Bladen County North Carolina

 
BLADEN COUNTY, NORTH CAROLINA FINANCIAL STATEMENTS June 30, 2021 BLADEN COUNTY, NORTH CAROLINA FINANCIAL STATEMENTS June 30, 2021 COUNTY MANAGER Greg Martin BOARD OF COUNTY COMMISSIONERS Ray Britt- Chairperson Dr. Danny Ellis Cameron McGill Mark Gillespie Arthur A. Bullock Rodney Hester G. Michael Cogdell Dr. Ophelia Munn-Goins Charles Ray Peterson COUNTY OFFICIALS Lisa Coleman Finance Officer Johnson Law Firm County Attorney BLADEN COUNTY, NORTH CAROLINA TABLE OF CONTENTS June 30, 2021 ExhibitPage 1 2 3 4 5 6 7 8 9 10 FINANCIAL SECTION Independent Auditor's Report Management’s Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Reconcilation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund Statement of Fund Net Position – Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds Statement of Cash Flows – Proprietary Funds Statement of Fiduciary Net Position – Fiduciary Funds Statement of Fiduciary Net Position - Fiduciary Funds Notes to the Financial Statements Required Supplemental Financial Data: Schedule of Changes in Total Pension Liability - Law Enforcement Officers' Special Separation Allowance Schedule of Total Pension Liability as a Percentage of Covered Payroll - Law Enforcement Officers' Special Separation Allowance Schedule of County's Proportionate Share of Net Pension Liability (Asset) - Local Government Employees' Retirement System Schedule of County's Contributions - Local Government Employees' Retirement System Schedule of County's Proportionate Share of Net Pension Liability (Asset) - Register of Deeds' Supplemental Pension 1-2 3-8 9 10 11 12 13 14 15 16-17 18 19-20 21 22 23-56 57 58 59 60 61Schedule of County's Contributions - Register of Deeds' Supplemental Pension62 Liability - Retiree Health Benefit Board63 Schedule of County's Contributions - Retiree Health Benefit Board64 Combining and Individual Fund Statements and Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balances - General Fund - Budget and Actual65-75 Schedule of Revenues, Expenditures and Changes in Fund Balances - Revaluation Fund - Budget and Actual76 Schedule of Revenues, Expenditures and Changes in Fund Balances - Disaster Recovery Projects Fund - Budget and Actual77 Schedule of Revenues, Expenditures and Changes in Fund Balances - American Rescue Plan Fund78 Schedule of Revenues, Expenditures and Changes in Fund Balances - School Capital Project Fund79 Combining Balance Sheet – Nonmajor Governmental Funds80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds81 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire District Funds (All Fire Districts)82-100 Emergency Telephone System Fund101 Representative Payee Fund102 Fines and Forfeitures103 Single Family Rehab Grant Projects104 Lock and Dam - Capital Project105 Bladen County Hospital Rental Fund106 Solid Waste Fund107-108 Water Fund109-110 Water District Fund111-112 Water District Capital Project Fund113 Combining Statement of Fiduciary Net Position – Custodial Funds114 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds115 Other Schedules Schedule of Ad Valorem Taxes Receivable116 Analysis of Current Tax Levy – County-Wide Levy117 Secondary Market Disclosures118 Ten Largest Taxpayers119 Schedule of County's Proportionate Share of Net OPEB COMPLIANCE SECTION Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; With OMB Uniform Guidance and the State Single Audit Implementation Act Report On Compliance For Each Major State Program; Report on Internal Control Over Compliance; In accordance with OMB Uniform Guidance; and the State Single Audit Implementation Act Schedule of Findings and Questioned Costs Corrective Action Plan Summary Schedule of Prior Year Audit Findings Schedule of Expenditures of Federal and State Awards Notes to the Schedule of Expenditures of Federal and State Awards 120-121 122-123 124-125 126-129 130 131 132-137 137Financial SectionThompson, Price, Scott, Adams & Co., P.A. Post Office Box 1690 Elizabethtown, North Carolina 28337 Telephone (910) 862-8129 Fax (910) 862-8120 Independent Auditor’s Report To the Board of County Commissioners Bladen County, North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Bladen County, North Carolina, as of and for the year then ended June 30, 2021, and the related notes to the financial statements, which collectively comprise Bladen County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of Bladen County, North Carolina as of June 30, 2021, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Members American Institute of CPAs – N.C. Association of CPAs – AICPA Division of Firms 1Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (pages 3 through 8) and the Law Enforcement Officers’ Special Separation Allowance schedules of the Changes in Total Pension Liability and Total Pension Liability as a Percentage of Covered Payroll (pages 57-58), the Local Government Employees’ Retirement System Schedules of the County’s Proportionate Share of Net Pension Liability and County Contributions (pages 59-60), and the Register of Deeds’ Supplemental Pension Fund Schedule of the County’s Proportionate Share of the Net Pension (Asset) and County Contributions (pages 61-62), the County’s Proportionate Share of the OPEB liabilities and County Contributions (pages 64-65) 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 management’s 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 any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of Bladen County, North Carolina. The combining and individual fund statements, budgetary schedules, other schedules as well as the accompanying Schedule of Expenditures of Federal and State Awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 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, budgetary schedules, other schedules and the Schedule of Expenditures of Federal and State Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us. In our opinion, based on our audit, the procedures performed as described above, the combining and individual fund financial statements, budgetary schedules, other schedules, and the Schedule of Expenditures of Federal and State Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 11, 2022 on our consideration of Bladen County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of the 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Bladen County’s internal control over financial reporting and compliance. Thompson, Price, Scott, Adams & Co., PA Elizabethtown, North Carolina February 11, 2022 2 Management’s Discussion and Analysis For the Year Ended June 30, 2021 As management of Bladen County, North Carolina, we offer readers of Bladen County’s financial statements this narrative overview and analysis of the financial activities of Bladen County for the fiscal year ended June 30, 2021. