Comprehensive Annual Financial Report - Cobb County

COBB COUNTY, GEORGIA
NOTES TO FINANCIAL STATEMENTS
September 30, 2007
Note 13. Segment Information – Nonmajor Enterprise Fund (Continued)
Condensed Statement of Cash Flows
Net cash provided (used) by:
Operating activities $
Noncapital financing activities
Capital and related financing activities
Investing activities
Net increase (decrease)
Beginning cash and cash equivalents $
Ending cash and cash equivalents $
601,781
(2,816)
(684,847)
16,130
(69,752)
670,600
600,848
Note 14.
Deficit Fund Balances/Net Assets of Individual Funds
Deficit Fund Balance/
Fund
Net Assets
Solid Waste Disposal Enterprise Fund $ 53,483,474
The deficit in the Solid Waste Disposal Enterprise Fund arises because of the application of generally
accepted accounting principles to the financial reporting for enterprise funds in which an expense
provision and related liability are being recognized based on the future closure and postclosure care
costs. For the past few years, revenues have remained steady and a management plan was adopted so
that expenses would not rise above the normal operational costs to run the facilities. Although the
total equity of the Solid Waste Disposal Fund at September 30, 2007 was a deficit of $53,483,474, the
estimate for the required landfill closure and postclosure costs represents $27,059,236 of this amount.
Note 15.
Contingent Liabilities
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the County
expects such amount, if any, to be immaterial.
The Single Audit, as required by OMB Circular A-133, including the independent auditor’s reports
on compliance and internal controls, is presented in the compliance section.
Cobb County is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, in the opinion of the County attorney, the resolution of these matters will not
have a material adverse effect on the financial condition of the County.
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