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NO~TH C~AOtI#A <br /> <br />MEMORANDUM <br /> <br />To: Frank Clifton, Jr. <br /> <br />From: Blair Bennett <br /> <br />Date: <br /> <br />September 14, 1999 <br /> <br />Subject: Financial Update FY'99 <br /> <br />11114[1111111[[111111111111111[111111111111111111111111111111111111111111111 <br /> <br />Summary of Revenues and Expenditures at 6/30/99 <br /> <br />I have attached draft financial schedules, which indicate revenues in excess of budget <br />projections for the period ending 6/30/99. The budget for revenues $100,659,099 was <br />exceeded by $8,597,058 amounting to $109,256,157. Expenditures came in below budget <br />by $10,750,349, amounting to $89,908,750. The combination of revenue over budget and <br />expenditures under budget amounted to revenues exceeding expenditures by $19.3 <br />million. The greatest factor effecting revenues was the settlement with Philip Morris. If <br />you remember we had t~vo different settlements with Philip Morris during the year - one <br />for Capitalized Interest amounting to $908,144 and the other Real Estate amounting to <br />$5,461,085, together amounting to $6,369,229. In addition we had $5,907,520 that had <br />been recorded as a liability in the deferred revenue account in previous years that was <br />realized as tax revenue in the past fiscal year. This recognition of deferred revenue did <br />not affect cash this year because it had been deposited in previous years; however, it did <br />impact tax revenue significantly. The combination of FY99 year's Philip Morris taxes <br />and recognizing deferred revenue amounted to $12,276,749 being recorded to last year <br />taxes and interest. The reason that the deferred taxes of $5,907,520 were recorded FY99 <br />is because North Carolina law will not allow us to bill the taxpayer for those values in <br />litigation. Philip Morris did make payments each year in an amount they deemed <br />appropriate, so we had to treat those payments as deferred revenue. The result is a one- <br />time settlement that significantly impacts FY'99's revenue budget. <br /> <br />I have detailed the major expenditure items that were not expended by year-end <br />indicating the project or services and the amount unspent. Only scheduled are the ones <br />over $100,000, but these account for over $7,776,490 of the unspent funds out of the <br /> <br /> Finance Department <br />GO. Box 707 ·Conccrd. NC 28026-0707 * (704'~ 788-8!04 <br /> <br /> <br />