Comprehensive Annual Financial Report County CAFR FYE... · 2013-05-17 · GFOA Certificate of Achievement ... Harnett County, North Carolina, as of and for the year ended June 30,

Harnett County, North Carolina

Comprehensive Annual

Financial Report for the fiscal year ended June 30, 2012

Prepared by the Harnett County Finance Office Sylvia Blinson, Finance Officer

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HARNETT COUNTY, NORTH CAROLINA

TABLE OF CONTENTS

PAGE

INTRODUCTORY SECTION: Letter of Transmittal……………………………………………………………………………………… i GFOA Certificate of Achievement……………………………………………………………………… x

Map of Harnett County, North Carolina……………………………………………………………….. xi

Organizational Chart…………………………………………………………………………………….. xii

Members of the Board of County Commissioners and Administrative and County Officers…………………………………………………………….. xiii

FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT……………………………………………………………….. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS…………………………………………………… 3

BASIC FINANCIAL STATEMENTS: GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of net assets…………………………………………………………………………….. 21 Statement of activities……………………………………………………………………………….. 22 FUND FINANCIAL STATEMENTS: Balance sheet - governmental fund types ………………………………………………………... 24

Statement of revenues, expenditures and changes in fund balances – governmental funds ……………………………………………………………………. 26

Reconciliation of the statement of revenues, expenditures and changes in fund balances of governmental funds to the statement of activities………………….…………………………………………………………………………. 27

Statement of revenues, expenditures and changes in fund balances - budget and actual – general fund .…………………………………………………….…………… 28

Statement of net assets – proprietary funds.……………………………………………….……… 29 Statement of revenues, expenses and changes in fund net assets – proprietary funds.…………………………………………………………………………… 30


TABLE OF CONTENTS

PAGE

Statement of cash flows – proprietary funds.………………………………………………………. 31

Statement of fiduciary net assets – fiduciary funds.………………………………………………. 32

Notes to basic financial statements.………………………………………………………..………. 33

REQUIRED SUPPLEMENTAL FINANCIAL DATA Law enforcement officers’ special separation allowance…………………………………………. 75 Other post-employment benefits - retiree health plan…………………………………………….. 76

STATEMENTS/SCHEDULES:

Major Funds - Governmental: Schedule of revenues, expenditures and changes in fund balance - budget and actual – General Fund………………………………………………………….. 77

Nonmajor Funds - Governmental Combining balance sheet - nonmajor governmental funds………………………………………. 88 Combining statement of revenues, expenditures and changes in fund balances - nonmajor governmental funds………………………………..…………... 89

Special Revenue Funds: Combining balance sheet - nonmajor special revenue funds……………………………………. 90 Combining statement of revenues, expenditures and changes in fund balances - nonmajor special revenue funds……………………..………………… 92 Schedule of revenues, expenditures, and changes in fund balances - budget and actual:

Section 8 Housing Fund….…………………………………………………………………………… 94 Economic Development Greens Jobs ……………………………………………………………… 95 Special Districts Fund ……………………………………………………………….……..………… 96 Law Enforcement Fund ..…………..………………………………………………………………… 97

Emergency Telephone System Fund………………………………………………………………. 98

Automation Enhancement & Preservation Fund…..…………………………………………..….. 99

Emergency Response Planning Fund..…………………………………………………………….. 100 Harnett Memorial Fund……………………………………………………………………….…….… 101


TABLE OF CONTENTS

PAGE Abandoned Manufacturing Homes Fund………………………………………………………..…. 102

Floodplain Mapping Fund..…………………………………………………………...………….….. 103 WIA Youth Program Fund…………………………………………………………...……….……… 104 AMPI Unrecoverable Cost Fund………………………………………………………….…………. 105 ARRA Fund………………………………………………………………….……………...…………. 106 ARRA 441 Fund…………………………………………………………….……………...…………. 107 Employment Transportation……………………………………………….……………...…………. 108 Electronic Management………………………………………………….……………...…………... 109

Capital Project Funds: Combining balance sheet - nonmajor capital project funds……………………………………… 110 Combining statement of revenues, expenditures and changes in fund balances - nonmajor capital project funds………………………..………………. 112 Schedule of revenues, expenditures and changes in fund balance: Transportation Facility Design……………………………………………..……………………….. 114 Land Acquisition and Runway Safety………………….………………………………………..…. 115 Barbeque Creek Park …………………………………..…………………………………….......... 116 School Improvements QZAB III ………………………………..…………………………………… 117 Emergency Services Renovation ………………………………………………….………..….…. 118 Boone Trail Elementary ………………………………………….………………………………….. 119 Harnett Central High School………………………………………………………………………… 120 Johnsonville Elementary School…………………………………………………………………….. 121 Highland Elementary School Gym…………………………………………………………………... 122 Angier Elementary School……………………………………………………………………………. 123 Law Enforcement Expansion………………………………………………………………………… 124


TABLE OF CONTENTS

PAGE Airport Overlay Zoning Project………………………………………………………………………. 125 Campo Pedestrian Trail Project…………………………………………………………………….. 126 Good Hope Mental Health Project………………………………………………………………..…. 127 Single Family………………………………………………………………………………………….. 128 Airport Runway Reimburse………………………………………………………………………….. 129 Hangar Planning………………………………………………………………………………………. 130 Airport SWPP…………………………………………………………………………………………. 131 Scattered Site Housing II……………………………………………………………………………. 132 Taxi and Apron ………………………………………………………………………………………. 133

Enterprise Funds: Schedule of revenues and expenditures - budget and actual (non-GAAP) Water and Sewer Fund…………………………………………………………..……………..…… 134 Schedule of revenues and expenditures - budget and actual (non-GAAP) Non-operating Enterprise Fund North - Buies Creek/Coats ……..……………………………… 137 Non-operating Enterprise Fund - South Central.………………………………….……………… 138 Non-operating Enterprise Fund - West Central……..…………………………….……………… 139 Non-operating Enterprise Fund - Northwest……………………………………….……………… 140 Non-operating Enterprise Fund - Southwest……………………………………….……………… 141 Non-operating Enterprise Fund - Bunnlevel/Riverside…………………………….……………… 142 Non-operating Enterprise Fund - Southeast………….……………………………………………. 143 Non-operating Enterprise Fund - East Central……….…………………………….……………… 144 Non-operating Enterprise Fund - Riverside…………..……………………………………………. 145 Schedule of revenues and expenditures - budget and actual (non-GAAP): South Central Wastewater Capital Project………………………………………………………….. 146 Erwin Wastewater Capital Project…………………………………………………………………… 147


TABLE OF CONTENTS

PAGE

Lafayette School Capital Project…………………………………………………………………….. 148

East Central Improvements Capital Project………………………………………………………… 149

FT. Bragg Water & Wastewater Capital Project…………………………………………………… 150 Water Plant Expansion Capital Project……………………………………………………………… 151 Buffalo Lakes Wastewater Capital Project…………………………………………………………. 152 Southwest NTA Cameron Hill Capital Project……………………………………………………… 153 South Central Wastewater 1B-1 Capital Project…………………………………………………… 154 South Central Wastewater 1B-2 Capital Project…………………………………………………… 155 Brightwater Infrastructure Capital Project………………………………..………………………… 156 South Central Wastewater 1C-1 Capital Project…………………………………………………… 157 South Central Wastewater 1C-2 Capital Project…………………………………………………… 158 Wastewater Master Plan…………………………………………..…………………………………. 159 NE Wastewater Extension…………………………………………………………………………… 160 Campbell Osteopathic…………………………………..……..……………………..……………… 161 Schedule of revenues and expenditures - budget and actual (non-GAAP) Enterprise Fund - Solid Waste Fund………………………………………………………………. 162

Internal Service Funds:

Combining statement of net assets……………..…………………………………………….…….… 164 Combining statement of revenues, expenses and changes in fund net assets – internal service funds………………………………………………… 165 Statement of cash flows…………………………..…………………………………………….…….… 166 Workers’ Compensation…………………………………………………………………………….. 167 Group Insurance……………………………………………………………………………………... 168

Agency Funds: Combining statement of fiduciary assets and liabilities – agency funds…………………….…….. 169 Combining statement of changes in fiduciary assets and liabilities – agency funds…..….……… 170


TABLE OF CONTENTS

PAGE

OTHER SCHEDULES: Schedule of ad valorem taxes receivable – General Fund…………………..………………….. 171 Analysis of current tax levy…………………………………………..……………………………… 172 Statement of net assets – water & sewer districts operating fund …………..…….…………… 173

Statement of revenues, expenses and changes in fund net assets –

water & sewer districts operating fund……………………..…………………………….… 174

STATISTICAL SECTION (UNAUDITED): Net assets by component………………………………….………………………..…….….… 175 Changes in net assets………………………………………………………………………...… 176 Tax revenues by source………………………………………………………………………… 179 Fund balances of governmental funds……………………..………………………………….. 180 Changes in fund balances of governmental funds………………………………………….… 181 General governmental tax revenues by source………………………………………………. 183 Assessed value of taxable property………………………………………………………….… 184 Property tax rates – direct and overlapping governments…………………………………… 185 Principal property taxpayers…………………………………………………………………..… 188 Property tax levies and collections – General Fund………………………………………….. 189 Ratio of outstanding debt by type ……………………………………..……………………..… 190 Direct and overlapping governmental activities debt……………………………………….... 191

Pledged revenue coverage – water & sewer………….………………………..……………… 192 Computation of legal debt margin…………………………………………………….………… 193 Demographic and economic statistics……………………………………………………….… 194 Principal employers…………………………………………………………………………….… 195 Full-time county government employees by function………….……………………………… 196 Operating indicators by function………………………………………………………………… 197 Capital assets statistics by function………………………………………………………..…… 198


TABLE OF CONTENTS

PAGE

COMPLIANCE SECTION

Report On Internal Control Over Financial Reporting and On Compliance and Other Matters Based On An Audit of Financial Statements Performed In Accordance with Government Auditing Standards……………………………………………. 200

Report On Compliance with Requirements That Could Have A direct and Material Effect On each Major Federal Program and On Internal Control Over Compliance In Accordance with OMB Circular A-133 and the State Single Audit Implementation Act……. 202

Report on Compliance with Requirements That Could Have a direct and Material Effect On Each Major State Program and On Internal Control Over Compliance In Accordance with Applicable Sections of OMB Circular A-133 and the State Single Audit Implementation Act……………………………………………………………………….… 204

Schedule of Findings, Responses, and Questioned Costs…………………………….……… 206 Summary Schedule of Prior Year's Audit Findings…………………………………………….. 210 Schedule of Expenditures of Federal and State Awards…………………………………..….. 211


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FINANCIAL SECTION


730 13th Avenue Drive SE ♦ Hickory, North Carolina 28602 ♦ Phone 828-327-2727 ♦ Fax 828-328-2324

13 South Center Street ♦ Taylorsville, North Carolina 28681 ♦ Phone 828-632-9025 ♦ Fax 828-632-9085

Toll Free Both Locations 1-800-948-0585 ♦ Website: www.martinstarnes.com

INDEPENDENT AUDITORS' REPORT

To the Board of Commissioners Harnett County, North Carolina We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Harnett County, North Carolina, as of and for the year ended June 30, 2012, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of Harnett County's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Harnett County, North Carolina, as of June 30, 2012, the respective changes in financial position and cash flows, where appropriate thereof, and the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2012, on our consideration of Harnett County's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit prepared in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and the Law Enforcement Officers' Special Separation Allowance and the Other Post-Employment Benefits’ Schedules of Funding Progress and Employer Contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide assurance. Our audit was performed for the purpose of forming opinions on the basic financial statements that collectively comprise the basic financial statements of Harnett County, North Carolina, as a whole. The introductory section, combining and individual fund financial statements, budget and actual schedules, supplemental ad valorem tax schedules, and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal and State awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Implementation Act, and is also not a required part of the basic financial statements. The combining and individual fund financial statements, budget and actual schedules, supplemental ad valorem tax schedules, and the schedule of expenditures of federal and State awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subject to the auditing procedures applied in the audit of the basic financial statements and; accordingly, we express no opinion on them.

Martin Starnes & Associates, CPAs, P.A. November 15, 2012

2

Management’s Discussion and Analysis As management of Harnett County, we offer readers of Harnett County’s financial statements this narrative overview and analysis of the financial activities of Harnett County for the fiscal year ended June 30, 2012. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the County’s financial statements, which follow this narrative. Financial Highlights

The assets of Harnett County exceeded its liabilities at the close of the fiscal year by $235,999,734 (net assets).

The government’s total net assets increased by $30,927,230. This increase was due to charges for water and sewer services, capital contributions for the business-type activities and projects, increase in the receipt of local option sales tax, and a decrease in Governmental and Enterprise expenditures.

In accordance with North Carolina law, liabilities of the County include approximately $95.06 million in long-term debt associated with assets belonging to the Harnett County Board of Education and Central Carolina Community College. As these assets are not reflected in the County’s financial statements and the full amount of the long-term debt is reflected in the County’s financial statements, the County reports a corresponding lower net asset amount.

As of the close of the current fiscal year, Harnett County’s governmental funds reported combined ending fund balances of $25,232,353, an increase of $485,198 in comparison with the prior year. Approximately 50.49% of this total amount, or $12,741,517, is available for spending at the government’s discretion (unassigned fund balance).

At the end of the current fiscal year, unassigned fund balance for the General Fund was $13,212,441, or 13.09% percent of total General Fund expenditures for the fiscal year.

Harnett County’s long-term obligations increased by $12,082,175 (6.40%) during the current fiscal year. This increase was during the past fiscal year, primarily due to the addition of a capital lease for patrol cars and an ambulance and the bond anticipation notes for South Central Water and Sewer District.

Harnett County held A3 and A+ bond ratings for Certificates of Participation, A2 and AA- ratings for Issuer Ratings, and A2 and AA- ratings for Revenue Bonds as assigned by Moody's and Standard & Poor's, respectively.

.

3

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Harnett County’s basic financial statements. The County’s basic financial statements consist of three components; 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the County through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of Harnett County.

Required Components of Annual Financial Report

Summary Detail

Basic Financial Statements The first two statements (Exhibits A and B) in the basic financial statements are the Government-Wide Financial Statements. They provide both short and long-term information about the County’s financial status.

Management’s

Discussion and

Analysis

Basic

Financial

Statements

Government-wide

Financial

Statements

Fund

Financial

Statements

Notes to the

Financial

Statements

4

The next statements (Exhibits C through J) are Fund Financial Statements. These statements focus on the activities of the individual parts of the County’s government. These statements provide more detail than the government-wide statements. There are four parts to the fund financial statements: 1) the governmental funds statements, 2) the budgetary comparison statements, 3) the proprietary fund statements, and 4) the fiduciary fund statement. The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the County’s nonmajor governmental funds, all of which are added together in one column on the basic financial statements. Budgetary information required by the General Statutes also can be found in this part of the statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide the reader with a broad overview of the County’s finances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-term information about the County’s financial status as a whole. The two government-wide statements report the County’s net assets and how they have changed. Net assets are the difference between the County’s total assets and total liabilities. Measuring net assets is one way to gauge the County’s financial condition. The government-wide statements are divided into two categories: 1) governmental activities and 2) business-type activities. The governmental activities include most of the County’s basic services, such as general government, public safety, environmental protection, transportation, economic and physical development, human services, cultural and recreational, and education. Property taxes and federal and state grant funds finance most of these activities. The business-type activities are those that the County charges customers to provide. These include the water and sewer and solid waste services offered by Harnett County. The government-wide financial statements are on Pages 21 - 23 of this report. Fund Financial Statements The fund financial statements provide a more detailed look at the County’s most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Harnett County, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance-related legal requirements, such as the General Statutes or the County’s budget ordinance. All of the funds of Harnett County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

5

Governmental Funds – Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the County’s basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting which provides a current financial resources focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or less financial resources available to finance the County’s programs. The relationship between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial statements. Harnett County adopts an annual budget for its General Fund, as required by the General Statutes. The budget is a legally adopted document that incorporates input from the citizens of the County, the management of the County, and the decisions of the Board about which services to provide and how to pay for them. It also authorizes the County to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how well the County complied with the budget ordinance and whether or not the County succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the statement of revenues, expenditures and changes in fund balances. The statement shows four columns: 1) the original budget as adopted by the Board, 2) the final budget as amended by the Board, 3) the actual resources, charges to appropriations, and ending balances in the General Fund, and 4) the difference or variance between the final budget and the actual resources and charges. Proprietary Funds – Harnett County has one type of proprietary fund. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Harnett County uses enterprise funds to account for its water and sewer activity and for its solid waste management fund. This fund is the same as those functions shown in the business-type activities in the Statement of Net Assets and the Statement of Activities. Agency Funds – Agency funds are used to account for assets the County holds on behalf of others. The County has four agency funds. Internal Service Funds – The internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the County, on a cost-reimbursement basis. The County has two internal service funds.

6

Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements are on pages 33 through 74 of this report. Other Information – In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning Harnett County’s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found beginning on page 75 of this report. Government-Wide Financial Analysis Harnett County is in its tenth year of financial reporting based on the requirements of GASB 34. Effective with fiscal year 2004, all units of government across the United States were required to comply with this accounting standard. Prior to fiscal year 2003, Harnett County maintained their governmental and proprietary fund groups as two separate and very distinct types of accounting without any type of consolidated statement that accurately reflected the operations and net assets of the government as a whole. There was a total column that appeared on the financial statements, but it was a memorandum total only. No attempt was made to adjust the statements in such a way that the total column would represent the overall financial condition of Harnett County. These statements were basically the equivalent of the fund financial statements that appear in this report with fiduciary funds and two account groups, the long-term debt and the general fixed assets, added in.

As noted earlier, net assets may serve, over time, as one useful indicator of a government’s financial condition. The assets of Harnett County exceeded liabilities by $235,999,734 as of June 30, 2012. The County’s net assets increased by $30,927,230 for the fiscal year ended June 30, 2012. The largest portion totaling $288,107,156 reflects the County’s investment in capital assets (e.g. land, buildings, machinery, and equipment), less any related debt still outstanding that was issued to acquire those items. Harnett County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Harnett County’s investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities.

7

Harnett County’s Net Assets

2012 2011 2012 2011 2012 2011Assets Cash and cash equivalents 17,978,763$ 15,562,928$ 17,628,551$ 7,569,431$ 35,607,314$ 23,132,357$ Taxes receivable, net 1,462,011 1,619,374 - - 1,462,011 1,619,374 Accounts receivable, net 11,890,787 8,381,939 7,563,169 12,451,304 19,453,956 20,833,245 Due from other governments 1,343,244 1,402,986 53,605 51,087 1,396,849 1,454,073 Internal balance 223,035 102,733 (223,035) (102,733) - - Bond issue costs, net 1,415,283 1,552,589 1,753,808 1,858,377 3,169,091 3,410,966 Inventories 10,776 18,771 513,713 509,112 524,489 527,883 Prepaid items 740,060 33,500 203,045 96,630 943,105 130,130 Restricted assets: Cash and cash equivalents 1,038,989 4,796,931 13,575,991 1,792,193 14,614,980 6,589,124 Capital assets: Land and construction in progress 27,223,390 28,033,964 137,225,886 137,589,348 164,449,276 165,623,312 Other capital assets, net 39,994,673 40,270,283 179,694,899 153,544,411 219,689,572 193,814,694 Total assets 103,321,011 101,775,998 357,989,632 315,359,160 461,310,643 417,135,158

Liabilities Accounts payable 2,878,842 3,200,636 4,357,192 4,352,149 7,236,034 7,552,785 Customer deposits - - 1,601,163 1,481,829 1,601,163 1,481,829 Unearned revenue 272,197 251,937 146,797 113,520 418,994 365,457 Current portion of compensated absences 1,815,230 1,324,024 468,204 488,938 2,283,434 1,812,962 Claims payable - current 424,296 386,836 - - 424,296 386,836 Long-term liabilities: Non-current portion of compensated absences 603,980 1,106,762 121,089 74,199 725,069 1,180,961 Claims payable - non-current 1,504,321 1,371,511 - - 1,504,321 1,371,511 Due in less than one year 6,485,388 7,195,674 17,388,435 4,533,523 24,233,823 11,729,197 Due in more than one year 122,554,186 125,911,152 64,689,589 60,269,964 186,883,775 186,181,116 Total liabilities 136,538,440 140,748,532 88,772,469 71,314,122 225,310,909 212,062,654

Net Assets Capital assets, net of related debt 37,298,229 36,054,811 250,808,927 229,078,137 288,107,156 265,132,948 Restricted for: Stabilization for State Statute 9,639,014 7,855,533 - - 9,639,014 7,855,533 Register of Deeds 117,279 137,532 - - 117,279 137,532 General Government 12,554 - - - 12,554 - Education 66,064 4,371,719 - - 66,064 4,371,719 Public Safety 700,240 1,656,322 - - 700,240 1,656,322 Memorials 2,030 2,030 - - 2,030 2,030 Unrestricted (81,052,839) (89,050,481) 18,408,236 14,966,901 (62,644,603) (74,083,580) Total net assets (33,217,429)$ (38,972,534)$ 269,217,163$ 244,045,038$ 235,999,734$ 205,072,504$

Governmental Activities Business-Type Activities Total Primary Government

As with many counties in the State of North Carolina, the County’s unrestricted net assets, is low or negative due primarily to the portion of the County’s outstanding debt incurred for the County Board of Education (the “school system”) and Central Carolina Community College (CCCC). Under North Carolina law, the County is responsible for providing capital funding for the school systems. The County has chosen to meet its legal obligation to provide the school systems capital funding by using a mixture of

8

County funds. The assets funded by the County, however, are owned and utilized by the school systems. Since the County, as the issuing government, acquires no capital assets, the County has incurred a liability without a corresponding increase in assets. At the end of the fiscal year, approximately $95.06 million of the outstanding debt on the County’s financial statements was related to assets included in the school systems’ financial statements. However, the school system’s related debt is installment purchases financed by the governmental funds and are repaid from the resources of the General Fund. Accordingly, the County is authorized and required by State law to levy ad valorem taxes, without limit as to rate or amount, as may be necessary to pay the debt service on its general obligation bonds. Principal and interest requirements will be provided by an appropriation in the year which they become due. Several particular aspects of the County’s financial operations influenced the total unrestricted governmental net assets:

Continued diligence in the collection of property taxes achieved a collection percentage of 97.35%, which is slightly above the 2011 State-wide average of 97.19% for the County's population group.

Continued low cost of debt due to the County’s high bond rating.

Accounts receivable for the Governmental Activities increased due to an increase in revenue for the Health and Social Services Departments, grant revenue for various programs, and due to an increase in sales tax revenue.

Prepaid Items increased due to the prepayment of funds to a health savings account for the employees for the 2012–2013 fiscal year.

Cash and cash equivalents increased due to increased revenue from the sale of water and sewer, the receipt of project revenues, and to the increased collection of revenue associated with ambulance services..

Accounts receivable for the Business-type Activities decreased $4.89 million from the prior year due to an increase in the receivables for the projects.

Capital assets increased for business-type activities as a result of the number of ongoing construction projects.

9

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10

Governmental Activities. Governmental activities increased the County’s net assets by $5,755,105. Key elements of this increase are as follows:

The most significant change in the governmental activities net assets over the prior fiscal year was the expenses reported for General Government which decreased $3,504,190, or 28.8%. This decrease was due to costs associated with the County’s Capital Projects. The activity for the Capital Projects included the Transportation Facility Design Project, Barbeque Creek Park Capital Project, as well as projects for the Overhills Elementary School, Boone Trail Elementary, Harnett Central High School, Johnsonville Elementary, Highland Elementary School Gym, and Angier Elementary School.

Under General Revenues, property taxes increased $1,931,833, or 5.38%. This slight increase was due to the continued collection efforts and a slight increase in the number of new construction and homeowner remodeling.

Under General Revenues, North Carolina local option sales tax increased $1,625,783, or 11.68%. This increase was due to increased activity and to Medicaid Hold Harmless funds received from the State.

Unrestricted intergovernmental revenues increased $221,357, or 63.75%, due to a significant increase in the receipt of asset forfeiture funds.

Investment earnings decreased $17,520, or 113.1%. Much of this decrease was due to the reduction of cash on deposit with escrow agents for various capital projects and the decrease in the interest yield.

Another area of governmental activity which saw a continued increase in expenditures was for Public Safety, which increased $1,605,469, or 5.00%. The most significant area of change was for the Sheriff and Jail due to costs associated with the housing of federal Inmates and general operating expenses as the inmate population increased. The Emergency Management, Emergency Medical Services, and Emergency Medical Transport experienced large increases due to the number of emergency calls and transports.

11

Expenses – Governmental Activities

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

General

Gov't

Public

Safety

Env.

Protec.

Transp. Economic

& Physical

Dev.

Human

Svcs.

Cultural

& Rec

Education Interest

on Long-

term Debt2011 2012

Revenues by Source – Governmental Activities

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Charges for

Services

Operating

Grants &

contributions

Capital

Grants &

Contributions

Property

Taxes

Local Option

Sales Tax

Other Taxes Other

2011 2012

12

Business-Type Activities. Business-type activities increased Harnett County’s net assets by $25,172,125. Key elements of this increase are as follows:

Charges for services increased $1,997,173, or 5.85%, due to an increase in fees, the number of service connections, and customer activity. Although the daily average treatment of water decreased slightly from 13,293,948 gallons to 13,107,763, the number of water service connections increased from 41,241 to 42,001, and the number of sewer connections increased from 10,072to 10,421.

Capital Grants and Contributions decreased 207.24% from $57,597,723 to $18,746,953. The decrease in revenue reported in this category continues to be associated with various projects which are currently underway in the Public Utilities Department. The Fort Bragg Water Supply and Wastewater Treatment Project consists of the 8 mgd expansion of the Harnett County Regional Water Treatment Plant, the design of an 8 mgd expansion to the currently designed South Harnett Regional Wastewater Treatment Plant, and the installation of waterlines and wastewater force main to serve Fort Bragg. The project also consists of the interim operations of the existing water and wastewater treatment plants located on Fort Bragg until these construction improvements are made. The Water Plant Expansion Project consists of the construction of an 18 mgd expansion of the Harnett Regional Treatment Plant, which will bring the total water treatment capacity of the plant to 36 million gallons per day. Several local governments have purchased capacity in the plant.

Water and sewer expenditures decreased 50.63% from $35,319,763 to $23,466,803. Although expenditures associated with salaries, chemicals, utilities, and treatment cost remained relatively stable over the prior year, the decrease in this category was due largely to the declining project costs associated with the Fort Bragg Water Plant Expansion and Wastewater Treatment Plant projects mentioned in the previous bullet.

13

Expenses – Business-Type Activities

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Landfill Water and Sew er

2011 2012

Revenues – Business-Type Activities

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Charges for Svces Operating Grants &

Contributions

Capital Grants and

Contributions

Other taxes Other

2011 2012

14

Financial Analysis of the County’s Funds As noted earlier, Harnett County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of Harnett County’s governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing Harnett County’s financing requirements. Specifically, unreserved fund balance 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 Harnett County. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $13,212,441, while total fund balance was $23,324,502, an increase of 24.87%. A portion of this increase was the result of the continued diligence in the collection of property taxes, an increase in the receipt of asset forfeiture funds, an 11.68% increase in permits and fees concealed gun permit and finger print fees, and register of deeds. This increase in fund balance was also due to the continued diligence as departments minimized spending for operating materials and supplies and the continued delay in the hiring of vacant positions. The economy continues to impact local sales and the construction of new homes, but recent operating indicators reflect a positive turn. Although the economy has impacted the entire State, the County continues to experience a significant population growth with the expanding number of school aged children enrolling in Harnett County. Additionally, this added growth has placed demands on County services, such as public safety, law enforcement, and emergency services. The Governing Body of Harnett 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, in addition to meeting the cash flow needs of the County. The County currently has an available fund balance of 13.09% of General Fund expenditures, while total fund balance represents 23.12% of that same amount. The County continues to take corrective action to increase the percentage of fund balance to 15% of General Fund expenditures At June 30, 2012, the governmental funds of Harnett County reported a combined fund balance of $25,232,353, a 1.96% increase over last year. Approximately 50.50% of this total amount ($12,741,517) constitutes unassigned fund balance, which is available for spending at the government’s decision. The primary reason for this increase was in the fund balance for the General Fund. Proprietary Funds. Harnett County’s proprietary funds provide the same type of information found in the government-wide statements, but in more detail. Unrestricted net assets of the Landfill Fund at the end of the fiscal year amounted to $(1,537,303), and those for the Water and Sewer Fund equaled $20,007,574. The total growth in net assets for both funds was $14,586 and $25,116,841, respectively. Other factors concerning the finances of these two funds have already been addressed in the discussion of Harnett County’s business-type activities.

15

General Fund Budgetary Highlights. During the fiscal year, the County revised the budget on several occasions. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available, 2) amendments made to recognize new funding amounts from external sources, such as Federal and State grants, and 3) increases in appropriations that become necessary to maintain services. Total amendments to the General Fund increased revenues by $4,515,041 and expenditures by $9,011,532, a material amount. Following are the main components of this increase:

$3.919,079 supplemental appropriations for restricted intergovernmental revenues, an increase of 21.57% to reflect federal and State grants for the Health, Cooperative Extension, Sheriff and Emergency Management Departments, which were either awarded for the fiscal year or adjusted from the original budget ordinance once final grant funding confirmations were received. During the budget process, the County budgets a portion of the grant program revenues (normally three months) pending final confirmation or denial by the grantor. Once a grant amount is confirmed by the funding agency, the budget is adjusted to reflect the final award. The County also appropriated Public School Capital Funds for the purchase of land in conjunction with the construction of a new school.

$319,096 supplemental appropriations for unrestricted intergovernmental revenues to reflect an increase in federal asset forfeiture activities.

$556,869 supplemental appropriations for other general revenues were due to a reimbursement from the Emergency 911 Fund for contracted services, the receipt of insurance proceeds, an increase in the funds received for Cooperative Extension Programs, and the number of donations received by various departments.

$411,871 supplemental appropriations for General Government due to an increase in funds needed for professional services for the Governing Body, the delayed addition of three positions in the Tax Department, and for gas, oil, and auto supplies for County vehicles in the General Services Department.

$851,317 supplemental appropriations for Public Safety for the Sheriff and Jail due to costs associated with the housing of Federal Inmates and general operating expenses as the inmate population increased. This category also received funds for various Edward Byrne Justice grants.

$1,098,380 supplemental appropriations for Economic and Physical Development expenditures due largely to the receipt of various grants for Cooperative Extension. During the budget process, the County generally budgets a portion of grant program expenditures pending final confirmation or denial by the grantor. Once a grant amount is confirmed by the funding agency, the budget is adjusted to reflect the final award.

16

$4,148,863 supplemental appropriations for Education were to restore funding for current expense and to provide funding for the purchase of land for future construction of a new school.

Capital Asset and Debt Administration

Capital Assets. Harnett County’s investment in capital assets for its governmental and business–type activities as of June 30, 2012 totals $384,138,848 (net of accumulated depreciation). These assets include buildings, land, construction in progress, buildings, land improvements, furniture, computer hardware, computer software, fixtures, machinery and equipment, park facilities, vehicles and plant distribution, and collection systems. Major capital asset transactions during the year include:

Purchased computers and software for various departments in the County

Replaced wrecked vehicles for the Sheriff and Emergency Services departments

Addition of construction in progress on Water and Sewer plant facilities and Airport construction projects

Addition of several contributed water lines

Harnett County Capital Assets (net of depreciation)

2012 2011 2012 2011 2012 2011

Land 2,214,535$ 2,214,535$ 2,739,814$ 2,739,814$ 4,954,349$ 4,954,349$

Plant, distribution, and

collection systems - - 162,061,116 149,921,292 162,061,116 149,921,292

Buildings 30,142,978 30,772,501 16,799,111 2,418,721 46,942,089 33,191,222

Land Improvements 7,719,185 7,602,796 - - 7,719,185 7,602,796

Furniture, fixtures, and

equipment 517,496 504,274 271,925 445,323 789,421 949,597

Computer hardware 83,622 39,645 - - 83,622 39,645

Computer software 189,566 149,597 - - 189,566 149,597

Vehicles 1,341,826 1,201,470 562,747 759,075 1,904,573 1,960,545

Construction in progress 25,008,855 25,819,429 134,486,072 134,849,534 159,494,927 160,668,963

Total 67,218,063$ 68,304,247$ 316,920,785$ 291,133,759$ 384,138,848$ 359,438,006$

Governmental Business-Type

Activities Activities Total

Additional information on the County’s capital assets can be found in Note 6 of the Basic Financial Statements.

17

Long-Term Debt. At the end of the current fiscal year, Harnett County had total debt outstanding in the amount of $200,647,535. Of this amount, $35,297,000 represents general obligation bonds issued by the County’s water and sewer districts to fund the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the County. At June 30, 2012, the County’s outstanding debt consisted of:

Harnett County Outstanding Debt

Governmental Business-TypeActivities Activities Total

2012 2011 2012 2011 2012 2011

Installment purchase 120,798,269$ 126,224,456$ 5,758,367$ 6,858,851$ 126,556,636$ 133,083,307$ General obligation bonds - - 35,297,000 23,013,000 35,297,000 23,013,000 Capitalized leases 437,297 299,773 - - 437,297 299,773 Revenue Bonds - - 12,805,000 13,350,000 12,805,000 13,350,000 State Bond loan - - 25,551,602 18,819,280 25,551,602 18,819,280 Total 121,235,566$ 126,524,229$ 79,411,969$ 62,041,131$ 200,647,535$ 188,565,360$

Harnett County’s total debt increased by $12,082,175 (6.40%) during the past fiscal year, primarily due to the addition of a capital lease for patrol cars and an ambulance and the bond anticipation notes for South Central Water and Sewer District. As mentioned in the financial highlights section of this document, Harnett County held A3 and A+ bond ratings for Certificates of Participation, A2 and AA- ratings for Issuer Ratings, and A2 and AA- ratings for Revenue Bonds as assigned by Moody's and Standard & Poor's, respectively. These bond ratings are a clear indication of the sound financial condition of Harnett County. The State of North Carolina limits the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries. The legal debt margin for Harnett County is $421,876,331. The County has $22,494,000 in bonds authorized but unissued at June 30, 2012. Additional information regarding Harnett County’s long-term debt can be found in Notes 9 and 10 beginning on page 53 of this report.

18

Economic Factors and Next Year’s Budgets and Rates

The following key economic indicators reflect the growth and prosperity of the County.

The unemployment rate for Harnett County for the fiscal year ending June 30, 2012 was 11.2%, which is a decrease from a rate of 11.8% a year ago. Compared to the State average of 9.92% for the same period, the County is above the State average.

The Research Triangle Park Region is noted for development of biotechnology and science clusters as a successful model, which for Harnett County, reinforces the efforts of the Harnett Forward Together Committee and its investment in the Brightwater Science and Technology Campus. Beyond the launching of the new Central Harnett Hospital Project, a 50-bed facility, which will be up and running by January 2013, Harnett County’s support for the cooperative development of an Allied Health facility, with training capacity for Campbell University and Central Carolina University, will encourage private clinical research organizations to invest in the human capital and training needs of our regions. Harnett County has planned well and is prepared for both population growth and the infrastructure to support business expansion and investment.

Budget Highlights for the Fiscal Year Ending June 30, 2013

Governmental Activities. Property taxes and revenues from sales and services are expected to lead the increase in revenue projections, and the County will use these increases to finance programs currently in place. Harnett County continually evaluates property on a yearly basis. The County’s continued aggressive tax collection effort provides an analysis of future income. Expenditures in the General Fund have been budgeted at $104,451,914 and include amounts appropriated for Interfund transfers and debt service. The budget decreased $27,513,698 over the fiscal year ended 2012 budget. The 2012–2013 budget contains aggressive forecast estimates for sales tax and growth above the prior fiscal year. Departments have been asked to continue to do more with less and prioritize serves based on the resources available. Harnett County was recently identified by the US Census Bureau as the number one micro area in the country, having gained more new residents in the past 15 months ending July 2011 than any other micro area in the nation. The County stands poised in terms of job creation and service expansion as evidenced by the Highway 421 medical corridor and its pending and ongoing construction. The Board of Commissioners understands this growth and the potential impact it has upon the County. Based upon this, the budget contains an appropriated fund balance of $2,015,334, which includes a 3% cost of living to employees, and additional funding to the Sheriff, Animal Control and Rescue.

19

Business-Type Activities. The water and sewer rates for the 2012–2013 fiscal year increased over the prior year. The rates for landfill services also increased for the 2012-2013 fiscal year. Expenditures for Public Utilities and Solid Waste for the fiscal year have been budgeted at $25,098,738 and $5,276,223, respectively. These budgeted expenditures will cover personnel, supplies, and operating costs associated with the increasing demand for utility and landfill services due to growth.

Requests for Information

This report is designed to provide an overview of the County’s finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to the Director of Finance, Harnett County, P.O. Box 760, 102 East Front Street Lillington, North Carolina 27546.

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BASIC FINANCIAL

STATEMENTS The Basic Financial Statements provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. They also serve as a condensed introduction to the more detailed statements that follow.


Exhibit A


STATEMENT OF NET ASSETSJUNE 30, 2012

Governmental Business-TypeActivities Activities Total

Assets:Current assets:Cash and cash equivalents 17,978,763$ 17,628,551$ 35,607,314$ Taxes receivable, net 1,462,011 - 1,462,011 Accounts receivable, net 11,890,787 7,563,169 19,453,956 Due from other governments 1,343,244 53,605 1,396,849 Internal balance 223,035 (223,035) - Inventories 10,776 513,713 524,489 Prepaid items 740,060 203,045 943,105 Bond issuance 1,415,283 1,753,808 3,169,091 Restricted assets:Cash and cash equivalents 1,038,989 13,575,991 14,614,980 Capital assets:Land and construction in progress 27,223,390 137,225,886 164,449,276 Other capital assets, net 39,994,673 179,694,899 219,689,572

Total assets 103,321,011 357,989,632 461,310,643

Liabilities:Current liabilities:Accounts payable 2,878,842 4,357,192 7,236,034 Customer deposits - 1,601,163 1,601,163 Unearned revenues 272,197 146,797 418,994 Current portion of compensated absences 1,815,230 468,204 2,283,434 Claims payable current 424,296 - 424,296 Long-term liabilities:Non-current portion of compensated absences 603,980 121,089 725,069 Claims payable, non-current 1,504,321 - 1,504,321 Due within one year 6,485,388 17,388,435 23,873,823 Due in more than one year 122,554,186 64,689,589 187,243,775

Total liabilities 136,538,440 88,772,469 225,310,909

Net Assets:Invested in capital assets, net of related debt 37,298,229 250,808,927 288,107,156 Restricted for:Stabilization for State Statute 9,639,014 - 9,639,014 Register of Deeds 117,279 - 117,279 General government 12,554 12,554 Education 66,064 - 66,064 Public safety 700,240 - 700,240 Memorials 2,030 - 2,030 Unrestricted (81,052,839) 18,408,236 (62,644,603)

Total net assets (33,217,429)$ 269,217,163$ 235,999,734$

Primary Government

The accompanying notes an integral part of the financial statements.

