1. Chowan County, North Carolina Annual Financial Report Fiscal Year Ended June 30, 2010

2. Audit Highlights  Unqualified opinion  Cooperative staff  Internal control findings  Increase in fund balance in general fund of $1,991,631  Available fund balance 13.8% of general fund expenditures and transfers.

3. Audit Process  Planning and risk assessment  Interim procedures  Final procedures  Year-round process

4. General Fund Summary

5. Total Fund Balance General Fund $1,991,631

6. Fund Balance Position General Fund 20102009 Total Fund Balance$2,642,477$650,846 Required Reservations (589,631)(650,846) Available fund balance$ 2,052,846$ 0

7. Fund Balance as a Percent of Expenditures General Fund Total Fund Balance – GF (Numerator) Total Expenditures + Transfers out –GF (Denominator) = 18% $ 2,642,477 15,105,212

8. Total Fund Balance as a Percent of Expenditures plus Transfers General Fund

9. Top 3 Revenues: General Fund Other Revenue: Other taxes and licenses Unrestricted Intergovernmental Permits & Fees Sales & Services Investment Income Misc. Revenue Top 3 Comprise $14,537,968 (87%) of Revenues

10. Property Tax

11. Sales Tax

12. Restricted Intergovt’l

13. Top 3 Expenditures: General Fund Expenditures Total $15,482,526

14. General Government Expenditures

15. Public Safety Expenditures

16. Human Services Expenditures

17. Education Expenditures

18. Summary of Enterprise Funds Net Income Water$ 116,289 Solid Waste 109,033 Emergency Management (470,923) Water Storm Preparedness 2,743 Water Development 60,060

19. Enterprise Fund – Water Fund 20102009 Cash$ 493,692$ 0 Available Net Assets 536,129 98,675 Cash flow from operations 530,978 626,787 Debt service requirement 2010 0 13,340

20. Enterprise Fund –Solid Waste Fund 20102009 Cash$ 129,665$ 0 Available Net Assets 109,033 0 Cash flow from operations 367,823 0 Debt service requirement 2010 0 0

21. Enterprise Fund – Emergency Management Fund 20102009 Cash$ 58,385$ 197,819 Available Net Assets 67,791 490,590 Cash flow from operations (54,757) 156,717 Debt service requirement 2010 34,647 52,182

22. Water Capital Reserve Funds Cash Balances:  Storm preparedness$ 587  Water Development $ 510,243

23. Discussion & Questions