REPORT OF THE AUDIT OF THE OLDHAM COUNTY FISCAL COURT

Transcription

1 REPORT OF THE AUDIT OF THE OLDHAM COUNTY FISCAL COURT For The Fiscal Year Ended June 30, 2011 ADAM H. EDELEN AUDITOR OF PUBLIC ACCOUNTS ST. CLAIR STREET FRANKFORT, KY TELEPHONE (502) FACSIMILE (502)

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3 EXECUTIVE SUMMARY AUDIT EXAMINATION OF THE OLDHAM COUNTY FISCAL COURT June 30, 2011 The Auditor of Public Accounts has completed the audit of the Oldham County Fiscal Court for fiscal year ended June 30, We have issued unqualified opinions on the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and aggregate remaining fund information of Oldham County, Kentucky. In accordance with OMB Circular A-133, we have issued an unqualified opinion on the compliance requirements that are applicable to Oldham County s major federal programs: Community Development Block Grants/State s Program and Non-Entitlement Grants in Hawaii (CFDA #14.228) and Highway Planning and Construction (CFDA #20.205) Financial Condition: The fiscal court had total net assets of $34,880,266 as of June 30, The fiscal court had unrestricted net assets of $11,070,450 in its governmental activities as of June 30, 2011, with total net assets of $34,857,219. In its business-type activities, total net cash and cash equivalents were $23,047 with total net assets of $23,047. The fiscal court s discretely presented component units had net assets of $6,225,064 as of June 30, The discretely presented component units had net cash and cash equivalents of $1,691,449. The fiscal court had total debt principal as of June 30, 2011 of $18,738,377 with $720,000 due within the next year. The discretely presented component units had total debt principal as of June 30, 2011 of $10,585,000 with $385,000 due within the next year. Report Comments: The Fiscal Court Should Require The Depository Institution To Pledge Or Provide Sufficient Collateral And Enter Into A Written Agreement To Protect Deposits General Fund Expenditures Should Not Exceed Budgeted Appropriations Deposits: The Fiscal Court s deposits as of August 31, 2010 were exposed to custodial credit risk as follows: Uncollateralized and Uninsured $1,385,240 The component units deposits were insured and collateralized by bank securities.

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5 CONTENTS PAGE INDEPENDENT AUDITOR S REPORT... 1 OLDHAM COUNTY OFFICIALS... 3 STATEMENT OF NET ASSETS - MODIFIED CASH BASIS... 7 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS BALANCE SHEET - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS STATEMENT OF NET ASSETS - PROPRIETARY FUND - MODIFIED CASH BASIS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUND - MODIFIED CASH BASIS STATEMENT OF CASH FLOWS - PROPRIETARY FUND - MODIFIED CASH BASIS STATEMENT OF FIDUCIARY FUND NET ASSETS - MODIFIED CASH BASIS STATEMENT OF NET ASSETS - COMPONENT UNITS - MODIFIED CASH BASIS STATEMENT OF ACTIVITIES - COMPONENT UNITS - MODIFIED CASH BASIS NOTES TO FINANCIAL STATEMENTS BUDGETARY COMPARISON SCHEDULES NOTES TO REQUIRED SUPPLEMENTARY INFORMATION COMBINING BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDS - MODIFIED CASH BASIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS - MODIFIED CASH BASIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 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 WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A SCHEDULE OF FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS APPENDIX A: CERTIFICATION OF COMPLIANCE - LOCAL GOVERNMENT ECONOMIC ASSISTANCE PROGRAM

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7 To the People of Kentucky Honorable Steven L. Beshear, Governor Lori H. Flanery, Secretary Finance and Administration Cabinet Honorable David Voegele, Oldham County Judge/Executive Members of the Oldham County Fiscal Court Independent Auditor s Report We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of Oldham County, Kentucky, as of and for the year ended June 30, 2011, which collectively comprise the County s basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Oldham County Fiscal Court. 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, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the Audit Guide for Fiscal Court Audits issued by the Auditor of Public Accounts, Commonwealth of Kentucky. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. As described in Note 1, Oldham County, Kentucky, prepares its financial statements in accordance with the modified cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In our opinion the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of Oldham County, Kentucky, as of June 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with the basis of accounting described in Note 1. The county has implemented Governmental Accounting Standards Board Statement 54 as it relates to the modified cash basis of accounting as described in Note 1, which has altered the format and content of the basic financial statements.