21


STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2012

Operating Capital

Charges for Grants and Grants and

Expenses Services Contributions Contributions

Functions/Programs:

Primary Government:

Governmental Activities:

General government 11,217,967$ 4,198,163$ 904,224$ -$

Public safety 32,138,970 8,949,860 1,628,139 -

Transportation 646,939 335,486 382,897 -

Environmental protection 124,255 - 8,962 -

Economic and physical development 6,321,309 16,013 528,743 78,395

Human services 25,235,971 3,463,527 15,120,209 -

Cultural and recreational 621,129 52,284 149,410 28,486

Education 24,115,765 - 1,935,247 -

Interest on long-term debt 6,494,891 - - -

Total governmental activities 106,917,196 17,015,333 20,657,831 106,881

Business-Type Activities:

Water and sewer 23,446,803 30,165,366 - 18,746,953

Solid waste 4,188,342 3,963,611 - -

Total business-type activities 27,635,145 34,128,977 - 18,746,953

Total primary government 134,552,341$ 51,144,310$ 20,657,831$ 18,853,834$

General Revenues:

Ad valorem taxes

Local option sales tax

Other taxes and licenses

Unrestricted intergovernmental revenues

Interest earned on investments, unrestricted

Total general revenues

Transfers

Total general revenues and transfers

Change in net assets

Net Assets:

Beginning of year - July 1

End of year - June 30

Program Revenues

The accompanying notes are an integral part of the financial statements.

22

Exhibit B

Governmental Business-Type

Activities Activities Total

(6,115,580)$ -$ (6,115,580)$

(21,560,971) - (21,560,971)

71,444 - 71,444

(115,293) - (115,293)

(5,698,158) - (5,698,158)

(6,652,235) - (6,652,235)

(390,949) - (390,949)

(22,180,518) - (22,180,518)

(6,494,891) - (6,494,891)

(69,137,151) - (69,137,151)

- 25,465,516 25,465,516

- (224,731) (224,731)

- 25,240,785 25,240,785

(69,137,151) 25,240,785 (43,896,366)

58,298,100 - 58,298,100

13,914,555 - 13,914,555

2,004,883 236,713 2,241,596

347,202 - 347,202

15,492 6,651 22,143

74,580,232 243,364 74,823,596

312,024 (312,024) -

74,892,256 (68,660) 74,823,596

5,755,105 25,172,125 30,927,230

(38,972,534) 244,045,038 205,072,504

(33,217,429)$ 269,217,163$ 235,999,734$

Net (Expense) Revenue

and Changes in Net Assets

Primary Government


23

Exhibit C

Page 1 of 2HARNETT COUNTY, NORTH CAROLINA

BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2012

Other Total

Governmental Governmental

General Funds Funds

Assets:

Cash and investments 15,825,376$ 1,364,231$ 17,189,607$

Taxes receivable, net 1,304,908 157,103 1,462,011

Accounts receivable, net 11,497,074 372,515 11,869,589

Due from other funds 188,103 480,245 668,348

Due from other governments 1,343,244 - 1,343,244

Inventories 10,776 - 10,776

Prepaid items 737,448 2,612 740,060

Restricted assets:

Restricted cash and cash equivalents 574,133 464,856 1,038,989

Total assets 31,481,062$ 2,841,562$ 34,322,624$

Liabilities and Fund Balances:

Liabilities:

Accounts payable and accrued liabilities 1,935,890$ 698,908$ 2,634,798$

Due to other funds 429,646 77,703 507,349

Unearned revenues 247,399 24,798 272,197

Deferred revenues 5,543,625 132,302 5,675,927

Total liabilities 8,156,560 933,711 9,090,271

Fund Balances:

Non-spendable

Inventories 10,776 - 10,776

Prepaid items 737,448 2,612 740,060

Restricted for stabilization for State statute 8,789,704 849,310 9,639,014

Restricted for Register of Deeds - 117,279 117,279

Restricted for general government - 12,554 12,554

Restricted for education 574,133 529,697 1,103,830

Restricted for public safety - 701,463 701,463

Restricted for memorials - 2,030 2,030

Committed - 103,168 103,168

Assigned - 60,662 60,662

Unassigned 13,212,441 (470,924) 12,741,517

Total fund balances 23,324,502 1,907,851 25,232,353

Total liabilities and fund balances 31,481,062$ 2,841,562$ 34,322,624$


24

Exhibit C


BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2012

Total

Governmental

Funds

Amounts reported for governmental activities in the Statement of Net Assets

are different because:

Total fund balances - modified accrual 25,232,353$

Capital assets used in governmental activities are not financial resources

and, therefore, are not reported in the funds. 67,218,062

Bond issuance cost are not available to pay for current-period expenditures and,

therefore, are deferred in the funds. 1,415,283

Long-term debt and compensated absences are not due and payable in the

current period and, therefore, are not reported in the funds.

Long term liabilities (123,258,025)

Compensated absences (2,419,210)

Accrued interest payable (244,044)

Other post-employment benefits (5,164,299)

Unfunded pension (617,250)

Claims payable

Consolidation of Internal Service Fund (1,056,226)

Deferred revenues in the governmental funds are used to offset accounts receivable

expected to be available within 90 days of year-end. These receivables are a

component of net assets in the Statement of Net Assets. 5,675,927

Net assets of governmental activities (Exhibit A) (33,217,429)$


25

Exhibit D


STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS


Other Total

Governmental Governmental

General Funds Funds

Revenues:

Ad valorem taxes 52,129,522$ 5,914,010$ 58,043,532$

Other taxes and licenses 14,944,843 974,595 15,919,438

Unrestricted intergovernmental revenues 347,202 - 347,202

Restricted intergovernmental revenues 19,857,241 723,264 20,580,505

Permits and fees 2,715,669 906,083 3,621,752

Sales and services 9,398,257 83,000 9,481,257

Investment earnings 14,473 1,019 15,492

Other general revenues 2,111,378 2,231 2,113,609

Total revenues 101,518,585 8,604,202 110,122,787

Expenditures:

Current:

General government 9,534,273 680,024 10,214,297

Public safety 23,170,318 8,048,304 31,218,622

Transportation 160,068 - 160,068

Environmental protection 118,166 - 118,166

Economic and physical development 5,844,589 426,055 6,270,644

Human services 24,601,224 21,286 24,622,510

Cultural and recreation 1,354,884 - 1,354,884

Education 23,801,021 314,744 24,115,765

Debt service:

Principal repayments 7,176,838 - 7,176,838

Interest and fees 5,139,600 - 5,139,600

Total expenditures 100,900,981 9,490,413 110,391,394

Revenues over (under) expenditures 617,604 (886,211) (268,607)

Other Financing Sources (Uses):

Long-term debt refunded 24,033,690 - 24,033,690

Long-term debt issued 329,485 - 329,485

Payment to escrow agents (23,921,394) - (23,921,394)

Transfers to other funds (135,952) (3,315,918) (3,451,870)

Transfers from other funds 3,721,918 41,976 3,763,894

Total other financing sources (uses) 4,027,747 (3,273,942) 753,805

Net change in fund balances 4,645,351 (4,160,153) 485,198

Fund Balances:

Beginning of year - July 1 18,679,151 6,068,004 24,747,155

End of year - June 30 23,324,502$ 1,907,851$ 25,232,353$


26

Exhibit E


RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES


Amounts reported for governmental activities in the Statement of Activities (Exhibit B)

are different due to the following items:

Net change in fund balances - total governmental funds (Exhibit D) 485,198$

Exhibit D reports revenues using a current financial resources basis, which generally means

revenue is recognized when collected or is expected to be collected within 90 days of year-end.

Exhibit B reports revenues when the earning process is complete, regardless of when it is

collected. This measurement difference causes timing of revenue recognition differences for

the following revenue types:

Property taxes 254,568

Ambulance/other miscellaneous revenues 1,796,535

Expenses related to other post-employment benefits, claims payable, and pension that do

not require current financial resources are not reported as expenditures in the governmental

funds statement. (1,457,130)

Expenses related to accrued interest and prepaid tax penalties that do not require current

financial resources are not reported as expenditures in the governmental funds statement. 91,103

Expenses related to bond issuance that do not require current financial resources are not

reported as expenditures in the governmental funds statement. 109,989

Capital outlays are reported as expenditures in the governmental funds statement. However,

in the Statement of Activities, capital outlay is not an expense, rather it is an increase in

capital assets. 1,196,344

Depreciation expense allocates the costs of capital assets over their useful lives. It is not

reported as an expenditure in the governmental funds statement. (2,282,529)

Principal repayments are reported as expenditures in the governmental funds statement.

However, in the Statement of Activities, these transactions are not an expense, rather they

are a decrease in liabilities. 29,651,838

Consolidation of Internal Service Fund 272,364

Premium from the issuance of debt and the issuance of debt are reported as revenues in

the governmental funds statement. However, in the Statement of Activities, proceeds from

the issuance of debt are not a revenue, rather they are an increase in liabilities. (24,363,175)

Change in net assets of governmental activities (Exhibit B) 5,755,105$


27

Exhibit F


GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL


Variance from

Final Budget

Original Final Actual Over/Under

Revenues:

Ad valorem taxes 52,518,059$ 52,518,059$ 52,129,522$ (388,537)$

Other taxes and licenses 12,839,058 12,863,555 14,944,843 2,081,288

Unrestricted intergovernmental revenues 35,000 354,096 347,202 (6,894)

Restricted intergovernmental revenues 18,167,320 22,086,399 19,857,241 (2,229,158)

Permits and fees 2,543,964 2,584,469 2,715,669 131,200

Sales and services 10,143,564 9,798,559 9,398,257 (400,302)

Investment earnings 13,100 13,100 14,473 1,373

Other general revenues 1,402,371 1,959,240 2,111,378 152,138

Total revenues 97,662,436 102,177,477 101,518,585 (658,892)

Expenditures:

General government 10,089,786 10,501,657 9,534,273 967,384

Public safety 23,563,672 24,414,989 23,170,318 1,244,671

Transportation 162,856 162,856 160,068 2,788

Environmental protection 167,364 167,364 118,166 49,198

Economic and physical development 4,761,781 5,860,161 5,844,589 15,572

Human services 25,540,575 27,852,361 24,601,224 3,251,137

Cultural and recreation 1,316,933 1,393,248 1,354,884 38,364

Education 20,710,256 24,859,119 23,801,021 1,058,098

Debt service:

Principal repayments 7,264,359 7,264,359 7,176,838 87,521

Interest and fees 5,319,187 5,432,187 5,139,600 292,587

Total expenditures 98,896,769 107,908,301 100,900,981 7,007,320

Revenues over (under) expenditures (1,234,333) (5,730,824) 617,604 6,348,428


Transfers to other funds (36,667) (136,621) (135,952) 669

Transfers from other funds 904,000 4,015,820 3,721,918 (293,902)

Long-term debt issued 367,000 24,400,690 24,363,175 (37,515)

Bond payoff - (23,920,690) (23,921,394) (704)

Appropriated fund balance - 1,371,625 - (1,371,625)

Total other financing sources (uses) 1,234,333 5,730,824 4,027,747 (1,703,077)

Net change in fund balance -$ -$ 4,645,351 4,645,351$

Fund Balance:

Beginning of year - July 1 18,679,151

End of year - June 30 23,324,502$

Budgeted Amounts


28

Exhibit G


STATEMENT OF NET ASSETS

PROPRIETARY FUNDS

JUNE 30, 2012

Water and Solid Waste Internal

Sewer Fund Fund Total Service Fund

Assets:

Current assets:

Cash and cash investments 17,441,884$ 186,667$ 17,628,551$ 789,158$

Accounts receivable, net 7,327,857 235,312 7,563,169 21,198

Restricted intergovernmental receivables - 53,605 53,605 -

Prepaid items 188,620 14,425 203,045 -

Inventory 513,713 - 513,713 -

Restricted assets:

Cash and investments, restricted 13,575,972 19 13,575,991 -

Total current assets 39,048,046 490,028 39,538,074 810,356

Non-current assets:

Land and construction in progress 136,313,598 912,288 137,225,886 -

Other capital assets, net 177,265,305 2,429,594 179,694,899 -

Bond issuance cost, net 1,727,160 26,648 1,753,808 -

Total non-current assets 315,306,063 3,368,530 318,674,593 -

Total assets 354,354,109 3,858,558 358,212,667 810,356

Liabilities and Net Assets:

Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 3,735,525 235,021 3,970,546 -

Claims payable - - - 424,296

Accrued interest 378,475 8,171 386,646 -

Due to other funds 156,000 5,000 161,000 -

Unearned revenue 104,189 42,608 146,797 -

Customer deposits 1,601,163 - 1,601,163 -

Compensated absences, current 430,748 37,456 468,204 -

Current portion of long-term debt 17,122,918 265,517 17,388,435 -

Total current liabilities 23,529,018 593,773 24,122,791 424,296

Non-current liabilities:

Compensated absences, non-current 109,695 11,394 121,089 -

Claims payable - - - 1,504,321

Non-current portion of long-term debt 60,615,319 3,254,939 63,870,258 -

Other post-employment benefits 740,420 78,911 819,331 -

Total non-current liabilities 61,465,434 3,345,244 64,810,678 1,504,321

Total liabilities 84,994,452 3,939,017 88,933,469 1,928,617

Net Assets:

Invested in capital assets, net of related debt 249,352,083 1,456,844 250,808,927 -

Unrestricted 20,007,574 (1,537,303) 18,470,271 (1,118,261)

Total net assets 269,359,657$ (80,459)$ 269,279,198 (1,118,261)$

Adjustment to reflect consolidation of Internal Service Fund (62,035)

Net assets 269,217,163$

Enterprise Funds


29

Exhibit H


STATEMENT OF REVENUES, EXPENSES, AND CHANGES

IN FUND NET ASSETS - PROPRIETARY FUNDS




Operating Revenues:

Charges for services 23,586,918$ 3,956,316$ 27,543,234$ -$

Water and sewer taps 350,033 - 350,033 -

Johnson County 7,406 - 7,406 -

County contributions - - - 1,433,746

Other operating revenues 6,186,572 1,034 6,187,606 -

Total operating revenues 30,130,929 3,957,350 34,088,279 1,433,746

Operating Expenses:

Water distribution and sewage treatment 13,615,380 - 13,615,380 -

Solid waste - 3,925,567 3,925,567 -

Benefits and premiums - - - 1,120,684

Depreciation 5,248,377 178,966 5,427,343 -

Total operating expenses 18,863,757 4,104,533 22,968,290 1,120,684

Operating income (loss) 11,267,172 (147,183) 11,119,989 313,062

Non-Operating Revenues (Expenses):

Gain on sale of assets - 1,617 1,617 -

Solid waste disposal tax - 236,713 236,713 -

Interest earned on investments 6,146 505 6,651 -

Interest and fees (4,583,046) (85,426) (4,668,472) -

Total non-operating revenues (expenses) (4,576,900) 153,409 (4,423,491) -

Income (loss) before capital contributions and transfers 6,690,272 6,226 6,696,498 313,062

Capital contributions 18,746,953 - 18,746,953 -

Income (loss) before transfers 25,437,225 6,226 25,443,451 313,062

Transfers:

Transfers in 85,616 8,360 93,976 -

Transfers out (406,000) - (406,000) -

Total transfers (320,384) 8,360 (312,024) -

Change in net assets 25,116,841 14,586 25,131,427 313,062

Net Assets:

Beginning of year - July 1 244,242,816 (95,045) (1,431,323)

End of year - June 30 269,359,657$ (80,459)$ (1,118,261)$

Adjustment to reflect consolidation of Internal Service Fund 40,698

Change in net assets 25,172,125$

Enterprise Funds


30

Exhibit I


STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS




Cash Flows from Operating Activities:

Cash received from customers 34,840,793$ 4,166,380$ 39,007,173$ 1,412,548$

Cash paid for goods and services (8,575,092) (3,528,618) (12,103,710) (1,186,781)

Cash paid to employees for services (4,983,728) (661,388) (5,645,116) -

Other revenues - 238,330 238,330 -

Customer deposits received 119,334 - 119,334 -

Net cash provided (used) by operating activities 21,401,307 214,704 21,616,011 225,767

Cash Flows from Non-Capital Financing Activities:

Loans from (to) other funds 156,000 5,000 161,000 -

Transfers in 85,616 8,360 93,976 -

Transfers out (406,000) - (406,000) -

Net cash provided (used) by non-capital financing activities (164,384) 13,360 (151,024) -

Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (27,148,461) (8,280) (27,156,741) -

Principal paid on long-term debt (4,555,711) (47,126) (4,602,837) -

Loans issued 21,973,676 - 21,973,676 -

Interest and fees (4,444,100) (88,043) (4,532,143) -

Capital contributions 14,689,325 - 14,689,325 -

Net cash provided (used) for capital and related financing activities 514,729 (143,449) 371,280 -

Cash Flows from Investing Activities:

Interest on investments 6,146 505 6,651 -

Net increase (decrease) in cash and cash equivalents 21,757,798 85,120 21,842,918 225,767

Cash and Cash Equivalents:

Beginning of year - July 1 9,260,058 101,566 9,361,624 563,391

End of year - June 30 31,017,856$ 186,686$ 31,204,542$ 789,158$

Reconciliation of Operating Income (Loss) to

Net Cash Provided (Used) by Operating Activities:

Operating income (loss) 11,267,172$ (147,183)$ 11,119,989$ 313,062$

Adjustments to reconcile operating income (loss) to

net cash provided (used) by operating activities:

Depreciation 5,248,377 178,966 5,427,343 -

Gain on disposal of asset - 1,617 1,617 -

Other revenues - 236,713 236,713 -

Changes in assets and liabilities:

(Increase) decrease in accounts receivable 4,694,898 190,719 4,885,617 (21,198)

Increase (decrease) in accounts payable and accrued liabilities (41,541) (34,153) (75,694) (66,097)

Increase (decrease) in prepaid items (91,990) (14,425) (106,415) -

Increase (decrease) in unearned revenues 14,966 18,311 33,277 -

Increase (decrease) in landfill post-closure - (237,862) (237,862) -

(Increase) decrease in inventory (4,601) - (4,601) -

Increase (decrease) in customer deposits 119,334 - 119,334 -

Increase (decrease) in accrued vacation pay 20,457 5,699 26,156 -

Increase (decrease) in OPEB payable 174,235 16,302 190,537 -

Net cash provided (used) by operating activities 21,401,307$ 214,704$ 21,616,011$ 225,767$

Non-Cash Transactions:

Contributed water lines 4,057,628$ -$ 4,057,628$ -$

Enterprise Funds


31

Exhibit J


STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

JUNE 30, 2012

Agency

Funds

Assets:

Cash and investments 238,115$

Total assets 238,115$

Liabilities:

Accounts payable 238,115$

Total liabilities 238,115$


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NOTES TO THE BASIC FINANCIAL STATEMENTS

YEAR ENDED JUNE 30, 2012

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of Harnett County (“the County”) and its component units conform to accounting principles generally accepted in the United States of America as applicable to governments. The following is a summary of the more significant accounting policies:

A. Reporting Entity The County, which is governed by a five-member Board of Commissioners, is one of the 100 counties established in North Carolina under North Carolina General Statute (“G.S.”) 153A-10. As required by accounting principles generally accepted in the United States of America, these financial statements present the County and its component units, legally separate entities for which the County is financially accountable. One component unit of the County has no financial transactions or account balances; therefore, it does not appear in the basic financial statements. The blended component units, although they are legally separate entities, are in substance, part of the County’s operations.

Blended Component Units

Harnett Water and Sewer Districts Harnett County Water and Sewer Districts (the “Districts”) exist to provide and maintain a water system for the county residents within the districts. Under State law G.S. 162A-89J, the County’s Board of Commissioners also serves as the governing board for the Districts. Therefore, the Districts are reported as enterprise funds in the County’s financial statements. The County has the following ten water and sewer districts, which are accounted for as enterprise funds: Northeast Metro Water and Sewer District Southwest Water and Sewer District Buies Creek/Coats Water and Sewer District Bunnlevel/Riverside Water and Sewer District South Central Water and Sewer District Southeast Water and Sewer District West Central Water and Sewer District East Central Water and Sewer District Northwest Water and Sewer District Riverside Water and Sewer District The County entered into an agreement during fiscal year 1998, with each existing District and which will encompass additional Districts as they are created, that transferred all assets, liabilities (excluding bond indebtedness, loans, and installment notes, along with accrued interest payable), operational rights, and responsibilities to the County. In consideration for this agreement, along with related accrued interest payables, the County agreed to pay the Districts an amount equal to debt service costs for the respective Districts for the duration of the respective bonds, loans, and notes. The County maintains the Districts’ assets, provides water and sewer operations and makes payments on outstanding debts on behalf of the respective Districts. Therefore, the County’s financial statements reflect the assets and debts in the Harnett County Public Utilities Fund. The Board of County Commissioners sits as the Board of each District. No separate financial statements are issued by these Districts as they have no operations, only certain outstanding debt that is paid on their behalf by the County pursuant to the

agreement noted above.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Other Component Unit

Harnett County Industrial Facility and Pollution Control Financing Authority

Harnett County Industrial Facility and Pollution Control Financing Authority (“the Authority”) exists to issue and service revenue bond debt of private businesses for economic development purposes. The Authority is governed by a seven-member Board of Commissioners, all of whom are appointed by the County Commissioners. The County can remove any commissioner of the Authority with or without cause. The Authority has no financial transactions or account balances; therefore, it is not presented in the basic financial statements. The Authority does not issue separate financial statements.

B. Basis of Presentation, Measurement Focus - Basis of Accounting Government-Wide Statements. The Statement of Net Assets and the Statement of Activities display information about the primary government (the County). 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. 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, if any, are aggregated and reported as nonmajor 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 fund:

General Fund. This fund is the County’s operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

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The County reports the following nonmajor governmental funds: Special Revenue Funds: Special revenue funds account for the proceeds of special revenue sources that are legally restricted to the expenditure for special purposes. All of these funds are annually budgeted except for the AMPI Unrecoverable Cost Fund. The County reports the following special revenue funds: Section 8 Housing Fund; Special Districts Fund; Law Enforcement Fund; Emergency Telephone System Fund; Automation Enhancement & Preservation Fund; Emergency Response Planning Fund; Green Jobs; Harnett Memorial Fund; Abandoned Manufactured Homes Fund; Floodplain Mapping Fund; WIA Youth Program Fund; AMPI Unrecoverable Cost Fund; the ARRA Fund; the Employment Transportation Fund; and the Electronics Management Fund. Capital Project Funds. Capital project funds account for financial resources to be used for the acquisition or construction of major capital facilities. The County reports the following capital project funds: Transportation Facility Design Fund; Taxiway & Apron Land Acquisition and Runway Safety Fund; School Improvements QZAB Fund; Barbeque Creek Park Fun; Airport Runway Reimburse; Hanger Planning & Preliminary Engineering; Airport SWPP & SPCC; Anderson Creek Phase I; School Improvements QZAB III Fund; Emergency Services Renovation Fund; Boone Trail Elementary Fund; Harnett Central High School Fund; Johnsonville Elementary School Fund; Highland Elementary School Gym Fund; Angier Elementary School Fund; Law Enforcement Expansion Fund; Airport Overlay Zoning Fund; Campo Pedestrian Trail Fund; Good Hope Mental Health Fund; and Airport Runway Reimbursement Project Fund; Single Family SFR 2010; and Taxiway and Apron Rehab.

The County reports all enterprise funds as major. Harnett County maintains one enterprise fund to account for the operations of the water and sewer districts. The County maintains ten additional funds to account for the debt service for each district. The County maintains a separate enterprise fund for the operations of the landfill. The County’s enterprise funds consist of the following:

Harnett County Public Utilities Fund. This fund is used to account for the operations of the ten water and sewer districts, which provide water and sewer to the residents of the County. Individual Water and Sewer Funds. These funds are used to account for the debt service for each of the water and sewer districts. These funds are consolidated with the Public Utilities Fund for reporting. These funds are the Northeast Metro Water and Sewer District, the Buies Creek I Coats Sewer District, the South Central Water and Sewer District, the West Central Water and Sewer District, the Northwest Water and Sewer District, the Southwest Water and Sewer District, the Bunnlevel I Riverside Water and Sewer District, the Southeast Water and Sewer District, the East Central Water and Sewer District, and Riverside Water and Sewer District. The Harnett County Public Utilities Fund also includes the following projects: South Central Wastewater Project, Erwin Wastewater Project, East Central Improvements Project, Fort Bragg Water & Wastewater Project, Water Plant Expansion Project, Buffalo Lakes Wastewater Project, South West Northern Training Area/Cameron Hill Project. South Central Waste Water 1B-1 Project, South Central Waste Water 1B-2 Project, South Central Waste Water 1C-1 Project, South Central Waste Water 1C-2 Project, Brightwater Infrastructure Project, Wastewater Master Plan Project, NE Wastewater Extension, and Campbell Osteopathic and Lafayette School Capital Project. Solid Waste Management Fund. This fund is used to account for the operations of the Harnett County Landfill.

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The County reports the following fund type: Agency Funds. Agency funds are custodial in nature and do not involve the measurement of operating results. Agency funds are used to account for assets held by the County as an agent on behalf of others. The County maintains five agency funds: the Social Services Trust Fund, which accounts for monies deposited with the Department of Social Services for the benefit of certain individuals, the Motor Vehicle Tax Fund, which accounts for registered motor vehicle property taxes that are billed and collected by the County for various municipalities and special districts within the County, the State Vehicle Tax Fund, which accounts for the 3% interest penalty on past due motor vehicle property tax bills that are remitted to the North Carolina Department of Motor Vehicles and the Fines and Forfeitures Fund, which accounts for the collection and payment of fines and forfeitures to the Board of Education, and the Jail Canteen Fund, which accounts for inmate monies being held for use at the jail canteen.

Internal Service Funds. The internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the County, on a cost-reimbursement basis. Harnett County has two internal service funds, the Workers’ Compensation Fund and the Group Insurance Fund. The Workers’ Compensation Fund is used to account for the County’s decision to finance workers' compensation insurance coverage internally rather than through a private insurance carrier. The General Insurance Fund is used to account for liabilities that have been incurred from prior years when the County was self-funded. Internal service funds are accounted for in the governmental activities in the government-wide financial statements and the individual fund data is provided in the Internal Service Fund section of the report.

C. Measurement Focus, Basis of Accounting In accordance with North Carolina General Statutes, all funds of the County are maintained during the year using the modified accrual basis. Government-Wide, Proprietary, and Fiduciary Fund Financial Statements. The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus, except for the agency funds, which have no measurement focus. The government-wide, proprietary fund, and fiduciary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

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Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County enterprise funds are charges to customers for sales and services. The County also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. The County considers all revenues available if they are collected within 90 days after year-end, except for property taxes. Ad valorem property taxes are not accrued as revenue because the amount is not susceptible to accrual. At June 30, taxes receivable are materially past due and are not considered to be an available resource to finance the operations of the current year. Also, as of January 1, 1993, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North Carolina. Effective with this change in the law, the County is responsible for billing and collecting the property taxes on all registered motor vehicles on behalf of all municipalities and special tax districts in the County. For registered motor vehicles, property taxes are due the first day of the fourth month after the vehicles are registered. The billed taxes are applicable to the fiscal year in which they become due. Therefore, taxes for vehicles registered from March 2011 through February 2012 apply to the fiscal year ended June 30, 2012. Uncollected taxes, which were billed during this period, are shown as a receivable on these financial statements. For motor vehicles, which are renewed and billed under the annual system, taxes are due on May 1 of each year. Uncollected taxes are reported as a receivable on the financial statements offset by deferred revenues because the due date and the date upon which the interest begins to accrue passed prior to June 30. Sales taxes and certain intergovernmental revenues, such as the utilities franchise tax, collected, and held by the State at year-end on behalf of the County are recognized as revenue. Intergovernmental revenues and sales and services are not susceptible to accrual because generally they are not measurable until received in cash. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been satisfied. Under the terms of grant agreements, the County funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. All governmental and business-type activities and enterprise funds of the County follow FASB Statements and Interpretations issued on or before November 30, 1989, Accounting Principles Board Opinions, and Accounting Research Bulletins, unless those pronouncements conflict with GASB pronouncements.

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D. Budgetary Data The County’s budgets are adopted as required by the North Carolina General Statutes. Formal budgetary accounting is employed as a management control for all funds of the County. Annual budget ordinances are adopted each fiscal year, and amended as required, for the General Fund, all special revenue funds except for the AMPI Unrecoverable Cost Fund and for the enterprise funds. All annual appropriations lapse at the fiscal year-end. Project ordinances are adopted for the capital project funds. All budgets are prepared using the modified accrual basis of accounting, which is consistent with the accounting system used to record transactions. The Workers’ Compensation Fund and General Insurance Fund (internal service funds) operate under financial plans that were adopted by the governing board at the time the County’s budget ordinance was approved. The legal level of control over expenditures is at the department level for the General Fund, special revenue funds, and enterprise funds. The balances in the capital reserve funds will be appropriated when transferred to the General Fund or their respective capital project funds. The County Manager is authorized by the budget ordinance to transfer amounts between line item expenditures within a department without limitation with an official report on such transfers at the next regular meeting of the Board of Commissioners. These changes should not result in changes in recurring obligations such as salaries. The manager may not transfer amounts between departments of the same fund or transfer amounts between funds or from any contingency appropriation within a fund. All other transfers, as well as any revisions that alter the total expenditures of any fund, require prior approval by the board of commissioners. During the year, a significant number of amendments to the original budget were necessary. A budget calendar is included in the North Carolina General Statutes, which prescribes the last day on which certain steps of the budget procedure are to be performed. The following schedule lists the tasks to be performed and the date by which each is required to be completed.

March 20 - Each department head submits to the budget officer the budget requests and

revenue estimates for their department for the budget year. May 1 - The budget and the budget message shall be submitted to the governing board.

The public hearing on the budget should be scheduled at this time.

June 19 - The budget ordinance shall be adopted by the governing board.

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E. Assets, Liabilities, and Fund Equity Deposits and Investments

All deposits of the County are made in board-designated official depositories and are secured as required by G.S. 159-31. The County may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the County may establish time deposit accounts such as NOW and SuperNow accounts, money market accounts, and certificates of deposit. State Law G. S. 159-30(c) authorizes the County to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States; obligations of the State of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and banker’s acceptances; and the North Carolina Capital Management Trust (“NCCMT”). The County’s investments with a maturity of more than one year at acquisition and non-money market investments are carried at fair value as determined by quoted market prices. The securities of the NCCMT Cash Portfolio, and SEC-registered (2a-7) money market mutual funds, are valued at fair value, which is the NCCMT’s share price. The NCCMT Term Portfolio’s securities are valued at fair value. Money market investments including commercial paper that have a remaining maturity at the time of purchase of one year or less and non-participating interest earnings and investment contracts are reported at amortized cost.

Cash and Cash Equivalents The County pools monies from several funds to facilitate disbursement and investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered cash and cash equivalents. The investment income is allocated based on each fund’s monthly balance in relation to the total pooled cash balance. For purposes of the Statement of Cash Flows, the County’s proprietary funds consider equity in pooled cash and investments to be cash equivalents as they are essentially demand deposit accounts.

Restricted Assets The unexpended bond proceeds of the Water and Sewer Fund Serial Bonds issued by the County are considered restricted assets (i.e., cash and investments) for the enterprise funds because their use is completely restricted to the purpose for which the bonds were originally issued. The unexpended certificate of participation proceeds in the Water and Sewer Fund and the capital projects funds are deposited in a trustee account and are also restricted assets because of contractual requirements. Such amounts are included in cash and investments and are described in the footnotes. Restricted cash in the General Fund is accumulated and applied against debt interest payments. Customer deposits held by the County before any services are supplied are restricted to the service for which the deposit was collected.

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Ad Valorem Taxes Receivable In accordance with State law [G.S. 105-347 and G.S. 159-13(a)], the County levies ad valorem taxes on property other than motor vehicles on July 1, the beginning of the fiscal year. The taxes are due on September 1 (lien date); however, penalties and interest do not accrue until the following January 6. These taxes are based on the assessed values as of January 1, 2011 as allowed by state law; the County has established a schedule of discounts that apply to taxes that are paid prior to the due date. In the General Fund, ad valorem tax revenues are reported net of such discounts. Allowance for Doubtful Accounts All receivables that historically experience uncollectible accounts are shown net of allowances for doubtful accounts. These amounts are estimated by analyzing the percentage of receivables, which are not expected to be collected.

Inventory Inventory is determined by physical count and valued at cost, which approximates market. The inventory of the General Fund consists of expendable supplies held for consumption that are recorded as expenditures when purchased. The inventory of the enterprise funds consists of chemicals, meters and meter boxes, fuel oil, tubing and other supplies held for consumption. In each case, the cost of the inventory carried in the County’s Enterprise Fund is recorded as an expense when the inventory is consumed. Capital Assets Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. The minimum capitalization threshold is $5,000. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets’ lives are not capitalized. The County does not own any infrastructure assets. The County holds title to certain Harnett County Board of Education properties that have not been included in capital assets. The properties have been deeded to the County to permit installment purchase financing of acquisition and construction costs and to permit the County to receive refunds of sales tax paid for construction costs. Agreements between the County and Board of Education give the Board of Education full use of the facilities, full responsibility for maintenance of the facilities, and provide that the County will convey title to the property back to the Board of Education, once all restrictions of the financing agreements and all sales tax reimbursement requirements have been met. The properties are reflected as capital assets in the financial statements of the Harnett County Board of Education. Capital assets of the County are depreciated on a straight-line basis using the following estimated useful lives:

Buildings and improvements 50 years Plant, distribution, and collection system 20 to 40 years Furniture 10 years Equipment 5 years Computer hardware 3 years Computer software 3 years Vehicles 6 years

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Long-Term Obligations

In the government-wide financial statements and in the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Assets. In the fund financial statements for the governmental fund types, the face amount of debt issued is reported as an other financing source.

Compensated Absences

The vacation policy of the County provides that vacation leave may be accumulated without any applicable maximum until December 31

st of each calendar year. On December 31

st, all vacation leave exceeding 240

hours per employee is transferred to sick leave. For the government-wide financial statements and proprietary funds, an expense and a liability for compensated absences and the salary-related payments are recorded as the leave is earned. The County’s sick leave policy provides for an unlimited accumulation of earned sick leave. Sick leave does not vest but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Because the County has no obligation for the accumulated sick leave until it is actually taken, no accrual for sick leave has been made.

Net Assets/Fund Balances Net Assets Net assets in government-wide and proprietary fund financial statements are classified as invested in capital assets, net of related debt, restricted and unrestricted. Restricted net assets represent constraints on resources that are either externally imposed by creditors, grantors, contributors, laws or regulations of other governments, or imposed by law through State statutes. Fund Balances

In the governmental fund financial statements, fund balance is composed of five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent.

The governmental fund types classify fund balances as follows: Non-Spendable Fund Balance This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Prepaid Items - portion of fund balance that is not an available resource because it represents prepaid amounts, which are not spendable resources. Inventory - portion of fund balance that is not an available resource because it represents the year-end balance of ending inventories, which are not spendable resources.

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Restricted Fund Balance This classification includes amounts that are restricted to specific purposes externally imposed by creditors or imposed by law. Stabilization by State Statute – portion of fund balance that is not an available resource for appropriation in accordance with State law (G.S. 159-8(a)). Restricted for Register of Deeds – portion of fund balance that is restricted by revenue source to pay for the computer equipment and imaging technology for the Register of Deeds’ office. Restricted for General Government – portion of fund balance restricted by revenue source for general government activities. Restricted for Public Safety – portion of fund balance restricted by revenue source for public safety related activities such as police and fire. Restricted for Education – portion of fund balance restricted by revenue source for education. Restricted for Memorials – represents the portion of fund balance restricted by revenue source to construct memorials in the County. Committed Fund Balance This classification represents the portion of fund balance that can only be used for specific purposes determined by a formal action of the government's highest level of decision-making authority. The County Board of Commissioners is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken to remove or revise the limitation. Committed for General Government Capital Projects – represents the portion of fund balance committed by governing body for future capital related general government activities and projects. Committed for Economic Development – portion of fund balance that can only be used for economic development. Committed for Human Services Capital Projects – portion of fund balance that can only be used for human services.

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Committed fund balance at June 30, 2012 is as follows:

OtherGovernmental

Purpose Funds

Economic Development 56,537$ Human Services Capital Projects 17,241

General Government Capital Projects 29,390

Total 103,168$

Assigned Fund Balance

Assigned fund balance is the portion of fund balance that the County intends to use for specific purposes. The County’s governing body has the authority to assign fund balances. The Manager and Finance Officer, as granted in the officially adopted budget ordinance, have been granted limited authority to assign fund balance. Assigned for Public Safety – represents the portion of fund balance budgeted by the governing body for future public safety expenditures. Assigned for public safety was $39,178. Assigned for Abandoned Manufactured Home Removal – represents the portion of fund balance budgeted by the governing body for future abandoned home removal. Assigned for abandoned manufactured home removal was $21,484.

