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ROCKINGHAM COUNTY_ NORTH CAROLINA

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					       ROCKINGHAM COUNTY,
         NORTH CAROLINA




              COMPREHENSIVE
             ANNUAL FINANCIAL
                 REPORT

FOR THE FISCAL YEAR ENDED JUNE 30, 2009




             Prepared By: Finance Department

                    Michael W. Apple
  Assistant County Manager/Director for Financial Services
          ROCKINGHAM COUNTY, NORTH CAROLINA
                    Comprehensive Annual Financial Report
                      For the Year Ended June 30, 2009

                             TABLE OF CONTENTS

                                                                                       Page
                                Introductory Section
          Letter of Transmittal                                                         i-vi
          Organizational Chart                                                          vii
          List of Principal Officials                                                   viii
          2008 GFOA Certificate of Achievement for Excellence in Financial Reporting     ix

                                    Financial Section

          Independent Auditors' Report                                                  1-2
          Management's Discussion and Analysis                                         3-13


Exhibit   Basic Financial Statements - Overview

          Government-Wide Financial Statements:

  A       Statement of Net Assets                                                       14

  B       Statement of Activities                                                      15-16

          Fund Financial Statements:

  C       Balance Sheet - Governmental Funds                                            17

  D       Statement of Revenues, Expenditures, and Changes
          in Fund Balances - Governmental Funds                                         18

  D       Reconciliation of the Statement of Revenues, Expenditures,
          and Changes in Fund Balances - Governmental Funds to the
          Statement of Activities                                                       19

  E       Statement of Revenues, Expenditures, and Changes
           in Fund Balances - Budget and Actual-
           General Fund                                                                 20

 E-1      Statement of Revenues, Expenditures, and Changes
           in Fund Balances - Budget and Actual-
           Capital Reserve Fund                                                         21

  F       Statement of Net Assets - Proprietary Funds                                   22

  G       Statement of Revenues, Expenses, and Changes in
          Fund Net Assets - Proprietary Funds                                           23

  H       Statement of Cash Flows - Proprietary Funds                                   24

   I      Statement of Fiduciary Net Assets - Fiduciary Funds                           25

  J       Statement of Changes in Fiduciary Net Assets - Fiduciary Funds                26

          Notes to the Financial Statements                                            27-58
           ROCKINGHAM COUNTY, NORTH CAROLINA
                     Comprehensive Annual Financial Report
                       For the Year Ended June 30, 2009

                             TABLE OF CONTENTS

Schedule                                                              Page
           Required Supplemental Financial Data:

  A-1      Law Enforcement Officers' Special Separation
           Allowance Required Supplementary Information                59

  A-2      Other Post-Employment Benefits - Retiree Health Plan        60

           Combining and Individual Fund Statements & Schedules:

  B-1      Nonmajor Governmental Funds - Combining Balance Sheet       61

  B-2      Nonmajor Governmental Funds -
           Combining Statement of Revenues, Expenditures, and
           Changes in Fund Balances                                    62

  B-3      Nonmajor Special Revenue Funds - Combining Balance Sheet   63-64

  B-4      Nonmajor Special Revenue Funds -
           Combining Statement of Revenues, Expenditures, and
           Changes in Fund Balances                                   65-66

  B-5      Nonmajor Capital Project Funds - Combining Balance Sheet   67-68

  B-6      Nonmajor Capital Project Funds -
           Combining Statement of Revenues, Expenditures, and
           Changes in Fund Balances                                   69-70

           General Fund:

  C-1      General Fund -
           Schedule of Revenues, Expenditures,
           and Changes in Fund Balance - Budget and Actual            71-81

  C-2      Area Mental Health Program -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                        82-83

  C-3      Public Health Program -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                        84-85

  C-4      Social Services Program -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                        86-87

  C-5      Youth Involvement Program -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                        88-90
           ROCKINGHAM COUNTY, NORTH CAROLINA
                    Comprehensive Annual Financial Report
                      For the Year Ended June 30, 2009

                             TABLE OF CONTENTS


Schedule                                                     Page
           Supplementary Information - continued:

           Special Revenue Funds:

  D-1      Capital Reserve -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                91

  D-2      Fire Districts -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual               92-93

  D-3      Tourism Development -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                94

  D-4      Emergency Telephone System -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                95

  D-5      CDBG Grant -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                96

  D-6      CDBG Scattered Site Housing -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                97

  D-7      Duke Power Help Program -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                98

  D-8      Vera Holland Stoneville Library -
           Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual                99
           ROCKINGHAM COUNTY, NORTH CAROLINA
                     Comprehensive Annual Financial Report
                       For the Year Ended June 30, 2009

                             TABLE OF CONTENTS

Schedule                                                                            Page

           Supplementary Information - continued:

           Debt Service Fund:

  E-1      Debt Service Fund - Schedule of Revenues, Expenditures,
           and Changes in Fund Balance - Budget and Actual                          100

           Capital Projects Funds:

  F-1      Courthouse Capital Project Fund - Schedule of Revenues, Expenditures,
           and Changes in Fund Balance - Budget and Actual                          101

  F-2      EOC and Tower Capital Project Fund - Schedule of Revenues,
           Expenditures, and Changes in Fund Balance - Budget and Actual            102

  F-3      School Capital Projects Fund - Schedule of Revenues, Expenditures,
           and Changes in Fund Balance - Budget and Actual                          103

  F-4      Airport Capital Projects Fund - Schedule of Revenues, Expenditures,
           and Changes in Fund Balance - Budget and Actual                          104

  F-5      EMS Capital Projects Fund - Schedule of Revenues, Expenditures,
           and Changes in Fund Balance - Budget and Actual                          105

  F-6      Equestrian Center Capital Project Fund - Schedule of Revenues,
           Expenditures, and Changes in Fund Balance - Budget and Actual            106

  F-7      Library Capital Project Fund - Schedule of Revenues,
           Expenditures, and Changes in Fund Balance - Budget and Actual            107

  F-8      Animal Shelter Capital Project Fund - Schedule of Revenues,
           Expenditures, and Changes in Fund Balance - Budget and Actual            108

           Enterprise Funds:

  G-1      Water Fund - Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual (NON-GAAP, MODIFIED
           ACCRUAL)                                                                109-110

  G-2      Sewer Fund - Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual (NON-GAAP, MODIFIED
           ACCRUAL)                                                                111-112

  G-3      Landfill Fund - Schedule of Revenues, Expenditures, and Changes
           in Fund Balance - Budget and Actual (NON-GAAP, MODIFIED
           ACCRUAL)                                                                113-114

  G-4      Sewer and Water Capital Projects Fund -
           Schedule of Revenues, Expenditures, and Other Financing
           Sources (Uses) - Budget and Actual                                       115
           ROCKINGHAM COUNTY, NORTH CAROLINA
                     Comprehensive Annual Financial Report
                       For the Year Ended June 30, 2009

                             TABLE OF CONTENTS

Schedule                                                              Page

           Internal Service Fund:

  H-1      Combining Statement of Net Assets                          116

  H-2      Combining Statement of Revenues, Expenses, and Changes
           in Fund Net Assets                                         117

  H-3      Combining Statement of Cash Flows                          118

  H-4      General Insurance Deductible -
           Schedule of Revenues, Expenditures, and Changes in Fund
           Balance - Financial Plan and Actual                        119

  H-5      Workman's Compensation -
           Schedule of Revenues, Expenditures, and Changes in Fund
           Balance - Financial Plan and Actual                        120

  H-6      Health Insurance
           Schedule of Revenues, Expenditures, and Changes in Fund
           Balance - Financial Plan and Actual                        121

  H-7      Cafeteria Plan
           Schedule of Revenues, Expenditures, and Changes in Fund
           Balance - Financial Plan and Actual                        122

           Agency Funds - Fiduciary Funds:

  I-1      Combining Statement of Fiduciary Assets and Liabilities    123

  I-2      Combining Statement of Changes in Fiduciary
           Assets and Liabilities                                     124

           Supplemental Financial Data:

  J-1      Schedule of Cash and Investment Balances                  125-126

  K-1      Schedule of Ad Valorem Taxes Receivable                    127

  L-1      Analysis of Current Tax Levy                               128
        ROCKINGHAM COUNTY, NORTH CAROLINA
                  Comprehensive Annual Financial Report
                    For the Year Ended June 30, 2009

                           TABLE OF CONTENTS

Table   Statistical Section:                                        Page

 1      Net Assets By Component, Last Seven Fiscal Years            129

 2      Changes in Net Assets, Last Seven Fiscal Years             130-131

 3      Governmental Activities Tax Revenues By Source,
        Last Seven Fiscal Years                                     132

 4      Fund Balances of Governmental Funds,
        Last Ten Fiscal Years                                      133-134

 5      Changes in Fund Balances of Governmental Funds,
        Last Ten Fiscal Years                                      135-136

 6      General Governmental Tax Revenues By Source,
        Last Ten Fiscal Years                                       137

 7      Assessed Value and Estimated Actual Value of Taxable
        Property, Last Ten Fiscal Years                            138-139

 8      Property Tax Rates - Direct and Overlapping Governments,
        Last Ten Years                                             140-141

 9      Principal Property Taxpayers - Current Year
        And Nine Years Ago                                          142

 10     Property Tax Levies and Collections,
        Last Ten Fiscal Years                                       143

 11     Ratio of Outstanding Debt By Type,
        Last Ten Fiscal Years                                      144-145

 12     Ratios of General Bonded Debt Outstanding,
        Last Ten Fiscal Years                                       146

 13     Direct and Overlapping Governmental Activities Debt         147

 14     Legal Debt Margin, Last Ten Fiscal Years                   148-149

 15     Pledged-Revenue Coverage, Last Ten Fiscal Years            150-151

 16     Demographic and Economic Statistics,
        Last Ten Fiscal Years                                       152

 17     Principal Employers, Current Year and Nine Years Ago        153

 18     Full-Time Equivalent County Government Employees
        By Function, Last Ten Fiscal Years                          154

 19     Operating Indicators By Function,
        Last Ten Fiscal Years                                       155

 20     Capital Asset Statistics By Function,
        Last Ten Fiscal Years                                      156-157
i
ii
iii
iv
v
vi
vii
Rockingham County
List of Principal Officials
6/30/2009

Board of County    Amelia W. Dalls, Chairman
Commissioners
                   Harold A. Bass, Sr, Vice Chairman

                   W. Thomas Flynt

                   James E. Kallam

                   Bobby R. Stanley



County Officials   Tom Robinson                  County Manager

                   Michael Apple                 Assistant County Manager for Financial Services

                   Eugene Russell                County Attorney

                   John Dean                     Human Services Director

                   Pamela Robertson              Clerk of the Board

                   Sam Page                      Sheriff

                   Rebecca Cipriani              Register of Deeds

                   Brenda Sutton                 Cooperative Extension Director

                   Tom Wiggins                   Planning & Inspections Director

                   Tara Pierce                   Youth Involvement Director




                                         viii
         Certificate of
          Achievement
         for Excellence
          in Financral
           Reporting
                     Presented to


    Rockingham County
           North Carolrna
          For its Comprehensive Annual
                  Financial Report
             for the Fiscal Year Ended
                    June 30.2008

 A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
     Association of the United States and Canada to
    governrnent units and public employee retirement
     systerns whose comprehensive annual financial
            reports (CAFRs) achieve the highest
            standards in government accounting
                   and financial reporting.


                          tr        ..


                      ft-,
                       -Ff,'
                      f             r      _I
                     tlEh'-
                    f'T

                                         President



                               fuftu*
                               Executive Director




                               ix
                                INDEPENDENT AUDITORS' REPORT


To the Board of Commissioners
Rockingham County, North Carolina

We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of Rockingham County, North Carolina, as of and for the year ended June 30, 2009, which
collectively comprise the County’s basic financial statements as listed in the table of contents. These
financial statements are the responsibility of Rockingham County’s management. Our responsibility is to
express an opinion on these basic financial statements based on our audit. We did not audit the financial
statements of the Rockingham County Airport Authority which represents 100% respectively, of the net
assets, fund balance and revenues of the component unit. Those financial statements were audited by
other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the
amounts included for the Rockingham County Airport Authority, is based solely on the reports of the
other auditors.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the basic financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the basic financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall basic financial
Statement presentation. We believe that our audit and the report of the other auditors provide a
reasonable basis for our opinion.

In our opinion, based on our audit and the report of the other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of Rockingham County, North Carolina, as of June 30, 2009, and
the respective changes in financial position and cash flows, where appropriate, thereof and the respective
budgetary comparison for the General Fund and the Capital Reserve Fund for the year then ended in
conformity with accounting principles generally accepted in the United States of America.

Management’s Discussion and Analysis, the Law Enforcement Officers’ Special Separation Allowance
Required Supplementary Information, and the Other Post-Employment Benefits-Retiree Health Plan
Required Supplementary Information are not required parts of the basic financial statements but is
supplementary information required by the Governmental Accounting Standards Board. We and the other
auditors have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion thereon.


     730 13th Avenue Drive SE ♦ Hickory, North Carolina 28602 ♦ Phone 828-327-2727 ♦ Fax 828-328-2324
     13 South Center Street ♦ Taylorsville, North Carolina 28681 ♦ Phone 828-632-9025 ♦ Fax 828-632-9085
                 Toll Free Both Locations 1-800-948-0585 ♦ Website: www.martinstarnes.com
In accordance with Government Auditing Standards, we have also issued a report dated October 26, 2009,
on our consideration of Rockingham County's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.

Our audit was performed for the purpose of forming an opinion on financial statements that collectively
comprise the basic financial statements of Rockingham County, North Carolina. The combining and
individual major and nonmajor fund statements and schedules are not a required part of the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly Stated in all material respects, in relation to the
basic financial statements taken as a whole.

Other data in this report, designated as “Introductory Section” and “Statistical Section” in the table of
contents, except as noted above, have not been audited by us and, accordingly, we express no opinion on
such data.




Martin Starnes & Associates, CPAs, P.A.
October 26, 2009




                                                     2
                       Management’s Discussion and Analysis


As management of Rockingham County, we offer readers of Rockingham County’s
financial statements this narrative overview and analysis of the financial activities of
Rockingham County for the fiscal year ended June 30, 2009. We encourage readers to
read the information presented here in conjunction with additional information that we
have furnished in the County’s financial statements, which follow this narrative.

Financial Highlights

 •   The assets of Rockingham County exceeded its liabilities at the close of the fiscal
     year by $26,301,754 (net assets).
 •   The government’s total net assets decreased by $749,199.
 •   As of the close of the current fiscal year, Rockingham County’s governmental funds
     reported combined ending fund balances of $58,135,113, a increase of $35,370,740
     in comparison with the prior year. Approximately 93 percent of this total amount,
     or $54,340,778, is available for spending at the government’s discretion
     (unreserved fund balance). A large part (approximately $32 million) of the
     unreserved fund balance is unexpended debt proceeds that will be used to finance
     the completion of major capital projects currently underway.
 •   At the end of the current fiscal year, unreserved fund balance for the General Fund
     was $13,702,673 or 17 percent of total general fund expenditures for the fiscal year.
 •   Rockingham County’s total long-term obligations increased by $53,508,241 during
     the current fiscal year. The key factor in this increase was the issuance of
     $52,135,000 in Certificates of Participation for the construction of a new judicial
     complex and other governmental facilities.
 •   The County holds a bond rating of A2 for Moody’s Investors Service and A+ for
     Standard & Poors.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to Rockingham
County’s basic financial statements. The County’s basic financial statements consist of
three components; 1) government-wide financial statements, 2) fund financial statements,
and 3) notes to the financial statements (see Figure 1). The basic financial statements
present two different views of the County through the use of government-wide statements
and fund financial statements. In addition to the basic financial statements, this report
contains other supplemental information that will enhance the reader’s understanding of
the financial condition of Rockingham County.




