Comprehensive Annual Financial Report - Cobb County

COBB COUNTY, GEORGIA
NOTES TO FINANCIAL STATEMENTS
September 30, 2007
Note 2. Budgetary Information (Continued)
Adjustments necessary to convert the results of operations and fund balances at the end of the year on
the budgetary basis to the GAAP basis are as follows:
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses
General Fire Nonmajor Special
Fund Fund Revenue Funds
Budgetary Basis
Encumbrances 9/30/07
Grant-length Plans
GAAP Basis
$ (4,926,108) $ (7,695,623) $ 6,405,827
3,029,094 1,916,097 46,267
- - 84,228
$ (1,897,014) $ (5,779,526) $ 6,536,322
Fund Balances at End of Year
General Fire Nonmajor Special
Fund Fund Revenue Funds
Budgetary Basis
Encumbrances 9/30/07
Grant-length Plans
GAAP Basis
$ 55,685,404 $ 15,025,022 $ 14,902,064
3,029,094 1,916,097 46,267
- - 1,066,957
$ 58,714,498 $ 16,941,119 $ 16,015,288
Note 3. Cash and Cash Equivalents and Investments
PRIMARY GOVERNMENT AND FIDUCIARY FUND:
Concentration of Credit Risk
No more than 40% of the entire invested portfolio may be placed with any one bank or security dealer.
The longer the maturity of a particular investment, the greater its susceptibility to market price and
credit losses. The County seeks to limit such risk by maintaining conservative maturities that are within
guidelines recommended by the Government Finance Officers Association ("GFOA"). These
guidelines generally recommend avoiding securities with maturities beyond five years unless the
investment is matched and held to a specific maturity.
Custodial credit risk – deposits and investments
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover deposits or will not be able to recover collateral
securities that are in the possession of an outside party. State statutes require all deposits and
investments (other than federal or state government instruments) to be collateralized by depository
insurance, obligations of the U.S. government, or bonds of public authorities, counties or municipalities.
As of September 30, 2007, $5,146,607 of the agency funds deposits were exposed to custodial credit
risk as uninsured and uncollateralized deposits.
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