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the County’s financial statements, which follow this narrative. Financial Highlights  The assets and deferred outflows of resources of Bladen County exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $25,882,294 (net position).  The County’s total net position increased by $7,077,121, primarily due to conservative budget practices throughout the governmental activities.  As of the close of the current fiscal year, Bladen County’s general fund reported ending fund balance of $36,003,786, an increase of $5,086,030. Approximately 21 percent of this total amount, or $8,542,893, is restricted or nonspendable.  At the end of the current fiscal year, unassigned fund balance for the General Fund was $22,666,014, or 50 percent of total general fund expenditures for the fiscal year. This amount is higher than the Local Government Commission’s minimum of 8%.  Bladen County’s total debt decreased by $2,359,722 during this fiscal year. During the year the County made all scheduled debt service payments.  Moodys’ Investors Service has given Bladen County an “Aa3” bond rating.  During the fiscal year, the County implemented GASB Statement No. 84, Fiduciary Activities. The implementation of this standard resulted in the creation of a new Fines and Forfeitures Special Revenue Funds. The fines and forfeiture activity were previously accounted for in a fiduciary agency fund. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Bladen County’s basic financial statements. The County’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the County through the use of governmentwide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of Bladen County. Required Components of Annual Financial Report Figure 1 Summary Detail Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Fund Financial Statements Notes to the Financial Statements 3Basic Financial Statements The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide Financial Statements. They provide both short and long-term information about the County’s financial status. The next statements (Exhibits 3 through 9) are Fund Financial Statements. These statements focus on the activities of the individual parts of the County’s 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 fund statements. The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the County’s nonmajor governmental funds, all of which are added together in one column in the basic financial statements. Budgetary information required by the General Statutes also can be found in this part of the statements. Following the notes is the required supplemental information. This section contains funding information about the County’s pension plans. Government-wide Financial Statements The government-wide financial statements are designed to provide the reader with a broad overview of the County’s 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 position and how it has changed. Net position is the difference between the County’s total assets and deferred outflows of resources and total liabilities and total deferred inflows of resources. Measuring net position is one way to gauge the County’s financial condition. The government-wide statements are divided into two categories: 1) governmental activities; and 2) business-type activities. The governmental activities include most of the County’s basic services such as public safety, parks and recreation, and general administration. Property taxes and state and federal grant fund finance most of these activities. The business-type activities are those that the County charges customers to provide services. These include the water, landfill and hospital real estate services offered by Bladen County. Bladen County Hospital is a public hospital operated apart from the County, but not legally separated. The County appoints the board of trustees for the hospital and has issued debt on its behalf. The government-wide financial statements are on Exhibit 1 and 2 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. Bladen County, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance-related legal requirements, such as the General Statutes or the County’s budget ordinance. All of the funds of Bladen County can be divided into three categories: governmental funds, proprietary funds and 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 County’s 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 County’s programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a reconciliation that is part of the fund financial statements. Bladen 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 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 – Bladen County has one kind of proprietary fund. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Bladen County uses enterprise funds to account for its hospital, water and solid waste operations. These funds are the same as those separate activities shown in the business-type activities in the Statement of Net Position and the Statement of Activities. 4Fiduciary Funds – Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Bladen County has five fiduciary funds, one of which is a cafeteria benefits fund and four of which are custodial 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 start on page 23 of this report. Other Information – In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning Bladen County’s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found beginning after the notes to the financial statements. Interdependence with Other Entities: The County depends on financial resources flowing from, or associated with, both the Federal Government and the State of North Carolina. Because of this dependency, the County is subject to changes in specific flows of intergovernmental revenues based on modifications to Federal and State laws and Federal and State appropriations. Government-Wide Financial Analysis As noted earlier, net position may serve over time as one useful indicator of a government’s financial condition. Bladen County’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $25,882,294 as of June 30, 2021. The County’s net position increased by $7,077,121 for the fiscal year ended June 30, 2021. One of the largest portions $13,875,375 (54%) reflects the County’s net investment in capital assets (e.g. land, buildings, machinery and equipment). Bladen County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Bladen County’s net investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities. An additional portion of Bladen County’s net position $15,481,591 (60%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $(3,474,672) (-14%) is