                                            3
                  Required Components of Annual Financial Report
                                         Figure 1


             Management’s                                  Basis
             Discussion and                              Financial
                Analysis                                Statements




  Government-wide                        Fund                        Notes to the
     Financial                         Financial                      Financial
    Statements                        Statements                     Statements


                Summary                                        Detail



The first two statements (Exhibits A and B) in the basic financial statements are the
Government-wide Financial Statements. They provide both short and long-term
information about the County’s financial status.

The next statements are Fund Financial Statements. These statements focus on the
activities of the individual parts of the County’s government. These statements provide
more detail than the government-wide statements. There are four parts to the Fund
Financial Statements: 1) the governmental funds statements; 2) the budgetary
comparison statements; 3) the proprietary fund statements; and 4) the fiduciary and
agency fund statements.

The final section of the basic financial statements is the notes. The notes to the financial
statements explain in detail some of the data contained in those statements. After the
notes, supplemental information is provided to show details about the County’s non-
major governmental funds and internal service funds, all of which are added together in
one column on the basic financial statements. Budgetary information required by the
General Statutes also can be found in this part of the statements.

Government-wide Financial Statements. The government-wide financial statements are
designed to provide the reader with a broad overview of the County’s finances, similar in
format to a financial statement of a private-sector business. The government-wide




                                             4
statements provide short and long-term information about the County’s financial status as
a whole.

The two government-wide statements report the County’s net assets and how they have
changed. Net assets are the difference between the County’s total assets and total
liabilities. Measuring net assets is one way to gage the County’s financial condition.

The government-wide statements are divided into three categories: 1) governmental
activities; 2) business-type activities; and 3) component units. The governmental
activities include most of the County’s basic services such as public safety, parks and
recreation, and general administration. Property taxes and state and federal grant funds
finance most of these activities. The business-type activities are those that the County
charges customers to provide. These include the water, sewer and landfill services
offered by Rockingham County. The final category is the component units. Rockingham
County Airport is a public airport operated by an authority that is financially dependent
on the County for support. The County appoints the members of the Airport Authority.

The government-wide financial statements are on Exhibits A and B of this report.

Fund Financial Statements. The fund financial statements provide a more detailed look
at the County’s most significant activities. A fund is a grouping of related accounts that
is used to maintain control over resources that have been segregated for specific activities
or objectives. Rockingham County, like all other governmental entities in North
Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance)
with finance-related legal requirements, such as the General Statutes or the County’s
budget ordinance. All of the funds of Rockingham County can be divided into three
categories: governmental funds, proprietary and fiduciary funds.

Governmental Funds – Governmental funds are used to account for those functions
reported as governmental activities in the government-wide financial statements. Most of
the County’s basic services are accounted for in governmental funds. These funds focus
on how assets can readily be converted into cash flow in and out, and what monies are
left at year-end that will be available for spending in the next year. Governmental funds
are reported using an accounting method called modified accrual accounting which
provides a current financial resources focus. As a result, the governmental fund financial
statements give the reader a detailed short-term view that helps him or her determine if
there are more or less financial resources available to finance the County’s programs.
The relationship between governmental activities (reported in the Statement of Net
Assets and the Statement of Activities) and governmental funds is described in a
reconciliation that is a part of the fund financial statements.

Rockingham County adopts an annual budget for its General Fund, as required by the
General Statutes. The budget is a legally adopted document that incorporates input from
the citizens of the County, the management of the County, and the decisions of the Board
about which services to provide and how to pay for them. It also authorizes the County
to obtain funds from identified sources to finance these current period activities. The
budgetary statement provided for the General Fund demonstrates how well the County
complied with the budget ordinance and whether or not the County succeeded in




                                             5
providing the services as planned when the budget was adopted. The budgetary
comparison statement uses the budgetary basis of accounting and is presented using the
same format, language, and classifications as the legal budget document.

Proprietary Funds – Rockingham County has one kind of proprietary fund. Enterprise
Funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. Rockingham County uses enterprise funds to
account for its water and sewer activity and for its solid waste operations. These funds
are the same as those functions shown in the business-type activities in the Statement of
Net Assets and the Statement of Activities.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit
of parties outside the government. Rockingham County has two fiduciary funds and
three agency funds. The fiduciary funds financial statements can be found beginning on
page 25 of this report.

Notes to the Financial Statements – The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements. The notes to the financial statements start on page 27 of this report.

Supplementary Information – In addition to the basic financial statements and
accompanying notes, this report includes certain required supplementary information
concerning Rockingham County’s progress in funding its obligation to provide pension
benefits to its employees. Required supplementary information can be found beginning
on page 59 of this report.

Government-wide Financial Analysis

As noted earlier, net assets may serve over time as one useful indicator of a government’s
financial condition as shown in figure 2. The assets of Rockingham County exceeded
liabilities by $26,301,754 as of June 30, 2009. Net assets for the County are reported in
three categories: Invested in capital assets, net of related debt of $28,691,441; restricted
assets of $74,951; and unrestricted assets of ($2,464,638). The largest portion reflects the
County’s investment in capital assets (e.g. land, buildings, machinery, and equipment),
less any related debt still outstanding that was issued to acquire those items. The County
uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although Rockingham County’s investment in its capital
assets is reported net of the outstanding related debt, the resources needed to repay that
debt must be provided by other sources, since the capital assets cannot be used to
liquidate these liabilities.

The restricted portion of the County’s net assets (.2%) represents resources that are
subject to external restrictions on how they may be used.




                                             6
                                        Rockingham County’s Net Assets
                                                        Figure 2


                                               Governmental               Business-type
                                                  Activities                 Activities                  Total
                                             2009            2008       2009            2008      2009           2008

Current and other assets                 $ 71,502,931 $ 33,982,711 $ 13,984,918 $ 12,691,957 $ 85,487,849 $ 46,674,668
Capital assets                              35,223,264   17,083,535   21,855,160   23,084,969    57,078,424   40,168,504
      Total assets                       $ 106,726,195 $ 51,066,246 $ 35,840,078 $ 35,776,926 $ 142,566,273 $ 86,843,172

Long-term liabilities outstanding        $ 92,217,436 $ 37,930,503 $ 15,130,456 $ 15,930,294 $ 107,347,892 $ 53,860,797
Other liabilities                           7,742,927    4,797,090    1,173,700    1,134,332     8,916,627    5,931,422
       Total liabilities                   99,960,363   42,727,593   16,304,156   17,064,626   116,264,519   59,792,219

Net assets:
   Invested in capital assets, net of
    related debt                           15,437,075  15,792,749  13,254,366   13,656,199   28,691,441   29,448,948
   Restricted                                  74,951      30,405           -            -       74,951       30,405
   Unrestricted                            (8,746,194) (7,484,501)  6,281,556    5,056,101   (2,464,638)  (2,428,400)
       Total net assets                  $ 6,765,832 $ 8,338,653 $ 19,535,922 $ 18,712,300 $ 26,301,754 $ 27,050,953




The other category of net assets is unrestricted net assets. At June 30, 2009 the total net
deficit of ($2,464,638) is attributable to the portion of the County’s outstanding debt
incurred for the school system within the governmental activities. Under North Carolina
law, the county is responsible for providing capital funding for the school system. The
county has chosen to meet its legal obligation to provide the school system capital
funding by using a mixture of County funds and installment financings. The assets
funded by the County, however, are titled to, and utilized by the school system. Since the
County, as the issuing government, acquires no assets, the County has incurred a liability
without a corresponding increase in assets. The breakdown of unrestricted portion of net
assets is defined as follows:

                       School System Debt                     $(32,470,754)
                       All other unrestricted                   30,006,116
                       Total unrestricted (Deficit)           $( 2,464,638)

The amount reported in the total unrestricted category decreased from $2,428,400 as of
June 30, 2008 to $2,464,638 as of June 30, 2009.

The County’s net assets decreased by $749,199 during the current fiscal year.




                                                              7
                                     Rockingham County Changes in Net Assets
                                                   Figure 3


                                                Governmental                       Business-Type
                                                  Activities                         Activities                          Total
                                             2009            2008               2009            2008              2009            2008

Revenues:
 Program revenues:
    Charges for services                  $ 7,271,134    $    9,214,738    $    4,153,465    $    4,272,074   $ 11,424,599    $ 13,486,812
    Operating grants and contributions     20,222,312        20,329,258            18,098             5,334     20,240,410      20,334,592
    Capital grants and contributions        1,394,136           152,020            50,525                 -      1,444,661         152,020
 General revenues:
    Property taxes                         48,984,504        48,879,221                 -                 -     48,984,504       48,879,221
    Other taxes                            10,872,022        13,315,239                 -                 -     10,872,022       13,315,239
 Other                                      2,070,698         1,829,113           292,804           494,432      2,363,502        2,323,545
      Total revenues                       90,814,806        93,719,589         4,514,892         4,771,840     95,329,698       98,491,429

Expenses:
 General government                        14,807,087        15,279,334                 -                 -     14,807,087       15,279,334
 Public safety                             18,619,537        17,313,963                 -                 -     18,619,537       17,313,963
 Economic and physical development          3,627,254         2,921,881                 -                 -      3,627,254        2,921,881
 Human services                            29,461,487        29,040,198                 -                 -     29,461,487       29,040,198
 Cultural and recreation                    1,639,147         1,756,447                 -                 -      1,639,147        1,756,447
 Education                                 19,577,036        19,121,721                 -                 -     19,577,036       19,121,721
 Interest on long-term debt                 3,801,120         1,745,809                 -                 -      3,801,120        1,745,809
 Landfill                                           -                 -         3,235,812         2,328,560      3,235,812        2,328,560
 Water and sewer                                    -                 -         1,310,417         1,097,493      1,310,417        1,097,493
       Total expenses                      91,532,668        87,179,353         4,546,229         3,426,053     96,078,897       90,605,406

Increase in net assets before transfers      (717,862)        6,540,236           (31,337)        1,345,787       (749,199)       7,886,023

Transfers                                    (854,959)         (923,000)         854,959           923,000               -          68,041

Increase (Decrease) in net assets          (1,572,821)        5,617,236           823,622         2,268,787       (749,199)       7,886,023
Net assets, July 1                          8,338,653         2,721,417        18,712,300        16,443,513     27,050,953       19,164,930

Net assets, June 30                       $ 6,765,832    $    8,338,653    $ 19,535,922      $ 18,712,300     $ 26,301,754    $ 27,050,953




    Governmental Activities. Governmental activities decreased net assets by $1,572,821.
    Primary elements for this decrease are increases in human service and public safety
    expenditures over prior year amounts combined with a decrease in fees for services
    related to the human service function. Receivables, and thus revenues, relating to mental
    health services decreased significantly in the current year, accounting for a
    significant decrease in charges for services.

    Business-type Activities. Business-type activities increased Rockingham County’s net
    assets by $823,622, consisting of increases of $275,558, $120,239, and $477,825 in the
    Water Fund, Sewer Fund and Landfill Fund, respectively.

    Financial Analysis of the County’s Funds

    As noted earlier, Rockingham County uses fund accounting to ensure and demonstrate
    compliance with finance-related legal requirements.




                                                                    8
Governmental Funds. The focus of Rockingham County’s governmental funds is to
provide information on near-term inflows, outflows, and balances of usable resources.
Such information is useful in assessing Rockingham County’s financing requirements.
Specifically, unreserved fund balance can be a useful measure of a government’s net
resources available for spending at the end of the fiscal year.

General Fund - The General Fund is the chief operating fund of Rockingham County. At
the end of the current fiscal year, unreserved fund balance of the General Fund was
$13,702,673, while total fund balance reached $16,937,004. As a measure of the General
Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund
balance to total fund expenditures. Unreserved fund balance represents 17 percent of
total General Fund expenditures, while total fund balance represents 21 percent of that
same amount.

The fund balance of Rockingham County’s General Fund decreased by $118,816 during
the current fiscal year. A number of factors, both positive and negative, were key in this
reduction. In 2006 the County committed to provide start-up funds from fund balance
over a three year period to create a County Mental Health Agency as a provider of
services. For the fiscal year ended June 30, 2009 the County provided $1,362,140. The
County has decided to terminate the agency and privatize the service going forward. Due
to the nation-wide economic slowdown, a number of revenues were below expected
levels including sales taxes, investment earnings and fees for services related to the
construction industry. However, offsetting these reductions were several positive factors.
The county’s share of Medicaid cost, which will be assumed in total by the state next
year, were $721,750 less than the amount budgeted. Collections for ambulance fees
exceeded the amount budgeted by $658,000, due primarily to the catch-up of Medicaid
billings that were not collected the previous year due a problem with a new billing
software. And finally, steps were taken at mid-year as a result of the economic crisis to
curtail spending wherever possible to help offset the anticipated loss of revenues.

At June 30, 2009, the governmental funds of Rockingham County reported a combined
fund balance of $58,135,113, a $35,370,740 increase over last year. This increase was
due primarily to the unexpended debt proceeds from the 2008 COPS issue, most of which
are in the Courthouse Capital Project Fund.




                                            9
Proprietary Funds. Rockingham County’s proprietary funds provide the same type of
information found in the government-wide statements but in more detail. Unrestricted
net assets of the Landfill Fund at the end of the fiscal year amounted to $6,222,555, the
Water Fund equaled ($88,845) and the Sewer Fund equaled $147,846. The total growth
in net assets for each fund was $427,825 - Landfill, $275,558 - Water, and $120,239 –
Sewer, respectively. Other factors concerning the finances of these funds have already
been addressed in the discussion of Rockingham County’s business-type activities.

General Fund Budgetary Highlights. During the fiscal year, the County revised the
budget on several occasions. Generally, budget amendments fall into one of three
categories: 1) amendments made to adjust the estimates that are used to prepare the
original budget ordinance once exact information is available; 2) amendments made to
recognize new funding amounts from external sources, such as Federal and State grants;
and 3) increases in appropriations that become necessary to maintain services. Total
amendments to the General Fund increased revenues by $3,272,859 or 4%. The majority
of the amendments were due to additional federal and state grants for human services.

The actual operating revenues of the General Fund were less than final budgeted amounts
by $1,757,781. This shortfall was due mainly to the negative budget variance in the
human service program revenues for grants from federal and State sources and program
service fees. This negative budget variance was due to actual activities being less than
planned activities and was offset by a reduction in corresponding expenditures. Actual
operating expenditures for the General Fund were $6,239,350 less than the amount
budgeted.

