Macon County NC Comprehensive Financial Audit Report - June 30, 2012

MACON COUNTY
NORTH CAROLINA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2012
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MACON COUNTY
NORTH CAROLINA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2012
Prepared by: Finance Department Finance Director: Lori M. Hall
MACON COUNTY, NORTH CAROLINA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Page Introductory Section Letter of Transmittal Organizational Chart List of Principal Officials 2011 GFOA Certificate of Achievement for Excellence in Financial Reporting Financial Section: Independent Auditors' Report Management's Discussion and Analysis Exhibit Basic Financial Statements - Overview Government-Wide Financial Statements: A B Statement of Net Assets Statement of Activities Fund Financial Statements: C D Balance Sheet - Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures, and Changes in in Fund Balance - Budget and Actual - General Fund Statement of Net Assets - Proprietary Funds 15 12 13-14 1-2 3-11 i-v vi vii viii
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COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Exhibit Fund Financial Statements - continued: H Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets - Fiduciary Funds Notes to the Financial Statements Required Supplementary Financial Data: A-1 A-2 Law Enforcement Officers' Special Separation Allowance Other Post-Employment Benefits - Retiree Health Plan Supplementary Information: General Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Nonmajor Governmental Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Emergency Telephone System Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 58 59 Page
20 21 22 23-57
I J
B-1
60-72
C-1 C-2
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D-1 D-2
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D-3
77

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Schedule Supplementary Information - continued: Nonmajor Special Revenue Funds - continued: D-4 Fire Districts Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Clean Water Management Trust Fund: Schedule of Revenues and Expenditures Budget and Actual Housing Grants Fund: Schedule of Revenues and Expenditures Budget and Actual Major Capital Projects Funds: Consolidated Capital Projects: Schedule of Revenues and Expenditures Budget and Actual Nonmajor Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Airport Improvements Fund: Schedule of Revenues and Expenditures Budget and Actual County Building Projects: Schedule of Revenues and Expenditures Budget and Actual SCC Campus/Library Project: Schedule of Revenues and Expenditures Budget and Actual Page
78
D-5
79
D-6
80
E-1
81
E-2 E-3
82-83
84-85
E-4
86
E-5
87
E-6
88

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Schedule Supplementary Information - continued: Nonmajor Capital Projects Funds - continued: Riverbend Estates Waterline Project: Schedule of Revenues and Expenditures Budget and Actual Little Tennessee River/Cartoogechaye Creek Sewer Trunk Project - Major: Schedule of Revenues and Expenditures Budget and Actual Schools Capital Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Reserve Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Enterprise Fund: Solid Waste Fund: Schedule of Revenues and Expenditures Budget and Actual (Non-GAAP) Internal Service Fund: Nonmajor Self-Insurance Fund Balance Sheet Nonmajor Self-Insurance Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets-Financial Plan and Actual Nonmajor Self-Insurance Fund Statement of Cash Flows Page
E-7
89
E-8
90
E-9
91
E-10
92
F-1
93-94
G-1
95
G-2
96
G-3
97

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Schedule Supplementary Information - continued: H-1 H-2 Agency Funds: Combining Balance Sheet Combining Statement of Changes in Assets and Liabilities Debt Service Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Additional Financial Data: J-1 Schedule of Ad Valorem Taxes Receivable General Fund Analysis of Current Tax Levy County-Wide Levy Schedule of Ad Valorem Taxes Receivable Fire Districts Analysis of Current Tax Levy - Fire Districts 98-99 100-101 Page
I-1
102
103
J-2
104
J-3
105 106
J-4 Table
Statistical Section: 1 2 3 4 5 Net Assets by Components Changes in Net Assets Governmental Activities Tax Revenues By Source Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds 107 108-109 110 111 112

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Table Statistical Section - Continued: 6 Assessed Value and Estimated Actual Value of Taxable Property Property Tax Rates, Direct and Overlapping Governments Principal Property Taxpayers Property Tax Levies and Collections Ratio of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Demographic and Economic Statistics Principal Employers Full-Time Equivalent County Government Employees by Function Operating Indicators by Function Capital Asset Statistics by Function Page
113 114 115 116 117 118 119 120 121 122
7 8 9 10 11 12 13 14 15 16
123 124 125
17 18
INTRODUCTORY SECTION
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Macon County Government

Macon County Board of Commissioners
County Managers Office
Legal Services
Staff Support
Shared Authority 2 Social Services
Direct Line 3 Tax Department Building & Grounds Housing Emergency Management Veterans Services Garage Solid Waste Recreation Department Transit Services Permitting, Planning, and Development
HR/Deputy Clerk Finance Department Information Technology
Health Department
Cooperative Extension Service
Board of Elections Register of Deeds Sheriffs Department Soil Conservation Criminal Justice
1. County departments whose main function is overall county government support. 2. County departments that have shared resources, supervision and/or local boards. 3. All other county departments are headed by elected officials.
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List of Principal Officials June 30, 2012 Board of Commissioners Kevin Corbin, Chairman Bobby Kuppers, Vice-Chairman Ronnie Beale, Commissioner Jimmy Tate, Commissioner Ron Haven, Commissioner Principal Officials Jack Horton, County Manager Lori M. Hall, Finance Director Chester Jones, County Attorney Mike Decker, Deputy Clerk to the Board/Human Resources Director Richard Lightner, Tax Supervisor Margaret D. Perry, Tax Collector Jack Morgan, Permitting, Planning, and Development Director Kim M. Bishop, Board of Elections Director Todd Raby, Register of Deeds Andy Muncey, Information Technology Director Steve Ledford, Buildings and Grounds Director Robert L. Holland, Sheriff David Key, Emergency Medical Services Director John Hook, Animal Control Director M. Chris Stahl, Solid Waste Director Mike Breedlove, Soil and Water Conservation Alan Durden, Cooperative Extension Chairman Jane C. Kimsey, Social Services Director Kim Angel, Transit Director James Bruckner, Health Director Daylon Plemens, Veterans Service Officer Seth D. Adams, Recreation Director Larry D. Conley, Garage Services Tommy Jenkins, Economic Development Director John Fay, Housing Director
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FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT

To the Board of Commissioners Macon County, North Carolina We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Macon County, North Carolina, as of and for the year ended June 30, 2012, which collectively comprise the Countys basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Macon County's management. Our responsibility is to express an opinion on these 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. The financial statements of the Macon County Airport Authority were not audited in accordance with Government Auditing Standards. 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, based on our audit, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Macon 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 October 19, 2012, on our consideration of Macon County's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, 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 performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
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
Accounting principles generally accepted in the United States of America require that the Managements Discussion and Analysis, budgetary comparison information, 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 the 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 managements 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 an opinion on the financial statements that collectively comprise the basic financial statements of Macon 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 combining and individual fund financial statements, budget and actual schedules, and supplemental ad valorem tax schedules 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 tables have not been subjected 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. October 19, 2012
Managements Discussion and Analysis

As management of Macon County, we offer readers of Macon Countys financial statements this narrative overview and analysis of the financial activities of Macon County for the fiscal year ended June 30, 2012. We encourage readers to consider the information presented here in conjunction with additional information furnished in the Countys financial statements, which follow this narrative.
Financial Highlights
The assets of Macon Countys governmental activities exceeded its liabilities at the close of the fiscal year by $6,895,369. The Countys net assets of governmental activities decreased by $5,952,647, primarily due to a decrease in restricted cash and cash equivalents and a decrease in liabilities. As of the close of the current fiscal year, Macon Countys General Fund reported an ending fund balance of $21,366,558, an increase of $2,162,543 in comparison with the prior year. Approximately 17.0 percent of this total amount, or $3,692,987, is restricted or non-spendable. At the end of the current fiscal year, unassigned fund balance for the General Fund was $15,992,802, or 38 percent of total General Fund expenditures and transfers out for the fiscal year. Macon County's total debt decreased by $4,409,338 (9%) during the fiscal year. The key factors in this decrease are regular debt payments and a drawdown on the NC Clean Water Loan. The County holds the following bond ratings: Moodys Aa3 and Standard & Poors A+.
Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to Macon Countys basic financial statements. Macon Countys basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (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 readers understanding of the fi nancial condition of Macon County.
Required Components of Annual Financial Report Figure 1
Management's Discussion and Analysis
Basic Financial Statements
GovernmentWide Financial Statements Summary
Fund Financial Statements
Notes to the Financial Statements 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 Countys financial status. The next statements (Exhibits C through J) are Fund Financial Statements. These statements focus on the activities of the individual parts of the Countys 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 and agency fund statements. The final section of the basic financial statements is the Notes to the Financial Statements. The notes to the financial statements offer a detailed explanation about various information contained in the statements. After the notes, supplemental information is provided to show details about the Countys nonmajor governmental funds and internal service funds, all of which are added together in one column on the basic financial statements. Budgetary information required by the North Carolina General Statutes can also be found in this part of the statements. Immediately following the notes is the required supplementary information. funding information about the County's pension plans. This section contains
Government-Wide Financial Statements

The government-wide financial statements are designed to provide the reader with a broad overview of the Countys 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 the net assets is one way to gauge the County's financial condition. The government-wide financial statements are divided into three categories: 1) governmental activities; 2) business-type activities; and 3) component unit. The governmental activities include most of the County's basic services, such as general governmental, public safety, transportation, public education, economic development, and general administration. 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. This includes the solid waste (landfill) operation offered by Macon County. The final category is the component unit. Macon County is financially accountable for the Macon County Airport Authority. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found on Exhibits A and B 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. Macon County, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with financerelated legal requirements, such as the General Statutes or the County's budget ordinance. All of the funds of Macon County can be divided into three categories: governmental funds, proprietary funds, and agency/fiduciary funds. Governmental Funds. Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Countys 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. This method also has 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 Countys 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.
Macon 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 of Commissioners 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 legal budget document. 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. Macon County maintains two types of proprietary funds: Enterprise Fund and Internal Service Fund. Enterprise funds report the same functions presented as business-type activities in the government-wide financial statements. Macon County uses an Enterprise Fund to account for its Solid Waste operations. Macon County uses an Internal Service Fund to account for health insurance on a cost reimbursement basis. As these services predominantly benefit governmental rather than businesstype functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Solid Waste and Health Insurance. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Macon County has seven agency funds. 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 follow Exhibit J of this report. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning Macon Countys progress in funding its obligation to provide pension benefits to its employees. Required supplementary information immediately follows the notes to the financial statements.
Government-Wide Financial Analysis

Macon Countys Net Assets Figure 2
Governmental Activities 2011 2012 Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets Business-Type Activities 2011 2012 Total 2011 2012
$ 44,229,066 $ 36,538,679 $ 8,068,254 $ 8,673,266 $52,297,320 $ 45,211,945 24,156,626 23,459,314 2,536,224 2,271,354 26,692,850 25,730,668 68,385,692 59,997,993 10,604,478 10,944,620 78,990,170 70,942,613
47,338,503 8,199,173 55,537,676
45,449,420 7,653,204 53,102,624
5,643,286 617,389 6,260,675
5,512,126 497,909 6,010,035
52,981,789 $ 50,961,546 8,816,562 8,151,113 61,798,351 59,112,659
20,496,868 6,089,293 (13,738,145) $ 12,848,016 $
18,601,883 6,934,514 (18,641,028)
1,836,224 2,507,579
2,071,354 2,863,231
22,333,092 6,089,293 (11,230,566)
20,673,237 6,934,514 (15,777,797)
6,895,369 $ 4,343,803 $ 4,934,585 $17,191,819 $ 11,829,954
As noted earlier, net assets, over time, may serve as one useful indicator of a governments financial condition. For Macon County, assets exceeded liabilities by $11,829,954 at the close of the most recent fiscal year. The County's net assets decreased by $5,361,865 for the fiscal year ended June 30, 2012. By far, the largest portion of Macon Countys net assets, $20,673,237 reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that are still outstanding. Macon County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Macon Countys investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to repay these liabilities. At the end of the current fiscal year, Macon County is reporting a negative balance in unrestricted net assets in the amount of $15,777,797 for the government as a whole. The primary reason for the deficit is due to the fact that under North Carolina law, the County is responsible for providing capital funding for the school system. The County has chosen to meet its legal obligation to provide the school system capital funding by using a mixture of County funds and debt financings. The assets, funded by the County, however, are titled to and utilized by the school system. Since the County, as the issuing government, acquires no assets, the County has incurred a liability without a corresponding increase in assets.
Macon County's Changes in Net Assets Figure 3

Governmental Activities 2011 Revenues: Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Other taxes Other Total revenues Expenses: General government Public safety Transportation Economic and physical development Human Services Cultural and recreational Education Interest on long-term debt Solid waste Total expenses Increase (decrease) in net assets before special items Special item - gain on sale of property Increase (decrease) in net assets Net Assets: Beginning of year - July 1 End of year - June 30 2012 Business-Type Activities 2011 2012 2011 Total 2012
4,521,633 $ 7,645,348 5,814,683 28,883,855 6,695,601 446,598 54,007,718
4,319,383 $ 10,647,327 133,681 28,747,033 7,609,640 437,806 51,894,870
3,654,347 $ 18,830 3,673,177
3,458,349 $ 13,013 3,471,362
8,175,980 $ 7,645,348 5,814,683 28,883,855 6,695,601 465,428 57,680,895
7,777,732 10,647,327 133,681 28,747,033 7,609,640 450,819 55,366,232
10,770,642 12,147,316 638,415 8,671,741 7,734,446 2,430,596 14,553,807 1,887,654 58,834,617
10,544,326 13,462,012 709,086 2,977,859 9,376,517 2,349,816 16,309,605 2,118,296 57,847,517
3,351,735 3,351,735
2,880,580 2,880,580
10,770,642 12,147,316 638,415 8,671,741 7,734,446 2,430,596 14,553,807 1,887,654 3,351,735 62,186,352
10,544,326 13,462,012 709,086 2,977,859 9,376,517 2,349,816 16,309,605 2,118,296 2,880,580 60,728,097
(4,826,899) 432,900 (4,393,999)
(5,952,647) (5,952,647)
321,442 321,442
590,782 590,782
(4,505,457) 432,900 (4,072,557)
(5,361,865) (5,361,865)
17,242,015 $ 12,848,016 $
12,848,016 6,895,369 $
4,022,361 4,343,803 $
4,343,803 4,934,585 $
21,264,376 17,191,819 $
17,191,819 11,829,954
Governmental Activities. Of total net assets, governmental activities accounted for $6,895,369 (58.3 percent). Property taxes provided 55.4 percent of funding at $28,747,033, charges for services funded $4,319,383, local option sales tax funded $7,609,940, and operating grants funded $10,647,327 of Macon Countys governmental activities. Governmental activities decreased Macon Countys net assets by $5,952,647. Net assets decreased due to the spending down of debt proceeds for school construction, which reduced the restricted cash on hand. Also, the non-current liabilities decreased due to regular debt payments. Business-Type Activities. Business-type activities increased Macon Countys net assets by $590,782. That increase is primarily attributable to a decrease in depreciation expense, closure costs, and postclosure costs. Financial Analysis of the Countys Funds As noted earlier, Macon County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of Macon Countys governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing Macon Countys financing requirements. Specifically, fund balance available for appropriation can be a useful measure of a governments net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, Macon Countys governmental funds reported combined ending fund balances of $27,664,090, a decrease of $6,333,236 in comparison with the prior year. The decrease is primarily due to the spending down of debt proceeds for the Iotla Valley Elementary School construction. The General Fund is the chief operating fund of Macon County. At the end of the current fiscal year, fund balance available in the General Fund was $17,951,009, while total fund balance reached $21,366,558. The County currently has an available fund balance of 42% of General Fund expenditures and transfers out, while total fund balance represents 50% of that same amount. Total fund balance in the general fund increased $2,162,543. This increase is primarily attributable to under spending the budget in general government, public safety, and human services. The Consolidated Capital Project Fund's fund balance at year-end was $2,586,363, a decrease of $8,052,927 over the prior year, due to the spending down of debt proceeds.
General Fund Budgetary Highlights

During the fiscal year, the County revised the budget on several occasions. Generally, budget amendments fall into 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 the revenue budget by $2,999,707. The majority of this increase was attributable to additional restricted intergovernmental revenues received after the beginning of the year. The difference between the final budgeted amount and the actual expenditures was $3,320,668. This difference is primarily due to under spending the budget in general government, public safety, and human services, the decision not to fill certain positions, and incomplete contracts to be continued in 2013.
Proprietary Funds. Macon Countys proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of Solid Waste at the end of the year totaled $2,863,231. The increase of $355,652 over the prior year is primarily attributable to an increase in tipping fee revenues and the under spending of the budget on post closure costs.
Capital Asset and Debt Administration

Capital Assets. Macon Countys investment in capital assets for its governmental and business-type activities as of June 30, 2012 amounts to $25,730,668, (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment. There was a decrease of 3.6 percent in Macon Countys investment in capital assets for the current fiscal year after accumulated depreciation (a 2.9 percent decrease for governmental activities and a 10.4 percent decrease for business-type activities). Macon County's Capital Assets Figure 4
Governmental Activities 2011 Land Buildings and improvements Furniture and equipment Vehicles Construction in progress Subtotal Less accumulated depreciation Total $ $ 9,104,281 $ 25,499,397 2,624,463 4,851,302 375,697 42,455,140 (18,298,514) 24,156,626 $ 2012 9,104,281 $ 26,089,890 2,539,709 5,180,244 354,952 43,269,076 (19,809,762) 23,459,314 $ Business-Type Activities 2011 460,837 $ 9,395,567 2,116,215 692,115 12,664,734 (10,128,510) 2,536,224 $ 2012 460,837 $ 9,395,567 2,221,473 704,863 23,179 12,805,919 (10,534,565) 2,271,354 $ 2011 9,565,118 $ 34,894,964 4,740,678 5,543,417 375,697 55,119,874 (28,427,024) 26,692,850 $ Total 2012 9,565,118 35,485,457 4,761,182 5,885,107 378,131 56,074,995 (30,344,327) 25,730,668
Additional information on Macon Countys capital assets can be found in the notes to the financial statements beginning on page 38. Long-Term Debt. At the end of the current fiscal year, Macon County had no bonded debt outstanding. The Municipal Finance Law of North Carolina limits the amount of net bonded debt a County may have outstanding to 8 percent of the appraised value subject to taxation. The current debt limitation for Macon County is $700,772,885, which is significantly greater than Macon Countys outstanding general obligation debt. More detailed information on Macon Countys long-term debt can be found in the notes to the financial statements beginning on page 50.
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Economic Factors and Next Years Budget and Rates

The unemployment rate for Macon County is currently 10.1 percent, which is a slight decrease from a rate of 10.3 percent a year ago. Macon Countys rate is slightly higher than the States unemployment rate of 9.9 percent. Sales tax distributions increased 8% over prior year. The tax base is diverse, with the ten leading taxpayers making up 3.36% of total assessed value. All of these factors were considered in preparing Macon Countys budget for the 2012-2013 fiscal year.
Budget Highlights for the Fiscal Year Ending June 30, 2013
Governmental Activities: Approximately one percent growth in the tax base is anticipated over last year, to a total $9.39 billion in property valuation. The collection rate dropped from 97.09% in 2011 to 96.38% in 2012. Sales tax revenues were budgeted with an anticipated 2% growth over FY 11-12 projections. Budgeted expenditures in the General Fund for 2013 are $44,391,193, which includes new debt service for school technology. The 2013 budget has approximately $1.1 million capital outlay, an increase in Social Services due to the daycare subsidy payments passing through the County, and an increase in Human Services due to the addition of the Community Transformation Grant. Business-Type Activities: The budgeted expenditures for the Solid Waste Fund are $3,775,200, which represents an 8% percent increase over last year. The increase is due to capital outlay appropriations and preliminary planning costs for a new cell at the Macon County MSW landfill.
Requests for information

This financial report is designed to provide a general overview of Macon Countys finances for all those with an interest in the governments finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Director, 5 West Main Street, Franklin, North Carolina 28734.
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BASIC FINANCIAL STATEMENTS OVERVIEW
Exhibit A

