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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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Date
1/19/2022
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CABARRUS COUNTY, NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2021 B. Basis of Presentation, Basis of Accounting Basis of Presentation Government‐wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government’s (the County’s) and its component unit’s net position. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities, although interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business‐type activities of the County. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non‐exchange transactions. Business‐type activities are financed in whole or in part by fees charged to external parties. The Statement of Activities presents a comparison between direct expenses and program revenues for the different business‐type activities of the County and for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the Statement of Activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the County’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non‐major funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non‐operating revenues, such as subsidies and investment earnings, result from non‐exchange transactions or ancillary activities. The County reports the following major governmental funds: General Fund. This is the County’s primary operating fund. This fund accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Community Investment Fund is a legally budgeted fund under North Carolina General Statutes; however, for statement presentation, in accordance with GASB 54, it is consolidated in the General Fund. County Capital Projects – constructs, renovates, and equips capital projects for the County through the use of debt and non‐debt sources. CARES Act Relief – This fund accounts for funding received from the federal government to cover COVID‐19 expenditures for public health emergency. 44
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