Capital Asset and Debt Administration

Capital assets. Rockingham County’s investment in capital assets for its governmental
and business–type activities as of June 30, 2009, totals $57,078,424 (net of accumulated
depreciation). These assets include buildings, land, machinery and equipment and
vehicles.

Major capital asset transactions during the year include:

   •   Purchase of one new ambulance and one remount for the Emergency Services
       Department
   •   Purchase of eight vehicles for the Sheriff Department
   •   Phase One of 800 mega-hertz radio system for Public Safety
   •   Purchase of a dump truck and water truck for the Landfill




                                            10
                                       Rockingham County’s Capital Assets
                                                           Figure 4

                                                      (net of depreciation)

                             Governmental                     Business-Type
                               Activities                        Activities                                            Total
                          2009            2008             2009             2008                           2009                2008

  Land              $    2,290,781 $      2,290,781 $        738,449        $          738,449     $       3,029,230 $          3,029,230

  Buildings and
  system                 7,091,942        7,405,798       19,090,963                20,753,724         26,182,905              28,159,522

  Vehicles and
  equipment              3,246,687        3,020,446        2,025,748                1,592,796              5,272,435            4,613,242

  Construction in
  progress               22,593,854       4,366,510                   -                       -        22,593,854               4,366,510

  Total             $ 35,223,264 $ 17,083,535 $           21,855,160        $       23,084,969     $   57,078,424 $            40,168,504




   Additional information on the County’s capital assets can be found in note III. A. 6 of the
   Basic Financial Statements.

   Long-term Debt. As of June 30, 2009, Rockingham County had no bonded debt
   outstanding. The County had installment purchase debt of $15,834,386, certificates of
   participation of $76,880,000 and a revolving loan of $1,882,298 outstanding.

                                      Rockingham County’s Outstanding Debt

                                                        Figure 5

                                  Activities                              Activities                                      Total
                           2009                2008            2009                    2008                   2009                    2008
Bonds                $            - $          - $                     -        $              -       $             - $                     -
Installment              10,305,730   11,490,786              5,528,656                6,122,352            15,834,386              17,613,138
Participation            75,405,754   24,498,006              1,474,246                1,551,994            76,880,000              26,050,000
Revolving Loan                    -            -              1,882,298                2,070,528             1,882,298               2,070,528
                                                                                                                     -                       -
Total                $ 85,711,484 $ 35,988,792 $              8,885,200 $              9,744,874 $          94,596,684 $            45,733,666




   Rockingham County’s long-term debt increased by $48,863,018 during the past fiscal
   year due to issuance of new COPS of $52,135,000 for a new judicial facility.

   As mentioned in the financial highlights section of this document, Rockingham County
   maintained it’s A+ rating from Standard and Poor’s Corporation and A2 from Moody’s




                                                               11
Investor Services. This bond rating is a clear indication of the sound financial condition
of Rockingham County and a primary factor in keeping interest costs low on the
County’s outstanding debt.

The State of North Carolina limits the amount of general obligation debt that a unit of
government can issue to 8 percent of the total assessed value of taxable property located
within that government’s boundaries. The legal debt margin for Rockingham County is
$404,987,659. The County has no bonds authorized but un-issued at June 30, 2009.

Additional information regarding Rockingham County’s long-term debt can be found in
the notes III. B. 7 of the Basic Financial Statements.

Economic Factors

The following key indicators reflect the economic conditions of the County:

 •     Taxable retail sales for the fiscal year ended June 30, 2009 was $490,435,682.
       Due to a slowing economy a decline is expected in sales tax revenues and other
       economy sensitive revenues for next year.
 •     The County has experienced very little growth in its tax base over the last several
       years and is projecting less than 1% growth for next year.
 •     The annual labor force decreased to 44,838, compared with 45,396 in 2008.
 •     The County’s unemployment rate for 2009 was 7.7% compared to the State
       average of 6.3%.

Budget Highlights for the Fiscal Year Ending June 30, 2010

Governmental Activities. The Board approved a general fund budget of $80,318,265
for the fiscal year ending June 30, 2010, a reduction of $4,632,271 from the current year.
The operating property tax rate is $.665 per $100 assessed value. The County continued
the capital improvement tax rate of $.05 per $100 implemented during the 2006/07
budget year. One reason for the budget reduction was the elimination of both a portion of
sales tax revenues and Medicaid payments by action taken by the state General
Assembly. Another factor was the elimination of the County Mental Health Agency
through privatization. A conservative approach to other revenue estimates due to the
uncertainty of the economic recovery was a factor as well.




                                           12
The number of County employees have been reduced from 740 to 641 and another $1.7
million in departmental requests were eliminated. Priorities for the 2009/10 budget year
are construction of a new animal shelter and a regional library on the western portion of
the County. There were no increases in employee compensation and the 401K employer
contribution was removed. The County also has budgeted two days of furlough for
county employees.

Business – type Activities. The County has budgeted for increases to the rate schedules
for the Water and Sewer Funds and no fee increases in the Landfill Fund. The Landfill
Fund budgeted replacing the weight scales at a cost of $165,000 and a wheel loader at
$179,750. Both the Water Fund and the Sewer Fund continue to be subsidized by the
General Fund.

Requests for Information

This report is designed to provide an overview of the County’s finances for those with an
interest in this area. Questions concerning any of the information found in this report or
requests for additional information should be directed to the Director of Finance,
Rockingham County, P.O. Box 209, Wentworth, NC 27375 or at the website at
www.rockingham.nc.us.




                                           13
                                                                                                                  Exhibit A
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF NET ASSETS
JUNE 30, 2009



                                                                                  Business-        Total
                                                           Governmental            Type          Primary          Airport
                                                             Activities           Activities    Government       Authority
Assets and Other Debits:
Cash and cash equivalents                              $       27,199,041 $ 13,373,399 $          40,572,440 $       94,411
Taxes receivable, net                                           2,128,217            -             2,128,217              -
Accounts receivable, net                                        7,083,026      347,962             7,430,988         16,306
Internal balances                                                  20,849      (20,849)                    -              -
Inventory                                                          46,554            -                46,554         47,267
Prepaid expenses                                                        -            -                     -          3,235
Restricted cash and cash equivalents                           34,074,140      284,406            34,358,546              -
Restricted accounts receivable (net)                                    -            -                     -        280,296
Other assets, net                                                 951,104            -               951,104              -
Capital Assets:
Land and construction in progress                              24,884,635             738,449     25,623,084       2,560,297
Other capital assets, net of depreciation                      10,338,629          21,116,711     31,455,340       2,201,108
Total assets and other debits                                 106,726,195          35,840,078    142,566,273       5,202,920


Liabilities, Equity, and Other Credits:
Liabilities:
Accounts payable and accrued liabilities                        7,506,558             260,673      7,767,231        210,318
Unearned revenues                                                 236,369                   -        236,369          2,136
Long-Term Liabilities:
Due in less than one year                                       4,460,105             913,027      5,373,132         66,400
Due in more than one year                                      87,757,331          15,130,456    102,887,787        630,829
Total liabilities and other credits                            99,960,363          16,304,156    116,264,519        909,683


Net Assets:
Invested in capital assets, net of related debt                15,437,075          13,254,366     28,691,441       3,858,167
Restricted for:
  Law enforcement                                                  74,951            -                74,951               -
Unrestricted                                                   (8,746,194)   6,281,556            (2,464,638)        435,070
Total net assets                                       $        6,765,832 $ 19,535,922 $          26,301,754 $     4,293,237




The notes to the financial statements are an integral part of the financial statements.




                                                                  14
 ROCKINGHAM COUNTY, NORTH CAROLINA

 STATEMENT OF ACTIVITIES
 FOR THE YEAR ENDED JUNE 30, 2009

                                                                                                            Program Revenues
                                                                                                               Operating             Capital
                                                                                          Charges for         Grants and            Grants and
 Functions/Programs                                              Expenses                  Services          Contributions         Contributions
 Primary Government:
  Governmental Activities:
    General government                                     $        14,807,087      $           730,046   $       1,062,436    $           253,162
    Public safety                                                   18,619,537                3,373,523           1,519,997                 49,786
    Economic and physical development                                3,627,254                   35,899           1,085,795                525,559
    Human services                                                  29,461,487                3,015,871          15,548,781                      -
    Cultural and recreational                                        1,639,147                  115,795           1,005,303                101,750
    Education                                                       19,577,036                        -                   -                463,879
    Debt service - interest and fees                                 3,801,120                        -                   -                      -
     Total governmental activities                                  91,532,667                7,271,134          20,222,312              1,394,136

   Business-Type Activities:
    Water                                                              692,942                  280,933                   -                     -
    Sewer                                                              617,475                  509,990                   -                50,525
    Landfill                                                         3,235,812                3,362,542              18,098                     -
      Total business type activities                                 4,546,229                4,153,465              18,098                50,525

       Total primary government                            $        96,078,896      $        11,424,599   $      20,240,410    $         1,444,661


 Component Unit:
   Airport Authority                                                   589,738                  413,482              70,000               535,558

       Total component unit                                $           589,738      $           413,482   $          70,000    $          535,558


                                                                                    General Revenues:
                                                                                     Ad valorem taxes
                                                                                     Occupancy tax
                                                                                     Sales tax
                                                                                     Other taxes and licences
                                                                                     Unrestricted intergovernmental
                                                                                     Investment earnings
                                                                                    Transfers
                                                                                    Total general revenues and transfers


                                                                                    Change in Net Assets

                                                                                    Net Assets:
                                                                                    Beginning of year - July 1

                                                                                    End of year - June 30


The notes to the financial statements are an integral part of the financial statements.




                                                                             15
                                                                               Exhibit B




                  Net (Expense) Revenue and Changes in Net Assets
           Primary Government
     Governmental        Business Type                            Airport
       Activities          Activities          Total             Authority



 $       (12,761,443) $                      -   $       (12,761,443) $                       -
         (13,676,231)                        -           (13,676,231)                         -
          (1,980,001)                        -            (1,980,001)                         -
         (10,896,835)                        -           (10,896,835)                         -
            (416,299)                        -              (416,299)                         -
         (19,113,157)                        -           (19,113,157)                         -
          (3,801,120)                        -            (3,801,120)                         -
         (62,645,085)                        -           (62,645,085)                         -


                     -              (412,009)               (412,009)                         -
                     -               (56,960)                (56,960)                         -
                     -               144,828                 144,828                          -
                     -              (324,141)               (324,141)                         -

         (62,645,085)               (324,141)            (62,969,226)                         -



                     -                       -                        -               429,302

                     -                       -                        -               429,302



          48,984,504                         -            48,984,504                          -
             163,309                         -               163,309                          -
          10,708,713                         -            10,708,713                          -
             244,775                                         244,775
             402,415                       -                 402,415                          -
           1,423,507                 292,804               1,716,311                      6,460
            (854,959)                854,959                       -                          -
          61,072,264               1,147,763              62,220,027                      6,460


          (1,572,821)                823,622                (749,199)                 435,762



           8,338,653             18,712,300               27,050,953               3,857,475

 $         6,765,832     $       19,535,922      $        26,301,754      $        4,293,237


The notes to the financial statements are an integral part of the financial statements.




                                                                              16
                                                                                                                                                       Exhibit C

ROCKINGHAM COUNTY, NORTH CAROLINA

BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2009



                                                                                                  Capital       Courthouse            Other
                                                                           General                Reserve         Capital          Governmental
                                                                            Fund                   Fund         Project Fund          Funds             Total
 Assets:
 Cash and cash equivalents                                            $     15,986,381        $    8,361,088    $            -     $   1,490,680   $   25,838,149
 Taxes receivable                                                            2,012,601                     -                 -           115,616        2,128,217
 Accounts receivable, net                                                    5,597,742               524,917           239,612           461,805        6,824,076
 Inventory                                                                      46,554                     -                 -                 -           46,554
 Due from other funds                                                          415,815                     -                 -                 -          415,815
 Restricted cash and cash equivalents                                                -                     -        32,567,785         1,506,355       34,074,140


 Total assets                                                         $     24,059,093        $    8,886,005    $   32,807,397     $   3,574,456   $   69,326,951

 Liabilities and Fund Balances:
 Liabilities:
 Accounts payable and accrued liabilities                             $      1,977,388        $             -   $    3,153,999     $    454,365    $    5,585,752
 Deferred revenue                                                            5,144,701                      -                -          115,616         5,260,317
 Due to other funds                                                                  -                      -                -          345,769           345,769
 Total liabilities                                                           7,122,089                      -        3,153,999          915,750        11,191,838

 Fund Balances:
 Reserved for inventories                                                       46,554                     -                 -                -            46,554
 Reserved for law enforcement                                                   74,951                     -                 -                -            74,951
 Reserved by State statute                                                   3,112,826               524,917                 -           35,087         3,672,830
 Unreserved                                                                 13,702,673             8,361,088        29,653,398                -        51,717,159
 Unreserved, reported in nonmajor:
  Special revenue funds                                                                   -                 -                  -       1,182,641        1,182,641
  Debt service fund                                                                       -                 -                  -               4                4
  Capital projects funds                                                                  -                 -                  -       1,440,974        1,440,974
 Total fund balances                                                        16,937,004             8,886,005        29,653,398         2,658,706       58,135,113

 Total liabilities and fund balances                                  $     24,059,093        $    8,886,005    $   32,807,397     $   3,574,456


 Capital assets, net of accumulated depreciation, used in governmental activities
  are not current financial resources and, therefore, are not reported in the funds.                                                                   35,223,264
 Accrued interest on debt is not due and payable in the current period and,
  therefore, is not reported in the funds.                                                                                                               (929,072)
 Long-term liabilities and compensated absences are not due and payable in
  the current period and, therefore, are not reported in the funds.                                                                                    (92,217,436)
 Deferred revenues in the governmental funds are used to offset accounts
  receivable not expected to be available within 90 days of year-end. These
  receivables are a component of net assets in the Statement of Net Assets.                                                                             5,023,948
 Debt issuance costs are expensed in the governmental funds as incurred, yet
  are a deferred asset in the Statement of Net Assets, presented net of
  accumulated amortization.                                                                                                                               897,300
 The overfunding of pension obligations is not reported as an asset in the
  governmental fund statements as this is not a current financial resource.                                                                                53,804
  Internal service funds are used by management to charge insurance costs
  to individual funds. The assets and liabilities of the internal service funds
  are included in governmental activities in the Statement of Net Assets.                                                                                 578,911

 Net assets of governmental activities per Exhibit A                                                                                               $    6,765,832

The notes to the financial statements are an integral part of the financial statements.