STATEMENT OF NET ASSETS JUNE 30, 2012
Primary Government Governmental Activities Assets: Cash and cash equivalents Taxes receivable, net Interest receivable Accounts receivable, net Due from other governments Inventories Prepaid items Restricted cash and cash equivalents Construction in progress Non-depreciable capital assets Depreciable capital assets, net Total assets Liabilities: Accounts payable and accrued liabilities Unearned revenue Non-current liabilities: Due in less than one year Due in more than one year Total liabilities Net Assets: Invested in capital assets, net of related debt Restricted for: Stabilization by State statute Restricted for public safety Restricted for economic and physical development Restricted for education Unrestricted Total net assets $ $ 28,138,552 1,225,422 15,388 2,211,920 3,230,564 90,114 119,618 1,507,101 354,952 9,104,281 14,000,081 59,997,993 Business-Type Activities $ 8,350,321 6,184 312,311 4,450 23,179 460,837 1,787,338 10,944,620 $
Total 36,488,873 1,225,422 21,572 2,524,231 3,235,014 90,114 119,618 1,507,101 378,131 9,565,118 15,787,419 70,942,613
Component Unit Macon County Airport Authority $ 48,311 8,807,631 1,198,442 10,054,384
2,810,634 130,301 4,712,269 45,449,420 53,102,624
293,329 204,580 5,512,126 6,010,035
3,103,963 130,301 4,916,849 50,961,546 59,112,659
3,413 3,413
18,601,883 4,692,105 341,369 252,562 1,648,478 (18,641,028) 6,895,369 $
2,071,354 2,863,231 4,934,585 $
20,673,237 4,692,105 341,369 252,562 1,648,478 (15,777,797) 11,829,954 $
10,006,073 44,898 10,050,971
The accompanying notes are an integral part of the financial statements.
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STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012
Program Revenues Operating Grants and Contributions Capital Grants and Contributions
Functions/Programs: Primary Government: Governmental Activities: General government Public safety Transportation Economic and physical development Human services Cultural and recreational Education Interest on long-term debt Total governmental activities Business-Type Activities: Solid waste Total primary government Component Unit: Airport Authority
Expenses
Charges for Services
10,544,326 13,462,012 709,086 2,977,859 9,376,517 2,349,816 16,309,605 2,118,296 57,847,517
1,047,612 2,110,943 476,355
684,473 4,319,383
1,309,983 642,766 258,237 1,249,048 6,813,452 373,841 10,647,327
133,681 133,681
2,880,580 $ 60,728,097 $
3,458,349 7,777,732 $
10,647,327 $
133,681
135,753
7,240
40,000
676,674
General Revenues: Ad valorem taxes Local option sales tax Unrestricted intergovernmental revenues: Other taxes Gross receipts tax Interest earned on investments Total general revenues Change In Net Assets Net Assets: Beginning of year - July 1 End of year - June 30
13
Exhibit B
Net (Expense) Revenue and Changes in Net Assets Primary Government Component Unit Governmental Activities Business-Type Activities Macon County Airport Authority
Total
(8,186,731) $ (10,708,303) (450,849) (1,118,775) (1,878,592) (2,349,816) (15,935,764) (2,118,296) (42,747,126)
$ (8,186,731) $ (10,708,303) (450,849) (1,118,775) (1,878,592) (2,349,816) (15,935,764) (2,118,296) (42,747,126)
(42,747,126)
577,769 577,769
577,769 (42,169,357)
588,161
28,747,033 7,609,640 342,854 16,488 78,464 36,794,479 (5,952,647)
13,013 13,013 590,782
28,747,033 7,609,640 342,854 16,488 91,477 36,807,492 (5,361,865)
588,161
12,848,016 $ 6,895,369 $
4,343,803 4,934,585
17,191,819 $ 11,829,954 $
9,462,810 10,050,971
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Exhibit C

BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2012
General Fund Assets: Cash and cash equivalents Taxes receivable, net Interest receivable Accounts receivable, net Due from other funds Due from other governments Inventories Prepaid items Cash and cash equivalents, restricted Total assets Liabilities and Fund Balances: Liabilities: Accounts payable and accrued liabilities Due to other funds Deferred revenues Total liabilities Fund Balances: Non-spendable, not in spendable form: Inventories Prepaids Stabilization by State statute Restricted, all others Committed Assigned Unassigned Total fund balances Total liabilities and fund balances $ $ 19,650,804 1,081,406 15,388 1,062,390 241,041 2,893,806 90,114 119,618 2,584 25,157,151 $
Consolidated Capital Project 1,066,505 548,538 1,504,517 3,119,560 $
Debt Service Fund 976,150 44,145 1,020,295
Other Governmental Funds $ 2,460,542 144,016 556,847 336,758 3,498,163
Total Governmental Funds $ 24,154,001 1,225,422 15,388 2,211,920 241,041 3,230,564 90,114 119,618 1,507,101 32,795,169
1,572,078 2,218,515 3,790,593
533,197 533,197
422,236 241,041 144,012 807,289
2,527,511 241,041 2,362,527 5,131,079
90,114 119,618 3,205,817 277,438 1,680,769 15,992,802 21,366,558 25,157,151 $
548,538 1,504,517 533,308 2,586,363 3,119,560 $
44,145 976,150 1,020,295 1,020,295 $
893,605 460,454 1,663,942 (327,127) 2,690,874 3,498,163
90,114 119,618 4,692,105 2,242,409 2,197,250 2,656,919 15,665,675 27,664,090
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Internal service funds are used by management to charge the cost of health insurance. The assets and liabilities of the Internal Service Fund are included in governmental activities in the Statement of Net Assets. Long-term liabilities and compensated absences are not due and payable in the current period and, therefore, are not reported in the funds. Deferred revenues in the governmental funds are used to offset accounts receivable not expected to be available within 90 days of year-end. These receivables are a component of net assets in the Statement of Net Assets. Net assets of governmental activities $
23,459,314
3,701,428 (50,161,689)
2,232,226 6,895,369
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Exhibit D

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2012
General Fund Revenues: Ad valorem taxes Local option sales taxes Unrestricted intergovernmental revenues Restricted intergovernmental revenues Permits and fees Sales and services Interest earned on investments Miscellaneous Total revenues Expenditures: Current: General government Public safety Transportation Economic and physical development Human services Education Cultural and recreational Debt service: Principal repayments Interest Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Issuance of long-term debt Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund Balances: Beginning of year - July 1 End of year - June 30 $ $ 25,924,926 6,095,609 359,342 7,645,173 1,432,807 2,697,408 65,589 43,027 44,263,881 $
Consolidated Capital Project - $ 8,129 164,092 172,221
Debt Service Fund
Other Governmental Funds
Total Governmental Funds 28,634,156 7,609,640 359,342 10,371,836 1,432,807 2,697,408 75,819 409,172 51,590,180
- $ 1,131,384 566 53,521 1,185,471
2,709,230 $ 1,514,031 1,595,279 1,535 148,532 5,968,607
6,295,610 10,069,670 754,920 844,813 9,649,735 8,084,457 2,021,075 37,720,280 6,543,601
8,225,148 8,225,148 (8,052,927)
4,637,634 2,118,296 6,755,930 (5,570,459)
153,503 3,637,436 2,159,415 5,950,354 18,253
6,449,113 13,707,106 754,920 3,004,228 9,649,735 16,309,605 2,021,075 4,637,634 2,118,296 58,651,712 (7,061,532)
351,125 (4,732,183) (4,381,058) 2,162,543
(8,052,927)
5,576,028 5,576,028 5,569
728,296 853,324 (2,048,294) (466,674) (448,421)
728,296 6,780,477 (6,780,477) 728,296 (6,333,236)
19,204,015 21,366,558 $
10,639,290 2,586,363 $
1,014,726 1,020,295 $
3,139,295 2,690,874 $
33,997,326 27,664,090
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Exhibit E

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012
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 Property tax revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds statement. 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 revenues types: Ambulance revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds statement. Public Health fees in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds statement. Expenses related to compensated absences and Law Enforcement Officers' Separation Allowance that do not require current financial resources are not reported as expenditures in the governmental funds statement. Capital assets disposed of during the year are not recognized on the modified accrual basis. 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. The issuance of long-term debt provides current financial resources to governmental funds. However, in the Statement of Activities, these transactions are not revenue, rather they are an increase in liabilities. Depreciation expense allocates the costs of capital assets over their useful lives. It is not reported as an expenditure in the governmental funds statement. 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. The net revenue (expense) of the internal service funds are reported with governmental activities. Change in net assets of governmental activities (Exhibit B) $ $ (6,333,236)
112,877
(77,918)
44,362
(2,117,029) (4,750)
912,731
(728,296)
(1,605,293)
4,637,634 (793,729) (5,952,647)
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Exhibit F

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2012
Budgeted Amounts Original Final Revenues: Ad valorem taxes Local option sales taxes Unrestricted intergovernmental revenues Restricted intergovernmental revenues Permits and fees Sales and services Investment earnings Miscellaneous Total revenues Expenditures: Current: General government Public safety Transportation Economic and physical development Human services Cultural and recreational Intergovernmental: Education Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Appropriated fund balance Total other financing sources (uses) Net change in fund balance Fund Balance: Beginning of year - July 1 End of year - June 30 $ $ $ 26,102,970 5,790,000 365,000 5,869,931 1,146,300 2,193,200 48,000 16,862 41,532,263 $ 26,102,970 5,790,000 365,000 8,435,574 1,321,300 2,448,101 48,000 21,025 44,531,970 $
Actual 25,924,926 6,095,609 359,342 7,645,173 1,432,807 2,697,408 65,589 43,027 44,263,881
Variance from Final Budget Over/Under $ (178,044) 305,609 (5,658) (790,401) 111,507 249,307 17,589 22,002 (268,089)
6,848,178 10,237,790 851,751 773,220 9,257,320 2,001,062 8,121,121 38,090,442 3,441,821
6,946,811 10,694,243 874,083 880,737 11,487,700 2,049,941 8,107,433 41,040,948 3,491,022
6,295,610 10,069,670 754,920 844,813 9,649,735 2,021,075 8,084,457 37,720,280 6,543,601
651,201 624,573 119,163 35,924 1,837,965 28,866 22,976 3,320,668 3,052,579
270,637 (4,684,821) 972,363 (3,441,821) $
270,637 (4,748,849) 987,190 (3,491,022) -
351,125 (4,732,183) (4,381,058) 2,162,543 $
80,488 16,666 (987,190) (890,036) 2,162,543
19,204,015 21,366,558
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Exhibit G

STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012
Business-Type Activities Solid Waste Assets: Current assets: Cash and cash equivalents Interest receivable Accounts receivable, net Due from other government agencies Total current assets Non-current assets: Construction in progress Non-depreciable capital assets Depreciable capital assets, net Total non-current assets Total assets Liabilities: Current liabilities: Accounts payable and accrued liabilities Current portion of long-term liabilities Compensated absences payable - current Total current liabilities Non-current liabilities: Accrued landfill closure and post-closure care cost Compensated absences payable Long-term liabilities - non-current Total non-current liabilities Total liabilities Net Assets: Invested in capital assets, net of related debt Unrestricted Total net assets $
Governmental Activities Internal Service Funds
8,350,321 6,184 312,311 4,450 8,673,266
3,984,551 3,984,551
23,179 460,837 1,787,338 2,271,354 10,944,620
3,984,551
293,329 200,000 4,580 497,909
283,123 283,123
5,112,000 41,222 358,904 5,512,126 6,010,035
283,123
2,071,354 2,863,231 4,934,585 $
3,701,428 3,701,428
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Exhibit H

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2012
Business-Type Activities Solid Waste Operating Revenues: Landfill fees Solid waste disposal fees Charges for services Tipping fees Scrap tire revenues Other Total operating revenues Operating Expenses: Salaries Employee benefits Benefit payments Insurance premiums Operating expenses Landfill closure and post-closure care cost Depreciation Total operating expenses Operating income (loss) Non-Operating Revenues (Expenses): Interest earned on investments Interest and fees Total non-operating revenues (expenses) Change in net assets Net Assets: Beginning of year- July 1 End of year- June 30 $ $
Governmental Activities Internal Service Funds 3,224,310 3,224,310
1,826,775 $ 35,447 1,141,800 41,703 412,624 3,458,349
939,943 393,892 1,031,875 87,068 406,055 2,858,833 599,516
3,575,512 445,172 4,020,684 (796,374)
13,013 (21,747) (8,734) 590,782 4,343,803 4,934,585 $
2,645 2,645 (793,729) 4,495,157 3,701,428
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Exhibit I

STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2012
Business-Type Activities Solid Waste Cash Flows from Operating Activities: Cash received from customers Cash paid for goods and services Cash paid to employees for services Other operating revenues Net cash provided (used) by operating activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on long-term debt Interest paid on long-term debt Net cash provided (used) for capital and related financing activities Cash Flows from Investing Activities: Interest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents: Beginning of year - July 1 End of year - June 30 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Change in estimate of closure and post-closure care cost Other post-employment benefits Changes in assets and liabilities: (Increase) decrease in accounts receivable Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in accrued vacation pay Net cash provided (used) by operating activities $ $
Governmental Activities Internal Service Funds 3,224,310 (4,123,501) (899,191)
3,058,520 $ (992,720) (1,210,698) 524,147 1,379,249
(141,185) (500,000) (21,747) (662,932)
13,013 729,330
2,645 (896,546)
7,620,991 8,350,321 $
4,881,097 3,984,551
599,516
(796,374)
406,055 51,000 117,405 124,318 80,472 483 $ 1,379,249 $
(102,817) (899,191)
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Exhibit J

STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUND JUNE 30, 2012
Agency Funds Assets: Cash and cash equivalents Accounts receivable Total assets Liabilities: Miscellaneous liabilities Intergovernmental payable Total liabilities $ $ 117,783 15,817 133,600
$ $
107,443 26,157 133,600
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012
1. Summary of Significant Accounting Policies The accounting policies of Macon County (the "County") and its discretely presented component units conform to accounting principles generally accepted in the United States of America as they are 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 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 combined financial statements. One of the discretely presented component units presented below is reported in a separate column in the Countys combined financial statements in order to emphasize that it is legally separate from the County. Discretely Presented Component Units Macon County Industrial Facility and Pollution Control Financing Authority Macon 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 combined financial statements. The Authority does not issue separate financial statements. Macon County Airport Authority Macon County Airport Authority exists to purchase, construct, or acquire equipment to improve, maintain, or operate airports and landing fields within the limits of the County. The Authority is fiscally dependent on the County due to the County providing the costs and services of the administrative and finance function. The Authority is governed by five members, all of whom are appointed by the Macon County Commissioners. Therefore, the County has significant influence over the operations of the Authority. Complete financial statements for the individual component units which issued financial statements may be obtained at the administrative offices of the County at 5 West Main Street, Franklin, North Carolina 28734.
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B. Basis of Presentation Government-Wide Statements. The Statement of Net Assets and the Statement of Activities report information on all of the non-fiduciary activities of the primary government and its component units. The effect of interfund activity has been removed from these statements in all material areas. The interfund services provided and used are not eliminated in the process of the consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. The fiduciary funds are excluded from the governmentwide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. All remaining governmental and enterprise funds 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 funds: General Fund. The General Fund is the general operating fund of the County. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund. The Debt Service Fund is used to account for all expenditures for principal and interest for all long-term debt payments. The other governmental fund types provide the resources to the Debt Service Fund to make the payments through transfers. Capital Project Funds. Capital project funds are used to account for financial resources to be used for acquisition or construction of major capital facilities (other than those financed by proprietary funds or trust funds). The County maintains one major Capital Project Fund within the governmental fund types:
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Consolidated Capital Projects accounts for projects related to education facilities. The County has the following fund categories: Governmental Funds. Governmental funds account for the County's general governmental activities. Governmental funds include the following fund types: General Fund. The General Fund is the general operating fund of the County. It is used to account for all financial resources except those required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, sales taxes, federal and State grants, and various other taxes and licenses. The primary expenditures are for public safety, environmental protection, economic and physical development, human services, cultural and recreational projects, education, and general government services. Special Revenue Funds. Special revenue funds are used to account for specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. The County maintains four special revenue funds: the Emergency Telephone System Fund, the Fire Districts Fund, the Clean Water Management Trust Fund, and the Housing Grants Fund. Capital Project Funds. Capital project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds or trust funds). The County has seven nonmajor capital project funds within the governmental fund types: the Airport Improvements Fund, the County Buildings Project Fund, the SCC Campus/Library Project Fund, the Riverbend Estates Waterline Project, the Little Tennessee River/Cartoogechaye Creek Sewer Trunk Project Fund, the Schools Capital Fund, and the Capital Reserve Fund. The County has one major Capital Project Fund. The Consolidated Capital Project Fund is used to account for various school projects that are being constructed or renovated. The fund consists of loan funds and local County dollars for each project. The fund is structured so that revenues and expenditures by project may be easily identified. Proprietary Funds include the following fund types: Enterprise Funds. Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Macon County has one Enterprise Fund: the Solid Waste Fund. The Landfill Closure and Post-Closure Reserve Fund is a reserve established by the County to accumulate the funds necessary to cover the closure and post-closure care costs that will be incurred by the landfill in the future. The Landfill Closure and Post-Closure Reserve Fund is consolidated with the Solid Waste Fund (the operating fund) for financial reporting purposes.
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Internal Service Funds. Internal service funds are used to account for the financing of goods or services provided by one department to other departments of the County on a costreimbursement basis. Macon County has one Internal Service Fund: the Self-Insurance Fund. Fiduciary Funds. Fiduciary funds account for the assets held by the County in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Fiduciary funds include the following funds: Agency Funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve the measurement of operating results. Agency funds are used to account for assets the County holds on behalf of others. The County maintains eight agency funds: the Social Services and Inmate Trust Fund, which accounts for monies deposited with the Social Services Department and Jail for the benefit of certain individuals; the Fines and Forfeitures Fund, which accounts for various legal fines and forfeitures that the County is required to remit to the Macon County Board of Education; the Motor Vehicle Tax Fund, which accounts for registered motor vehicle property taxes that are billed and collected by the County for various municipalities within the County; the Deed of Trust Fund which accounts for $6.20 of each fee collected by the Register of Deeds for registering or filing a deed of trust; the Western Carolina, Industrial Partners Fund, which accounts for monies held by the County as agent for advertising and promotions for Western North Carolina industries; the Hurricane Ivan Relief Fund, which accounts for monies held for hurricane relief and recovery; and the 3% Interest Payable to State, which accounts for interest on delinquent motor vehicle taxes required to be remitted to the State of North Carolina Department of Motor Vehicles. C. Measurement Focus and 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 of accounting. Government-Wide, Proprietary, and Fiduciary Fund Financial Statements. The governmentwide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus, except for the agency funds which have no measurement focus and 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 property taxes is recognized in the fiscal year for which the taxes are levied. 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 funds principal ongoing operations. The principal operating revenues of the County enterprise funds are charges to customers for sales and services. 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 longterm debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Long-term debt issued and acquisitions under capital leases are reported as other financing sources. General capital asset acquisitions are reported as expenditures in governmental funds. 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, Macon 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. Sales taxes 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 Countys policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues.
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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. D. Budgetary Data The County's budgets are adopted as required by North Carolina General Statutes. An annual budget ordinance is adopted for the General Fund, the Debt Service Fund, the Emergency Telephone System Fund, the Capital Reserve Fund, Fire Districts Fund, the Schools Capital Fund, the Enterprise Fund, and the Internal Service Fund. All annual appropriations lapse at fiscal year-end. Project ordinances are adopted for the Housing Grants and Clean Water Management Trust (Special Revenue) Funds, the Consolidated Capital Projects Fund, the Airport Improvements Fund, the Little Tennessee River/Cartoogechaye Creek Sewer Trunk Project Fund, the County Buildings Project Fund, the SCC Campus/Library Project Fund, and the Riverbend Estates Waterline Project Fund. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the departmental level for the General Fund, special revenue funds, Enterprise Fund, and Internal Service Fund, or at the object level for the capital projects funds. The County Manager is authorized by the budget ordinance to transfer appropriations within a fund; however, any such transfers must be reported to the Board of Commissioners and recorded in the minutes. During the year, several amendments to the original budget were necessary, the effects of which were not material. The budget ordinance must be adopted by July 1 of the fiscal year, or the governing board must adopt an interim budget that covers that time until the annual ordinance can be adopted. 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 bankers' acceptances; and the North Carolina Capital Management Trust (NCCMT).
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The Countys 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, an SEC-registered (2a-7) money market fund, are valued at fair value, which is the NCCMTs share price. The NCCMT Term Portfolios securities are valued at fair value. Money market investments 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 money 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. Restricted Assets The restricted assets in the General Fund, in the amount of $2,584, represents amounts reserved for the Public School Building Capital Fund. The restricted assets in the Consolidated Capital Project Fund of $1,504,517 represent the balance of proceeds available under installment purchase contracts to finance construction and renovations to schools. 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. Allowances for Doubtful Accounts All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. This amount is estimated by analyzing the percentage of receivables that were written off in prior years. Inventories and Prepaid Items Inventories are valued at cost (first-in, first-out method), which approximates market values. The inventory of the General Fund consists of expendable supplies and is recorded as expenditure when consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items, using the consumption method in both government-wide and fund financial statements.
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Capital Assets Capital assets are recorded at original cost. Donated assets are listed at the market value at the date of donation. The County has elected not to capitalize those interest costs which are incurred during the construction period of capital assets. The Countys capitalization threshold is $5,000. The County holds title to certain Macon County Board of Education properties which 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 the 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 Macon County Board of Education. Capital assets in the enterprise funds of the County are recorded at original cost at the time of acquisition. Capital assets donated to the Enterprise Fund operations are recorded at the estimated fair market value at the date of donation. Capital assets are depreciated on a straight-line basis over the following estimated useful lives:
Asset Buildings Equipment Vehicles
Estimated Useful Lives 15-20 years 7 years 5 years
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 governmental fund types, the face amount of debt issued is reported as other financing sources. Bond premiums and discounts, as well as bond issuance costs, are recognized during the current period. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
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Net Assets/Fund Balances Net Assets Net assets in the 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 statute. 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 in tact. Inventories 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. Prepaids portions of fund balance that are not an available resource because it represents the year-end balance of ending prepaids, which are not spendable resources. 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)]. This amount is usually comprised of accounts receivable and interfund receivables, which are not offset by deferred revenues. Restricted for Public Safety portion of fund balance restricted by revenue source for public safety related activities such as police, fire, EMS, and E-911, including Title III timber receipts. Restricted for Economic and Physical Development portion of fund balance restricted by revenue source for economic development incentives and projects. Restricted for Education portion of fund balance restricted by revenue source to be used to support public education, including timber receipts which are restricted by the federal government for educational purposes.
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Restricted fund balance at June 30, 2012 is as follows:
Purpose Restricted, all other: Public safety Economic and physical development Education Total
General Fund $
Consolidated Capital Project
Other Governmental Funds 207,892 252,562 460,454
133,477 $ 143,961 277,438 $
- $ 1,504,517 1,504,517 $
Committed Fund Balance This classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority. The 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 (the adoption of another ordinance) to remove or revise the limitation. Committed for Education represents the portion of fund balance committed by the governing body for education related purposes. Committed for General Government represents the portion of fund balance committed by the governing body for future governmental related capital projects. Committed fund balance at June 30, 2012 is as follows:
Purpose Committed: General Government Education Total
Consolidated Capital Project $ $ - $ 533,308 533,308 $
Other Governmental Funds 1,663,942 1,663,942
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Assigned Fund Balance Assigned fund balance is the portion of fund balance that Macon County intends to use for specific purposes. The County's governing body has the authority to assign fund balance. The Manager and Finance Officer, as granted in the officially adopted budget ordinance, have been granted limited authority to assign fund balance. Subsequent Year's Expenditures portion of fund balance that is appropriated in the next year's budget that is not already classified in restricted or committed. The governing board approves the appropriation. Assigned for Debt Service portion of fund balance budgeted by the governing board to be used to service outstanding debt. Assigned fund balance at June 30, 2012 is as follows:
Purpose Assigned: Subsequent year's expenditures Debt service Total
General Fund $ $ 1,680,769 $ 1,680,769 $
Debt Service Fund 976,150 976,150
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. Macon 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 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 has not officially adopted a fund balance policy.
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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 Less: Inventories Prepaids Stabilization by State statute Total available fund balance
21,366,558 90,114 119,618 3,205,817
17,951,009
F. Revenues, Expenditures, and Expenses Other Resources The General Fund provides the basis of local resources for other governmental funds. These transactions are recorded as "Transfers out" in the General Fund and "Transfers in" in the receiving fund. Compensated Absences The vacation policy of the County provides for the accumulation of up to thirty (30) days earned vacation leave, with such leave being fully vested when earned. All vacation pay is accrued when earned in the Government-Wide and Proprietary Fund financial statements. 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. Since the County has no obligation for the accumulated sick leave until it is actually taken, no accrual for sick leave has been made. G. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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, and landfill closure and post-closure care costs.
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2. Detail Notes On All Funds A. Assets 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 level are collateralized with securities held by the County's agent in the Countys 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 Countys agent in the entitys 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 with 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 undercollaterization, 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 formal 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. At June 30, 2012, the County's deposits had a carrying amount of $9,593,309 and a bank balance of $10,908,946. Of the bank balance, $500,000 was covered by federal depository insurance and $10,408,946 by collateral held under the Pooling Method. Cash on hand was $2,250.
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Investments At June 30, 2012, the County had the following investments and maturities:
Investment Type Commercial paper North Carolina Capital Management Trust-Cash Portfolio Total
Less Than Fair Value 6 Months 6-12 Months $ 6,715,277 $ 6,715,277 $ 21,802,921 $ 28,518,198 $ N/A 6,715,277 $ N/A -
Interest Rate Risk. The County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from rising interest rates. Credit Risk. State law limits investments in commercial paper to the top rating issued by nationally recognized statistical rating organizations (NRSROs); however, the County had no formal policy on managing credit risk. As of June 30, 2012, the Countys investments in commercial paper were rated A1 by Standard & Poors, F1 by Fitch Ratings, and P1 by Moodys Investors Service. The Countys investments in the NC Capital Management Trust Cash Portfolio carried a credit rating of AAAm by Standard & Poors as of June 30, 2012. Concentration of Credit Risk. The County places no limit on the amount that the County may invest in any one issuer. More than five percent of the Countys investments were in the following securities:
Investment Type Commercial Paper: Fcar Owner Trust Barclays US Funding
% of Total Investment 16.53% 7.01%
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Property Tax Use-Value Assessment on Certain Lands In accordance with the General Statutes, agriculture, horticulture, and forestland 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.
Fiscal Year Levied 2007 2008 2009 2010 2011 Total $
Tax 1,067,293 $ 1,247,005 1,280,724 1,408,592 1,407,716 6,411,330 $
Interest 60,035 $ 72,040 73,987 206,062 $
Total 1,127,328 1,319,045 1,354,711 1,408,592 1,407,716 6,617,392
Receivables Receivables at Exhibit A at June 30, 2012 were as follows:

Due from Other Governments 2,893,806 $ 336,758 3,230,564 3,230,564 $
Accounts Governmental Activities: General Other governmental Total receivables Allowance for doubtful accounts Total governmental activities Business-Type Activities: Solid Waste Allowance for doubtful accounts Total business-type activities $ $ 1,062,390 $ 1,149,530 2,211,920 2,211,920 $
Taxes 1,940,841 $ 260,279 2,201,120 (975,698) 1,225,422 $
Interest 15,388 $ 15,388 15,388 $
Total 5,912,425 1,746,567 7,658,992 (975,698) 6,683,294
495,471 $ (183,160) 312,311 $
- $ - $
6,184 $ 6,184 $
4,450 $ 4,450 $
506,105 (183,160) 322,945
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Due from other governments consisted of the following:
Local option sales and use tax/sales tax refund Grants receivable/other Total
Governmental Activities $ 170,024 3,060,540 $
Business-Type Activities $ 4,450 4,450
3,230,564 $
Governmental Capital Assets A summary of changes in the Countys governmental capital assets follows:
July 1, 2011 Non-Depreciable Assets: Land Construction in progress Depreciable Assets: Buildings and improvements Equipment Vehicles Total Less Accumulated Depreciation: Buildings and improvements Equipment Vehicles Total accumulated depreciation Capital assets, net $ 12,290,923 1,989,665 4,017,926 18,298,514 24,156,626 $ 1,092,928 165,477 346,888 1,605,293 (692,562) $ (94,045) (94,045) (4,750) $ - $ 13,383,851 2,061,097 4,364,814 19,809,762 23,459,314 25,499,397 2,624,463 4,851,302 42,455,140 421,077 14,041 328,942 912,731 (98,795) (98,795) 169,416 26,089,890 2,539,709 5,180,244 43,269,076 $ 9,104,281 $ 375,697 - $ 148,671 - $ - $ (169,416) 9,104,281 354,952 Additions Retirements Transfers June 30, 2012
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Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities: General government Public safety Economic and physical development Transportation Human services Cultural and recreational Total
541,793 507,193 3,460 94,335 87,387 371,125 1,605,293
Proprietary Capital Assets The capital assets of the Proprietary Fund at June 30, 2012 are as follows:
July 1, 2011 Non-Depreciable Assets: Construction in progress Land Depreciable Assets: Buildings and improvements Equipment Vehicles Total Less Accumulated Depreciation: Buildings and improvements Equipment Vehicles Total accumulated depreciation Capital assets, net $ $ - $ 460,837 9,395,567 2,116,215 692,115 12,664,734 Additions 23,179 $ 105,258 12,748 141,185 Retirements June 30, 2012 - $ 23,179 460,837 9,395,567 2,221,473 704,863 12,805,919
7,931,421 1,523,352 673,737 10,128,510 2,536,224 $
203,715 190,810 11,530 406,055 (264,870) $
- $
8,135,136 1,714,162 685,267 10,534,565 2,271,354
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Summary Disclosure of Significant Construction Commitments At June 30, 2012, the County had commitments of approximately $263,297 for water and sewer construction, of which $261,297 is grant funds and $2,000 is a forgiveness loan. The County also has commitments of $1,266,259 for school construction, all loan funds. B. Liabilities Payables Payables at Exhibit A at June 30, 2012 were as follows:
Insurance Claims Incurred But Not Reported 283,123 $
Vendors Governmental Activities Business-Type Activities: Solid Waste $ 1,759,182 $
Salaries and Benefits
Total 2,810,634
768,329 $
246,717 $
46,612 $
- $
293,329
Pension Plan and Post-Employment Obligations Local Governmental Employees' Retirement System Plan Description. Macon County contributes to the State-wide Local Governmental Employees' Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of North Carolina. LGERS 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 North Carolina General Assembly. The LGERS 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 the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.
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Funding Policy. Plan members are required to contribute six percent of their annual covered salary. The County is required to contribute at an actuarially determined rate. For the County, the current rate for employees not engaged in law enforcement and for law enforcement officers is 6.88% and 6.91%, respectively, of annual covered payroll. The contribution requirements of members and of Macon County are established and may be amended by the North Carolina General Assembly. The County's contributions to LGERS for the years ended June 30, 2012, 2011, and 2010 were $922,113, $823,724, and $687,645, respectively. The contributions made by the County equaled the required contributions for each year. Law Enforcement Officers Special Separation Allowance Plan Description Macon 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 percent of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increases 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. The Plan does not issue a separate stand-alone financial report. Each local government makes benefit payments required under this Plan. All full-time County law enforcement officers are covered by the Separation Allowance. At December 31, 2011, the Separation Allowance's membership consisted of 45 active Plan members and zero retired members receiving benefits. Summary of Significant Accounting Policies Basis of Accounting. The County has chosen to fund the Separation Allowance on a pay-asyou-go basis. There are no Plan assets and the liability is not material; therefore, the Plan is not presented as a pension trust fund in the County's Comprehensive Annual Financial Report. 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 administration costs. These expenditures are paid as they come due. 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.
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The annual required contribution for the current year 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 and (b) projected salary increases ranging from 4.25% to 7.85% per year. Item (b) included an inflation component of 3.00%. The assumptions did not include post-retirement benefit increases. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at December 31, 2010 is 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 Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Employer contributions made for fiscal year ending June 30, 2012 Increase (decrease) in net pension obligation Net pension obligation: Beginning of year - July 1 End of year - June 30
56,353 13,875 (16,554) 53,674 53,674 277,494 331,168
Three-Year Trend Information Fiscal Year Ended 6/30/2010 6/30/2011 6/30/2012 Annual Pension Cost (APC) $ 45,685 60,497 53,674 Percentage of APC Contributed 22.99% 4.82% 0.00% Net Pension Obligation $ 219,914 277,494 331,168
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 was $451,996, and the actuarial value of assets was $-0-, resulting in an unfunded actuarial accrued liability (UAAL) of $451,996. The covered payroll (annual payroll of active employees covered by the Plan) was $1,942,902, and the ratio of the UAAL to the covered payroll was 23.26 percent.
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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 the Plan assets are increasing or decreasing, over time, relative to the actuarial accrued liability benefits. Supplemental Retirement Income Plan for Law Enforcement Officers Plan Description. The County contributes to the Supplemental Retirement Income Plan (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 States CAFR includes pension trust fund financial statements for the Internal Revenue Code Section 401 (k) plan that includes the 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 that the County contribute each month an amount equal to five percent of each officers 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 $161,787, which consisted of $96,346 from the County and $65,441 from the law enforcement officers. Register of Deeds Supplemental Pension Fund Plan Description. Macon County also contributes to the Register of Deeds Supplemental Pension Fund (Fund), a non-contributory, defined contribution plan administered by the North Carolina Department of State Treasurer. The Fund provides supplemental pension benefits to any County register of deeds who is retired under the Local Governmental Employees Retirement System (LGERS) or an equivalent locally sponsored plan. Article 3 of G.S. Chapter 161 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Registers of Deeds Supplemental Pension Fund is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The States 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.
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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 1 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 funds assets may be used by the State Treasurer in administering the Fund. For the fiscal year ended June 30, 2012, the Countys required and actual contributions were $3,693. Other Post-Employment Benefits - Healthcare Benefits Plan Description. In addition to providing pension benefits, the County has elected to provide post-retirement healthcare benefits to retirees of the County who participate in the North Carolina Local Government Employees Retirement System (System) and have at least fifteen years of creditable service with the County. The County pays the full cost of coverage for these benefits to qualifying retirees. Also, retirees can purchase coverage for their dependents at the Countys group rates. Currently, 27 retirees are eligible for post-retirement health benefits. For the fiscal year ended June 30, 2012, the County made payments for post-retirement health benefit premiums of $126,686. The plan is a single-employer defined benefit plan. The County obtains healthcare coverage through private insurers. A separate report was not issued for the plan. Membership of the Plan consisted of the following at December 31, 2011, the date of the latest actuarial valuation:
Retirees and dependents receiving benefits Terminated plan members entitled to, but not yet receiving, benefits Active plan members Total
General Employees 38 324 362
Law Enforcement Officers N/A 45 45
Funding Policy. The County pays 100% of the cost of coverage for the healthcare benefits paid to qualified retirees under a County resolution that can be amended by the County Board. The Countys members pay the current active employee rate for dependent coverage, if the retiree elects to purchase the coverage. The County has chosen to fund the healthcare benefits on a pay-as-you-go basis.
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The current ARC rate is 17.03% of annual covered payroll. For the current year, the County contributed $126,686, or .96% of annual covered payroll. The County purchases insurance from a private carrier for healthcare coverage of retirees over 65 years of age. The Countys required contributions under a County resolution for employees not engaged in law enforcement and for law enforcement officers represented 17.03% and 17.03% of covered payroll, respectively. There were no contributions made by employees, except for dependent coverage in the amount of $8,000. The Countys obligation to contribute to the Plan is established and may be amended by the County Board. Summary of Significant Accounting Policies Post-employment expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. No funds are set aside to pay benefits and administration costs. These expenditures are paid as they come due. Annual OPEB Cost and Net Obligation The Countys annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 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 30 years. The following table shows the components of the Countys annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the Countys net OPEB obligation for the healthcare benefits:
Governmental Business-Type Activities Activities $ 2,128,925 $ 123,906 $ 179,745 10,461 (171,712) (9,994) 2,136,958 (119,718) 2,017,240 4,513,653 $ 6,530,893 $ 124,373 (6,968) 117,405 241,499 358,904 $
Annual required contribution Interest on net OPEB obligation Adjustments to annual required contribution Annual OPEB cost (expense) Contributions made Increase (decrease) in net OPEB obligation Net OPEB obligation: Beginning of year - July 1 End of year - June 30
Total 2,252,831 190,206 (181,706) 2,261,331 (126,686) 2,134,645 4,755,152 6,889,797
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The Countys annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation as of June 30, 2012 were as follows:
Year Ended June 30 2009 2010 2011 2012
OPEB Cost 1,345,982 1,966,157 1,976,023 2,261,331
Annual OPEB Cost Contributed 12.7% 8.6% 9.7% 5.6%
OPEB Obligation $ 1,174,412 2,971,129 4,755,152 6,889,797
Fund 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, thus, the unfunded actuarial accrued liability (UAAL), was $24,138,030. The covered payroll (annual payroll of active employees covered by the Plan) was $13,228,526, and the ratio of the UAAL to the covered payroll was 182.5 percent. 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 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 are increasing or decreasing, over time, relative to the actuarial accrued liability benefits. 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 types 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. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations. In the December 31, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.00 percent investment rate of return (net of administrative expenses), which is the expected long-term investment returns on the employers own investments calculated based on the funded level of the Plan at the valuation date, and an annual pre-medical cost trend rate increase of 9.50 to 5.00 percent annually and an annual postMedicare trend rate increase of 7.00 to 5.00 percent annually. Both rates included a 3.00
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percent inflation assumption. The actuarial value of assets, if any, was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2011 was 30 years. As of June 30, 2012, management had not decided on the funding options for this outstanding obligation; therefore, OPEB will continue to be funded on a pay-as-you-go basis going into the next fiscal year. Management will continue their efforts to find a way to fund the annual required contribution while maintaining the level of service as prioritized by the County Board of Commissioners. 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 multi-employer, State-administered, cost-sharing plan funded on a one-year term cost basis. Lump-sum death benefits are provided to beneficiaries 1) who die in active service after one year of contributing membership in the System, or 2) 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. This payment is equal to the employee's 12 highest months' salary in a row during the 24 months prior to his/her death, but the benefit will be a minimum of $25,000 and will not 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 payrolls, 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 $15,317. The County's required contributions for employees not engaged in law enforcement and for law enforcement officers represented .11% and .14% of covered payroll, respectively. Landfill Closure and Post-Closure Care Costs Federal and State laws and regulations require the County to place a final cover on its landfills when they stop accepting waste and to perform certain maintenance and monitoring functions at the site. The County has operated three different landfills. The Old Franklin Landfill was opened in approximately 1962 and stopped accepting waste on December 31, 1992 and has since been closed. The Highlands Landfill has been operated by the County since approximately 1985 and stopped accepting waste on October 8, 1993 and was completely
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closed during the next year. The old landfills continue to require monitoring and some remediation activities. Macon County opened the New Franklin Landfill in May 1992. During 1999, the County expanded the cell at the New Franklin Landfill. Although the closure and post-closure care costs for these landfills are being 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 as of each balance sheet date. The $5,112,000 reported as landfill closure and post-closure care liability at June 30, 2012 represents the cumulative amount reported to date for the closure and post-closure care costs of all landfills noted above. Of the cumulative amount reported to date, $4,517,000 reflects the costs of the New Franklin Landfill. The new landfill costs are based on 81.36% of the total estimated capacity of the landfill. The County will recognize the remaining estimated cost of closure and post-closure care of $1.03 million as the remaining capacity is filled. These amounts are based on what it would cost to perform all closure and post-closure care in 2012. The County expects to close the current cells of the New Franklin Landfill in 2017. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. Deferred Revenues/Unearned Revenues The balance in deferred revenues on the fund statements and unearned revenues on the government-wide statements at June 30, 2012 is composed of the following elements:
Taxes receivable (net) Ambulance fees receivable Other (net) Taxes collected in advance Total
Deferred Revenues General Fire District Fund Fund $ 1,081,408 $ 144,012 805,000 201,806 130,301 $ 2,218,515 $ 144,012
Unearned Revenues General Fire District Fund Fund $ - $ 130,301 $ 130,301 $ -
Risk Management The County is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County participates in one of the self-funded risk financing pools administered by the Risk Management Agency of the North Carolina Association of County Commissioners. Through this pool, the County obtains property coverage equal to replacement value of owned property subject to a limit of $56,085,672, general, auto, professional, and employment practices liability coverage of $2,000,000. The County obtains workers compensation coverage through North Carolina Association of County Commissioners.
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The County carries an Umbrella Option which provides excess general liability, auto liability, public officials, or law enforcement limits. The Umbrella Option comes into play when the primary limits have been exhausted. The County carries an Umbrella Option limit of $1,000,000 with no deductible. The County is self-insured for all other risks of loss, including employee health and accident insurance. A third-party administrator, paid by the County, administers health benefits and pays claims. The County has stop-loss insurance coverage with a commercial insurance company for claims that exceed $75,000. Settled claims from these risks have not exceeded commercial insurance coverage in any of the last three fiscal years. Macon County is a certified County participating under the National Flood Insurance Program applicable to FEMA flood zones A, AE, AH, and HO, and coverage is through the North Carolina Association of County Commissioners Insurance Pool Program. Deductibles are $25,000 per occurrence. Deductibles are funded in a reserve in the General Fund. Coverage limits are 1 million per occurrence in excess of NFIP coverage. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred, but not reported (IBNRs). The Countys claims incurred, but not reported, are considered a current liability and are included in accounts payable of the Internal Service Fund. Changes in the balances of claims liabilities during the past fiscal year are as follows:
Unpaid claims - beginning Incurred claims Claim payments Unpaid claims - ending
2012 385,490 $ 3,473,145 (3,575,512) 283,123 $
2011 299,498 3,934,279 (3,848,287) 385,490
In accordance with G.S. 159-29, the Countys employees that have access to $100 or more at any given time of the Countys funds are performance bonded through a commercial surety bond. The Finance Director and Tax Collector are each individually bonded for $250,000. The County Manager and the Register of Deeds are bonded for $75,000 and $50,000 each, respectively. The remaining employees that have access to funds are bonded under a blanket bond for $100,000.
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Long-Term Obligations Installment Purchase Contracts
Serviced by Governmental Funds: The County entered into an installment purchase contract dated December 10, 2003, in the amount of $2,850,000 for school expansion. The contract is payable in ten (10) annual installments of $285,000, plus interest at 3.17% per annum. The County entered into a refunding Certificate of Participation contract dated April 15, 2004, in the amount of $17,165,000 to refund various installment debt, including school construction. The contract is payable in eleven (11) annual installments ranging from $610,000 to $1,820,000, plus interest ranging from 2.25% to 5.0% per annum. The County entered into an installment purchase contract dated July 29, 2005, in the amount of $5,000,000 for library and community college expansion. The contract is payable in thirty (30) semi-annual installments of $166,667, plus interest at 3.48% per annum. $2,000,000 East Franklin School Qualified Zone Academy Bonds requiring 30 semi-annual deposits of $52,795 into a Debt Service Fund; final payment of the bonds is December 13, 2022. The County entered into an installment purchase contract dated December 10, 2007, in the amount of $2,600,000 for acquisition of land to be used for public school purposes. The contract is payable in thirty (30) semi-annual installments of $86,667, plus interest at 3.69% per annum. The County entered into an installment purchase contract dated July 8, 2009, in the amount of $20,000,000 for 5-6 Grade School and an addition to East Franklin Elementary. The contract is payable in forty (40) semi-annual installments of $500,000, plus interest at 4.59% per annum. The County entered into an installment purchase agreement dated December 8, 2009, in the amount of $500,000 for purchase and equipment and vehicles. The contract is payable in ten (10) semi-annual installments of $50,000, plus interest at 3.08% per annum. $1,800,000 Nantahala School Qualified Zone Academy Bonds requiring 30 semi-annual deposits of $60,000, plus interest into a Debt Service Fund; final payment of the bonds is December 18, 2024.
285,000
3,900,000
2,833,333
1,524,848
1,906,667
16,500,000
250,000
1,560,000
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Serviced by Governmental Funds (continued): $12,889,667 Iotla Valley School Project Qualified School Construction Bonds requiring 34 semi-annual deposits of $379,108, plus interest into a Debt Service Fund; final payment of the bonds is October 12, 2028. The County entered into a note payable agreement dated September 1, 2009, in the amount of $2,043,250, 2.56% interest, with annual installments of $102,163, with a final payment due in 2031, secured by water lines. Total installment contracts $
11,752,343
1,941,088 42,453,279
Serviced by Solid Waste Fund: The County entered into an installment purchase contract dated March 28,2008, in the amount of $1,000,000 for the construction of a solid waste transfer station. The contract is payable in ten (10) semi-annual installments of $100,000, plus interest at 2.97% annum. Total installment contracts
$ $
200,000 200,000
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Debt Service Requirements The following tables summarize the annual requirements to amortize all long-term debt outstanding (excluding vacation pay and pension benefit obligation) as of June 30, 2012:
General Long-Term Debt: Installment Contracts: Year Ending June 30 2013 2014 2015 2016 2017 2018-2022 2023-2027 2028-2031 Total
Principal $ 4,627,634 $ 4,332,634 3,252,634 2,592,634 2,592,634 12,463,171 10,304,177 2,287,761 $ 42,453,279 $
Interest 1,888,625 1,687,764 1,486,571 1,347,044 1,231,046 4,423,971 1,789,158 105,410 13,959,589
Solid Waste Fund: Installment Contracts Year Ending June 30 2013 Total
Principal $ 200,000 $ $ 200,000 $
Interest 4,455 4,455
At June 30, 2012, the County had a legal debt margin of $700,772,885.
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Long-Term Obligation Activity A summary of changes in long-term debt for the fiscal year ended June 30, 2012 follows:
Current Portion of Balance 4,627,634 84,635 4,712,269
Balance July 1, 2011 Governmental Activities: Installment contracts Compensated absences Other post-employment benefits LEO Separation Allowance Total governmental activities Business-Type Activities: Installment contracts Accrued landfill closure and post-closure care cost Other post-employment benefits Compensated absences Total business-type activities $ 46,362,617 $ 800,234 4,513,653 277,494 $ 51,953,998 $
Increases 728,296 $ 760,349 2,136,958 53,674 3,679,277 $
Decreases
Balance June 30, 2012 42,453,279 $ 846,349 6,530,893 331,168 50,161,689 $
4,637,634 $ 714,234 119,718 5,471,586 $
700,000 $ 5,061,000 241,499 45,319
- $ 109,000 124,373 45,438 278,811 $
500,000 $ 58,000 6,968 44,955 609,923 $
200,000 $ 5,112,000 358,904 45,802 5,716,706 $
200,000 4,580 204,580
6,047,818 $
Compensated absences typically have been liquidated in the General Fund and are accounted for on a LIFO (last-in, first-out) basis, assuming that employees are taking leave time as it is earned. Other post-employment benefits and pension obligations are typically liquidated in the General Fund.
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C. Capital Assets, Net of Related Debt Capital assets, net of related debt, at June 30, 2012 are computed as follows:
Capital assets, net of accumulated depreciation Less capital debt: Gross debt Less school debt related to assets which the County does not hold title to County related debt Capital assets, net of related debt
Governmental Business-Type Activities Activities $ 23,459,314 $ 2,271,354 42,453,279 (37,595,848) 4,857,431 $ 18,601,883 $ 200,000 200,000 2,071,354
D. Interfund Balances and Activity