Unassigned Fund Balance Unassigned fund balance represents the portion of fund balance that has not been assigned to another fund or is not restricted, committed, or assigned to specific purposes within the general fund. Harnett County has a revenue spending policy that provides guidance for programs with multiple revenue sources. The Finance Officer will use resources in the following order: bond/debt proceeds, federal funds, state funds, local non-County funds, and County funds. For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first, followed in order by committed fund balance, assigned fund balance and, lastly, unassigned fund balance. The Finance Officer has the authority to deviate from this policy if it is in the best interest of the County or when required by grant or other contractual agreements. The County Board has approved a fund balance policy which strives to maintain a fund balance of 15%.

43





The following schedule provides management and citizens with information on the portion of General Fund balance that is available for appropriation. Total Fund Balance - General Fund 23,324,502$ Less:Prepaids 737,448 Inventory 10,776

Stabilization by State statute 8,789,704

Total Available Fund Balance 13,786,574$

Reclassifications Certain amounts presented in the prior year’s data have been reclassified to be consistent with the current year’s presentation. Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant areas where estimates are made are: allowance for doubtful accounts, depreciation lives, other post-employment benefits, and law enforcement officers’ pension obligations.

NOTE 2 – CASH AND INVESTMENTS

A. Deposits All of the County’s deposits are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits exceeding the federal depository insurance coverage are collateralized with securities held by the County’s agent in the County’s name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the County, these deposits are considered to be held by the County’s agent in the County’s name. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the County or the escrow agent. Because of the inability to measure the exact amount of collateral pledged for the County under the Pooling Method, the potential exists for undercollateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The County has no policy regarding custodial credit risk for deposits, but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The County complies with the provisions of G.S. 159-31 when designating official depositories and verifying that deposits are properly secured.

44




NOTE 2 – CASH AND INVESTMENTS (continued)

At June 30, 2012 the County’s deposits had a carrying amount of $29,756,823 and a bank balance of $29,761,633. Of the bank balance, $577,056 was covered by federal depository insurance and $29,184,577 was covered by collateral held under the Pooling Method. At June 30, 2012, Harnett County had $ 4,810 cash on hand.

B. Investments At June 30, 2012, the County’s investments consisted of $20,698,776 in the North Carolina Capital Management Trust’s Cash Portfolio, which carried a credit rating of AAAm by Standard and Poor’s. The County has no policy on interest rate risk or credit risk. Investments at June 30, 2012, include the following restricted amounts:

General Fund Restricted:

Harnett County COPS 2002 School 17$

Harnett County COPS 2007 101

Harnett County COPS 2009 573,906

574,024

Capital Project Funds:

Harnett County Schools QZAB Construction 1,223

Harnett County COPS 2009 Schools 463,633

464,856

Enterprise Funds:

Harnett County Public Utility Fund COPS 2003 (1994) 201,218

Harnett County Public Utility Fund COPS 2002 2

Harnett County Public Utility Fund COPS 2007 Revenue Bonds 108,617

South Central Project Funds 13,266,135

Solid Waste Fund COPS 2007 19

13,575,991

Total restricted investments 14,614,871$

45




NOTE 3 – PROPERTY TAX USE-VALUE ASSESSMENT ON CERTAIN LANDS

In accordance with the General Statutes, agriculture, horticulture, and forest land may be taxed by the County at the present-use value as opposed to market value. When the property loses its eligibility for use-value taxation, the property tax is recomputed at market value for the current year and the three preceding fiscal years, along with the accrued interest from the original due date. This tax is immediately due and payable. The following are property taxes that could become due if present use-value eligibility is lost. These amounts have not been recorded in the financial statements.

Year

Levied Tax Interest Total

2008 3,704,316$ 601,951$ 4,306,267$

2009 4,553,510 330,129 4,883,639

2010 4,586,161 332,497 4,918,658

2011 - - -

Total 12,843,987$ 1,264,577$ 14,108,564$

NOTE 4 – RECEIVABLES

Taxes and accounts receivable as of year-end are shown on the accompanying statements net of the allowance for doubtful accounts, as follows:

Allowance

for Doubtful

Fund Accounts

General 6,015,608$

Nonmajor governmental 148,311

Governmental activities 6,163,919

Public Utility 688,338

Solid Waste 145,845

Business-type activities 834,183

6,998,102$

46




NOTE 5 – DEFERRED/UNEARNED REVENUES

The balance in deferred revenues in the fund financial statements and unearned revenues in the government-wide financial statements at year-end was composed of the following elements:

Deferred Unearned

Revenues Revenues

Prepaid taxes not yet earned (General) -$ 244,195$

Prepaid taxes not yet earned (Other governmental funds) - 24,798

Accounts receivable (General) 3,869,396 -

Other (General) - 3,204

Taxes receivable, net (General) 1,674,229 -

Taxes receivable, net (Other governmental funds) 132,302 -

Unearned (Solid Waste) - 42,608

Unearned (Public Utilities) - 104,189

Total 5,675,927$ 418,994$

47




NOTE 6 – CAPITAL ASSETS

A. Governmental Capital Assets

Capital asset activity for the year ended June 30, 2012 was as follows:

Beginning Decreases Ending

Balances Increases and Transfers Balances

Governmental Activities:

Capital Assets Not Being Depreciated:

Land 2,214,535$ -$ -$ 2,214,535$

Construction in progress 25,819,429 132,251 (942,825) 25,008,855

Total capital assets not being depreciated 28,033,964 132,251 (942,825) 27,223,390

Capital Assets Being Depreciated:

Buildings 40,416,796 257,152 - 40,673,948

Land improvements 12,228,074 685,673 - 12,913,747

Furniture 100,919 - - 100,919

Equipment 4,321,088 225,982 - 4,547,070

Computer hardware 1,381,391 83,009 - 1,464,400

Computer software 2,350,927 108,761 - 2,459,688

Vehicles 6,463,918 646,340 - 7,110,258

Total capital assets being depreciated 67,263,113 2,006,917 - 69,270,030

Less Accumulated Depreciation:

Buildings 9,644,295 886,675 - 10,530,970

Land improvements 4,625,278 569,284 - 5,194,562

Furniture 77,256 2,581 - 79,837

Equipment 3,840,475 210,181 - 4,050,656

Computer hardware 1,341,746 39,032 - 1,380,778

Computer software 2,201,330 68,792 - 2,270,122

Vehicles 5,262,448 505,984 - 5,768,432

Total accumulated depreciation 26,992,828 2,282,529$ -$ 29,275,357

Total capital assets being depreciated, net 40,270,284 39,994,673

Governmental activity capital assets, net 68,304,247$ 67,218,063$

Depreciation expense was charged to functions/programs of the primary government as follows:

General government 811,562$

Public safety 794,579

Transportation 486,871

Economic and physical development 74,747

Human services 61,435

Cultural and recreational 53,335

Total 2,282,529$

48




NOTE 6 – CAPITAL ASSETS (continued)

B. Business-Type Capital Assets

Beginning Decreases Ending

Balances Increases and Transfers Balances

Business-Type Activities:

Public Utilities


Land 1,827,526$ -$ -$ 1,827,526$

Construction in progress 134,849,534 26,361,321 (26,724,783) 134,486,072

Total capital assets not being depreciated 136,677,060 26,361,321 (26,724,783) 136,313,598


Plant, distribution, and collection systems 194,168,989 17,049,137 - 211,218,126

Buildings and building improvements 101,460 14,452,824 - 14,554,285

Furniture, fixtures, and equipment 2,155,559 51,000 - 2,206,559

Vehicles 2,691,706 16,589 - 2,708,295

Total capital assets being depreciated 199,117,714 31,569,551 - 230,687,265


Plant, distribution, and collection systems 44,247,697 4,909,314 - 49,157,011

Buildings and building improvements 70,411 6,788 - 77,199


Vehicles 1,944,006 221,197 - 2,165,203

Total accumulated depreciation 48,173,583 5,248,377$ -$ 53,421,961


Public Utilities capital assets, net 287,621,191$ 313,578,903$

Solid Waste Management


Land 912,288$ -$ -$ 912,288$

Total capital assets not being depreciated 912,288 - - 912,288


Buildings and building improvements 3,031,777 - - 3,031,777

Furniture, fixtures, and equipment 2,739,135 - - 2,739,135

Vehicles 78,779 8,280 - 87,059

Total capital assets being depreciated 5,849,691 8,280 - 5,857,971


Buildings and building improvements 644,105 65,647 - 709,752


Vehicles 67,404 - - 67,404

Total accumulated depreciation 3,249,411 178,966$ -$ 3,428,377


Solid Waste Management capital assets, net 3,512,568$ 3,341,882$

49




NOTE 6 – CAPITAL ASSETS (continued)

Construction period interest expense, net of interest earned in the amount of $ 2,235,743 has been capitalized in the cost of business-type capital assets during the year ended June 30, 2012. At June 30, 2012, construction in progress for the business type activities consists of the following projects:

Project Expended

Authorization To Date

Erwin Wastewater 10,547,600$ 7,581,143$

East Central Improvements 5,127,119 4,845,640

Fort Bragg Water & WW 55,708,349 50,565,079

Water Plant Expansion 62,595,014 61,293,977

Buffalo Lakes Wastewater 2,589,367 2,528,663

SWEST NTA/Cameron Hill 4,870,404 344,353

South Central WW 1B-1 6,159,253 1,471,152

South Central WW 1B-2 6,319,152 1,217,649

Brightwater Infrastructure 3,718,541 3,347,323

South Central WW 1C-1 4,432,665 296,373

South Central WW 1C-2 4,475,318 323,859

NE Wastewater Extension 1,121,032 618,711

Campbell Osteopathic 849,530 52,150

Total 168,513,344$ 134,486,072$

Invested in Capital Assets, Net of Debt The total invested in capital assets, net of related debt at June 30, 2012 is composed of the following elements:

Total

Governmental Water/Sewer Solid Waste Business-Type

Capital assets 67,218,063$ 313,578,903$ 3,341,882$ 316,920,785$

Total debt, gross 123,258,026 77,802,792 1,885,057 79,687,849

Debt not related to capital assets 92,299,312 - - 92,299,312

Capital related unspent debt proceeds 1,038,880 13,575,972 19 13,575,991

Total capital debt 29,919,834 64,226,820 1,885,038 66,111,858

Invested in capital assets, net of related debt 37,298,229$ 249,352,083$ 1,456,844$ 250,808,927$

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51




NOTE 8 – RISK MANAGEMENT

The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County is with a guaranteed cost program with Berkley Mid Atlantic Group and VFIS. VFIS insures only Emergency Services for general liability and auto lines. Berkley Mid Atlantic Group insures County property under a blanket limit of $222,721,864. Replacement cost coverage is provided for any property losses. General Liability limits are $1,000,000 per occurrence and $2,000,000 aggregate. A $1,000,000 umbrella policy is also in place. Berkley Mid Atlantic Group covers the County for property, auto (excluding Emergency Services), general liability (excluding Emergency Services), inland marine, crime, employment practices liability, public officials liability, and law enforcement liability. Auto losses are paid under actual cash value (ACV). Crime coverage limit is $250,000. VFIS insures Emergency Services which includes EMS, Emergency Management, and Fire Marshall divisions. General Liability limits are $1,000,000 per occurrence and $3,000,000 aggregate. A $2,000,000 umbrella policy is also in place. Auto losses are paid under an agreed value plan. There have been no significant reductions in insurance coverages from previous years and settled claims have not exceeded coverage in any of the past three fiscal years. The County carries flood insurance through the National Flood Insurance Plan (NFIP). Because the County is in an area of the State that has been mapped and designated an “A” area (an area close to a river, lake, or stream) by the Federal Emergency Management Agency, the County is eligible to purchase coverage of $500,000 per structure through the NFIP. The County is also eligible to and has purchased commercial flood insurance for another $500,000 of coverage per structure.

In accordance with G.S. 159-29, the County’s employees that have access to $100 or more at any given time of the County’s funds are performance bonded through a commercial surety bond. The Director of Finance and the Tax Collector are individually bonded for $200,000. The Register of Deeds is bonded for $10,000. The remaining employees that have access to funds are bonded under a blanket bond for $250,000.

The County is self-insured for workers’ compensation up to $600,000 per loss. Excess coverage is through Safety National with limits in accordance with current North Carolina workers’ compensation statutes. Safety National also provides employers' liability with limits of $1,000,000.

The County uses a third party administrator to process workers’ compensation. At June 30, 2012, a liability for claims of $1,928,617 is included on the accompanying Statement of Net Assets for governmental activities. An analysis for the County is presented below:

2012 2011

Liability as of beginning of the year 1,758,347$ 2,520,627$

Current year claims and changes

in estimates 684,165 320,192

Actual claim payments (513,895) (1,082,472)

Liability as of end of the year 1,928,617$ 1,758,347$

June 30,

52




NOTE 9 – CAPITAL LEASE OBLIGATIONS

The County has entered into agreements to lease certain equipment. At June 30, 2012, the original cost of equipment under these leases is approximately $975,230. Title passes to the County at the end of the

lease term. These agreements are in substance lease-purchases.

Original Interest Final

Issue Rate Maturity Governmental Business-Type

Capitalized Lease Obligations:

Ambulances 215,378$ 3.17% March 2014 80,525$ -$

"Firehouse" EMS Software 143,959 3.28% January 2013 18,317 -

Ambulances 213,908 2.80% March 2013 34,024 -

Musco Lighting System 72,500 4.24% July 2012 15,515 -

Sheriff's Dept Vehicle Lease 249,485 1.97% November 2014 208,916 -

EMS Conversion Van & Chassis 80,000 2.07% June 2015 80,000 -

Total 975,230$ 437,297$ -$

Amount Outstanding

The following is a schedule of minimum future payments required under capital lease obligations:

Year Ending Future Payments

2013 230,315$

2014 149,351

2015 70,804

Total minimum lease payments 450,470

Less amount representing interest (13,173)

Present value of the minimum lease payments 437,297$

At June 30, 2012, the net book value of capital assets (cost and accumulated depreciation) associated with leases is $ 576,435.

53




NOTE 10 – LONG-TERM OBLIGATIONS

Installment purchases financed by the governmental funds are repaid from the resources of the General Fund. The installment purchases, general obligation bonds, state bonds, and revenue bonds issued to finance the construction of facilities utilized in the operations of the water and sewer system and which are being retired by resources from users are reported as long-term debt in the enterprise funds. All bonds are collateralized by the full faith credit and taxing power of the district in which the obligations originate. Principal and interest requirements are appropriated when due.

Date Issue Rate Maturity Governmental Business-Type

Installment Purchase Agreements:

Agriculture Center January 2005 2,845,000$ 3.39% June 2020 1,820,690$ -$ COPS 2003 (Refinanced 1994 COPS) July 2003 2%-5% October 2013

50% Southwest Regional

Construction of Waterlines 1,170,600 - 307,500

50% Water Plant 2,184,600 - 307,500 COPS 2011 Refunding (2002) 2.535%

97% Construction of School Facilities November 2011 24,033,690 December 2023 24,033,690 - 3% Public Utilities Projects 743,310 December 2023 - 743,310

COPS 2007 May 2007 4%-5% December 202753% Jail Facility 23,220,225 21,885,728 - 42% Construction of School Facilities 18,279,775 17,229,215 - 5% Solid Waste Transfer Station 2,000,000 - 1,885,058 Partial Refunding of COPS 2000 4,765,000 4,765,000 -

COPS 2009School Construction February 2009 35,075,000 3%-5% June 2029 32,075,000 -

2010 Refinancing November 2010 3.35% June 2028 COPS 2000 (Courthouse) 3,943,420 2,028,840 - COPS 2000 (School Construction) 2,855,580 1,469,160 - Angier Elementary School 14,004,000 12,527,000 - Qualified Zone Academy Bonds May 2004 4,000,000 0.00% May 2020 2,417,681 - Qualified Zone Academy Bonds October 2005 789,500 0.00% October 2021 546,266 - Harnett County Installment Purchase

Wellons Buyout December 1999 4,675,000 5.30% December 2014 - 935,000 Harnett County Installment Purchase

Davis Tract November 2005 1,500,000 3.54% October 2015 - 600,000 Harnett County Installment Purchase

Sanitary Sewer Hwy 87 June 2004 2,100,000 4.51% June 2019 - 980,000

148,184,700$ 120,798,270$ 5,758,368$

54




NOTE 10 – LONG-TERM OBLIGATIONS (continued)

General Obligation Bonds:

All general obligation bonds issued by the County’s water and sewer districts are to fund the acquisition and construction of major capital facilities. The County entered into an agreement during the fiscal year 1998, with each existing District, that transferred all assets, liabilities (excluding bond indebtedness, loans, and installment notes) operational rights, and responsibilities to the County. As such, general obligation bonds are direct obligations and pledge full faith and credit of the District which the County has entered into a contractual agreement to pay.

Issue Original Interest Final

Date Issue Rate Maturity Governmental Business-Type

General Obligation Bonds:

South Central Refunding May 2004 2,625,000$ 2.5%-5.25% June 2028 -$ 1,540,224$

South Central Sanitary Sewer 2009 A June 2009 6,753,000 4.25% June 2049 - 6,677,000

South Central Sanitary Sewer 2009 B June 2009 3,000,000 4.38% June 2049 - 2,966,000

South Central BANS 2012 January 2012 13,211,000 1.00% October 2012 - 13,211,000

Bunnlevel/Riverside Refunding May 2004 170,000 2.5%-5.25% June 2028 - 99,776

West Central Refunding May 2004 2,305,000 2.5%-5.25% June 2028 - 1,710,000

Northwest Refunding May 2004 1,375,000 2.5%-5.25% June 2028 - 995,000

Northwest Phase II Water Bonds October 1997 995,000 5.30% June 2016 - 315,000

Southwest Refunding May 2004 3,790,000 2.5%-5.25% June 2028 - 2,685,000

Southeast Water Bonds December 1993 1,482,000 5.13% June 2033 - 1,090,000

East Central Water Bonds Series A October 1995 3,608,000 5.13% June 2035 - 2,823,000

East Central Water Bonds Series B October 1995 172,000 5.25% June 2035 - 137,000

Riverside Water Bonds Series A July 2001 940,000 4.76% June 2041 - 823,000

Riverside Water Bonds Series A July 2001 254,000 4.88% June 2041 - 225,000

Total 40,680,000$ -$ 35,297,000$

Amount Outstanding

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The f

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sum

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of

changes in lon

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or

the y

ear

en

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June 3

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:

Du

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ess

Ju

ly 1

, 2011

Ad

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sD

ecre

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Ju

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2012

Th

an

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Go

vern

men

tal

Acti

vit

ies:

Capita

lized le

ase

s299,7

73

$

329,4

85

$

191,9

61

$

437,2

97

$

221,7

86

$

Inst

allm

ent

purc

hase

agre

em

ents

126,2

24,4

56

24,0

33,6

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29,4

59,8

77

120,7

98,2

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6,2

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Pre

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m2,5

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247,2

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57,2

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247,2

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ss d

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129,0

28,7

54

24,3

63,1

75

29,8

99,1

33

123,4

92,7

96

6,6

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Less

: L

oss

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efe

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nce

(420,6

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-

(185,9

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(2

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(185,9

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Tota

l debt

128,6

08,0

64

24,3

63,1

75

29,7

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13

123,2

58,0

26

6,4

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Com

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s2,4

30,7

86

1,8

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547,9

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31,9

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6,8

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743,3

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$

1,8

43,7

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$

5,7

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$

1,0

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m638,9

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29

99,5

98

590,5

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69

Genera

l oblig

atio

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23,0

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13,2

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927,0

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: L

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509

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62,3

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86

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24,8

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4,7

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Acc

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s1,8

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237,8

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Com

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bse

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s563,1

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494,3

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468,2

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589,2

93

468,2

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s628,7

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221,2

16

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819,3

31

-

Tota

l 65,3

66,6

24

$

715,5

76

$

5,4

39,6

89

$

82,6

67,3

17

$

17,8

56,6

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$

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HA

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Pri

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Inte

rest

Pri

ncip

al

Inte

rest

Pri

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al

Inte

rest

Pri

ncip

al

Inte

rest

Pri

ncip

al

Inte

rest

Pri

ncip

al

Inte

rest

Go

vern

men

tal A

cti

vit

ies:

2013

6,2

02,2

28

$

4,5

74,0

67

$

-$

-$

221,7

86

$

8,5

29

$

-$

-$

-$

-$

6,4

24,0

13.4

3$

4,5

82,5

96.6

8$

2014

7,9

86,2

62

4,3

84,1

58

-

-

145,6

90

3,6

61

-

-

-

-

8,1

31,9

52

4,3

87,8

19

2015

8,4

06,9

73

4,1

19,9

68

-

-

69,8

21

983

-

-

-

-

8,4

76,7

95

4,1

20,9

51

2016

8,9

20,7

26

3,7

89,7

88

-

-

-

-

-

-

-

-

8,9

20,7

26

3,7

89,7

88

2017-2

021

42,3

27,1

00

14,2

86,3

78

-

-

-

-

-

-

-

-

42,3

27,1

00

14,2

86,3

78

2022-2

026

33,6

91,2

33

6,9

57,6

32

-

-

-

-

-

-

-

-

33,6

91,2

33

6,9

57,6

32

2027-2

031

13,2

63,7

47

991,1

08

-

-

-

-

-

-

-

-

13,2

63,7

47

991,1

08

Tota

l gove

rnm

enta

l act

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es

120,7

98,2

69

39,1

03,0

99

-

-

437,2

97

13,1

73

-

-

-

-

121,2

35,5

66

39,1

16,2

73

Bu

sin

ess-T

ype A

cti

vit

ies:

2013

1,0

02,3

54

226,3

78

14,0

54,0

00

1,1

29,5

38

-

-

565,0

00

591,4

38

1,5

18,1

03

532,5

00

17,1

39,4

57

2,4

79,8

53

2014

1,0

56,3

19

183,9

78

705,0

00

996,1

91

-

-

590,0

00

568,8

38

1,8

55,7

25

640,4

23

4,2

07,0

45

2,3

89,4

29

2015

771,6

08

144,9

03

717,5

00

964,7

21

-

-

615,0

00

545,2

38

1,8

55,7

25

536,1

37

3,9

59,8

34

2,1

90,9

98

2016

483,1

90

117,7

40

744,5

00

932,2

91

-

-

635,0

00

520,6

38

1,8

55,7

25

483,2

14

3,7

18,4

15

2,0

53,8

82

2017-2

021

1,3

79,4

62

364,1

18

3,7

55,0

00

4,1

23,3

08

-

-

3,6

50,0

00

2,1

36,7

63

7,3

20,5

82

1,8

03,2

20

16,1

05,0

43

8,4

27,4

08

2022-2

026

811,1

82

148,0

06

4,3

64,0

00

3,1

31,6

75

-

-

4,5

80,0

00

1,2

11,4

38

6,6

46,0

35

981,0

34

16,4

01,2

17

5,4

72,1

53

2027-2

031

254,2

53

12,7

13

3,3

35,0

00

2,0

89,2

18

-

-

2,1

70,0

00

147,9

75

3,5

93,4

04

328,5

05

9,3

52,6

57

2,5

78,4

11

2032-2

036

-

-

2,3

21,0

00

1,4

45,5

59

-

-

-

-

906,3

03

30,6

51

3,2

27,3

03

1,4

76,2

09

2037-2

041

-

-

1,9

77,0

00

977,3

03

-

-

-

-

-

-

1,9

77,0

00

977,3

03

2042-2

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-

-

2,0

80,0

00

540,2

53

-

-

-

-

-

-

2,0

80,0

00

540,2

53

2047-2

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-

-

1,2

44,0

00

103,2

78

-

-

-

-

-

-

1,2

44,0

00

103,2

78

Tota

l busi

ness

-typ

e a

ctiv

ities

5,7

58,3

67

1,1

97,8

36

35,2

97,0

00

16,4

33,3

33

-

-

12,8

05,0

00

5,7

22,3

25

25,5

51,6

02

5,3

35,6

82

79,4

11,9

69

28,6

89,1

76

126,5

56,6

37

$

40,3

00,9

36

$

35,2

97,0

00

$

16,4

33,3

33

$

437,2

97

$

13,1

73

$

12,8

05,0

00

$

5,7

22,3

25

$

25,5

51,6

02

$

5,3

35,6

82

$

200,6

47,5

35

$

67,8

05,4

48

$

To

tal D

eb

t D

ue

Insta

llm

en

t P

urc

hase

Gen

era

l O

blig

ati

on

Bo

nd

sC

ap

italize

d L

eases

Reven

ue B

on

ds

Sta

te B

on

d L

oan

58





At June 30, 2012, Harnett County had bonds authorized but unissued in the amount of $22,494,000 for the South Central Water and Sewer District. The County is subject to the Local Government Bond Act of North Carolina, which limits the amount of net bonded debt the County may have outstanding to eight percent of the appraised value of property subject to taxation. At June 30, 2012, such statutory limit for the County was $ 574,421,868 providing a legal debt margin of approximately $421,876,331. As of June 30, 2012 the County was in compliance with covenants associated with its debt. Compensated absences, net pension obligation, and OPEB liability typically have been liquidated in the General Fund. Compensated absences are accounted for on a last in, first out basis, assuming that employees are taking leave time as it is earned. In prior years, the County has defeased various bond issues by creating separate irrevocable trust funds. New debt has been issued and the proceeds have been used to purchase U.S. government securities that were placed in the trust funds. The investments and related fixed earnings are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and, therefore, removed from the County’s liabilities. As of June 30, 2012, the amount of prior year defeased debt outstanding and removed from the County’s liabilities amounted to $30,855,000. On November 15, 2011, the County entered into an installment financing contract in the amount of $24,777,000 to provide resources to purchase U.S. Government securities that were placed in an irrevocable trust for the purpose of refunding the Certificate of Participation, Series 2002. The investments and related fixed earnings are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and, therefore, removed from the County's liabilities. Gains and losses from debt refundings must be deferred and amortized over the lesser of the original remaining life of the old debt or the life of the new debt. In addition, gains or losses related to the debt refundings are to be used in determining the carrying value of the new debt issued to finance debt refundings. The carrying value of the certificates of participation and general obligation bonds have been adjusted for the loss from defeasance (net of amortization) of $748,591 and $247,295, respectively. The County has pledged future water and sewer customer revenues, net of specified operating expenses, to repay $15,310,000 in enterprise system revenue bonds issued on May 23, 2007. Proceeds from the bonds provided financing for extensions, additions and capital improvements to, or the renewal and replacement of capital assets of, or purchasing and installing new equipment for, the enterprise systems. The bonds are payable only from water and sewer customer net revenues and are payable through 2028. The total principal and interest remaining to be paid on the bonds is $18,527,325. Principal and interest paid for the current year and total customer revenues were $1,038,638 and $26,785,775, respectively.

59





Revenue Bonds The County issues bonds where it pledges income derived from the acquired or constructed assets to pay debt service. The revenue bonds outstanding are being retired by the resources of the Water and Sewer Fund. Revenue bonds outstanding at year-end are as follows:

$13,235,000 Public Utilities Revenue Bonds, Series 2007A (Tax Exempt),

interest only payments of $304,319 due semi-annually until May 2012,

followed by semi-annual payments of principal and interest due in

amounts ranging from $23,744 to $1,133,744 through May 2028, interest

rate varying between 4.00% and 5.00% 12,805,000$

Total 12,805,000$

Annual debt service requirements to maturity for business-type revenue bonds are as follows:

Year Ending

June 30 Principal Interest Total

2013 565,000$ 591,438$ 1,156,438$

2014 590,000 568,838 1,158,838

2015 615,000 545,238 1,160,238

2016 635,000 520,638 1,155,638

2017-2021 3,650,000 2,136,763 5,786,763

2022-2026 4,580,000 1,211,438 5,791,438

2027-2031 2,170,000 147,975 2,317,975

Total 12,805,000$ 5,722,325$ 18,527,325$

The County has been in compliance with the covenants as to rates, fees, rentals, and charges in Section 6.6 of the Bond Order, authorizing the issuance of the Water and Sewer Revenue Bonds, Series 2007A (Tax Exempt), 2007B (Taxable) since their adoption. Section 6.6 of the Bond Order requires that rates and charges will produce (a) Revenues which together with 20% of the balance in the Surplus Account at the end of the preceding Fiscal Year at least equal in such Fiscal Year to the total of (i) the Operating Expenses budgeted for such Fiscal Year, as may be amended from time to time, plus (ii) 120% of the Principal and Interest Requirements on the Bonds to become due during that Fiscal Year plus (iii) 100% of the Principal and Interest Requirements on General Obligation Indebtedness and Subordinate Indebtedness to become due in such Fiscal Year plus (iv) 100% of the Principal and Interest on Other Indebtedness to become due in such Fiscal Year plus (v) 100% of the amount required to reimburse the provider of a Qualified Reserve Fund Substitute for any amounts owing hereunder and (b) Revenues at least equal in such Fiscal Year to the total of (i) the Operating Expenses budgeted for such Fiscal Year, as may be amended from time to time, plus (ii) 100% of the Principal and Interest Requirements on the Bonds to become due during that Fiscal Year plus (iii) 100% of the Principal and Interest Requirements on

60





General Obligation Indebtedness and Subordinate Indebtedness to become due in such Fiscal Year plus (iv) 100% of the Principal and Interest Requirements on Other Indebtedness to become due in such Fiscal Year plus (v) 100% of the amount required to reimburse the provider of a Qualified Reserve Fund Substitute for any amounts owing hereunder. The debt service coverage calculation for the year ended June 30, 2012 is as follows:

Operating revenues 30,130,929$

Operations and maintenance expenses (13,615,380)

Operating income before depreciation & amortization 16,515,549

Less:

Depreciation and amortization expense (5,248,377)

Operating income 11,267,172

Non-operating revenues 6,146

Non-operating expenses (4,583,046)

Net income 6,690,272$

Determination of income available for debt service

Net income 6,690,272$

Adjustments:

Depreciation and amortization (5,248,377)

Bond interest expense 4,583,046

Bond service expense 4,702,944

Income available for debt service 10,727,885

20% of unrestricted net assets 4,001,515

Income available for debt service plus

20% of unrestricted net assets 14,729,400$

61





Debt Service Requirements and Coverage

Parity debt service:

Revenue bonds 1,156,438$

Debt service coverage - Parity indebtedness 12.737

Revenue bond covenant requirement 1.200

Other indebtedness:

Installment purchases 1,228,732$

State bond loans 2,050,603

Sum of parity and GO debt service 4,435,773$

Debt service coverage - Sum of parity and

system GO indebtedness 2.418

Revenue bond covenant requirement 1.000

NOTE 11 – PENSION PLAN OBLIGATIONS

A. Multiple-Employer Plans Plan Description

Local Governmental Employees’ Retirement System All regular full-time employees participate in the statewide Local Governmental Employee’s Retirement System (the “System”), a multiple-employer, cost-sharing, defined benefit pension plan administered by the State of North Carolina. The System provides retirement and disability benefits to plan members and beneficiaries. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the NC General Assembly. The System is included in the Comprehensive Annual Financial Report (“CAFR”) for the State of North Carolina. The State’s CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of State Controller, 1410 Mail Service Center, Raleigh, NC 27699-1410, or by calling (919) 981-5454.

62




NOTE 11 – PENSION PLAN OBLIGATIONS (continued)

B. Single-Employer Plan Law Enforcement Officers’ Special Separation Allowance 1. Plan Description The County administers a public employee retirement system (the “Separation Allowance”), a single-employer; defined benefit pension plan that provides retirement benefits to the County’s qualified sworn law enforcement officers. The Separation Allowance is equal to .85% of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of credible service. The retirement benefits are not subject to any increase in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. All full-time County law enforcement officers are covered by the Separation Allowance. At December 31, 2011, the Separation Allowance’s membership consisted of:

Retirees receiving benefits 6 Terminated plan members entitledto, but not yet receiving, benefits - Active plan members 111

Total 117

A separate report was not issued for the plan.

2. Summary of Significant Accounting Policies

Basis of Accounting The County has chosen to fund the Separation Allowance on a “pay-as-you-go” basis. Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. Method Used to Value Investments No funds are set aside to pay benefits and administrative costs. These expenditures are paid as they come due. 3. Contributions The County is required by Article 12D of G.S. Chapter 143 to provide these retirement benefits and has chosen to fund the benefit payments on a pay-as-you-go basis through appropriations made in the General Fund operating budget. The County’s obligation to contribute to this plan is established and may be amended by the North Carolina General Assembly. There were no contributions made by employees.

63





The annual required contribution for the fiscal year ended June 30, 2012 was determined as part of the December 31, 2010 actuarial valuation using the projected unit credit actuarial cost method. The actuarial assumptions included (a) 5.00% investment rate of return (net of administrative expenses) and (b) projected salary increases of 4.25% to 7.85% per year. The inflation component was 3.00%. The assumptions do not include post-retirement benefit increases. The actuarial value of assets was market value. The unfunded actuarial accrued liability is being amortized as a level of percentage of pay on a closed basis. The remaining amortization period at December 31, 2010 was 20 years.

Annual Pension Cost and Net Pension Obligation The County’s annual pension cost and net pension obligation to the Separation Allowance for the current year were as follows:

Employer annual required contribution 162,421$

Interest on net pension obligation 27,400

Adjustment to annual required contribution (32,691)

Annual pension cost 157,130

Contributions made 87,879

Increase in net pension obligation 69,251

Net pension obligation:

Beginning of year - July 1 547,999

End of year - June 30 617,250$

Annual Percentage Net Pension

Year Ended Pension of APC Obligation

June 30 Cost (APC) Contributed End of Year

6/30/2010 123,737$ 70.74% 478,168$

6/30/2011 157,710 55.72% 547,999

6/30/2012 157,130 55.93% 617,250

Three-Year Trend Information

4. Funded Status and Funding Progress

As of December 31, 2011, the most recent actuarial valuation date, the plan was not funded. The actuarial accrued liability for benefits and the unfunded actuarial accrued liability (UAAL) was $1,376,768. The covered payroll (annual payroll of active employees covered by the plan) was $4,770,805 and the ratio of the UAAL to the covered payroll was 28.86%. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefit.

64





C. Supplemental Retirement Income Plan for Law Enforcement Officers Plan Description The County contributes to the Supplemental Retirement Income Plan (“The Plan”), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan provides retirement benefits to law enforcement officers employed by the County. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes pension trust fund financial statements for the Internal Revenue Code Section 401 (k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.

Funding Policy

Article 12E of G.S. Chapter 143 requires the County to contribute each month, an amount equal to 5% of each officer’s salary, and all amounts contributed are vested immediately. Also, the law enforcement officers may make voluntary contributions to the plan. Contributions for the year ended June 30, 2012 were $330,211 which consisted of $ 236,363 from the County and $93,848 from the law enforcement officers.

D. Supplemental Retirement Income Plan

Plan Description The County administers a supplemental retirement benefit plan for all of its full-time employees that are not involved with law enforcement, through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The County does not match the employee’s contribution. All contributed amounts plus investment earnings allocated to the employee’s accounts are fully vested immediately. The County established the plan and may amend it at its discretion. Total voluntary contributions by covered employees were $ 688,766.

Funding Policy

On a monthly basis, the County remits to the department of State Treasurer, an amount equal to one and one-half percent (1.5%) of the monthly receipts collected pursuant to Article 3 of G.S. 161. Immediately following January 1 of each year, the Department of State Treasurer divides ninety-three percent (93%) of the amount in the Fund at the end of the preceding calendar year into equal shares to be disbursed as monthly benefits. The remaining seven percent (7%) of the Fund’s assets may be used by the State Treasurer in administering the Fund. For the fiscal year ended June 30, 2012, the County’s required and actual contributions were $10,899.

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E. Other Post-Employment Benefits Plan Description At retirement all employees have the option to purchase basic medical insurance at the County’s group rate. Under the terms of a County resolution, the County administers a single-employer defined benefit Health Care Benefits (HCB) Plan. This plan provides post-employment healthcare benefits to retirees of the County, provided they participate in the North Carolina Local Governmental Employees Retirement System, have at least fifteen years of creditable service with the County, and are actively employed with the County at the time of retirement. The County is fully insured for Health Insurance through Blue Cross Blue Shield. The entire cost for individual only coverage is paid by the County for those employees, until age 65, who retire with 30 years of service. Those employees who retire with less than 30 years of service with the County receive benefits on a prorated basis. A separate report is not issued for the plan. Membership of the HCB Plan consisted of the following as December 31, 2010 the date of the latest actuarial valuation:

Retirees Members 96 General Employees 738 Law Enforcement Members 112

Total 946

Funding Policy Currently, the County pays the individual portion of the Health Care Benefits Plan on active employees. Retirees not eligible for Medicare are enrolled in the same plan as active County employees. Retirees may be eligible to participate in the County’s Group Health Plan until they reach age 65 or become Medicare eligible. At age 65, or Medicare eligible, retirees may then receive reimbursement up to the $200 monthly maximum for their individual Medicare Supplement. The Board of Commissioners has established the contribution requirements of the plan and may amend the plan. The County has chosen to fund the healthcare benefits on a pay-as-you-go basis. For the fiscal year ended June 30, 2012, the County made payments for post-retirement health benefit premiums of $537,082. The current annual required contribution (ARC) rate is 5.72% of annual covered payroll. Summary of Significant Accounting Policies Post-employment expenditures are made from the operating budget which is maintained on the modified accrual basis of accounting. These expenditures are paid as they come due. Annual OPEB Cost and Net OPEB Obligation - The County’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in the accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to cover normal cost each year and amortize any unfunded actuarial liabilities or funding excess over a period not to exceed thirty years.

