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Cabarrus County, North Carolina <br />Notes to the Financial Statements <br />For the Year Ended June 30, 2009 <br />that utilize the local government financial assurance test allow them to remain exempt from a set contribution <br />schedule. <br />H. Deferred /Unearned Revenues <br />The balance in deferred revenue on the fund statements and unearned revenues on the government-wide <br />statements at year-end is composed of the following elements: <br />Deferred Unearned <br />Revenue Revenue <br />Prepaid taxes not yet earned (General) $ - $ 510,318 <br />Prepaid development fees not yet earned (General) - 10,000 <br />Taxes receivable, net (General) 2 406,985 - <br />Ambulance receivable, net (General) 243 928 - <br />Building inspections receivable, net (General) 549 - <br />Total $ 2,651,462 $ 520,318. <br />1. Leases <br />1. Capital Leases <br />The County has entered into agreements which qualify as capital leases under the provisions of Financial <br />Accounting Standards Board Statement No. 13 "Accounting for Leases" and subsequent amendments. <br />On May 15, 2007 the County entered into a lease agreement as lessee for financing the acquisition of Accela <br />Permitting, Licensing and Inspection Software with a down payment of $250,000 inclusive of $4,022 interest <br />which has an effective rate of 2.99%. This lease agreement qualifies as a capital lease for accounting purposes <br />and, therefore, has been recorded at the present value of their future minimum lease payments as of the date of <br />inception. <br />On December 18, 2008, the County entered into a lease agreement as lessee for financing the acquisition of <br />land for a park with a down payment of $190,000 with an effective interest rate of 4.00%. This lease agreement <br />qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of <br />their future minimum lease payments as of the date of inception. <br />The assets acquired through a capital lease are as follows: <br />Governmental <br /> Activities <br />County owned Asset: <br />Software (equipment) $ 689,546 <br />Land 3,421,394 <br />Less: Accumulated depreciation (275.818) <br />Total $ 3.835.122 <br />The future minimum lease obligation and the net present value of these minimum lease payments as of June <br />30, 2009, were as follows: <br />Governmental <br />Year Ending June 30 Activities <br />2010 $ 312,472 <br />2011 312,472 <br />2012 190,000 <br />2013 190,000 <br />54 Attachment number 3 <br />G-8 Page 328 <br />