Transfers From Transfers From/To Other Funds: General Fund: General Fund Other Governmental Funds: County building projects Housing Grants Fund Clean Water Management Trust Fund SCC Campus/ Library Projects Fund Emergency Telephone System Fund Airport Improvements Fund Schools Capital Fund Debt Service Fund: Debt Service Fund: Total To Purpose
$ 4,732,183 $ 257,242 32,594 238,051 80,480 1,439,927 -
351,125 Various purposes 250,000 71,000 257,242 275,082 EMS and Sheriff renovations Administrative funds Close fund Close fund General Fund reimbursement Grant matching funds Debt retirement
5,576,028 Debt retirement
$ 6,780,477 $ 6,780,477
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The following is a summary of interfund receivables and payables:
Receivable Fund General Fund General Fund Total
Payable Fund Schools Capital Fund Housing Grants Fund $ $
Amount 201,550 39,491 241,041
Purpose Temporary reimbursement of cash over drafts
The interfund balances above are advances until project funding is received. 3. Related Party The County entered into a lease on January 11, 2011, to lease office space in a building owned by one of the Commissioners of the Macon County Board of Commissioners. At June 30, 2012, lease expense for this lease amounted to $3,000. 4. Joint Ventures Fontana Regional Library The County participates in a joint venture to operate the Fontana Regional Library (Library) with five other local governments. Each participating county may appoint three Board members to the nine-member Board of the Library. The County has an ongoing financial responsibility for the joint venture, because the Library's continued existence depends on the participating governments' continued funding. None of the participating governments have any equity interest in the Library, so no equity interest has been reflected in the financial statements at June 30, 2012. In accordance with the intergovernmental agreement between the participating governments, the County appropriated $951,390 to the Library to supplement its activities. Complete financial statements for the Library may be obtained from the Library's offices at 33 Fryemont Street, Bryson City, North Carolina 28713. 5. Jointly Governed Organizations Southwestern North Carolina Planning and Economic Development Commission The County, in conjunction with seven other counties and sixteen municipalities, established the Southwestern North Carolina Planning and Economic Development Commission (Commission). The participating governments established the Commission to coordinate funding received from various federal and State agencies. Each participating government appoints one member to the Commission's 23-member governing board.
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Smoky Mountain Mental Health Center The County, in conjunction with seven other counties, established the Smoky Mountain Mental Health Center (Center). The participating governments established the Center to provide mental health services to the Western Region of North Carolina. Each participating government appoints one member to the Center's governing board. The County contributed $106,623 to the Center during the fiscal year ended June 30, 2012. Southwestern Community College The County, in conjunction with the State of North Carolina, one other county and two boards of education, participates in a joint venture to operate Southwestern Community College (Community College). The County appoints two members; the State, the other County, and the Boards of Education appoint 11 members of the 13-member Board of Trustees of the Community College. The Community College is included as a component unit of the State. The County has the basic responsibility for providing funding for the 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 facilities. The County contributed $426,753 to the Community College for operating and capital 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 275 Webster Road, Franklin, North Carolina 28779. 6. Summary Disclosure of Significant Commitments and Contingencies Federal and State-Assisted Programs The County has received proceeds from federal and State grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant 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 grant monies.
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7. 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 that 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.
Medicaid Temporary Assistance to Needy Families Low Income Energy Assistance Special Supplemental Food Program for Women, Infants, and Children IV-E Adoption Subsidy IV-E Foster Care State/County Domiciliary Care State Foster Home CWS Adoption Subsidy SFHF Maximization Foster Care Special Provision Totals
Federal 25,113,574 $ 6,438 397 720,397 143,947 49,728 -
State 14,947,420 38,510 14,127 188,803 6,235 13,101 10,123 3,945 15,222,264
26,034,481 $
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REQUIRED SUPPLEMENTAL FINANCIAL DATA

This section contains additional information required by generally accepted accounting principles. Schedule of Funding Progress for the Law Enforcement Officers' Special Separation Allowance. Notes to the Required Schedules for the Law Enforcement Officers' Special Separation Allowance. Schedule of Funding Progress for Other Post-Employment Benefits Retiree Health Plan. Notes to the Required Schedules for Other Post-Employment Benefits Retiree Health Plan.
Schedule A-1

LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANCE REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2012
Schedule of Funding Progress Actuarial Value of Assets (A) $ Actuarial Accrued Liability (AAL) Projected Unit Credit (B) $ 167,853 191,635 225,352 189,929 213,344 249,615 284,422 410,466 371,101 451,996 UAAL as a % of Covered Payroll ((B-A)/C) 14.10% 14.68% 16.24% 14.07% 13.37% 13.87% 15.16% 22.17% 20.31% 23.26%
Actuarial Valuation Date 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Unfunded AAL (UAAL) (B-A) $ 167,853 191,635 225,352 189,929 213,344 249,615 284,422 410,466 371,101 451,996
Funded Ratio (A/B) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $
Covered Payroll (C) 1,190,477 1,305,116 1,387,372 1,350,162 1,596,079 1,799,155 1,876,713 1,851,404 1,827,178 1,942,902
Schedule of Employer Contributions Annual Required Contribution (ARC) $ 24,662 26,076 29,384 33,073 27,059 32,759 38,164 43,929 61,274 56,353 Percentage of ARC Contributed 0.00% 0.00% 59.79% 54.81% 66.99% 55.37% 58.32% 23.91% 4.76% 0.00%
Fiscal Year Ended 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012
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 Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return* Projected salary increases Cost of living adjustments * Includes inflation at 3.00% December 31, 2010 Projected unit credit Level percent of pay closed 20 years Market value 5.00% 4.25% - 7.85% N/A
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Schedule A-2

OTHER POST-EMPLOYMENT BENEFITS RETIREE HEALTH PLAN REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS FOR THE YEAR ENDED JUNE 30, 2012
Schedule of Funding Progress Actuarial Value of Assets (A) $ Actuarial Accrued Liability (AAL) Projected Unit Credit (B) $ 13,451,434 19,995,127 24,138,030 UAAL as a % of Covered Payroll ((B-A)/C) 111.6% 143.6% 182.5%
Actuarial Valuation Date 12/31/2006 12/31/2009 12/31/2011
Unfunded AAL (UAAL) (B-A) $ 13,451,434 19,995,127 24,138,030
Funded Ratio (A/B) 0.00% 0.00% 0.00% $
Covered Payroll (C) 12,054,939 13,928,924 13,228,526
Schedule of Employer Contributions Annual Required Contribution (ARC) $ 1,345,982 1,959,710 1,959,710 2,252,831 Percentage of ARC Contributed 12.7% 8.6% 9.8% 5.6%
Fiscal Year Ended 6/30/2009 6/30/2010 6/30/2011 6/30/2012
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 Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions Investment rate of return* Medical cost trend rate: Pre-Medicare trend rate Post-Medicare trend rate Year of Ultimate trend rate * Includes inflation at 3.00% December 31, 2011 Projected unit credit Level percent of pay, open 30 years Market value of assets 4.00% 9.50% - 5.00% 7.00% - 5.00% 2018
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SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
THE GENERAL FUND

The General Fund accounts for resources traditionally associated with government that are not required legally or by sound financial management to be accounted for in other funds.

GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
Schedule B-1 Page 1 of 13
2012 Budget Revenues: Ad Valorem Taxes: Taxes - current Taxes - prior Interest and advertising Total Local Option Sales Taxes: Article 39 one percent Article 40 one-half of one percent Article 42 one-half of one percent Article 44 one-half of one percent Total Unrestricted Intergovernmental Revenues: Payment in lieu of taxes Gross receipts tax Total Restricted Intergovernmental Revenues: Federal and State grants ABC revenues Facility fees/CSC Federal forfeiture and controlled substance Local health and social services Total Permits and Fees: Inspection fees Register of Deeds Occupancy tax BOE fees Civil license fees Addressing fees Concealed handgun permits Total Actual Variance Over/Under 2011
25,486,270 500,000 116,700 26,102,970
25,018,623 718,560 187,743 25,924,926
(467,647) $ 218,560 71,043 (178,044)
25,116,151 628,472 169,778 25,914,401
3,725,000 1,185,000 880,000 5,790,000
3,912,639 1,285,977 890,396 6,597 6,095,609
187,639 100,977 10,396 6,597 305,609
3,420,687 1,157,980 808,892 (19,763) 5,367,796
350,000 15,000 365,000
342,854 16,488 359,342
(7,146) 1,488 (5,658)
331,692 16,976 348,668
6,173,017 10,500 50,000 14,765 2,187,292 8,435,574
5,552,735 11,602 70,449 14,962 1,995,425 7,645,173
(620,282) 1,102 20,449 197 (191,867) (790,401)
5,336,117 11,767 56,425 10,506 614,178 6,028,993
350,400 422,000 425,000 5,000 3,900 75,000 40,000 1,321,300
383,599 457,684 476,355 20 4,091 74,743 36,315 1,432,807
33,199 35,684 51,355 (4,980) 191 (257) (3,685) 111,507
293,240 440,096 456,716 161 4,022 28,183 1,222,418
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2012 Budget Sales and Services: Rents, concessions and fees Ambulance fees Other public safety fees Cable TV franchise fees Health fees Aging program income Total Investment Earnings Miscellaneous: Other Total Total Revenues Expenditures: General Government: Governing Body: Salaries and employee benefits Operating expenditures Total Administration: Salaries and employee benefits Operating expenditures Total Finance: Salaries and employee benefits Operating expenditures Capital outlay Total Tax Office: Salaries and employee benefits Operating expenditures Total 166,500 1,225,000 224,800 95,000 717,801 19,000 2,448,101 48,000 Actual 194,454 1,447,529 243,500 93,896 697,003 21,026 2,697,408 65,589 Variance Over/Under 27,954 222,529 18,700 (1,104) (20,798) 2,026 249,307 17,589 2011 172,322 951,295 187,238 102,841 782,534 23,715 2,219,945 73,928
21,025 21,025 44,531,970
43,027 43,027 44,263,881
22,002 22,002 (268,089)
546,399 546,399 41,722,548
85,684 113,600 199,284
95,647 96,437 192,084
7,200
90,678 81,799 172,477
411,701 64,752 476,453
385,110 38,556 423,666
52,787
453,418 29,622 483,040
475,430 118,165 14,110 607,705
421,639 104,663 14,041 540,343
67,362
431,836 80,014 511,850
427,218 112,300 539,518
427,200 87,703 514,903
24,615
415,349 86,953 502,302
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2012 Budget Legal: Salaries and employee benefits Contracted services Operating expenditures Total Mapping: Salaries and employee benefits Operating expenditures Total Tax Assessment: Salaries and employee benefits Operating expenditures Total Board of Elections: Salaries and employee benefits Operating expenditures Total Register of Deeds: Salaries and employee benefits Operating expenditures Total Information Technology: Salaries and employee benefits Operating expenditures Total Garage: Salaries and employee benefits Operating expenditures Total Buildings and Grounds: Salaries and employee benefits Operating expenditures Total 84,000 12,500 96,500 Actual 91,622 91,622 Variance Over/Under 2011 56,998 70,087 8,870 135,955
4,878
149,823 16,930 166,753
154,714 11,024 165,738
1,015
145,615 9,111 154,726
259,601 132,500 392,101
265,286 84,287 349,573 42,528
255,418 73,961 329,379
145,636 58,600 204,236
144,129 43,578 187,707
16,529
138,913 50,946 189,859
174,964 98,893 273,857
173,794 92,384 266,178
7,679
168,948 87,122 256,070
448,323 273,791 722,114
445,980 225,305 671,285
50,829
456,617 203,027 659,644
225,488 63,977 289,465
221,137 62,502 283,639
5,826
219,225 59,265 278,490
1,100,768 767,087 1,867,855
1,090,452 764,258 1,854,710
13,145
1,073,436 721,895 1,795,331
62

2012 Budget Human Resources: Salaries and employee benefits Operating expenditures Total Non-Departmental : Operating expenditures Total General Government Public Safety: Sheriff: Salaries and employee benefits Operating expenditures Capital outlay Total Federal/State Forfeitures: Operating expenditures Capital outlay Total Juvenile Crime Prevention Council Grants Criminal Justice: Salaries and employee benefits Operating expenditures Total Jail / Law Enforcement Center: Salaries and employee benefits Operating expenditures Capital outlay Total Hurricane Recovery Programs: SARF-Homeowners Assistance Total Courthouse Security: Salaries and employee benefits Operating expenditures Total 116,095 22,983 139,078 Actual 115,566 19,971 135,537 Variance Over/Under 2011 95,528 17,504 113,032
3,541
971,892 6,946,811
618,625 6,295,610
353,267 651,201
500,189 6,082,344
2,978,262 660,092 91,670 3,730,024
2,950,439 658,765 91,670 3,700,874
29,150
2,836,658 593,341 3,429,999
27,256 17,091 44,347 136,663
18,722 18,722 136,609
25,625 54
21,512 26,492 48,004 115,486
43,490 15,245 58,735
27,202 5,356 32,558
26,177
42,356 4,076 46,432
1,061,759 591,926 40,753 1,694,438
1,071,028 523,347 37,727 1,632,102
62,336
970,416 593,371 1,563,787
121,203 121,203
78,973 78,973
42,230
7,622 7,622
143,045 3,400 146,445
140,078 2,166 142,244
4,201
125,502 2,562 128,064
63