                                                                                   17
                                                                                                                                       Exhibit D

ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009



                                                                        Capital            Courthouse           Other
                                                   General              Reserve             Capital          Governmental
                                                    Fund                 Fund             Project Fund          Funds               Total
Revenues:
 Ad valorem taxes                              $    42,965,453      $     3,325,746       $            -     $    2,851,751    $    49,142,950
 Other taxes and licenses                           10,855,665                    -                    -            261,132         11,116,797
 Unrestricted intergovernmental                        402,415                    -                    -                  -            402,415
 Restricted intergovernmental                       18,042,308              463,879                    -          1,323,792         19,829,979
 Permits and fees                                      845,027                    -                    -                  -            845,027
 Sales and services                                  7,711,066                    -                    -                  -          7,711,066
 Investment earnings                                   518,314              196,918              615,307             58,661          1,389,200
 Miscellaneous                                       1,404,005                    -              253,162            163,524          1,820,691
    Total revenues                                  82,744,253            3,986,543              868,469          4,658,860         92,258,125

Expenditures:
 Current:
   General government                                8,499,440                       -        16,523,690                  -         25,023,130
   Public safety                                    16,458,083                       -                 -          5,575,262         22,033,345
   Economic and physical development                 2,614,843                       -                 -          1,198,231          3,813,074
   Human services                                   30,816,888                       -                 -                  -         30,816,888
   Cultural and recreational                         1,765,004                       -                 -             64,477          1,829,481
   Education                                        19,537,078                       -                 -                  -         19,537,078
 Capital outlay                                              -                       -                 -             39,958             39,958
 Debt Service:
   Principal                                                    -                    -                  -         2,412,311          2,412,311
   Interest and fees                                            -                    -                  -         3,241,762          3,241,762
      Total expenditures                            79,691,336                       -        16,523,690         12,532,001        108,747,027

Revenues over (under) expenditures                    3,052,917           3,986,543           (15,655,221)       (7,873,141)       (16,488,902)

Other Financing Sources (Uses):
 Long-term debt issued                                        -                   -           46,978,755          5,156,245         52,135,000
 Premium on long-term debt issued                             -                   -              619,601                  -            619,601
 Transfers in                                         1,031,775           3,069,701                    -          5,717,082          9,818,558
 Transfers out                                       (4,203,508)         (6,360,009)            (100,000)           (50,000)       (10,713,517)
    Total other financing
    sources (uses)                                   (3,171,733)         (3,290,308)          47,498,356         10,823,327         51,859,642

Net change in fund balances                            (118,816)             696,235          31,843,135          2,950,186         35,370,740

Fund balance, beginning - July 1                    17,055,820            8,189,770            (2,189,737)         (291,480)        22,764,373


Fund balance, ending - June 30                 $    16,937,004      $     8,886,005       $   29,653,398     $    2,658,706    $    58,135,113



The notes to the financial statements are an integral part of the financial statements.




                                                                          18
                                                                                                    Exhibit D
ROCKINGHAM COUNTY, NORTH CAROLINA

RECONCILIATION OF THE STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2009


Amounts reported for governmental activities in the Statement of Activities
are different because:

Net change in fund balances - total governmental funds                                     $   35,370,740

  Statement of Activities, capital outlay is not an expense, rather it is an increase in
  capital assets.                                                                              19,890,505

  Depreciation expense allocates the costs of capital assets over their estimated useful
  lives. It is not reported as an expenditure in the governmental fund statements.              (1,750,780)

  Tax, ambulance, and other revenues in the fund statements that do not represent
  revenues earned in the current period are not recorded as revenues in the Statement
  of Activities.                                                                                (1,620,735)

  The issuance of long-term debt (e.g. bonds, leases) provides current financial
  resources to governmental funds, while the repayment of the principal of long-term
  debt consumes the current financial resources of governmental funds. Neither
  transaction, however, has any effect on net assets. Also, governmental funds report
  the effect of issuance costs, premiums, discounts, and similar items when debt is
  first issued, whereas these amounts are deferred and amortized in the Statement of
  Activities. This amount is the net effect of these differences in the treatment of
  long-term debt and related accounts.                                                         (53,335,829)

  Compensated absences expense and net pension obligation reported in the
  Statement of Activities do not require the use of current financial resources and,
  therefore, are not reported as expenditures in governmental funds.                             (559,357)

  The net revenue of certain activities of the internal service fund is reported with
  governmental activities.                                                                        432,635

Change in net assets of governmental activities                                            $    (1,572,821)




The notes to the financial statements are an integral part of the financial statements.




                                                               19
                                                                                                                            Exhibit E
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2009


                                                                   Budget Amounts                                   Variance With
                                                             Original               Final                            Final Budget
                                                             Budget                Budget             Actual         Over/Under
Revenue:
 Ad valorem taxes                                        $    42,345,449       $   42,422,559     $   42,965,453    $     542,894
 Other taxes and licenses                                     10,990,383           11,001,966         10,855,665         (146,301)
 Unrestricted intergovernmental                                  380,735              380,735            402,415           21,680
 Restricted intergovernmental                                 15,923,094           18,911,174         18,042,308         (868,866)
 Permits and fees                                                939,700              939,700            845,027          (94,673)
 Sales and services                                            8,515,480            8,566,931          7,711,066         (855,865)
 Investment earnings                                             900,000              900,000            518,314         (381,686)
 Miscellaneous                                                 1,234,334            1,378,969          1,404,005           25,036

    Total revenues                                            81,229,175           84,502,034         82,744,253        (1,757,781)

Expenditures:
 Current:
   General government                                          9,014,852            9,512,305          8,499,440        1,012,865
   Public safety                                              16,391,063           17,156,523         16,458,083          698,440
   Economic and physical development                           2,348,993            3,142,517          2,614,843          527,674
   Human services                                             32,327,675           34,666,921         30,816,888        3,850,033
   Cultural and recreational                                   1,790,388            1,889,342          1,765,004          124,338
   Education                                                  18,618,303           19,563,078         19,537,078           26,000

      Total expenditures                                      80,491,274           85,930,686         79,691,336        6,239,350

Revenues over (under) expenditures                                737,901           (1,428,652)        3,052,917        4,481,569

Other Financing Sources (Uses):
  Transfers out                                               (4,109,232)           (4,144,232)       (4,203,508)          (59,276)
  Transfers in                                                    65,155             1,059,930         1,031,775           (28,155)
  Contingency                                                   (350,000)                    -                 -                 -
  Appropriated fund balance                                    3,656,176             4,512,954                 -        (4,512,954)

    Total other financing sources (uses)                         (737,901)           1,428,652        (3,171,733)       (4,600,385)

Net change in fund balances                              $                 -   $             -          (118,816) $      (118,816)

Fund balance, beginning - July 1                                                                      17,055,820

Fund balance, ending - June 30                                                                    $   16,937,004



The notes to the financial statements are an integral part of the financial statements.




                                                                      20
                                                                                                                     Exhibit E-1
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - CAPITAL RESERVE FUND
FOR THE YEAR ENDED JUNE 30, 2009


                                                            Budget Amounts                                      Variance With
                                                       Original              Final                               Final Budget
                                                       Budget               Budget                Actual         Over/Under
Revenue:
 Local option sales tax                            $     3,757,000 $          3,757,000 $          3,325,746    $    (431,254)
 Restricted intergovernmental                                    -                    -              463,879          463,879
 Investment earnings                                             -                    -              196,918          196,918

    Total revenues                                       3,757,000            3,757,000            3,986,543          229,543

Other Financing Sources (Uses):
  Transfers out                                         (3,865,046)          (6,362,255)          (6,360,009)           2,246
  Transfers in                                                   -            1,652,434            3,069,701        1,417,267
  Appropriated fund balance                                108,046              952,821                    -         (952,821)


    Total other financing sources (uses)                (3,757,000)          (3,757,000)          (3,290,308)         466,692


Net change in fund balance                         $                - $                   -         696,235     $     696,235

Fund balance, beginning - July 1                                                                   8,189,770

Fund balance, ending - June 30                                                                $    8,886,005




The notes to the financial statements are an integral part of the financial statements.




                                                                  21
                                                                                                                                Exhibit F
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2009

                                                                            Enterprise Funds
                                                                                                                            Internal
                                                       Water               Sewer            Landfill                        Service
                                                       Fund                Fund              Fund           Total             Fund
Assets:
Current Assets:
Cash and cash equivalents                          $           -     $      150,811       $ 13,222,588   $ 13,373,399   $ 1,360,892
Accounts receivable, net                                  29,946             64,343            253,673        347,962       258,950
Restricted cash and cash equivalents                     170,644            113,762                  -        284,406             -
Total current assets                                     200,590            328,916         13,476,261     14,005,767     1,619,842

Non-current Assets:
Land and construction in progress                              -              41,784           696,665       738,449                   -
Capital assets, net of depreciation                    7,908,069           7,393,883         5,814,759    21,116,711                   -
Total non-current assets                               7,908,069           7,435,667         6,511,424    21,855,160                   -

Total assets                                           8,108,659           7,764,583       19,987,685     35,860,927         1,619,842

Liabilities and Net Assets:
Liabilities:
Current Liabilities:
Accounts payable and accrued liabilities                  87,481             56,847           116,345         260,673          991,734
Due to General Fund                                       20,849                  -                 -          20,849           49,197
Accrued vacation payable                                   4,086              4,086            28,159          36,331                -
Current portion of long-term debt                        562,865            313,831                 -         876,696                -
Total current liabilities                                675,281            374,764           144,504       1,194,549        1,040,931

Non-current Liabilities:
Accrued landfill closure and
 post-closure care costs                                       -                   -         7,045,094     7,045,094                   -
Other post-employment benefits                             6,375               6,375            64,108        76,858
Non-current portion of long-term debt                  4,253,677           3,754,827                 -     8,008,504                   -
Total non-current liabilities                          4,260,052           3,761,202         7,109,202    15,130,456                   -

Total liabilities                                      4,935,333           4,135,966         7,253,706    16,325,005         1,040,931

Net Assets:
Invested in capital assets, net
of related debt                                        3,262,171           3,480,771         6,511,424    13,254,366                -
Unrestricted net assets                                  (88,845)            147,846         6,222,555     6,281,556          578,911

Total net assets                                   $ 3,173,326       $ 3,628,617          $ 12,733,979   $ 19,535,922   $     578,911




The notes to the financial statements are an integral part of the financial statements.




                                                                      22
                                                                                                                               Exhibit G
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS - PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009


                                                                              Enterprise Funds
                                                                                                                                   Internal
                                                       Water                Sewer             Landfill                             Service
                                                       Fund                 Fund               Fund               Total              Fund
Operating Revenues:
 Charges for services                              $      279,833      $      509,990     $    3,339,420     $    4,129,243    $    7,370,268
 Other operating revenue                                    1,100                   -             23,122             24,222           116,604
  Total operating revenues                                280,933             509,990          3,362,542          4,153,465         7,486,872

Operating Expenses:
 Personnel expenses                                        68,449              68,446            671,153            808,048                 -
 Operating expenses                                       103,246             117,160            382,366            602,772                 -
 Professional expenses                                          -                   -            136,645            136,645                 -
 Supplies                                                   5,661               6,172            223,542            235,375                 -
 Insurance claims and expenses                             34,533              28,096            214,539            277,168         7,128,544
 Depreciation                                             246,365             239,515          1,527,767          2,013,647                 -
   Total operating expenses                               463,254             464,389          3,235,812          4,163,455         7,128,544

Operating income (loss)                                  (182,321)             45,601            126,730             (9,990)          358,328

Non-operating Revenue (Expense):
 Investment earnings                                        4,119               5,688            282,997            292,804            34,307
 Government grants                                              -                   -             18,098             18,098                 -
 Interest and fees                                       (229,688)           (153,086)                 -           (382,774)                -
  Total non-operating revenue (expense)                  (225,569)           (147,398)           301,095            (71,872)           34,307

Income (loss) before capital contributions
and transfers                                            (407,890)           (101,797)           427,825            (81,862)          392,635

Capital contributions                                              -           50,525                    -          50,525                    -

Income (loss) before transfers                           (407,890)             (51,272)          427,825            (31,337)          392,635

Transfers in (out)                                        683,448             171,511                    -         854,959             40,000

Change in Net Assets                                      275,558             120,239            427,825           823,622            432,635

Net Assets:
Beginning of year - July 1                              2,897,768           3,508,378         12,306,154         18,712,300           146,276

End of year - June 30                              $    3,173,326      $    3,628,617     $ 12,733,979       $ 19,535,922      $      578,911




The notes to the financial statements are an integral part of the financial statements.




                                                                       23
                                                                                                                                                                       Exhibit H

ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009

                                                                                           Enterprise Funds
                                                                                                                                                        Internal
                                                                             Water                 Sewer            Landfill                             Service
                                                                             Fund                  Fund              Fund              Total             Funds

Operating Activities:
Cash received from customers                                             $      292,775 $            525,984 $ 3,335,525 $ 4,154,284 $          -
Cash received from user departments                                                   -                    -            -           -   7,421,362
Other operating revenues                                                          1,100                    -       23,122      24,222     116,604
Cash paid to suppliers for goods and services                                  (154,916)            (161,677)  (1,006,945) (1,323,538) (7,684,342)
Cash paid to employees for services                                             (61,514)             (61,511)    (604,041)   (727,066)          -
Net cash provided (used) by operating activities                                 77,445             302,796          1,747,661         2,127,902          (146,376)

Non-capital Financing Activities:
Transfers in (out)                                                              683,448             171,511                  -          854,959             40,000
Advance to/from other funds                                                      10,615                   -                  -           10,615            (86,679)
Governmental grants                                                                   -                   -             18,098           18,098                  -
Net cash provided (used) by non-capital financing activities                    694,063             171,511             18,098          883,672            (46,679)

Capital and Related Financing Activities:
Acquisition and construction of capital assets                                  (21,815)             (20,923)         (690,574)         (733,312)                  -
Principal paid on bond maturities                                              (546,304)            (313,371)                -          (859,675)                  -
Interest paid on bond maturities                                               (229,688)            (153,086)                -          (382,774)                  -
Net cash provided (used) by capital and
 related financing activities                                                  (797,807)            (487,380)         (690,574)       (1,975,761)                  -

Investing Activities:
Interest on investments                                                            4,119               5,688           282,997          292,804             34,307
Net cash provided (used) by investing activities                                   4,119               5,688           282,997          292,804             34,307

Net increase (decrease) in cash and cash
equivalents/investments                                                         (22,180)              (7,385)        1,358,182         1,328,617          (158,748)

Cash and Cash Equivalents/Investments:
Beginning of year - July 1                                                      192,823             271,959         11,864,406        12,329,188         1,519,640

End of year - June 30                                                    $      170,644        $    264,573     $ 13,222,588      $ 13,657,805      $    1,360,892

Reconciliation of Operating Income
  (Loss) to Net Cash Provided (Used)
  by Operating Activities:
Operating income (loss)                                                  $     (182,321) $           45,601     $      126,730    $       (9,990) $        358,328
Adjustments to reconcile operating income
  (loss) to net cash provided (used) by
  operating activities:
Depreciation                                                                    246,365             239,515          1,527,767         2,013,647                   -
Change in Assets and Liabilities:
(Increase) decrease in accounts receivable                                       12,942              15,994             (3,895)          25,041             51,094
Increase (decrease) in accounts payable                                          (6,476)             (5,249)            29,947           18,222           (555,798)
Increase (decrease) in accrued vacation payable                                     560                 560              3,004            4,124                  -
Increase (decrease) in other post-employement benefits                            6,375               6,375             64,108           76,858                  -
Total adjustments                                                               259,766             257,195          1,620,931         2,137,892          (504,704)

Net cash provided (used) by operating activities                         $       77,445        $    302,796     $    1,747,661    $    2,127,902    $     (146,376)




The notes to the financial statements are an integral part of the financial statements.