unrestricted. Bladen County’s Net Position Figure 2 Governmental ActivitiesBusiness-Type ActivitiesTotal 202120202021202020212020 Assets Current and Other Assets$49,197,257 $41,160,393 $5,298,493 $9,062,009 $54,495,750 $50,222,402 Capital Assets, Net of Depreciation28,158,047 28,304,823 27,061,221 23,333,773 55,219,268 51,638,596 Total Assets77,355,304 69,465,216 32,359,714 32,395,782 109,715,018 101,860,998 Deferred Outflows of Resources9,870,704 10,381,942 444,565 490,878 10,315,269 10,872,820 Liabilities Long-term Debt Outstanding28,043,139 27,123,312 20,393,072 21,113,650 48,436,211 48,236,962 Other Liabilities31,037,160 33,087,176 2,496,306 2,310,747 33,533,466 35,397,923 Total liabilities59,080,299 60,210,488 22,889,378 23,424,397 81,969,677 83,634,885 Deferred Inflows of Resources11,703,702 10,078,146 474,614 412,876 12,178,316 10,491,022 Net Position Net Invesment in Capital Assets7,789,350 7,108,747 6,086,025 6,663,093 13,875,375 13,771,840 Restricted15,037,977 11,927,300 443,614 419,014 15,481,591 12,346,314 Unrestricted(Deficit)(6,385,320) (9,477,523) 2,910,648 1,967,280 (3,474,672) (7,510,243) Total Net Position$16,442,007 $9,558,524 $9,440,287 $9,049,387 $25,882,294 $18,607,911 Several particular aspects of the County’s financial operations positively influenced the total unrestricted governmental net position:   Continued diligence in the collection of property taxes by maintaining a collection percentage of 96.49%, and motor vehicles rate of 100.00%, for a combined total of 96.86%. Continued low cost of debt due to the County’s high bond rating. 5Bladen County’s Changes in Net Position Figure 3 Governmental ActivitiesBusiness-Type ActivitiesTotal 202120202021202020212020 Revenues Program Revenues Charges for Services$9,347,475 $7,545,840 $5,398,198 $4,545,983 $14,745,673 $12,091,823 Operating Grant & Contributions10,611,580 9,853,618 42,250 54,696 10,653,830 9,908,314 Capital Grants & Contributions807,941 646,130 - - 807,941 646,130 General Revenue Property Taxes26,902,912 26,161,409 - - 26,902,912 26,161,409 Other Taxes7,960,278 6,908,950 - - 7,960,278 6,908,950 Investment Earnings21,191 430,928 1,152 46,273 22,343 477,201 Other661,488 1,268,156 - - 661,488 1,268,156 Total Revenues56,312,865 52,815,031 5,441,600 4,646,952 61,754,465 57,461,983 Expenses General Government6,279,265 6,246,412 - - 6,279,265 6,246,412 Public Safety15,617,078 16,218,171 - - 15,617,078 16,218,171 Economic & Physical Developmen5,216,852 3,566,470 - - 5,216,852 3,566,470 Human Services11,127,744 11,245,875 - - 11,127,744 11,245,875 Cultural and Recreational1,472,486 1,541,690 - - 1,472,486 1,541,690 Education9,082,441 9,730,266 - - 9,082,441 9,730,266 Interest on Long-Term Debt830,778 847,298 - - 830,778 847,298 Hospital- - - 465 - 465 Solid Waste- - 2,655,178 2,684,674 2,655,178 2,684,674 Water District- - 2,395,522 2,346,767 2,395,522 2,346,767 Total Expenses49,626,644 49,396,182 5,050,700 5,031,906 54,677,344 54,428,088 Increase(decrease) in Net Position Before Special Item6,686,221 3,418,849 390,900 (384,954) 7,077,121 3,033,895 Transfers- (25,224) - 25,224 - - Increase(Decrease) in Net Position6,686,221 3,393,625 390,900 (359,730) 7,077,121 3,033,895 Net Position - Beginning9,755,786 6,164,899 9,049,387 9,407,117 18,805,173 15,572,016 Net Position - Ending$16,442,007 $9,558,524 $9,440,287 $9,047,387 $25,882,294 $18,605,911 Governmental activities. Governmental activities increased the County’s net position by $6,686,221, thereby accounting for 95% of the total growth in the net position for the County. Key elements of this increase are as follows:    The County’s continued efforts to reduce cost while still maintaining all services to the community. Increase in ad valorem tax base and collection of the assessed tax revenue. Recognized expenses related to actuarially determined OPEB expenses. Business-type activities. Business-type activities assets increased the County’s net position by $390,900. Key elements of this increase are as follows:   The Water District funds’ revenues increased while expenditures remained constant. Recognized expenses related to actuarially determined OPEB expenses. Financial Analysis of the County’s Funds As noted earlier, Bladen County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of Bladen County’s governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing Bladen County’s financing requirements. Specifically, fund balance available for appropriation can be a useful measure of a government’s net resources available for spending at the end of the fiscal year. 6The General Fund is the chief operating fund of Bladen County. At the end of the current fiscal year, unassigned fund balance of the General Fund was $22,666,014, while total fund balance reached $36,003,786. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 50 percent of total General Fund expenditures, while total fund balance represents 80 percent of that same amount. At June 30, 2021, the governmental funds of Bladen County reported a combined fund balance of $41,059,608. The primary reason for the fund balance increase in the general fund was the increase in property taxes from the increase ad valorem tax values after revaluation and the unspent loan proceeds for the prison construction project. General Fund Budgetary Highlights. During the fiscal year, the County revised the budget on several occasions. Generally, budget amendments fall into one of 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. Proprietary Fund. Bladen County’s proprietary funds provide the same type of information found in the government-wide statements but in more detail. Unrestricted net position of Hospital Rental Fund at the end of their fiscal year amounted to $0, and those of the Landfill Fund at the end of the fiscal year amounted to $1,045,176 and those for the Water District equaled $2,309,032. The Water Fund is reported in the fund financial section for budgetary compliance, but is eliminated in the government wide statements. Other factors concerning the finances of these three funds have already been addressed in the discussion of Bladen County’s business-type activities. Capital Asset and Debt Administration Capital Assets. Bladen County’s capital assets for its governmental and business-type activities as of June 30, 2021, totals $55,219,268 (net of accumulated depreciation). These assets include buildings, land, machinery and equipment, park facilities, and vehicles. Major capital asset transactions during the year include:  Equipment and vehicles purchased in the government activities. Bladen County’s Capital Assets (net of depreciation) Figure 4 Governmental ActivitiesBusiness-Type ActivitiesTotal 