Comprehensive Annual Financial Report - Cobb County

COBB COUNTY, GEORGIA
NOTES TO FINANCIAL STATEMENTS
September 30, 2007
Note 1.
Summary of Significant Accounting Policies (Continued)
O. Contributed Capital and Capital Contributions – Proprietary Funds
Grants, entitlements and shared revenues restricted for the acquisition or construction of capital assets were
recorded as contributed capital prior to the implementation of GASB 33, Accounting and Financial
Reporting for Nonexchange Transactions. As required by GASB 33, the County has recognized capital
contributions as revenue rather than as contributed capital.
P. Net Assets
1. Invested in capital assets, net of related debt – This amount consists of capital assets net of accumulated
depreciation and reduced by outstanding debt that attributed to the acquisition, construction or
improvement of the assets.
2. Restricted net assets – This amount is restricted by external creditors, grantors, contributors or laws or
regulations of other governments.
3. Unrestricted net assets – This amount is all net assets that do not meet the definition of “invested in
capital assets, net of related debt” or “restricted net assets.”
Note 2. Budgetary Information
The County follows these procedures in establishing the budgetary data reflected in the financial statements:
A. Prior to August 1, the Chairman of the Board of Commissioners and the County Manager submit to the
Board of Commissioners a proposed operating budget and capital projects budget for the fiscal year
commencing the following October 1. The operating and capital projects budgets include proposed
expenditures and the means of financing them.
B. Public hearings are conducted to obtain taxpayer comments.
C. At a date no later than the second Board meeting of September, the budget is formally approved.
D. All budget transfers must be approved by the Budget Administrator, County Manager and/or the Board of
Commissioners depending on the type and/or amount of expenditure:
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