2020-COH - Comprehensive Annual Financial Report

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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 Total revenues increased by $68.0 million from the prior year, which was mostly due to property taxes increasing by approximately $17.5 million. Most notably, there were increases in the value of net taxable buildings of $1.0 billion, with the largest increase occurring in the residential class of $832 million. Second, there was an increase of $23.0 million from the prior year in revenues from the general excise tax surcharge. The surcharge was in effect for 12 months in the current fiscal year as compared to only 6 months in the prior year and the rate also doubled in the last 6 months of the current fiscal year from 0.25% to 0.50%. With a 13.0 percent ($68.0 million) increase in revenues that was offset by a 6.0 percen t($33.2 million) increase in expenses, the County experienced an increase in net position of$23.0 million, which represented a 296.1% ($34.8 million) increase over the prior year's decrease in net position. The County's net investment in capital assets increased by $25.5 million from the prior year, which represented a 2.9 percent increase. New and continued construction projects in the areas of highways and streets and sanitation accounted for the majority of the increase. 5