202120202021202020212020 Land$373,250 $383,550 $981,481 $981,481 $1,354,731 $1,365,031 Buildings22,064,826 22,968,774 20,642,821 21,262,563 42,707,647 44,231,337 Improvements1,616,340 1,960,911 - - 1,616,340 1,960,911 Equipment2,305,157 1,421,011 313,382 376,337 2,618,539 1,797,348 Vehicles and Motor Equipment1,588,249 1,570,577 191,307 291,912 1,779,556 1,862,489 Construction in Progress210,225 - 4,932,230 421,480 5,142,455 421,480 Total$28,158,047 $28,304,823 $27,061,221 $23,333,773 $55,219,268 $51,638,596 Additional information on the County’s capital assets can be found beginning on page 34 of this audited financial report. Long-term Debt. As of June 30, 2021, Bladen County had total debt outstanding of $41,408,663 all of which is debt backed by the full faith and credit of the County. Bladen County’s Outstanding Debt Figure 5 Governmental ActivitiesBusiness-Type ActivitiesTotal 202120202021202020212020 General Obligation Bonds$609,480 $1,621,060 $- $- $609,480 $1,621,060 Limited Obligation Bonds- - 6,350,000 6,685,000 6,350,000 6,685,000 Revenue Bonds- - 13,827,654 14,076,063 13,827,654 14,076,063 Installment Purchases19,759,217 20,485,016 862,312 901,246 20,621,529 21,386,262 Total$20,368,697 $22,106,076 $21,039,966 $21,662,309 $41,408,663 $43,768,385 Bladen County’s total debt decreased by $2,359,722 (5 percent) during the past fiscal year, primarily due to the payments made. All scheduled debt payments were made. 7As mentioned in the financial highlights section of this document, Moodys’ Investors Service has given Bladen County a “Aa3” bond rating. This bond rating is a clear indication of the sound financial condition of Bladen County. The State of North Carolina limits the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries. The legal debt margin for Bladen County is $226,247,693. Additional information regarding Bladen County’s long-term debt can be found beginning on page 49 of this audited financial report. Economic Factors and Next Year’s Budgets and Rates The following key economic indicator reflects the growth and prosperity of the County.  The County has an unemployment rate of 5.7%, close to the state average of 5.5%. Impact of Coronavirus on the County During the fiscal year, the state and the nation were affected by the spread of a coronavirus. The Bladen County’s response to the coronavirus included …. Budget Highlights for the Fiscal Year Ending June 30, 2022 Governmental Activities: The total operating budget for Bladen County is $57.4 million. The General Fund budget for fiscal year 2022 was $43.2 million. This is an increase of 2.4% from the fiscal year 2020 amended General Fund budget and is largely due to an increase in debt service related to a new law enforcement and detention center. The tax rate for fiscal year 2022 remains at 82 cents per $100 of property value. • Funding for core services – Education, Public Safety, and Human Services – is maintained in the fiscal year 2022 budget, with a significant increase in Public Safety. The fiscal year 2022 budget includes a fund balance appropriation a total of $4 million including General Fund. Fund balance appropriation is one of the available means to lower the burden on property tax owners. The County appropriates fund balance each year largely for capital items such as replacement building roof, renovations, and vehicles. Business-type Activities: The water rates in the County will remain at the same base rate as 2021. General operating expenses will remain the same as 2021. Rates for landfill services will increase less than 20% to cover increased cost of services. Requests for Information This report is designed to provide an overview of the County’s finances for those with an interest in this area. Questions concerning any of the information found in this report or request for additional information should be directed to: Bladen County Finance PO Box 965 166 Courthouse Drive Elizabethtown, NC 28337 finance@bladenco.org 8Basic Financial StatementsExhibit 1 Bladen County, North Carolina Statement of Net Position June 30, 2021 GovernmentalBusiness-Type ActivitiesActivitiesTotal Assets Cash & Cash Equivalents$34,363,188 $3,780,145 $38,143,333 Restricted Cash and Cash Equivalents5,380,509 303,804 5,684,313 Accounts Receivable (Net)9,404,401 1,214,544 10,618,945 Pension Asset49,159 - 49,159 Capital Assets: Land, Improvements, and Construction in Progress583,475 5,913,711 6,497,186 Other Capital Assets, net of Depreciation27,574,572 21,147,510 48,722,082 Total Capital Assets28,158,047 27,061,221 55,219,268 Total Assets77,355,304 32,359,714 109,715,018 Deferred Outflows of Resources9,870,704 444,565 10,315,269 Liabilities Accounts Payable and Accrued Liabilities3,295,625 340,467 3,636,092 ARPA Funds3,178,202 - 3,178,202 Current Portion of Long-term Liabilities943,034 709,889 1,652,923 Payable from Restricted Assets: Customer Deposits- 238,980 238,980 Long-term Liabilities: Net Pension Liability7,165,606 298,566 7,464,172 Total Pension Liability1,818,615 - 1,818,615 Net OPEB Liability21,801,684 908,404 22,710,088 Due in More Than One Year20,877,533 20,393,072 41,270,605 Total liabilities59,080,299 22,889,378 81,969,677 Deferred Inflows of Resources11,703,702 474,614 12,178,316 Net Position Net Investment in Capital Assets7,789,350 6,086,025 13,875,375 Restricted for: Stabilization by State Statute9,225,585 - 9,225,585 Human Services257,035 - 257,035 Education343,825 - 343,825 4-H Programs170,754 - 170,754 Public Safety4,377,878 - 4,377,878 Economic Development- - - Unspent Loan Proceeds- 54 54 Cultural and Recreational480,166 - 480,166 Debt Reserve182,734 443,560 626,294 Unrestricted(Deficit)(6,385,320) 2,910,648 (3,474,672) Total Net Position$16,442,007 $9,440,287 $25,882,294 The notes to the financial statements are an integral part of this statement. 