />aggregate principal amount of $13,500,000. <br />L. Interfund Balances and Activity <br />Transactions between funds are accounted for as follows: <br />1) Transactions which would be treated as revenues, expenditures, or expenses if they involved <br />organizations external to the County are recorded as revenues, expenditures or expenses in <br />the appropriate funds. <br />2) Transactions which are reimbursements to a fund for expenditures or expenses initially made <br />from it that are properly applicable to another fund are recorded as expenditures or expenses <br />in the reimbursing fund and as reductions of the expenditures or expenses in the appropriate <br />funds. <br />3) All transactions other than those in 1) and 2) above are recorded as transfers. <br />The composition of interfund balances as of June 30, 2011 is as follows: <br />Transfers to and from other funds at June 30, 2011 consists of the following: <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for the construction of an Arena storage facility. $650,000 <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for the purchase of Library software. 40,000 <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for the purchase of HVAC equipment at the Human Services 100,000 <br />Complex. <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for a new roof at the Rowan Cabarrus Community College. 150,000 <br />63 Attachment number 1 <br />1 -3 Page 185 <br />Transfers In <br />Total Transfers Out <br />Non <br />Internal <br />General <br />Major <br />Service <br />General <br />$ - <br />$ 988,407 <br />$ 920,000 <br />$ 1,908,407 <br />Certificates of Part 2009 <br />3,967,669 <br />- <br />- <br />3,967,669 <br />Non -Major <br />2,118,519 <br />467,660 <br />- <br />2,586,179 <br />Total <br />$ 6,086,188 <br />$ 1,456,067 <br />$ 920,000 <br />$ 8,462,255 <br />Transfers to and from other funds at June 30, 2011 consists of the following: <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for the construction of an Arena storage facility. $650,000 <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for the purchase of Library software. 40,000 <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for the purchase of HVAC equipment at the Human Services 100,000 <br />Complex. <br />To the General Fund from the Capital Reserve Capital Projects Fund <br />for a new roof at the Rowan Cabarrus Community College. 150,000 <br />63 Attachment number 1 <br />1 -3 Page 185 <br />