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Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Fiscal Year Ended June 30, 2009
<br />20086 Certificates are to be applied to advance refund the Refunded Obligations. The refunded debt consists of
<br />the County's series 1999 Installment Payment Revenue Bonds dated June 16, 1999 and stated to mature on June
<br />30, 2019. The refunding debt was issued at a net interest cost of 3.241996%. As a result, the refunded bonds are
<br />considered to be defeased and the liability has been removed from the Governmental activities column of the
<br />statement of net assets. The amount of defeased debt that remains outstanding as of June 30, 2009 is $0. This
<br />advance refunding was undertaken to reduce total debt service payments over the following 11 years by
<br />$1,143,169 and resulted in an economic gain of $428,256. As required by GASB Statement 23, the difference
<br />between the reacquisition price and the net carrying amount of the old (refunded) bonds was deferred by $958,846
<br />and amortized as a component of interest expense over the remaining life of the refunding bonds. The
<br />unamortized deferred amount as of June 30, 2009 was $835,359.
<br />K. Conduit Debt Obligations
<br />Cabarrus County Industrial Facility and Pollution Control Authority has issued industrial revenue bonds to provide
<br />financial assistance to private businesses for economic development purposes. These bonds are secured by the
<br />properties financed as well as by letters of credit and are payable solely from payments received from the private
<br />businesses involved. Ownership of the acquired facilities is in the name of the private business served by the bond
<br />issuance. Neither the County, the Authority, the State, nor any political subdivision thereof is obligated in any
<br />manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
<br />financial statements. As of June 30, 2009, there were two series of industrial revenue bonds outstanding, with an
<br />aggregate principal amount of $14,600,000.
<br />L. Interfund Balances and Activity
<br />Transactions between funds are accounted for as follows:
<br />1) Transactions which would be treated as revenues, expenditures, or expenses if they involved
<br />organizations external to the County are recorded as revenues, expenditures or expenses in
<br />the appropriate funds.
<br />2) Transactions which are reimbursements to a fund for expenditures or expenses initially made
<br />from it that are properly applicable to another fund are recorded as expenditures or expenses
<br />in the reimbursing fund and as reductions of the expenditures or expenses in the appropriate
<br />funds.
<br />3) All transactions other than those in 1) and 2) above are recorded as transfers.
<br />The composition of interfund balances as of June 30, 2009 is as follows:
<br /> Transfers In Total Transfers Out
<br /> School Non
<br /> Construction General Maior
<br />General $ - $ - $ 13,748,252 $ 13,748,252
<br />School Construction - 2,241 - 2,241
<br />Justice Center - 407,409 - 407,409
<br />Non-Major 1,462,879 557,853 13,055,218 15,075,950
<br />Total $ 1,462,879 $ 967,503 $ 26,803,470 $ 29,233,852
<br />Transfers to/from other funds at June 30, 2009, consists of the following:
<br />To the General Fund from the Sheriff's Department Special Revenue Fund for
<br />expenditures related to the Shield and Gang Grants $ 40,884
<br />60 Attachment number 3
<br />G-8 Page 334
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