                                                                                          24
                                                                                                                      Exhibit I
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF FIDUCIARY NET ASSETS - FIDUCIARY FUNDS
JUNE 30, 2009


                                                                         Pension              Private
                                                                           Trust              Purpose
                                                                          Special
                                                                        Separation            Library
                                                                        Allowance             Memorial           Agency
                                                                           Fund                Fund              Funds
Assets:
Cash and cash equivalents                                           $       630,621       $       99,737     $      45,917

Liabilities:
Accounts payable and accrued liabilities                                             -              552             45,917

Net Assets:
Held in trust for:
Employees' pension benefits                                                 630,621                      -                -


Total net assets                                                    $       630,621       $       99,185     $            -




The notes to the financial statements are an integral part of the financial statements.




                                                               25
                                                                                                                  Exhibit J
ROCKINGHAM COUNTY, NORTH CAROLINA

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009


                                                                                           Pension          Private
                                                                                             Trust          Purpose
                                                                                            Special
                                                                                          Separation        Library
                                                                                          Allowance         Memorial
                                                                                             Fund            Fund
Additions:
Rent                                                                                 $              -   $        3,450
Contributions                                                                                  89,000            8,517
Investment earnings                                                                            13,231            3,601
Total additions                                                                               102,231           15,568

Deductions:
Other expenses                                                                                      -           81,343
Benefits                                                                                       56,581                -
Total deductions                                                                               56,581           81,380

Change in net assets                                                                           45,650           (65,812)

Net assets - beginning, July 1                                                                584,971          164,997

Net assets - ending, June 30                                                         $        630,621   $       99,185




The notes to the financial statements are an integral part of the financial statements.




                                                               26
                       ROCKINGHAM COUNTY, NORTH CAROLINA
                             Notes to the Financial Statements
                          For the Fiscal Year Ended June 30, 2009


I.   Summary of Significant Accounting Policies

     The accounting policies of Rockingham County (the “County”) and its discretely presented component unit
     conform to accounting principles generally accepted in the United States of America as applicable to
     governments. The following is a summary of the more significant accounting policies:

     A.   Reporting Entity

          The County, which is governed by a five-member board of commissioners, is one of the 100 counties
          established in North Carolina under North Carolina General Statute 153A-10. As required by accounting
          principles generally accepted in the United States of America, these financial statements present the
          County and its component units, legally separate entities for which the County is financially accountable.
          GASB Statement number 14 defines component units as legally separate organizations for which the
          elected officials of the primary government are financially accountable if it appoints a voting majority of
          the organization’s governing body and a) it is able to impose its will on that organization or b) there is a
          potential for the organization to provide specific financial benefits to, or impose specific financial
          burdens upon, the primary government.

          This statement provides two methods for reporting component units in the financial statements of the
          primary government: discrete presentation and blending. Discrete presentation means that data will be
          presented in one or more separate columns to the right of the primary government data columns.
          Blending means that the component unit’s financial data is reported as though the unit is part of the
          primary government. If the units provide services or benefits exclusively, or almost exclusively, to the
          primary government, or if the component units and the primary government have “substantively identical
          boards,” the legally separate component units should be incorporated by blending. If the units do not
          meet these criteria, their data should be incorporated by discrete presentation.

          Based on evaluating these characteristics, the following is a brief review of the component units in the
          County’s reporting entity:

          Discretely Presented Component Unit:

          Rockingham County Airport Authority

          The Rockingham County Airport Authority (Airport Authority) exists to provide airline services for the
          citizens of the County. The members of the Airport Authority’s governing board are appointed by the
          County Commissioners. The Airport Authority is financially dependent on the County to provide
          sufficient funds for operation. The Airport Authority, which has a June 30 year-end, is presented as if it
          were a proprietary fund.

          Complete financial statements for the Airport Authority may be obtained from the entity’s administrative
          offices at Rockingham County Airport Authority, P. O. Box 12, Wentworth, NC 27375.

          Blended Component Unit:

          Rockingham County Industrial Facility and Pollution Control Financing Authority

          Rockingham County Industrial Facility and Pollution Control Financing Authority (the “Authority”)
          exists to issue and service revenue bond debt of private businesses for economic development purposes.
          The Authority is governed by a seven-member board of commissioners, all of whom are appointed by the
          County Commissioners. The County can remove any commissioner of the Authority with or without
          cause. The Authority had no financial transactions or account balances; therefore, it is not presented in
          the combined financial statements. The Authority does not issue separate financial statements.




                                                     27
                ROCKINGHAM COUNTY, NORTH CAROLINA
                      Notes to the Financial Statements
                   For the Fiscal Year Ended June 30, 2009


B.   Basis of Presentation

     Government-wide Statements: The statement of net assets and the statement of activities display
     information about the primary government (the County) and its component unit. These statements
     include the financial activities of the overall government, except for fiduciary activities. Eliminations
     have been made to minimize the double counting of internal activities. Interfund services provided and
     used are not eliminated in the process of consolidation. These statements distinguish between the
     governmental and business-type activities of the County. Governmental activities generally are
     financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-
     type activities are financed in whole or in part by fees charged to external parties.

     The statement of activities presents a comparison between direct expenses and program revenues for the
     different business-type activities of the County and for each function of the County’s governmental
     activities. Direct expenses are those that are specifically associated with a program or function and,
     therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been
     made in the funds have been reversed for the statement of activities. Program revenues include (a) fees
     and charges paid by the recipients of goods or services offered by the programs and (b) grants and
     contributions that are restricted to meeting the operational or capital requirements of a particular
     program. Revenues that are not classified as program revenues, including all taxes, are presented as
     general revenues.

     Fund Financial Statements: The fund financial statements provide information about the County’s
     funds, including its fiduciary funds and blended component unit. Separate statements for each fund
     category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial
     statements is on major governmental and enterprise funds, each displayed in a separate column. All
     remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

     Proprietary fund operating revenues, such as charges for services, result from exchange transactions
     associated with the principal activity of the fund. Exchange transactions are those in which each party
     receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and
     investment earnings, result from non-exchange transactions or ancillary activities.

     The County reports the following major governmental funds:

     General Fund - The General Fund is the general operating fund of the County. The General Fund
     accounts for all financial resources except those that are required to be accounted for in another fund.

     Capital Reserve Fund - This fund was established in accordance with North Carolina law to account
     for the accumulation of resources to be used for major capital purchases. These resources are
     transferred to other funds when needed.

     Courthouse Capital Project Fund – This fund is used to account for improvements relating to the
     courthouse building.

     The County reports the following nonmajor governmental funds:

     Special Revenue Funds - Special Revenue Funds account for specific revenue sources that are legally
     restricted to expenditures for specified purposes. The County maintains seven Special Revenue Funds:
     the Fire Districts Fund, the Tourism Development Fund, the Emergency Telephone System Fund, the
     CDBG Grant Fund, the CDBG Scattered Site Housing Fund, the Duke Power Help Program Fund, and
     the Vera Holland Stoneville Library Fund.

     Debt Service Fund – This Fund is used to account for the accumulation of resources for, and the
     payment of, general long-term debt principal, interest and related costs.




                                              28
            ROCKINGHAM COUNTY, NORTH CAROLINA
                  Notes to the Financial Statements
               For the Fiscal Year Ended June 30, 2009

EOC and Tower Capital Project Fund – This fund is used to account for the construction of an
emergency operations center and communications tower.

Schools Capital Project Fund - This fund is used to account for the construction and renovation of
public schools.

Airport Capital Projects Fund – This fund is used to account for runway and taxiway improvements
at the local airport.

EMS Capital Projects Fund – This fund is used to account for the construction of an EMS base.

Equestrian Center Capital Project Fund – This fund is used to account for the construction of an
equestrian center.

Library Capital Project Fund – This fund is used to account for the construction of a library.

Animal Shelter Capital Project Fund – This fund is used to account for the construction of a new
animal shelter.

The County reports all of its enterprise funds as major:

Water Fund - This fund is used to account for the operations of the County’s water line system.

Sewer Fund - This fund is used to account for the operations of the County’s sewer collection system
and contracted sewer treatment services.

Landfill Fund - This fund is used to account for the operations of the County’s solid waste activities.

The County reports the following fund types:

Internal Service Funds – Internal Service Funds are used to account for the financing of goods or
services provided by one department or agency to other departments or agencies of the County on a cost
reimbursement basis. The County maintains four Internal Service Funds: the General Insurance
Deductible Fund, the Workman’s Compensation Fund, the Health Insurance Fund and the Cafeteria
Plan Fund.

Agency Funds - Agency funds are custodial in nature and do not involve measurement of operating
results. Agency funds are used to account for assets the County holds on behalf of others. The County
maintains three Agency Funds: the Social Services Fund, which accounts for moneys deposited with the
Social Services Department for the benefit of certain individuals; the Fines and Forfeitures Fund, which
accounts for various legal fines and forfeitures that the County is required to remit to Rockingham
County Board of Education, and the 3% Interest Payable to State Fund, which accounts for delinquent
motor vehicle taxes which are required to be remitted to the state.

Pension Trust Fund - The Pension Trust Fund accounts for the Law Enforcement Officer’s Special
Separation Allowance, a single-employer, public employee retirement system.

Private Purpose Fund – The Private Purpose Fund accounts for the Library Memorial Fund donor
restricted funds received by the County Library Department. These funds are to be used for the benefit
of individuals other than the primary government.




                                         29
                  ROCKINGHAM COUNTY, NORTH CAROLINA
                        Notes to the Financial Statements
                     For the Fiscal Year Ended June 30, 2009


C.   Measurement Focus and Basis of Accounting

     In accordance with North Carolina General Statutes, all funds of the County are maintained during the
     year using the modified accrual basis of accounting.

     Government-wide, Proprietary, and Fiduciary Fund Financial Statements - The government-wide,
     proprietary, and fiduciary fund financial statements are reported using the economic resources
     measurement focus, except for the agency funds, which have no measurement focus. The government-
     wide, proprietary fund, and fiduciary fund financial statements are reported using the accrual basis of
     accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are
     incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the
     County gives (or receives) value without directly receiving (or giving) equal value in exchange, include
     property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is
     recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and
     donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

     Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
     or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
     including special assessments. Internally dedicated resources are reported as general revenues rather
     than as program revenues. Likewise, general revenues include all taxes.

     Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
     revenues and expenses generally result from providing services and producing and delivering goods in
     connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
     the County enterprise funds are charges to customers for sales and services. Operating expenses for
     enterprise funds include the cost of sales and services, administrative expenses, and depreciation on
     capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
     revenues and expenses.

     Governmental Fund Financial Statements - Governmental funds are reported using the current
     financial resources measurement focus and the modified accrual basis of accounting. Under this method,
     revenues are recognized when measurable and available. Expenditures are recorded when the related
     fund liability is incurred, except for principal and interest on general long-term debt, claims and
     judgments, and compensated absences, which are recognized as expenditures to the extent they have
     matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds
     of general long-term debt and acquisitions under capital leases are reported as other financing sources.

     The County considers all revenues available if they are collected within 90 days after year-end, except
     for property taxes. Ad valorem property taxes are not accrued as revenue because the amount is not
     susceptible to accrual. At June 30, taxes receivable are materially past due and are not considered to be
     an available resource to finance the operations of the current year. Also, as of January 1, 1993, State law
     altered the procedures for the assessment and collection of property taxes on registered motor vehicles in
     North Carolina. Effective with this change in the law, Rockingham County is responsible for billing and
     collecting the property taxes on all registered motor vehicles on behalf of all municipalities and special
     tax districts in the County. For motor vehicles, property taxes are due the first day of the fourth month
     after the vehicles are registered. The billed taxes are applicable to the fiscal year in which they become
     due. Therefore, taxes for vehicles registered from March 2008 through February 2009 apply to the fiscal
     year ended June 30, 2009. Uncollected taxes that were billed during this period are shown as a
     receivable on these financial statements.

     Sales taxes collected and held by the State at year-end on behalf of the County are recognized as revenue.
     Intergovernmental revenues and sales and services are not susceptible to accrual because generally they
     are not measurable until received in cash. Expenditure-driven grants are recognized as revenue when the
     qualifying expenditures have been incurred and all other grant requirements have been satisfied.




                                               30
                ROCKINGHAM COUNTY, NORTH CAROLINA
                      Notes to the Financial Statements
                   For the Fiscal Year Ended June 30, 2009


     Under the terms of grant agreements, the County funds certain programs by a combination of specific
     cost-reimbursement grants, categorical block grants, and general revenues. Thus when program
     expenses are incurred, there are both restricted and unrestricted net assets available to finance the
     program. It is the County’s policy to first apply cost-reimbursement grant resources to such programs,
     followed by categorical block grants, and then by general revenues. All governmental and business-type
     activities and enterprise funds of the County follow FASB Statements and Interpretations issued on or
     before November 30, 1989, Accounting Principles Board Opinions, and Accounting Research Bulletins,
     unless those pronouncements conflict with GASB pronouncements.

D.   Budgetary Data

     The County’s budgets are adopted as required by North Carolina General Statutes. An annual budget is
     adopted for the General Fund, the Capital Reserve, the Fire District, the Tourism and Development, the
     Emergency Telephone System and the Vera Holland Stoneville Library Special Revenue Funds, the
     Debt Service Fund, the Enterprise Funds and Internal Service Funds. All annual appropriations lapse at
     fiscal year-end. Project ordinances are adopted for the CDBG Grant Fund, the CDBG Scattered Site
     Housing, and the Duke Power Help Program Special Revenue Funds, the Capital Projects Funds and the
     Water and Sewer Capital Projects Fund which is consolidated with the Enterprise operating funds for
     reporting purposes. All budgets are prepared using the modified accrual basis of accounting.

     Expenditures may not legally exceed appropriations at the functional level for all annually budgeted
     funds. Transfers of appropriations between funds may be made only by the Board. Transfers of
     appropriations between functional areas in a fund or from contingency shall be approved by the Board,
     but may be approved by the County Manager or Finance Officer if they are consistent with operational
     needs and any Board approved goals and do not exceed $30,000. Transfers from contingency can not
     exceed $20,000, except this limit may be exceeded if the Manager determines that an emergency exists.
     All such transfers approved by the Manager or Finance Officer must be presented to the Board at its
     next regular meeting. During the year, several amendments to the original budget were necessary, the
     effects of which were not material. The budget ordinance must be adopted by July 1 of the fiscal year or
     the governing board must adopt an interim budget that covers that time until the annual ordinance can
     be adopted.

E.   Assets, Liabilities and Fund Equity

     1.   Deposits and Investments

          All deposits of the County are made in board-designated official depositories and are secured as
          required by G.S. 159-31. The County may designate, as an official depository, any bank or
          savings association whose principal office is located in North Carolina. Also, the County may
          establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts,
          and certificates of deposit.

          State law [G.S. 159-30(c)] authorizes the County to invest in obligations of the United States or
          obligations fully guaranteed both as to principal and interest by the United States; obligations of
          the State of North Carolina; bonds and notes of any North Carolina local government or public
          authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of
          commercial paper and bankers’ acceptances; and the North Carolina Capital Management Trust
          (NCCMT), an SEC-registered (2a-7) money market mutual fund.

