Not-For-Profit Entity: Man In The Mirror, Government Entity For CAFR Project: Calvert County, MD

(1) Was the entity’s annual report for the previous year awarded a “certificate of achievement for excellence in financial reporting” by the GFOA?

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in           Financial Reporting to Calvert County Government for its comprehensive annual financial report for the fiscal year ended June 30, 2015.

(2) Which public accounting firm audited the financial statements? What was the auditor’s opinion on the financial statements?

SB & Company, LLC, Independent Certified Public Accountants have audited Calvert County Government’s financial statements. The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the financial statements are fairly presented in conformity with GAAP. 

(3) Did the auditor mention internal controls in their report?  Did the auditor provide an opinion on the entities internal controls?

SB & Company, LLC. considered the County’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing their opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, they do not express an opinion on the effectiveness of the County’s internal control. 

Given these limitations, during their audit they did not identify any deficiencies in internal control over financial reporting that they consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

(4) Was an organizational chart presented?  What person, group or entity was at the top of the chart? 

Yes, an organizational chart was presented on page viii., and at the top of the chart were 'citizens'.

Governmental Funds

(1) How many Governmental Funds are presented as major funds on the financial statements?

Governmental and Proprietary fund financial statement presentation focuses on major funds rather than reporting funds by type.    Each major fund is presented in a separate column. There are two major funds on the financial statements:

· General Fund

· Capital Projects Fund

(2) What is the total assets amount (in thousands) on the Governmental Funds balance sheet (include both major and non-major funds)?

The total assets amount (in thousands) on the Governmental Funds balance sheet is $135,391,544.

(3) For Governmental Funds, what activity accounted for the largest source of revenue (found on the “Statement of Revenues, Expenditures and Changes in Fund Balance”)? 

Taxes, listed under General Fund accounted for the largest source of revenue for Calvert County with $224,262,955.

(4) For Governmental Funds, what activity accounted for the largest source of expenditure (found on the “Statement of Revenues, Expenditures and Changes in Fund Balance”)?

Education, listed under General Fund accounted for the largest source of expenditure for Calvert County with Education $119,461,105.

(5) Does your entity have any special revenue funds presented on the financial statements as a major Governmental Funds? 

No. Calvert County does not have any special revenue funds presented on the financial statements as a major Governmental Funds. The special revenue funds include the Parks and Recreation Fund, Chesapeake Hills Golf Course, Calvert Marine Museum, Planning and Zoning Special Revenue Fund, Bar Library Fund, Revolving Loan Fund, Economic Development Authority Revolving Loan Fund, Calvert County Family Network, Grants Fund, Economic Development Incentive Fund, Excise Tax Fund, the Land Preservation Fund, and the Board of Library Trustees for Calvert County (the Library).  None of these special revenue funds are major funds.

(6) How many Governmental Funds in total (major and non major) does the city maintain?

There are thirteen non major funds and two major funds, for a total of 15 Governmental Funds being maintained by Calvert County. 

(7) Does the city have any permanent funds?

I was unable to locate any information regarding permanent funds.

(8) What was the Total Fund Balance on the Governmental Funds Balance Sheet (This is the sum of nonspendable, restricted, committed, assigned, and unassigned fund balances)?

The total fund balance on the Governmental Funds Balance Sheet is $73,720,117.

Statistical Section

(1) Who was the largest employer of the entity (if this information is provided)?

The largest employer of Calvert County is Calvert County Public Schools with  2,224 employees, which equates to 4.78% of total county employees. 

(2) Please provide several additional interesting statistical data points from your CAFR.  For example, you can list the property tax rate, unemployment rate, per-capital income, etc.

· The County of Calvert, for that last 3 fiscal years has collected 100% of property tax levies and collections for a total of $120,625,659 in 2016

· The County continues its policy of maintaining a reserve of 8 percent of current budgeted General Fund expenditures to protect its high credit ratings and provide for a source of funds to be available in the event of “catastrophic” revenue short falls. In June 2016, the County’s credit ratings were reaffirmed by Standard & Poor’s and Fitch and upgraded by Moody’s Investors Service, Inc. The current ratings follow:                                          

Standard & Poors                           “AAA”                                                                                                    Fitch Ratings                            "AAA"                                                                                                    Moody’s Investors Service, Inc.      "Aaa" 

· The unemployment rate for Calvert County was reported as 3.9% for 2015 by the Maryland Department of Labor Licensing and Regulation.  This continues an improving trend.

· The average per‐capita personal income of County residents reported by the Maryland Department of Planning for 2011‐2015 is $50,066 ($43,546 in 2010‐2014), an increase of 15.0 percent.  

Proprietary Funds

1. How many major enterprise funds does the entity maintain (if any)?

There are two major enterprise funds.

a. Water and Sewer Funds

b. Solid Waste and Recycling Fund

2. Are all the major enterprise funds operating at a profit (Operating Income)? 

No.  The two major enterprise funds are operating at a Operating Income (loss).

3. Does the entity maintain any internal service funds (major and/or non-major)?

Yes. Calvert County maintains internal service funds. 

General Fund

a. Special revenue funds

b. Capital projects fund

c. Enterprise funds

4. Do the financial statements include a statement of cash flows for proprietary funds? If so, is the direct method or indirect method used 

Yes. The financial statements include a statement of cash flows for proprietary funds. The statement of cash flows for proprietary funds uses the direct method.

Fiduciary Funds

1. There are four types of fiduciary funds. Does this entity maintain all four types?

No. Calvert County does not maintain all four types of fiduciary funds. They maintain:

a. Pension funds and Other Post-Employment Benefits

b. Agency Fund

2. What are the purposes of the entity’s fiduciary funds?

Fiduciary funds are used to account for resources held for the benefit of parties outside the government.

Other

(1) What is the financial condition of the government you selected?

In fiscal year 2016, assets and deferred outflows exceeded liabilities and deferred inflows by $160.9 million (prior year, $153.9 million). Property taxes and income taxes provide the majority (89 percent, fiscal year 2016 budget) of the revenue for the General Fund of the Calvert County Government.

Property tax, the largest revenue source, represented 60 percent of the total General Fund revenue for fiscal year 2016.    The number of residential building permits issued in fiscal year 2016 was 215, a decrease of about 36 percent or 120 permits from the 335 issued in FY 2015. 

The County also received the GFOA Award for Distinguished Budget Presentation for its annual budget dated July 1, 2015 to June 30, 2016. In order to qualify for this Distinguished Budget Award, the County must publish a budget document that meets program criteria as a policy document, operations guide, financial plan, and communications medium.   

Calvert County Maryland Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2016.