HARNETT COUNTY, NORTH CAROLINA
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INTRODUCTORY SECTION:
Letter of Transmittal i
GFOA Certificate of Achievement xiii
Map of Harnett County, North Carolina xiv
Organizational Chart xv
Members of the Board of County Commissioners and
Administrative and County Officers xvi
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined balance sheet - all fund types and account groups 2
Combined statement of revenues, expenditures and changes in fund
balances - all governmental fund types 6
Combined statement of revenues, expenditures and changes in fund
balances - budget and actual - General Fund and annually budgeted Special Revenue Funds 8
Combined statement of revenues, expenses and changes in retained
earnings - all proprietary fund types 12
Combined statement of cash flows - all proprietary fund types 13
Notes to general purpose financial statements 14
REQUIRED SUPPLEMENTAL FINANCIAL DATA
Law enforcement officers’ special separation allowance 52
STATEMENTS/SCHEDULES:
General Fund:
Statement of revenues, expenditures and changes in fund balance -
budget and actual 54
Special Revenue Funds:
Combining balance sheet 64
Combining statement of revenues, expenditures and changes in fund balances 66
Combining statement of revenues and expenditures – budget and actual
and changes in fund balances – Special Revenue Funds 68
Schedule of revenues, expenditures and changes in fund balance -
budget and actual - Community Development Block Grant Revolving Loan Fund 72
Schedule of revenues, expenditures and changes in fund balance -
budget and actual - Child Development Grant Fund 73
Schedule of revenues, expenditures and changes in fund balance -
budget and actual - Hurricane Fran Fund 74
Schedule of revenues, expenditures and changes in fund balance -
budget and actual - Emergency Response Planning Fund 75
HARNETT COUNTY, NORTH CAROLINA
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STATEMENTS/SCHEDULES (Continued):
Capital Project Funds:
Combining balance sheet 78
Combining statement of revenues, expenditures and changes in fund balances 80
Schedule of revenues, expenditures and changes in fund balance - budget and actual :
Masterplan Courthouse Update Capital Project Fund 82
Airport Capital Project Funds 83
Shawtown Revitalization Capital Project Fund 84
Patterson/Bailey Community Development Block Grant Capital Project Fund 85
General Fund – Capital Project Fund School-COPS 2000 Capital Project Fund 86
Enterprise Funds:
Combining balance sheet 88
Combining statement of revenues, expenses and changes in retained earnings 90
Combining statement of cash flows 92
Combining schedule of operating expenses 94
Combining schedule statement of revenues and expenditures - budget and actual (non-GAAP) 95
Combining schedule of revenues and expenditures -
budget and actual (non-GAAP)-non-operating Enterprise Funds 96
Schedule of revenues and expenditures - budget and actual (non-GAAP):
Comprehensive Wastewater Study Capital Project Fund 99
Water Treatment Pilot Program 100
Southwest Wastewater Expansion Capital Project Fund 101
Titan Industries Capital Project Fund 102
Buies Creek Wastewater Capital Project Fund 103
Southwest Regional Distribution Transmission Capital Project 104
Lillington Regional Wastewater Capital Project 105
Southwest Regional Transmission III (Design Phase) Capital Project 106
Riverside Capital Project 107
Wellons Acquisition and Anderson Creek Sewer Extension Capital Project 108
Wastewater SCADA Improvements Capital Project 109
Western Harnett and Johnsonville School Sewer Extension Capital Project 110
Harnett-Wake Transmission Capital Project 111 Wastewater SCADA Improvements Capital Project 109
Northeast Water Plant 18mgd Expansion Capital Project 112
Harnett Fuquay Wastewater Capital Project 113
Anderson Creek Water Acquisition Capital Project 114
South Central Capital Project
115
Closure Dunn /Erwin Landfill 116
HARNETT COUNTY, NORTH CAROLINA
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STATEMENTS/SCHEDULES (Continued):
Trust and Agency Funds:
Combining balance sheet 118
Combining statement of changes in assets and liabilities 119
General Fixed Assets Account Group:
Comparative schedules of general fixed assets by source 123
Schedule of general fixed assets by function and activity 124
OTHER SCHEDULES:
Schedule of ad valorem taxes receivable – General Fund 130
Analysis of current tax levy 131
Ten largest taxpayers 132
STATISTICAL SECTION (UNAUDITED):
General governmental expenditures by function 134
General governmental revenues by source 136
Property tax levies and collections -– general fund 138
Assessed value of taxable property 140
Property tax rates -– direct and overlapping governments 141
Ratio of net general bonded debt to assessed value and bonded debt per capita 142
Computation of legal debt margin 143
Computation of direct and overlapping debt 144
Demographic statistics 145
Bond coverage -– water and sewer bonds 146
Property value, construction and bank deposits 147
Miscellaneous statistics 148
COMPLIANCE SECTION
Report on Compliance and on Internal Control Over Financial Reporting Based on
an Audit Performed in Accordance with Government Auditing Standards 151
Report on Compliance with Requirements Applicable to Each Major Federal Program
and Internal Control Over Compliance in Accordance with OMB Circular A-133 and the
State Single Audit Implementation Act152
Report on Compliance with Requirements Applicable to Each Major State Program and
Internal Control Over Compliance in Accordance with Applicable Sections of OMB
Circular A-133 and the State Single Audit Implementation Act154
Schedule of Findings and Questioned Costs156
Corrective Action Plan160
Summary Schedule of Prior Year Audit Findings161
Schedule of Expenditures of Federal and State Awards162
GENERAL PURPOSE
FINANCIAL
STATEMENTS
The General Purpose Financial Statements Provide a Summary overview of the financial position of all funds and account groups and of the operating results of all funds. They also serve as a condensed introduction to the more detailed statements that follow.
