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FY2021 ACFR
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FY2021 ACFR
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1/19/2022 2:22:09 PM
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1/19/2022 2:20:03 PM
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1/19/2022
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Governmental Activities For the fiscal year ended June 30, 2021, governmental activities increased the County’s net position by $42.4 million, and business–type activities increased net position by $.3 million. As indicated on the previous page, the majority of the County’s expenses were related to education ($127.3 million, 41.5 percent), public safety ($69.9 million, 22.8 percent) and human services ($45.9 million, 14.9 percent). Business‐type Activities The County’s business‐type activity, the Landfill, experienced a $315,402, 6.2 percent increase in net position. Tipping fees decreased by $131,832 after the spike in revenues last fiscal year. The landfill was also closed two weeks during the year due to COVID‐19. Total expenses increased $122,863 from fiscal year 2020 due to engineering cost associated with the landfill expansion. There was also an increase in tire recycling cost. Financial Analysis of the County’s Funds As noted earlier, Cabarrus County uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The County’s major funds, as defined by GAAP for the fiscal year ended June 30, 2021, were the General Fund, the County Capital Project Fund, and the CARES Act Relief Fund. Governmental Funds. The focus of Cabarrus County’s governmental funds is to provide information on near‐term inflows, outflows and balances of usable resources. Such information is useful in assessing Cabarrus County’s financing requirements. Specifically, fund balance available for appropriation can be a useful measure of a government’s net resources available for spending at the end of the fiscal year. The General Fund is the chief operating fund of Cabarrus County. The County’s total fund balance was $122.4 million of which $83.0 million was available for commitments, assignments and appropriations. The governing body of Cabarrus County has determined that the County should maintain an available fund balance of 15% of General Fund expenditures in case of unforeseen needs or opportunities and to meet the cash flow needs of the County. The County currently has an available fund balance of 32.4% of General Fund expenditures, while total fund balance represents 39.5% of that same amount. Of the $100.3 million available fund balance, the County has restricted $39.3 million (32.1%), committed $15.5 million (12.7%) and assigned $6.3 million (5.1%) for specific projects and obligations. Following the fund balance policy, $45.3 million (37.0%) of the available fund balance has been set aside for working capital. This leaves $15.8 million (13.0%) of fund balance remaining for appropriation, commitment or assignment. General Fund balance at June 30, 2021 increased $24.8 million from the prior year. This net increase was primarily due to three factors: Ad valorem property taxes exceeded budgeted expectations by $4.4 million (2.1 percent) Local option sales taxes exceeded budgeted expectations by $13.7 million (30.0 percent) Operational efficiencies resulted in 7.4 percent of unspent budgeted expenditures 18
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