NORTHAMPTON

1 NORTHAMPTON COUNTY JACKSON, NORTH CAROLINA BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2008 NORTHAMPTON COUNTY JACKSON, NORTH CAROLINA Financial Statements June 30, 2008 Board of Commissioners Robert V. Carter -Chairman Fannie P. Greene -Vice-Chairwoman Virginia Spruill Chester J. Deloatch, Sr. James Hester County Manager Wayne Jenkins Finance Director Dorothy Vick ExhibitPageIndependent Auditors' Report1-2 Management's Discussion and Analysis3-12 Basic Financial Statements:Government-Wide Financial Statements:AStatement of Net Assets13 BStatement of Activities14-15 Fund Financial Statements:CBalance Sheet - Governmental Funds16 DStatement of Revenues, Expenditures, and Changesin Fund Balances - Governmental Funds17 EReconciliation of the Statement of Revenues,Expenditures, and Changes in Fund Balances -Governmental Funds to the Statement of Activities18 FStatement of Revenues, Expenditures, and Changesin Fund Balance - Budget and Actual - General Fund19 GStatement of Net Assets - Proprietary Funds20 HStatement of Revenues.

2 Expenses and Changes inFund Net Assets - Proprietary Funds21 IStatement of Cash Flows - Proprietary Funds22 JStatement of Fiduciary Net Assets - Fiduciary Funds23 Notes to the Financial Statements24-54 NORTHAMPTON COUNTY, NORTH CAROLINA TABLE OF CONTENTSBASIC FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2008 NORTHAMPTON COUNTY, NORTH CAROLINABASIC FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2008 SchedulePageSupplementary Information:1 General Fund - Schedule of Revenues, Expenditures,and Changes in Fund Balance - Budget and Actual55-702 Nonmajor Governmental Funds - CombiningBalance Sheet713 Nonmajor Governmental Funds - CombiningStatement of Revenues, Expenditures, andChanges in Fund Balances724 Nonmajor Special Revenue Funds - CombiningBalance Sheet73-745 Nonmajor Special Revenue Funds - CombiningStatement of Revenues, Expenditures, and Changes75-76in Fund Balances6 EDC Advance Vehicle Research Fund -Schedule of Revenues, Expenditures, andChanges in Fund Balance - Budget and Actual777 Capital Reserve Fund - Schedule of Revenues,Expenditures.

3 And Changes in Fund Balance -Budget and Actual78 8 Mid-Atlantic Distribution Park Fund - Scheduleof Revenues, Expenditures, and Changes inFund Balance - Budget and Actual799 Emergency Telephone System Fund - Scheduleof Revenues, Expenditures, and Changes inFund Balance - Budget and Actual8010 Revaluation Fund - Schedule of Revenues,Expenditures, and Changes in Fund Balance -Budget and Actual81 NORTHAMPTON COUNTY, NORTH CAROLINABASIC FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2008 SchedulePage11 Revolving Loan Fund - Schedule of Revenues,Expenditures, and Changes in Fund Balance -Budget and Actual8212 CDBG Grant Project Fund - Schedule ofRevenues, Expenditures, and Changes in FundBalance - Budget and Actual8313 Ambulance Capital Reserve Fund - Scheduleof Revenues, Expenditures, and Changes inFund Balance - Budget and Actual8414 EDC Capital Reserve Fund - Schedule of Revenues,Expenditures, and Changes in Fund Balance -Budget and Actual8515 Public Schools Building Fund - Schedule of Revenues,Expenditures, and Changes in Fund Balance -Budget and Actual8616 Elementary Public Schools Building Fund - Schedule ofRevenues, Expenditures.

4 And Changes in Fund Balance -Budget and Actual8717 Fire District Fund - Schedule of Revenues,Expenditures, and Changes in Fund Balance -Budget and Actual8818 Roanoke Economic Development Grant -Schedule of Revenues, Expenditures, andChanges in Fund Balance - Budget and Actual8919 CDBG Scattered Site - Schedule of Revenues,Expenditures, and Changes in Fund Balance - Budget and Actual9020 Nonmajor Capital Project Funds - CombiningBalance Sheet91 NORTHAMPTON COUNTY, NORTH CAROLINABASIC FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2008 SchedulePage21 Nonmajor Capital Project Funds - CombiningStatement of Revenues, Expenditures, andChanges in Fund Balances9222 Nonmajor Capital Project Fund - Wellness andRecreation Centers - Schedule of Revenues andExpenditures - Budget and Actual9323 Nonmajor Capital Project Fund - First ResponderTraining Center - Schedule of Revenues andExpenditures - Budget and Actual9424 Nonmajor Capital Project Fund - EDC GrantProject Fund - Schedule of Revenues andExpenditures - Budget and Actual9525 Nonmajor Debt Service Fund - Schedule of Revenues,Expenditures.

5 And Changes in Fund Balance - 96 Budget and Actual26 Enterprise Fund - Water and Sewer Fund -Schedule of Revenues and Expenditures -Budget and Actual (Non-GAAP)97-9827 Enterprise Fund - Solid Waste Fund -Schedule of Revenues and Expenditures -Budget and Actual (Non-GAAP)9928 Water and Sewer Capital Project - NORTHAMPTON / Lincoln Park Sewer Project -Schedule of Revenues and Expenditures -Budget and Actual 10029 Water and Sewer Capital Project -Lebanon Church Road CDBG -Schedule of Revenues, Expenditures, and Changesin Fund Balances - Budget and Actual101 NORTHAMPTON COUNTY, NORTH CAROLINABASIC FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2008 SchedulePage30 Agency Funds - Combining Statement of Changesin Assets and Liabilities102-103 Additional Financial Data.

6 31 Schedule of Ad Valorem Taxes Receivable10432 Analysis of Current Tax Levy10533 Analysis of Current Tax Levy - County-Wide Levy10634 Ten Largest Taxpayers107 730 13th Avenue Drive SE Hickory, North Carolina 28602 Phone 828-327-2727 Fax 828-328-2324 13 South Center Street Taylorsville, North Carolina 28681 Phone 828-632-9025 Fax 828-632-9085 Toll Free Both Locations 800-948-0585 Web Site: INDEPENDENT AUDITORS REPORT To the Board of County Commissioners NORTHAMPTON County, North Carolina 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 NORTHAMPTON County, North Carolina as of and for the year ended June 30, 2008, which collectively comprise the County s basic financial statements as listed in the table of contents.

7 These financial statements are the responsibility of NORTHAMPTON County's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We did not audit the financial statements of the NORTHAMPTON County ABC Board which represents 100 percent of the assets, net assets, and revenues of the discretely presented component unit. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the NORTHAMPTON County ABC Board, is based solely on the report of the other auditors.

8 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 basic financial statements are free of material misstatement. The financial statements of the NORTHAMPTON County ABC Board were not audited in accordance with Government Auditing Standards. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

9 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. In our opinion, based on our audit and the report of other auditors, 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 NORTHAMPTON County, North Carolina as of June 30, 2008, and the respective changes in financial position and cash flows, where appropriate, thereof.

10 And the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated October 10, 2008 on our consideration of NORTHAMPTON County's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, 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.