          The County’s investments with maturity of more than one year at acquisition and non-money
          market investments are carried at fair value as determined by quoted market prices. The NCCMT
          Cash Portfolio’s, an SEC-registered (2a-7) money market mutual fund, securities are valued at fair
          value, which is the NCCMT’s share price. The NCCMT Term Portfolio’s securities are valued at




                                              31
           ROCKINGHAM COUNTY, NORTH CAROLINA
                 Notes to the Financial Statements
              For the Fiscal Year Ended June 30, 2009

     fair value. Money market investments that have a remaining maturity at the time of purchase of
     one year or less and non-participating interest earnings and investment contracts are reported at
     cost.

2.    Cash and Cash Equivalents

      The County pools money from several funds to facilitate disbursement and investment and to
      maximize investment income. Therefore, all cash and investments are essentially demand
      deposits and are considered cash and cash equivalents. The County considers demand deposits
      and investments purchased with an original maturity of three months or less, which are not
      limited as to use, to be cash and cash equivalents.

3.    Restricted Assets

      Unexpended certificates of participation proceeds for governmental capital projects are classified
      as restricted assets within the applicable governmental funds because their use is completely
      restricted to the purpose for which the certificates of participation were originally issued. The
      unexpended certificates of participation proceeds of the Water Fund and the Sewer Fund are
      classified as restricted assets within the enterprise fund because their use is completely restricted
      to the purpose for which the certificates of participation were originally issued. Customer
      deposits held by the County before any services are supplied are restricted to the service for
      which the deposit was collected.

4.    Ad valorem Taxes Receivable

      In accordance with State law [G.S. 105-347 and G.S. 159-13(a)], the County levies ad valorem
      taxes on property other than motor vehicles on July 1, the beginning of the fiscal year. The taxes
      are due September 1 (lien date); however, penalties and interest do not accrue until the following
      January 6th. These taxes are based on the assessed values as of January 1, 2008. As allowed by
      State law, the County has established a schedule of discounts that apply to taxes which are paid
      prior to the due date. In the County’s General Fund, ad valorem tax revenues are reported net of
      such discounts.

5.   Allowance for Doubtful Accounts

      All receivables that historically experience uncollectible accounts are shown net of an allowance
      for doubtful accounts. This amount is estimated by analyzing the percentage of receivables that
      were written off in prior years.

6.    Inventory

      Inventory of the County is valued at cost (first-in, first-out), which approximates market. The
      County’s General Fund inventory consists of expendable supplies recorded as expenditures when
      purchased.

7.    Capital Assets

      Purchased or constructed assets are reported at historical cost. Donated capital assets are recorded
      at estimated fair market value on the date donated. Minimum capitalization costs are $2,500 for
      all asset categories. The cost of normal maintenance and repairs that do not add to the value of
      the asset or materially extend assets’ lives are not capitalized. Any interest incurred during the
      construction phase of proprietary fund type capital assets is reflected in the capitalized value of
      the asset constructed. The County’s governmental activities do not report any infrastructure.




                                         32
          ROCKINGHAM COUNTY, NORTH CAROLINA
                Notes to the Financial Statements
             For the Fiscal Year Ended June 30, 2009

     The County holds title to certain Rockingham County Board of Education properties that have
     not been included in capital assets. The properties have been deeded to the County to permit
     certificates of participation financing of acquisition and construction costs. Agreements between
     the County and the Board of Education give the Board of Education full use of the facilities, full
     responsibility for maintenance of the facilities, and provide that the County will convey title to
     the property back to the Board of Education, once all restrictions of the financing agreements and
     all sales tax reimbursement requirements have been met. The properties are reflected as capital
     assets in the financial statements of the Rockingham County Board of Education.

     Capital assets of the County are depreciated on a straight-line basis over the following estimated
     useful lives:

                       Buildings and Improvements               20 - 30 years
                       Vehicles                                       5 years
                       Equipment                                 7 - 15 years

8.   Long-Term Debt

     In the government-wide financial statements and in the proprietary fund types in the fund
     financial statements, long-term debt and other long-term obligations are reported as liabilities in
     the applicable governmental activities, business-type activities, or proprietary fund type statement
     of net assets.

     In the fund financial statements, governmental fund types recognize bond premiums and
     discounts, as well as bond issuance costs, during the current period. The face amount of debt
     issued is reported as other financing sources. Premiums received on debt issuances are reported
     as other financing sources while discounts on debt issuances are reported as other financing uses.
     Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
     debt service expenditures.


9.   Net Assets/Fund Balances

     Net Assets

     Net assets in government-wide and proprietary fund financial statements are classified as
     invested in capital assets, net of related debt; restricted; and unrestricted. Restricted net assets
     represent constraints on resources that are either externally imposed by creditors, grantors,
     contributors, or laws or regulations of other governments or imposed by law through State
     statute.

     Fund Balances

     In the governmental fund financial statements, reservations or restrictions of equity represent
     amounts that are not appropriable or are legally segregated for a specific purpose. Designations
     of equity represent tentative management plans that are subject to change.

     State law [G.S. 159-13(b)(16)] restricts the appropriation of fund balance to an amount not to
     exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred
     revenues arising from cash receipts as those amounts stand at the close of the fiscal year
     preceding the budget year.

     The governmental fund types classify fund balances as follows:




                                        33
                ROCKINGHAM COUNTY, NORTH CAROLINA
                      Notes to the Financial Statements
                   For the Fiscal Year Ended June 30, 2009

           Reserved

           Reserved for Inventories - portion of fund balance not available for appropriation because it
           represents the year-end balance of ending inventories, which are not expendable, available
           resources.

           Reserved for Law Enforcement – portion of fund balance restricted by third party grantors for
           law enforcement related programs.

           Reserved by State Statute - portion of fund balance, in addition to reserves for inventories,
           which is not available for appropriation under State Law [G.S. 159-8 (a)]. This amount is usually
           comprised of accounts receivable, which are not offset by deferred revenues.

           Unreserved

           Undesignated - portion of total fund balance available for appropriation which is uncommitted at
           year-end.

           Designated for Subsequent Year’s Expenditures – portion of fund balance available for
           appropriation which has been designated for the adopted 2009-2010 budget ordinance. Amounts
           designated for subsequent years expenditures are as follows:

              General Fund                         $   3,421,455
              Special Revenue Funds                $     363,497

F.   Revenues, Expenditures and Expenses

     1.    Other Resources

           The General Fund provides the basis of local resources for other governmental funds. These
           transactions are recorded as “Transfers-out” in the General Fund and “Transfers-in” in the
           receiving fund.

     2.    Compensated Absences

           The vacation policies of the County provide for the accumulation of up to thirty (30) days earned
           vacation leave with such leave being fully vested when earned. For the County’s government-
           wide and proprietary funds, an expense and a liability for compensated absences and the salary-
           related payments are recorded as the leave is earned.

           The County’s sick leave policy provides for an unlimited accumulation of earned sick leave.
           Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be
           used in the determination of length of service for retirement benefit purposes. Since the County
           has no obligation for the accumulated sick leave until it is actually taken, no accrual for sick
           leave has been made.

G.   Comparative Data / Reclassifications

     Comparative total data for the prior year has been presented in the accompanying financial statements in
     order to provide an understanding of changes in the County’s financial position and operations.
     Comparative totals have not been included on the statements where their inclusion would not provide
     enhanced understanding of the County’s financial position and operations or would cause the statements
     to be unduly complex or difficult to understand. Also, certain amounts presented in the prior year’s data
     have been reclassified to be consistent with the current year’s presentation.




                                              34
                         ROCKINGHAM COUNTY, NORTH CAROLINA
                               Notes to the Financial Statements
                            For the Fiscal Year Ended June 30, 2009


       H.    Accounting Estimates

             The preparation of financial statements in conformity with accounting principles generally accepted in
             the United States of America requires management to make estimates and assumptions that affect the
             reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of
             the financial statements and the reported amounts of revenues and expenses during the period. Actual
             results could differ from these estimates.
II.    Stewardship, Compliance and Accountability

       A.    Material Violations of Finance Related Legal and Contractual Provisions

             1.     Deficit Fund Balance

                    The Workman’s Compensation Fund, the Cafeteria Plan Fund, the CDBG Scattered Site Housing
                    Fund, and the Animal Shelter Capital Project Fund reported negative net assets of $139,150,
                    $15,499, $600, and $71,331, respectively, as of June 30, 2009. The deficits will be eliminated
                    with future revenues or transfers.

             2.     Excess of Expenditures Over Appropriations

                    For the year ended June 30, 2009, expenditures exceeded the authorized appropriations made by
                    the governing board in the Tourism Development Fund ($89,773). Management will more
                    closely monitor budget to ensure necessary amendments are made ensuring expenditures do not
                    exceed authorized appropriations.

III.   Detail Notes on all Funds

       A.    Assets
            1.      Deposits

                    All of the County's deposits are either insured or collateralized by using one of two methods.
                    Under the Dedicated Method, all deposits exceeding the federal depository insurance coverage
                    level are collateralized with securities held by the County's agent in the County’s name. Under
                    the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with
                    securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State
                    Treasurer is acting in a fiduciary capacity for the County these deposits are considered to be held
                    by the County’s agent in the entity’s name. The amount of the pledged collateral is based on an
                    approved averaging method for non-interest bearing deposits and the actual current balance for
                    interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer
                    the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not
                    confirm this information with the County, or with he escrow agent. Because of the inability to
                    measure the exact amount of collateral pledged for the County, under the Pooling Method, the
                    potential exists for undercollaterization, and this risk may increase in periods of high cash flows.
                    However, the State Treasurer of North Carolina enforces strict standards of financial stability for
                    each depository that collateralizes public deposits under the Pooling Method.

                    The State Treasurer enforces standards of minimum capitalization for all pooling method
                    financial institutions. The County relies on the State Treasurer to monitor those financial
                    institutions. The County analyzes the financial soundness of any other financial institution used
                    by the County. The County complies with the provisions of G.S. 159-31 when designating
                    official depositories and verifying that deposits are properly secured. The County has no policy
                    regarding custodial credit risk for deposits.




                                                        35
          ROCKINGHAM COUNTY, NORTH CAROLINA
                Notes to the Financial Statements
             For the Fiscal Year Ended June 30, 2009

     At June 30, 2009 the County's deposits had a carrying amount of $42,721,689 and a bank balance
     of $43,175,944. Of the bank balance, $16,508,035 was covered by federal depository insurance,
     and $26,667,909 by collateral held under the Pooling Method.

2.   Investments

     At June 30, 2009 the County had the following investments and maturities:

                                                            Less Than
               Investment Type               Fair Value     12 Months     1-3 Years       3+ years
      North Carolina Capital Management
       Trust-Cash Portfolio                 $ 29,914,854 $ 29,914,854 $             - $              -
      North Carolina Capital Management
       Trust-Term Portfolio                    3,070,718      3,070,718             -                -
                       Total                $ 32,985,572 $ 32,985,572 $             - $              -

     Interest Rate Risk. The County has a formal investment policy that specifically limits investment
     maturities as a means of managing its exposure to fair value losses arising from rising interest
     rates. No less than 30% of the total investment portfolio shall mature within 30 days. No less
     than 75% of the portfolio shall mature within 90 days.

     Credit Risk. State law limits investments in commercial paper to the top rating issued by
     nationally recognized statistical rating organizations (NRSROs); however, the County had no
     formal policy on specifically managing credit risk. The County’s investments in the NC Capital
     Management Trust Cash Portfolio carried a credit rating of AAAm by Standard & Poor’s as of
     June 30, 2009. The County’s investment in the NC Capital Management Trust Term Portfolio is
     unrated. The Term Portfolio is authorized to invest in obligations of the US government and
     agencies, and in high grade money market instruments as permitted under North Carolina
     General Statutes 159-30 as amended. The County’s investments in US Government Agencies are
     rated AAA by Standard & Poor’s.

     Concentration of Credit Risk. The County limits the amount that may be invested in one
     particular investment vehicle to 50% of total investments, excluding investments in the NCCMT.

3.   Property Tax - Use-Value Assessment on Certain Lands

     In accordance with the general statues, agriculture, horticulture, and forest land may be taxed at
     present-use value as opposed to market value. When the property loses its eligibility for use-
     valuation, the property tax is recomputed at market value for the current year and the three
     preceding fiscal years, along with accrued interest from the original due date. This tax is
     immediately due and payable. The following are property taxes that could become due if present
     use-value eligibility is lost. These amounts have not been recorded in the financial statements.

           Year Levied                Tax            Interest           Total
              2005                $ 1,106,614       $ 63,630         $ 1,193,978
              2006                  1,212,297           69,707         1,170,244
              2007                  1,245,717           71,629         1,282,004
              2008                  1,247,181           71,713         1,318,894
               Total              $ 4,811,809       $ 276,679        $ 4,965,120




                                       36
                                       ROCKINGHAM COUNTY, NORTH CAROLINA
                                             Notes to the Financial Statements
                                          For the Fiscal Year Ended June 30, 2009


                        4.       Receivables - Allowance for Doubtful Accounts

                                 At June 30, 2009, the County’s receivable balances (accounts receivable and taxes receivable in
                                 the accompanying statement) were as follows:

                                                                         Government-Wide Financial Statements

                                           Capital       Courthouse                                                 Internal
                                           Reserve         Capital                       Sewer       Landfill       Service         Nonmajor
                        General Fund        Fund         Project Fund Water Fund         Fund         Fund          Funds             Funds        Total
Receivables:
 Accounts               $             - $       - $               - $         29,946 $    64,343 $ 253,673 $                   - $       - $ 347,962
 Taxes                        3,182,601         -                 -                -           -         -                     -   205,616  3,388,217
 Sales Tax                    1,890,216   524,917           239,612                -           -         -                     -    16,162  2,670,907
  Due from other
    governments                 660,907              -               -             -             -              -          -          410,556      1,071,463
 Patient                      3,634,825              -               -             -             -              -          -                -      3,634,825
 Other                          811,794              -               -             -             -              -    258,950           35,087      1,105,831
Gross Receivables            10,180,343     524,917         239,612           29,946      64,343      253,673        258,950          667,421     12,219,205
Less: allowance for
uncollectibles               (2,570,000)             -               -             -             -              -              -       (90,000)   (2,660,000)
Net total receivables   $ 7,610,343 $ 524,917 $             239,612 $         29,946 $    64,343 $ 253,673 $ 258,950 $ 577,421 $ 9,559,205



                        5.       Other Assets

                                   At June 30, 2009, the County’s other assets were comprised of the following:

                                                                                                                       Governmental
                                                                                                                         Activities
                                    Bond issuance costs, net of accumulated amortization                               $    897,300
                                    Over funding of pension obligation, Law Enforcement Officer
                                     Separation Allowance                                                                           53,804
                                    Total                                                                               $          951,104




                                                                             37
                        ROCKINGHAM COUNTY, NORTH CAROLINA
                          Notes to the Financial Statements (continued)
                            For the Fiscal Year Ended June 30, 2009

