Fiscal Year 2016 Audited Financial

Statements & County Financial

Position Overview
Department of the Comptroller
Robert M. Burk, Comptroller

Comprehensive Annual Financial

Report (CAFR)
The CAFR includes Audited Financial Statements
& other Economic, Demographic, Statistical &
Financial data.
Includes 10 year comparative historical data
(trends)
Focus on all funds of Government, including
Enterprise Funds & Pension Funds
Includes Component Units (Board of Education,
Carroll Community College, Library & Industrial
Development Authority)

Comprehensive Annual Financial

Report (CAFR)
Full Disclosure of County finances- Where
money comes from and where it is spent
Accounting rules established by Governmental
Accounting Standards Board (GASB)- Generally
Accepted Accounting Principles (GAAP)
Consistent and comparable financial data
reporting
Trends over time
Other jurisdictions

Carroll Countys Audit

Clean Bill of Health- Unmodified
Independent Audit opinion (highest available)
2 findings on financial statements- both prior
period adjustments to reclassify how and
when revenue is recorded.

Requirements
Required by State Law- Basis for Uniform
Financial Report (UFR) to Department of
Legislative Services
Submitted to State and Federal Government
(Grants), Credit Rating Agencies (used to
maintain our Aa1 and AAA ratings), Media,
Website (public open disclosure), DAC bond
market disclosure.

GFOA Certificate of Achievement for

Excellence in Financial Reporting

31st consecutive year thru FY15

Quality Control (peer review) and Consistency with other
Governments in the U.S.

Single Audit
Single Audit for federal grants of
approximately $11 M.
1 Major Program (HUD) Housing Choice
Voucher ($5.4M)
No Findings
No questioned costs
All prior year findings resolved

County Financial Position

1. The near term position
Are the regular inflows sufficient to cover regular
outflows?
Does Carroll County have sufficient liquid resources to
manage immediate financial impact of unexpected
events and developments?
Is there enough fund balance in the General Fund to
serve as a financial buffer against contingencies?

County Financial Position

FY 16 the County had $370 M in General fund
revenues and $367 M in expenditures.
Net Transfers into General Fund were $5.7M.

Transfers into General Fund were $14.3 M primarily

from the Capital Fund.
Transfers out of General fund were $9.9M which
included $3.1M to Capital Projects, $2.4M to Solid
Waste, $0.2M to Bureau of Utilities, $2.1M to Internal
Service Fund & $2.1M to Non-Major Funds
General Fund had $84.0M in pooled cash and
investments which are readily available and equal about
84 days worth of revenue.

County Financial Position

General Fund Expenditures By Function
Debt Service
General
11.29%
Government
Judicial
9.98%
1.95%
Other

4.62%

Public Safety
11.77%

Library
3.83%
Public Works
4.42%
Education
52.14%

County Financial Position

Fund Balances & Reserves

General Fund Unassigned surplus $10.8M

(2.9% of FY16 Revenue)
FY 15: $7.4 M (2% of FY15 Revenue)
A budget surplus is created by spending within
available resources, necessary for balanced
budget.
To a Household earning $50,000 this would be
equivalent to having $1,000 savings after all
bills are paid; available for future use.

General Fund Unassigned Fund

Balance
$18
4.4%

$14
$12
Millions

Unassigned Fund Balance

$16

4.8%

2.9%

$10
2.0%

$8

2.1%

$6
$4
$2
$FY 12

FY 13

FY 14
FY 15
FY 16
Fiscal Year
General Fund Unassigned Fund Balance
% of General Fund Revenue

County Financial Position

Fund Balances & Reserves

Unassigned fund balance has the flexibility to be

used in the FY18 budget or other planned uses.
Stabilization Arrangement $19.4 M (5.2% of FY16
revenue)-Committed fund balance by ordinance
Stabilization policy requires 5% of FY17 Budget
Reserves have not been used or drawn down and
are considered fully funded
General Fund does not include Capital Assets or
Debt (focus on available spendable resourcesshort-term)

County Financial Position

2. Total Governmental Activities Net Position
Is total net position improving or deteriorating?
Net Position (assets and deferred outflows less liabilities) for
FY 16 is $176 M (Total Net Position for FY15, was $165M).
Trend declining over past 10 years (FY 07 $361M)
Increased School and Capital debt, OPEB & Pension
Liabilities, and net capital depreciation
Relatively Stable over the past 6 years.