8 To the People of Kentucky Honorable Steven L. Beshear, Governor Lori H. Flanery, Secretary Finance and Administration Cabinet Honorable David Voegele, Oldham County Judge/Executive Members of the Oldham County Fiscal Court Page 2 The county has not presented the management s discussion and analysis that the Governmental Accounting Standards Board (GASB) has determined is necessary to supplement, although not required to be part of, the basic financial statements. The budgetary comparison information is not a required part of the basic financial statements but is supplementary information required by GASB. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the budgetary comparison information. However, we did not audit it and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Oldham County, Kentucky s basic financial statements. The accompanying supplementary information, combining fund financial statements, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and is not a required part of the basic financial statements. The combining fund financial statements and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2011, on our consideration of Oldham County, Kentucky'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 that 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Based on the results of our audit, we present the accompanying schedule of findings and questioned costs included herein, which discusses the following report comments: The Fiscal Court Should Require The Depository Institution To Pledge Or Provide Sufficient Collateral And Enter Into A Written Agreement To Protect Deposits General Fund Expenditures Should Not Exceed Budgeted Appropriations Respectfully submitted, December 5, 2011 Adam H. Edelen Auditor of Public Accounts

9 OFFICIALS Page 3 For The Year Ended June 30, 2011 Fiscal Court Members: David Voegele Brent Likins Wayne Theiss Robert Leslie Stephen Greenwell, Sr. JD Sparks Kevin Eldridge Bob Dye Michael Lodgsdon County Judge/Executive Magistrate Magistrate Magistrate Magistrate Magistrate Magistrate Magistrate Magistrate Other Elected Officials: John Carter Mike Simpson Julie Barr Linda Mason Steve Sparrow Ron Winters Brett Donner County Attorney Jailer County Clerk Circuit Court Clerk Sheriff Property Valuation Administrator Coroner Appointed Personnel: Melissa Horn County Treasurer J. Stanley Clark Chief Financial Officer

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11 STATEMENT OF NET ASSETS - MODIFIED CASH BASIS June 30, 2011

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13 STATEMENT OF NET ASSETS - MODIFIED CASH BASIS Page 7 June 30, 2011 Primary Government Governmental Business-Type Component Activities Activities Totals Units ASSETS Current Assets: Cash and Cash Equivalents $ 11,070,450 $ 23,047 $ 11,093,497 $ 1,691,449 Notes Receivable 385, ,000 Total Current Assets 11,455,450 23,047 11,478,497 1,691,449 Noncurrent Assets: Notes Receivable 15,638,377 15,638,377 Investments 97,737 Bond Costs, Prepaid Interest 151,456 Capital Assets Construction In Progress 37,240 37, ,908 Land 1,420,191 1,420, ,818 Buildings 16,058,261 16,058, ,330 Land and Building Improvements 2,547,019 2,547,019 Vehicles 3,189,245 3,189,245 1,295,244 Office Equipment 40,801 Equipment 3,693,924 3,693, ,042 Infrastructure 19,063,004 19,063,004 Plumbing & Distribution Systems 16,093,682 Less: Accumulated Depreciation (19,507,115) (19,507,115) (4,713,403) Total Noncurrent Assets 42,140,146 42,140,146 15,118,615 Total Assets 53,595,596 23,047 53,618,643 16,810,064 LIABILITIES Current Liabilities: Current Portion of Long-term Debt 385,000 General Obligation Bonds 440, ,000 Revenue Bonds 185, ,000 Financing Obligations 95,000 95,000 Total Current Liabilities 720, , ,000 Noncurrent Liabilities: Long-term Debt 10,200,000 General Obligation Bonds 8,935,000 8,935,000 General Obligation Notes 5,438,377 5,438,377 Revenue Bonds 490, ,000 Financing Obligations 3,155,000 3,155,000 Total Noncurrent Liabilities 18,018,377 18,018,377 10,200,000 Total Liabilities 18,738,377 18,738,377 10,585,000 The accompanying notes are an integral part of the financial statements.

14 STATEMENT OF NET ASSETS - MODIFIED CASH BASIS June 30, 2011 (Continued) Page 8 Primary Government Governmental Business-Type Component Activities Activities Totals Units NET ASSETS Invested in Capital Assets, Net of Related Debt $ 23,786,769 $ $ 23,786,769 $ 4,382,159 Restricted For: Protection to Persons and Property 145, ,167 Recreation and Culture 16,700 16,700 Other Transportation Facilities and Services 94,090 94,090 Debt Service 81,349 81,349 Unrestricted 10,733,144 23,047 10,756,191 1,842,905 Total Net Assets $ 34,857,219 $ 23,047 $ 34,880,266 $ 6,225,064 The accompanying notes are an integral part of the financial statements.