          6.      Capital Assets

                  A.       Primary Government

                           Capital asset activity for the governmental activities for the year ended June 30, 2009 was
                           as follows:


                                                         Beginning                  Decreases and                       Ending
                                                         Balances      Increases    Adjustments       Transfers         Balances
Governmental Activities:
Capital Assets Not Being Depreciated:
Land                                                 $     2,290,781 $          - $            - $             - $ 2,290,781
Construction in progress                                   4,366,510   18,414,500              -        (187,156)  22,593,854
Total capital assets not being depreciated                 6,657,291   18,414,500              -        (187,156)       24,884,635
Capital Assets Being Depreciated:
Buildings and improvements                                19,870,792       44,468        (16,505)        187,156        20,085,911
Equipment and vehicles                                    13,159,599    1,448,000       (559,812)              -        14,047,787
Total capital assets being depreciated                    33,030,391    1,492,468       (576,317)        187,156        34,133,698
Less Accumulated Depreciation for:
Buildings and improvements                                12,464,994      540,587        (11,612)                 -     12,993,969
Equipment and vehicles                                    10,139,153    1,210,193       (548,246)                 -     10,801,100
Total accumulated depreciation                            22,604,147 $ 1,750,780 $      (559,858) $               -     23,795,069
Total capital assets being depreciated, net               10,426,244                                                    10,338,629
Governmental Activity Capital Assets, Net            $ 17,083,535                                                     $ 35,223,264




                           Depreciation was charged to functions/programs of the primary government as follows:

                           General government                                          $   552,460
                           Public safety                                                   870,898
                           Economic and physical development                                15,314
                           Human services                                                  292,162
                           Cultural and recreational                                        19,946
                           Total                                                       $ 1,750,780




                                                      38
                        ROCKINGHAM COUNTY, NORTH CAROLINA
                              Notes to the Financial Statements
                           For the Fiscal Year Ended June 30, 2009


The following is a summary of the County's business-type assets:

                                                  Beginning                                                            Ending
                                                   Balances        Increases       Decreases         Transfers         Balances
Business-Type Activities:
Water:
Capital Assets Being Depreciated:
Buildings and improvements                       $ 9,306,639 $         12,304 $                - $               - $ 9,318,943
Equipment                                             74,535            5,800                  -                 -      80,335
Total capital assets being depreciated              9,381,174          18,104                  -                 -      9,399,278
Less Accumulated Depreciation for:
Buildings and improvements                          1,219,415        232,810                                            1,452,225
Equipment                                              25,431         13,553                   -                 -         38,984
Total accumulated depreciation                      1,244,846        246,363                   -                 -      1,491,209
Total capital assets being depreciated, net         8,136,328                                                           7,908,069
Water capital assets, net                           8,136,328                                                           7,908,069
Sewer:
Capital Assets Not Being Depreciated:
Land                                                    41,784                 -               -                 -        41,784
Total capital assets not being depreciated              41,784                 -               -                 -        41,784
Capital Assets Being Depreciated:
Buildings and improvements                          8,726,389          50,525                  -                 -      8,776,914
Vehicles                                              116,406          24,634                  -                 -        141,040
Total capital assets being depreciated              8,842,795          75,159                  -                 -      8,917,954
Less Accumulated Depreciation for:
Buildings and improvements                          1,236,459        218,154                   -                 -      1,454,613
Equipment                                              48,096         21,362                   -                 -         69,458
Total accumulated depreciation                      1,284,555        239,516                   -                 -      1,524,071
Total capital assets being depreciated, net         7,558,240                                                           7,393,883
Sewer capital assets, net                           7,600,024                                                           7,435,667
Landfill:
Capital Assets Not Being Depreciated:
Land                                                  696,665                  -               -                 -       696,665
Total capital assets not being depreciated            696,665                  -               -                 -       696,665
Capital Assets Being Depreciated:
Landfill                                           11,507,434              -                -                    -     11,507,434
Buildings                                             829,888              -                -                    -        829,888
Equipment                                           2,728,051        690,574          (15,540)                   -      3,403,085
Total capital assets being depreciated             15,065,373        690,574          (15,540)                   -     15,740,407
Less Accumulated Depreciation for:
Landfill                                            6,882,993       1,240,384               -                    -      8,123,377
Buildings                                             277,759          34,242               -                    -        312,001
Equipment                                           1,252,669         253,141         (15,540)                   -      1,490,270
Total accumulated depreciation                      8,413,421 $ 1,527,767 $           (15,540) $                 -      9,925,648
Total capital assets being depreciated, net         6,651,952                                                           5,814,759
Landfill capital assets, net                        7,348,617                                                           6,511,424
Business-Type Activities Capital Assets, Net     $ 23,084,969                                                        $ 21,855,160




                                                   39
                                          ROCKINGHAM COUNTY, NORTH CAROLINA
                                            Notes to the Financial Statements (continued)
                                              For the Fiscal Year Ended June 30, 2009


                     B.     Liabilities

                            1.     Accounts Payable and Accrued Liabilities

                                   Payables at June 30, 2009, were as follows:

                                                                     Government-Wide Financial Statements
                                                Courthouse
                                              Capital Project    Water        Sewer        Landfill     Nonmajor        Internal
                             General Fund         Fund           Fund         Fund          Fund         Funds       Service Fund        Total
Payables:
Accounts and vouchers        $    960,768 $        3,153,999 $      5,930 $      1,211 $    114,836 $       454,365 $              - $   4,691,109
Accrued payroll and
 related liabilities             1,016,620                   -     4,300         1,630         1,509             -              -        1,024,059
Accrued interest payable           929,072                   -    77,251        54,006             -             -              -        1,060,329
Incurred but not reported                -                   -         -             -             -             -        991,734          991,734
Total accounts payable
and accrued liabilities      $ 2,906,460 $         3,153,999 $    87,481 $      56,847 $    116,345 $       454,365 $     991,734 $      7,767,231



                                   Internal service funds predominately serve the governmental funds. Accordingly, the accounts
                                   payable and accrued liability balances for the internal service funds are included in
                                   governmental-activities on the accompanying government-wide financial statement.

                                   Finally, the fiduciary fund financial statements include $46,469 in accounts payable and accrued
                                   liabilities. This amount is excluded from the foregoing schedule and represents amounts due to
                                   various other agencies, individuals or governments.

                            2.     Pension Plan Obligations

                                   A.        Local Government Employees’ Retirement System

                                             Plan Description. Rockingham County contributes to the statewide Local Governmental
                                             Employees’ Retirement System (LGERS), a cost-sharing multiple-employer defined
                                             benefit pension plan administered by the State of North Carolina. LGERS provides
                                             retirement and disability benefits to plan members and beneficiaries. Article 3 of G.S.
                                             Chapter 128 assigns the authority to establish and amend benefit provisions to the North
                                             Carolina General Assembly. The Local Governmental Employees’ Retirement System is
                                             included in the Comprehensive Annual Financial Report (CAFR) for the State of North
                                             Carolina. The State’s CAFR includes financial statements and required supplementary
                                             information for LGERS. That report may be obtained by writing to the Office of the State
                                             Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling
                                             (919) 981-5454.

                                             Funding Policy. Plan members are required to contribute six percent of their annual
                                             covered salary. The County is required to contribute at an actuarially determined rate. For
                                             the County, the current rate for employees not engaged in law enforcement and for law
                                             enforcement officers is 4.89% and 4.78%, respectively, of annual covered payroll. The
                                             contribution requirements of members and of Rockingham County are established and
                                             may be amended by the North Carolina General Assembly. The County’s contributions to
                                             LGERS for the years ended June 30, 2009, 2008, and 2007 were, $1,089,539, $1,436,143,




                                                                         40
     ROCKINGHAM COUNTY, NORTH CAROLINA
           Notes to the Financial Statements
        For the Fiscal Year Ended June 30, 2009

      and $1,305,761, respectively. The contributions made by the County equaled the required
      contributions for each year.

B.    Law Enforcement Officer’s Special Separation Allowance

      Plan Description. Rockingham County administers a public employee retirement system
      (the “Separation Allowance”), a single-employer defined benefit pension plan that
      provides retirement benefits to the County’s qualified sworn law enforcement officers.
      The Separation Allowance is equal to .85 percent of the annual equivalent of the base rate
      of compensation most recently applicable to the officer for each year of creditable service.
      The retirement benefits are not subject to any increases in salary or retirement allowances
      that may be authorized by the General Assembly. Article 12D of G. S. Chapter 143
      assigns the authority to establish and amend benefit provisions to the North Carolina
      General Assembly. The Separation Allowance is reported in the County’s report as a
      pension trust fund. A separate report was not issued for the plan.

      All full-time County law enforcement officers are covered by the Separation Allowance.
      At December 31, 2008, the Separation Allowance’s membership consisted of:

                              Retirees receiving benefits            6
                              Active plan members                  100
                                       Total                       106

      Summary of Significant Accounting Policies

      Basis of Accounting. Financial statements for the Separation Allowance are prepared
      using the accrual basis of accounting. Employer contributions to the plan are recognized
      when due and when the County has made a formal commitment to provide the
      contributions. Benefits are recognized when due and payable in accordance with the terms
      of the plan.

      Method Used to Value Investments. Investments are reported at fair value. Short-term
      debt, deposits, repurchase agreements, and the North Carolina Capital Management Trust
      investments are reported at cost or amortized cost, which approximates fair value. Certain
      longer term United States government and United States agency securities are valued at
      the last reported sales price.

      Contributions. The County is required by Article 12D of G.S. Chapter 143 to provide
      these retirement benefits and has chosen to fund the amounts necessary to cover the
      benefits earned by making contributions based on actuarial valuations. For the current
      year, the County contributed $141,126 or 3.84% of annual covered payroll.

      There were no contributions made by employees. The County’s obligation to contribute to
      this plan is established and may be amended by the North Carolina General Assembly.
      Administration costs of the Separation Allowance are financed through investment
      earnings.

      The annual required contribution for the current year was determined as part of the
      December 31, 2008 actuarial valuation using the projected unit credit actuarial cost
      method. The actuarial assumptions included (a) 7.25% investment rate of return and (b)
      projected salary increases ranging from 4.5% to 12.3% per year. Both (a) and (b) included
      an inflation component of 3.75%. The assumptions did not include postretirement benefit
      increases. The actuarial value of assets was the market value. The unfunded actuarial
      accrued liability is being amortized as a level percent amount on a closed basis. The
      remaining amortization period at December 31, 2008 was 22 years.




                                  41
     ROCKINGHAM COUNTY, NORTH CAROLINA
           Notes to the Financial Statements
        For the Fiscal Year Ended June 30, 2009

      Annual Pension Cost and Net Pension Obligation. The County’s annual pension cost
      and net pension obligation of the Separation Allowance for the current year were as
      follows:

      Annual required contribution                                      $          92,102
      Interest on net pension obligation                                             (343)
      Adjustment to annual required contribution                                      299
      Annual pension cost                                                           92,058
      Contributions made                                                          (141,126)
      Increase (decrease) in net pension obligation                                (49,068)
      Net pension obligation beginning of year                                      (4,736)
      Net pension obligation end of year                                $          (53,804)



                                  Three-Year Trend Information
             Fiscal            Annual Pension          Percentage of        Net Pension
          Year Ended             Cost (APC)           APC Contributed       Obligation
           6/30/2007                       72,127        123.39%                     7,580
           6/30/2008                       76,684        116.06%                    (4,736)
           6/30/2009                       92,058        153.30%                   (53,804)



      Funded Status and Funding Progress. As of December 31, 2008, the most recent
      actuarial valuation date, the plan was 50.9 percent funded. The actuarial accrued liability
      for benefits was $1,165,020, and the actuarial value of assets was $593,344, resulting in an
      unfunded actuarial accrued liability (UAAL) of $571,676. The covered payroll (annual
      payroll of active employees covered by the plan) was $3,669,130, and the ratio of the
      UAAL to the covered payroll was 15.58 percent.

      The schedule of funding progress, presented as required supplementary information
      following the notes to the financial statements, presents multiyear trend information about
      whether the actuarial value of plan assets are increasing or decreasing over time relative to
      the actuarial accrued liability for benefits.

C.    Supplemental Retirement Income Plan for Law Enforcement Officers

      Plan Description. The County contributes to the Supplemental Retirement Income Plan
      (Plan), a defined contribution pension plan administered by the Department of State
      Treasurer and a Board of Trustees. The Plan provides retirement benefits to law
      enforcement officers employed by the County. Article 5 of G.S. Chapter 135 assigns the
      authority to establish and amend benefit provisions to the North Carolina General
      Assembly. The Supplemental Retirement Income Plan for Law Enforcement Officers is
      included in the Comprehensive Annual Financial Report (CAFR) for the State of North
      Carolina. The State’s CAFR includes the pension trust fund financial statements for the
      Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement
      Income Plan for Law Enforcement Officers. That report may be obtained by writing to the
      Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-
      1410, or by calling (919) 981-5454.




                                    42
     ROCKINGHAM COUNTY, NORTH CAROLINA
           Notes to the Financial Statements
        For the Fiscal Year Ended June 30, 2009

      Funding Policy. Article 12E of G.S. Chapter 143 requires the County to contribute each
      month an amount equal to five percent of each officer’s salary, and all amounts
      contributed are vested immediately. Also, the law enforcement officers may make
      voluntary contributions to the plan. Contributions for the year ended June 30, 2009 were
      $233,789, which consisted of $182,354 from the County and $51,435 from the law
      enforcement officers.

D.    Deferred Compensation Plan

      The County offers its employees a deferred compensation plan created in accordance with
      Internal Revenue Code Section 457. The plan, which is available to all County
      employees, permits them to defer a portion of their salary until future years. The deferred
      compensation is not available to employees until termination, retirement, death or
      unforeseeable emergency.

E.    Register of Deeds’ Supplemental Pension Fund

      Plan Description. Rockingham County also contributes to the Register of Deeds’
      Supplemental Pension Fund (Fund), a noncontributory, defined contribution plan
      administered by the North Carolina Department of State Treasurer. The Fund provides
      supplemental pension benefits to any county register of deeds who is retired under the
      Local Government Employees’ Retirement System (LGERS) or an equivalent locally
      sponsored plan. Article 3 of G.S. Chapter 161 assigns the authority to establish and
      amend benefit provision to the North Carolina General Assembly. The Registers of Deeds’
      Supplemental Pension Fund is included in the Comprehensive Annual Financial Report
      (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements
      and required supplementary information for the Resisters of Deeds’ Supplemental Pension
      Fund. That report may be obtained by writing to the Office of the State Controller, 1410
      Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.

      Funding Policy. On a monthly basis, the County remits to the Department of State
      Treasurer an amount equal to one and one-half percent (1.5%) of the monthly receipts
      collected pursuant to Article 1 of G.S. 161. Immediately following January 1 of each year,
      the Department of State Treasurer divides ninety-three percent (93%) of the amount in the
      Fund at the end of the preceding calendar year into equal shares to be disbursed as
      monthly benefits. The remaining seven percent (7%) of the Fund’s assets may be used by
      the State Treasurer in administering the Fund. For the fiscal year ended June 30, 2009, the
      County’s required and actual contributions were $6,102.