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The following table shows the components of the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the County’s net OPEB obligation for the healthcare benefits:

Annual required contribution 1,932,968$ Interest on net pension obligation 183,183

Adjustment to annual required contribution (174,996)

Annual OPEB cost 1,941,155

Contributions made 537,082

Increase in net OPEB obligation 1,404,073

Net OPEB obligation, beginning of year 4,579,557

Net OPEB obligation, end of year 5,983,630$

The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012:

Annual Percentage of NetFor Year Ended OPEB Annual OPEB Pension

June 30 Cost Cost Contributed Obligation

2009 1,756,329$ 10.14% 1,578,274$ 2010 1,872,656 17.00% 3,130,647 2011 1,948,477 25.60% 4,579,557 2012 1,941,155 27.67% 5,983,630

Funding Status and Funding Progress As of December 31, 2010, the most recent actuarial valuation date, the plan was not funded. The actuarial accrued liability for benefits and, thus, the unfunded actuarial accrued liability (UAAL) was $19,467,163. The covered payroll (annual payroll of active employees covered by the plan) was $33,178,627 and the ratio of the UAAL to the covered payroll was 58.70%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about the future employment, mortality, and healthcare trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

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Actuarial Methods and Assumptions - Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the type of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members at that point. Costs were determined using the Projected Unit Credit Actuarial Cost Method. The annual service cost is the present value of the portion of the projected benefit attributable to participation service during the upcoming year, and the accumulated postretirement benefit obligation (APBO) is equal to the present value of the portion The actuarial methods and assumptions used include techniques that are designed to reduce the effects of the short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the December 31, 2010 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.00% investment rate of return (net of administrative expenses), which is the expected long-term investment returns on the employer’s own investments calculated based on the funded level of the plan at the valuation date, and an annual medical cost trend increase of 10.50% - 5.00% annually. Both rates included a 3.00% inflation assumption. The actuarial value of the assets, if any, was determined using techniques that spread the effects of short term volatility in the market value of investments over a 5-year period. The UAAL is amortized as level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2010 was 30 years.

F. Other Employment Benefits The County has elected to provide death benefits to employees through the Death Benefit Plan for members of the Local Governmental Employees’ Retirement System (Death Benefit Plan), a multiple-employer, State-administered, cost-sharing plan funded on a one-year term cost basis. The beneficiaries of those employees who die in active service after one year of contributing membership in the System, or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. The employee’s beneficiary will receive a lump sum payment equal to the employee’s highest twelve (12) months’ consecutive salary during the preceding twenty-four (24) months, but no less than $25,000 and not to exceed $50,000. All death benefit payments are made from the Death Benefit Plan. The County has no Liability beyond the payment of monthly contributions. Contributions are determined as a percentage of monthly payroll, based upon rates established annually by the State. Separate rates are set for employees not engaged in law enforcement and for law enforcement officers. Because the benefit payments are made by the Death Benefit Plan and not by the County, the County does not determine the number of eligible participants. For the fiscal year ended June 30, 2012, the County made contributions to the State for death benefits of $33,986. The County’s required contributions for employees not engaged in law enforcement and for law enforcement officers represented .08% and .14% of covered payroll, respectively. The contributions to the Death Benefit Plan cannot be separated between the post-employment benefit amount and the other benefit amount.

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NOTE 12 – CLOSURE AND POSTCLOSURE CARE COSTS - DUNN-ERWIN SOLID WASTE LANDFILL

State and federal laws and regulations require the County to close, or in other words, place a final protective containment cover on each phase of the landfill at both the Dunn-Erwin Solid Waste Facility and the Anderson Creek Solid Waste Facility when each phase of the landfills stop accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after closure. Although a majority of closure costs will be paid near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and post-closure care costs as an operating expense in each period based on landfill capacity used and phases that have been closed as of each financial statement date. Post-closure care costs begin immediately upon each phase closure and per State and Federal regulations; post-closure care must be maintained for a minimum of a 30-year timeframe after closure. Expenditures of $237,861 have been applied to the liability during the current fiscal year. The $1,570,845 post-closure care liability at June 30, 2012 represents a cumulative amount reported to date based on the use of 100% of the total estimated capacity of the landfill. The County closed the Municipal Solid Waste (MSW) cell at Dunn-Erwin Solid Waste Landfill on January 1, 1998, with other phases being closed previous to that date at both Dunn-Erwin and the Anderson Creek Solid Waste Facilities. These amounts are based on what it would cost to perform all closure and post-closure care in 2012. Actual costs may be higher due to inflation, changes in technology, changes in regulations, or changes in landfill capacity.

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Commitments The County had Commitments under uncompleted construction contracts in the Enterprise Fund totaling $34,407,805 and in the Governmental Funds totaling $2,147,463 at June 30, 2012.

Arbitrage The arbitrage rebate payments are due on the fifth anniversary of the bond issue date. It is management’s belief that the County’s future rebate liability, if any, will be immaterial and, therefore, no liability has been recorded. The County reviews its potential liability for the penalty annually. It is management’s belief that no additional arbitrage rebate will be payable.

Claims and Judgments At June 30, 2012, the County was a defendant in various lawsuits. In the opinion of the County’s management and the County attorney, the ultimate outcome of these legal matters will not have a material adverse effect on the County’s financial position. Federal and State-Assisted Programs The County has received proceeds from several federal and State awards. Periodic audits of these awards are required and certain costs may be questioned as not being appropriate expenditures under the award agreements. Such audits could result in the refund of award monies to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of award monies.

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NOTE 14 – INTERFUND BALANCES AND ACTIVITIES

Transfers in (out) for the year ended June 30, 2012 are summarized below:

From the General Fund to the Solid Waste Fund to fund engineering fees 8,360$

From the General Fund to the Airport Capital Projects for the County's contribution to the project 36,667

From the General Fund to the ARRA Fund to supplement other funding sources 135

From the General Fund to the Brightwater Project for the County's contribution to the project 85,616

From the General Fund to the Concealed Weapon Fund for fees deposited in prior years in error 5,174

Total transfers out from the General Fund 135,952

From the COPS 2009 Capital Projects to the General Fund to cover debt payments 3,195,226

From the Law Enforcement Expansion and Barbecue Creek Parks Projects to the

General Fund for residual equity transfer 82,972

From the Floodplain Mapping Fund to the General Fund. These funds are no longer

required to be kept in a separate fund. 12,720.00

From the Emergency Response Planning Fund to the General Fund to supplement other

funding sources 25,000

Total transfers out from Nonmajor Governmental Funds 3,315,918

From the Public Utilities Fund to the Water & Sewer District Funds to

cover debt service (Northeast Metro, Buies Creek/Coats, South Central

West Central, Northwest, Southwest, Bunnlevel/Riverside, Southeast,

East Central, and Riverside Water & Sewer Districts) 2,529,657

From Public Utilities to the General Fund for economic development and for professional

services. 406,000

From the Public Utilities Fund to the Northeast Wastewater Expansion Project Fund

for project costs. 1,121,032

From the Public Utilities Fund to the South Central Wastewater Project Fund for

project costs. 813,490

From the Public Utilities Projects to the Public Utilities Fund for residual equity. 34,127

From the Public Utilities Fund to the Wastewater Masterplan Project Fund for

project costs. 40,709

Total transfers out from the Enterprise Funds 4,945,015

Total 8,396,885$

Transfers between the major funds and other nonmajor governmental were primarily to support the capital projects, the debt service within the districts and the operations of the funds.

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NOTE 14 – INTERFUND BALANCES AND ACTIVITIES (continued)

Interfund balances at June 30, 2012, consist of the following:

Due to the General Fund from:

Nonmajor Governmental Funds:

Scattered Site Housing 2011 Capital Project to supplement other funding

sources 363$

Airport SWPP/SPCC Capital Project to supplement other funding sources 4,000

Single Family SFR Housing Capital Project to supplement other funding sources 22,740

Public Utilities to prepay group health insurance 156,000

Solid Waste to prepay group health insurance 5,000

Total due to the General Fund 188,103

Due to the Emergency Response Planning Fund from the WIA

Youth Program Fund and the AMPI Unrecoverable Cost Fund

for deficit cash 50,600

Due to the Law Enforcement Expansion Capital Project from:

General Fund for the payment of debt service 429,645

Total due to a nonmajor Governmental Fund 429,645

Due to the Public Utilities Enterprise from:

Water Plant Expansion Project 1,308,258

Brightwater Project 234,000

South Central Wastewater 1B-1 Project 1,243,000

South Central Wastewater 1B-2 Project 1,005,000

South Central Wastewater 1C-1 Project 292,000

South Central Wastewater 1C-2 Project 243,695

Total due to the Public Utilities Enterprise Fund 4,325,953

Total all funds 4,994,301$

The balances above are advances from the General and Public Utilities Fund. Grant funds have been requested to repay the General Fund. Capital project advances will be repaid from grant and project revenues. Advances to enterprise funds will be repaid from receipts.

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NOTE 15 – JOINT VENTURES

The County, in conjunction with seven other counties, participates in the Sandhills Center for Mental Health, Developmental Disabilities & Substance Abuse Services, an Area Authority/Local Management Entity. Harnett County appoints four members to the 26-member Board. The Authority is a joint venture established to provide the participating counties with legally mandated mental health services. The County has an ongoing financial responsibility for the Authority because the Authority’s continued existence depends on the participating governments’ continued funding. The County contributed $ 199,679 to the Authority during the fiscal year ended June 30, 2012. Neither of the participating governments has any equity interest in the Authority, so no equity interest has been reflected in the financial statements at June 30, 2012. Complete financial statements for the Sandhills Center can be obtained from their administrative office at 1120 Seven Lakes Drive or P.O. Box 9, West End, North Carolina 27376. The County, in conjunction with the State of North Carolina, Lee County, Chatham County, and the Lee County Board of Education, participates in a joint venture to operate Central Carolina Community College. The County appoints two members of the 17-member Board of Trustees of the community college. The president of the community college’s student government association serves as a non-voting, ex-officio member of the Board of Trustees. The County has the basic responsibility for providing funding for the Harnett County facilities of the community college and also provides some financial support for the community college’s operations. The County has an ongoing financial responsibility for the community college because of the statutory responsibilities to provide funding for the community college’s Harnett County facilities. The County contributed $682,071 to the community college for operating purposes during the fiscal year ended June 30, 2012. The participating governments do not have any equity interest in the joint venture; therefore, no equity interest has been reflected in the County’s financial statements at June 30, 2012. Complete financial statements for the community college may be obtained from the community college’s administrative offices at 1105 Kelly Drive, Sanford, North Carolina 27330. The County, in conjunction with the City of Dunn and the Dunn Area Chamber of Commerce, participates in the Averasboro Township Tourism Development Authority. The Authority is a joint venture established to receive the net proceeds of the room occupancy and tourism development tax levied in Averasboro Township in Harnett County. The Authority may spend these proceeds to develop, promote, and advertise travel and tourism in Averasboro Township, to sponsor tourist-oriented events and activities for Averasboro Township, to operate and maintain museums and historic sites throughout Averasboro Township, and to purchase, operate, and maintain a convention facility for Averasboro Township. The County appoints two members to the seven-member Board. The County has an ongoing financial responsibility for the Authority because the Authority’s continued existence depends on the participating governments’ continued funding. The County remitted $420,565 to the Authority during the fiscal year ended June 30, 2012. Neither of the participants has any equity interest in the Authority, so no equity interest has been reflected in the financial statements at June 30, 2012. Complete financial statements for the Authority can be obtained from the Dunn Area Chamber of Commerce at 209 West Divine Street, Post Office Box 548, and Dunn, North Carolina 28335.

NOTE 16 – JOINTLY GOVERNED ORGANIZATION

The County, in conjunction with two other counties and twenty municipalities, established the Mid-Carolina Council of Governments (Council). The participating governments established the Council to coordinate various funding received from federal and State agencies. Each participating government appoints one member to the Council’s governing board. The County paid membership fees of $24,693 to the Council during fiscal year ended June 30, 2012.

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NOTE 17 – BENEFIT PAYMENTS ISSUED BY THE STATE

The amounts listed below were paid directly to individual recipients by the State from federal and State monies. County personnel are involved with certain functions, primarily eligibility determinations, which cause benefit payments to be issued by the State. These amounts disclose this additional aid to County recipients, which do not appear in the basic financial statements because they are not revenues and expenditures of the County.

Federal State

Medicaid Assistance Programs - Medicaid Title XIX 76,965,055$ 44,260,700$ Food and Nutrition Services EBT 31,024,789 - Aid to Families with Dependent Children (2,097) (575) Temporary Assistance for Needy Families 483,726 (963) Special Assistance to Adults - 954,040 Low Income Home Energy Assistance 229,600 - Child Welfare Services - Adoptive Subsidy - 403,578 Title IV-E Adoption Subsidy 887,759 237,587 Special Supplemental Food Program for

Women, Infants and Children 2,770,897 -

Total 112,359,729$ 45,854,367$

NOTE 18 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

At June 30, 2012, the following individual funds had a deficit in fund equity:

Special Revenue Funds:Section 8 Housing Fund (61,625)$ WIA Youth Program Fund (18,078) AMPI Unrecoverable Cost Fund (3,450) Capital Project Funds:Land Acquistion and Runway Safety (8,726) Emergency Service Response Fund (1,606) Single Family Fund (78,070) Scattered Site Housing II Fund (362) Internal Service Fund:Workers' Compensation Fund (1,614,363)

The deficit occurred because of the timing of payments Management intends to appropriate funds as necessary to cover deficit fund balance.

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For the year ended June 30, 2012, the expenditures exceeded authorized appropriations as follows:

Capital Project Funds:Transfers out:Boone Trail Elementary 534,623$ Law Enforcement Expansion 46,707 Lafayette School 30,795 Wastewater Master Plan 3,332 Johnsonville School 109,293

Total 724,750$

General Fund:Economic and Physical DevelopmentAppropriations 70,565$

Management will more closely monitor budget reports to ensure compliance in future years. NC General Statutes (G.S.159-28) requires a pre-audit of expenditures by the Finance Officer or a duly appointed Deputy Finance Officer. The individual making disbursements from a bank account held by the County’s Sheriff’s department is not the Finance Officer or the appointed Deputy Finance Officer. Management will monitor this bank account within the finance department to ensure compliance in future years.

74

REQUIRED SUPPLEMENTAL FINANCIAL DATA

This section contains additional information required by accounting principles generally accepted in the United States of America.

Schedule of Funding Progress for the Law Enforcement Officers' Special Separation Allowance

Notes to the Required Schedules for the Law Enforcement Officer's Special Separation Allowance

Schedule of Funding Progress for the Post-Employment Benefit Retiree Healthcare Plan

Notes to the Required Schedules for the Post-Employment Benefit Retiree Healthcare Plan


Schedule A-1


LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANCEREQUIRED SUPPLEMENTARY INFORMATIONFOR THE YEAR ENDED JUNE 30, 2012

Actuarial Accrued UAAL as a

Actuarial Liability (AAL) - Unfunded PercentageActuarial Value of Projected Unit AAL Funded Covered of CoveredValuation Assets Credit (UAAL) Ratio Payroll Payroll

Date (a) (b) (b-a) (a/b) (c) ((b-a)/c)

12/31/2003 -$ 721,297$ 721,297$ 0.00% 2,658,429$ 27.13%12/31/2004 - 884,009 884,009 0.00% 3,081,508 28.69%12/31/2005 - 783,403 783,403 0.00% 3,511,915 22.31%12/31/2006 - 976,187 976,187 0.00% 3,935,637 24.80%12/31/2007 - 953,625 953,625 0.00% 4,133,872 23.07%12/31/2008 - 956,814 956,814 0.00% 4,381,562 21.84%12/31/2009 - 1,350,543 1,350,543 0.00% 4,482,025 30.13%12/31/2010 - 1,316,456 1,316,456 0.00% 4,775,956 27.56%12/31/2011 - 1,376,768 1,376,768 0.00% 4,770,805 28.86%

Annual Required Percentage

Year Ended Contribution of ARCJune 30 (ARC) Contributed

2004 75,029$ 68.40%2005 68,818 85.37%2006 85,582 86.60%2007 104,224 100.00%2008 100,775 75.47%2009 112,213 74.62%2010 119,535 73.23%2011 159,402 55.13%2012 162,421 54.11%

Notes to the Required Schedules:The information presented in the required supplementary schedules was determined as part of the actuarial valuationsat the dates indicated. Additional information as of the latest actuarial valuation follows:

Valuation date 12/31/2010Actuarial cost method Projected unit creditAmortization method Level percent of pay closedRemaining amortization period 20 yearsAsset valuation method Market valueActuarial assumptions:Investment rate of return 5.00%Projected salary increases 4.25% to 7.85%Includes inflation at 3.75%Cost of living adjustments None

Schedule of Funding Progress

Schedule of Employer Contributions

75

Schedule A-2


OTHER POST-EMPLOYMENT BENEFITS -

RETIREE HEALTH PLAN

REQUIRED SUPPLEMENTARY INFORMATION


Actuarial

Accrued UAAL as a

Actuarial Liability (AAL) - Unfunded Percentage

Actuarial Value of Projected Unit AAL Funded Covered of Covered

Valuation Assets Credit (UAAL) Ratio Payroll Payroll

Date (a) (b) (b-a) (a/b) (c) ((b-a)/c)

12/31/2007 -$ 15,836,928$ 15,836,928$ 0.00% 28,925,039$ 54.75%

12/31/2008 - 17,839,619 17,839,619 0.00% 30,636,815 58.20%

12/31/2010 - 19,467,163 19,467,163 0.00% 33,178,627 58.70%

Annual

Required Amount Percentage

Year Ended Contribution Contributed of ARC

June 30 (ARC) By Employer Contributed

2010 1,872,656$ 320,284$ 17%

2011 1,942,881 499,567 26%

2012 1,932,968 537,082 28%

Notes to the Required Schedules:

The information presented in the required supplementary schedules was determined as part of the actuarial valuations

at the dates indicated. Additional information as of the latest actuarial valuation follows:

Valuation date 12/31/2010

Actuarial cost method Projected unit credit

Amortization method Level percent of pay, open

Remaining amortization period 30 years

Asset valuation method Market value of assets

Actuarial assumptions:

Investment rate of return* 4.00%

Medical cost trend rate 10.5%-5.0%

Year of Ultimate trend rate 2016

* Includes inflation at 3.00%

Schedule of Funding Progress

Schedule of Employer Contributions

76

MAJOR FUNDS - GOVERNMENTAL

The General Fund accounts for resources traditionally associated with government which are not required legally or by financial management to be accounted for in another fund.


Schedule B-1


GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES



WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011

2011

Variance

Budget Actual Over /Under Actual

Revenues:

Ad Valorem Taxes:

Taxes 51,998,059$ 51,564,765$ (433,294)$ 50,352,994$

Penalties and interest 520,000 564,757 44,757 526,790

Total 52,518,059 52,129,522 (388,537) 50,879,784

Other Taxes and Licenses:

Local option sales tax 11,798,555 13,914,555 2,116,000 12,288,772

Cable franchise license 215,000 232,046 17,046 246,233

Occupancy taxes 350,000 417,602 67,602 394,058

Excise stamp - real property 500,000 380,640 (119,360) 373,065

Total 12,863,555 14,944,843 2,081,288 13,302,128

Unrestricted Intergovernmental:

ABC Boards 14,000 15,633 1,633 15,139

Controlled substance 17,842 23,530 5,688 37,685

Asset forfeitures 313,254 297,088 (16,166) 64,283

Civil license revenue 9,000 10,951 1,951 8,738

Total 354,096 347,202 (6,894) 125,845

Restricted Intergovernmental:

Federal and State grants 20,969,615 18,712,009 (2,257,606) 19,901,409

Court facility fees 1,116,784 1,145,232 28,448 1,079,283

Total 22,086,399 19,857,241 (2,229,158) 20,980,692

Permits and Fees:

Filing and registration fees 67,400 81,588 14,188 68,100

Dog warden fees 40,000 42,288 2,288 42,915

Register of Deeds' fees 694,400 629,957 (64,443) 512,746

Inspection fees 1,444,774 1,445,939 1,165 1,438,952

Planning fees 118,000 136,040 18,040 116,025

Other fees 219,895 379,857 159,962 252,899

Total 2,584,469 2,715,669 131,200 2,431,637

2012

77

Schedule B-1


GENERAL FUND





2011

Variance


2012

Sales and Services:

Rents, concessions, and fees 492,472 579,578 87,106 543,439

Court costs and fees 165,000 240,788 75,788 167,027

Jail fees 30,000 27,281 (2,719) 38,329

Ambulance fees 5,000,059 5,475,535 475,476 5,670,472

Library fees 26,750 23,366 (3,384) 27,163

Health fees 4,084,278 3,051,709 (1,032,569) 3,487,573

Total 9,798,559 9,398,257 (400,302) 9,934,003

Investment Earnings 13,100 14,473 1,373 20,866

Other General Revenues:

Sale of assets 2,600 10,860 8,260 (416)

Miscellaneous revenues 1,832,823 1,988,404 155,581 1,744,193

Donations 123,817 112,114 (11,703) 147,377

Total 1,959,240 2,111,378 152,138 1,891,154

Total revenues 102,177,477 101,518,585 (658,892) 99,566,109

Expenditures:

General Government:

Governing Body:

Salaries and employee benefits 41,365 37,183 30,394

Other operating expenditures 294,466 230,252 217,427

Total 335,831 267,435 68,396 247,821

Administration:



Total 199,050 193,643 5,407 205,364

Legal Services:



Total 69,397 66,489 2,908 192,390

78

Schedule B-1


GENERAL FUND





2011

Variance


2012

Human Resources:



Total 240,618 220,461 20,157 252,403

Board of Elections:



Total 392,774 320,832 71,942 344,871

Finance:



Total 761,841 718,207 43,634 631,628

Facility Fees:


Total 81,673 74,776 6,897 76,244

IT:



Capital outlay - - 15,000

Total 1,100,063 1,083,183 16,880 1,266,354

Tax:


Other operating expenditures 1,042,522 1,037,090 1,170,533

Total 1,457,013 1,429,030 27,983 1,577,959

Register of Deeds:



Total 768,500 737,080 31,420 637,661

79

Schedule B-1


GENERAL FUND





2011

Variance


2012

Public Buildings:



Capital outlay 19,055 19,055 -

Total 2,697,123 2,440,691 256,432 2,471,332

General Services:



Total 510,651 489,471 21,180 479,736

Transportation:



Total 1,490,191 1,111,563 378,628 1,132,101

GIS:



Total 396,932 381,412 15,520 463,148

Total general government 10,501,657 9,534,273 967,384 9,979,012

Public Safety:

Sheriff:

Salaries and employee benefits 7,080,839 6,930,209 6,935,259

Other operating expenditures 1,241,620 1,134,374 981,140

Capital outlay 555,833 545,904 54,583

Total 8,878,292 8,610,487 267,805 7,970,982

Campbell Campus Deputies:



Total 428,857 335,926 92,931 314,777

80

Schedule B-1


GENERAL FUND





2011

Variance


2012

Sheriff Department Grants:


Total 52,992 50,329 2,663 55,081

Communications:



Total 1,135,472 1,053,732 81,740 1,108,199

Jail:



Total 4,387,899 3,886,465 501,434 3,744,866

Lee/Harnett Criminal Justice:



Total 98,579 67,303 31,276 67,666

Child Support Enforcement:



Total 72,598 59,687 12,911 65,833

Governor's Highway Safety:


Other operating expenditures - - 36,319


Total 134,563 107,362 27,201 158,152

Emergency Services:




Total 720,613 681,809 38,804 812,443

81

Schedule B-1


GENERAL FUND





2011

Variance


2012

Emergency Medical Services:




Total 6,455,814 6,403,965 51,849 6,267,349

Emergency Medical Transport:



Total 848,991 822,529 26,462 914,922

Emergency Telephone System:




Total 563,098 529,762 33,336 447,561

Medical Examiner:

Other operating expenditures 50,000 48,600 1,400 32,900

Public Safety Appropriations:


Total 144,216 126,472 17,744 132,069

Emergency Services Grant:


Total 82,620 35,593 47,027 2,000

Animal Control:



Total 360,385 350,297 10,088 374,033

Total public safety 24,414,989 23,170,318 1,244,671 22,468,833

82

Schedule B-1


GENERAL FUND





2011

Variance


2012

Transportation:

Airport:


Total transportation 162,856 160,068 2,788 149,839

Environmental Protection:

Soil and Water:



Total 135,763 114,166 21,597 149,863

Environmental Protection Allocation:

Salaries and employee benefits


Total 31,601 4,000 27,601 13,422

Total environmental protection 167,364 118,166 49,198 163,285

Economic and Physical Development:

Planning and Inspections:



Total 1,381,988 1,358,230 23,758 1,419,777

Economic Development:



Total 2,242,095 2,214,439 27,656 1,577,631

Cooperative Extension:



Total 739,475 704,752 34,723 1,154,135

Forestry Program:

Operating expenditures 107,849 107,849 - 99,494

83

Schedule B-1


GENERAL FUND





2011

Variance


2012

Economic and Physical Development

Appropriations:

Operating expenditures 1,388,754 1,459,319 (70,565) 1,543,229

Total economic and physical development 5,860,161 5,844,589 15,572 5,794,266

Human Services:

Health:




Total 7,200,749 6,028,627 1,172,122 6,191,712

Social Services:




Total 9,343,284 8,906,348 436,936 8,695,903

Restitution:


Operating expenditures 28,987 23,532 23,551

Total 117,227 108,790 8,437 110,187

Veterans Services:



Total 168,743 165,281 3,462 177,928

Department on Aging:



Total 314,161 292,198 21,963 285,999

Nutrition:



Total 439,197 404,768 34,429 408,682

84

Schedule B-1


GENERAL FUND





2011

Variance


2012

Community Alternatives Program:



Total 340,320 315,979 24,341 327,395

Mental Health:


Total 297,679 297,679 - 205,679

RSVP:



Total 76,553 72,450 4,103 84,513

Aging Volunteers:

Salaries and employee benefits - - 25,874

Other operating expenditures - - 1,237

Total - - - 27,111

Family Caregivers Grant:



Total 66,330 60,949 5,381 57,948

Human Services Appropriations:


Total 124,819 124,819 - 204,101

Public Assistance:

TANF 5,000 2,956 3,351

Aid to the Aged and Blind 1,100,000 953,621 957,446

Medicaid 31,000 32,401 13,940

Aid to the blind 10,000 5,396 5,724

County assistance 4,000 3,605 993

CP&L Project SHARE 6,916 6,248 10,892

Crisis Intervention 923,683 923,609 727,489

Adoption Assistance -IV-B 152,500 127,221 128,541

Adoption IV-B vendor 57,600 27,281 42,719

85

Schedule B-1


GENERAL FUND





2011

Variance


2012

Adoption IV-E vendor 15,000 17,744 17,699

Adoption assistance -IV-E 240,000 237,568 233,904

Foster care - other 5,000 2,341 2,532

Title IV-E - foster care 350,000 223,675 271,546

Foster care county payments 10,000 3,946 38

State foster home care 320,000 246,911 342,782

Special services - foster care 33,000 33,231 17,437

Vendor transportation 331,000 303,887 263,286

Independent living - foster care 8,000 2,694 5,244

Day care 5,140,889 4,210,798 4,797,662

Food stamp employment training - - (15)

All county clothing allowance 6,000 7,834 9,696

Professional services 30,000 10,113 27,272

Workfirst - emergency cash 22,043 22,013 25,990

Workfirst transportation grant 12,625 11,440 20,020

Workfirst county issued 5,000 - -

Workfirst 53,000 36,694 31,641

Contracted services 49,282 32,198 59,170

Child support enforcement 14,600 8,806 46,112

LIEAP 229,651 229,600 -

Job boost 60,000 19,907 -

Donations 9,067 5,103 6,304

Food stamp issuance 35,000 37,757 34,621

Special needs adoption 93,443 36,738 54,211

Total 9,363,299 7,823,336 1,539,963 8,158,247

Total human services 27,852,361 24,601,224 3,251,137 24,935,405

Cultural and Recreation:

Parks & Recreation:




Total 273,937 270,651 3,286 363,141

Libraries:

Salaries and benefits 626,255 617,337 677,990


Total 969,311 934,233 35,078 951,218

86

Schedule B-1


GENERAL FUND





2011

Variance


2012

Culture and Recreation Appropriations:

Other operating expenditures 150,000 150,000 - 232,000

Total cultural and recreation 1,393,248 1,354,884 38,364 1,546,359

Education:

CCCC campus 656,341 656,341 650,226

CCCC campus capital outlay 25,730 25,730 75,500

Public schools - current expenses 20,288,004 20,288,004 20,288,004

Public schools - capital outlay 3,889,044 2,830,946 965,181

Total education 24,859,119 23,801,021 1,058,098 21,978,911

Debt Service:

Principal retirement 7,264,359 7,176,838 6,666,065

Interest and fees 5,432,187 5,139,600 6,032,825

Total debt service 12,696,546 12,316,438 380,108 12,698,890

Total expenditures 107,908,301 100,900,981 7,007,320 99,714,800

Revenues over (under) expenditures (5,730,824) 617,604 6,348,428 (148,691)


Transfer out (136,621) (135,952) 669 (331,667)

Transfer in 4,015,820 3,721,918 (293,902) 1,911,250

Long-term debt issued 24,400,690 24,363,175 (37,515) 20,803,000

Bond premium - - - 35,475

Bond payoff (23,920,690) (23,921,394) (704) (20,035,000)

Appropriated fund balance 1,371,625 - (1,371,625) -

Total other financing sources (uses) 5,730,824 4,027,747 (1,703,077) 2,383,058

Net change in fund balance -$ 4,645,351 4,645,351$ 2,234,367

Fund Balance:

Beginning of year - July 1 18,679,151 16,444,784

End of year - June 30 23,324,502$ 18,679,151$

87


Schedule C-1


NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET

JUNE 30, 2012

Special Capital

Revenue Project

Funds Fund Total

Assets:

Cash and investments 1,181,661$ 182,570$ 1,364,231$

Taxes receivable, net 157,103 - 157,103

Accounts receivable, net 339,205 33,310 372,515

Due from other funds 50,600 429,645 480,245

Prepaid items 2,612 - 2,612

Cash and cash equivalents, restricted - 464,856 464,856

Total assets 1,731,181$ 1,110,381$ 2,841,562$


Liabilities:

Accounts payable and accrued liabilities 590,625$ 108,283$ 698,908$

Due to other funds 50,600 27,103 77,703

Unearned revenues 24,798 - 24,798

Deferred revenues 132,302 - 132,302

Total liabilities 798,325 135,386 933,711

Fund Balances:

Non-spendable

Prepaid items 2,612 - 2,612

Restricted for stabilization for State statute 386,355 462,955 849,310

Restricted for Register of Deeds 117,279 - 117,279

Restricted for general government 12,554 - 12,554

Restricted for education - 529,697 529,697

Restricted for public safety 700,240 1,223 701,463

Restricted for memorials 2,030 - 2,030

Committed - 103,168 103,168

Assigned 60,662 - 60,662

Unassigned (348,876) (122,048) (470,924)

Total fund balances 932,856 974,995 1,907,851

Total liabilities and fund balances 1,731,181$ 1,110,381$ 2,841,562$

Nonmajor

88

Schedule C-2


NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES


Special Capital

Revenue Project

Funds Funds Total

Revenues:

Ad valorem taxes 5,914,010$ -$ 5,914,010$

Other taxes and licenses 974,595 - 974,595

Restricted intergovernmental 433,184 290,080 723,264

Permits and fees 906,083 - 906,083

Sales and services 83,000 - 83,000

Investment earnings 820 199 1,019

Miscellaneous 2,140 91 2,231

Total revenues 8,313,832 290,370 8,604,202

Expenditures:

Current:

General government 490,659 189,365 680,024

Public safety 8,048,304 - 8,048,304

Economic and physical development 55,875 370,180 426,055

Human services 1,799 19,487 21,286

Education 271,292 43,452 314,744

Total expenditures 8,867,929 622,484 9,490,413

Revenues over (under) expenditures (554,097) (332,114) (886,211)


Transfers in 5,309 36,667 41,976

Transfers out (37,720) (3,278,198) (3,315,918)

Total other financing sources (uses) (32,411) (3,241,531) (3,273,942)

Net change in fund balances (586,508) (3,573,645) (4,160,153)

Fund Balances:

Beginning of year - July 1 1,519,364 4,548,640 6,068,004

End of year - June 30 932,856$ 974,995$ 1,907,851$

Nonmajor

89

NONMAJOR FUNDS - GOVERNMENTAL

Special Revenue Funds account for the proceeds of special revenue sources that are legally restricted to the expenditure for special purposes.

INDIVIDUAL FUND DESCRIPTIONS:

Section 8 Housing Fund - accounts for grant funds provided to support the County's Section 8 Existing and Modified Rehabilitation Housing programs.

Economic Development Green Jobs – accounts for grant funds to provide individuals, in Harnett and Sampson County, with the ability to gain work experience in environmental fields. Special Districts Fund - accounts for revenues of sixteen rescue/fire districts and one special school district in Harnett County. Law Enforcement Fund - accounts for the handgun assessed fees that are charged for concealed weapons permits. Emergency Telephone System Fund - accounts for the surcharge fees billed to telephone customers and the expenditures related to the implementation of the Emergency Telephone System. Automation Enhancement & Preservation Fund - accounts for 10% of fees collected in the Register of Deeds’ office. These fees are set aside and used to finance expenditures on computers and imaging technology for the Register of Deeds’ office. Emergency Response Planning Fund - accounts for the expenditures and revenues for emergency response readiness for the fixed nuclear facility. Harnett Memorial Fund - accounts for funds received from citizens for the construction of memorials in the County. Abandoned Manufactured Homes Fund - accounts for funds received from citizens for the removal of abandoned mobile homes to the County landfill. Floodplain Mapping Fund - accounts for the expenditures and revenues for the self-insurance related to the County's floodplain mapping.


Workforce Investment Act Youth Program - accounts for the grant funds to provide job placement and educational opportunities to eligible participants in Harnett and Sampson Counties. AMPI Unrecoverable Cost Fund - accounts for the expenditures and Revenues for the public assistance program that aide’s property owners in the removal of abandoned manufactured housing. Eligible sites may be located within both municipal and county jurisdictional boundaries. American Recovery and Reinvestment Act (ARRA) - accounts for the ARRA grants received by Harnett County Health Department and the Harnett County Department of Services for the Aging. Employment Transportation – accounts for grant funding from the NC Department of Transportation which provides assistance to Workforce Investment participants. Electronics Management – accounts for activity related to the processing of electronic recycling.