15 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS For The Year Ended June 30, 2011

16 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS Page 10 For The Year Ended June 30, 2011 Program Revenues Received O perating Capital Functions/Programs Charges for Grants and Grants and Reporting Entity Expenses Services Contributions Contributions Primary Government: Governmental Activities: General Government $ 3,549,778 $ 446,860 $ 539,921 $ Protection to Persons and Property 6,370,816 1,516, , ,869 General Health and Sanitation 888,740 58, ,177 Social Services 22,000 Recreation and Culture 1,035, ,730 44,368 16,700 Roads 2,251, , ,635 1,238,542 Bus Services 37, ,241 Other Transportation Facilities and Services 308, , ,067 Debt Service 608,665 Capital Projects 836, ,786 Total Governmental Activities 15,910,037 2,486,023 1,815,290 2,420,964 Business-type Activities: Jail Canteen 151, ,798 Total Business-type Activities 151, ,798 Total Primary Government $ 16,062,015 $ 2,649,821 $ 1,815,290 $ 2,420,964 Component Units: Oldham County Enviromental Authority $ 4,268,784 $ 3,716,385 $ 9,461 $ Oldham County Ambulance Taxing District 4,293,086 1,192,628 46,920 Total Component Units $ 8,561,870 $ 4,909,013 $ 56,381 $ 0 General Revenues: Taxes: Real Property Taxes Personal Property Taxes Motor Vehicle Taxes Other Taxes Excess Fees Unrestricted Investment Earnings Gain on Sale of Assets Miscellaneous Revenues Total General Revenues and Transfers Change in Net Assets Net Assets - Beginning (Restated) Net Assets - Ending The accompanying notes are an integral part of the financial statements.

17 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS For The Year Ended June 30, 2011 (Continued) Page 11 Net (Expenses) Revenues and Changes in Net Assets Primary Government Governmental Business-Type Component Activities Activities Totals Units $ (2,562,997) $ $ (2,562,997) $ (4,385,166) (4,385,166) (725,630) (725,630) (22,000) (22,000) (676,271) (676,271) (582,203) (582,203) 76,329 76, , ,754 (608,665) (608,665) (21,911) (21,911) (9,187,760) (9,187,760) 11,820 11,820 11,820 11,820 (9,187,760) 11,820 (9,175,940) (542,938) (3,053,538) $ (3,596,476) 4,688,229 4,688,229 2,807,343 29,814 29, , ,433 6,676,334 6,676, , ,158 55,056 55,056 34,026 1,402,667 1,402, , ,846 10,244 14,365,537 14,365,537 2,851,613 5,177,777 11,820 5,189,597 (744,863) 29,679,442 11,227 29,690,669 6,969,927 $ 34,857,219 $ 23,047 $ 34,880,266 $ 6,225,064 The accompanying notes are an integral part of the financial statements.

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19 BALANCE SHEET - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS June 30, 2011

20 BALANCE SHEET - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS Page 14 June 30, 2011 Local Government Economic General Road Jail Assistance Fund Fund Fund Fund ASSETS Cash and Cash Equivalents $ 8,650,943 $ 1,905,021 $ $ 287,970 Total Assets 8,650,943 1,905, ,970 FUND BALANCES Restricted For: Protection to Persons and Property Recreation and Culture 16,700 Other Transportation Facilities and Services 94,090 Debt Service Assigned To: Recreation and Culture 177,180 Roads 1,905,021 Unassigned 8,650,943 Total Fund Balances $ 8,650,943 $ 1,905,021 $ 0 $ 287,970 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets: Total Fund Balances $ 11,070,450 Amounts Reported For Governmental Activities In The Statement Of Net Assets Are Different Because: Notes Receivable Used in Governmental Activities Are Not Financial Resources and Therefore Are Not Reported in the Funds 16,023,377 Capital Assets Used in Governmental Activities Are Not Financial Resources And Therefore Are Not Reported in the Funds. 46,008,884 Accumulated Depreciation (19,507,115) Long-term debt is not due and payable in the current period and, therefore, is not reported in the funds. Financing Obligations (3,250,000) Revenue Bonds (675,000) General Obligation Bonds (9,375,000) General Obligation Notes (5,438,377) Net Assets Of Governmental Activities $ 34,857,219 The accompanying notes are an integral part of the financial statements.

