COM 0162.000 2022-2024 - Laserfiche WebLink

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Budgetary Control The County maintains budgetary controls to ensure that legal provisions of the annual budget are complied with and that those expenditures do not exceed budgeted amounts. Activities of the general fund and special revenue funds are included in the annual appropriated operating budget. Project-length financial plans are adopted for the capital projects fund. Budgetary control is established at the department level. Formal budgetary integration is employed as a management control device for the general fund, special revenue funds, and the capital projects fund. Budgetary control for the debt service fund is achieved through general obligation bond indenture provisions. The basis of accounting used for the budgets of the general and special revenue funds differs from generally accepted accounting principles. Intergovernmental revenues are recognized when awarded by the granting agency, encumbrances and unexpended allotments are treated as expenditures for purposes of determining legal compliance with the annual budget, all leases are treated as operating leases, and accounts payable are not accrued. The County also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbrances outstanding at fiscal year end are included in the various fund balance categories based on whether the resources are restricted, committed or assigned and do not constitute expenditures or liabilities because they will be honored during the following year. As demonstrated by the statements and schedules included in the financial section of this report, the County continues to meet its responsibility for sound financial management. Significant Accounting Policies The County has implemented Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity (GASB Statement No. 14), Statement No. 39,Determining Whether Certain Organizations Are Component Units (GASB Statement No. 39) and Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and 34 (GASB Statement No. 61). All organizations, activities or functions that meet the criteria in GASB Statement No. 14, No. 39 and No. 61 for inclusion in the reporting entity are included in the County's basic financial statements. For further discussion on other significant accounting policies, refer to the notes to the basic financial statements. Financial Highlights In fiscal year 2022, overall expenses from governmental activities decreased by $100.5 million (15%) from the previous year, which was a result of the County experiencing a$41.3 million decrease in expenses related to net pension liability due to the large positive return on investments experienced by the State's retirement plan. In the prior fiscal year, the County incurred approximately $77.1 million of expenditures while responding to the additional needs caused by the COVID-19 pandemic. $77.0 million was funded by the Coronavirus Aid, Relief, and Economic Security Act(CARES Act), which the County received from the State's allocation of federal funds and was in addition to the many other various federal grants received by the County. - 5 -