2012 Budget Community Security Services: Salaries and employee benefits Operating expenditures Total Emergency Medical Service: Salaries and employee benefits Operating expenditures Capital outlay Total Emergency Management: Salaries and employee benefits Operating expenditures Capital outlay Total Inspections: Salaries and employee benefits Operating expenditures Total Emergency 911: Salaries and employee benefits Operating expenditures Total Animal Control: Salaries and employee benefits Operating expenditures Capital outlay Total Forest Service: Operating expenditures Total public safety Transit Services: Salaries and employee benefits Operating expenditures Capital outlay Total 3,469 560 4,029 Actual Variance Over/Under 2011 33,781 436 34,217
4,029
2,178,083 345,994 2,524,077
2,087,952 319,158 2,407,110
116,967
2,107,888 302,894 33,016 2,443,798
927,521 139,798 157,750 1,225,069
890,006 90,094 18,403 998,503
226,566
902,817 85,942 988,759
507,988 59,900 567,888
454,966 42,641 497,607
70,281
517,660 45,110 562,770
103,974 17,900 121,874
103,510 17,543 121,053
821
103,532 7,876 111,408
173,896 71,440 245,336
176,965 66,378 243,343
1,993
168,406 55,770 23,692 247,868
74,115 10,694,243
59,972 10,069,670
14,143 624,573
65,033 9,793,247
408,576 215,507 210,000 834,083
407,865 187,956 119,099 714,920
119,163
380,426 168,911 46,200 595,537
64

2012 Budget Contribution to Macon County Airport Total Transportation Economic and Physical Development: Economic Development: Salaries and employee benefits Operating expenditures Capital outlay Total Occupancy Tax: Operating expenditures Total Cooperative Extension: Salaries and employee benefits Operating expenditures Total Soil Conservation: Salaries and employee benefits Operating expenditures Total Special Appropriations: Angel Medical Center Ladies Night Out Total Total Economic and Physical Development Human Services: Health: Administration: Salaries and employee benefits Operating expenditures Capital outlay Total 113,249 20,372 133,621 113,374 13,714 127,088 110,144 8,290 118,434 40,000 874,083 Actual 40,000 754,920 Variance Over/Under 119,163 2011 39,600 635,137
10,757 74,050 10,000 94,807
10,011 61,214 10,642 81,867
12,940
50,182 17,106 67,288
437,500 437,500
437,274 437,274
226
418,720 418,720
167,436 41,236 208,672
156,938 35,509 192,447
16,225
145,693 25,585 171,278
6,533
6,137 6,137 880,737
6,137 6,137 844,813
35,924
6,434 6,434 782,154
187,616 231,985 11,260 430,861
178,668 187,867 366,535
64,326
388,164 132,590 520,754
65

2012 Budget Management Support: Salaries and employee benefits Operating expenditures Capital outlay Total School Health Nurse: Salaries and employee benefits Operating expenditures Total NC Tobacco Settlement Funds: Salaries and employee benefits Operating expenditures Total WIC: Salaries and employee benefits Operating expenditures Total Maternal and Child Care: Salaries and employee benefits Operating expenditures Total Child Health: Salaries and employee benefits Operating expenditures Total Family Planning: Salaries and employee benefits Operating expenditures Total Dental Health: Salaries and employee benefits Operating expenditures Capital outlay Total 356,692 16,000 61 372,753 Actual 349,385 11,644 361,029 Variance Over/Under 2011 187,331 2,417 189,748
11,724
313,754 14,275 328,029
312,232 11,259 323,491
4,538
301,078 9,583 310,661
53,064 29,173 82,237
30,267 21,212 51,479
30,758
41,319 18,385 59,704
185,397 16,512 201,909
150,585 14,948 165,533
36,376
133,149 8,310 141,459
74,009 42,957 116,966
73,440 29,918 103,358
13,608
116,144 26,447 142,591
30,613 4,714 35,327
18,839 2,981 21,820
13,507
47,687 2,297 49,984
103,723 43,331 147,054
103,705 40,552 144,257
2,797
104,205 45,647 149,852
346,113 44,835 390,948
343,097 39,482 382,579
8,369
322,195 30,583 7,183 359,961
66

2012 Budget Child Dental Health: Salaries and employee benefits Operating expenditures Total Adult Health: Salaries and employee benefits Operating expenditures Total Breast and Cervical Cancer: Salaries and employee benefits Operating expenditures Total Laboratory Services: Salaries and employee benefits Operating expenditures Total Communicable Disease: Salaries and employee benefits Operating expenditures Total H1N1: Operating expenditures Capital outlay Total On-Site Waste Water: Salaries and employee benefits Operating expenditures Capital outlay Total Private Drinking Water Wells: Salaries and employee benefits Operating expenditures Total 236,237 145,172 381,409 Actual 191,399 82,464 273,863 Variance Over/Under 2011 234,408 38,188 272,596
107,546
44,860 5,597 50,457
23,669 1,883 25,552
24,905
57,988 2,627 60,615
76,168 23,268 99,436
76,159 23,243 99,402
34
62,920 14,661 77,581
144,101 66,100 210,201
138,298 53,523 191,821
18,380
124,256 58,389 182,645
30,696 11,906 42,602
28,623 10,702 39,325
3,277
33,393 8,537 41,930
44,642 24,019 68,661
246,794 18,759 265,553
246,032 16,649 262,681
2,872
366,065 24,116 5,150 395,331
215,331 14,118 229,449
207,012 12,411 219,423
10,026
96,101 16,170 112,271
67

2012 Budget Food and Lodging: Salaries and employee benefits Operating expenditures Total Health Promotion: Salaries and employee benefits Operating expenditures Total KBR Healthy Carolinians: Salaries and employee benefits Operating expenditures Total General Nursing: Salaries and employee benefits Operating expenditures Total Child Service Coordination: Salaries and employee benefits Operating expenditures Capital outlay Total Smart Start: Salaries and employee benefits Operating expenditures Total TRU Sustainability Project: Operating expenditures Total NC Community Transformation Grant: Operating expenditures Total 200,921 15,653 216,574 Actual 199,296 14,881 214,177 Variance Over/Under 2011 180,699 15,152 195,851
2,397
235,238 40,971 276,209
184,045 28,446 212,491
63,718
137,860 16,790 154,650
95,046 21,703 116,749
171,779 95,913 267,692
170,646 82,687 253,333
14,359
97,353 76,187 173,540
61,918 7,937 26,000 95,855
50,628 4,849 23,284 78,761
17,094
43,063 2,275 45,338
36,742 1,622 38,364
6,974
32,567 5,890 38,457
12,647 12,647
12,464 12,464
183
183,920 183,920
27,730 27,730
156,190
68

2012 Budget OB Care Management Program: Salaries and employee benefits Operating expenditures Capital outlay Total Total Health Social Services: Administration: Salaries and employee benefits Operating expenditures Capital outlay Total Social Work Services/Special Programs: Salaries and employee benefits Operating expenditures Total Child Daycare: Salaries and employee benefits Child Support: Salaries and employee benefits Operating expenditures Total Medicaid: County participation only Workfirst: Salaries and employee benefits Operating expenditures Total CAP-DA: Salaries and employee benefits Total DSS AMC Outpost Worker: Salaries and employee benefits 60,695 2,240 26,000 88,935 4,572,361 Actual 58,684 286 23,284 82,254 3,951,722 Variance Over/Under 2011 3,815,591
6,681 620,639
310,652 381,000 63,523 755,175
307,963 260,812 63,500 632,275
122,900
282,356 248,165 530,521
554,060 1,456,822 2,010,882
535,358 866,537 1,401,895
608,987
555,648 901,719 1,457,367
38,979
38,955
24
34,909
113,039 80,508 193,547
90,919 75,423 166,342
27,205
110,611 34,505 145,116
1,636,102
1,399,945
236,157
30,769
136,819 136,819
125,174 125,174
11,645
27,044 56,113 83,157
106,254 106,254
104,302 104,302
1,952
109,081 109,081
39,880
39,880
35,910
69

2012 Budget Medicaid/FS Administration: Salaries and employee benefits Total Total Social Services Department On Aging: Administration: Salaries and employee benefits Operating expenditures Total Home Delivered Meals: Salaries and employee benefits Operating expenditures Total Program Quality Improvements: Operating expenditures Total Congregate Meals: Salaries and employee benefits Operating expenditures Total Adult Daycare: Salaries and employee benefits Operating expenditures Total Total Department on Aging Miscellaneous Human Services: Veterans Service: Salaries and employee benefits Operating expenditures Total 871,431 871,431 5,789,069 Actual 801,066 801,066 4,709,834 Variance Over/Under 2011 833,356 833,356 3,260,186
70,365 1,079,235
222,148 74,268 296,416
221,575 42,152 263,727
32,689
215,317 37,920 253,237
41,552 96,400 137,952
31,807 89,484 121,291
16,661
40,455 84,889 125,344
5,874 5,874
32,172 52,600 84,772
23,751 48,880 72,631
12,141
30,909 53,010 83,919
115,330 85,968 201,298 720,438
115,596 65,509 181,105 638,754
20,193 81,684
112,344 59,532 171,876 640,250
96,275 7,475 103,750
79,855 5,898 85,753
17,997
96,035 4,717 100,752
70

2012 Budget Contributions to Organizations: Smoky Mountain Mental Health Macon County Citizens for Handicapped Macon Program for Progress Total Special Appropriations: Highlands Community Development Kids Place State of Franklin REACH National Alliance on Mental Ill Webster Enterprises WNC Regional Livestock Center Other special appropriations Total Total miscellaneous human services Total Human Services Cultural and Recreational: Salaries and employee benefits Operating expenditures Capital outlay Total Library and Cultural: Macon County Library Macon County Historical Society Total Total Cultural and Recreational Education: Public schools - current expenditures Public schools - capital outlay Timber sales pass-through Southwestern Community College Total Education Total Expenditures 106,623 62,370 6,599 175,592 Actual 106,623 62,370 6,599 175,592 Variance Over/Under 2011 106,623 62,370 6,603 175,596
6,901 10,000 15,000 10,000 10,000 70,253 126,490 405,832 11,487,700
6,901 10,000 15,000 10,000 10,000 31,843 88,080 349,425 9,649,735
38,410 56,407 1,837,965
6,654 9,900 14,850 9,900 669 10,000 5,000 5,332 62,305 338,653 8,054,680
341,617 708,475 24,990 1,075,082
338,011 683,319 24,886 1,046,216
28,866
317,227 667,305 34,007 1,018,539
951,390 23,469 974,859 2,049,941
951,390 23,469 974,859 2,021,075
28,866
1,045,708 4,009 1,049,717 2,068,256
7,252,393 250,000 178,287 426,753 8,107,433 41,040,948
7,252,298 227,120 178,286 426,753 8,084,457 37,720,280 22,976 3,320,668
7,232,103 202,203 444,253 7,878,559 35,294,377
71

2012 Budget 3,491,022 Actual 6,543,601 Variance Over/Under 3,052,579 2011 6,428,171
Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in: From Emergency Telephone System Fund From Clean Water Management Trust Fund From SCC Campus/Library Projects Fund Total Transfers Out: To Airport Fund To Consolidated Capital Project Fund To Community Development Block Grant Fund To Debt Service To County Buildings Project Total Appropriated fund balance Total Other Financing Sources (Uses) Net change in fund balance Fund Balance: Beginning of year, July 1 End of year, June 30 $
32,579 238,058 270,637
80,480 32,594 238,051 351,125
80,480 15 (7) 80,488
(291,748) (71,000) (4,136,101) (250,000) (4,748,849) 987,190 (3,491,022) -
(275,082) (71,000) (4,136,101) (250,000) (4,732,183) (4,381,058) 2,162,543 $
16,666 16,666 (987,190) (890,036) 2,162,543
(313,000) (380,135) (75,814) (4,108,091) (4,877,040) (4,877,040) 1,551,131
19,204,015 $ 21,366,558 $
17,652,884 19,204,015
72
NONMAJOR GOVERNMENTAL FUNDS
Schedule C-1

NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2012
Nonmajor Special Revenue Funds Assets: Cash and investments Taxes receivable, net Accounts receivable, net Due from other governmental agencies Total assets Liabilities and Fund Balances: Liabilities: Accounts payable and accrued liabilities Due to other funds Deferred revenues Total liabilities Fund Balances: Restricted: Stabilization by State statute Restricted, all others Committed Unassigned Total fund balances Total liabilities and fund balances $ $ 325,310 144,016 136,837 30,090 636,253 $
Nonmajor Capital Project Funds 2,135,232 420,010 306,668 2,861,910 $
Total 2,460,542 144,016 556,847 336,758 3,498,163
145,493 39,491 144,012 328,996
276,743 201,550 478,293
422,236 241,041 144,012 807,289
166,927 207,892 (67,562) 307,257 636,253 $
726,678 252,562 1,663,942 (259,565) 2,383,617 2,861,910 $
893,605 460,454 1,663,942 (327,127) 2,690,874 3,498,163
73
Schedule C-2

NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012
Nonmajor Special Revenue Funds Revenues: Ad valorem taxes Local option sales taxes Restricted intergovernmental revenues Miscellaneous revenues Interest earned on investments Total revenues Expenditures: Current: General government Public safety Economic and physical development Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Installment notes issued Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund Balances: Beginning of year - July 1 End of year - June 30 $ $ 2,709,230 $ 879,446 299 3,588,975
Nonmajor Capital Project Funds - $ 1,514,031 715,833 148,532 1,236 2,379,632
Total 2,709,230 1,514,031 1,595,279 148,532 1,535 5,968,607
3,637,436 534,730 4,172,166 (583,191)
153,503 1,624,685 1,778,188 601,444
153,503 3,637,436 2,159,415 5,950,354 18,253
328,242 (113,074) 215,168 (368,023)
728,296 525,082 (1,935,220) (681,842) (80,398)
728,296 853,324 (2,048,294) (466,674) (448,421)
675,280 307,257 $
2,464,015 2,383,617 $
3,139,295 2,690,874
74
SPECIAL REVENUE FUNDS

Special Revenue Funds account for the proceeds of special revenue sources that are legally restricted to expenditure for specific purposes. Individual Fund Descriptions: Emergency Telephone System Fund - accounts for the accumulation of funds used to operate the 911 emergency service operations. Fire Districts Fund - accounts for the ad valorem tax levies of the eleven fire districts in Macon County. Clean Water Management Trust Fund - accounts for monies received and expensed relating to N.C. Clean Water Management Trust Funds. Housing Grants Fund - accounts for federal grants received and expended for community development.
Schedule D-1

NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2012
Emergency Telephone System Fund Assets: Cash and cash equivalents Taxes receivable, net Accounts receivable, net Due from government agencies Total assets Liabilities and Fund Balances: Liabilities: Accounts payable and accrued liabilities $ Due to other funds Deferred revenues Total liabilities Fund Balances: Restricted: Stabilization by State statute Restricted, all others Unassigned Total fund balances Total liabilities and fund balances $ $ 307,806 30,090 337,896 $
Fire Districts Fund 17,504 144,016 161,520
Clean Water Management Trust Fund $ $
Housing Grants Fund 136,837 136,837 $
Total 325,310 144,016 136,837 30,090 636,253
99,914 99,914
17,508 144,012 161,520
28,071 39,491 67,562
145,493 39,491 144,012 328,996
30,090 207,892 237,982 337,896 $
161,520 $
136,837 (67,562) 69,275 136,837 $
166,927 207,892 (67,562) 307,257 636,253
75
Schedule D-2

NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012
Emergency Telephone System Fund Revenues: Ad valorem taxes Restricted intergovernmental revenues Investment earnings Total revenues Expenditures: Public safety Economic and physical development Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in: From General Fund Transfers out: To General Fund To County Building Projects Fund Total other financing sources (uses) Net change in find balances Fund Balances: Beginning of year, July 1 End of year, June 30 $ $ 361,082 299 361,381 $
Fire Districts Fund 2,709,230 2,709,230
Clean Water Management Trust Fund $ $
Housing Grants Fund 518,364 518,364 $
Total 2,709,230 879,446 299 3,588,975
928,206 928,206 (566,825)
2,709,230 2,709,230 -
534,730 534,730 (16,366)
3,637,436 534,730 4,172,166 (583,191)
257,242 (80,480) 176,762 (390,063)
(32,594) (32,594) (32,594)
71,000 71,000 54,634
328,242 (32,594) (80,480) 215,168 (368,023)
628,045 237,982 $
32,594 $
14,641 69,275 $
675,280 307,257
76
Schedule D-3

EMERGENCY TELEPHONE SYSTEM FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
2012 Budget Revenues: Restricted intergovernmental revenues Investment earnings Total revenues Expenditures: Wireless 911: Operating expenditures Implemental functions Telephone Furniture Software & software maintenance Hardware & hardware maintenance Training Capital outlay Total wireless 911 Public Safety Needs: S.L. 2010-158 expenditures (50%) Operating expenditures Total public safety needs Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Appropriated fund balance Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund Balance: Beginning of year, July 1 End of year, June 30 $ $ $ 361,082 361,082 $ Actual 361,082 299 361,381 Variance Over/Under $ 299 299 $
2011 Actual 435,871 821 436,692
90,000 120,000 34,000 184,000 18,500 5,000 362,227 813,727
74,743 88,834 33,445 183,705 18,478 299,343 698,548
15,257 31,166 555 295 22 5,000 62,884 115,179
116,631 116,631
232,505 232,505 1,046,232 (685,150)
229,658 229,658 928,206 (566,825)
2,847 2,847 118,026 118,325
24,737 24,737 141,368 295,324
508,388 257,242 (80,480) 685,150 -
257,242 (80,480) 176,762 (390,063) $
(508,388) (508,388) (390,063)
(326,095) (326,095) (30,771)
628,045 237,982 $
658,816 628,045
77
Schedule D-4

FIRE DISTRICTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
2012 Budget Revenues: Ad valorem taxes - Fire: Current year Prior years Total revenues Expenditures: Public Safety: Franklin Fire District Clark's Chapel Fire District Otto Fire District Cullasaja Fire District West Macon Fire District Scaly Mountain Fire District Burningtown / Iotla Fire District Cowee Fire District Highlands Fire District Mountain Valley Fire District Nantahala Fire District Total expenditures Net change in fund balance Fund Balance: Beginning of year - July 1 End of year - June 30 $ $ Actual Variance Over/Under
2011 Actual
2,661,234 86,075 2,747,309
2,597,456 111,774 2,709,230
(63,778) $ 25,699 (38,079)
2,596,228 91,999 2,688,227
2,747,309 -
492,611 204,571 255,174 236,239 287,312 115,864 156,043 274,142 358,470 122,550 206,254 2,709,230 $
38,079 -
479,668 210,874 243,498 245,822 285,670 126,352 162,607 266,778 352,958 124,842 189,158 2,688,227 -
78
Schedule D-5

CLEAN WATER MANAGEMENT TRUST FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: Restricted intergovernmental revenues: Community Development Block Grant Total revenues Expenditures: Economic and physical development: Salaries and benefits Grant expenditures - all other Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Appropriated fund balance Transfer to General Fund Contingency Total other financing sources (uses) Net change in fund balance $ Prior Years Current Year Total to Date
721,000 721,000
543,127 543,127
- $ -
543,127 543,127
182,297 499,019 681,316 39,684
181,861 328,672 510,533 32,594
181,861 328,672 510,533 32,594
32,579 (32,579) (39,684) (39,684) - $
32,594 $
(32,594) (32,594) (32,594) $
(32,594) (32,594) -
79
Schedule D-6

HOUSING GRANTS FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: Restricted intergovernmental revenues: Community Development Block Grant #07-C-1662 Weatherization # 1161 Urgent Repair 1014 ARRA Weatherization 18WA Community Development Block Grant #10-C-2124 Weatherization # 1261 SFR 11 Urgent Repair 1115 Miscellaneous revenues Total revenues Expenditures: Economic and physical development: Administrative - County Community Development Block Grant: Grant #07-C-1662 Administrative Grant #07-C-1662 Rehabilitation Weatherization # 1161 Urgent Repair 1014 ARRA Weatherization 18WA Grant #10-C-2124 Administrative Grant #10-C-2124 Rehabilitation SFR-11 Grant Weatherization # 1261 Urgent Repair Grant 1115 Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in: From General Fund Net change in fund balance $ Prior Years Current Year Total to Date
400,000 47,867 75,000 594,444 400,000 235,990 160,000 75,000 11,222 1,999,523
353,250 47,122 75,000 299,561 11,469 786,402
124,821 132,953 181,887 3,703 75,000 518,364
353,250 47,122 75,000 424,382 132,953 181,887 3,703 75,000 11,469 1,304,766
410,895 40,000 360,000 47,867 75,000 594,444 40,000 360,000 160,000 235,990 75,000 2,399,196 (399,673)
318,562 40,965 313,058 47,124 74,009 306,216 5,497 1,105,431 (319,029)
59,752 989 119,018 15,756 111,700 3,704 181,802 42,009 534,730 (16,366)
378,314 40,965 313,058 47,124 74,998 425,234 21,253 111,700 3,704 181,802 42,009 1,640,161 (335,395)
399,673 $
333,670 14,641 $
71,000 54,634 $
404,670 69,275
80
CAPITAL PROJECT FUNDS