9Exhibit 2 Program RevenuesNet (Expense) Revenue and Changes in Net Position Operating GrantsCapital GrantsBusiness Charges forandandGovernmentalType Functions/ProgramsExpensesServiceContributionsContributionsActivitiesActivitiesTotal Primary Government: Governmental Activities: General Government$6,279,265 $1,361,720 $649,646 $- $(4,267,899) $- $(4,267,899) Public Safety15,617,078 7,083,817 233,634 235,048 (8,064,579) - (8,064,579) Economic and Physical Development5,216,852 42,764 1,537,701 - (3,636,387) - (3,636,387) Human Services11,127,744 701,627 8,152,878 - (2,273,239) - (2,273,239) Cultural and Recreational1,472,486 55,967 37,721 259,812 (1,118,986) - (1,118,986) Education9,082,441 101,580 - 313,081 (8,667,780) - (8,667,780) Interest on Long-Term Debt830,778 - - - (830,778) - (830,778) Total Governmental Activities49,626,644 9,347,475 10,611,580 807,941 (28,859,648) - (28,859,648) Business-Type Activities: Hospital Rental Fund- - - - - - - Solid Waste2,655,178 2,713,492 42,250 - - 100,564 100,564 Water District2,395,522 2,684,706 - - - 289,184 289,184 Total Business-Type Activities5,050,700 5,398,198 42,250 - - 389,748 389,748 Total Primary Government$54,677,344 $14,745,673 $10,653,830 $807,941 (28,859,648) 389,748 (28,469,900) General Revenues: Taxes: Property taxes, levied for general purpose26,902,912 - 26,902,912 Local option sales tax7,960,278 - 7,960,278 Interest income, unrestricted21,191 1,152 22,343 Miscellaneous, unrestricted661,488 - 661,488 Total general revenues35,545,869 1,152 35,547,021 Change in net position6,686,221 390,900 7,077,121 9,558,524 9,049,387 18,607,911 Restatement197,262 - 197,262 Net Postion - beginning9,755,786 9,049,387 18,805,173 Net Position - ending$16,442,007 $9,440,287 $25,882,294 Net Position - beginning Bladen County, North Carolina Statement of Activities For the Year Ended June 30, 2021 The notes to the financial statements are an integral part of this statement. 10Exhibit 3Bladen County, North Carolina Balance Sheet Governmental Funds June 30, 2021 DisasterAmericanSchoolTotalTotal GeneralRecoveryRescueCapitalNon-MajorGovernmental FundProjects FundPlan FundProjects FundFundsFunds Assets Cash & Investments$30,015,226 $71,248 $- $- $4,093,980 $34,180,454 Restricted Cash1,440,292 - 3,178,202 - 944,749 5,563,243 Due from Other Funds1,452,196 - - - - 1,452,196 Taxes Receivables (Net)1,285,584 - - - 95,073 1,380,657 Accounts Receivable (Net)5,941,528 1,573,698 - - 258,163 7,773,389 Total Assets$40,134,826 $1,644,946 $3,178,202 $- $5,391,965 $50,349,939 Liabilities and Fund Balances Liabilities: Accounts Payable and Accrued Liabilities$2,720,117 $107,216 $- $210,225 $116,379 $3,153,937 Prepaid Revenue- - 3,178,202 - - 3,178,202 Due to Other Funds- 1,452,196 - - - 1,452,196 Total liabilities2,720,117 1,559,412 3,178,202 210,225 116,379 7,784,335 Deferred Inflows of Resources Deferred Taxes1,285,584 - - - 95,073 1,380,657 Prepaid Taxes125,339 - - - - 125,339 Total Deferred Inflows of Resources1,410,923 - - - 95,073 1,505,996 Fund balances: Restricted Stabilization by State Statute7,393,724 1,573,698 - - 258,163 9,225,585 Public Safety134,037 - - - 277,110 411,147 4-H and Extension Services170,754 - - - - 170,754 Education554,050 - - (210,225) - 343,825 Fire Protection- - - - 3,966,731 3,966,731 Debt Reserve182,734 - - - - 182,734 Cultural and Recreational388 - - - 479,778 480,166 Health and Human Services107,206 - - 149,829 257,035 Committed Tax Revaluation291,123 - - - - 291,123 Economic Development419,782 - - - - 419,782 Board Committed63,002 - - - - 63,002 Assigned Board Assigned1,317,763 - - - - 1,317,763 Subsequent Year's Expenditures2,703,209 - - - 122,448 2,825,657 Unassigned22,666,014 (1,488,164) - - (73,546) 21,104,304 Total Fund Balances36,003,786 85,534 - (210,225) 5,180,513 41,059,608 $40,134,826 $1,644,946 $3,178,202 $- $5,391,965 $50,349,939 Total Liabilites, Deferred Inflows of Resources and Fund Balances Major Funds The notes to the financial statements are an integral part of this statement. 11Exhibit 3, continued Bladen County, North Carolina Balance Sheet Governmental Funds June 30, 2021 Amounts reported for governmental activities in the statement of net position (Exhibit 1) are different because: Total Fund Balances - Governmental Funds$41,059,608 Capital Assets used in governmental activities are not financial resources and therefore are not reported in the funds28,158,047 Other long-term assets are not available to pay for current-period expenditures and therefore are unavailable in the funds.250,355 Net pension asset.49,159 Benefit payments and pension administration cost for LEOSSA are deferred outflows of resources on the Statement of Net Position58,126 Contributions to pension plans in the current fiscal year are deferred outflows of resources on the Statement of Net Position.1,522,660 Contributions and administration costs to OPEB plans in the current fiscal year are deferred outflows of resources on the Statement of Net Position.978,786 Deferred inflows of resources for taxes receivable.1,380,657 OPEB deferrals.(7,088,354) Pension deferrals.2,821,123 Some liabilities, including bonds payable and benefit plans, are not due and payable in the current period and therefore are not reported in the funds.(52,748,160) Net position of governmental activities$16,442,007 The notes to the financial statements are an integral part of this statement. 12Exhibit 4Bladen County, North Carolina Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2021 DisasterAmericanSchoolTotalTotal GeneralRecoveryRescueCapitalNon-Major Governmental FundProjects FundPlan FundProjects FundFundsFunds Revenues: Ad Valorem Taxes$25,646,727 $- $- $- $1,584,975 $27,231,702 Local Option Sales Taxes7,556,869 - - - 403,409 7,960,278 Other Taxes and Licenses199,657 - - - 277,857 477,514 Restricted Intergovernmental Revenues7,143,125 3,426,520 - - 645,993 11,215,638 Permits and Fees464,580 - - - - 464,580 Sales and Services8,247,872 - - - - 8,247,872 Investment Earnings19,535 - - - 1,656 21,191 Other640,729 - - - 280,572 921,301 Total Revenues 49,919,094 3,426,520 - - 3,194,462 56,540,076 Expenditures: Current: General Government6,413,795 - - - - 6,413,795 Public Safety13,645,691 - - - 1,690,752 15,336,443 Economic and Physical Development1,707,485 3,512,176 - - 6,075 5,225,736 Human Services10,739,682 - - - 409,237 11,148,919 Cultural and Recreational912,984 - - - 331,717 1,244,701 Education8,835,848 - - 210,225 145,013 9,191,086 Debt Service Principal Retirement2,136,214 - - - - 2,136,214 Interest and Fees840,200 - - - - 840,200 Total Expenditures45,231,899 3,512,176 - 210,225 2,582,794 51,537,094 Excess (Deficiency) of Revenues Over (Under) Expenditures4,687,195 (85,656) - (210,225) 611,668 5,002,982 Other Financing Sources (Uses): Issuance of Installment Purchases398,835 - - - - 398,835 Total Other Financing Sources (Uses)398,835 - - - - 398,835 Net Change in Fund Balance5,086,030 (85,656) - (210,225) 611,668 5,401,817 Fund Balance, Beginning as Previously Reported30,915,689 83,571 - - 4,461,269 35,460,529 Prior Period Restatement 2,067 87,619 - - 107,576 197,262 Fund Balance, Restated30,917,756 171,190 - - 4,568,845 35,657,791 Fund Balance, Ending$36,003,786 $85,534 $- $(210,225) $5,180,513 $41,059,608 Major Funds The notes to the financial statements are an integral part of this statement. 13Bladen County, North Carolina Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended June 30, 2021 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Contributions to pension plans in the current fiscal year are not included on the Statement of Activities. Benefit payments and pension administration cost for LEOSSA are deferred outflows of resources on the Statement of Net Position Contributions and pension administration costs for OPEB are deferred outflows of resources on the Statement of Net Position. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Total changes in net position of governmental activities. $ $6,686,221 Exhibit 4, continued 5,401,817 (146,776) 1,522,660 58,126 978,786 (332,769) 1,737,379 (2,533,002) 14 The notes to the financial statements are an integral part of this statement.Exhibit 5Bladen County, North Carolina Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund For the Year Ended June 30, 2021 Variance With OriginalFinalFinal BudgetBudgetActualPositive/(Negative) Revenues: Ad Valorem Taxes$23,546,306 $23,546,306 $25,646,727 $2,100,421 Local Option Sales Taxes4,872,680 5,956,840 7,556,869 1,600,029 Other Taxes and Licenses85,500 150,750 199,657 48,907 Restricted Intergovernmental Revenues7,354,530 8,242,873 7,143,125 (1,099,748) Permits and Fees239,400 331,323 464,580 133,257 Sales and Services5,805,387 7,305,102 8,247,872 942,770 Investment Earnings100,000 15,000 19,444 4,444 Other212,454 543,983 640,729 96,746 Total Revenues42,216,257 46,092,177 49,919,003 3,826,826 Expenditures: Current: General Government6,396,787 7,431,175 6,107,578 1,323,597 Public Safety12,993,675 14,410,717 13,645,691 765,026 Economic and Physical Development1,358,091 1,776,192 1,707,485 68,707 Human Services11,933,154 12,412,674 10,739,682 1,672,992 Cultural and Recreational957,415 965,539 912,984 52,555 Education9,021,019 9,644,207 8,835,848 808,359 Debt Service2,317,811 2,989,311 2,976,414 12,897 Total Expenditures44,977,952 49,629,815 44,925,682 4,704,133 Revenues Over (Under) Expenditures(2,761,695) (3,537,638) 4,993,321 8,530,959 Other Financing Sources (Uses): Transfers to Other Funds(50,000) (50,000) (50,000) - Total Other Financing Sources (Uses)348,835 348,835 348,835 - Revenues and Other Sources Over (Under) Expenditures and Other Uses(2,412,860) (3,188,803) 5,342,156 8,530,959 Fund Balance Appropriated / (Designated)2,412,860 3,188,803 - (3,188,803) Net Change in Fund Balance$- $- 5,342,156 $5,342,156 Fund Balance, Beginning as Previously Reported30,368,438 Prior Period Restatement 2,067 Fund Balance, Restated30,370,505 Fund Balance, Ending$35,712,661 Interest Income91 Transfer-in from General Fund50,000 Expenditures(306,217) Fund Balance, Beginning547,251 Fund Balance, Ending (Exhibit 4)$36,003,786 A legally budgeted Tax Revaluation Fund is consolidated into the General Fund for reporting puposes: The notes to the financial statements are an integral part of this statement. 15Exhibit 6 HospitalSolid RentalWasteWater FundFundDistrictTotal Assets Current Assets: Cash and Investments$- $1,215,042 $2,565,103 $3,780,145 Taxes Receivable- 470,232 - 470,232 Accounts Receivable (Net)- 112,247 632,065 744,312 Total Current Assets- 1,797,521 3,197,168 4,994,689 Noncurrent assets: Restricted Assets Cash54 - 303,750 303,804 Land, Improvements, and Construction in Progress140,188 386,438 5,387,085 5,913,711 Other Capital Assets, Net of Depreciation- 1,089,424 20,058,086 21,147,510 Total Noncurrent Assets140,242 1,475,862 25,748,921 27,365,025 Total Assets140,242 3,273,383 28,946,089 32,359,714 Deferred Outflows of Resources- 189,498 255,067 444,565 Bladen County, North Carolina Statement of Fund Net Position Proprietary Funds June 30, 2021 The notes to the financial statements are an integral part of this statement. 16Exhibit 6 HospitalSolid RentalWasteWater FundFundDistrictTotal Liabilities Current Liabilities: Accounts Payable & Accrued Expenses$- $69,506 $220,377 $289,883 Accrued Interest- - 50,584 50,584 Compensated Absences Payable- 14,554 10,681 25,235 Bond\Long-term Debt Current Maturities- - 684,654 684,654 Total Current Liabilities- 84,060 966,296 1,050,356 Noncurrent Liabilities: Liabilities Payable from Rest Assets: Customer Deposits- - 238,980 238,980 Compensated Absences Payable- 16,991 20,769 37,760 Net Pension Liability- 149,283 149,283 298,566 Net OPEB Liability- 454,202 454,202 908,404 Long-term Debt - Noncurrent- - 20,355,312 20,355,312 Total Noncurrent Liabilities- 620,476 21,218,546 21,839,022 Total Liabilities- 704,536 22,184,842 22,889,378 Deferred Inflows of Resources- 237,307 237,307 474,614 Net Position: Net Investment in Capital Assets140,188 1,475,862 4,469,975 6,086,025 Restricted, Expendable for Capital Acquisitions54 - - 54 Debt Reserve- - 443,560 443,560 Unrestricted- 1,045,176 1,865,472 2,910,648 Total Net Position$140,242 $2,521,038 $6,779,007 $9,440,287 Bladen County, North Carolina Statement of Fund Net Position Proprietary Funds June 30, 2021 The notes to the financial statements are an integral part of this statement. 17Exhibit 7Bladen County, North Carolina Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For The Fiscal Year Ended June 30, 2021 HospitalSolid RentalWasteWater FundFundDistrictTotal Operating revenues: Charges for Services$- $2,713,492 $2,422,690 $5,136,182 Water Taps- - 67,550 67,550 Other Operating Revenues- - 194,466 194,466 Total Operating Revenues- 2,713,492 2,684,706 5,398,198 Operating expenses: Salaries and Employee Benefits- 395,942 406,957 802,899 Operating Expenses- 2,096,970 683,104 2,780,074 Depreciation- 162,266 840,325 1,002,591 Total operating expenses- 2,655,178 1,930,386 4,585,564 Total Operating Income (Loss)- 58,314 754,320 812,634 Nonoperating Revenues(Expenses): Interest Earned - 333 819 1,152 Interest Expense- - (465,136) (465,136) Total Nonoperating Revenue (Expenses)- 333 (464,317) (463,984) Income (Loss) Before Contributions and Transfers- 58,647 290,003 348,650 Capital Contribution- 42,250 - 42,250 Change in Net Position- 100,897 290,003 390,900 Net Postion, beginning140,242 2,420,141 6,489,004 9,049,387 Net Position, ending$140,242 $2,521,038 $6,779,007 $9,440,287 The notes to the financial statements are an integral part of this statement. 18Exhibit 8Bladen County, North Carolina Statement of Cash Flows Proprietary Funds For The Fiscal Year Ended June 30, 2021 HospitalSolid RentalWasteWater FundFundDistrictTotal Cash Flows From Operating Activities: Cash Received from Customers$- $2,715,364 $2,259,717 $4,975,081 Cash Paid for Goods and Services- (2,106,191) (496,673) (2,602,864) Cash Paid to Employees for Services- (397,504) (414,062) (811,566) Other Operating Receipts- - 194,466 194,466 Customer Deposits- - 16,505 16,505 Net Cash Provided by (Used for) Operating Activities- 211,669 1,559,953 1,771,622 Cash Flows from Capital and Related Financing Activities: Proceeds from Long Term Debt- - Acquisition and Construction of Capital Assets- (14,586) (4,715,153) (4,729,739) Principal Paid on Bond Maturities and Capital Leases- - (241,934) (241,934) Limited Obligation Bonds- - (335,000) (335,000) Interest Paid on Bond\Note Maturities and Capital Leases- - (500,518) (500,518) Capital Grants and Contributions- #REF!