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REQUIRED SUPPLEMENTAL
FINANCIAL DATA
This section contains additional information required by accounting principles generally accepted in the United States of America.
Schedule of Funding Progress for the Law Enforcement Officers’ Special Separation Allowance.
Notes to the Required Schedules for the Law Enforcement Officer’s Special Separation Allowance.
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GENERAL FUND
The General Fund accounts for resources traditionally associated with government which are not required legally or by financial management to be accounted for in another fund.
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SPECIAL REVENUE FUNDS
Special Revenue Funds account for the proceeds of special revenue sources that are legally restricted to the expenditure for special purposes.
INDIVIDUAL FUND DESCRIPTIONS:
Section 8 Housing Fund – accounts for grant funds provided to support the County’s Section 8 Existing and Modified Rehabilitation housing programs.
Special Districts Fund – accounts for revenues of sixteen rescue / fire districts and one special school district in Harnett County.
Community Development Block Grant Revolving Loan – accounts for grant funds received from the North Carolina Department of Economic and Community Development to be loaned to industries.
Law Enforcement Fund – accounts for the handgun assessed fees that are charged for concealed weapons permits. This fund is budgeted annually.
Child Development Grant Fund – composed of the following: Children, Youth and Family – accounts for children’s programs for community development through grant funds; Americorps – this federal grant program involves volunteers’ work in child care; Before and After School – fee based child care program; Z. Smith Reynolds Grant – child care program with private grant funding; Kate B. Reynolds – Breastfeeding – private grant funding to encourage breastfeeding; Child Care Block Grant, Child Care Trust Advocacy, and Child Resource & Commission Grant – accounts for expenditures in the “It Takes a Village“ program.
Hurricane Fran Fund – accounts for financing and expenditures related to disaster and recovery from Hurricane Fran. Eligible costs have been submitted to the Federal Emergency Management Agency.
Emergency Telephone System Fund – accounts for the surcharge fees billed to telephone customers and the expenditures related to the implementation of the Emergency Telephone System.
Emergency Response Planning Fund – accounts for the expenditures and revenues for emergency response readiness for the fixed nuclear facility.
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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:
INDIVIDUAL FUND DESCRIPTION:
Masterplan Courthouse Update – accounts for financing and use of funds for the master plan update for the Courthouse.
Airport – accounts for financing and construction of improvements at the Harnett County Airport. Projects included are : Crossroads Acquisition; Phase 1 Runway Extension; and Remote communications Outlet.
Shawtown Revitalization – accounts for the financing and the expenditures for the housing rehabilitation, clearance, and relocation activities and public sewer infrastructure improvements in the Shawtown area.
Patterson / Bailey (CDBG) – accounts for financing and the expenditures for the housing rehabilitation, clearance and relocation activities and public sewer infrastructure improvements in the Patterson / Bailey Way area of the County.
General Fund – accounts for 2000 COPS funds received and passed through to the Board of Education for school projects.
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ENTERPRISE FUNDS
Enterprise Funds accounts for operations financed and operated in a manner similar to private business enterprises – where the costs of providing services are financed primarily through user charges. Harnett County maintains one enterprise fund to account for the operations of the water and sewer districts. The County maintains nine additional funds to account for the debt service for each district. The County maintains a separate enterprise fund for the operations of the landfill.
INDIVIDUAL FUND DESCRIPTIONS:
Harnett County Public Utilities Fund – accounts for the operations of the nine water and sewer districts which provide water and sewer to the residents of the County.
Individual Water and Sewer Funds – account for the debt service for each of the water and sewer districts. These funds are the Northeast Metro Water and Sewer District, the Buies Creek / Coats Sewer District, the South Central Water and Sewer District, the West Central Water and Sewer District, the Northwest Water and Sewer District, the Bunnlevel / Riverside Water and Sewer District, and the East Central Water and Sewer District.
Solid Waste Management Fund – accounts for the operations of the Harnett County Landfill.
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AGENCY FUNDS
Individual Fund Descriptions:
Social Services Trust Fund – accounts for monies held by the Social Services Department for the benefit of certain individuals within the County.
Cooperative Extension Special Trust Fund – accounts for monies received by the County for use in special programs provided through the Cooperative Extension Department.
Motor Vehicle Tax Fund – accounts for proceeds of the motor vehicle taxes that are collected by the county on behalf of the municipalities within the county.
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GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Account Group accounts for general fixed assets.
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OTHER SCHEDULES
*Schedule of Ad Valorem Taxes Receivable
*Analysis of Current Tax Levy
*Schedule of Ten Largest Taxpayers
STATISTICAL SECTION
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