AG 2009 11 16 - 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, 2009. 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 ($43,642,935) (net assets). The total net assets of governmental activities was a deficit $48,421,348 an increase of $4,321,560 from the prior year's deficit amount of $44,099,788, 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. For fiscal year ended June 30, 2008, Cabarrus County implemented GASB Statement #45 regarding the accounting and reporting requirements for Other Post-employment Benefits (OPEB) which resulted in the County recording for governmental activities a $1,326,024 unfunded OPEB liability for fiscal year 2008 and an additional $1,554,197 unfunded OPEB liability for fiscal year 2009. At the end of the current fiscal year, unreserved fund balance for the General Fund was $41,187,681 or 20.59 percent of total general fund expenditures for the fiscal year. Cabarrus County's total debt increased by $44,123,261 (13.6%) during the current fiscal year. The key factor in this increase was the issuance of $58,810,000 in new debt for the construction of a jail housing unit. Cabarrus County maintained its AA bond rating for the 9th consecutive year. 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 G-8 Notes to the Financial Statements Detail Attachment number 3 Page 287