Capital Project Funds are used to account for the acquisition or construction of major capital facilities other than those financed by the proprietary funds and trust funds. Individual Fund Descriptions: Major Funds: Consolidated Capital Projects - accounts for projects related to education facilities. Nonmajor Funds: Airport Improvements Fund - accounts for the construction costs of various airport improvements. County Buildings Project - accounts for the development and construction costs of County buildings. SCC Campus/Library Project - accounts for the costs of construction and improvements relating to facilities at Southwestern Community College. Riverbend Estates Waterline Project - accounts for the costs and construction of sewer lines in Riverbend Estates. Little Tennessee River/Cartoogechaye Creek Sewer Trunk Project - accounts for the construction costs of replacing sewer lines along the Little Tennessee River and the Cartoogechaye River. Schools Capital Fund - accounts for the accumulation of dedicated local option sales tax used for school debt service and future school capital projects. Capital Reserve Fund - accounts for the accumulation of undedicated resources to fund future projects of the County.
Schedule E-1

CONSOLIDATED CAPITAL PROJECTS - MAJOR SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: Investment earnings NC Department of Transportation Miscellaneous revenues Total revenues Expenditures: Mountain View Intermediate/ 5-6 Grades East Franklin Elementary School Sanders Property Iotla Valley K-5 Issuance Costs East Franklin Elementary School/QZAB Senior Services Southwestern Community Early College Nantahala Renovations/QZAB Franklin High School Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Debt issued Transfer from the General Fund Total other financing sources (uses) Net change in fund balance $ $ 85,461 $ 7,312 92,773 Prior Years 184,583 50,000 176,996 411,579 $ Current Year 8,129 $ 164,092 172,221 Closed Project - $ Total to Date 192,712 50,000 341,088 583,800
14,696,743 30,000 2,000,000 1,725 922,108 1,800,000 19,450,576 (19,357,803)
16,495,323 3,164,540 2,589,817 4,591,935 20,046 1,995,000 878,899 1,749,731 1,329,675 32,814,966 (32,403,387)
8,225,148 8,225,148 (8,052,927)
(16,495,323) (3,164,540) (2,589,817) (1,329,675) (23,579,355) 23,579,355
12,817,083 20,046 1,995,000 878,899 1,749,731 17,460,759 (16,876,959)
17,039,987 2,317,816 19,357,803
39,289,667 3,753,010 43,042,677 $
(8,052,927) $
(22,249,680) (1,329,675) (23,579,355) - $
17,039,987 2,423,335 19,463,322 2,586,363
- $ 10,639,290
81

NONMAJOR CAPITAL PROJECTS FUND COMBINING BALANCE SHEET JUNE 30, 2012
Airport Improvements Assets: Cash and cash equivalents Accounts receivable, net Due from governmental agencies Total assets Liabilities and Fund Balances: Liabilities: Accounts payable and accrued liabilities Due to other funds Total liabilities Fund Balances: Restricted: Stabilization by State statute Restricted, all others Committed Unassigned Total fund balances Total liabilities and fund balances $ $ 252,758 144,567 397,325 $
County Buildings Project 436,593 436,593 $
SCC Campus/ Library Project $
Riverbend Estates Waterline Project 26,073 26,073
26,269 26,269
3,645 3,645
144,567 226,489 371,056 397,325 $
432,948 432,948 436,593 $
26,073 26,073 26,073
82
Schedule E-2
Little Tennessee River/ Cartoogechaye Creek Sewer Trunk Project $ 188,814 275,443 464,257 $
Schools Capital Fund 306,668 306,668 $
Capital Reserve Fund 1,230,994 1,230,994 $
Total 2,135,232 420,010 306,668 2,861,910
246,829 246,829
201,550 201,550
276,743 201,550 478,293
275,443 (58,015) 217,428 $ 464,257 $
306,668 (201,550) 105,118 306,668 $
1,230,994 1,230,994 1,230,994 $
726,678 252,562 1,663,942 (259,565) 2,383,617 2,861,910
83

NONMAJOR CAPITAL PROJECTS FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012
Airport Improvements Revenues: Restricted intergovernmental revenues Local option sales tax Miscellaneous revenues Investment earnings Total revenues Expenditures: General government Economic and physical development Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Debt issued Transfers in: From Emergency Telephone System Fund From General Fund Transfers out: To Debt Service To Emergency Telephone System Fund To General Fund Total other financing sources (uses) Net change in fund balances Fund Balances: Beginning of year, July 1 End of year, June 30 $ $ 582,152 $ 15,367 597,519
County Buildings Project - $ 471 471
SCC Campus/ Library Project - $ 15 15
Riverbend Estates Waterline Project 118,753 45,173 163,926
676,674 676,674 (79,155)
153,503 153,503 (153,032)
15
170,509 170,509 (6,583)
275,082 275,082 195,927
250,000 (257,242) (7,242) (160,274)
(238,051) (238,051) (238,036)
(6,583)
175,129 371,056 $
593,222 432,948 $
238,036 - $
32,656 26,073
84
Schedule E-3
Little Tennessee River/ Cartoogechaye Creek Sewer Trunk Project $ 14,928 $ 87,521 102,449
Schools Capital Fund - $ 1,514,031 522 1,514,553
Capital Reserve Fund - $ 699 699
Total 715,833 1,514,031 148,532 1,236 2,379,632
777,502 777,502 (675,053)
1,514,553
699
153,503 1,624,685 1,778,188 601,444
728,296 728,296 53,243
(1,439,927) (1,439,927) 74,626
699
728,296 275,082 250,000 (1,439,927) (257,242) (238,051) (681,842) (80,398)
164,185 $ 217,428 $
30,492 105,118 $
1,230,295 1,230,994 $
2,464,015 2,383,617
85
Schedule E-4

AIRPORT IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: Restricted intergovernmental revenues: State aid to airports Miscellaneous revenues Total revenues Expenditures: Capital outlay: Runway expansion Runway extension phase II - site improvements Phase I EA - runway extension 2004 Vision 100 2007 Vision 100 Runway improvements 2008 Vision 100 SWPPP/SPCC & AWOS Apron improvements Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in from General Fund Appropriated fund balance Total other financing sources (uses) Net change in fund balance $ Prior Years Current Year Closed Project Total to Date
6,957,467 6,957,467
4,864,752 4,864,752
582,152 15,367 597,519
(1,837,200) $ (1,837,200)
3,609,704 15,367 3,625,071
3,147,244 1,000,000 166,667 792,000 166,667 131,602 2,326,340 7,730,520 (773,053)
1,874,664 2,068,503 369,694 152,571 166,666 635,301 5,267,399 (402,647)
490,062 25,982 160,630 676,674 (79,155)
(1,874,664) (166,666) (2,041,330) 204,130
2,558,565 369,694 152,571 635,301 25,982 160,630 3,902,743 (277,672)
711,886 61,167 773,053 $
577,776 577,776 175,129 $
275,082 275,082 195,927 $
(204,130) (204,130) $
648,728 648,728 371,056
86
Schedule E-5

COUNTY BUILDING PROJECTS SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: Miscellaneous Expenditures: General government: Animal shelter Old library renovations Renovations - Barrett Building Renovations - Old Senior Services Building Renovations - Patton Avenue Building Garage construction Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in: From General Fund From Emergency Telephone System Fund Transfers out: To Emergency Telephone System Fund Total other financing sources (uses) Net change in fund balance $ $ $ Prior Years 7,772 $ Current Year 471 $ Total to Date 8,243
500,000 300,000 508,303 118,550 150,000 120,000 1,696,853 (1,696,853)
498,905 299,928 103,771 99,204 116,837 1,118,645 (1,110,873)
81,152 19,327 50,781 2,243 153,503 (153,032)
498,905 299,928 184,923 118,531 50,781 119,080 1,272,148 (1,263,905)
1,628,000 326,095 (257,242) 1,696,853 $
1,378,000 326,095 1,704,095 593,222 $
250,000 (257,242) (7,242) (160,274) $
1,628,000 326,095 (257,242) 1,696,853 432,948
87
Schedule E-6

SCC CAMPUS/LIBRARY PROJECT SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: Investment earnings Miscellaneous revenues Total revenues Expenditures: Architect fees Issuance costs Construction Contribution to SCC Non-capital equipment Pump station Contingency Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Debt issued Appropriated fund balance Transfer from the General Fund Transfer to the General Fund Total other financing sources (uses) Net change in fund balance $ $ 43,223 198,654 241,877 $ Prior Years 258,696 207,767 466,463 $ Current Year 15 $ 15 Total to Date 258,711 207,767 466,478
263,134 11,876 4,337,430 2,903,343 67,000 375,135 32,224 7,990,142 (7,748,265)
262,208 11,297 4,334,683 2,903,508 64,687 298,819 7,875,202 (7,408,739)
15
262,208 11,297 4,334,683 2,903,508 64,687 298,819 7,875,202 (7,408,724)
5,000,000 238,058 2,748,265 (238,058) 7,748,265 - $
5,000,000 2,646,775 7,646,775 238,036 $
(238,051) (238,051) (238,036) $
5,000,000 2,646,775 (238,051) 7,408,724 -
88
Schedule E-7

RIVERBEND ESTATES WATERLINE PROJECT SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: DENR DWSRF grant Miscellaneous revenue Total revenues Expenditures: Sewer project expense: Administration Engineering Construction Contingency Total expenditures Net change in fund balance $ $ 2,618,518 $ 2,618,518 Prior Years 1,623,511 52,406 1,675,917 $ Current Year 118,753 45,173 163,926 $ Total to Date 1,742,264 97,579 1,839,843
71,800 250,000 1,700,000 596,718 2,618,518 - $
15,000 195,250 1,433,011 1,643,261 32,656 $
16,250 154,259 170,509 (6,583) $
15,000 211,500 1,587,270 1,813,770 26,073
89
Schedule E-8

LITTLE TENNESSEE RIVER/CARTOOGECHAYE CREEK SEWER TRUNK PROJECT SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2012
Actual Project Authorization Revenues: NC High Unit Cost Grant NC Rural Center Grant Town of Franklin Contribution Investment earnings Miscellaneous revenue Total revenues Expenditures: Sewer project expense: Legal fees Issuance cost Engineering Surveying General contract Land Contingency Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Debt issued Transfer from General Fund Transfer to General Fund Total other financing sources (uses) Net change in fund balance $ $ 3,000,000 $ 750,000 16,970 3,766,970 Prior Years 3,000,000 $ 16,970 87 3,017,057 Current Year - $ 14,928 87,521 102,449 Total to Date 3,000,000 14,928 16,970 87 87,521 3,119,506
28,888 11,986 742,305 4,725,001 211,018 131,878 5,851,076 (2,084,106)
15,241 11,986 722,804 6,445 3,719,296 208,636 4,684,408 (1,667,351)
2,925 774,577 777,502 (675,053)
15,241 11,986 725,729 6,445 4,493,873 208,636 5,461,910 (2,342,404)
2,043,250 516,582 (475,726) 2,084,106 - $
1,314,954 516,582 1,831,536 164,185 $
728,296 728,296 53,243 $
2,043,250 516,582 2,559,832 217,428
90
Schedule E-9

SCHOOLS CAPITAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
2012 Budget Revenues: Interest Local option sales tax Total revenues Other Financing Sources (Uses): Transfers out: To Debt Service Fund Net change in fund balance Fund Balance: Beginning of year, July 1 End of year, June 30 $ $ $ 1,435,000 1,435,000 $ Actual 522 1,514,031 1,514,553 $ Variance Over/Under 522 79,031 79,553 $
2011 Actual 549 1,327,805 1,328,354
(1,435,000) -
(1,439,927) 74,626 $
(4,927) 74,626
(1,705,000) (376,646)
30,492 105,118 $
407,138 30,492
91
Schedule E-10

CAPITAL RESERVE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
2012 Budget Revenues: Interest Net change in fund balance Fund Balance: Beginning of year, July 1 End of year, June 30 $ $ $ $ Actual 699 699 Variance Over/Under $ $ 699 699 $
2011 Actual 1,496 1,496
1,230,295 1,230,994 $
1,228,799 1,230,295
92
ENTERPRISE FUND
The Enterprise Fund is used to account for solid waste collection and disposal operations in Macon County that are financed through solid waste fees and operating transfers from the General Fund.

SOLID WASTE FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (NON-GAAP) FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
Schedule F-1 Page 1 of 2
2012 Budget Revenues: Operating revenues: Landfill fees Tipping fees Recycling revenue Other operating revenue Scrap tire disposal fee Solid waste disposal fees Restricted intergovernmental revenue Total operating revenues Non-operating revenues: Solid waste disposal tax Investment earnings Total non-operating revenues Total revenues Expenditures: Operating expenditures: Salaries Employee benefits Operating expenditures Interest and fees Debt principal Post closure costs Capital outlay Solid waste disposal tax remittance Total Scale capital project expenditures: Engineering fees Capital improvements Total Actual Variance Over/Under
2011 Actual
1,850,000 1,056,000 322,000 1,700 25,000 13,886 53,000 3,321,586
1,826,775 1,141,800 357,652 2,823 41,703 11,544 52,149 3,434,446
112,860
1,867,332 1,240,040 366,230 14,281 40,815 20,800 80,256 3,629,754
16,000 16,000 3,337,586
23,903 13,013 36,916 3,471,362
20,916 133,776
24,593 18,830 43,423 3,673,177
984,361 298,346 1,158,970 20,010 400,000 454,702 129,850 69,900 3,516,139
939,460 276,487 973,599 21,747 500,000 36,068 118,006 58,276 2,923,643
912,516 274,083 964,769 33,726 400,000 32,653 23,752 59,266 2,700,765
21,705 88,465 110,170
23,052 127 23,179
5,251 228,617 233,868
93

SOLID WASTE FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (NON-GAAP) FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
Schedule F-1 Page 2 of 2
2012 Budget Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Appropriated fund balance Total other financing sources (uses) Revenues and other financing sources over (under) expenditures and other financing uses 3,626,309 (288,723) Actual 2,946,822 524,540 Variance Over/Under 679,487 813,263
2011 Actual 2,934,633 738,544
288,723 288,723
(288,723) (288,723)
524,540
524,540
738,544
Reconciliation from Budgetary Basis (Modified Accrual) to Full Accrual: Revenues and other financing sources over (under) expenditures and other financing uses Reconciling items: Payment of debt principal Capital outlay Post-closure care costs Other post employment benefits (Increase) decrease in accrued vacation pay Depreciation Change in net assets - Exhibit H
524,540 500,000 141,185 (51,000) (117,405) (483) (406,055)
590,782
94
INTERNAL SERVICE FUND

Internal Service Funds are used to account for the County's activities which are similar to those often found in the private sector. The measurement focus is on the flow of economic resources. Individual Fund Description: Self-Insurance Fund - accounts for the financing of health insurance coverage for all County employees.
Schedule G-1

NONMAJOR SELF-INSURANCE FUND BALANCE SHEET JUNE 30, 2012 AND 2011
2012 Assets: Current assets: Cash and cash equivalents Liabilities: Current liabilities: Accounts payable and accrued liabilities Net Assets: Unrestricted net assets
2011
3,984,551
4,881,097
283,123
385,940
3,701,428
4,495,157
95
Schedule G-2

NONMAJOR SELF-INSURANCE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - FINANCIAL PLAN AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011
2012 Financial Plan Operating Revenues: Charges for services: Employee and employer contributions Operating Expenses: Insurance premiums Benefit payments Total operating expenses Operating income (loss) Non-Operating Revenues: Investment earnings Other Financing Sources (Uses): Appropriated fund balance Change in net assets Net Assets: Beginning of year, July 1 End of year, June 30 $ $ Actual Variance Over/Under
2011 Actual
3,225,000
3,224,310
(690) $
3,265,204
445,250 4,200,000 4,645,250 (1,420,250)
445,172 3,575,512 4,020,684 (796,374)
78 624,488 624,566 623,876
392,811 3,848,287 4,241,098 (975,894)
2,700
2,645
(55)
6,951
1,417,550 -
(793,729) $
(1,417,550) (793,729)
(968,943)
4,495,157 3,701,428 $
5,464,100 4,495,157
96
Schedule G-3

NONMAJOR SELF-INSURANCE FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2011
2012 Cash Flows from Operating Activities: Cash received from customers Cash paid for goods and services Net cash provided (used) by operating activities Cash Flows from Investing Activities: Interest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents: Beginning of year - July 1 End of year - June 30 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Change in assets and liabilities: Increase (decrease) in accounts payable and accrued liabilities Net cash provided (used) by operating activities $ $ 3,224,310 $ (4,123,501) (899,191)
2011 3,265,204 (4,154,656) (889,452)
2,645 (896,546)
6,951 (882,501)
4,881,097 3,984,551 $
5,763,598 4,881,097
(796,374) $
(975,894)
(102,817) $ (899,191) $
86,442 (889,452)
97
AGENCY FUNDS
Agency Funds are used to account for assets held by the County as an agent for individuals, private organizations, other governments and/or other funds. Individual Fund Descriptions: Social Services Fund and Inmate Trust Fund - account for assets held by the County as agent for individuals served by these departments. Fines and Forfeitures Fund - accounts for fines and forfeitures collected by the County that are required to be remitted to the Macon County Board of Education. Motor Vehicle Tax Fund - accounts for the proceeds of the motor vehicle taxes that are collected by the County on behalf of the municipalities within the County. Deed of Trust Fund - accounts for the $6.20 of each fee collected by the register of deeds for registering or filing a deed of trust mortgage that the County is required to remit to the State Treasurer on a monthly basis. Western Carolina Industrial Partners Fund - accounts for monies held by the County as agent for advertising and promotions for Western North Carolina industries. Hurricane Ivan Relief Fund - accounts for assets held by the County as agent for individuals who were affected by Hurricane Ivan. 3% Interest Payable to State - accounts for interest on delinquent motor vehicle taxes that are required by law to be remitted to the State of North Carolina.