21 BALANCE SHEET - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS June 30, 2011 (Continued) Page 15 Public Facilities Construction General Non- Total Corporation Obligation Major Governmental Fund Bond Fund Funds Funds $ 35 $ 81,314 $ 145,167 $ 11,070, , ,167 11,070, , ,167 16,700 94, ,314 81, ,180 1,905,021 8,650,943 $ 35 $ 81,314 $ 145,167 $ 11,070,450 The accompanying notes are an integral part of the financial statements.

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23 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS For The Year Ended June 30, 2011

24 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS Page 18 For The Year Ended June 30, 2011 Local Government Economic General Road Jail Assistance Fund Fund Fund Fund REVENUES Taxes $ 10,012,141 $ 600,000 $ $ 87,961 In Lieu Tax Payments 565,000 Excess Fees 533,158 Licenses and Permits 241,913 Intergovernmental 675,614 1,423,608 1,322,117 1,618,150 Charges for Services 490, , ,990 Miscellaneous 1,997,948 8,742 53, Interest 38,171 15, Total Revenues 14,554,576 2,213,475 1,514,616 1,706,817 EXPENDITURES Current: General Government 2,860,348 Protection to Persons and Property 3,414,119 1,955,514 66,240 General Health and Sanitation 671, ,200 Social Services 22,000 Recreation and Culture 977,033 87,961 Roads 2,947,260 Bus Services 75,151 Other Transportation Facilities and Services 308,966 Debt Service 2,057,400 Capital Projects 836,697 Administration 512,752 Total Expenditures 10,514,740 2,947,260 1,955,514 1,544,215 Excess (Deficiency) of Revenues Over Expenditures Before Other Financing Sources (Uses) 4,039,836 (733,785) (440,898) 162,602 Other Financing Sources (Uses) Transfers From Other Funds 823,677 1,314, , ,480 Transfers To Other Funds (2,135,147) (565,154) (174,410) Total Other Financing Sources (Uses) (1,311,470) 748, ,898 (59,930) Net Change in Fund Balances 2,728,366 15, ,672 Fund Balances - Beginning 5,922,577 1,889, ,298 Fund Balances - Ending $ 8,650,943 $ 1,905,021 $ 0 $ 287,970 The accompanying notes are an integral part of the financial statements.

25 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS For The Year Ended June 30, 2011 (Continued) Page 19 Public Facilities Construction General Non- Total Corporation Obligation Major Governmental Fund Bond Fund Funds Funds $ $ $ 722,708 $ 11,422, , , , , ,677 5,424, , ,060, , , ,938 21,098,214 2,860,348 1,110,016 6,545, ,288 22,000 1,064,994 2,947,260 75, , , ,168 2,601, , , , ,168 1,110,016 18,616, (338,483) (207,078) 2,482, ,362 2,986,467 (111,756) (2,986,467) 181, (338,483) (25,472) 2,482, , ,639 8,588,246 $ 35 $ 81,314 $ 145,167 $ 11,070,450 The accompanying notes are an integral part of the financial statements.

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27 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS For The Year Ended June 30, 2011

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29 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS For The Year Ended June 30, 2011 Page 23 Net Change in Fund Balances - Total Governmental Funds $ 2,482,204 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. Capital Outlay 2,808,356 Depreciation Expense (2,096,783) Assets Disposed of, Net Book Value (9,000) Payment on Receivable Provides for Current Financial Resources to Governmental Funds, while at the Government-wide Leval, a Reduction of the Receivable Occurs. These Transactions Have No Effect on Net Assets. (90,000) Financing Obligations and Bond Principal Payments Are Expensed in the Governmental Funds as a Use of Current Financial Resources. However, these Amounts Decrease Non-current Liabilities on the Statement of Net Assets and Have Been Eliminated on the Statement of Activities. General Obligation Bond Principal Payments 1,610,000 Revenue Bonds Principal Payments 180,000 Financing Obligations Principal Payments 293,000 Change in Net Assets of Governmental Activities $ 5,177,777 The accompanying notes are an integral part of the financial statements.

