AG 2010 12 20 - Laserfiche WebLink

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2010 Reserved Reserved for inventories and prepaid items- portion of fund balance not available for appropriation because it represents the year -end balance of ending inventories and prepaid items, which are not expendable, available resources. Reserved by State statute - portion of fund balance, in addition to reserves for inventory, which is not available for appropriation after remaining reserves not available for appropriation have been segregated under State law G.S. 159 -8(a). This amount is usually comprised of accounts receivables and interfund receivables, which are not offset by deferred revenues. Reserved for Special Revenue and Capital Projects — portion of fund balance which is reserved due to external restrictions either by grant or debt instrument covenants. Unreserved Designated for sustainability efforts — portion of fund balance which is designated to be spent towards the Board of Commissioners goal of becoming a sustainable community where the needs of the present are met without compromising the ability of future generations to meet their own needs. Designated for subsequent year's expenditures - portion of total fund balance available for appropriation, which has been designated for the next fiscal year's adopted budget ordinance. Undesignated- portion of total fund balance available for appropriation, which is uncommitted at year -end. 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 46 G -2 Page 534