AGENCY FUNDS COMBINING BALANCE SHEET JUNE 30, 2012
Social Services Trust Fund Assets: Cash and cash equivalents Accounts receivable Total assets Liabilities: Miscellaneous liabilities Intergovernmental payable Total liabilities $
Inmate Trust Fund 7,706 $ 7,706 $
Fines and Forfeitures Fund 7,313 15,817 23,130 $
Motor Vehicle Tax Fund 9,316 9,316
35,857 $ 35,857 $
35,857 $ 35,857 $
7,706 $ 7,706 $
7,313 15,817 23,130
9,316 9,316
98
Schedule H-1
Deed of Trust Fund $ 560 $ 560 $
Western Carolina Industrial Partners Fund 17,113 $ 17,113 $
Hurricane Ivan Relief Fund 39,454 $ 39,454 $
3% Interest Payable to State 464 $ 464 $
Total 117,783 15,817 133,600
- $ 560 560 $
17,113 $ 17,113 $
39,454 $ 39,454 $
- $ 464 464 $
107,443 26,157 133,600
99

AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2012
Schedule H-2 Page 1 of 2
Balance July 1, 2011 Social Services Trust Fund: Assets: Cash and cash equivalents Liabilities: Miscellaneous liabilities Inmate Trust Fund: Assets: Cash and cash equivalents Liabilities: Miscellaneous liabilities Fines and Forfeitures Fund: Assets: Cash and cash equivalents Accounts receivable Total assets Liabilities: Miscellaneous liabilities Intergovernmental payable Total liabilities Motor Vehicle Tax Fund: Assets: Cash and accounts receivable Liabilities: Intergovernmental payable Deed of Trust Fund: Assets: Cash and cash equivalents Liabilities: Intergovernmental payable
Additions
Deductions
Balance June 30, 2012
22,139
164,372
150,654
35,857
22,139
168,461
154,743
35,857
10,591
52,756
55,641
7,706
10,591
52,756
55,641
7,706
$ $
6,033 16,677 22,710
$ $
236,286 236,286
$ $
235,006 860 235,866
$ $
7,313 15,817 23,130
$ $
6,032 16,678 22,710
$ $
1,281 218,327 219,608
$ $
219,188 219,188
$ $
7,313 15,817 23,130
54
2,506,716
2,497,454
9,316
54
2,469,298
2,460,036
9,316
530
6,510
6,480
560
530
6,510
6,480
560
100

AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2012
Schedule H-2 Page 2 of 2
Balance July 1, 2011 Western Carolina Industrial Partners Fund: Assets: Cash and cash equivalents Liabilities: Miscellaneous liabilities Hurricane Ivan Relief Fund: Assets: Cash and cash equivalents Liabilities: Miscellaneous liabilities 3% Interest Payable to State: Assets: Cash and cash equivalents Liabilities: Intergovernmental payable Totals - All Agency Funds: Assets: Cash and cash equivalents Accounts receivable Total assets Liabilities: Miscellaneous liabilities Intergovernmental payable Total liabilities
Additions
Deductions
Balance June 30, 2012
17,113
17,113
17,113
17,113
39,454
39,454
39,454
39,454
406
6,608
6,550
464
406
6,608
6,550
464
96,320 16,677 112,997
2,973,248 2,973,248
2,951,785 860 2,952,645
117,783 15,817 133,600
95,329 17,668 112,997
222,498 2,700,743 2,923,241
210,384 2,692,254 2,902,638
107,443 26,157 133,600
101
DEBT SERVICE FUND

The Debt Service Fund is used to account for all expenditures for principal and interest for all long-term debt payments. The other governmental fund types provide the resources to the Debt Service Fund to make the payments through transfers.
Schedule I-1

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2012
Final Budget Revenues: NC Lottery funds Federal subsidy rebate Town of Franklin Interest earned Total revenues Expenditures: Debt service: Principal repayments Interest Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Net change in fund balance Fund Balance: Beginning of year - July 1 End of year - June 30 $ $ $ 423,385 $ 708,347 53,521 1,185,253
Actual 423,385 707,999 53,521 566 1,185,471
Variance from Final Budget Over/Under $ (348) (566) (914)
4,637,637 2,118,717 6,756,354 (5,571,101)
4,637,634 2,118,296 6,755,930 (5,570,459)
3 421 424 642
5,571,101 -
5,576,028 5,569 $
4,927 5,569
1,014,726 1,020,295
102
ADDITIONAL FINANCIAL DATA

This section contains additional information on taxes receivable and the tax levy as of June 30, 2012.
Schedule J-1

SCHEDULE OF AD VALOREM TAXES RECEIVABLE - GENERAL FUND JUNE 30, 2012
Year Ended June 30 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 Total $
Uncollected Balance July 1, 2011 - $ 841,163 339,171 186,606 104,643 78,616 68,534 50,839 43,067 21,185 17,178 1,751,002 $
Additions 25,926,987 $ 25,926,987 $
Collections and Credits 24,987,407 471,455 140,289 64,322 23,984 13,002 10,589 4,578 2,898 1,446 17,178 25,737,148 $
Uncollected Balance June 30, 2012 939,580 369,708 198,882 122,284 80,659 65,614 57,945 46,261 40,169 19,739 1,940,841 (859,435) $ 1,081,406
Less allowance for uncollectible ad valorem taxes receivable Ad valorem taxes receivable - net Reconciliation with Revenues: Taxes - ad valorem - General Fund Reconciling items: Advertising Interest collected Refunds and other adjustments Amounts written off per statute of limitations Total collections and credits
25,924,926 (10,039) (177,704) (17,213) 17,178
25,737,148
103
Schedule J-2

ANALYSIS OF CURRENT TAX LEVY - COUNTY-WIDE LEVY FOR THE YEAR ENDED JUNE 30, 2012
Total Levy Property Excluding Registered Motor Vehicles $ 24,848,038 24,848,038 $
County-Wide Property Valuation Original Levy: Property taxed at current year's rate Motor vehicles taxed at current year's rate Motor vehicles taxed at prior year's rate Total Discoveries: Current year taxes Utilities Less releases and adjustments Total property valuation Net Levy Uncollected taxes at June 30, 2012 Current Year's Taxes Collected Current Levy Collection Percentage Secondary Market Disclosures: Assessed valuation: Assessment ratio Real property Personal property Public service companies Total assessed valuation Tax rate per $100 Levy (includes discoveries, releases and abatements) In addition to the County-wide rate, the County had the following levy on behalf of fire protection districts for the fiscal year ended June 30, 2012. $ 8,906,106,741 228,796,796 36,504,151 9,171,407,688 $ Rate 0.279 0.279 0.279 Amount of Levy $ 24,848,038 638,343 101,847 25,588,228
Registered Motor Vehicles 638,343 101,847 740,190
20,408,961 115,761,649 (14,751,254) $ 9,292,827,044
0.279 0.279 0.279
56,941 322,975 (41,157)
56,941 322,975 (17,819)
(23,338)
25,926,987 (939,580) $ 24,987,407 96.38% $
25,210,135 (826,480) 24,383,655 96.72% $
716,852 (113,100) 603,752 84.22%
100.00% $ 8,911,764,448 265,300,947 115,761,649 $ 9,292,827,044 0.279 $ 25,926,987
2,713,766
104
Schedule J-3

SCHEDULE OF AD VALOREM TAXES RECEIVABLE - FIRE DISTRICTS JUNE 30, 2012
Fiscal Year 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 Total
Uncollected Balance July 1, 2011 $ 112,136 47,864 27,982 14,722 9,897 8,786 6,568 5,175 2,393 1,885 237,408 $
Additions 2,713,766 2,713,766
Collections and Credits $ 2,591,506 61,845 18,659 9,478 3,312 1,642 1,349 633 389 197 1,885 $ 2,690,895
Uncollected Balance June 30, 2012 $ 122,260 50,291 29,205 18,504 11,410 8,255 7,437 5,935 4,786 2,196 260,279
Less allowance for uncollectible ad valorem taxes receivable: Fire Districts Fund Fire districts taxes receivable - net Reconciliation of Revenues with Collections and Credits: Taxes - ad valorem - Fire Districts Fund Taxes written off Miscellaneous adjustments Total collections and credits $
(116,263) 144,016
2,709,230 1,756 (20,091) 2,690,895
105
Schedule J-4