Debt Position
Total general obligation bonded debt $292 M,
(County $185 M, BOE $92 M, and Enterprise $15
M) vs $295 M in FY 15
FY17 projected to end lower than FY 16, pay-off
more debt than issued ($14M issued, $30M
retired = $16M net reduction)
Rapidity of Debt payments- 67.8% in 10 years,
90% in 15 years
Debt is not used to fund operating expenses
Total Capital Assets (net)= $929 M (includes
government, infrastructure, enterprise & schools)

DEBT
General Obligation Bonded Debt
$340,000,000
$320,000,000
$300,000,000
$280,000,000
$260,000,000
$240,000,000
$220,000,000
$200,000,000
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Debt Position
Debt Ratios
Debt to Assessable Base = 1.88%
General Fund Debt Service $41 M (11.20% of
General Fund Revenues)
Debt per capita= $2,040
Below 25% of the calculated debt limit of $1.2
Billion (6% of assessed value)
County paid an average interest rate of 4.25%
($13.3 M)

Projected Bonded Debt Service

$45
$40
$35
$30
$25
$20
$15
$10
$5
$0

12%
10%
8%
6%
4%
2%
0%
16

17

18

Debt Service

19

20 21 22
Fiscal Year

23

% of Budgeted Revenues

24

25

26

Target %

% of Budgeted Revenues

Millions

Debt Service Amount

Projected Bonded Debt Service

Pensions and OPEB

Carroll County Employee Pension Plan

$66.7M total assets

$77.2M total pension liability
$10.5M net pension liability
FY16- net position is 86.32% of total liability or 13.68% of the total
liability is unfunded
$2.5M contributed by employer towards ADC ($2.5M)

Carroll County Certified Law Officers Pension

$10.1M total assets

$12.8M total pension liability
$2.7M net pension liability
FY 16- net position is 79.19% of total liability or 20.81% of the total
liability is unfunded
$0.7M contributed by employer towards ADC ($0.7M)

Percentage Funded
Employee

Percentage Funded

Pensions and OPEB

Length of Service Award Program (LOSAP)

$8.3M total assets

$9.7M total pension liability
$1.4M net pension liability
FY16- net position is 85.42% of total liability or 14.58% of the
total liability is unfunded
$.05M contributed by the County towards ADC ($0.3M)

Other Post Employment Benefits (OPEB) (Retiree Health)

$66.5M total assets

FY15- 33.12% funded
$96.9 M unfunded liability
FY16 $10.1M contributed by employer towards ARC ($10.4M)

Enterprise Funds
Goal to be self supporting through user fees
rather than tax-supported
Capture costs (operating and
maintenance/replacement) and control the
revenue stream (rates) to cover the costs
Includes capital assets & debt- business-type
financial reporting

Enterprise Funds

All funds have positive net assets

Working Capital= $21.2M
Current ratio= 4.37
Total net position increased $0.7M
No Significant financial concerns.

County Financial Position

3. Economic Condition
Is the net position likely to improve or deteriorate in the
future?
Challenges:
The assessed value of property slightly increased in FY16
compared to FY15.
Population and demand for services continues to increase.
School enrollment peaked in 2004 and now has leveled off
back to where it was 20 years ago.
Positives:
Personal income continues to grow among Carroll County
residents. (37% increase from 2007 to 2014)
Major employers in Carroll County remain steady.

Key Financial Ratios

Governmental Activities
Current ratio= 2.23
Quick ratio= 1.84
A common rule of thumb is that companies with a quick ratio of
greater than 1.0 are sufficiently able to meet their short-term
liabilities.

Liquidity: Cash to revenue ratio= 34.83%

Current Ratio

The following table presents the five year trend of the current ratio for
Governmental Activities, Business-type Activities and Total Primary
Government:
Fiscal

Governmental

Business-type

Primary

Year

Activities

Activities

Government

2012

2.20%

3.66%

2.31%

2013

1.98

3.98

2.13

2014

2.04

5.58

2.26

2015

2.09

3.80

2.24

2016

2.23

4.37

2.38

Quick Ratio
The following table presents the five year trend of the quick
ratio for Governmental Activities, Business-type Activities and
the Total Primary Government:
Fiscal
Year
2012
2013
2014
2015
2016

Governmental
Activities
1.93
1.76
1.76
1.65
1.84

Business-type
Activities
3.63
3.91
5.52
3.78
4.61

Primary
Government
2.01
1.91
1.99
1.84
2.02

Liquidity
Cash over Revenues Ratio
The following table presents the five year trend of the cash
over revenues ratio for Governmental Activities, Businesstype Activities and the Total Primary Government:

Fiscal
Year
2012
2013
2014
2015
2016

Governmental
Activities
37.29
41.55
35.39
30.95
34.83

Businesstype
Activities
120.19
138.06
142.26
137.47
128.28

Primary
Government
41.24
46.60
40.68
36.24
39.13

Credit Ratings
Fitch AAA
S&P AAA
Moody's Aa1
Independent review of financial, economic and
management factors
References to low to moderate debt levels,
healthy reserves, sound financial management
practices
Address financial issues through budget process
to avoid a negative effect on financial position

Conclusion
The County has a strong and healthy current
financial position
Positive net positions
Adequate liquidity
Able to meet obligations

Results of financial planning and prudent

decisions.
Spending within means
Conservative budgeting