NONMAJOR SPECIAL REVENUE FUNDS


JUNE 30, 2012

Automation Emergency

Section 8 Special Law Emergency Enhancement Response

Housing Districts Enforcement Telephone & Preservation Planning

Fund Fund Fund System Fund Fund Fund

Assets:

Cash and investments 30,735$ 180,720$ 4,650$ 718,519$ 175,241$ 35,728$

Taxes receivable, net - 157,103 - - - -

Accounts receivable, net - 243,888 - 64,336 - -

Prepaid items - - - - - 31

Due from other funds - - - - - 50,600

Total assets 30,735$ 581,711$ 4,650$ 782,855$ 175,241$ 86,359$


Liabilities:

Accounts payable 92,360$ 413,396 4,650$ 18,279$ 57,962$ -$

Due to other funds - - - - - -

Unearned revenue - 24,798 - - - -

Deferred revenue - 132,302 - - - -

Total liabilities 92,360 570,496 4,650 18,279 57,962 -

Fund Balances:

Non-spendable

Prepaid items - - - - - 31

Restricted for stabilization

for State statute - 243,888 - 64,336 - 47,150

Restricted for Register of Deeds - - - - 117,279 -

Restricted for general government - - - - - -

Restricted for public safety - - - 700,240 - -

Restricted for memorials - - - - - -

Assigned - - - - - 39,178

Unassigned (61,625) (232,673) - - - -

Total fund balances (61,625) 11,215 - 764,576 117,279 86,359

Total liabilities and fund balances 30,735$ 581,711$ 4,650$ 782,855$ 175,241$ 86,359$

90

Schedule D-1

Abandoned WIA AMPIHarnett Manufactured Youth Unrecoverable

Memorial Homes Program Cost Employment Electronics Fund Fund Fund Fund Transportation Management Total

2,030$ 21,484$ -$ -$ 3,592$ 8,962$ 1,181,661$ - - - - - - 157,103 - - 30,981 - - - 339,205 - 512 2,069 - - - 2,612 - - - - - - 50,600

2,030$ 21,996$ 33,050$ -$ 3,592$ 8,962$ 1,731,181$

-$ -$ 3,978$ -$ -$ -$ 590,625$ - - 47,150 3,450 - - 50,600 - - - - - - 24,798 - - - - - - 132,302

- - 51,128 3,450 - - 798,325

- 512 2,069 - - - 2,612

- - 30,981 - - - 386,355 - - - - - - 117,279 - - - 3,592 8,962 12,554 - - - - - - 700,240

2,030 - - - - - 2,030 - 21,484 - - - - 60,662 - - (51,128) (3,450) - - (348,876)

2,030 21,996 (18,078) (3,450) 3,592 8,962 932,856

2,030$ 21,996$ 33,050$ -$ 3,592$ 8,962$ 1,731,181$

91


NONMAJOR SPECIAL REVENUE FUNDS




Automation Emergency

Section 8 Economic Special Law Emergency Enhancement Response

Housing Development Districts Enforcement Telephone & Preservation Planning

Fund Green Jobs Fund Fund System Fund Fund Fund

Revenues:

Ad valorem taxes -$ -$ 5,914,010$ -$ -$ -$ -$

Other taxes and licenses - - 974,595 - - - -

Restricted intergovernmental - - - - - - -

Permits and fees - 11,255 - 54,780 772,029 68,019 -

Sales and services - - - - - - 83,000

Investment earnings - - - - 725 76 -

Other general revenues - - - - - - -

Total revenues - 11,255 6,888,605 54,780 772,754 68,095 83,000

Expenditures:

General government - - - - - 88,348 -

Public safety - - 6,617,313 81,845 1,304,459 - 44,687

Health and human services - - - - - - -

Economic and physical development - 11,343 - - - - -

Education - - 271,292 - - - -

Total expenditures - 11,343 6,888,605 81,845 1,304,459 88,348 44,687

Revenues over (under) expenditures - (88) - (27,065) (531,705) (20,253) 38,313


Transfers in - - - 5,174 - - -

Transfers out - - - - - - (25,000)

Total other financing sources (uses) - - - 5,174 - - (25,000)

Net change in fund balances - (88) - (21,891) (531,705) (20,253) 13,313

Fund Balances:

Beginning of year - July 1 (61,625) 88 11,215 21,891 1,296,281 137,532 73,046

End of year - June 30 (61,625)$ -$ 11,215$ -$ 764,576$ 117,279$ 86,359$

92

Schedule D-2

Abandoned WIA AMPI

Harnett Manufactured Floodplain Youth Unrecoverable

Memorial Homes Mapping Program Cost ARRA ARRA Employment Electronics

Fund Fund Fund Fund Fund Fund 441 Transportation Management Total

-$ -$ -$ -$ -$ -$ -$ -$ -$ 5,914,010$

- - - - - - - - - 974,595

- - 12,900 390,394 - - 1,799 19,129 8,962 433,184

- - - - - - - - - 906,083

- - - - - - - - - 83,000

- 19 - - - - - - - 820

- 2,140 - - - - - - - 2,140

- 2,159 12,900 390,394 - - 1,799 19,129 8,962 8,313,832

- - - 398,861 3,450 - - - - 490,659

- - - - - - - - - 8,048,304

- - - - - - 1,799 - - 1,799

- 28,995 - - - - - 15,537 - 55,875

- - - - - - - - - 271,292

- 28,995 - 398,861 3,450 - 1,799 15,537 - 8,867,929

- (26,836) 12,900 (8,467) (3,450) - - 3,592 8,962 (554,097)

- - - - - 135 - - - 5,309

- - (12,720) - - - - - - (37,720)

- - (12,720) - - 135 - - - (32,411)

- (26,836) 180 (8,467) (3,450) 135 - 3,592 8,962 (586,508)

2,030 48,832 (180) (9,611) - (135) - - - 1,519,364

2,030$ 21,996$ -$ (18,078)$ (3,450)$ -$ -$ 3,592$ 8,962$ 932,856$

93

Schedule D-3


SECTION 8 HOUSING FUND





2011

Variance

Budget Actual Over/Under Actual

Revenues:

Investment earnings -$ -$ -$ -$

Total revenues - - - -

Net change in fund balance -$ - -$ -

Fund Balance:

Beginning of year - July 1 (61,625) (61,625)

End of year - June 30 (61,625)$ (61,625)$

2012

94

Schedule D-4


ECONOMIC DEVELOPMENT GREEN JOBS SPECIAL REVENUE FUND





2011

Variance


Revenues:

Workforce development fees 11,592$ 11,255$ (337)$ 5,606$

Total revenues 11,592 11,255 (337) 5,606

Expenditures:

Economic and physical development:

Operating expenditures 11,592 11,343 249 5,518

Total expenditures 11,592 11,343 249 5,518

Net change in fund balance -$ (88) (88)$ 88

Fund Balance:

Beginning of year - July 1 88 -

End of year - June 30 -$ 88$

2012

95

Schedule D-5


SPECIAL DISTRICTS FUND





2011

Variance


Revenues:

Ad valorem taxes 6,378,525$ 5,914,010$ (464,515)$ 5,557,398$

Other taxes and licenses 771,548 974,595 203,047 886,171

Total revenues 7,150,073 6,888,605 (261,468) 6,443,569

Expenditures:

Public safety 6,869,374 6,617,313 252,061 6,179,489

Education 280,699 271,292 9,407 260,759

Total expenditures 7,150,073 6,888,605 261,468 6,440,248

Net change in fund balance -$ - -$ 3,321

Fund Balance:

Beginning of year - July 1 11,215 7,894

End of year - June 30 11,215$ 11,215$

2012

96

Schedule D-6


LAW ENFORCEMENT FUND





2011

Variance


Revenues:

Permits and fees 58,000$ 54,780$ (3,220)$ 43,890$

Total revenues 58,000 54,780 (3,220) 43,890

Expenditures:

Public safety:

Other expenditures 84,924 81,845 3,079 44,260

Total expenditures 84,924 81,845 3,079 44,260

Revenues over (under) expenditures (26,924) (27,065) (141) (370)


Transfers in (out) 5,843 5,174 (669) -

Appropriated fund balance 21,081 - (21,081) -

Total other financing sources (uses) 26,924 5,174 (21,750) -

Net change in fund balance -$ (21,891) (21,891)$ (370)

Fund Balance:


End of year - June 30 -$ 21,891$

2012

97

Schedule D-7


EMERGENCY TELEPHONE SYSTEM FUND





2011

Variance


Revenues:

Permits and fees 772,029$ 772,029$ -$ 833,864$

Investment earnings 750 725 (25) 1,173

Total revenues 772,779 772,754 (25) 835,037

Expenditures:

Public safety:

Operating expenditures 1,007,302 947,413 59,889 427,631

Capital outlay 514,228 357,046 157,182 98,433

Total expenditures 1,521,530 1,304,459 217,071 526,064

Revenues over (under) expenditures (748,751) (531,705) 217,046 308,973



Total other financing sources (uses) 748,751 - (748,751) -

Net change in fund balance -$ (531,705) (531,705)$ 308,973

Fund Balance:

Beginning of year - July 1 1,296,281 987,308

End of year - June 30 764,576$ 1,296,281$

2012

98

Schedule D-8


AUTOMATION ENHANCEMENT & PRESERVATION FUND





2011

Variance


Revenues:

Investment earnings -$ 76$ 76$ 333$

Permits and fees 68,000 68,019 19 67,008

Total revenues 68,000 68,095 95 67,341

Expenditures:

General government:

Operating expenditures 147,887 88,348 59,539 78,380


Revenues over (under) expenditures (79,887) (20,253) 59,634 (11,039)




Net change in fund balance -$ (20,253) (20,253)$ (11,039)

Fund Balance:


End of year - June 30 117,279$ 137,532$

2012

99

Schedule D-9


EMERGENCY RESPONSE PLANNING FUND





2011

Variance


Revenues:

Other general revenues 58,000$ 83,000$ 25,000$ 63,000$

Total revenues 58,000 83,000 25,000 63,000

Expenditures:

Public safety:

Salaries and fringe benefits 10,700 2,032 8,668 8,758

Other operating expenditures 53,287 42,655 10,632 44,034


Revenues over (under) expenditures (5,987) 38,313 44,300 10,208


Transfers out (25,000) (25,000) - (3,000)


Total other financing sources (uses) 5,987 (25,000) (30,987) (3,000)

Net change in fund balance -$ 13,313 13,313$ 7,208

Fund Balance:


End of year - June 30 86,359$ 73,046$

2012

100

Schedule D-10


HARNETT MEMORIAL FUND





2011

Variance


Revenues:

Investment earnings -$ -$ -$ -$

Total revenues - - - -

Net change in fund balance -$ - -$ -

Fund Balance:


End of year - June 30 2,030$ 2,030$

2012

101

Schedule D-11


ABANDONED MANUFACTURED HOMES FUND





2011

Variance


Revenues:

Restricted intergovernmental -$ -$ -$ 7,057$

Investment earnings - 19 19 78

Other general revenues 2,139 2,140 1 10,195

Total revenues 2,139 2,159 20 17,330

Expenditures:


Abandoned home removal 30,292 28,995 1,297 49,156


Revenues over (under) expenditures (28,153) (26,836) 1,317 (31,826)


Transfer in 28,153 - (28,153) -


Net change in fund balance -$ (26,836) (26,836)$ (31,826)

Fund Balance:


End of year - June 30 21,996$ 48,832$

2012

102

Schedule D-12


FLOODPLAIN MAPPING FUND





2011

Variance


Revenues:

Restricted intergovernmental 51,000$ 12,900$ (38,100)$ 100$

Total revenues 51,000 12,900 (38,100) 100

Expenditures:

General government:

Operating expenditures 38,280 - 38,280 -

Total expenditures 38,280 - 38,280 -

Revenues over (under) expenditures 12,720 12,900 180 100


Transfer in (out) (12,720) (12,720) - -

Total other financing sources (uses) (12,720) (12,720) - -

Net change in fund balance -$ 180 180$ 100

Fund Balance:

Beginning of year - July 1 (180) (280)

End of year - June 30 -$ (180)$

2012

103

Schedule D-13


WIA YOUTH PROGRAM FUND





2011

Variance


Revenues:

Restricted intergovernmental 426,936$ 390,394$ (36,542)$ 295,144$

Total revenues 426,936 390,394 (36,542) 295,144

Expenditures:

General government:

Operating expenditures 426,936 398,861 28,075 298,562


Net change in fund balance -$ (8,467) (8,467) (3,418)

Fund Balance:

Beginning of year - July 1 (9,611) (6,193)

End of year - June 30 (18,078)$ (9,611)$

2012

104

Schedule D-14


AMPI UNRECOVERABLE COST FUND



FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012

Project Prior Current Total to Variance

Authorization Years Year Date Over/Under

Revenues:

Restricted intergovernmental 40,000$ 36,805$ -$ 36,805$ (3,195)$

Total revenues 40,000 36,805 - 36,805 (3,195)

Expenditures:

General government:

Operating expenditures 40,000 36,805 3,450 40,255 (255)

Total expenditures 40,000 36,805 3,450 40,255 (255)

Net change in fund balance -$ -$ (3,450) (3,450)$ (3,450)$

Fund Balance:

Beginning of year - July 1 -

End of year - June 30 (3,450)$

Actual

105

Schedule D-15


ARRA FUNDSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUALFOR THE YEAR ENDED JUNE 30, 2012WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011

2011

VarianceBudget Actual Over/Under Actual

Revenues:Restricted intergovernmental -$ -$ -$ 44,420$

Total revenues - - - 44,420

Expenditures:General government:Operating expenditures - - - 44,418

Total expenditures - - - 44,418

Revenues over (under) expenditures - - - 2

Other Financing Sources (Uses):Transfer in (out) - 135 135 -

Total other financing sources (uses) - 135 135 -

Net change in fund balance -$ 135 135$ 2

Fund Balance:Beginning of year - July 1 (135) (137)

End of year - June 30 -$ (135)$

2012

106

Schedule D-16


ARRA 441 SPECIAL REVENUE FUND




Variance

Budget Actual Over/Under

Revenues:

Restricted intergovernmental 2,440$ 1,799$ (641)$

Total revenues 2,440 1,799 (641)

Expenditures:

Health and human services

Operating expenditures 2,440 1,799 641

Total expenditures 2,440 1,799 641

Net change in fund balance -$ - -$

Fund Balance:


End of year - June 30 -$

2012

107

Schedule D-17


EMPLOYMENT TRANSPORTATION




Variance


Revenues:

Restricted intergovernmental 19,129$ 19,129$ -$

Total revenues 19,129 19,129 -

Expenditures:

General government:

Operating expenditures 19,129 15,537 -

Total expenditures 19,129 15,537 -

Net change in fund balance -$ 3,592 3,592$

Fund Balance:



2012

108

Schedule D-18


ELECTRONIC MANAGEMENT




Variance


Revenues:

Restricted intergovernmental -$ 8,962$ 8,962$

Total revenues - 8,962 8,962

Net change in fund balance -$ 8,962 8,962$

Fund Balance:



2012

109



Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities: INDIVIDUAL FUND DESCRIPTION: Transportation Facility Design Capital Project Fund - accounts for construction and design of a facility used by the Harnett County Area Transit System (HARTS). Land Acquisition & Runway Safety Project Fund - accounts for the expenditures and revenues for the Land Acquisition, Runway Safety Area, and ILS Site Prep. Barbecue Creek Park Capital Project Fund - accounts for the expenditures and revenues for the renovation and expansion of the Barbecue Park Project. School QZAB III Capital Project Fund - accounts for the renovation, refurbishment, and furnishing of twenty existing Harnett County Schools that are funded by interest-free Qualified Zone Academy Bond (QZAB) funds from the State. Emergency Services Renovation Capital Project Fund - accounts for the expenditures and revenues for the renovation of the building formerly known as the Law Enforcement & Detention Center. To provide office space for the Emergency Services division. Boone Trail Elementary School Capital Project Fund - accounts for the 2009 Certificate of Participation proceeds received for the construction of a new elementary school at the intersection of Griffin Road and Adcock Road in the Mamers Community, which is located in the western portion of the County. Harnett Central High School Capital Project Fund - accounts for the 2009 Certificate of Participation proceeds received for the construction of a 13,550 square foot auxiliary gymnasium and a 24-classroom addition to the Harnett Central High School. Johnsonville Elementary School Capital Project Fund - accounts for the 2009 Certificate of Participation proceeds received for the construction of a fifteen class addition to the Johnsonville Elementary School. The additional classrooms will add the capacity to accommodate approximately 350 students.


Highland Elementary Gym Capital Project Fund - accounts for the 2009 Certificate of Participation proceeds received for the construction of a new 9,903 square-foot gymnasium at Highland Elementary School, located on Buffalo Lake Road in Highland in the western portion of the County. Angier Elementary School Capital Project Fund - accounts for the expenditures and revenues associated with school construction projects.

Law Enforcement Expansion Capital Project Fund - accounts for the expenditures

and revenues for the construction of a new law enforcement center/detention facility.

Airport Overlay Zoning Fund - accounts for the expenditures and revenues for the Land Use Compatibility Zoning Plan better known as the “Airport Overlay Zoning District” and for the preliminary engineering/design for the airport pavement rehabilitation project. Campo Pedestrian Trail - accounts for the expenditures and revenues to undertake a pedestrian oriented project within Harnett County. This project is located at the campus of Harnett Central Middle and High Schools and Neil’s Creek Park and is intended to serve as a safe mode of pedestrian transportation throughout the campus Good Hope Mental Health Fund - accounts for the expenditures and revenues for the renovation of the Good Hope Hospital into a 16-bed mental health facility project. Single Family – accounts for the expenditures and revenues of the rehabilitation of scattered site single family housing units owned and occupied by low and very low income elderly and/or disabled homeowners. Airport Runway Reimbursement Project – accounts for the expenditures and revenues for a grant awarded by the NC Aeronautics Council to reimburse the County for meals and materials provided to the military for Runway extension grading in a previous year. Airport Hangar Development Planning & Preliminary Engineering Project - accounts for the expenditures and revenues to provide an engineering study of the airport.


Airport Stormwater Pollution Plan and Spill Prevention – accounts for expenditures and revenues used to support the Airport’s requirement to comply with their NDES General Storm Water permit. Scattered Site Housing II – accounts for expenditures and revenues used to account for activities for addressing the most critical housing needs of very low income, owner occupied household with incomes at or below 50% of median incomes. Airport Taxiway & Apron Rehab – accounts for expenditures and revenues used to account for activities related to the runway, taxiway and apron pavement rehabilitation and strengthening to address cracking, oxidation and other pavement distress. .


NONMAJOR CAPITAL PROJECT FUNDS


JUNE 30, 2012

Land

Transportation Acquisition Barbeque School Emergency Boone Harnett Johnsonville

Facility and Runway Creek Improvements Service Trail Central Elementary

Design Safety Park QZAB III Response Elementary High School School

Assets:

Cash and investments 29,390$ -$ -$ -$ 8,394$ -$ -$ -$

Accounts receivable, net - 3,374 - - - - - -

Due from other funds - - - - - - - -

Restricted assets:

Cash and cash equivalents - - - 1,223 - 326,098 52,454 51,721

Total assets 29,390$ 3,374$ -$ 1,223$ 8,394$ 326,098$ 52,454$ 51,721$


Liabilities:

Accounts payable

and accrued liabilities -$ 12,100$ -$ -$ 10,000$ -$ -$ -$

Due to other funds - - - - - - - -

Total liabilities - 12,100 - - 10,000 - - -

Fund Balances:

Restricted for stabilization

for State statute - 3,374 - - - - - -

Restricted for education - - - - - 326,098 52,454 51,721

Restricted for public safety - - - 1,223 - - - -

Committed 29,390 - - - - - - -

Unassigned - (12,100) - - (1,606) - - -

Total fund balances 29,390 (8,726) - 1,223 (1,606) 326,098 52,454 51,721

Total liabilities and fund balances 29,390$ 3,374$ -$ 1,223$ 8,394$ 326,098$ 52,454$ 51,721$

110

Schedule E-1

Highland Angier Law Airport Campo Good Hope Airport Hangar Scattered Taxiway

Elementary Elementary Enforcement Overlay Pedestrian Mental Single Runway Planning Airport Site & Apron

School Gym School Expansion Zoning Trail Health Family Reimburse Eng SWPP Housing II Rehab Total

-$ 66,064$ -$ 13,807$ 13,285$ 21,781$ -$ 11,770$ 46$ 357$ 1$ 17,675$ 182,570$

- - - - - - 22,740 - 3,980 3,216 - - 33,310

- - 429,645 - - - - - - - - - 429,645

33,360 - - - - - - - - - - - 464,856

33,360$ 66,064$ 429,645$ 13,807$ 13,285$ 21,781$ 22,740$ 11,770$ 4,026$ 3,573$ 1$ 17,675$ 1,110,381$

-$ -$ -$ -$ -$ 4,540$ 78,070$ -$ -$ 3,573$ -$ -$ 108,283$

- - - - - - 22,740 - 4,000 - 363 - 27,103

- - - - - 4,540 100,810 - 4,000 3,573 363 - 135,386

- - 429,645 - - - 22,740 - 3,980 3,216 - - 462,955

33,360 66,064 - - - - - - - - - - 529,697

- - - - - - - - - - - - 1,223

- - - 13,807 13,285 17,241 - 11,770 - - - 17,675 103,168

- - - - - - (100,810) - (3,954) (3,216) (362) - (122,048)

33,360 66,064 429,645 13,807 13,285 17,241 (78,070) 11,770 26 - (362) 17,675 974,995

33,360$ 66,064$ 429,645$ 13,807$ 13,285$ 21,781$ 22,740$ 11,770$ 4,026$ 3,573$ 1$ 17,675$ 1,110,381$

111


NONMAJOR CAPITAL PROJECT FUNDS




Land

Transportation Acquisition Barbeque School Emergency Boone Harnett Johnsonville

Facility and Runway Creek Improvements Services Trail Central Elementary

Design Safety Park QZAB III Renovation Elementary High School School

Revenues:

Restricted intergovernmental (32,362)$ 32,090$ -$ -$ -$ -$ -$ -$

Investment earnings 4 - - 3 5 20 2 4

Miscellaneous - - - - - - - -

Total revenues (32,358) 32,090 - 3 5 20 2 4

Expenditures:

Current:

General government - 40,816 - - - - 148,549 -

Economic and physical development - - - - - - - -

Human services - - - - - - - -

Education - - - - - 43,452 - -

Total expenditures - 40,816 - - - 43,452 148,549 -

Revenues over (under) expenditures (32,358) (8,726) - 3 5 (43,432) (148,547) 4


Transfers in - - - - - - - -

Transfers out - - (36,265) - - (1,228,563) (1,050,159) (750,510)

Total other financing sources (uses) - - (36,265) - - (1,228,563) (1,050,159) (750,510)

Net change in fund balances (32,358) (8,726) (36,265) 3 5 (1,271,995) (1,198,706) (750,506)

Fund Balances:

Beginning of year - July 1 61,748 - 36,265 1,220 (1,611) 1,598,093 1,251,160 802,227

End of year - June 30 29,390$ (8,726)$ -$ 1,223$ (1,606)$ 326,098$ 52,454$ 51,721$

112

Schedule E-2

Highland Angier Law Airport Campo Good Hope Airport Hangar Scattered Taxiway

Elementary Elementary Enforcement Overlay Pedestrian Mental Single Runway Planning Airport Site & Apron

School Gym School Expansion Zoning Trail Health Family Reimburse Eng SWPP Housing II Rehab Total

-$ -$ -$ -$ -$ -$ 225,582$ -$ 46,304$ 18,466$ -$ -$ 290,080$

6 - 123 7 7 18 - - - - - - 199

- - - - - - - - - 91 - - 91

6 - 123 7 7 18 225,582 - 46,304 18,557 - - 290,370

.

- - - - - - - - - - - - 189,365

- - - - - - 297,761 - 51,448 20,609 362 - 370,180

- - - - - 19,487 - - - - - - 19,487

- - - - - - - - - - - - 43,452

- - - - - 19,487 297,761 - 51,448 20,609 362 - 622,484

6 - 123 7 7 (19,469) (72,179) - (5,144) (2,052) (362) - (332,114)

- - - - - - - 11,770 5,170 2,052 - 17,675 36,667

(165,994) - (46,707) - - - - - - - - - (3,278,198)

(165,994) - (46,707) - - - - 11,770 5,170 2,052 - 17,675 (3,241,531)

(165,988) - (46,584) 7 7 (19,469) (72,179) 11,770 26 - (362) 17,675 (3,573,645)

199,348 66,064 476,229 13,800 13,278 36,710 (5,891) - - - - - 4,548,640

33,360$ 66,064$ 429,645$ 13,807$ 13,285$ 17,241$ (78,070)$ 11,770$ 26$ -$ (362)$ 17,675$ 974,995$

113

Schedule E-3


TRANSPORTATION FACILITY DESIGN






Revenues:

Investment earnings 7,500$ 7,462$ 4$ 7,466$ (34)$

Restricted intergovernmental revenues 607,588 599,585 (32,362) 567,223 (40,365)

Sales tax refund 4,288 9,459 - 9,459 5,171

Total revenues 619,376 616,506 (32,358) 584,148 (35,228)

Expenditures:

General government:

Legal and administrative 5,802 5,559 - 5,559 243

Engineering 33,643 32,144 - 32,144 1,499

Construction 564,000 564,000 - 564,000 -

Fencing and landscape 42,876 - - - 42,876

Miscellaneous 5,654 5,654 - 5,654 -

Total expenditures 651,975 607,357 - 607,357 44,618

Revenues over (under) expenditures (32,599) 9,149 (32,358) (23,209) 9,390


Transfers in/out 32,599 52,599 - 52,599 20,000

Total other financing sources (uses) 32,599 52,599 - 52,599 20,000

Net change in fund balance -$ 61,748$ (32,358) 29,390$ 29,390$

Fund Balance:



Actual

114

Schedule E-4


LAND ACQUISITION AND RUNWAY SAFETY






Revenues:

Restricted intergovernmental 405,000$ 257,841$ 32,090$ 289,931$ (115,069)$

Total revenues 405,000 257,841 32,090 289,931 (115,069)

Expenditures:

General government:

Engineering 169,418 22,260 40,816 63,076 106,342

Construction 235,582 235,581 - 235,581 1

Total expenditures 405,000 257,841 40,816 298,657 106,343

Net change in fund balance -$ -$ (8,726) (8,726)$ (8,726)$

Fund Balance:


End of year, June 30 (8,726)$

Actual

115

Schedule E-5


BARBEQUE CREEK PARK






Revenues:

Restricted Intergovernmental 479,092$ 479,091$ -$ 479,091$ (1)$

Investment earnings 265 265 - 265 -

Sales tax refund 24,564 24,564 - 24,564 -

Total revenues 503,921 503,920 - 503,920 (1)

Expenditures:

General government:

Engineering 104,725 104,725 - 104,725 -

Construction 713,818 713,817 - 713,817 1

Materials and supplies 149,113 149,113 - 149,113 -

Total expenditures 967,656 967,655 - 967,655 1

Revenues over (under) expenditures (463,735) (463,735) - (463,735) -


Transfers in/out 463,735 500,000 (36,265) 463,735 -

Total other financing sources (uses) 463,735 500,000 (36,265) 463,735 -

Net change in fund balance -$ 36,265$ (36,265) -$ -$

Fund Balance:


End of year - June 30 -$

Actual

116

Schedule E-6


SCHOOL IMPROVEMENTS QZAB III






Revenues:

Investment earnings 3,500$ 3,563$ 3$ 3,566$ 66$

Total revenues 3,500 3,563 3 3,566 66

Expenditures:

General government:

Construction 791,845 791,843 - 791,843 2

Contingency 1,155 - - - 1,155


Revenues over (under) expenditures (789,500) (788,280) 3 (788,277) 1,223


Bond issuance 789,500 789,500 - 789,500 -

Total other financing sources (uses) 789,500 789,500 - 789,500 -

Net change in fund balance -$ 1,220$ 3 1,223$ 1,223$

Fund Balance:



Actual

117

Schedule E-7


EMERGENCY SERVICES RENOVATION






Revenues:

Restricted intergovernmental 10,000$ 10,000$ -$ 10,000$ -$

Investment earnings - 233 5 238 238

Miscellaneous 21,000 19,153 - 19,153 (1,847)

Total revenues 31,000 29,386 5 29,391 (1,609)

Expenditures:

Public safety:

Legal and administrative 1,675 1,675 - 1,675 -

Engineering 72,523 72,522 - 72,522 1

Construction 638,300 638,300 - 638,300 -

Materials and supplies 8,598 62,555 - 62,555 (53,957)

Capital outlay 123,505 69,546 - 69,546 53,959

Total expenditures 844,601 844,598 - 844,598 3

Revenues over (under) expenditures (813,601) (815,212) 5 (815,207) (1,606)


Transfers in 813,601 813,601 - 813,601 -


Net change in fund balance -$ (1,611)$ 5 (1,606)$ (1,606)$

Fund Balance:

Beginning of year - July 1 (1,611)


Actual

118

Schedule E-8


BOONE TRAIL ELEMENTARY






Revenues:

Investment earnings -$ 80,804$ 20$ 80,824$ 80,824$

Sales tax refund - 119,871 - 119,871 119,871

Total revenues - 200,675 20 200,695 200,695

Expenditures:

General government:


Engineering 798,284 794,146 - 794,146 4,138

Construction 15,133,266 14,732,313 - 14,732,313 400,953

Materials and supplies 2,705,129 2,407,976 43,452 2,451,428 253,701

Debt issue costs 458,841 457,606 - 457,606 (1,235)

Total expenditures 19,099,138 18,395,659 43,452 18,439,111 660,027

Revenues over (under) expenditures (19,099,138) (18,194,984) (43,432) (18,238,416) 860,722


Transfer out (1,267,728) (573,788) (1,228,563) (1,802,351) (534,623)

Bond premium 374,115 374,115 - 374,115 -

Bond issuance 19,992,751 19,992,750 - 19,992,750 (1)

Total other financing sources (uses) 19,099,138 19,793,077 (1,228,563) 18,564,514 (534,624)

Net change in fund balance -$ 1,598,093$ (1,271,995) 326,098$ 326,098$

Fund Balance:


End of year, June 30 326,098$

Actual

119

Schedule E-9


HARNETT CENTRAL HIGH SCHOOL






Revenues:


Sales tax refund - 12,806 - 12,806 12,806

Total revenues - 52,448 2 52,450 52,450

Expenditures:

General government:


Engineering 650,595 649,095 1,500 650,595 -

Construction 8,008,335 7,925,358 82,975 8,008,333 2

Materials and supplies 68,730 4,656 64,074 68,730 -

Debt issue costs 225,872 225,871 - 225,871 (1)

Total expenditures 8,954,617 8,806,064 148,549 8,954,613 4



Transfer in/out (1,050,159) - (1,050,159) (1,050,159) -

Bond premium 183,776 183,776 - 183,776 -

Bond issuance 9,821,000 9,821,000 - 9,821,000 -

Total other financing sources (uses) 8,954,617 10,004,776 (1,050,159) 8,954,617 -

Net change in fund balance -$ 1,251,160$ (1,198,706) 52,454$ 52,454$

Fund Balance:



Actual

120

Schedule E-10


JOHNSONVILLE ELEMENTARY SCHOOL






Revenues:


Miscellaneous - 16,133 - 16,133 16,133

Total revenues - 31,718 4 31,722 31,722

Expenditures:

General government:


Engineering 244,291 215,451 - 215,451 28,840

Construction 2,210,194 2,210,194 - 2,210,194 -

Materials and supplies 635,230 534,779 - 534,779 100,451

Debt issue costs 88,310 88,310 - 88,310 -

Total expenditures 3,179,938 3,050,646 - 3,050,646 129,292

Revenues over (under) expenditures (3,179,938) (3,018,928) 4 (3,018,924) 161,014


Transfers out (750,510) (109,293) (750,510) (859,803) (109,293)

Bond premium 72,198 72,198 - 72,198 -

Bond issuance 3,858,250 3,858,250 - 3,858,250 -

Total other financing sources (uses) 3,179,938 3,821,155 (750,510) 3,070,645 (109,293)


Fund Balance:



Actual

121

Schedule E-11


HIGHLAND ELEMENTARY SCHOOL GYMSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUALFROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012

Project Prior Current Total to VarianceAuthorization Years Year Date Over/Under

Revenues:Investment earnings -$ 5,702$ 6$ 5,708$ 5,708$ Miscellaneous 5,800 27,056 - 27,056 21,256

Total revenues 5,800 32,758 6 32,764 26,964

Expenditures:General government:Legal and administrative 1,171 1,172 - 1,172 (1) Engineering 112,911 112,911 - 112,911 - Construction 1,116,521 1,116,468 - 1,116,468 53 Materials and supplies 5,747 - - - 5,747 Debt issue costs 32,113 32,113 - 32,113 -



Other Financing Sources (Uses):Transfer out (166,591) - (165,994) (165,994) 597 Bond premium - 26,254 - 26,254 26,254 Bond issuance 1,429,254 1,403,000 - 1,403,000 (26,254)

Total other financing sources (uses) 1,262,663 1,429,254 (165,994) 1,263,260 597


Fund Balance:Beginning of year - July 1 199,348


Actual

122

Schedule E-12


ANGIER ELEMENTARY SCHOOL






Revenues:

Investment earnings 98,347$ 98,981$ -$ 98,981$ 634$

Sales tax 311,650 344,315 - 344,315 32,665

Total revenues 409,997 443,296 - 443,296 33,299

Expenditures:

General government:


Engineering 984,984 984,982 - 984,982 2

Construction 13,418,224 13,385,461 - 13,385,461 32,763

Materials and supplies 596,791 596,791 - 596,791 -

Debt issue costs 31,655 31,655 - 31,655 -


Revenues over (under) expenditures (14,622,768) (14,556,704) - (14,556,704) 66,064


Transfers out (377,232) (377,232) - (377,232) -

Bond issuance 15,000,000 15,000,000 - 15,000,000 -

Total other financing sources (uses) 14,622,768 14,622,768 - 14,622,768 -

Net change in fund balance -$ 66,064$ - 66,064$ 66,064$

Fund Balance:



Actual

123

Schedule E-13


LAW ENFORCEMENT EXPANSION






Revenues:

Investment earnings 958,175$ 1,053,608$ 123$ 1,053,731$ 95,556$

Miscellaneous 446,122 446,121 - 446,121 (1)

Total revenues 1,404,297 1,499,729 123 1,499,852 95,555

Expenditures:

Public safety:


Engineering 1,569,049 1,477,439 - 1,477,439 91,610

Construction 22,028,323 21,742,620 - 21,742,620 285,703


Professional services 112,861 112,861 - 112,861 -

Capital outlay 48,068 48,068 - 48,068 -

Debt issue costs 376,164 376,164 - 376,164 -




Transfers in 1,346,800 1,346,800 - 1,346,800 -

Transfers out (1,973,197) (1,973,197) (46,707) (2,019,904) (46,707)

Bond premium 909,908 909,908 - 909,908 -

Bond issuance 23,220,225 23,220,225 - 23,220,225 -



Fund Balance:



Actual

124

Schedule E-14


AIRPORT OVERLAY ZONING PROJECT






Revenues:

Restricted intergovernmental 150,000$ 25,920$ -$ 25,920$ (124,080)$


Total revenues 150,000 25,933 7 25,940 (124,060)

Expenditures:


Engineering 161,107 23,240 - 23,240 137,867

Construction 5,560 5,560 - 5,560 -


Revenues over (under) expenditures (16,667) (2,867) 7 (2,860) 13,807


Transfers in 16,667 16,667 - 16,667 -



Fund Balance:



Actual

125

Schedule E-15


CAMPO PEDESTRIAN TRAIL PROJECT






Revenues:

Restricted intergovernmental 53,050$ -$ -$ -$ (53,050)$


Total revenues 53,050 15 7 22 (53,028)

Expenditures:


Engineering 5,305 - - - 5,305

Construction 61,008 - - - 61,008

Total expenditures 66,313 - - - 66,313

Revenues over (under) expenditures (13,263) 15 7 22 13,285


Transfers in 13,263 13,263 - 13,263 -



Fund Balance:



Actual

126

Schedule E-16


GOOD HOPE MENTAL HEALTH PROJECT






Revenues:

Investment earnings -$ 133$ 18$ 151$ 151$

Total revenues - 133 18 151 151

Expenditures:

Human services:

Engineering 180,000 143,423 19,487 162,910 17,090


Revenues over (under) expenditures (180,000) (143,290) (19,469) (162,759) 17,241


Transfers in 180,000 180,000 - 180,000 -



Fund Balance:



Actual

127

Schedule E-17


SINGLE FAMILY






Revenues:

Restricted intergovernmental 423,873$ 13,618$ 225,582$ 239,200$ (184,673)$

Total revenues 423,873 13,618 225,582 239,200 (184,673)

Expenditures:


Rehabilitation 423,873 19,509 297,761 317,270 106,603


Net change in fund balance -$ (5,891)$ (72,179) (78,070)$ (78,070)$

Fund Balance:

Beginning of year - July 1 (5,891)


Actual

128

Schedule E-18


AIRPORT RUNWAY REIMBURSE






Revenues:


Total revenues 105,930 - - - (105,930)

Expenditures:


Engineering 7,200 - - - 7,200

Construction 110,500 - - - 110,500


Revenues over (under) expenditures (11,770) - - - 11,770


Transfers in 11,770 - 11,770 11,770 -

Total other financing sources (uses) 11,770 - 11,770 11,770 -

Net change in fund balance -$ -$ 11,770 11,770$ 11,770$

Fund Balance:



Actual

129

Schedule E-19


HANGAR PLANNING/ENG






Revenues:

Restricted intergovernmental 46,530$ -$ 46,304$ 46,304$ (226)$

Total revenues 46,530 - 46,304 46,304 (226)

Expenditures:


Engineering 51,700 - 51,448 51,448 252

Total expenditures 51,700 - 51,448 51,448 252

Revenues over (under) expenditures (5,170) - (5,144) (5,144) 26


Transfers in 5,170 - 5,170 5,170 -

Total other financing sources (uses) 5,170 - 5,170 5,170 -

Net change in fund balance -$ -$ 26 26$ 26$

Fund Balance:


End of year, June 30 26$

Actual

130

Schedule E-20


AIRPORT SWPPSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUALFROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012


Revenues:Restricted intergovernmental 18,466$ -$ 18,466$ 18,466$ -$

Miscellaneous - - 91 91 91

Total revenues 18,466 - 18,557 18,557 91

Expenditures:Economic and physical development:Engineering 15,590 - 15,590 15,590 - Construction 3,997 - 3,573 3,573 424

Materials and supplies 2,220 - 1,446 1,446 774

Total expenditures 21,807 - 20,609 20,609 1,198

Revenues over (under) expenditures (3,341) - (2,052) (2,052) 1,289

Other Financing Sources (Uses):Transfers in 3,341 - 2,052 2,052 (1,289)

Total other financing sources (uses) 3,341 - 2,052 2,052 (1,289)

Net change in fund balance -$ -$ - -$ -$

Fund Balance:Beginning of year - July 1 -

End of year, June 30 -$

Actual

131

Schedule E-21


SCATTERED SITE HOUSING II






Revenues:


Total revenues 400,000 - - - (400,000)

Expenditures:


Legal and administrative 40,000 - - - 40,000

Rehabilitation 360,000 - 362 362 359,638

Total expenditures 400,000 - 362 362 399,638

Net change in fund balance -$ -$ (362) (362)$ (362)$

Fund Balance:


End of year, June 30 (362)$

Actual

132

Schedule E-22


TAXI & APRON REHABSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUALFROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012


Revenues:Restricted intergovernmental 235,914$ -$ -$ -$ (235,914)$

Total revenues 235,914 - - - (235,914)

Expenditures:Economic and physical development:Legal and administrative 1,200 - - - 1,200

Engineering 260,927 - - - 260,927


Revenues over (under) expenditures (26,213) - - - 26,213

Other Financing Sources (Uses):Transfers in 26,213 - 17,675 17,675 (8,538)

Total other financing sources (uses) 26,213 - 17,675 17,675 (8,538)

Net change in fund balance -$ -$ 17,675 17,675$ 17,675$

Fund Balance:Beginning of year - July 1 -


Actual

133


ENTERPRISE FUNDS

Enterprise Funds account for operations financed and operated in a manner similar to private business enterprises - where the costs of providing services are financed primarily through user charges. Harnett County maintains one enterprise fund to account for the operations of the water and sewer districts. The County maintains ten additional funds to account for the debt service for each district. The County maintains a separate enterprise fund for the operations of the landfill. INDIVIDUAL FUND DESCRIPTIONS: Harnett County Public Utilities Fund - accounts for the operations of the ten water and sewer districts, which provide water and sewer to the residents of the County. Individual Water and Sewer Funds - accounts for the debt service for each of the water and sewer districts. These funds are the Northeast Metro Water and Sewer District, the Buies Creek / Coats Sewer District, the South Central Water and Sewer District, the West Central Water and Sewer District, the Northwest Water and Sewer District, the Southwest Water and Sewer District, the Bunnlevel Riverside Water and Sewer District, the Southeast Water and Sewer District, the East Central Water and Sewer District, and Riverside Water and Sewer District. Solid Waste Management Fund - accounts for the operations of the Harnett County Landfill.