ANALYSIS OF CURRENT TAX LEVY - FIRE DISTRICTS FOR THE YEAR ENDED JUNE 30, 2012
Amount of Levy Original Levy: Franklin Fire District Clarks Chapel Fire District Otto Fire District Cullasaja Fire District West Macon Fire District Scaly Mountain Fire District Burningtown / Iotla Fire District Cowee Fire District Nantahala Fire District Highlands Fire District Mountain Valley Fire District Net Levy Less uncollected taxes at June 30, 2012 Current Year's Taxes Collected Current Levy Collection Percentage $ $ 489,548 203,785 250,914 240,269 288,592 114,745 157,445 279,071 210,488 359,604 119,305 2,713,766 122,260 2,591,506 95.49%
106
STATISTICAL SECTION
The Statistical Section includes data extracted from prior years' financial reports and various other sources. The information presented in this section does not provide full and adequate disclosure of financial information for prior years required by generally accepted accounting principles. Such information is provided for supplementary analysis purposes and should be relied on only for the purpose specified. Contents Financial Trends These schedules contain trend information to help the reader understand how the Countys financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the Countys most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the Countys current levels of outstanding debt, and the Countys ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Countys financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Countys financial report relates to the services the government provides, and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.
MACON COUNTY Net Asset by Components Last Ten Fiscal Years (accrual basis of accounting)
Table 1
2003 Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets $
2004
2005 $ 15,899,185 103,606 3,937,076 $ 19,939,867
2006 $ 17,430,157 117,386 9,489,175 $ 27,036,718
2007 $ 20,916,879 141,787 12,058,258 $ 33,116,924
2008 $ 20,627,572 166,137 12,607,288 $ 33,400,997
2009 $ 21,515,203 207,996 3,989,432 $ 25,712,631
2010
2011
2012
17,969,673 $ 15,294,328 99,549 102,536 (4,091,140) 2,148,826 13,978,082 $ 17,545,690
$ 20,884,555 $ 20,496,868 $ 18,601,883 207,708 6,089,293 6,934,514 (3,850,248) (13,738,145) (18,641,028) $ 17,242,015 $ 12,848,016 $ 6,895,369
4,091,141 $ (957,642) 3,133,499 $
3,338,422 $ (505,998) 2,832,424 $
3,502,971 $ (619,446) 2,883,525 $
3,348,033 $ (886,636) 2,461,397 $
3,549,755 $ (202,990) 3,346,765 $
1,620,430 1,923,447 3,543,877
$ 2,323,169 1,428,363 $ 3,751,532
1,981,161 2,041,200 4,022,361
1,836,224 2,507,579 4,343,803
2,071,354 2,863,231 4,934,585
22,060,814 $ 18,632,750 99,549 102,536 (5,048,782) 1,642,828 17,111,581 $ 20,378,114
$ 19,402,156 103,606 3,317,630 $ 22,823,392
$ 20,778,190 117,386 8,602,539 $ 29,498,115
$ 24,466,634 141,787 11,855,268 $ 36,463,689
$ 22,248,002 166,137 14,530,735 $ 36,944,874
$ 23,838,372 207,996 5,417,795 $ 29,464,163
$ 22,865,716 $ 22,333,092 $ 20,673,237 207,708 6,089,293 6,934,514 (1,809,048) (11,230,566) (15,777,797) $ 21,264,376 $ 17,191,819 $ 11,829,954
107
MACON COUNTY Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting)
Table 2 Page 1 of 2
2003 Expenses Governmental activities: General government Public safety Transportation Economic development Human Services Culture and recreation Education Interest on long-term debt Total governmental activities expenses Business-type activities: Solid Waste Total business-type activities Total primary governmental expenses Program Revenues Governmental activities: Charges for services: General government Public Safety Economic Development Human Services Culture and recreation Education Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services: Solid Waste Total business-type activities program revenues Total primary governmental program revenues Net (expense)/revenue Governmental activities Business-type activities Total primary governmental net expense
2004
2005
2006
2007
2008
2009
2010
2011
2012
6,291,876 7,881,944 402,956 2,419,290 6,595,070 1,310,175 6,610,454 1,255,638 32,767,403 4,171,809 4,171,809
7,477,206 8,463,386 411,758 3,114,821 6,559,985 1,314,752 6,048,421 800,854 34,191,182 2,972,070 2,972,070
9,304,189 9,810,553 418,741 2,688,211 7,196,090 1,306,991 6,907,752 937,006 38,569,533 2,801,931 2,801,931
8,194,552 11,449,274 466,696 1,637,374 7,488,618 3,230,704 7,468,249 833,818 40,769,285 3,429,583 3,429,583
8,972,728 9,925,636 414,791 1,724,549 8,030,735 3,654,902 7,815,684 811,427 41,350,452 3,356,076 3,356,076
9,806,393 11,205,783 516,894 6,698,656 8,084,205 2,789,795 8,245,555 713,022 48,060,303 3,662,418 3,662,418
9,319,928 12,087,459 477,873 1,597,548 8,752,201 2,520,567 20,601,094 1,206,450 56,563,120 2,989,618 2,989,618
$ 11,226,884 11,655,558 577,894 4,041,113 7,878,952 2,437,318 18,483,547 1,545,951 57,847,217 2,889,088 2,889,088 $ 60,736,305
$ 10,770,642 12,147,316 638,415 8,671,741 7,734,446 2,430,596 14,553,807 1,887,654 58,834,617 3,351,735 3,351,735 $ 62,186,352
$ 10,544,326 13,462,012 709,086 2,977,859 9,376,517 2,349,816 16,309,605 2,118,296 57,847,517 2,880,580 2,880,580 $ 60,728,097
$ 36,939,212
$ 37,163,252
$ 41,371,464
$ 44,198,868
$ 44,706,528
$ 51,722,721
$ 59,552,738
108
1,144,128 1,429,178 373,602 107,204 4,925,260 786,066 8,765,438
1,386,521 1,524,317 434,334 464,100 5,842,312 1,947,260 11,598,844
1,310,337 1,620,729 416,156 517,528 5,450,953 295,956 9,611,659
1,607,326 1,739,400 438,202 752,106 9,671,499 284,509 14,493,042
1,459,496 2,133,982 479,745 715,653 7,161,995 908,658 12,859,529
1,463,179 2,256,802 472,473 986,723 6,806,761 169,515 12,155,453
1,592,002 1,650,743 407,720 903,849 2,042 7,966,289 381,385 12,904,030
1,136,094 1,614,704 403,518 1,007,881 174,944 7,688,512 2,908,017 14,933,670
1,045,549 2,143,743 526,092 806,249 7,645,348 5,814,683 17,981,664
1,047,612 2,110,943 476,355 684,473 10,647,327 133,681 15,100,391
3,146,476 3,146,476 $ 11,911,914
2,635,083 2,635,083 $ 14,233,927
2,781,985 2,781,985 $ 12,393,644
2,847,039 2,847,039 $ 17,340,081
3,514,108 3,514,108 $ 16,373,637
3,462,078 3,462,078 $ 15,617,531
3,059,573 3,059,573 $ 15,963,603
3,129,554 3,129,554 $ 18,063,224
3,654,347 3,654,347 $ 21,636,011
3,458,349 3,458,349 $ 18,558,740
$ (24,001,965) $ (22,592,338) $ (28,957,874) $ (26,276,243) $ (28,490,923) $ (35,904,850) $ (43,659,090) $ (42,913,547) $ (40,852,953) $ (42,747,126) (1,025,333) (336,987) (19,946) (582,544) 158,032 (582,544) 69,955 240,466 302,612 577,769 $ (25,027,298) $ (22,929,325) $ (28,977,820) $ (26,858,787) $ (28,332,891) $ (36,487,394) $ (43,589,135) $ (42,673,081) $ (40,550,341) $ (42,169,357)
Macon County Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting)
Table 2 Page 2 of 2
2003 General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes Sales taxes Franchise taxes Motor fuel taxes Alcoholic beverage tax Unrestricted intergovernmental revenues Investment earnings Miscellaneous Transfers Total governmental activities Total business-type activities Investment earnings Transfers Total business-type activities
2004
2005
2006
2007
2008
2009
2010
2011
2012
$ 18,285,180 6,031,128 216,668 209,372 414,393 25,156,741 56,118 56,118 $ 25,212,859
$ 21,495,646 $ 22,255,291 7,549,443 8,435,778 224,170 233,386 146,013 427,596 (3,255,326) 26,159,946 31,352,051 35,912 35,912 $ 26,195,858 71,047 71,047 $ 31,423,098
$ 22,928,210 9,076,690 240,435 1,127,759 33,373,094 160,416 160,416 $ 33,533,510
$ 23,460,925 9,875,544 239,639 1,490,333 35,066,441 232,021 232,021 $ 35,298,462
$ 24,544,667 9,665,716 233,090 1,446,785 298,665 36,188,923 220,117 (298,665) (78,548) $ 36,110,375
$ 26,520,446 8,216,388 508,221 725,647 35,970,702 137,700 137,700 $ 36,108,402
$ 26,960,198 7,036,801 340,817 105,115 34,442,931 30,363 30,363 $ 34,473,294
$ 28,883,855 6,695,601 348,668 97,930 432,900 36,458,954 18,830 18,830 $ 36,477,784
$ 28,747,033 7,609,640 359,342 78,464 36,794,479 13,013 13,013 $ 36,807,492
109
Total primary government Change in Net Assets Governmental activities Business-type activities Total primary government
$ $
1,154,776 969,215 2,123,991
$ $
3,567,608 $ (301,075) 3,266,533 $
2,394,177 51,101 2,445,278
$ $
7,096,851 $ (422,128) 6,674,723 $
6,080,203 885,367 6,965,570
$ $
284,073 197,112 481,185
$ (7,688,366) $ (8,470,616) $ 207,655 270,829 $ (7,480,711) $ (8,199,787) $
(4,393,999) $ (5,952,647) 321,442 590,782 (4,072,557) $ (5,361,865)
MACON COUNTY Governmental Activities Tax Revenues By Source Last Ten Fiscal Years
Table 3
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $
Property Tax 16,907,859 19,838,310 20,332,261 20,847,221 21,460,911 22,089,392 23,856,730 24,213,724 25,914,401 25,924,926 $
Sales Tax 4,864,740 6,427,048 7,243,269 7,706,632 8,306,691 8,084,923 6,770,736 5,713,754 5,367,796 6,095,609 $
Franchise Tax 85,313 76,941 66,984 75,559 52,617 118,397 104,511 103,686 102,842 93,896 $
Alcoholic Beverage Tax 49,393 9,874 10,179 11,316 11,847 63,112 142,442 55,142 11,767 11,602 $
Total 21,907,305 26,352,173 27,652,693 28,640,728 29,832,066 30,355,824 30,874,419 30,086,306 31,396,806 32,126,033
110
MACON COUNTY Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)
Table 4
2003 General Fund Reserved Unreserved Non-Spendable Restricted Assigned Unassigned Total General Fund $ 5,772,456 4,415,017 $ 10,187,473
2004 $ 4,227,463 10,760,474 $ 14,987,937
2005 $ 2,681,181 13,069,748 $ 15,750,929
2006 $ 2,473,215 13,701,429 $ 16,174,644
2007 $ 2,826,989 15,407,847 $ 18,234,836
2008 $ 3,075,715 15,269,826 $ 18,345,541
2009 $ 2,311,342 14,755,300 $ 17,066,642
2010 $ 3,490,651 14,162,233 $ 17,652,884 $
2011 144,038 2,551,146 16,508,831 $
2012 209,732 3,483,255 1,680,769 15,992,802 21,366,558
$ 19,204,015
All other governmental funds Reserved $ 324,761 Unreserved, reported in: Special revenue funds Capital projects funds Debt Service Fund Undesignated 1,119,683 Assigned in Debt Service Restricted for Debt Service Restricted Other Governmental Funds Restricted in Capital Project Committed in Other Governmental Funds Committed in Capital Project Unassigned Other Governmental Funds Unassigned in Capital Project $ 1,444,444 Total all other governmental funds
238,567 1,094,631 1,340,123 29,952 -
230,608 1,333,109 306,063 28,945 -
315,797 1,450,841 3,601,405 29,816 -
312,374 1,729,314 700,082 30,822 -
305,822 1,972,989 1,106,846 970,412 -
266,060 2,213,556 11,351,188 1,353,649 -
271,311 2,106,283 5,139,163 383,579 -
567,085 447,641 1,400,346 11,441,057 2,061,553 55,037 (497,733) (681,675)
976,150 44,145 1,354,059 2,053,055 1,663,942 533,308 (327,127) -
111
$ 2,703,273
$ 1,898,725
$ 5,397,859
$ 2,772,592
$ 4,356,069
$ 15,184,453
$ 7,900,336
$ 14,793,311
6,297,532
MACON COUNTY Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)
Table 5
2003 Revenues Ad valorem taxes Sales taxes Intergovernmental revenues Sales and services Permits and fees Investment earnings Miscellaneous Special Revenue Capital Projects Total revenues Expenditures General government Public safety Transportation Environmental protection Economic and physical development Human Services Culture and recreation Education Capital Projects Debt service Payment to refunding bond escrow Principal repayments Interest Special Revenue Total expenditures Revenues over (under) expenditures Other financing sources (uses) Issuance of long-term debt Transfers in Transfers out Refunding bonds issued Bonds issued Premium on bonds issued Discount on bonds issued Payments to refunded bond escrow agent Proceeds from long-term debt Capital leases Sale of capital assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of non-capital expenditures $18,268,797 6,031,128 5,983,363 1,144,315 1,578,409 204,236 534,779 33,745,027
2004 $21,545,541 7,549,443 8,010,248 1,695,592 1,857,492 141,080 104,873 40,904,269
2005 $22,238,716 8,435,778 6,055,037 1,814,346 1,708,853 404,650 113,124 40,770,504
2006
2007
2008
2009
2010 $ 26,863,202 7,036,801 10,937,346 1,264,861 2,720,850 93,387 353,500 49,269,947
2011 $28,602,628 $ 6,695,601 13,808,699 2,219,945 1,222,418 90,979 615,775 53,256,045
2012 28,634,156 7,609,640 10,731,178 2,697,408 1,432,807 75,819 409,172 51,590,180
$22,841,671 $23,518,724 $24,487,613 $ 26,438,682 9,076,690 9,875,544 9,665,716 8,216,388 9,737,989 8,746,167 7,228,631 8,855,895 2,134,938 2,269,035 2,662,068 2,570,078 1,936,063 2,009,986 1,985,430 1,356,793 1,066,838 1,344,687 1,256,103 603,699 136,590 174,740 234,320 244,231 46,930,779 47,938,883 47,519,881 48,285,766
3,919,421 8,784,496 595,843 3,335,799 7,363,982 1,392,164 5,354,043 2,341,058 2,533,092 1,255,638 36,875,536
4,282,698 9,761,363 614,682 1,620,069 7,811,902 1,379,564 6,048,421 2,331,530 2,753,723 800,854 37,404,806
5,029,332 11,254,775 488,898 3,088,248 8,075,863 1,582,672 6,907,752 579,878 2,866,782 937,006 40,811,206
5,774,005 14,240,785 625,277 1,767,762 8,813,543 1,851,747 7,468,249 3,681,709 2,951,032 833,818 48,007,927
6,218,377 12,854,941 542,903 1,208,635 9,438,135 2,199,021 7,815,684 4,283,244 2,632,255 815,450 48,008,645
6,916,257 12,708,975 533,265 1,416,792 9,481,690 2,803,484 8,245,555 5,401,532 2,502,747 714,067 50,724,364
7,002,731 12,866,248 666,039 1,619,388 9,438,111 2,193,716 9,069,891 11,531,203 3,142,501 1,206,453 58,736,281
6,865,350 12,434,561 655,444 4,077,802 8,473,867 2,089,043 9,276,564 9,206,983 3,642,256 1,545,952 58,267,822
6,301,602 12,622,842 635,137 5,168,426 8,054,680 2,093,121 7,878,559 10,213,175 4,161,363 1,887,655 59,016,560
6,449,113 13,707,106 754,920 3,004,228 9,649,735 2,021,075 8,084,457 8,225,148 4,637,634 2,118,296 58,651,712
112
(3,130,509)
3,499,463
(40,702)
(1,077,148)
(69,762)
(3,204,483)
10,450,515
(8,997,875) $
(5,760,515)
(7,061,532)
5,392,584 (5,392,584) -
4,578,829 (4,578,831) (320,000) (322,097) (17,678,146) (18,320,245)
6,162,274 (6,162,274) (855) (855) (41,557) $
5,000,000 6,755,507 (6,755,507) 5,000,000 3,922,852
4,415,465 (4,910,778) (495,313)
4,600,000 6,055,588 (5,756,923) 4,898,665
20,000,000 6,494,159 (6,494,159) 20,000,000 $ 9,549,485
2,300,000 6,343,504 (6,343,504) 2,300,000 $ (6,697,875) $
14,204,621 6,908,135 (6,908,135) 14,204,621 8,444,106 $
728,296 6,780,477 (6,780,477) 728,296 (6,333,236)
$ (3,130,509) $ (14,820,782) $
$ (565,075) $ 1,694,182
11.0%
10.8%
9.5%
8.5%
7.9%
7.1%
9.2%
10.6%
12.4%
11.7%
MACON COUNTY Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Table 6
Fiscal Year Ended 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Real Property Residential Property $ 2,524,183,215 3,385,289,817 3,624,812,645 3,209,032,022 3,386,421,481 5,396,447,249 5,753,163,178 5,866,027,575 5,925,219,476 8,285,147,048 Commercial Property $ 1,003,521,037 1,517,122,345 1,468,888,977 1,956,117,168 1,889,899,600 2,880,125,578 2,905,118,640 2,928,645,910 2,965,584,466 626,617,400
Personal Property Personal Property $ 200,957,654 254,284,638 256,855,264 301,708,108 313,560,811 453,733,352 330,284,672 272,522,727 259,761,022 265,300,947 Public Service Co. Property $ 106,510,444 107,982,432 108,479,189 109,242,432 108,277,838 113,519,723 110,609,091 118,964,015 132,595,699 115,761,649
Total Taxable Assessed Value $ 3,835,172,350 5,264,679,232 5,459,036,075 5,576,099,730 5,698,159,730 8,843,825,902 9,099,175,581 9,186,160,227 9,283,160,663 9,292,827,044 $
Total Direct Tax Rate 0.440 0.370 0.370 0.370 0.370 0.245 0.264 0.264 0.279 0.279
Estimated Actual Taxable Value $ 4,573,848,956 6,278,687,218 6,510,478,324 6,650,089,123 7,359,111,107 8,843,825,902 9,099,175,581 9,186,160,227 9,283,160,663 7,674,305,713
Assessed Value as a Percentage of Actual Value 83.85% 83.85% 83.85% 83.85% 77.43% 100.00% 100.00% 100.00% 100.00% 120.35%
113
Source: Macon County Tax Department Note: Historically, the County reassessed property on a four-year cycle; however, due to lack of sales, the County delayed the 2011 revaluation until 2015 and changed the revaluation cycle to every eight years. Tax rates are per $100 of assessed value. In prior years, the breakdown between residential and commercial property was estimated. For FY 11/12, a new program was written to track the commercial properties and provide actual values.
MACON COUNTY Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years
Table 7
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
County Direct Rate MACON Total Millage 0.440 0.370 0.370 0.370 0.370 0.245 0.264 0.264 0.279 0.279
Overlapping Rates FRANKLIN Total Millage 0.320 0.320 0.320 0.320 0.320 0.250 0.250 0.250 0.250 0.250 HIGHLANDS Total Millage 0.150 0.160 0.160 0.160 0.190 0.135 0.135 0.135 0.135 0.135
114
Source: County and Municipal Tax Departments
MACON COUNTY Principal Property Taxpayers June 30, 2012
Table 8
2012 Taxable Assessed Value $ 82,409,529 47,576,806 45,494,045 24,837,439 23,099,980 19,723,623 17,825,264 17,794,252 17,044,960 16,152,470 311,958,368 Percentage of Total Taxable Assessed Value 0.89% 0.51% 0.49% 0.27% 0.25% 0.21% 0.19% 0.19% 0.18% 0.17% 3.36% Taxable Assessed Value $ 71,783,495 27,525,626 23,638,550 13,023,930 12,496,459 10,867,046 10,752,980 10,569,324 10,206,473 9,258,210 200,122,093
2003 Percentage of Total Taxable Assessed Value 1.92% 0.74% 0.63% 0.35% 0.33% 0.29% 0.29% 0.28% 0.27% 0.25% 5.36%
Taxpayer DUKE POWER DRAKE ENTERPRISES OLD EDWARDS INN & SPA MACON BANK HIGHLANDS GOLF CLUB SHAW INDUSTRIES TRI INVESTMENTS INC CULLASAJA CLUB RAINBOW SPRINGS PARTNER ROCKWOOD LODGE LLC Totals Total Taxable Assessed Value
Rank 1 2 3 4 5 6 7 8 9 10
Taxpayer DUKE POWER DRAKE ENTERPRISES VERIZON SOUTH MACON BANK ZICKGRAF ENTERPRISES WILDCAT CLIFFS CHESTNUT HILL LIMITED PART CULLASAJA CLUB HIGHLANDS GOLF CLUB INC RAMCO-GERSHENSON PROP Totals Total Taxable Assessed Value
Rank 1 2 3 4 5 6 7 8 9 10
115
$ 9,292,827,044
$ 3,733,673,671
Source: Macon County Tax Department
MACON COUNTY Property Tax Levies and Collections Last Ten Fiscal Years
Table 9
Fiscal Year Ended June 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $
Total Levy for Fiscal Year 17,006,094 19,480,913 20,193,648 20,617,354 21,044,658 21,762,091 23,965,953 24,232,307 25,888,937 25,926,987 $
Collected within the Fiscal Year of the Levy Amount 16,401,832 19,018,735 19,717,607 20,136,403 20,553,903 21,191,159 23,255,354 23,468,413 25,047,774 24,987,407 Percentage of Levy 96.45% 97.63% 97.64% 97.67% 97.67% 97.38% 97.03% 96.85% 96.75% 96.38%
Collections in Subsequent Years $ 584,523 422,009 429,780 423,006 425,141 490,273 588,315 565,012 471,455 -
Total Collections to Date Amount $ 16,986,355 19,440,744 20,147,387 20,559,409 20,979,044 21,681,432 23,843,669 24,033,425 25,519,229 24,987,407 Percentage of Levy 99.88% 99.79% 99.77% 99.72% 99.69% 99.63% 99.49% 99.18% 98.57% 96.38%
116
MACON COUNTY Ratio of Outstanding Debt by Type Last Ten Fiscal Years
Table 10
Governmental Activities Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ General Obligation Bonds 1,270,000 795,000 350,000 $ Installment Contracts 20,075,263 20,820,935 18,586,354 21,125,157 18,624,999 20,783,871 37,661,616 36,319,360 46,362,617 42,453,279 Capital Leases $ Sewer Bonds $ -
Business-Type Activities General Obligation Bonds $ 2,110,485 1,663,111 1,204,854 733,258 247,934 Installment Contracts $ 1,900,000 1,500,000 1,100,000 700,000 200,000 $ Capital Leases 438,834 297,740 151,006 Total Primary Government $ 23,894,582 23,576,786 20,292,214 21,858,415 18,872,933 22,683,871 39,161,616 37,419,360 47,062,617 42,653,279 Percentage of Personal Income 3.14% 2.93% 2.35% 2.34% 1.89% 2.20% 3.99% 3.70% N/A N/A $ Per Capita 754 738 629 661 558 674 1,124 1,063 1,312 1,248
117
Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Personal income for 2011 and 2012 is not available.
MACON COUNTY Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years
Table 11
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Value Assessed $ 3,835,172,350 5,264,579,232 5,459,036,075 5,576,099,730 5,698,159,730 8,975,358,517 9,099,175,581 9,186,160,227 9,283,160,663 9,292,827,044 $
Gross General Obligation Bonded Debt 1,270,000 795,000 350,000 $
Net General Obligation Bonded Debt 1,270,000 795,000 350,000 -
Ratio Net General Obligation Bonded Debt to Assessed Value 0.033% 0.015% 0.006% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%
Population 31,670 31,968 32,257 33,076 33,797 33,640 34,850 35,208 35,869 34,164 $
Net General Obligation Bonded Debt Per Capita 40 25 11 -
118
Source: Population Estimate from www.ncesc.com Workforce In-Depth Macon County Summary. Value Assessed - Macon County Tax Department.
MACON COUNTY Direct and Overlapping Governmental Activities Debt As of June 30, 2012
Table 12
Governmental Unit Direct Debt: Macon County Total Direct Debt Overlapping Debt: Town of Franklin Town of Highlands Total Overlapping Debt
Debt Outstanding $ 42,453,279 42,453,279
Estimated Percentage Applicable 100.00%
Estimated Share of Direct and Overlapping Debt $ 42,453,279 42,453,279
1,517,101 919,114 2,436,215 $ 44,889,494
100.00% 100.00%
1,517,101 919,114 2,436,215 $ 44,889,494
119
Total Direct and Overlapping Debt
Source: Macon County and municipal finance departments.
MACON COUNTY Legal Debt Margin Information Last Ten Fiscal Years
Table 13
2003 Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit $ 306,813,788 24,627,374 $ 282,186,414.00 $
2004 421,174,339 24,135,184 $ 397,039,155.00 $
2005 436,722,886 20,663,410 $ 416,059,476.00 $
2006 446,087,978 21,356,518 $ 424,731,460.40 $
2007 455,852,778 18,955,845 $ 436,896,933.00 $
2008 707,506,072 20,804,119 $ 686,701,953.00 $
2009 727,934,046 37,661,616 $ 690,272,430.00 $
2010 734,892,818 37,419,360 $ 697,473,458.00 $
2011 742,652,853 47,062,617 $ 695,590,236.00 $
2012 743,426,164 42,653,279 $ 700,772,884.52
8.03%
5.73%
4.73%
4.79%
4.16%
2.94%
5.17%
5.09%
6.34%
5.74%
Legal Debt Margin Calculation for Fiscal Year 2012 Assessed value Add back: exempt real property Total assessed value Debt Limit (8% of total assessed value) Debt applicable to limit: Installment contracts Revenue bond debt Promissory notes Legal debt margin $ 9,292,827,044 $ 9,292,827,044 $ 743,426,164 42,653,279 $ 700,772,885
120
Note: Under State finance law, the Macon County's outstanding general obligation debt should not exceed 8 percent of total assessed property value.
MACON COUNTY Demographic and Economic Statistics Last Ten Fiscal Years
Table 14
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Population 31,670 31,968 32,257 33,076 33,797 33,640 34,850 35,208 35,869 34,164 $
Personal Income 760,908,000 804,644,000 864,976,000 933,041,000 997,625,000 1,032,727,000 981,057,000 1,010,822,000 NA NA $
Per Capita Personal Income 24,026 25,170 26,815 28,209 29,518 30,699 28,151 28,710 NA NA
Median Age 45.8 46.0 46.2 46.4 46.6 46.7 46.7 45.2 45.2 48.5
School Enrollment 3,969 4,021 4,262 4,072 4,177 4,493 4,419 4,452 4,382 4,417
Unemployment Rate 3.20 2.90 5.50 4.40 3.60 5.20 10.00 10.20 10.30 10.10
121
Note: Population for 2008 and 2009 and 2008 median age came from data.osbm.state.nc median age. Personal income from 2003 to 2010 obtained from Bureau of Economic Analysis. Personal income for 2011 and 2012 is not available. Per capita personal income is calculated by dividing personal income by population. Unemployment rate and population for 2011 and 2012 is from www.ncesc.com. School enrollment is provided by the local school system and is the enrollment as of August 30, 2012.
MACON COUNTY Principal Employers Current Year and Ten Years Ago 2012 Percentage of Total County Employment 4.39% 4.30% 3.37% 2.83% 1.84% 1.53% 1.15% 1.10% 1.06% 0.96% 2003
Table 15
Employer Macon County Public Schools Drake Enterprises LTD (A Corp) Macon County Angel Medical Center Wal-Mart Associates Inc. Highlands Cashiers Hospital Caterpillar Inc. Ingles Markets, Inc. Macon Bank Shaw Industries Group Inc. (was Zickgraf) Total
Employees 715 700 549 461 300 249 188 179 172 156 3,669
Rank 1 2 3 4 5 6 7 8 9 10
Employees 582 513 409 416 200 297 189 158 202 180 3,146
Rank 1 2 4 3 7 5 8 10 6 9
Percentage of Total County Employment 3.69% 3.25% 2.59% 2.64% 1.27% 1.88% 1.20% 1.00% 1.28% 1.14%
122
Total Labor Force estimate
16,278
15,773
Source: Employer's Human Resource Dept.
MACON COUNTY Full-Time Equivalent County Government Employees By Function Last Ten Fiscal Years
Table 16
2003 Function General Government Public Safety Human Services Culture and Recreation Economic and Physical Development 74 99 102 11 N/A N/A 15 301
2004
2005
2006
2007
2008
2009
2010
2011
2012
77 104 102 11 N/A N/A 16 310
95 104 101 12 N/A N/A 16 328
105 108 102 6 N/A N/A 17 338
73 133 111 7 5 7 16 352
92 106 113 16 2 7 17 353
81 137 119 10 5 11 34 397
89 125 118 9 3 8 34 386
97 150 111 11 1 13 35 418
97 150 108 10 14 37 416
123
Transportation Landfill Total
Source: Macon County Human Resource Department
MACON COUNTY Operating Indicators By Function Last Ten Fiscal Years
Table 17
2003 Function Law Enforcement Physical arrests Traffic violations Fire Number of calls answered Inspections Economic Development Number of industrial parks
2004
2005
2006
2007
2008
2009
2010
2011
2012
1,411 2,177
1,246 2,598
1,498 3,092
1,515 774
1,539 654
1,745 1,296
2,110 1,228
1,714 2,265
1,547 1,516
1,303 946
2,292 450
2,450 450
2,721 500
3,243 550
3,243 780
3,396 491
3,093 425
3,406 500
3,642 550
3,621 520
124
Human Services Dept. of Social Services Number of CHIP cases eligible Number of Food & Nutrition cases eligible Number of Medicaid eligible cases Health Number of WIC cases Number of family planning cases Solid Waste Number of landfill's Culture and recreation Number of recreation parks Number of libraries
393 N/A 3,221 805 586
427 991 3,249 806 565
477 1,051 3,342 835 629
477 1,196 3,567 845 490
617 1,197 4,388 845 693
617 1,432 4,858 845 745
590 1,861 5,242 1,093 660
430 2,361 4,785 1,167 798
402 2,987 4,975 1,049 639
447 3,144 5,020 1,044 657
4 3
6 3
6 3
6 3
6 3
6 3
6 3
6 3
6 3
6 3
Source: Various County departments Note: Indicators are not available for the general government function. Firefighters are volunteers.
MACON COUNTY Capital Asset Statistics by Function Last Ten Fiscal Years
Table 18
2003 Function Public safety Police: Stations Patrol units Fire stations Culture and recreation Parks acreage Parks Swimming pools Tennis courts Community centers Landfill Number of municipal solid waste sites Number of construction and demolition sites Number of convenience centers
2004
2005
2006
2007
2008
2009
2010
2011
2012
3 54 11
3 54 11
3 63 11
3 38 11
3 23 13
3 25 13
3 25 13
3 45 10
3 45 13
3 45 13
138.6 4 2 9 11
138.6 6 2 9 11
308.6 6 2 9 11
308.6 6 2 9 11
308.6 6 2 9 11
352.6 6 2 6 11
352.6 6 2 6 11
352.6 6 2 6 11
352.6 6 2 6 11
352.6 6 2 6 11
125
1 1 10
1 1 10
1 1 10
1 1 10
1 1 10
1 1 10
1 11
2 11
2 11
2 0 11
Source: Various County departments Note: No capital asset indicators are available for the general government function.

Macon County NC Comprehensive Financial Audit Report - June 30, 2012

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Macon County NC Comprehensive Financial Audit Report - June 30, 2012

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MACON COUNTY

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Prepared by: Finance Department Finance Director: Lori M. Hall

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MACON COUNTY, NORTH CAROLINA

MACON COUNTY, NORTH CAROLINA

MACON COUNTY, NORTH CAROLINA

MACON COUNTY, NORTH CAROLINA

MACON COUNTY, NORTH CAROLINA

MACON COUNTY, NORTH CAROLINA

123 124 125

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Macon County Government

County Managers Office

Shared Authority 2 Social Services

HR/Deputy Clerk Finance Department Information Technology

MACON COUNTY, NORTH CAROLINA

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INDEPENDENT AUDITORS' REPORT

Martin Starnes & Associates, CPAs, P.A. October 19, 2012

Managements Discussion and Analysis

Overview of the Financial Statements

Required Components of Annual Financial Report Figure 1

Management's Discussion and Analysis

Basic Financial Statements

GovernmentWide Financial Statements Summary

Fund Financial Statements

Notes to the Financial Statements Detail

Basic Financial Statements

Government-Wide Financial Statements

Fund Financial Statements

Government-Wide Financial Analysis

47,338,503 8,199,173 55,537,676

45,449,420 7,653,204 53,102,624

5,643,286 617,389 6,260,675

5,512,126 497,909 6,010,035

52,981,789 $ 50,961,546 8,816,562 8,151,113 61,798,351 59,112,659

20,496,868 6,089,293 (13,738,145) $ 12,848,016 $

18,601,883 6,934,514 (18,641,028)

22,333,092 6,089,293 (11,230,566)

20,673,237 6,934,514 (15,777,797)

6,895,369 $ 4,343,803 $ 4,934,585 $17,191,819 $ 11,829,954

Macon County's Changes in Net Assets Figure 3

4,521,633 $ 7,645,348 5,814,683 28,883,855 6,695,601 446,598 54,007,718

4,319,383 $ 10,647,327 133,681 28,747,033 7,609,640 437,806 51,894,870

3,654,347 $ 18,830 3,673,177

3,458,349 $ 13,013 3,471,362

8,175,980 $ 7,645,348 5,814,683 28,883,855 6,695,601 465,428 57,680,895

7,777,732 10,647,327 133,681 28,747,033 7,609,640 450,819 55,366,232

10,770,642 12,147,316 638,415 8,671,741 7,734,446 2,430,596 14,553,807 1,887,654 58,834,617

10,544,326 13,462,012 709,086 2,977,859 9,376,517 2,349,816 16,309,605 2,118,296 57,847,517

(4,826,899) 432,900 (4,393,999)

(4,505,457) 432,900 (4,072,557)

General Fund Budgetary Highlights

Capital Asset and Debt Administration

Economic Factors and Next Years Budget and Rates

Requests for information

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BASIC FINANCIAL STATEMENTS OVERVIEW

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MACON COUNTY, NORTH CAROLINA

2,810,634 130,301 4,712,269 45,449,420 53,102,624

293,329 204,580 5,512,126 6,010,035

3,103,963 130,301 4,916,849 50,961,546 59,112,659