- #REF! Net Cash Provided (Used for) Capital and Related Financing Activities- #REF!(5,792,605) #REF! Cash Flows from Investing Activities: Interest on investments- 333 819 1,152 Net Cash Flows from Investing Activities:- 333 819 1,152 Net Increase (Decrease) in Cash and Cash Equivalents- #REF!(4,231,833) #REF! Cash Balances, Beginning54 901,326 7,100,686 7,859,344 Cash Balances, Ending$54 $#REF!$2,868,853 $#REF! The statement of cash flows for the Hospital Rental Fund is only the activity of the Escrow Account. All other rental income and expenses are paid on behalf of the rental fund under a lease and operations agreements with Cape Fear Valley Health System. The notes to the financial statements are an integral part of this statement. 19Exhibit 8 HospitalSolid RentalWasteWater FundFundDistrictTotal Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Activities: Operating Income (Loss)$- $58,314 $754,320 $812,634 Adjustments to Reconcile Operating Income to Net Cash Provided Operating Activities: Depreciation- 162,266 840,325 1,002,591 Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable, advances Inventories and Prepaids- 1,872 (230,523) (228,651) in Deferred Outflows of Resources: for Pensions- 26,820 26,820 53,640 for OPEB- (10,456) (10,456) (20,912) Increase (Decrease) in Accounts Payable & Accrued Liabilities- (9,221) 186,431 177,210 in Net Pension Liability- 25,081 25,081 50,162 in Net OPEB Liability- (79,400) (79,400) (158,800) in Deferred Inflows of Resources for Pensions- 4,091 4,091 8,182 for OPEB- 26,778 26,778 53,556 in Customer Deposits- - 16,505 16,505 in Accrued Vacation Pay- 5,524 (19) 5,505 Total Adjustments- 153,355 805,633 958,988 Net Cash Provided by Operating Activities$- $211,669 $1,559,953 $1,771,622 Bladen County, North Carolina Statement of Cash Flows Proprietary Funds For The Fiscal Year Ended June 30, 2021 The notes to the financial statements are an integral part of this statement. 20Exhibit 9Bladen County, North Carolina Statement of Fiduciary Net Position Fiduciary Funds June 30, 2021 Custodial Funds Assets: Cash and Cash Equivalents$96,207 Taxes Receivable (Net)3,262 Total Assets99,469 Liabilities and Fund Balances: Liabilities: Accounts Payable and Accrued Liabilities29,304 Total Liabilities29,304 Deferred Inflows Deferred Revenues3,262 Total Deferred Inflows of Resources3,262 Net Position Restricted for: Individuals, Organizations, and Other Governments 66,903 Total Net Position$66,903 The notes to the financial statements are an integral part of this statement. 21Exhibit 10Bladen County, North Carolina Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended June 30, 2021 Custodial Funds Additions: Ad Valorem Taxes for Other Governments$445,377 Collection of Civil Fees3,949 Total Additions820,426 Deductions: Tax Distributions to Other Governments448,639 Disbursement of Civil Fees3,752 Total Deductions830,152 Net Increase (Decrease) in Fiduciary Net Position(9,726) Net Position, Beginning, as Previously Reported- Prior Period Restatement - Change in Accounting Principle76,629 Net Position, Beginning, as Restated76,629 Net Position, Ending$66,903 The notes to the financial statements are an integral part of this statement. 22 BLADEN COUNTY, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2021 NOTE 1: Summary of Significant Accounting Policies The accounting policies of Bladen County, North Carolina (the County) and its component units conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies: A. Reporting Entity The County, which is governed by a nine-member board of commissioners, is one of the 100 counties established in North Carolina under North Carolina General Statute 153A-10. As required by generally accepted accounting principles, these financial statements present the County and its component units, legally separate entities for which the County is financially accountable. Bladen County Water District (the District) exists to provide and maintain a water system for the County residents within the district. The District is reported as an enterprise fund in the County’s financial statements. The blended presentation method presents component units as a department or unit of the County, and offers no separate presentation as with the discrete method. Bladen 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 has no financial transactions or account balances; therefore, it is not presented in the basic financial statements. Reporting Component Unit Method Criteria for Inclusion Separate Financial Statements Bladen County Blended Under State law [NCGS 162A-89], the County's board None issued. Water District of commissioners also serve as the governing board for the District. Bladen County Industrial Discrete The Authority is governed by a seven-member board of None issued. Facility and Pollution Control commissioners that is appointed by the county commissioners. The County can remove any Financing Authority commissioners of the Authority with or without cause. B. Basis of Presentation, Measurement Focus – Basis of Accounting Government-wide Statements: The statement of net position and the statement of activities display information about the primary government’s net position (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the County and for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the County’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds each displayed in a separate column. 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. Nonoperating revenues, such as subsidies, result from non-exchange transactions. Other non-operating items, such as investment earnings, are ancillary activities. 