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31 STATEMENT OF NET ASSETS - PROPRIETARY FUND - MODIFIED CASH BASIS June 30, 2011

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33 STATEMENT OF NET ASSETS - PROPRIETARY FUND - MODIFIED CASH BASIS Page 27 June 30, 2011 Business-Type Activity Enterprise Fund Jail Canteen Fund Assets Current Assets: Cash and Cash Equivalents $ 23,047 Total Current Assets 23,047 Net Assets Unrestricted 23,047 Total Net Assets $ 23,047 The accompanying notes are an integral part of the financial statements.

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35 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUND - MODIFIED CASH BASIS For The Year Ended June 30, 2011

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37 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUND - MODIFIED CASH BASIS Page 31 For The Year Ended June 30, 2011 Business-Type Activity Enterprise Fund Jail Canteen Fund Operating Revenues Canteen Revenues $ 163,798 Total Operating Revenues 163,798 Operating Expenses Cost of goods sold and other expenses 151,978 Total Operating Expenses 151,978 Operating Income (Loss) 11,820 Change In Net Assets 11,820 Total Net Assets - Beginning 11,227 Total Net Assets - Ending $ 23,047 The accompanying notes are an integral part of the financial statements.

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39 STATEMENT OF CASH FLOWS - PROPRIETARY FUND - MODIFIED CASH BASIS For The Year Ended June 30, 2011

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41 STATEMENT OF CASH FLOWS - PROPRIETARY FUND - MODIFIED CASH BASIS Page 35 For The Year Ended June 30, 2011 Business-Type Activitiy Enterprise Fund Jail Canteen Fund Cash Flows From Operating Activities Cash Receipts From Inmates $ 163,798 Cash Payments To Vendors (151,978) Net Cash Provided By Operating Activities 11,820 Net Decrease in Cash and Cash Equivalents 11,820 Cash and Cash Equivalents - July 1, ,227 Cash and Cash Equivalents - June 30, 2011 $ 23,047 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income (Loss) $ 11,820 Net Cash Used By Operating Activities $ 11,820 The accompanying notes are an integral part of the financial statements.

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43 STATEMENT OF FIDUCIARY FUND NET ASSETS - MODIFIED CASH BASIS June 30, 2011

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45 STATEMENT OF FIDUCIARY FUND NET ASSETS - MODIFIED CASH BASIS Page 39 June 30, 2011 Agency Funds Planning and Zoning County Police Total Bond Escrow Seized Funds Agency Fund Fund Funds Assets Current Assets: Cash and Cash Equivalents $ 653,615 $ 15,287 $ 668,902 Total Assets 653,615 15, ,902 Liabilities Amounts Held In Custody For Others 653,615 15, ,902 Total Liabilities 653,615 15, ,902 Net Assets Total Net Assets $ 0 $ 0 $ 0 The accompanying notes are an integral part of the financial statements.

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47 STATEMENT OF NET ASSETS COMPONENT UNITS June 30, 2011

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49 STATEMENT OF NET ASSETS - COMPONENT UNITS - MODIFIED CASH BASIS Page 43 June 30, 2011 Oldham County Oldham County Environmental Ambulance Authority Taxing District Totals Assets Current Assets: Cash and Cash Equivalents $ 895,946 $ 795,503 $ 1,691,449 Total Current Assets 895, ,503 1,691,449 Noncurrent Assets: Investments 97,737 97,737 Bond Costs, Prepaid Interest 151, ,456 Capital Assets: Construction In Progress 638, ,908 Land 435, , ,818 Plumbing & Distribution System 16,093,682 16,093,682 Office Equipment 40,801 40,801 Building & Improvements 416, ,330 Equipment 555, ,042 Vehicles 158,421 1,136,823 1,295,244 Less Accumulated Depreciation (3,425,137) (1,288,266) (4,713,403) Total Noncurrent Assets 14,191, ,945 15,118,615 Total Assets 15,087,616 1,722,448 16,810,064 Liabilities Current Liabilities: Current Portion of Long-term Debt 385, ,000 Total Current Liabilities 385, ,000 Noncurrent Liabilities: Long-term Debt 10,200,000 10,200,000 Total Noncurrent Liabilities 10,200,000 10,200,000 Total Liabilities 10,585,000 10,585,000 Net Assets Invested in Capital Assets 3,455, ,945 4,382,159 Unrestricted 1,047, ,503 1,842,905 Total Net Assets $ 4,502,616 $ 1,722,448 $ 6,225,064 The accompanying notes are an integral part of the financial statements.