Schedule F-1


ENTERPRISE FUND - WATER AND SEWER FUND

SCHEDULE OF REVENUES AND EXPENDITURES -

BUDGET AND ACTUAL (NON-GAAP)


Variance


Revenues:

Operating revenues:

Water and sewer sales 21,139,766$ 23,586,918$ 2,447,152$

Water and sewer taps 315,000 350,033 35,033

Johnson County 3,600 7,406 3,806

Other operating revenues 2,105,306 3,656,915 1,551,609

Total operating revenues 23,563,672 27,601,272 4,037,600

Non-operating revenues:

Interest earned on investments 5,000 6,147 1,147

Total revenues 23,568,672 27,607,419 4,038,747

Expenditures:

Salaries and employee benefits 5,812,138 5,178,420 633,718

Purchased water 130,000 102,047 27,953

Sewage treatment 1,960,531 1,452,952 507,579

Other operating expenses 8,860,607 6,579,321 2,281,286


Debt service:

Debt principal 3,065,766 3,800,711 (734,945)

Interest and fees 4,076,940 3,763,654 313,286

Total expenditures 24,693,122 21,664,245 3,028,877

Revenues over (under) expenditures (1,124,450) 5,943,174 7,067,624


Debt issued - 21,973,676 21,973,676

Payments to escrow agents 743,310 (755,000) (1,498,310)

Appropriated fund balance 2,762,371 - (2,762,371)

Transfers in - 34,127 34,127

Transfers out (2,381,231) (2,381,231) -

Total other financing sources (uses) 1,124,450 18,871,572 17,747,122

Revenues and other financing sources over

(under) expenditures and other financing uses -$ 24,814,746$ 24,814,746$

134

Schedule F-1


ENTERPRISE FUND - WATER AND SEWER FUND




Variance


Reconciliation from Budgetary Basis

(Modified Accrual) to Full Accrual:


(under) expenditures and other financing uses 24,814,746$

Reconciling items:

Debt principal 4,555,711

Loan issued (21,973,676)

Amortization

Increase in compensated absences (20,457)

Increase in other post-employment benefits (174,235)

Capital contribution 14,689,325

Contributed asset 4,057,628

Expense from projects (103,526)

Interest and fees from project (823,815)

Transfers in from projects 4,590,504

Transfers out from projects (34,127)

Capital outlay 787,140

Depreciation (5,248,377)

Change in net assets 25,116,841$

135

Schedules F-2


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - NORTH EAST METRO




Variance


Expenditures:

Debt principal 442,500$ 442,500$ -$

Interest and fees 78,790 75,348 3,442

Total expenditures 521,290 517,848 3,442

Revenues over (under) expenditures (521,290) (517,848) 3,442


Capital lease transfer in 521,290 517,848 (3,442)

Total other financing sources (uses) 521,290 517,848 (3,442)


(under) expenditures and other financing uses -$ -$ -$




(under) expenditures and other financing uses -$

Reconciling items:

Debt principal 442,500

Reduction in investment in

direct financing lease receivable (442,500)

Change in net assets -$

136

Schedule F-3


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - BUIES CREEK/COATS




Variance


Expenditures:

Debt principal 100,000$ 100,000$ -$

Interest and fees 5,700 5,225 475


Revenues over (under) expenditures (105,700) (105,225) 475


Capital lease transfer in 105,700 105,225 (475)

Total other financing sources (uses) 105,700 105,225 (475)







Reconciling items:





137

Schedule F-4


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - SOUTH CENTRAL




Variance


Expenditures:

Debt principal 321,320$ 321,320$ -$













Reconciling items:





138

Schedule F-5


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - WEST CENTRAL




Variance


Expenditures:

Debt principal 90,000$ 90,000$ -$













Reconciling items:





139

Schedule F-6


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - NORTHWEST




Variance


Expenditures:

Debt principal 125,000$ 125,000$ -$













Reconciling items:





140

Schedule F-7


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - SOUTHWEST




Variance


Expenditures:

Debt principal 486,343$ 486,342$ 1$













Reconciling items:





141

Schedule F-8


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - BUNNLEVEL/RIVERSIDE




Variance


Expenditures:

Debt principal 13,680$ 13,680$ -$













Reconciling items:





142

Schedule F-9


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - SOUTHEAST




Variance


Expenditures:

Debt principal 33,000$ 33,000$ -$













Reconciling items:





143

Schedule F-10


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - EAST CENTRAL




Variance


Expenditures:

Debt principal 75,500$ 75,500$ -$













Reconciling items:





144

Schedule F-11


ENTERPRISE FUND - NON-OPERATING ENTERPRISE FUND - RIVERSIDE




Variance


Expenditures:

Debt principal 18,500$ 18,500$ -$



Revenues under expenditures (69,445) (69,371) 74










Reconciling items:





145

Schedule F-12


SOUTH CENTRAL WASTEWATER CAPITAL PROJECT






Revenues:

Sales tax refund 596,219$ 604,592$ 810$ 605,402$ 9,183$

Investment earnings 255,441 255,633 7 255,640 199

Restricted intergovernmental 6,034,519 6,034,519 - 6,034,519 -

Total revenues 6,886,179 6,894,744 817 6,895,561 9,382

Expenditures:

Construction 21,897,716 21,615,483 166,744 21,782,227 115,489

Legal and administration 113,209 111,094 - 111,094 2,115

Engineering 1,339,192 1,339,191 - 1,339,191 1

Materials and supplies 37,000 36,637 - 36,637 363

Land 839,999 827,730 - 827,730 12,269

Construction interest 1,936,353 1,828,366 247,607 2,075,973 (139,620)

Issuance cost 2,052 2,051 - 2,051 1

Total expenditures 26,165,521 25,760,552 414,351 26,174,903 (9,382)

Revenues over (under) expenditures (19,279,342) (18,865,808) (413,534) (19,279,342) -


Bond issuance 13,253,000 13,253,000 - 13,253,000 -

Transfers in - Enterprise Fund 6,026,342 5,557,852 468,490 6,026,342 -

Total other financing sources (uses) 19,279,342 18,810,852 468,490 19,279,342 -


(under) expenditures and other financing uses -$ (54,956)$ 54,956$ -$ -$

Actual

146

Schedule F-13


ERWIN WASTEWATER CAPITAL PROJECT






Revenues:

Sales tax refund 800$ 5,114$ 161,340$ 166,454$ 165,654$

Investment earnings 14,130 15,678 345 16,023 1,893

Restricted intergovernmental 3,198,500 2,200,000 400,000 2,600,000 (598,500)

Total revenues 3,213,430 2,220,792 561,685 2,782,477 (430,953)

Expenditures:

Construction 8,362,692 2,287,104 4,048,852 6,335,956 2,026,736

Legal and administration 237,000 31,095 143,042 174,137 62,863

Engineering 1,073,404 800,060 184,480 984,540 88,864


Land 75,000 22,850 3,135 25,985 49,015

Interest 10,530 - - - 10,530

Contingency 547,585 - - - 547,585

Total expenditures 10,562,530 3,384,113 4,379,509 7,763,622 2,798,908

Revenues over (under) expenditures (7,349,100) (1,163,321) (3,817,824) (4,981,145) 2,367,955


Long-term debt issued 7,007,100 - 7,007,100 7,007,100 -

Transfers in - Enterprise Fund 1,800,000 1,800,000 - 1,800,000 -

Transfers out - Enterprise Fund (1,458,000) - - - 1,458,000

Total other financing sources (uses) 7,349,100 1,800,000 7,007,100 8,807,100 1,458,000


(under) expenditures and other financing uses -$ 636,679$ 3,189,276$ 3,825,955$ 3,825,955$

Actual

147

Schedule F-14


LAFAYETTE SCHOOL CAPITAL PROJECT






Revenues:

Sales tax refund 3,000$ 11,346$ -$ 11,346$ 8,346$

Investment earnings 79,891 88,478 - 88,478 8,587

Total revenues 82,891 99,824 - 99,824 16,933

Expenditures:

Construction 830,077 830,078 - 830,078 (1)

Legal and administration 41,672 41,671 - 41,671 1

Engineering 116,266 116,266 - 116,266 -

Land 7,500 7,500 - 7,500 -

Interest 225,718 211,855 - 211,855 13,863


Revenues over (under) expenditures (1,138,342) (1,107,546) - (1,107,546) 30,796


Bond issuance 1,010,089 1,010,089 - 1,010,089 -

Transfers in - Enterprise Fund 128,253 128,252 - 128,252 (1)

Transfers out - Enterprise Fund - - (30,795) (30,795) (30,795)



(under) expenditures and other financing uses -$ 30,795$ (30,795)$ -$ -$

Actual

148

Schedule F-15


EAST CENTRAL IMPROVEMENTS CAPITAL PROJECT






Revenues:

Sales tax refund 92,423$ 191,995$ 14,294$ 206,289$ 113,866$


Restricted intergovernmental 547,500 273,500 274,000 547,500 -

Total revenues 643,361 469,055 289,000 758,055 114,694

Expenditures:

Construction 4,425,042 3,997,779 427,262 4,425,041 1


Engineering 471,600 356,594 72,732 429,326 42,274

Materials and supplies 24,581 5,083 19,427 24,510 71

Land 83,000 76,241 904 77,145 5,855

Interest 102,063 - - - 102,063

Contingency 15,171 - - - 15,171

Total expenditures 5,222,980 4,535,871 520,325 5,056,196 166,784



Loan issued 4,454,119 3,354,250 1,012,265 4,366,515 (87,604)

Transfers in - Enterprise Fund 275,500 275,500 - 275,500 -

Transfers out - Enterprise Fund (150,000) - - - 150,000

Total other financing sources (uses) 4,579,619 3,629,750 1,012,265 4,642,015 62,396


(under) expenditures and other financing uses -$ (437,066)$ 780,940$ 343,874$ 343,874$

Actual

149

Schedule F-16


FT. BRAGG WATER & WASTEWATER CAPITAL PROJECT






Revenues:

Sales tax refund 800$ 582,333$ 503,593$ 1,085,926$ 1,085,126$

Investment earnings 28,476 32,331 2,281 34,612 6,136

Restricted intergovernmental 55,708,349 39,803,562 11,719,569 51,523,131 (4,185,218)

Total revenues 55,737,625 40,418,226 12,225,443 52,643,669 (3,093,956)

Expenditures:

Construction 49,941,796 32,312,599 14,050,873 46,363,472 3,578,324


Engineering 5,284,525 3,894,410 1,246,408 5,140,818 143,707

Land 185,620 155,999 11,801 167,800 17,820

Contingency 308,484 - - - 308,484

Total expenditures 55,737,625 36,376,535 15,309,082 51,685,617 4,052,008

Revenues over (under) expenditures - 4,041,691 (3,083,639) 958,052 958,052


Transfers in - Enterprise Fund 450,000 450,000 - 450,000 -


Total other financing sources (uses) - 450,000 - 450,000 450,000


(under) expenditures and other financing uses -$ 4,491,691$ (3,083,639)$ 1,408,052$ 1,408,052$

Actual

150

Schedule F-17


WATER PLANT EXPANSION CAPITAL PROJECT






Revenues:

Sales tax refund 488,500$ 537,368$ 275$ 537,643$ 49,143$

Investment earnings 78,300 240,591 - 240,591 162,291

Restricted intergovernmental 35,392,521 35,165,558 116,713 35,282,271 (110,250)

Total revenues 35,959,321 35,943,517 116,988 36,060,505 101,184

Expenditures:

Construction 55,651,649 55,354,793 249,491 55,604,284 47,365

Legal and administration 116,265 103,831 500 104,331 11,934

Engineering 2,766,725 1,939,527 - 1,939,527 827,198

Furniture and fixtures 230,000 209,875 - 209,875 20,125

Land 180,000 175,607 - 175,607 4,393

Interest 4,121,173 3,862,249 - 3,862,249 258,924

Bond issuance 96,002 130,336 46,001 176,337 (80,335)

Total expenditures 63,161,814 61,776,218 295,992 62,072,210 1,089,604

Revenues over (under) expenditures (27,202,493) (25,832,701) (179,004) (26,011,705) 1,190,788


Bond issuance 26,470,000 24,176,286 - 24,176,286 (2,293,714)



Total other financing sources (uses) 27,202,493 25,708,779 - 25,708,779 (1,493,714)


(under) expenditures and other financing uses -$ (123,922)$ (179,004)$ (302,926)$ (302,926)$

Actual

151

Schedule F-18


BUFFALO LAKES WASTEWATER CAPITAL PROJECT






Revenues:

Sales tax refund 27,027$ 43,409$ 1,798$ 45,207$ 18,180$


Restricted intergovernmental 420,000 420,000 - 420,000 -

Total revenues 453,427 470,712 1,849 472,561 19,134

Expenditures:

Construction 2,154,767 2,185,002 (30,235) 2,154,767 -


Engineering 337,518 337,518 - 337,518 -

Materials and supplies 53,944 38,850 14,708 53,558 386

Land 32,530 32,043 - 32,043 487

Contingency 28,161 - - - 28,161

Total expenditures 2,622,794 2,596,751 (15,527) 2,581,224 41,570

Revenues over (under) expenditures (2,169,367) (2,126,039) 17,376 (2,108,663) 60,704





(under) expenditures and other financing uses -$ 43,328$ 17,376$ 60,704$ 60,704$

Actual

152

Schedule F-19


SOUTHWEST NTA/CAMERON HILL CAPITAL PROJECT






Revenues:


Restricted intergovernmental 3,430,000 97,300 291,900 389,200 (3,040,800)

Total revenues 3,430,000 100,147 292,662 392,809 (3,037,191)

Expenditures:

Construction 4,236,405 116,554 - 116,554 4,119,851

Legal and administration 9,999 958 - 958 9,041

Engineering 378,000 230,450 - 230,450 147,550

Materials and supplies 20,000 - - - 20,000

Land 20,000 - - - 20,000

Contingency 206,000 - - - 206,000

Total expenditures 4,870,404 347,962 - 347,962 4,522,442

Revenues over (under) expenditures (1,440,404) (247,815) 292,662 44,847 1,485,251





(under) expenditures and other financing uses -$ 1,192,589$ 292,662$ 1,485,251$ 1,485,251$

Actual

153

Schedule F-20


SOUTH CENTRAL WASTEWATER 1B-1 CAPITAL PROJECT






Revenues:

Sales tax refund -$ -$ 50,783$ 50,783$ 50,783$

Investment earnings - 64 1,067 1,131 1,131

Restricted intergovernmental 1,732,481 - - - (1,732,481)

Total revenues 1,732,481 64 51,850 51,914 (1,680,567)

Expenditures:

Construction 3,706,146 - 1,120,716 1,120,716 2,585,430


Engineering 1,869,675 154,293 23,213 177,506 1,692,169

Materials and supplies - - - - -

Land 180,000 91,519 55,203 146,722 33,278

Interest and fees 124,000 - 7,170 7,170 116,830

Contingency 162,943 - - - 162,943

Total expenditures 6,159,253 286,911 1,236,154 1,523,065 4,636,188

Revenues over (under) expenditures (4,426,772) (286,847) (1,184,304) (1,471,151) 2,955,621


Debt issuance 3,449,000 - 3,449,000 3,449,000 -

Transfers in - Enterprise Fund 977,772 - 170,000 170,000 (807,772)

Transfers out - Enterprise Fund - - - - -

Total other financing sources (uses) 4,426,772 - 3,619,000 3,619,000 (807,772)


(under) expenditures and other financing uses -$ (286,847)$ 2,434,696$ 2,147,849$ 2,147,849$

Actual

154

Schedule F-21


SOUTH CENTRAL WASTEWATER 1B-2 CAPITAL PROJECT






Revenues:

Sales tax refund -$ -$ 1,951$ 1,951$ 1,951$

Investment earnings - 73 1,199 1,272 1,272


Total revenues 1,000,000 73 3,150 3,223 (996,777)

Expenditures:

Construction 3,763,072 - 698,379 698,379 3,064,693


Engineering 1,922,801 190,781 27,106 217,887 1,704,914

Land 247,000 100,480 149,973 250,453 (3,453)

Land right of way 129,000 - - - 129,000

Interest and fees - - 8,273 8,273 (8,273)

Contingency 165,920 - - - 165,920

Total expenditures 6,319,152 306,109 914,763 1,220,872 5,098,280

Revenues over (under) expenditures (5,319,152) (306,036) (911,613) (1,217,649) 4,101,503


Debt issuance 3,937,000 - 3,937,000 3,937,000 -

Transfers in - Enterprise Fund 1,382,152 - 175,000 175,000 (1,207,152)

Total other financing sources (uses) 5,319,152 - 4,112,000 4,112,000 (1,207,152)



Actual

155

Schedule F-22


BRIGHTWATER INFRASTRUCTURE CAPITAL PROJECT






Revenues:

Sales tax refund -$ 3,290$ 18,322$ 21,612$ 21,612$

Investment earnings 62,000 1,027 62,095 63,122 1,122

Restricted intergovernmental 2,553,944 - 1,887,143 1,887,143 (666,801)

Total revenues 2,615,944 4,317 1,967,560 1,971,877 (644,067)

Expenditures:

Construction 2,526,480 - 2,474,676 2,474,676 51,804


Utilities plus 86,171 86,171 - 86,171 -

Engineering 397,100 279,891 84,986 364,877 32,223


Land 74,650 74,650 - 74,650 -

Town of Lillington 140,000 - 99,928 99,928 40,072

NCDOT improvement 210,415 - 210,415 210,415 -

Other improvement 85,616 - - - 85,616

Contingency 107,760 - - - 107,760

Total expenditures 3,718,541 451,824 2,918,232 3,370,056 348,485

Revenues over (under) expenditures (1,102,597) (447,507) (950,672) (1,398,179) (295,582)


Transfers in - Enterprise Fund 1,102,597 1,016,981 85,616 1,102,597 -

Total other financing sources (uses) 1,102,597 1,016,981 85,616 1,102,597 -


(under) expenditures and other financing uses -$ 569,474$ (865,056)$ (295,582)$ (295,582)$

Actual

156

Schedule F-23


SOUTH CENTRAL WASTEWATER 1C-1 CAPITAL PROJECT






Revenues:

Investment earnings -$ -$ 983$ 983$ 983$


Total revenues 1,000,000 - 983 983 (999,017)

Expenditures:

Construction 2,228,179 - 23,363 23,363 2,204,816


Engineering 1,829,952 133,391 15,255 148,646 1,681,306

Land 100,000 975 72,611 73,586 26,414


Contingency 94,175 - - - 94,175

Total expenditures 4,432,665 138,659 158,698 297,357 4,135,308

Revenues over (under) expenditures (3,432,665) (138,659) (157,715) (296,374) 3,136,291


Debt issuance 3,239,000 - 3,239,000 3,239,000 -

Transfers in - Enterprise Fund 193,665 - - - (193,665)




Actual

157

Schedule F-24


SOUTH CENTRAL WASTEWATER 1C-2 CAPITAL PROJECT






Revenues:

Sales tax refund -$ -$ 4,980$ 4,980$ 4,980$



Total revenues 1,000,000 1 5,765 5,766 (994,234)

Expenditures:

Construction 2,334,818 - 78,258 78,258 2,256,560


Engineering 1,820,634 132,259 14,123 146,382 1,674,252

Land 80,000 975 52,725 53,700 26,300


Contingency 54,507 - - - 54,507

Total expenditures 4,475,318 141,681 187,943 329,624 4,145,694

Revenues over (under) expenditures (3,475,318) (141,680) (182,178) (323,858) 3,151,460


Debt issuance 2,586,000 - 2,586,000 2,586,000 -

Transfers in - Enterprise Fund 889,318 - - - (889,318)




Actual

158

Schedule F-25


WASTEWATER MASTER PLAN






Revenues:

Investment earnings -$ 152$ 26$ 178$ 178$

Total revenues - 152 26 178 178

Expenditures:

Engineering 302,709 163,624 137,391 301,015 1,694



Revenues over (under) expenditures (306,709) (166,012) (137,365) (303,377) 3,332


Transfers in - Enterprise Fund 306,709 266,000 40,709 306,709 -

Transfers out - Enterprise Fund - - (3,332) (3,332) (3,332)

Total other financing sources (uses) 306,709 266,000 37,377 303,377 (3,332)


(under) expenditures and other financing uses -$ 99,988$ (99,988)$ -$ -$

Actual

159

Schedule F-26


NE WASTEWATER EXTENSION






Revenues:

Sales tax refund -$ -$ 981$ 981$ 981$

Investment earnings - - 401 401 401

Total revenues - - 1,382 1,382 1,382

Expenditures:

Construction 739,282 - 515,601 515,601 223,681

Legal and administration 15,000 - 5,100 5,100 9,900

Engineering 177,750 - 63,281 63,281 114,469


Land 95,000 - 36,111 36,111 58,889

Contingency 74,000 - - - 74,000

Total expenditures 1,121,032 - 620,093 620,093 500,939

Revenues over (under) expenditures (1,121,032) - (618,711) (618,711) 502,321


Transfers in - Enterprise Fund 1,121,032 - 1,121,032 1,121,032 -

Total other financing sources (uses) 1,121,032 - 1,121,032 1,121,032 -


(under) expenditures and other financing uses -$ -$ 502,321$ 502,321$ 502,321$

Actual

160

Schedule F-27


CAMPBELL OSTEOPATHIC






Revenues:


Total revenues 849,530 - - - (849,530)

Expenditures:

Construction 554,990 - - - 554,990

Legal and administration 10,000 - - - 10,000

Engineering 61,300 - 52,150 52,150 9,150

Road Improvement 200,000 - - - 200,000

Contingency 23,240 - - - 23,240

Total expenditures 849,530 - 52,150 52,150 797,380

Revenues over (under) expenditures -$ -$ (52,150)$ (52,150)$ (52,150)$

Actual

161

Schedule F-28


ENTERPRISE FUND - SOLID WASTE FUND




Variance


Revenues:

Operating revenues:

Solid waste fees 4,004,000$ 3,956,316$ (47,684)$

Other operating revenues - 1,034 1,034

Total operating revenues 4,004,000 3,957,350 (46,650)

Non-operating revenues:

Solid waste state taxes 259,469 236,713 (22,756)

Interest earned on investments 800 505 (295)

Total non-operating revenues 260,269 237,218 (23,051)

Total revenues 4,264,269 4,194,568 (69,701)

Expenditures:

Salaries and employee benefits 682,592 683,393 (801)

Other operating expenses 3,683,940 3,458,035 225,905


Debt service:

Debt principal and interest 135,169 132,552 2,617

Total expenditures 4,510,001 4,282,260 227,741



Transfers in (out) 8,360 8,360 -

Appropriated fund balance 237,372 - (237,372)



(under) expenditures and other financing uses -$ (79,332)$ (79,332)$

162

Schedule F-28


ENTERPRISE FUND - SOLID WASTE FUND




Variance





(under) expenditures and other financing uses (79,332)$

Reconciling items:


Increase in compensated absences (5,699)

Increase in other post-employment benefits (16,302)

Decrease in post-closure liability 237,862

Gain (loss) on sale of assets 1,617

Capital outlay 8,280

Depreciation (178,966)

Change in net assets 14,586$

163

INTERNAL SERVICE FUNDS

Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the County, on a cost-reimbursement basis. INDIVIDUAL FUND DESCRIPTIONS: Workers' Compensation Fund - accounts for accumulated resources as self-insurance for workers' compensation claims. Group Insurance Fund - accounts for the expenditures and revenues for the self-insurance related to the County's health and dental insurance claims.


Schedule G-1



COMBINING STATEMENT OF NET ASSETS

JUNE 30, 2012

Workers' Group

Compensation Insurance

Fund Fund Total

Assets:

Current assets:

Cash and cash equivalents 293,056$ 496,102$ 789,158$

Accounts receivable 21,198 - 21,198

Total assets 314,254 496,102 810,356

Liabilities:

Current liabilities:

Claims payable 424,296 - 424,296

Total current liabilities 424,296 - 424,296

Non-current liabilities:

Claims payable 1,504,321 - 1,504,321

Total liabilities 1,928,617 - 1,928,617

Net Assets:

Unrestricted (1,614,363) 496,102 (1,118,261)

Total net assets (1,614,363)$ 496,102$ (1,118,261)$

164

Schedule G-2



COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN FUND NET ASSETS


Workers' Group


Fund Fund Total

Operating Revenues:

County contribution 737,738$ 696,008$ 1,433,746$

Operating Expenses:

Benefits and premiums 802,630 318,054 1,120,684

Change in net assets (64,892) 377,954 313,062

Net Assets:

Beginning of year - July 1 (1,549,471) 118,148 (1,431,323)

End of year - June 30 (1,614,363)$ 496,102$ (1,118,261)$

165

Schedule G-3


STATEMENT OF CASH FLOWS



Workers' Group


Fund Fund Total

Cash Flows from Operating Activities:

Cash received from customers and users 716,540$ 696,008$ 1,412,548$

Cash paid to suppliers (632,360) (554,421) (1,186,781)

Net cash provided (used) by operating activities 84,180 141,587 225,767

Cash and Cash Equivalents:

Beginning of year - July 1 208,876 354,515 563,391

End of year - June 30 293,056$ 496,102$ 789,158$

Reconciliation of Operating Income (Loss) to Net

Cash Provided (Used) by Operating Activities:

Operating income (loss) (64,892)$ 377,954$ 313,062$

Change in accounts receivable (21,198) - (21,198)

Change in claims payable 170,270 (236,367) (66,097)

Net cash provided (used) by operating activities 84,180$ 141,587$ 225,767$

166

Schedule G-4


WORKERS' COMPENSATION FUND


IN FUND BALANCE - FINANCIAL PLAN AND ACTUAL


Financial Variance

Plan Actual Over/Under

Revenues:

County contributions 970,000$ 737,738$ (232,262)$

Expenditures:

Benefits and premiums 970,000 802,630 167,370


Revenues over (under) expenditures -$ (64,892) (64,892)$

Fund Balance:

Beginning of year - July 1 (1,549,471)

End of year - June 30 (1,614,363)$

167

Schedule G-5


GROUP INSURANCE FUND


IN FUND BALANCE - FINANCIAL PLAN AND ACTUAL


Financial Variance

Plan Actual Over/Under

Revenues:

County contributions 779,873$ 696,008$ (83,865)$

Expenditures:

Benefits and premiums 779,873 318,054 461,819


Revenues over (under) expenditures -$ 377,954 377,954$

Fund Balance:



168


AGENCY FUNDS

Agency funds are custodial in nature and do not involve the measurement of operating results. Agency funds are used to account for assets held by the County as an agent on behalf of others. INDIVIDUAL FUND DESCRIPTIONS: Social Services Trust Fund - accounts for monies held by the Social Services Department for the benefit of certain individuals within the County. Motor Vehicle Tax Fund - accounts for proceeds of the motor vehicle taxes that are collected by the county on behalf of the municipalities within the County. State Vehicle Tax Fund - accounts for the 3% interest penalty on past due motor vehicle property tax bills that are remitted to the North Carolina Department of Motor Vehicles. Fines and Forfeitures Fund - accounts for the collection and payment of fines and forfeitures to the Board of Education. Run and You Are Done Fund – accounts for the storage fees collected when citizens are charged with a “Run and You Are Done Violation” in an attempt to evade law enforcement personnel.


Schedule H-1


AGENCY FUNDS

COMBINING STATEMENT FIDUCIARY ASSETS AND LIABILITIES

JUNE 30, 2012

Social Motor State Fines and Jail

Services Vehicle Motor Forfeitures Canteen

Trust Fund Tax Fund Vehicle Tax Fund Fund Total

Assets:

Cash and investments 118,721$ 78,567$ 5,026$ 25,485$ 10,316$ 238,115$

Total assets 118,721$ 78,567$ 5,026$ 25,485$ 10,316$ 238,115$

Liabilities:

Accounts payable and accrued liabilities 118,721$ 78,567$ 5,026$ 25,485$ 10,316$ 238,115$

Total liabilities 118,721$ 78,567$ 5,026$ 25,485$ 10,316$ 238,115$

169

Schedule H-2


AGENCY FUNDS

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES


Balance Balance

July 1, 2011 Additions Deductions June 30, 2012

Social Services:

Assets:

Cash and investments 126,765$ 569,246$ 577,290$ 118,721$

Liabilities:

Accounts payable and accrued liabilities 126,765$ 569,246$ 577,290$ 118,721$

Motor Vehicle Tax Fund:

Assets:

Cash and investments 63,673$ 5,798,728$ 5,783,834$ 78,567$

Liabilities:

Accounts payable and accrued liabilities 63,673$ 5,798,728$ 5,783,834$ 78,567$

State Motor Vehicle Tax Fund:

Assets:

Cash and investments 4,107$ 71,840$ 70,921$ 5,026$

Liabilities:

Accounts payable and accrued liabilities 4,107$ 71,840$ 70,921$ 5,026$

Fines and Forfeitures Fund

Assets:

Cash and investments -$ 309,108$ 283,623$ 25,485$

Liabilities:

Accounts payable and accrued liabilities -$ 309,108$ 283,623$ 25,485$

Jail Canteen Fund:

Assets:

Cash and investments -$ 187,537$ 177,221$ 10,316$

Liabilities:

Accounts payable and accrued liabilities -$ 187,537$ 177,221$ 10,316$

Totals - All Agency Funds:

Assets:

Cash and investments 194,545$ 6,936,459$ 6,892,889$ 238,115$

Liabilities:

Accounts payable and accrued liabilities 194,545$ 6,936,459$ 6,892,889$ 238,115$

170

OTHER SCHEDULES

Schedule of Ad Valorem Taxes Receivable - General Fund Analysis of Current Tax Levy Statement of Net Assets - Combined Water and Sewer Districts Operating Fund Statement of Revenues, Expenses, and Changes in Fund Net Assets – Combined Water and Sewer Districts Operating Fund


Schedule I-1


GENERAL FUND

SCHEDULE OF AD VALOREM TAXES RECEIVABLE

JUNE 30, 2012

Uncollected Uncollected

Balance Collections Balance

Fiscal Year July 1, 2011 Additions and Credits June 30, 2012

2011-2012 -$ 52,116,730$ 50,733,856$ 1,382,874$

2010-2011 1,196,454 (46,622) 859,227 290,605

2009-2010 291,235 11,820 110,655 192,400

2008-2009 164,589 (726) 41,900 121,963

2007-2008 141,731 (5,806) 14,930 120,995

2006-2007 120,218 (2,207) 8,120 109,891

2005-2006 112,992 (1,630) 6,394 104,968

2004-2005 134,696 (1,202) 6,691 126,803

2003-2004 149,404 (1,587) 6,946 140,871

2002-2003 164,422 (633) 4,768 159,021

2001-2002 150,651 - 150,651 -

Total 2,626,392$ 52,068,137$ 51,944,138$ 2,750,391

Less: Allowance for uncollectible accounts - General Fund 1,445,483

Ad valorem taxes receivable, net - General Fund 1,304,908$

Reconcilement with Revenues:

Ad valorem taxes - General Fund 51,564,765$

Reconciling items:

Interest collected 564,757

Taxes written off 150,651

Adjustments (591,621)

Miscellaneous 255,586

Total collections and credits 51,944,138$

171

Schedule I-2


ANALYSIS OF CURRENT TAX LEVYFOR THE YEAR ENDED JUNE 30, 2012

PropertyExcludingRegistered Registered

Property Total Motor MotorValuation Rate Levy Vehicles Vehicles

Original Levy:Property taxed at current year's rate 7,010,075,586$ 0.7250$ 50,823,048$ 47,141,295$ 3,681,753$

Motor vehicles taxed at prior year's rate 297,569,403 0.7250 2,157,406 - 2,157,406

Total 7,307,644,989 52,980,454 47,141,295 5,839,159

Discoveries:Current years taxes 36,995,839 0.7250 333,897 333,897 -

Total 36,995,839 333,897 333,897 -

Abatements (164,367,477) (1,197,621) (466,478) (731,143)

Total property valuation 7,180,273,351$

Net Levy 52,116,730 47,008,714 5,108,016

Uncollected taxes at June 30, 2012 (1,382,874) (678,560) (704,314)

Current Year's Taxes Collected 50,733,856$ 46,330,154$ 4,403,702$

Current Levy Collection Percentage 97.35% 98.56% 86.21%

Total Levy

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435

8,

751

15,3

31

350,

033

Jo

hnst

on C

ount

y2,

834

37

0

1,35

0

35

3

458

1,

502

30

185

32

4

7,40

6

Oth

er o

pera

ting

reve

nues

2,36

7,60

1

308,

710

1,

127,

812

294,

481

38

2,33

0

1,25

4,63

7

25

,365

15

4,66

4

270,

972

6,

186,

572

Tot

al o

pera

ting

reve

nues

11,5

31,1

07

1,

503,

533

5,49

2,86

8

1,

434,

232

1,86

2,09

1

6,

110,

552

123,

537

753,

273

1,

319,

735

30,1

30,9

29

Op

erat

ing

Exp

ense

s:W

ater

dis

trib

utio

n an

d se

wag

e tr

eatm

ent

5,21

0,60

5

679,

407

2,

482,

084

648,

092

84

1,43

0

2,76

1,19

9

55

,823

34

0,38

5

596,

354

13

,615

,379

Dep

reci

atio

n2,

008,

554

26

1,89

4

956,

779

24

9,82

3

324,

350

1,

064,

371

21,5

18

131,

209

22

9,87

9

5,24

8,37

7

Tot

al o

pera

ting

expe

nses

7,21

9,15

9

941,

301

3,

438,

863

897,

915

1,

165,

780

3,82

5,57

0

77

,341

47

1,59

4

826,

233

18

,863

,756

Ope

ratin

g in

com

e (lo

ss)

4,31

1,94

8

562,

232

2,

054,

005

536,

317

69

6,31

1

2,28

4,98

2

46

,195

28

1,67

9

493,

502

11

,267

,172

No

n-O

per

atin

g R

even

ues

(E

xpen

ses)

:C

ontr

ibut

ion

expe

nse

Inte

rest

ear

ned

on in

vest

men

ts2,

352

30

7

1,12

0

29

3

380

1,

246

25

154

26

9

6,14

6

Inte

rest

and

fees

(1,7

53,9

32)

(228

,694

)

(835

,489

)

(2

18,1

53)

(283

,232

)

(9

29,4

42)

(18,

790)

(114

,576

)

(2

00,7

37)

(4,5

83,0

46)

Tot

al n

on-o

pera

ting

reve

nues

(ex

pens

es)

(1,7

51,5

80)

(228

,387

)

(834

,369

)

(2

17,8

60)

(282

,852

)

(9

28,1

95)

(18,

765)

(114

,423

)

(2

00,4

68)

(4,5

76,9

00)

Inco

me

(loss

) be

fore

cap

ital c

ontr

ibut

ions

a

nd tr

ansf

ers

2,56

0,36

8

333,

845

1,

219,

637

318,

457

41

3,45

9

1,35

6,78

7

27

,430

16

7,25

7

293,

034

6,

690,

273

Cap

ital c

ontr

ibut

ions

7,17

4,45

9

935,

473

3,

417,

570

892,

355

1,

158,

562

3,80

1,88

2

76

,863

46

8,67

4

821,

117

18

,746

,954

Inco

me

(loss

) be

fore

tran

sfer

s9,

734,

827

1,

269,

318

4,63

7,20

6

1,

210,

812

1,57

2,02

1

5,

158,

669

104,

293

635,

931

1,

114,

150

25,4

37,2

25

Tra

nsf

ers:

Intr

afun

d tr

ansf

ers

32,7

65

4,

272

15,6

08

4,07

5

5,

291

17,3

63

351

2,14

0

3,

750

85,6

16

T

rans

fers

out

(155

,376

)

(20,

259)

(7

4,01

4)

(19,

326)

(2

5,09

1)

(82,

337)

(1

,665

)

(10,

150)

(1

7,78

3)

(406

,000

)

Tot

al tr

ansf

ers

(122

,611

)

(15,

987)

(5

8,40

6)

(15,

250)

(1

9,80

0)

(64,

974)

(1

,314

)

(8,0

10)

(14,

033)

(3

20,3

84)

Cha

nge

in n

et a

sset

s9,

612,

216

1,

253,

330

4,57

8,80

0

1,

195,

562

1,55

2,22

1

5,

093,

695

102,

979

627,

921

1,

100,

118

25,1

16,8

42

Net

Ass

ets:

Beg

inni

ng o

f yea

r -

July

193

,471

,725

12,1

87,7

17

44,5

25,4

65

11,6

25,9

58

15,0

94,2

06

49,5

32,4

43

1,00

1,39

6

6,10

6,07

0

10

,697

,835

24

4,24

2,81

5

End

of y

ear

- Ju

ne 3

010

3,08

3,94

1$

13,4

41,0

47$

49,1

04,2

65$

12,8

21,5

20$

16,6

46,4

27$

54,6

26,1

38$

1,10

4,37

5$

6,73

3,99

1$

11

,797

,953

$

26

9,35

9,65

7$

174

STATISTICAL SECTION (unaudited)

This part of Harnett County's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health.

Page

Financial Trends 175 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.

Revenue Capacity 183 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.

Debt Capacity 189 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

Demographic and Economic Information 193 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.

Operating Information 196 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.


2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Gov

ernm

enta

l Act

iviti

es

In

vest

ed in

cap

ital a

sset

s, n

et o

f rel

ated

deb

t20

,511

,775

$ 30

,644

,658

$ 32

,281

,393

$ 39

,542

,666

$

35,2

62,7

55$

37

,271

,906

$

63,1

57,5

01$

36

,370

,124

$

36

,054

,811

$

37

,298

,229

$

Res

tric

ted

5,81

8,48

5

-

-

-

-

-

-

-

-

10

,537

,181

Unr

estr

icte

d(3

0,22

1,65

0)

(35,

601,

131)

(3

0,12

3,48

9)

(29,

422,

525)

(17,

756,

613)

(30,

362,

560)

(82,

235,

980)

(77,

060,

014)

(3

9,22

2,65

9)

(81,

052,

839)

T

otal

gov

ernm

enta

l act

iviti

es n

et a

sset

s(3

,891

,390

)$

(4

,956

,473

)$

2,

157,

904

$

10,1

20,1

41$

17

,506

,142

$

6,90

9,34

6$

(19,

078,

479)

$

(40,

689,

890)

$

(3

,167

,848

)$

(3

3,21

7,42

9)$

Bus

ines

s-T

ype

Act

iviti

es

In

vest

ed in

cap

ital a

sset

s, n

et o

f rel

ated

deb

t57

,333

,007

$ 60

,379

,951

$ 63

,266

,357

$ 76

,151

,245

$

99,5

08,9

87$

11

1,54

0,08

0$

15

0,83

9,43

5$

17

9,93

1,41

6$

232,

432,

386

$

25

0,80

8,92

7$

R

estr

icte

d4,

017,

002

-

-

-

-

-

-

-

-

-

U

nres

tric

ted

-

3,10

5,60

5

3,

877,

325

2,73

6,12

5

7,57

7,23

7

10,3

48,0

70

5,

174,

536

14

,168

,332

14

,966

,902

18

,408

,236

T

otal

bus

ines

s-ty

pe a

ctiv

ities

net

ass

ets

61,3

50,0

09$

63,4

85,5

56$

67,1

43,6

82$

78,8

87,3

70$

10

7,08

6,22

4$

12

1,88

8,15

0$

15

6,01

3,97

1$

19

4,09

9,74

8$

247,

399,

288

$

26

9,21

7,16

3$

Prim

ary

Gov

ernm

ent

In

vest

ed in

cap

ital a

sset

s, n

et o

f rel

ated

deb

t77

,844

,782

$ 91

,024

,609

$ 95

,547

,750

$ 11

5,69

3,91

1$

13

4,77

1,74

2$

14

8,81

1,98

6$

21

3,99

6,93

6$

21

6,30

1,54

0$

268,

487,

197

$

28

8,10

7,15

6$

R

estr

icte

d9,

835,

487

-

-

-

-

-

-

-

-

10,5

37,1

81

U

nres

tric

ted

(30,

221,

650)

(3

2,49

5,52

6)

(26,

246,

164)

(2

6,68

6,40

0)

(1

0,17

9,37

6)

(2

0,01

4,49

0)

(7

7,06

1,44

4)

(6

2,89

1,68

2)

(24,

255,

757)

(6

2,64

4,60

3)

Tot

al p

rimar

y go

vern

men

t net

ass

ets

57,4

58,6

19$

58,5

29,0

83$

69,3

01,5

86$

89,0

07,5

11$

12

4,59

2,36

6$

12

8,79

7,49

6$

13

6,93

5,49

2$

15

3,40

9,85

8$

244,

231,

440

$

23

5,99

9,73

4$

Not

e: H

arne

tt C

ount

y im

plem

ente

d G

AS

B S

tate

men

t 34

in F

isca

l Yea

r 20

03.

