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Finance Department <br />No ve mb e r 2 4 ,2 0 2 1 <br />To th e B oa rd o f Co mmissio n e rs an d th e Cit ize n s o f Ca b a rru s Co u n ty,North Ca rolin a : <br />S ta te la w requ ire s th a t a ll g e n e ra l-pu rp o se lo ca l g o ve rnme n ts p u blish e a ch ye a r a co mple te se t o f fin a n cia l sta te me n ts,p re se n te d in a cco rd a n ce with g e n e ra lly <br />a cce p te d a cco u n ting p rin ciple s (GAAP ),an d au dite d b y a ce rtifie d p u b lic a cco u n ta n t in a cco rd a n ce with g e n e ra lly a cce p te d au ditin g sta n d a rd s.P u rsu a n t to <br />th is re q u ire me n t ,we h e re b y issu e the a nnu a l co mp re h e n sive fin a n cia l re p o rt (ACFR)for th e Co u n ty o f Ca b a rru s (the Co un ty)for th e fisca l ye a r en de d Ju ne <br />3 0 ,2 0 2 1 . <br />Co un ty ma n a g e me n t a ssu me s fu ll re sp o n sib ility for th e co mp le te n e ss an d re lia b ility o f a ll th e in forma tio n p re se n te d in th is re p o rt.To p ro vid e a re a so n a b le <br />b a sis for ma kin g th ese re p re se n ta t io n s,ma n a g e me n t h a s e stab lish e d a co mp re h e n sive in te rna l co n trol fra me wo rk d e signe d to b o th p rote ct the Co u n ty's <br />a sse ts fro m lo ss,th e ft,o r misu se ,an d to co mp ile su fficie n t re lia b le in fo rma tio n for th e p repa ra tio n o f th e Co un ty's fin a n cia l sta te me n ts in co n formity with <br />GAAP .B e cau se th e co st o f in te rna l co n tro ls sh o u ld n o t ou twe ig h th e ir b e n efits,th e Co u n ty d e sig n e d its co mp re h e n sive fra me wo rk o f in te rna l co n trols to <br />p ro vid e re a so n a b le ra t h e r th a n a b so lu te a ssu ra n ce th a t th e fin a n cia l sta te me n ts will b e free from ma te ria l missta te me n t.We a sse rt th a t,to th e b e st o f o u r <br />kn o wle dg e a nd b e lie f ,th is fin a n cia l re p ort is co mple te an d re lia b le in a ll ma te ria l re sp e cts. <br />Th e lice n se d ce rtifie d p u blic a ccou n ta n ts o f Ma rtin S ta rnes &Asso cia te s,CP A 's,P .A.,au dite d th e Co u n ty's fin a n cia l sta te me n ts.Th e g oa l o f th e in d e p e n d e n t <br />au dit wa s to p rovid e re a so n a b le a ssu ran ce th at the fin a n cia l sta te me n ts o f the Co u n ty fo r th e fisca l ye a r th a t e nd e d Ju ne 3 0 ,2 0 2 1 a re free o f ma te ria l <br />missta te me n t.The in de p e n d e n t au dit in volve d e xa min in g ,o n a te st b a sis,e vid e n ce supp o rtin g th e a mo u n ts an d d isclo su re s in th e fin a n cia l sta te me n ts; <br />a sse ssin g the a ccou n t in g p rin ciples u se d an d sign ifica n t e stima te s mad e b y ma n a g e me n t;an d e va lu a tin g th e o ve ra ll fin a n cia l sta te me n t p re se n ta tio n .The <br />inde pendent a uditor c onc lude d,ba se d upon the a udit,tha t the re was a reas ona ble ba s is for rende ring a n unmodified opinion tha t the County's <br />fina nc ia l s ta te me nts for the fisc a l ye ar e nde d J une 3 0 ,2 0 2 1 a re fa irly pre s e nted in a ll ma te ria l re s pe c ts with GAAP .Th is re p o rt p re se n ts th e <br />in d e p e n d e n t au dito r's re p o rt a s th e first co mp o n e n t o f the fin a n cia l se ction . <br />Th e ind e p e n de n t au dit o f the fin a n cia l sta te me n ts o f th e Co un ty wa s p a rt o f a b ro ad e r,fe d e ra lly -an d sta te -ma n da te d S in g le A u dit d esig n e d to mee t the <br />sp e cia l n e ed s o f fe d e ra l and sta te g ra n to r a g e n cie s.The sta n d a rd s g o vernin g S in g le A u dit en g a g e me n ts re q u ire the in d e p e n d e n t au dito r to re p o rt n o t on ly <br />o n th e fa ir p re se n ta t io n o f th e fin a n cia l sta te me n ts,b u t a lso o n th e g o ve rnme n t's in terna l co n trols a n d co mplia n ce with le g a l re q u ire me n ts,with sp e cia l <br />e mp h a sis o n in te rna l co n tro ls an d le g a l re q u ire me n ts in volvin g th e a d min istra tio n o f fed e ra l an d sta te a wa rd s.The Co u n ty issu es th e S in g le A u d it re p o rt <br />se p a ra te ly from th e A CFR.Re su lts o f th e S in g le A u dit ca n b e fo u n d in th e co mplia n ce se ctio n o f th is re p o rt GAAP re q u ire s th at ma nag e me n t p ro vid e a <br />n a rra tive in t ro d u ctio n ,o ve rvie w,an d an alysis to a cco mp a n y th e b a sic fin a n cia l sta te me n ts in the form o f Ma n ag e me n t's Discu ssio n an d A n alysis (MD&A ). <br />1