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51 STATEMENT OF ACTIVITIES COMPONENT UNITS For The Year Ended June 30, 2011

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53 STATEMENT OF ACTIVITIES - COMPONENT UNITS - MODIFIED CASH BASIS Page 47 For The Year Ended June 30, 2011 Program Revenues Received Net (Expenses) Revenues and Changes In Net Assets Operating Capital Functions/Programs Charges for Grants and Grants and Component Reporting Entity Expenses Services Contributions Contributions Units Component Units: Oldham County Environmental Authority $ 4,268,784 $ 3,716,385 $ 9,461 $ $ (542,938) Oldham County Ambulance Taxing Disrtict 4,293,086 1,192,628 46,920 (3,053,538) Total Component Units $ 8,561,870 $ 4,909,013 $ 56,381 $ 0 $ (3,596,476) General Revenues: Taxes 2,807,343 Unrestricted Investment Earnings 34,026 M iscellaneous Revenues 10,244 Total General Revenues 2,851,613 Change in Net Assets (744,863) Net Assets - Beginning 6,969,927 Net Assets - Ending $ 6,225,064 The accompanying notes are an integral part of the financial statements.

54 INDEX FOR NOTES TO THE FINANCIAL STATEMENTS Page 48 June 30, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 2. DEPOSITS AND INVESTMENTS NOTE 3. TRANSFERS NOTE 4. CAPITAL ASSETS NOTE 5. LONG-TERM DEBT NOTE 6. COMMITMENT NOTE 7. INTEREST ON LONG-TERM DEBT AND FINANCING OBLIGATIONS NOTE 8. EMPLOYEE RETIREMENT SYSTEM NOTE 9. DEFERRED COMPENSATION NOTE 10. INSURANCE NOTE 11. SUBSEQUENT EVENTS NOTE 12. RELATED PARTY TRANSACTIONS NOTE 13. PRIOR PERIOD ADJUSTMENT AND CHANGE IN ACCOUNTING PRINCIPLE... 68

55 NOTES TO FINANCIAL STATEMENTS Page 49 June 30, 2011 Note 1. Summary of Significant Accounting Policies A. Basis of Presentation The county presents it s government-wide and fund financial statements in accordance with a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Under this basis of accounting, assets, liabilities, and related revenues and expenditures are recorded when they result from cash transactions, with a few exceptions. This modified cash basis recognizes revenues when received and expenditures when paid. Notes receivable are recognized on the Statement of Net Assets, but notes receivable are not included and recognized on Balance Sheet - Governmental Funds. Property tax receivables, accounts payable, compensated absences, and donated assets are not reflected in the financial statements. The financial statements of Component Units, the discretely presented component units, are prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America. Under this basis of accounting all assets and liabilities are recognized on the Statement of Net Assets. Revenues are recorded when earned and liabilities are recorded when incurred, regardless of timing of cash. The State Local Finance Officer does not require the county to report capital assets and infrastructure; however the value of these assets is included in the Statement of Net Assets and the corresponding depreciation expense is included on the Statement of Activities. B. Reporting Entity The financial statements of Oldham County include the funds, agencies, boards, and entities for which the fiscal court is financially accountable. Financial accountability, as defined by Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards, as amended by GASB 14 and GASB 39, was determined on the basis of the government s ability to significantly influence operations, select the governing authority, participate in fiscal management and the scope of public service. Consequently, the reporting entity includes organizations that are legally separate from the primary government. Legally separate organizations are reported as component units if either the county is financially accountable or the organization s exclusion would cause the county s financial statements to be misleading or incomplete. Component units may be blended or discretely presented. Blended component units either provide their services exclusively or almost entirely to the primary government, or their governing bodies are substantively the same as the primary government. All other component units are discretely presented. Blended Component Unit The following legally separate organization provides its services exclusively to the primary government, and the fiscal court is able to impose its will on this organization. This organization s balances and transactions are reported as though they are part of the county s primary government using the blending method. Oldham County Public Facilities Construction Corporation The Public Facilities Construction Corporation (PFCC) was created for the financing and renovation of the Oldham County Courthouse and financing and construction of a recreation center. Fiscal Court has the authority to appoint a voting majority of the PFCC s board of directors and PFCC was deemed a component unit of the County. Financial information for the Public Facilities Construction Corporation is blended within Oldham County s financial statements and is presented as the Public Facilities Construction Corporation Fund.