23BLADEN COUNTY, NORTH CAROLINA Notes to the Financial Statements The County reports the following major governmental funds: General Fund – This is the County’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Tax Revaluation Fund is a legally budgeted fund under North Carolina General Statutes; however, for statement presentation in accordance with GASB Statement No. 54 it is consolidated in the General Fund. American Rescue Plan Fund – This fund accounts for the American Rescue Plan distribution until such time the Board of Commissioners approve a spending plan. School Capital Project: This fund accounts for the preliminary and construction phases of the upcoming new school construction. The County reports the following major enterprise funds: Hospital Rental Fund – This fund is used to account for the rent of real estate per the lease agreement between the County and Cape Fear Valley Health Systems (CFVHS). Solid Waste Fund - This fund is used to account for the operations of the County's solid waste disposal activities. Water Fund – This fund was created to record the issuance and subsequent repayment of Limited Obligation Bonds for the purpose of purchasing refunding general obligation bonds issued by the Bladen County Water District. Bladen County Water District - This fund is used to account for the County's water operations. The County reports the following fund types: Custodial Funds - Custodial funds are custodial in nature and do not involve the measurement of operating results. Custodial funds are used to account for assets the County holds on behalf of others. The County maintains the following Custodial Funds: the Municipal Tax Fund, which accounts for funds that are billed and collected by the County for various municipalities and special districts within the County but that are not revenues to the County; the Jail Inmate Fund, which holds cash deposits made to inmates as cash collections for the benefit of inmates from their friends and families; the Sheriff’s Civil Fund, which accounts for bailment and other civil fees collected and remitted accordingly. Nonmajor Funds. The County maintains four legally budgeted funds. The Emergency Telephone System Fund, the Fire District Funds, which combines each individual fund into one presentation, the Representative Payee Fund, the Fines and Forfeitures Fund. The CDBG Single Family Rehab Fund, Disaster Recovery Projects Fund and the Lock and Dam Capital Project Fund are reported as nonmajor capital project funds. 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 government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus, except for the agency funds which have no measurement focus. The government-wide, proprietary fund, and fiduciary fund financial statements are reported using 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. 24BLADEN COUNTY, NORTH CAROLINA Notes to the Financial Statements Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County enterprise funds are charges to customers for sales and services. The County also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the water system. 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 nonoperating 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 general longterm debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general longterm debt and acquisitions under capital leases are reported as other financing sources. 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 for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations of the current year. As of September 1, 2013, 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, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which they are received. Uncollected taxes that were billed in periods prior to September 1, 2013 and for limited registration plates are shown as a receivable in these financial statements and are offset by deferred inflows of resources. Sales taxes and certain intergovernmental revenues, such as the utilities franchise tax, 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 position available to finance the program. It is the County’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. C. Budgetary Data The County's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund, the Tax Revaluation Fund, the Emergency Telephone, Fire Districts, Representative Payee, Fines and Forfeitures Fund and the Enterprise Funds. All annual appropriations lapse at the fiscal year-end. Project ordinances are adopted for the American Rescue Plan Fund, School Capital Project Fund, CDBG Grant Fund, Lock and Dam Capital Project Fund and the Enterprise Capital Projects Funds. The Enterprise Capital Project Funds are consolidated with the enterprise operating funds for reporting purposes. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the functional level for all annually budgeted funds, and at the project level for multi-year funds. The budget officer is authorized to transfer appropriations within a fund under the following conditions: a) He/She may transfer amounts between objects of expenditure within a department without a report being required. b) He/She may transfer amounts between departments of the same fund with an official report on such transfers at the next regular meeting of the Board of Commissioners. c) He/She may transfer amounts between funds and from contingency appropriations within any fund with an official report on such transfers at the next regular meeting of the Board of Commissioners. The governing board must approve all amendments. During the year, several immaterial amendments to the original budget were necessary. 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. 25BLADEN COUNTY, NORTH CAROLINA Notes to the Financial Statements D. Assets, Liabilities, Deferred Inflows and Outflows and Fund Equity Deposits and Investments All deposits of the County and the District are made in board-designated official depositories and are secured as required by G.S. 159-31. The County, the District and Bladen Leasing Corporation may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the County and the District 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 and the District 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' acceptance and the North Carolina Capital Management Trust (NCCMT). 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 In agreements between the County and Cape Fear Valley Health Systems (CFVHS), an escrow account was created to receive rental funds which were restricted to the use of capital improvements to the facilities. CFVHS determines what the expenditures are to be expended with approval from the County. The unexpended bond proceeds of the Water Fund are classified as restricted assets for the enterprise fund because their use is completely restricted to the purpose for which the bonds were originally issued. Cares Act funds are kept until spent in accordance with grant requirements. Customer deposits held by the County before any services are supplied are restricted to the service for which the deposit was collected. Money in the Tax Revaluation Fund is also classified as restricted assets because its use is restricted per North Carolina General Statute 153A-150. Other restricted items are listed for the purpose below. Bladen County Restricted Cash Government Activities General Fund Disaster Recovery Fund Special Revenue Fund $134,037 554,050 170,754 257,035 291,123 388 3,178,202 315,142 479,778 Total Governmental Activities$5,380,509 Business-Type Activities Hospital Rental Fund Water Districts 54 64,770 238,980 Total Business-Type Activities$303,804 $5,684,313 26