In th

e fu

ture

, up

to n

ine

(9)

prio

r ye

ars

will

be

pre

sent

ed w

ith th

e cu

rren

t yea

r to

illu

stra

te th

e C

ount

y's

finan

cial

per

form

ance

ove

r tim

e.

Fis

cal Y

ear

En

ded

Ju

ne

30

Har

net

t C

ou

nty

, No

rth

Car

olin

aN

et A

sset

s b

y C

om

po

nen

tL

ast

Ten

Fis

cal Y

ears

(Un

aud

ited

)

175

Pag

e 1

of 3

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Exp

ense

sG

over

nmen

tal A

ctiv

ities

G

ener

al G

over

nmen

t9,

118,

050

$

11,1

37,6

01$

11,9

22,7

20$

11,7

80,2

92$

11,8

19,1

68$

26,8

13,7

16$

28,9

13,8

61$

47,0

59,6

20$

14,9

78,1

46$

11,2

17,9

67$

P

ublic

Saf

ety

15,8

24,6

91

18,7

34,4

76

20,5

28,9

75

23,9

48,4

39

23,1

95,8

58

25,3

74,0

27

28,1

44,3

40

28,9

52,3

26

30,5

33,5

01

32,1

38,9

70

E

nviro

men

tal P

rote

ctio

n33

6,67

0

339,

734

11

5,27

9

121,

443

12

9,91

7

139,

421

20

2,23

2

193,

652

16

5,46

0

124,

255

Tra

nspo

rtat

ion

156,

504

23

8,34

9

244,

706

21

6,20

1

639,

875

40

7,74

1

639,

194

63

7,30

6

657,

369

64

6,93

9

E

cono

mic

and

phy

sica

l dev

elop

men

t3,

179,

192

3,10

7,64

4

3,

876,

732

4,67

8,09

4

4,

958,

192

5,38

2,77

5

6,

568,

721

6,38

8,62

5

6,

019,

831

6,32

1,30

9

Hum

an S

ervi

ces

22,8

25,2

13

23,1

13,1

23

26,1

48,3

26

27,2

57,0

65

29,1

08,1

85

30,9

64,9

92

27,7

38,7

23

25,4

01,0

52

25,4

17,1

33

25,2

35,9

71

C

ultu

ral a

nd R

ecre

atio

nal

889,

600

1,

036,

545

1,02

5,86

1

1,

188,

384

1,23

3,20

6

1,

570,

301

1,62

1,76

1

1,

678,

221

1,61

6,68

6

62

1,12

9

E

duca

tion

28,7

37,9

78

24,0

34,6

12

18,3

25,2

34

16,9

48,7

07

18,0

06,4

32

19,9

28,8

49

30,0

06,2

35

22,7

01,0

55

22,2

39,6

71

24,1

15,7

65

D

ebt S

ervi

ce:

In

tere

st a

nd fe

es4,

669,

096

3,59

9,18

2

3,

280,

078

2,83

8,66

2

3,

204,

761

4,73

0,87

0

4,

822,

044

5,97

5,58

7

5,

969,

986

6,49

4,89

1

Tot

al g

over

nmen

tal a

ctiv

ities

exp

ense

s85

,736

,994

85

,341

,266

85

,467

,911

88

,977

,287

92

,295

,594

11

5,31

2,69

2

128,

657,

111

13

8,98

7,44

4

107,

597,

783

10

6,91

7,19

6

Bus

ines

s-T

ype

Act

iviti

es

Wat

er a

nd S

ewer

11,6

54,4

43

11,0

46,0

73

11,4

15,9

15

13,1

85,1

06

15,1

17,8

51

16,6

67,2

49

18,4

90,6

60

20,5

17,6

01

35,3

19,7

63

23,4

46,8

03

S

olid

Was

te2,

803,

091

2,93

8,39

9

3,

267,

650

3,47

3,56

4

3,

743,

693

4,11

6,94

0

4,

204,

938

4,00

6,63

9

4,

266,

203

4,18

8,34

2

Tot

al b

usin

ess-

type

act

iviti

es14

,457

,534

13

,984

,472

14

,683

,565

16

,658

,670

18

,861

,544

20

,784

,189

22

,695

,598

24

,524

,240

39

,585

,966

27

,635

,145

Tot

al p

rimar

y go

vern

men

t exp

ense

s10

0,19

4,52

8$

99

,325

,738

$

10

0,15

1,47

6$

10

5,63

5,95

7$

11

1,15

7,13

8$

13

6,09

6,88

1$

151,

352,

709

$

16

3,51

1,68

4$

147,

183,

749

$

13

4,55

2,34

1$

Har

net

t C

ou

nty

, No

rth

Car

olin

aC

han

ges

in N

et A

sset

sL

ast

Ten

Fis

cal Y

ears

(acc

rual

bas

is o

f ac

cou

nti

ng

)

Fis

cal Y

ear

En

ded

Ju

ne

30

(Un

aud

ited

)

176

Pag

e 2

of 3

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Har

net

t C

ou

nty

, No

rth

Car

olin

aC

han

ges

in N

et A

sset

sL

ast

Ten

Fis

cal Y

ears

(acc

rual

bas

is o

f ac

cou

nti

ng

)

Fis

cal Y

ear

En

ded

Ju

ne

30

(Un

aud

ited

)

Pro

gra

m R

even

ues

Gov

ernm

enta

l Act

iviti

es:

C

harg

es fo

r se

rvic

es:

G

ener

al g

over

nmen

t1,

371,

287

$

1,62

9,37

2$

1,

778,

886

$

1,95

3,53

8$

2,

078,

794

$

1,93

0,15

9$

1,

705,

350

$

13,6

47,6

09$

3,20

2,81

7$

4,

198,

163

$

P

ublic

Saf

ety

2,98

0,74

9

3,

530,

676

4,01

5,18

1

5,

208,

884

4,97

2,80

8

6,

165,

054

6,44

5,39

2

5,

931,

375

8,36

1,07

0

8,

949,

860

T

rans

port

atio

n27

6,49

5

253,

134

26

8,59

5

235,

955

24

6,46

8

264,

936

24

2,98

3

277,

895

32

8,19

4

335,

486

Eco

nom

ic a

nd p

hysi

cal d

evel

opm

ent

-

-

-

-

-

-

2,65

2

2,

638

22,1

28

16

,013

H

uman

ser

vice

s2,

906,

427

3,38

7,36

2

3,

835,

695

3,87

2,51

9

4,

021,

385

3,95

1,81

8

4,

189,

982

4,29

0,17

7

3,

812,

310

3,46

3,52

7

Cul

tura

l and

rec

reat

iona

l48

1,89

3

508,

809

64

3,49

9

528,

604

49

7,96

1

25,6

53

46

,505

54,5

82

45

,862

52,2

84

Edu

catio

n2,

949

-

-

-

-

558,

955

43

9,94

8

-

-

-

O

pera

ting

gran

ts a

nd c

ontr

ibut

ions

Gen

eral

gov

ernm

ent

82,8

97

15,0

81

7,11

0

43

,573

5,

138

116,

303

28

6,67

8

1,57

4,07

6

99

9,90

8

904,

224

Pub

lic S

afet

y33

6,91

0

676,

682

85

9,29

7

883,

364

67

6,90

0

685,

126

1,

565,

755

1,89

0,58

1

1,

904,

951

1,62

8,13

9

Env

ironm

ent p

rote

ctio

n6,

205

5,62

9

17

9,36

8

192,

253

31

6,87

3

-

35,3

20

23

,665

15,5

02

8,

962

T

rans

port

atio

n1,

072,

013

907,

992

1,

556,

337

1,18

7,83

2

2,

427,

366

529,

786

1,

165,

357

754,

113

59

4,84

4

382,

897

Eco

nom

ic a

nd p

hysi

cal d

evel

opm

ent

1,45

0,05

3

1,

040,

489

1,05

3,50

3

1,

141,

569

1,18

4,34

9

1,

863,

797

736,

305

66

5,28

8

704,

113

52

8,74

3

H

uman

ser

vice

s12

,221

,625

12

,153

,794

13

,894

,073

13

,928

,078

14

,980

,951

15

,092

,951

14

,393

,776

15

,086

,688

15

,099

,811

15

,120

,209

Cul

tura

l and

rec

reat

iona

l10

,032

6,

268

9,42

1

3,

881

67,5

00

675,

919

18

2,36

0

180,

991

19

6,41

3

149,

410

Edu

catio

n3,

491,

399

3,11

3,36

9

3,

347,

915

3,69

9,75

4

83

8,32

9

2,73

0,88

6

3,

502,

441

3,16

2,91

0

2,

316,

672

1,93

5,24

7

Cap

ital g

rant

s an

d co

ntrib

utio

ns

G

ener

al g

over

nmen

t-

29

2,71

3

24,3

90

-

-

-

-

-

159,

603

-

Pub

lic S

afet

y-

16

,806

7,

061

-

-

-

-

-

-

-

E

cono

mic

and

phy

sica

l dev

elop

men

t-

-

-

-

-

-

-

39

8,78

2

103,

114

78

,395

H

uman

ser

vice

s17

,478

49

,804

11

,000

2,

200

19,6

56

-

-

-

-

-

C

ultu

ral a

nd r

ecre

atio

nal

-

-

-

-

-

15,0

00

8,

000

282,

472

3,

414

28,4

86

Tot

al g

over

nmen

tal a

ctiv

ities

pro

gram

s re

venu

es26

,708

,412

27

,587

,980

31

,491

,331

32

,882

,004

32

,334

,478

34

,606

,343

34

,948

,804

48

,223

,842

37

,870

,726

37

,780

,045

Bus

ines

s-ty

pe a

ctiv

ities

:

Cha

rges

for

serv

ices

:

W

ater

and

Sew

er11

,595

,488

12

,119

,400

13

,726

,990

15

,822

,667

19

,837

,949

21

,950

,390

21

,374

,697

24

,860

,413

28

,170

,863

30

,165

,366

S

olid

Was

te2,

703,

991

2,99

0,09

8

3,

237,

580

3,23

5,53

9

3,

373,

255

3,34

3,75

6

3,

594,

796

3,83

9,87

6

3,

960,

942

3,96

3,61

1

Ope

ratin

g gr

ants

and

con

trib

utio

ns -

wat

er a

nd s

ewer

-

1,24

0,39

4

24

,934

41

1,37

5

-

511,

300

-

-

-

-

C

apita

l gra

nts

and

cont

ribut

ions

- w

ater

and

sew

er4,

918,

071

-

3,01

0,91

4

8,

773,

746

21,4

31,2

92

9,63

8,45

1

31

,384

,786

34

,097

,559

60

,951

,973

18

,746

,953

Tot

al b

usin

ess-

type

act

iviti

es p

rogr

am r

even

ues

19,2

17,5

50

16,3

49,8

92

20,0

00,4

18

28,2

43,3

27

44,6

42,4

96

35,4

43,8

97

56,3

54,2

79

62,7

97,8

48

93,0

83,7

78

52,8

75,9

30

Tot

al p

rimar

y go

vern

men

t pro

gram

rev

enue

s45

,925

,962

$

43

,937

,872

$

51

,491

,749

$

61

,125

,331

$

76

,976

,974

$

70

,050

,240

$

91

,303

,083

$

11

1,02

1,69

0$

130,

954,

504

$

90

,655

,975

$

Net

(ex

pens

e)/r

even

ue

Gov

ernm

enta

l act

iviti

es(5

9,02

8,58

2)$

(57,

753,

286)

$

(5

3,97

6,58

0)$

(56,

095,

283)

$

(5

9,96

1,11

6)$

(80,

706,

349)

$

(9

3,70

8,30

7)$

(90,

763,

602)

$

(6

9,72

7,05

7)$

(69,

137,

151)

$

B

usin

ess-

type

act

iviti

es

4,76

0,01

6

2,

365,

420

5,31

6,85

3

11

,584

,657

25

,780

,952

14

,659

,708

33

,658

,681

38

,273

,608

53

,497

,811

25

,240

,785

Tot

al p

rimar

y go

vern

men

t net

exp

ense

(54,

268,

566)

$

(5

5,38

7,86

6)$

(48,

659,

727)

$

(4

4,51

0,62

6)$

(34,

180,

164)

$

(6

6,04

6,64

1)$

(60,

049,

626)

$

(5

2,48

9,99

4)$

(16,

229,

246)

$

(4

3,89

6,36

6)$

177

Pag

e 3

of 3

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Har

net

t C

ou

nty

, No

rth

Car

olin

aC

han

ges

in N

et A

sset

sL

ast

Ten

Fis

cal Y

ears

(acc

rual

bas

is o

f ac

cou

nti

ng

)

Fis

cal Y

ear

En

ded

Ju

ne

30

(Un

aud

ited

)

Gen

eral

Rev

enu

es a

nd

Oth

er C

han

ges

in N

et A

sset

sG

over

nmen

tal a

ctiv

ities

A

d va

lore

m ta

xes

30,8

62,0

61$

36,5

38,8

96$

38,0

52,7

69$

40,4

20,0

76$

42,3

22,4

60$

44,1

99,4

61$

46,9

69,5

67$

56,5

60,7

48$

56,3

72,1

31$

58,2

98,1

00$

Lo

cal o

ptio

n sa

les

tax

13,2

41,6

95

15,5

68,6

84

16,9

63,2

04

18,1

24,2

58

20,0

68,2

11

20,7

57,2

36

16,5

08,2

36

12,3

67,1

75

12,2

88,7

72

13,9

14,5

55

O

ther

taxe

s65

1,91

9

796,

738

83

3,03

2

927,

666

1,

083,

171

1,08

7,66

8

95

4,29

3

1,84

4,61

0

1,

899,

527

2,00

4,88

3

Unr

estr

icte

d gr

ants

and

con

trib

utio

ns48

,741

10

8,34

1

86,1

53

1,46

2,30

0

66

8,08

5

144,

532

23

4,71

3

70,4

13

12

5,84

5

347,

202

Inve

stm

ent e

arni

ngs

358,

035

77

3,62

7

527,

522

90

1,16

7

1,48

5,91

2

1,

516,

019

451,

055

91

,358

33,0

12

15

,492

M

isce

llane

ous

1,47

6,61

8

1,

505,

336

2,74

4,09

2

1,

940,

896

1,50

0,07

9

2,

050,

793

2,14

9,50

3

-

-

-

Gai

n on

sal

e of

cap

ital a

sset

-

-

-

129,

507

-

38

,318

13,8

50

-

-

-

Tra

nsfe

rs85

1,26

9

478,

601

1,

884,

185

151,

650

21

9,19

9

315,

526

43

9,26

5

72,8

19

47

5,00

1

312,

024

Tot

al g

over

nmen

tal a

ctiv

ities

47,4

90,3

38

55,7

70,2

23

61,0

90,9

57

64,0

57,5

20

67,3

47,1

17

70,1

09,5

53

67,7

20,4

82

71,0

07,1

23

71,1

94,2

88

74,8

92,2

56

Bus

ines

s-ty

pe a

ctiv

ities

:

Oth

er ta

xes

85,6

81

90,1

98

95,5

71

101,

665

10

7,93

0

114,

575

16

0,78

5

210,

121

26

4,14

5

236,

713

Inve

stm

ent e

arni

ngs

67,1

58

98,3

24

66,2

86

162,

363

24

0,28

4

243,

356

46

,845

25,1

73

12

,585

6,65

1

Mis

cella

neou

s51

,761

51

,392

62

,401

57

,179

2,

288,

887

38,8

91

69

5,73

3

-

-

-

G

ain

on s

ale

of c

apita

l ass

et12

,075

8,

814

1,20

0

(1

0,52

6)

-

60,9

23

3,

042

-

-

-

T

rans

fers

(851

,269

)

(4

78,6

01)

(1,8

84,1

85)

(1

51,6

50)

(219

,199

)

(3

15,5

26)

(4

39,2

65)

(7

2,81

9)

(475

,001

)

(312

,024

)

Tot

al b

usin

ess-

type

act

iviti

es(6

34,5

94)

(229

,873

)

(1

,658

,727

)

159,

031

2,

417,

902

142,

219

46

7,14

0

162,

475

(1

98,2

71)

(6

8,66

0)

Tot

al p

rimar

y go

vern

men

t46

,855

,744

$

55

,540

,350

$

59

,432

,230

$

64

,216

,551

$

69

,765

,019

$

70

,251

,772

$

68

,187

,622

$

71

,169

,598

$

70

,996

,017

$

74

,823

,596

$

Ch

ang

e in

Net

Ass

ets

Gov

ernm

enta

l act

iviti

es(1

1,53

8,24

4)$

(1,9

83,0

63)

$

7,

114,

377

$

7,96

2,23

7$

7,

386,

001

$

(10,

596,

796)

$

(2

5,98

7,82

5)$

(19,

756,

479)

$

1,

467,

231

$

5,75

5,10

5$

Bus

ines

s-ty

pe a

ctiv

ities

4,12

5,42

2

2,

135,

547

3,65

8,12

6

11

,743

,688

28

,198

,854

14

,801

,927

34

,125

,821

38

,436

,083

53

,299

,540

25

,172

,125

Tot

al p

rimar

y go

vern

men

t(7

,412

,822

)$

152,

484

$

10

,772

,503

$

19

,705

,925

$

35

,584

,855

$

4,

205,

131

$

8,13

7,99

6$

18

,679

,604

$

54

,766

,771

$

30

,927

,230

$

Not

e: H

arne

tt C

ount

y im

plem

ente

d G

AS

B S

tate

men

t 34

in F

isca

l Yea

r 20

03.

In th

e fu

ture

, up

to n

ine

(9)

prio

r ye

ars

will

be

pre

sent

ed w

ith th

e cu

rren

t yea

r to

illu

stra

te th

e C

ount

y's

finan

cial

per

form

ance

ove

r tim

e.

178

Bu

sin

es

s-t

yp

e

Ac

tivit

ies

Fis

ca

l Y

ea

rA

d V

alo

rem

Sa

les

Ta

x

Ex

cis

e S

tam

p -

Rea

l P

rop

ert

yO

cc

up

an

cy T

ax

Cab

le F

ran

ch

ise

Lic

en

se

So

lid

Wa

ste

To

tal

20

03

30

,86

2,0

61

$

1

3,2

41

,69

5$

22

6,3

15

$

27

6,2

93

$

14

9,3

11

$

85

,68

1$

44

,84

1,3

56

$

20

04

36

,53

8,8

96

1

5,5

68

,68

4

32

5,9

96

30

4,9

54

16

5,7

88

90

,19

8

52

,99

4,5

16

20

05

38

,05

2,7

69

1

6,9

63

,20

4

35

8,9

56

28

9,0

62

18

5,0

14

95

,57

1

55

,94

4,5

76

20

06

40

,42

0,0

76

1

8,1

24

,25

8

47

8,8

06

27

0,4

06

17

8,4

54

10

1,6

65

59

,57

3,6

65

20

07

42

,32

2,4

60

2

0,0

68

,21

1

56

8,1

95

33

2,3

59

18

3,1

53

10

7,9

30

63

,58

2,3

08

20

08

44

,19

9,4

61

2

0,7

57

,23

6

45

3,5

52

39

3,7

21

21

5,6

03

11

4,5

75

66

,13

4,1

48

20

09

46

,96

9,5

67

1

6,5

08

,23

6

35

4,9

55

36

2,7

17

23

6,6

21

17

8,1

88

64

,61

0,2

84

20

10

56

,56

0,7

48

1

2,3

67

,17

5

38

0,8

83

37

2,1

87

22

2,4

18

21

0,1

21

70

,11

3,5

32

20

11

56

,37

2,1

31

1

2,2

88

,77

2

37

3,0

65

39

4,0

58

24

6,2

33

22

4,1

53

69

,89

8,4

12

20

12

58

,04

3,5

32

1

4,8

90

,15

0

38

0,6

40

41

7,6

02

23

2,0

46

23

6,7

13

74

,20

0,6

83

Ha

rnett

Co

un

ty,

No

rth

Caro

lin

a

Ta

x R

eve

nu

es

By S

ou

rce

Note

: H

arn

ett

Co

un

ty im

ple

me

nte

d G

AS

B S

tate

me

nt

34

in

Fis

ca

l Y

ea

r 2

00

3.

In

th

e f

utu

re,

up

to

nin

e (

9)

pri

or

ye

ars

will

be

pre

se

nte

d w

ith

th

e c

urr

en

t ye

ar

to

illu

str

ate

th

e C

ou

nty

's f

ina

ncia

l p

erf

orm

an

ce

ove

r tim

e.

Go

ve

rnm

en

tal

Ac

tivit

ies

(Un

au

dit

ed

)

Las

t T

en

Fis

ca

l Y

ears

(acc

rual

bas

is o

f a

cc

ou

nti

ng

)

179

2003

2004

120

0520

0620

07 2

2008

2009

³20

1020

1120

12

Gen

eral

Fu

nd

R

eser

ved

5,84

1,97

3$

7,07

2,50

4$

7,24

7,01

2$

8,95

1,36

8$

9,59

0,85

7$

11,3

34,3

21$

9,

113,

259

$

7,

586,

459

$

-$

-$

U

nres

erve

d5,

701,

058

9,

557,

195

11

,131

,214

9,84

5,74

6

13,2

69,3

57

13

,642

,598

9,32

7,60

2

8,85

8,32

5

-

-

Non

-Spe

ndab

le-

-

-

-

-

-

-

-

52,2

71

74

8,22

4

R

estr

icte

d-

-

-

-

-

-

-

-

7,34

7,53

0

8,

789,

704

C

omm

itted

-

-

-

-

-

-

-

-

-

57

4,13

3

A

ssig

ned

-

-

-

-

-

-

-

-

-

-

Una

ssig

ned

-

-

-

-

-

-

-

-

11

,279

,350

13

,212

,441

Tot

al G

ener

al F

und

11,5

43,0

31$

16

,629

,699

$

18,3

78,2

26$

18

,797

,114

$

22,8

60,2

14$

24

,976

,919

$

18,4

40,8

61$

16,4

44,7

84$

18,6

79,1

51$

23,3

24,5

02$

All

oth

er g

ove

rnm

enta

l fu

nd

s

Res

erve

d5,

728,

330

$

3,

544,

560

$

5,

425,

700

$

7,

316,

481

$

5,

416,

089

$

2,

704,

804

$

1,

001,

871

$

52

4,21

5$

-$

-$

U

nres

erve

d, u

ndes

igna

ted

repo

rted

in

-

-

-

-

39,7

82,0

95

20

,237

,681

2,87

0,39

9

-

-

-

maj

or g

over

nmen

tal f

unds

U

nres

erve

d, r

epor

ted

in n

onm

ajor

:

S

peci

al R

even

ue81

,387

45

1,48

6

63

5,57

8

68

9,25

0

73

1,40

1

41

2,40

6

97

5,14

7

71

8,29

9

-

-

N

on-S

pend

able

-

-

-

-

-

-

-

-

-

2,

612

R

estr

icte

d-

-

-

-

-

-

-

-

6,70

0,40

4

2,

212,

333

C

omm

itted

-

-

-

-

-

-

-

-

19

8,65

2

103,

168

Ass

igne

d-

-

-

-

-

-

-

-

143,

764

60

,662

U

nass

igne

d-

-

-

-

-

-

-

-

(974

,816

)

(470

,924

)

Cap

ital P

roje

cts

15,7

04,7

03

8,

170,

493

5,

226,

273

2,

432,

420

2,

189,

267

7,

617,

069

28

,479

,842

10

,366

,092

-

-

Tot

al a

ll ot

her

gove

rnm

enta

l fun

ds21

,514

,420

$

12,1

66,5

39$

11

,287

,551

$

10,4

38,1

51$

48

,118

,852

$

30,9

71,9

60$

33

,327

,259

$

11

,608

,606

$

6,

068,

004

$

1,90

7,85

1$

1 D

ecre

ase

in F

und

Bal

ance

for

all o

ther

gov

ernm

enta

l fun

ds is

due

to th

e cl

osin

g of

var

ious

pro

ject

s fr

om th

e pr

ior

year

.

Not

e: H

arne

tt C

ount

y im

plem

ente

d G

AS

B S

tate

men

t 34

in F

isca

l Yea

r 20

03.

In th

e fu

ture

, up

to n

ine

(9)

prio

r ye

ars

will

be

pre

sent

ed w

ith th

e cu

rren

t yea

r to

illu

stra

te th

e C

ount

y's

finan

cial

per

form

ance

ove

r tim

e.

3 T

he in

crea

se in

Fun

d B

alan

ce fo

r al

l oth

er g

over

nmen

tal f

unds

is d

ue to

the

cash

on

depo

sit w

ith a

n es

crow

age

nt fo

r th

e B

oon

e T

rail

Ele

men

tary

Sch

ool C

apita

l Pro

ject

Fun

d.

C

apita

l Pro

ject

Fun

ds.

Har

net

t C

ou

nty

, No

rth

Car

olin

aF

un

d B

alan

ces

of

Go

vern

men

tal F

un

ds

Las

t T

en F

isca

l Yea

rs(m

od

ifie

d a

ccru

al b

asis

of

acco

un

tin

g)

(Un

aud

ited

)

Fis

cal Y

ear

En

ded

Ju

ne

30

2 T

he in

crea

se in

Fun

d B

alan

ce fo

r al

l oth

er g

over

nmen

tal f

unds

is d

ue to

the

cash

on

depo

sit w

ith a

n es

crow

age

nt fo

r th

e La

w E

nfor

cem

ent E

xpan

sion

and

Ove

rhill

s E

lem

enta

ry C

apita

l

180

2003

2004

2005

2006

2007

12008

2009

2010

2011

2012

Reven

ues

Ad v

alo

rem

taxes

32,0

79,8

11

$

37,1

66,8

36

$

38,6

43,9

43

$

40,8

85,7

46

$

42,3

60,1

97

$

44,6

72,7

44

$

47,0

60,0

09

$

55,4

07,6

12

$

56,4

37,1

82

$

58,0

43,5

32

$

Oth

er

taxes a

nd lic

enses

13,8

93,6

14

16,3

65,4

22

17,7

96,2

36

19,0

51,9

24

21,1

53,1

47

21,8

20,1

12

17,4

62,5

29

14,2

11,7

85

14,1

88,2

99

15,9

19,4

38

Unre

str

icte

d Inte

rgovern

menta

l48,7

41

108,3

41

86,1

53

55,1

49

111,4

81

121,2

82

97,4

70

70,4

13

125,8

45

347,2

02

Restr

icte

d Inte

rgovern

menta

l18,6

88,6

12

17,4

46,0

97

19,4

77,7

27

19,9

99,1

56

18,9

67,3

65

21,6

90,3

72

21,7

67,4

68

22,8

69,2

84

21,6

15,0

25

20,5

80,5

05

Perm

its a

nd fees

2,4

56,9

59

2,7

94,4

94

2,9

19,3

26

3,1

81,8

55

3,3

49,8

08

4,1

36,9

68

3,2

96,5

21

3,1

53,0

29

3,3

82,0

05

3,6

21,7

52

Sale

s a

nd s

erv

ices

5,5

59,8

92

6,5

14,8

59

7,6

22,5

30

8,6

17,6

45

8,5

30,5

03

8,7

59,6

07

9,2

11,3

09

7,6

48,9

67

9,9

97,0

03

9,4

81,2

57

Investm

ent earn

ings

744,8

38

778,0

59

537,6

00

1,0

23,8

17

1,5

57,8

86

2,2

86,0

39

470,0

83

91,3

58

33,0

12

15,4

92

Contr

ibutions

775

832,5

30

1,4

71,7

48

2,4

90,4

99

2,0

37,7

82

23,2

50

164,8

85

-

-

-

Oth

er

genera

l re

venues

1,5

02,4

39

2,1

94,3

79

2,7

93,1

79

2,1

28,8

50

1,6

08,1

89

2,4

14,7

23

2,1

02,5

32

1,9

51,4

79

1,9

12,8

34

2,1

13,6

09

T

ota

l re

venues

74,9

75,6

81

84,2

01,0

17

91,3

48,4

42

97,4

34,6

41

99,6

76,3

58

105,9

25,0

97

101,6

32,8

06

105,4

03,9

27

107,6

91,2

05

110,1

22,7

87

Exp

en

dit

ure

s

Genera

l govern

ment

10,3

93,3

84

11,8

13,8

70

14,9

37,1

19

15,5

94,7

81

14,0

87,3

33

40,9

76,3

58

33,5

88,8

24

31,8

22,0

46

14,8

69,7

28

10,2

14,2

97

Public

safe

ty15,9

70,5

70

18,6

64,8

58

20,4

08,2

43

23,7

29,8

57

22,6

61,8

65

25,1

71,2

03

27,4

71,9

31

29,3

85,4

73

29,2

94,0

16

31,2

18,6

22

Environm

enta

l pro

tection

91,2

10

122,5

73

164,9

91

118,1

13

129,9

17

136,0

95

192,1

34

184,1

47

163,2

85

118,1

66

Tra

nsport

ation

48,3

09

78,6

93

89,6

13

90,5

47

176,9

58

132,0

91

314,3

78

149,4

35

149,8

39

160,0

68

Econom

ic a

nd p

hys

ical

d

evelo

pm

ent

3,7

07,5

73

3,0

62,3

06

5,0

12,2

25

5,3

50,2

14

6,7

79,2

69

6,1

30,5

42

6,5

56,5

10

6,2

14,1

96

5,9

31,8

86

6,2

70,6

44

Hum

an s

erv

ices

22,8

39,0

33

23,2

37,4

55

26,4

46,7

17

27,2

76,4

63

29,2

65,2

49

30,8

93,9

00

27,1

67,8

25

24,9

11,5

94

25,0

78,8

28

24,6

22,5

10

Cultura

l and r

ecre

ational

805,6

54

985,8

71

1,0

58,2

45

1,2

27,7

03

1,2

06,4

77

1,5

63,9

68

1,5

56,1

75

1,5

89,4

85

1,5

49,7

73

1,3

54,8

84

Education

29,0

87,9

39

24,0

34,6

12

18,3

35,7

54

16,9

48,7

07

18,0

06,4

32

19,9

28,8

49

30,0

06,2

35

22,7

01,0

55

22,2

39,6

71

24,1

15,7

65

Debt S

erv

ice

P

rincip

al

3,7

19,3

08

8,8

50,2

13

5,1

24,9

59

5,7

10,0

97

11,3

49,8

47

7,2

18,6

31

8,0

01,5

20

7,7

21,4

89

6,6

66,0

65

7,1

76,8

38

Inte

rest and fees

4,2

99,9

51

3,6

95,9

64

3,2

46,7

17

3,1

53,1

51

2,9

91,2

34

4,6

22,3

27

4,9

11,0

09

4,5

62,2

24

6,0

32,8

25

5,1

39,6

00

D

ebt is

suance c

ost

-

-

-

-

-

558

803,9

00

-

-

-

Tota

l prim

ary

govern

ment

e

xpenses

90,9

62,9

31

94,5

46,4

15

94,8

24,5

83

99,1

99,6

33

106,6

54,5

81

136,7

74,5

22

140,5

70,4

41

129,2

41,1

44

111,9

75,9

16

110,3

91,3

94

Excess o

f re

venues o

ver

(

under)

expenditure

s(1

5,9

87,2

50)

(10,3

45,3

98)

(3,4

76,1

41)

(1

,764,9

92)

(6,9

78,2

23)

(30,8

49,4

25)

(38,9

37,6

35)

(23,8

37,2

17)

(4,2

84,7

11)

(268,6

07)

Fis

cal Y

ear

En

ded

Ju

ne 3

0

Harn

ett

Co

un

ty, N

ort

h C

aro

lin

a

Ch

an

ges in

Fu

nd

Bala

nces o

f G

overn

men

tal F

un

ds

Last

Ten

Fis

cal Y

ears

(mo

dif

ied

accru

al b

asis

of

acco

un

tin

g)

(Un

au

dit

ed

)

181

2003

2004

2005

2006

2007

12008

2009

2010

2011

2012

Fis

cal Y

ear

En

ded

Ju

ne 3

0

Harn

ett

Co

un

ty, N

ort

h C

aro

lin

a

Ch

an

ges in

Fu

nd

Bala

nces o

f G

overn

men

tal F

un

ds

Last

Ten

Fis

cal Y

ears

(mo

dif

ied

accru

al b

asis

of

acco

un

tin

g)

(Un

au

dit

ed

)

Oth

er

fin

an

cin

g s

oru

ces (

uses)

Bonds a

nd C

apital le

ase

issuance

10,9

58

24,1

81,3

48

3,8

53,7

95

1,1

82,8

30

48,5

02,8

24

15,5

03,7

12

35,2

90,3

78

-

20,8

03,0

00

329,4

85

Long-t

erm

debt re

funded

-

-

-

-

-

-

-

-

-

24,0

33,6

90

Bond p

rem

ium

-

1,1

16,7

22

-

-

-

-

656,3

43

-

35,4

75

-

Paym

ent to

escro

w a

gent

-

(20,6

10,4

63)

-

-

-

-

-

-

(20,0

35,0

00)

(23,9

21,3

94)

Tra

nsfe

rs in

3,7

29,3

21

3,4

30,7

46

4,5

35,3

67

3,7

21,3

94

6,2

78,7

26

5,8

92,8

78

5,9

87,5

31

423,1

25

1,9

42,9

17

3,7

63,8

94

Tra

nsfe

rs o

ut

(2,8

78,0

52)

(2,9

52,1

45)

(4,0

43,4

82)

(3

,569,7

44)

(6,0

59,5

26)

(5,5

77,3

52)

(5,5

48,2

66)

-

(1,7

67,9

16)

(3,4

51,8

70)

T

ota

l oth

er

financin

g

s

ourc

es (

uses)

862,2

27

5,1

66,2

08

4,3

45,6

80

1,3

34,4

80

48,7

22,0

24

15,8

19,2

38

36,3

85,9

86

423,1

25

978,4

76

753,8

05

Net change in fund

b

ala

nces

(15,1

25,0

23)

$

(5,1

79,1

90)

$

869,5

39

$

(430,5

12)

$

41,7

43,8

01

$

(15,0

30,1

87)

$

(2,5

51,6

49)

$

(23,4

14,0

92)

$

(3,3

06,2

35)

$

485,1

98

$

Debt serv

ice a

s a

perc

enta

ge o

f

o

f non-c

apital expenditure

s9.0

2%

13.6

7%

9.4

5%

9.6

1%

14.1

1%

9.9

0%

9.7

2%

9.7

4%

11.4

1%

11.2

8%

1

The incre

ase in T

ota

l oth

er

Fin

ancin

g S

ourc

es

is d

ue to the issuance o

f th

e 2

007 C

ert

ific

ate

s o

f P

art

icip

ation for

the L

aw

Enfo

rcem

ent C

ente

r,

O

verh

ills E

lem

enta

ry S

chool, C

oats

Ele

menta

ry S

chool G

ymnasiu

m p

roje

cts

.

182

Fis

ca

l Y

ea

rA

d V

alo

rem

Sa

les

Ta

x

Ex

cis

e S

tam

p

Rea

l P

rop

ert

y O

cc

up

an

cy T

ax

Ca

ble

TV

Fra

nc

his

e

To

tal

20

02

29

,49

9,4

46

$

1

1,5

70

,77

5$

22

2,7

33

$

1

71

,30

6$

14

2,8

21

$

4

1,6

07

,08

1$

20

03

32

,07

9,8

11

1

3,2

41

,69

5

22

6,3

15

2

76

,29

3

14

9,3

11

4

5,9

73

,42

5

20

04

37

,16

6,8

36

1

5,5

68

,68

4

32

5,9

96

3

04

,95

4

16

5,7

88

5

3,5

32

,25

8

20

05

38

,64

3,9

43

1

6,9

63

,20

4

35

8,9

56

2

89

,06

2

18

5,0

14

5

6,4

40

,17

9

20

06

40

,88

5,7

46

1

8,1

24

,25

8

47

8,8

06

2

70

,40

6

17

8,4

54

5

9,9

37

,67

0

20

07

42

,32

2,4

60

2

0,0

68

,21

1

56

8,1

95

3

32

,35

9

18

3,1

53

6

3,4

74

,37

8

20

08

44

,19

9,4

61

2

0,7

57

,23

6

45

3,5

52

3

93

,72

1

21

5,6

03

6

6,0

19

,57

3

20

09

42

,55

1,8

22

1

5,3

37

,11

7

35

4,9

55

3

62

,71

7

23

6,6

21

5

8,8

43

,23

2

20

10

55

,40

7,6

12

1

3,2

36

,29

7

38

0,8

83

3

72

,18

7

22

2,4

18

6

9,6

19

,39

7

20

11

50

,87

9,7

84

1

2,2

88

,77

2

37

3,0

65

3

94

,05

8

24

6,2

33

6

4,1

81

,91

2

20

12

52

,12

9,5

22

1

3,9

14

,55

5

38

0,6

40

4

17

,60

2

23

2,0

46

6

7,0

74

,36

5

1

Inclu

de

s A

d V

alo

rem

Ta

x a

nd

Oth

er

Ta

xe

s a

nd

Lic

en

se

s

(Un

au

dit

ed

)

Ha

rnett

Co

un

ty,

No

rth

Caro

lin

a

Ge

ne

ral

Go

ve

rnm

en

tal

Ta

x R

eve

nu

es

by S

ou

rce

1

Las

t T

en

Fis

ca

l Y

ears

(mo

dif

ied

acc

rual

bas

is o

f a

cc

ou

nti

ng

)

183

Fis

ca

l

Esti

mate

dA

ss

es

se

d

Yea

r

Les

s:

To

tal

To

tal

Actu

al

Valu

e a

s a

En

ded

Rea

lP

ub

lic

M

oto

r T

ax

Exe

mp

tA

ss

es

se

dD

irec

tT

ax

ab

leP

erc

en

tag

e o

f

Ju

ne 3

0P

rop

ert

yS

erv

ice

1V

eh

icle

Oth

er

Rea

l P

rop

ert

y 2

Valu

eT

ax

Rate

Valu

e 3

Actu

al

Valu

e 4

19

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,99

3

40

1.6

7%

20

12

30

,13

0,9

29

13

,61

5,3

80

16

,51

5,5

49

54

5,0

00

61

4,5

60

1,1

59

,56

0

14

24

.29

%

1

T

ota

l o

pe

ratin

g r

eve

nu

es in

clu

din

g in

tere

st

2

T

ota

l o

pe

ratin

g e

xp

en

se

s e

xclu

siv

e o

f d

ep

recia

tio

n a

nd

am

ort

iza

tio

n

Note

: D

eta

ils r

eg

ard

ing

th

e C

ou

nty

's o

uts

tan

din

g d

eb

t ca

n b

e f

ou

nd

in

th

e n

ote

s t

o t

he

fin

an

cia

l sta

tem

en

ts.

