AG 2010 12 20 - 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, 2010. 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 ($75,166,484) (net assets). • The total net assets of governmental activities was a deficit $78,928,543 an increase of $30,507,195 from the prior year's deficit amount of $48,421,348, 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. • At the end of the current fiscal year, unreserved fund balance for the General Fund was $54,436,158 or 28.61 percent of total general fund expenditures for the fiscal year. • Cabarrus County's total debt increased by $66,198,129 (18.0 %) during the current fiscal year. The key factor in this increase was the issuance of $85,170,000 in Certificates of Participation issued for school capital needs. • Cabarrus County has a 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 Basic Discussion and Financial Analysis Statements Government -wide Fund Notes to the Financial Financial Financial Statements Statements Statements Summary Detail 15 G -2 Page 501