Ha

rnett

Co

un

ty,

No

rth

Caro

lin

a

Ple

dg

ed

Reve

nu

e C

ove

rag

e -

Wa

ter

& S

ew

er

Las

t T

en

Fis

ca

l Y

ears

(Un

au

dit

ed

)

192

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Deb

t Lim

it30

2,12

3$

365,

835

$

37

5,68

8$

394,

282

$

41

3,76

8$

438,

721

$

45

5,85

0$

54

5,72

3$

564,

797

$

57

4,42

2$

Tot

al n

et d

ebt a

pplic

able

to

lim

it95

,919

92

,645

89

,408

93

,927

13

3,35

3

13

9,73

7

16

5,74

6

15

7,09

5

148,

840

15

2,54

6

Lega

l deb

t mar

gin

206,

203

$

27

3,19

0$

286,

280

$

30

0,35

6$

280,

415

$

29

8,98

3$

290,

105

$

398,

306

$

41

5,94

8$

421,

876

$

Tot

al n

et d

ebt a

pplic

able

to th

e

limit

as a

per

cent

age

of d

ebt l

imit

31.7

5%25

.33%

23.8

0%23

.82%

32.3

1%31

.85%

36.3

6%28

.29%

26.3

5%26

.56%

Leg

al D

ebt

Mar

gin

Cal

cula

tio

n f

or

Fis

cal Y

ear

2012

Ass

esse

d V

alue

Deb

t Lim

it (

8% o

f tot

al a

sses

sed

valu

e)

Deb

t app

licab

le to

lim

it:

Cer

tific

ates

of P

artic

ipat

ion

I

nsta

llmen

t Pur

chas

e

Rev

olvi

ng L

oan

I

ssue

d an

d ou

tsta

ndin

g ge

nera

l bon

ded

debt

- e

nter

pris

e fu

nds

S

tate

Bon

d Lo

ans

R

even

ue B

onds

O

blig

atio

ns u

nder

cap

ital l

ease

S

ubto

tal

A

utho

rized

and

uni

ssue

d de

bt

T

otal

Gro

ss D

ebt

Less

: S

tatu

tory

ded

uctio

ns

Bon

ds is

sued

and

ous

tand

ing

for

wat

er a

nd s

ewer

pur

pose

s

Rev

enue

Bon

ds

Aut

horiz

ed a

nd u

niss

ued

debt

T

otal

am

ount

of d

ebt a

pplic

able

to d

ebt l

imit

Lega

l deb

t mar

gin

$421

,876

,331

574,

421,

868

20

0,64

7,53

7

211,

992,

537

78

,454

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48,1

01,6

39

23

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35,2

97,0

00

2,

177,

987

152,

545,

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59,4

47,0

00

437,

297

11,3

45,0

00

35

,297

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11,3

45,0

00

12

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80,2

73,3

51

Fo

r Y

ear

En

ded

Ju

ne

30

Har

net

t C

ou

nty

, No

rth

Car

olin

aC

om

pu

tati

on

of

Leg

al D

ebt

Mar

gin

Las

t T

en F

isca

l Yea

rs(a

mo

un

ts e

xpre

ssed

in t

ho

usa

nd

s)(U

nau

dit

ed)

193

Fis

ca

l

Ye

ar

En

de

dP

ers

on

al

Pe

r C

ap

ita

Me

dia

nS

ch

oo

lU

ne

mp

loym

en

t

Ju

ne

30

Po

pu

lati

on

1In

co

me

2In

co

me

2A

ge

1E

nro

llm

en

t 3

Ra

te 4

20

03

98

,90

8

2,2

25

,23

2,1

84

$

22

,49

8$

3

2.9

41

6,8

73

7

.4%

20

04

10

0,2

71

2

,37

2,3

11

,58

9

23

,65

93

3.1

9

17

,52

5

5.9

%

20

05

10

1,7

37

2

,53

0,0

97

,45

3

24

,86

93

3.4

2

17

,89

2

5.6

%

20

06

10

3,8

84

3

,34

8,5

96

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6

32

,23

43

3.5

8

18

,27

4

5.2

%

20

07

10

6,2

83

2

,17

0,2

98

,86

0

20

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03

41

8,8

76

5

.1%

20

08

11

0,0

98

2

,23

1,0

25

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2

20

,26

43

51

8,9

68

6

.6%

20

09

11

2,0

30

N

/A1

9,9

68

3

5

18

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8

11

.8%

20

10

11

5,7

61

N

/A2

8,0

15

3

5

18

,76

4

10

.8%

20

11

11

4,6

78

N

/A1

8,7

25

3

4

19

,01

1

11

.8%

20

12

12

1,4

17

N

/AN

/A1

9,3

78

1

1.2

%

So

urc

es:

1.

NC

Sta

te D

em

og

rap

hic

s

3.

Ha

rne

tt C

ou

nty

Bo

ard

of

Ed

uca

tio

n

4.

NC

Em

plo

ym

en

t S

ecu

rity

Co

mm

issio

n

Ha

rnett

Co

un

ty,

No

rth

Caro

lin

a

De

mo

gra

ph

ic a

nd

Ec

on

om

ic S

tati

sti

cs

Las

t T

en

Fis

ca

l Y

ears

(Un

au

dit

ed

)

2.

NC

Dep

art

me

nt

of

Com

me

rce

. L

ate

st

fig

ure

s a

va

ilab

le a

re r

efle

cte

d.

Fo

r th

e f

isca

l ye

ars

en

din

g 2

00

9 a

nd

fo

rwa

rd,

the

Pe

rso

na

l In

co

me

exp

resse

d a

s a

tota

l d

olla

r a

mo

un

t fo

r th

e C

ou

nty

is n

o lo

ng

er

ava

ilab

le.

194

Em

plo

ye

rE

mp

loye

es

Ran

k

Pe

rce

nta

ge

of

To

tal

Co

un

ty

Em

plo

ym

en

tE

mp

loye

es

Ra

nk

Pe

rce

nta

ge

of

To

tal

Co

un

ty

Em

plo

ym

en

t

Harn

ett

Co

un

ty P

ub

lic S

ch

oo

ls2

,30

01

5.2

6%

2,0

37

14

.58

%

Harn

ett

Co

un

ty G

ove

rnm

en

t *

80

22

1.8

4%

70

74

1.5

6%

Fo

od

Lio

n D

istr

ibu

tio

n C

en

ter

75

83

1.7

4%

72

83

1.6

7%

Harn

ett

He

alth

Syste

m (

Be

tsy J

oh

nso

n)

73

74

1.6

9%

53

55

0.9

9%

Cam

pb

ell

Un

ive

rsity

60

95

1.3

9%

88

92

1.7

7%

Harn

ett

Co

rre

ctio

na

l In

stitu

te3

67

70

.84

%4

42

61

.08

%

Ed

wa

rds B

roth

ers

, In

c.

23

01

00

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%2

91

10

0.6

8%

Wa

l M

art

30

68

0.7

0%

38

48

0.6

5%

SA

AB

Ba

rra

cu

da

, L

LC

11

61

90

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%3

26

90

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%

Gre

y M

eta

l S

ou

th1

20

17

0.2

7%

18

31

30

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%

Cha

mp

ion

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me

s1

19

18

0.2

3%

43

47

0.3

7%

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dw

in M

an

ufa

ctu

rin

g

14

01

40

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%2

02

11

0.4

7%

Este

rlin

e D

efe

nse

54

30

0.1

2%

18

41

20

.15

%

To

tal

6,6

58

15

.24

%7

,34

21

4.5

6%

* D

en

ote

s f

ull-

tim

e e

qu

iva

len

t

So

urc

e:

Ha

rne

tt C

ou

nty

Eco

no

mic

De

ve

lop

me

nt

Com

mis

sio

nHa

rnett

Co

un

ty,

No

rth

Caro

lin

a

Pri

ncip

al

Em

plo

ye

rs

Cu

rre

nt

Ye

ar

an

d N

ine

Ye

ars

Ag

o

20

12

20

03

(Un

au

dit

ed

)

195

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Ge

ne

ral G

ove

rnm

en

t1

06

10

61

03

11

01

06

10

81

11

11

19

99

9

Pu

blic

Sa

fety

17

21

94

19

62

33

24

02

58

25

52

67

.52

77

.52

78

.5

En

vir

on

me

nta

l P

rote

ctio

n2

22

22

33

33

2

Eco

no

mic

an

d

P

hysic

al D

eve

lop

me

nt

45

48

50

53

46

55

55

54

.54

34

3

Hum

an

Se

rvic

es

21

12

29

23

42

48

24

42

51

24

82

47

.52

59

.52

59

.5

Cultu

ral &

Re

cre

atio

n1

31

31

41

61

51

41

51

71

21

2

Wa

ter

an

d W

aste

wa

ter

60

63

62

69

10

01

03

10

39

19

59

5

So

lid W

aste

10

11

11

11

15

15

15

13

13

13

T

ota

l6

19

66

66

72

74

27

68

80

78

05

80

4.5

80

28

02

So

urc

e:

Ha

rne

tt C

ou

nty

Fin

an

ce

Offic

e

Fis

ca

l Y

ea

r E

nd

ed

Ju

ne

30

Ha

rnett

Co

un

ty,

No

rth

Caro

lin

a

Fu

ll-T

ime

Co

un

ty G

ove

rnm

en

t E

mp

loye

es

by F

un

cti

on

Las

t T

en

Fis

ca

l Y

ears

(Un

au

dit

ed

)

196

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fir

e

N

um

ber

of

calls

answ

ere

d4,2

00

4,3

00

4,6

28

4,9

75

5,2

77

4,7

19

5,4

26

5,6

41

6,1

10

6,2

34

Sheri

ff

N

um

ber

of

law

vio

lations:

A

rrests

6,5

82

7,0

19

7,3

72

8,5

66

5,0

82

5,7

34

8,1

66

9,3

48

10,6

56

10,8

69

T

raff

ic v

iola

tions

406

1,4

33

1,5

35

2,0

35

2,9

00

2,4

92

2,2

74

2,3

33

2,3

94

2,4

42

Inspections

N

um

ber

of

perm

its issued

5,3

04

2,2

28

2,8

50

2,6

38

2,5

43

2,3

59

2,4

13

2,9

00

3,0

85

3,1

56

Culture

and R

ecre

ation

C

ircula

tion

323,4

90

341,6

55

337,5

27

373,0

52

393,6

93

399,2

71

413,7

56

405,7

57

411,4

37

365,8

17

Utilit

ies

W

ate

r S

yste

m:

D

aily

avera

ge t

reatm

ent

in g

allo

ns

7,5

00,0

00

7,5

00,0

00

7,5

00,0

00

8,2

00,2

09

8,7

42,9

05

9,8

70,2

57

9,9

38,9

72

10,9

98,1

99

13,2

93,9

48

13,1

07,7

63

S

ew

er

Syste

m:

D

aily

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ge t

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ent

in

gallo

ns

1,2

30,0

00

1,2

30,0

00

1,2

80,0

00

1,5

85,6

53

1,6

45,8

65

2,3

52,2

71

2,5

01,3

83

2,8

24,1

72

3,2

66,3

97

3,2

03,8

49

Sourc

e:

Info

rmation p

rovid

ed b

y v

ari

ous c

ounty

depart

ments

Harn

ett

Co

un

ty, N

ort

h C

aro

lin

a

Op

era

tin

g In

dic

ato

rs b

y F

un

cti

on

Last

Ten

Fis

cal Y

ears

(Un

au

dit

ed

) Fo

r Y

ear

En

ded

Ju

ne 3

0

197

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Fir

e

N

um

be

r o

f S

tatio

ns

18

18

15

18

19

19

19

19

19

19

Sh

eri

ff

N

um

be

r o

f sta

tio

ns

11

11

11

11

11

N

um

be

r o

f p

atr

ol u

nits

84

98

98

10

41

07

15

21

39

15

61

38

15

6

Cultu

re a

nd

Re

cre

atio

n

N

um

be

r o

f lib

rari

es

66

66

66

66

66

L

ibra

ry c

olle

ctio

ns

18

6,8

95

18

4,2

97

18

5,8

91

19

1,8

65

19

6,5

51

20

2,3

57

20

8,8

73

21

3,4

46

21

9,8

49

21

7,3

23

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um

be

r o

f P

ark

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55

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55

5

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ark

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,10

01

,10

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,10

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um

be

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66

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um

be

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12

12

12

12

12

12

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as

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00

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11

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um

be

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cce

r fie

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um

be

r o

f C

ou

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ne

d

se

nio

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11

11

11

11

1

Utilit

ies

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ate

r S

yste

m:

M

iles o

f w

ate

r m

ain

1,4

89

1,4

89

1,5

14

1,5

68

1,8

51

1,8

63

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69

2,1

32

2,1

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um

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f se

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ns

29

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lin

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en

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ca

l Y

ears

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au

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)

Fo

r Y

ea

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nd

ed

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ne

30

198

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

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Ha

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ty,

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lin

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al

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en

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ca

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au

dit

ed

)

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r Y

ea

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ed

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ne

30

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er

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m:

M

iles o

f sa

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ry s

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er

14

61

46

14

62

00

31

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32

23

22

32

63

26

N

um

be

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44

44

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54

44

N

um

be

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f se

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nn

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ns

3,8

56

4,5

15

4,7

65

7,0

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7,8

11

8,2

95

8,6

69

9,5

23

10

,07

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0,4

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M

axim

um

da

ily c

ap

acity o

f

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t in

ga

llon

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0,0

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199


COMPLIANCE SECTION

Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit of Financial Statements Performed In Accordance With Government Auditing Standards Report On Compliance With Requirements That Could Have A Direct And Material Effect On Each Major Federal Program And On Internal Control Over Compliance In Accordance With OMB Circular A-133 And The State Single Audit Implementation Act.

Report On Compliance With Requirements That Could Have A Direct And Material Effect On Each Major State Program and On Internal Control Over Compliance In Accordance With Applicable Sections Of OMB Circular A-133 And The State Single Audit Implementation Act.

Schedule of Findings, Responses, and Questioned Costs

Summary Schedule of Prior Years’ Audit Findings

Schedule of Expenditures of Federal and State Awards





Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed

In Accordance With Government Auditing Standards To the Board of Commissioners Harnett County, North Carolina We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Harnett County as of and for the year ended June 30, 2012, which collectively comprise Harnett County’s basic financial statements, and have issued our report thereon dated November 15, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of Harnett County is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Harnett County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Harnett County’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Harnett County’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings, Responses, and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses.

200

Compliance and Other Matters As part of obtaining reasonable assurance about whether Harnett County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, non-compliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings, Responses, and Questioned Costs as items 2012-01 and 2012-02. Harnett County’s responses to the finding identified in our audit are described in the accompanying Schedule of Findings, Responses, and Questioned Costs. We did not audit Harnett County’s responses and; accordingly, we express no opinion on the responses. This report is intended for the information and use of management, others within the organization, members of the Board of Commissioners, federal and State awarding agencies, and pass-through entities, and is not intended to be, and should not be, used by anyone other than these specified parties.

Martin Starnes & Associates, CPAs, P. A. November 15, 2012

201




Report On Compliance With Requirements That Could Have A Direct And Material Effect On Each Major Federal Program And On Internal Control

Over Compliance In Accordance With OMB Circular A-133 And The State Single Audit Implementation Act

Independent Auditors' Report To the Board of Commissioners Harnett County, North Carolina Compliance We have audited Harnett County’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of Harnett County’s major Federal programs for the year ended June 30, 2012. Harnett County’s major Federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings, Responses, and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Harnett County’s management. Our responsibility is to express an opinion on Harnett County’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Implementation Act. Those standards, OMB Circular A-133, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether non-compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about Harnett County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Harnett County’s compliance with those requirements. In our opinion, Harnett County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012.

202

Internal Control Over Compliance Management of Harnett County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Harnett County’s internal control over compliance with the requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and the State Single Audit Implementation Act, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Harnett County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, non-compliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material non-compliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended for the information and use of management, others within the organization, members of the Board of Commissioners, federal and State awarding agencies, and pass-through entities, and is not intended to be, and should not be, used by anyone other than these specified parties.


203




Report On Compliance With Requirements That Could Have A Direct And Material Effect On Each Major State Program And On Internal Control Over Compliance

In Accordance With Applicable Sections of OMB Circular A-133 And The State Single Audit Implementation Act

Independent Auditors' Report

To the Board of Commissioners Harnett County, North Carolina

Compliance We have audited Harnett County’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of Harnett County’s major State programs for the year ended June 30, 2012. Harnett County’s major State programs are identified in the summary of auditors' results section of the accompanying Schedule of Findings, Responses, and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major State programs is the responsibility of Harnett County’s management. Our responsibility is to express an opinion on Harnett County’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; applicable sections of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Implementation Act. Those standards, applicable sections of OMB Circular A-133, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether non-compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major State program occurred. An audit includes examining, on a test basis, evidence about Harnett County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Harnett County’s compliance with those requirements. In our opinion, Harnett County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major State programs for the year ended June 30, 2012.

204

Internal Control Over Compliance Management of Harnett County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to State programs. In planning and performing our audit, we considered Harnett County’s internal control over compliance with the requirements that could have a direct and material effect on a major State program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with applicable sections of OMB Circular A-133 and the State Single Audit Implementation Act, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Harnett County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, non-compliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material non-compliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended for the information and use of management, others within the organization, members of the Board of Commissioners, federal and State awarding agencies, and pass-through entities, and is not intended to be, and should not be, used by anyone other than these specified parties.


205


SCHEDULE OF FINDINGS, RESPONSES, AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012

1. Summary of Auditors’ Results

Financial Statements

Type of auditors’ report issued: Unqualified

Internal control over financial reporting:

Material weaknesses identified? Yes X No

Significant deficiencies identified? Yes X No

Non-compliance material to financial statements noted? X Yes No

Federal Awards

Internal control over major federal programs:



Type of auditors’ report issued on compliance for major federal programs: Unqualified

Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? Yes X No

206



1. Summary of Auditors’ Results (continued): Identification of major federal programs: Program Name CFDA# Medicaid Cluster 93.720, 93.775, 93.777, 93.778 TANF Cluster 93.558, 93.714, 93.716 Childcare Development Fund Cluster 93.575, 93.596 Special Supplemental Nutrition Program for Women, Infants and Children (WIC) 10.557

Dollar threshold used to distinguish between Type A and Type B Programs: $3,000,000

Auditee qualified as low-risk auditee? Yes X No

State Awards

Internal control over major State programs:



Type of auditors’ report issued on compliance for major State programs Unqualified

Any findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act? Yes X No

Identification of major State programs: Medicaid Cluster Subsidized Childcare Cluster TANF Cluster NC Rural Center Bright Water Infrastructure NC Rural Center – Waste Water Improvements

207



2. Findings Related to the Audit of the Basic Financial Statements

Finding 2012-01 Budget Violation Criteria: North Carolina General Statutes require that the County have policies and procedures in place to monitor budgetary compliance throughout the year. Management should have a control system in place to reduce the likelihood that violations of General Statutes occur and go undetected. Condition: In the current year, there was a violation of the General Statutes regarding expenditures exceeding appropriations. Effect: The County was in violation of North Carolina General Statutes. Cause: The County expended more than had been budgeted in the budget ordinance, and a budget amendment had not been made for this item. Recommendation: Implement stringent budgetary monitoring controls to prevent expenditures exceeding appropriations. Management should make sure that all items are booked at year-end and that the proper budget amendments have been made for those purchases. Contact Person: Sylvia Blinson, Finance Officer Views of Responsible Officials and Planned Corrective Actions:

There is a budget violation in the General Fund which was caused by having to transfer all funds received for occupancy tax to the Averasboro Township Tourism Authority. These funds will be transferred to a trust and agency fund in FY 2013.

The budget violations in the capital projects did not exceed the total appropriated for the project. These funds will be monitored on a line item basis.

Proposed Completion Date: Funds will be monitored at each check write and at each month end.

208



Finding 2012-02 Deficit Fund Equity Criteria: North Carolina General Statutes preclude units from having funds that operate in a deficit. Condition: In the current year, there were violations of the General Statutes regarding deficit fund equity. Effect: The County was in violation of North Carolina General Statutes. Cause: The County adopted a balance budget however revenues were insufficient to cover the cost of operations Recommendation: The County should reevaluate the cost of providing services and adjust charges to insure that revenues cover all related cost. Contact Person: Sylvia Blinson, Finance Officer Views of Responsible Officials and Planned Corrective Actions: We agree with the findings for the Solid Waste Fund. The revenues fell short of projections. The expenditures were less than budget but overall expenditures exceeded revenues. For FY 2013, the household availability fees have been increased $20.00 per household which should generate approximately $1,020,000 in additional revenues.

We agree with the finds for the Worker’s Compensation Fund. The deficits are due to the potential liability that has been recorded due to several claims but not expended. On a cash basis, revenues exceed expenditures by $105,378.00. In FY 2013 we have implemented the new rate structure for the billing classes and implemented a 1.51328 modification factor to recover deficit amounts in retained earnings. At the end of the first quarter in FY 2013, we have received 33% of the revenues budgeted. We will continue to monitor this fund. The County will transfer sufficient funds to cover any claims presented for payment.

We agree there are funds in Special Revenues and Capital Projects that have a deficit fund balance. These deficits are caused by a timing difference in the expenditures and the reimbursements from the Federal/State agencies.

Proposed Completion Date: Increases in the Solid Waste Household availability fees and the increase in the Worker’s Compensation premiums were effective July 1, 2012.

3. Findings and Questioned Costs Related to the Audit of Federal Awards

None 4. Findings and Questioned Costs Related to the Audit of State Awards None

209


SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED JUNE 30, 2012

2011-01 – Repeated as 2012-01

2011-02 – Repeated as 2012-02

210

Page 1 of 7

Federal

Grantor/Pass-Through CFDA Grant I.D. Expenditures

Grantor/Program Title Number Number Federal State

FEDERAL AWARD EXPENDITURES

U.S. Department of Agriculture

Division of National Institute of Food & Agriculture

Better Care Training 10.500 3,630$ -$

Total of Better Care Training 3,630 -

Passed-Through the N.C. Department of Health and Human Services:

Division of Social Services:

Administration:

State Administrative Matching Grant for the

Supplemental Nutrition Assistance Program 10.561 5NC400406 912,264 -

Total Supplemental Nutrition Assistance Program 912,264 -

Division of Public Health:

Administration:

Special Supplemental Food Program

for Women, Infants, and Children 10.557 567,845 -

Direct Benefit Payment:

Special Supplemental Food Program

for Women, Infants, and Children 10.557 2,770,897 -

Total of Public Health 3,338,742 -

Total U.S. Department of Agriculture 4,254,636 -

U.S. Department of Housing and Urban Development

Direct Program:

Housing Assistance Payments Program:

Vouchers 14.195 043-1-99-010-D-389 1,018,254 -

Total U.S. Department of Housing and Urban Development 1,018,254 -

U.S. Department of Justice Office of Justice Programs

Division Bureau of Justice Assistance

Edward Byrne Justice Grant 16.783 211-DJ-BX-2947 & 2077 47,405 -

State Criminal Alien Assistance Program (SCAAP) 16.606 2011-H4394-NC-AP 7,200 -

Division Bureau of Alcohol, Tobacco, Firearms &

Explosives

Drug Enforcement Agency 09.G09GA0004A 17,652 -

U.S. Department of Justice Office of Justice Programs 72,257 -

U.S. Department of Army

Contracting Center of Excellence

Mission and Installation Contracting Command

NTA/Cameron Hill W91WAW-08-1-003 291,900 -

Total U.S. Department of Army 291,900 -

U.S. Department of Commerce Economic Development

Economic Development Administration

Brightwater Inf'' Structure 04-01-06174 607,143 -

U.S. Department of Commerce Economic Development 607,143 -


SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS


211

Page 2 of 7

Federal






U.S. Department of Labor

Department of Labor/Employment and Training

Passed-through Central Carolina Community

College Welfare Investment Act 17.258/17.278 09-2040-02 401,651 -

Total U.S. Department of Labor 401,651 -

U.S. Department of Health and Human Services

Division of Aging and Adult Services

Passed-Through Mid-Carolina Council of Governments:

Special Programs for the Aging Title III Cluster:

Nutrition Services 93.045 279,464 -

Nutrition Services Incentive Program 93.053 50,655 -

Medication Mgmt Title III 2,610 -

Home and Community Care Block Grant 93.044 20.701 225,817 -

Total Aging Cluster 558,546 -

Special Programs for the Aging: -

Family Caregiver Support Program 93.052 17-701 27,366 -

Medical Transportation General 93.633 16-701 9,286 10,060

Medical Transportation 93.633 16-701 54,145 58,657

Passed-Through Corporation for National Service:

National Senior Service 94.002 09SRSNC006 25,217 -

Total Division of Aging and Adult Services 674,560 68,717

Division of Administration for Children & Families

Passed-Through the N.C. Department of Health & Human Services:

Child Care Development Fund Cluster:

Division of Social Services

Child Care Development Fund - Administration 93.596 225,131 -

Division of Child Development

Child Care and Development Fund - Discretionary 93.575 1,358,205 -

Child Care and Development Fund - Mandatory 93.596 440,511 -

Child Care and Development Fund - Match 93.596 736,460 347,280

Total Child Care Fund Cluster 2,760,307 347,280

Temporary Assistance for Needy Families 93.558 540,778

ARRA - Emergency Contingency Fund for 93.713 42,423 -

Temporary Assistance for Needy Families

Foster Care Title IV-E 93.658 10,046 -

State Appropriations - 302,703

Smart Start - 20,234

TANF - Maintenance of Effort - 439,115

Total Subsidized Child Care Cluster 3,353,554 1,109,332

212

Page 3 of 7

Federal







Foster Care and Adoption Cluster:

Title IV-E Foster Care - Administration 93.658 1201NC1401 369,509 147,600

Title IV-E Adoption Subsidy - Administration 93.659 1201NC1407 16,730 -

Direct Benefit Payments:

Title IV-E Foster Care 93.658 1201NC1401 144,267 38,286

Title IV-E Adoption Subsidy 93.659 1201NC1407 896,276 241,845

Total Foster Care and Adoption Cluster 1,426,782 427,731


Temporary Assistance for Needy Families Cluster

Administration:

Temporary Assistance for Needy Families("TANF") 93.558 G1202NCTANF 1,091,609 5,581

Temporary Assistance for Needy Families 93.558 12,161 -


Temporary Assistance for Needy Families ("TANF") 93.558 G1202NCTANF 483,726 (963)

Total TANF Cluster 1,587,496 4,618


Aid to Families with Dependent Children ("AFDC") 93.560 (2,097) (575)

Low Income Energy Assistance-Direct Benefit 93.568 G12B1NCLIEA 229,814 -

Crisis Intervention Program 93.568 G12B1NCLIEA 923,609 -

Child Welfare Services - State Grants 93.645 G1101NC1400

Adoption Subsidy - 424,645

Administration:

Monthly Caseworker Visits 93.556 G1111NCFPCV 6,102 -

Child Support Enforcement 93.563 1204NC4005 682,934 -

Low Income Energy Assistance 93.568 G12B1NCLIEA 102,391 -

Child Welfare Services - Permanency Planning 93.645 G1101NC1400 33,054 6,457

SSBG - Adult Day Care 93.667 G1201NCSOSR 9,820 16,184

SSBG - In Home Services 93.667 G1201NCSOSR 42,921 -

SSBG - Other Services 93.667 G1201NCSOSR 284,487 -

TANF to SSBG 93.667 G1201NCSOSR 26,154 -

CPS TANF to SSBG 93.667 G1201NCSOSR 187,976 -

Independent Living Grant/Links 93.674 G1101NC1420 40,736 4,312

Total Division of Social Services 4,155,397 455,641

Centers for Medicare and Medicaid Services

Passed-Through the N.C. Department of Health and Human Services:

Division of Medical Assistance:


Medical Assistance Program 93.778 77,251,409 45,170,371


Administration:

Medical Assistance Program 93.778 5-1205NC5MAP 1,411,843 109,902

Adolescent Parenting Program 93.778 02220-11 55,784 -

Total Medicaid Cluster 78,719,036 45,280,273

State Children's Insurance Program-

NC Health Choice 93.767 63,028 4,655

Total for Centers for Medicare and Medicaid Services 78,782,064 45,284,928

213

Page 4 of 7

Federal






Division of Public Health

Immunization Cluster

Immunization Action Plan 93.268 41,841 -

Total Immunization Cluster 41,841 -

Division of Public Health

Family Planning Title X 93.217 53,129 4,944

Chronic Disease/Health Promotion 93.283 1,444 -

Maternal and Child Health Services Block Grant: -

Women's Preventive Health (Family Planning) 93.994 27,071 20,305

Child Health (HHS-MCH Block Grant) 93.994 67,039 50,285

Child Health - CFPT (Child Fatality Prevention Team) 93.994 733 549

Child Service Coordination 93.994 14,303 10,729

Bioterrorism Preparedness and Response 93.069 43,838 -

Infection Control 93.717 1,799 -

Eat Smart, Move More, Weigh Less, Diabetes 93.283 250 -

Motivational Interviewing 93-994 1,927 1,446

Local Asthma Efforts 93.070 19,438 -

Total Division of Public Health 272,812 88,258

Total U.S. Department of Health and Human Services 88,665,170 47,434,607

US Department of Environmental Protection Agency

Passed-Through NC Department of Environment & Natural Resources

Drinking Water State Revolving Fund 66.468 E -SRF-T-10-0268 7,007,100 -

US Department of Environmental Protection Agency 7,007,100 -

U.S. Department of Homeland Security

Division of Emergency Management

2009 Metropolitan Medical Response 97.067 MOA2001 31,620 -

Total U.S. Department of Homeland Security 31,620 -

U.S. Department of Transportation

Passed-through the N.C. Department of Transportation

Public Transportation Division

Planning-Program-Evaluation

Governor's Highway Safety Program 20.602 PT-12-03-04-39 73,854 -

Division of Aviation

Jet Port 100 20.106 36237.25.1.12.1 18,466 -

Total U.S. Department of Transportation 92,320 -

N.C. Dept. of Crime Control and Public Safety

Division of Emergency Management

State & Local Assistance Emergency Services 97.042 EMPG-2011-37085 24,377 24,377

2011 Interoperable Communication 97.055 210-SS-T0-0075 95,689 -

Total N.C. Dept. of Crime Control and Public Safety 120,066 24,377

214

Page 5 of 7

Federal






N.C. Department of Cultural Resources

Division Institute of Museum and Library Services

EZTA Lista 45.310 28,486 -

Total N.C. Department of Cultural Resources 28,486 -

N.C. State Board of Elections

Help America Vote Act 90.401 / 36.011 062712-0707 28,281 -

Total N.C. State Board of Elections 28,281 -

US Department of HUD

Pass thru N.C. Housing Finance Agency

Single Family SFR 10 14.239 SFR10-2010-0020 225,582 -

US Department of HUD 225,582 -

N.C. Department of Insurance

Division of Seniors Health Insurance Information Program

Medicare Counseling (SHIIP) 93.779 56-3000306 4,191 -

Total N.C. Department of Insurance 4,191 -

TOTAL FEDERAL/STATE AWARD EXPENDITURES 102,848,656 47,458,984

STATE AWARD EXPENDITURES

N.C. Department of Administration

Division of Veterans Affairs

Veteran Affairs - 1,452

Total N.C. Department of Administration - 1,452

N.C. Department of Correction

Division of Community Correction

Harnett Criminal Justice Alliance 43-0710-I-A - 67,186

Total N.C. Department of Correction - 67,186

N.C. Department of Cultural Resources

State Aid to Public Libraries 4531 - 148,460

Total N.C. Department of Cultural Resources - 148,460

N.C. Department of Health and Human Services

Division of Community Health:

General Health/State Aid - 120,466

Tuberculosis Control - 31,226

TB Medical Services - 2,743

Maternal Health - 11,302

Environmental Health - 4,000

Food and Lodging - 8,752

Lead - 2,872

Communicable Disease - 4,001

AIDS - State (HIV/STD - State) - 500

HIV/STD Prevention - 40,000

Risk Reduction/Hth Promotion - 5,445

215

Page 6 of 7

Federal






School Nurse Funding Initiative - 150,000

Total Division of Community Health - 381,307

Division of Aging and Adult Services:


Special Assistance to Adults - 954,040

Administration:

Adult Day Care - (2,856)

Total Division of Aging and Adult Services - 951,184



Aid to Family with Dependent Children - (106)

Foster Care At-Risk Maximization - 60

Progress Energy's Neighborhood Fund - 6,248

Smart Start - 80,000

Social Services Block Grant - State - 9,149

State Foster Care Benefits Program - 125,050

Temporary Assistance for Needy Families - 2,503

Total Division of Social Services - 222,904

Total N.C. Department of Health and Human Services - 1,555,395

N.C. Division of Child Development

N.C. Partnership for Children, Inc.

Parents As Teachers 11-12-202 - 243,202

CCR&R Smart Start 11-12-203 - 22,559

Total N.C. Division of Child Development - 265,761

N.C. Office of Juvenile Justice and Delinquency Prevention

Division of Juvenile Justice

CBA-Juvenile Restitution 543-10591 - 101,149

CBA-JCPC ADM 543-11433 - 2,561

Court Psychologist 543-10545 - 6,920

Hillcrest Youth Shelter 543-10534 - 35,455

Re-Entry-Healthy Choice 543-10619 - 65,000

Re-Entry Family Enrichment 543-44549 - 36,836

Improving Outcome of Youth DJJ-024-11 - 2,000

Dunn Pals 543-10647 - 12,952

Total N.C. Office of Juvenile Justice and Delinquency Prevention - 262,873

N.C. Department of Transportation

Passed-Through the N.C. Department of Transportation

Airport SWPPP & SPCC 2011 36237.25.12.3 - 46,304

Airport Land Acquisition & Runway Safety 36244.35.4.1 DOT-8 - 32,091

Division of Engineering

Rural Operating Assistance Program (ROAP):

Work First Transportation JOBLINK DOT-16CL - 19,129

Work First Transportation Grant DOT-16CL - 19,129

Rural General Public Program (RGP) 3622821.1.1 - 97,655

Elderly and Disabled Transportation

Assistance Program (EDTAP) DOT-16CL - 84,091

Public Transportation Division

Transportation Facility Design 36227.5.1.1/03-SF020 - 18,223

Total N.C. Department of Transportation - 316,621

N.C. Rural Economic Development Center

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Page 7 of 7

Federal






Division of Water Quality

Division of Water Quality

Erwin Waste Water Improvements CWMTF02-58-85 - 400,000

N.C. Rural Economic Development Center - 400,000

N.C. Rural Center

Bright Water Inf' Structure 2008-037-40401-107 - 1,000,000

N.C. Rural Center - 1,000,000

N.C. Golden Leaf Foundation

Bright Water Inf' Structure - 280,000

N.C. Golden Leaf Foundation - 280,000

TOTAL STATE AWARD EXPENDITURES - 4,297,749

TOTAL AWARD EXPENDITURES 102,848,656$ 51,756,733$

Notes to the Schedule of Expenditures of Federal and State Financial Awards:

Basis of Presentation

The Schedule of Expenditures of Federal and State Awards includes the federal and State grant activity of

Harnett County and is presented on the modified accrual basis of accounting. The information in this schedule is

presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and

Non-Profit Organizations and the State Single Audit Implementation Act. Therefore, some amounts presented in

schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Benefit

payments are paid directly to recipients and are not included in the basic financial statements. However, due to the

County's involvement in determining eligibility, they are considered federal awards to the County and are considered

federal awards to the County and are included on this schedule.

The following are clustered by the NC Department of Health and Human Services and are treated separately for

State audit requirement purposes: Subsidized Child Care, and Foster Care and Adoption

Loans Outstanding:

Harnett County had the following loan balances outstanding at June 30, 2012. Draws on these loans that

occurred during the fiscal year are included in the federal expenditures presented in the schedule.

Grant I.D.

Program Title CFDA Number Number Outstanding

North Carolina Department of Environmental Natural Resources

Erwin Wastewater Revolving Loan 66.458 E-SRF-T-10-0268 2,822,929$ PU0604

US Department of Environmental Protection Agency

East Central Water NC State Revolving Loan 66.468 H-LRX-R-DW-1038 87,604 PU0703

217

Documents

Comprehensive Annual Financial Report County CAFR FYE... · 2013-05-17 · GFOA Certificate of Achievement ... Harnett County, North Carolina, as of and for the year ended June 30,