F.    Other Post-Employment Benefits

      Healthcare Benefits:

      Plan Description. According to a County resolution, the County provides health care
      benefits to retirees of the County who participate in the North Carolina Local
      Governmental Employees’ Retirement System (System). The County pays the full cost of
      coverage for these benefits for retirees who began working for the County on or before
      November 3, 1997. The cost of coverage is prorated for retirees who began working for
      Rockingham County on or after November 4, 1997. The County pays 50% for retirees
      with 10 years or more of service, 75% with 15 years and 100% with 20 years. Also,
      retirees can purchase coverage for their dependents at the County’s group rates. The
      Board of Commissioners may amend the benefit provisions. A separate report was not
      issued for the plan.




                                 43
ROCKINGHAM COUNTY, NORTH CAROLINA
      Notes to the Financial Statements
   For the Fiscal Year Ended June 30, 2009

 Membership of the health care plan consisted of the following at December 31, 2008, the
 date of the latest actuarial valuation:


                         Retired members                       266
                         Active members:
                          General Employees                    518
                          Law Enforcement                       91
                                  Total                        875

 Funding Policy. The County pays the full cost of coverage for these benefits for retirees
 who began working for the County on or before November 3, 1997 and a percentage of
 the premium cost based on years of service for employees hired after that date, as noted
 above. Also, the County’s retirees can purchase coverage for their dependents at the
 County’s group rates. The County’s members pay $544, per month for dependent
 coverage. The County has chosen to fund the healthcare benefits on a pay-as-you-go
 basis.

 The current ARC rate is 22.7% of annual covered payroll. For the current year, the County
 contributed $1,281,288 or 5.57% of annual covered payroll. The County is self-insured on
 health care. The County has purchased specific stop-loss coverage for any claim that
 exceeds $100,000. There were no contributions made by employees, except for dependent
 coverage of $300,767 the year ended June 30, 2009.

 Summary of Significant Accounting Policies. Post-employment expenditures are made
 from the fund the employee was assigned to prior to retirement. These respective funds are
 maintained on the modified accrual basis of accounting. No funds are set aside to pay
 benefits and administration costs. These expenditures are paid as they come due.

 Annual OPEB Cost and Net OPEB Obligation. The County‘s annual OPEB cost
 (expense) is calculated based on the annual required contribution of the employer (ARC),
 an amount actuarially determined in accordance with the parameters of GASB Statement
 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to
 cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
 excess) over a period not to exceed thirty years. The following table shows the
 components of the County’s annual OPEB cost for the year, the amount actually
 contributed to the plan, and changes in the County’s net OPEB obligation for the
 healthcare benefits:

        Annual required contribution                             $       5,220,903
        Interest on net OPEB obligation                                          -
        Adjustment to annual required contribution                               -
        Annual OPEB cost (expense)                                       5,220,903
        Contributions made                                               1,281,288
        Increase (decrease) in net OPEB obligation                       3,939,615
        Net OPEB obligation, beginning of year                                   -
        Net OPEB obligation, end of year                         $       3,939,615




                            44
ROCKINGHAM COUNTY, NORTH CAROLINA
  Notes to the Financial Statements (continued)
    For the Fiscal Year Ended June 30, 2009

 The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
 and the net OPEB obligation for 2009 were as follows:

            Fiscal           Annual            Percentage of                Net
            Year             OPEB              Annual OPEB                OPEB
            Ended             Cost            Cost Contributed           Obligation
           6/30/2009     $     5,220,903           24.54%            $      3,939,615

 Funded Status and Funding Progress. As of December 31, 2008, the most recent
 actuarial valuation date, the plan was not funded. The actuarial accrued liability for
 benefits and, thus, the unfunded actuarial accrued liability (UAAL) was $71,067,180. The
 covered payroll (annual payroll of active employees covered by the plan) was
 $22,997,512, and the ratio of the UAAL to the covered payroll was 309.0%. Actuarial
 valuations of an ongoing plan involve estimates of the value of reported amounts and
 assumptions about the probability of occurrence of events far into the future. Examples
 include assumptions about future employment, mortality, and healthcare trends. Amounts
 determined regarding the funded status of the plan and the annual required contributions
 of the employer are subject to continual revision as actual results are compared with past
 expectations and new estimates are made about the future. The Schedule of Funding
 Progress, presented as required supplementary information following the notes to the
 financial statements, presents multi-year trend information about whether the actuarial
 value of plan assets is increasing or decreasing over time relative to the actuarial accrued
 liabilities for benefits.

 Actuarial Methods and Assumptions. Projections of benefits for financial reporting
 purposes are based on the substantive plan (the plan as understood by the employer and
 the plan members) and include the types of benefits provided at the time of each valuation
 and the historical pattern of sharing of benefit costs between the employer and plan
 members at that point. The actuarial methods and assumptions used include techniques
 that are designed to reduce the effects of short-term volatility in actuarial accrued
 liabilities and the actuarial value assets, consistent with the long-term perspective of the
 calculations.

 In the December 31, 2008 actuarial valuation, the projected unit credit actuarial cost
 method was used. The actuarial assumptions included a 4.00 percent investment rate of
 return (net of administrative expenses), which is the expected long-term investment returns
 on the employer’s own investments calculated based on the funded level of the plan at the
 valuation date, and an annual medical cost trend increase of 10.50 to 5.00 percent
 annually. Both rates included a 3.75 percent inflation assumption. The UAAL is being
 amortized as a level percentage of projected payroll on an open basis. The remaining
 amortization period at December 31, 2008, was 30 years.




                             45
          ROCKINGHAM COUNTY, NORTH CAROLINA
                Notes to the Financial Statements
             For the Fiscal Year Ended June 30, 2009

     G.    Other Employee Benefits

           The County has elected to provide death benefits to employees through the Death Benefit
           Plan for members of the Local Governmental Employees’ Retirement System (Death
           Benefit Plan), a multiple-employer, State-administered, cost-sharing plan funded on a one-
           year cost basis. The beneficiaries of those employees who die in active service after one
           year of contributing membership in the System, or who die within 180 days after
           retirement or termination of service and have at least one year of contributing membership
           service in the System at the time of death are eligible for death benefits. Lump sum
           benefit payments to beneficiaries are equal to the employee’s 12 highest months salary in a
           row during the 24 months prior to the employee’s death, but the benefit will be a minimum
           of $25,000 and will not exceed $50,000. All death benefit payments are made from the
           Death Benefit Plan. The County has no liability beyond the payment of monthly
           contributions. Contributions are determined as a percentage of monthly payroll, based
           upon rates established annually by the State. Separate rates are set for employees not
           engaged in law enforcement and for law enforcement officers. Because the benefit
           payments are made by the Death Trust Plan and not by the County, the County does not
           determine the number of eligible participants. For the fiscal year ended June 30, 2009, the
           County made contributions to the State for death benefits of $25,269. The County’s
           required contributions for employees not engaged in law enforcement and for law
           enforcement officers represented .09% and .14% of covered payroll, respectively. The
           contributions to the Death Benefit Plan cannot be separated between the post employment
           benefit amount and the other benefit amount.

3.   Closure and Postclosure Care Costs

     State and federal laws and regulations require the County to place a final cover on its landfill
     when it stops accepting waste and to perform certain maintenance and monitoring functions at
     the site for thirty years after closure. Although closure and postclosure care costs will be paid
     near or after the date that the landfill stops accepting waste, the County reports a portion of these
     closure and postclosure care costs as an operating expense in each period based on landfill
     capacity used as of each balance sheet date. The $7,045,094 reported as landfill closure and
     postclosure care liability at June 30, 2009 represents a cumulative amount reported to date based
     on the use of 100 percent of the total estimated capacity of the old landfill and the total currently
     utilized estimated capacity for the lined portion of the new landfill. The County will recognize
     the remaining estimated costs of closure and postclosure care as the remaining estimated capacity
     is filled. Not included in the estimated capacity is the additional landfill property the County has
     at its disposal. These amounts are based on what it would cost to perform all closure and
     postclosure care in 2009. Rockingham County closed the old facility in 1995 and opened its new
     landfill in 1996. The County expects to close the new landfill in the year 2026. As of June 30,
     2009, the estimated closure and postclosure care liability for the old facility amounted to
     approximately $340,500. Actual costs may be higher due to inflation, changes in technology, or
     changes in regulations.

     The County has met the requirements of a local government financial test that is one option under
     State and federal laws and regulations that help determine if a unit is financially able to meet
     closure and postclosure care requirements. However, the County has also elected to establish a
     reserve fund to accumulate resources for the payment of closure and postclosure care costs. The
     County expects that future inflation costs will be paid from the interest earnings on these annual
     contributions. However, if interest earnings are inadequate or additional postclosure care
     requirements are determined (due to changes in technology or applicable laws or regulations, for
     example), these costs may need to be covered by charges to future landfill users or by future tax
     revenues.




                                        46
          ROCKINGHAM COUNTY, NORTH CAROLINA
                Notes to the Financial Statements
             For the Fiscal Year Ended June 30, 2009

4.   Deferred / Unearned Revenues

     The balance of deferred revenues in the fund financial statements (includes both the deferred and
     unearned amounts disclosed below) and unearned revenues in the government-wide financial
     statements at year-end is composed of the following elements:

                                                                             Deferred        Unearned
                                                                             Revenue         Revenue
     Prepaid taxes not yet earned (General)                              $       236,369 $       236,369
     Taxes receivable, net (General)                                           2,012,601               -
     Taxes receivable, net (Special Revenue)                                     115,616               -
     Emergency services receivable (General)                                   2,234,825               -
     Advance to Rockingham County Airport Authority (General)                    660,906               -


     Total                                                               $     5,260,317 $       236,369

5.   Risk Management

     The County is exposed to various risks of losses related to torts; theft of, damage to, and
     destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
     County protects itself from potential loss through a combination of commercial insurance for
     primary and/or excess liability coverage and self-funded risk retention. Self-funded risks are for
     employee benefits. There have been no significant reductions in insurance coverage from the
     previous year.

     The County does not carry flood insurance through the NFIP.

     In accordance with G.S. 159-29, the County’s employees that have access to $100 or more at any
     given time of the County’s funds are performance bonded through a commercial surety bond.
     The Finance Officer is individually bonded for $100,000.

     All operating funds of the County participate in the risk management program and make
     payments to the Workman’s Compensation Fund and the Health Insurance Fund based on the
     insured fund’s historical claims experience. Payments are for prior and current year claims and
     to establish a reserve for catastrophic losses.

     Claims liabilities are reported when it is probable that a loss has occurred and the amount of the
     loss can be reasonably estimated. Liabilities include an amount for claims that have been
     incurred but are not reported (IBNRs), based on historical experience. Settled claims have not
     exceeded self-retained or purchased insurance coverage in any of the past three fiscal years.




                                       47
    ROCKINGHAM COUNTY, NORTH CAROLINA
          Notes to the Financial Statements
       For the Fiscal Year Ended June 30, 2009

A. General Insurance

   The County obtains property and general liability coverage from Sean Dunn. Claims did not
   exceed any individual occurrence or aggregate limits for the year. There have been no
   significant reductions in coverage in the past year.

B. Health Insurance

   The County provides for health insurance benefits in its Health Insurance Fund. This is a
   self-funded program, supplemented by employee contributions, to pay medical claims of
   employees and their covered dependents. Actual claims administration is contracted to and
   administered by Primary Physicians Care.       Medical claims exceeding $100,000 per
   employee are covered by the HCC Benefits Corporation.

C. Workman’s Compensation

   The County provides for workman’s compensation insurance benefits in its Workman’s
   Compensation Fund. This is a self-funded program to pay workman’s compensation claims
   of the employees. Actual claims administration is contracted to and administered by Key
   Risk, Inc. The County is self funded for claims up to $400,000 per occurrence. Claims in
   excess of the retention are covered through purchased insurance up to $1,000,000.

D. Cafeteria Plan

   The County provides Flexible Spending Accounts (FSA) in the Cafeteria Plan Fund. Under
   Section 125 of the Internal Revenue Code, FSA’s allow employees to pay for certain
   qualified benefits with pre-tax dollars. Each employee is allowed to deduct from their salary
   up to $2,500 per year to pay for medical and medical related expenses. Actual claims
   administration is contracted to and administered by Kanawha Healthcare Solutions, Inc.




                                48
                ROCKINGHAM COUNTY, NORTH CAROLINA
                      Notes to the Financial Statements
                   For the Fiscal Year Ended June 30, 2009

           E. Reconciliation of Claims Liability

               Changes in the County’s claims liability balance during fiscal year 2009 are as follows:

                                 General
                                Insurance         Workman's            Health
                                Deductible       Compensation         Insurance          Cafeteria
                                  Fund                Fund              Fund             Plan Fund            Total

Balance, June 30, 2007      $         2,737      $     788,368    $      375,000     $               -   $   1,166,105

Add incurred claims
(including IBNRs) and
 changes in estimates               46,543             442,020         6,953,128            230,197          7,671,888

Deduct claims payments              (49,280)          (592,876)        (6,418,108)         (230,197)         (7,290,461)

Balance, June 30, 2008                       -         637,512           910,020                     -       1,547,532

Add incurred claims
(including IBNRs) and
 changes in estimates              101,495               5,749         6,211,337            254,165          6,572,746

Deduct claims payments              (94,754)          (278,859)        (6,500,766)         (254,165)         (7,128,544)

Balance, June 30, 2009      $         6,741      $     364,402    $      620,591     $               -   $     991,734


    6.     Claims and Judgments

           Employees of the County are covered by unemployment compensation insurance. The County
           elected the direct reimbursement method for paying the costs of unemployment compensation
           benefits. Under this method, the County will reimburse the State annually for benefits charged
           against the County. For the year ended June 30, 2009 the County paid $51,126 for
           unemployment benefits.

           At June 30, 2009, the County was a defendant to various lawsuits. In the opinion of the County’s
           management and the County attorney, the ultimate effect of these legal matters will not have a
           material adverse effect on the County’s financial position.




                                                 49
         ROCKINGHAM COUNTY, NORTH CAROLINA
               Notes to the Financial Statements
            For the Fiscal Year Ended June 30, 2009

7.   Long-Term Obligations

     A. Installment Purchases

         Installment purchase contracts at June 30, 2008 are comprised of the following:

         Installment purchase contract for the construction of Bethany Elementary
         School (collateralized by the building). The note is payable in thirty
         semi-annual equal principal payments on September 21 and March 21
         of $283,333 plus interest at a rate of 3.63%.                                          $   5,950,000

         Installment purchase contract for the construction of Huntsville
         Elementary School, renovation of Dillard and New Vision School,
         Western Middle School, and construction of water and wastewater
         systems to serve Huntsville Elementary School (collateralized by
         Huntsville Elementary School). The note is payable in thirty
         semi-annual equal principal payments on October 12 and April 12
         of $216,667 plus interest at a rate of 4.70%.                                              3,250,000

         Installment purchase contract for the construction of an EMS center (collateralized
         by property constructed), payable in twenty annual installments of $40,642 plus
         interest at a rate of 4.71%.                                                                690,911

         Installment purchase contract for the purchase of EMS equipment (collateralized
         by equipment), payable in five annual installments of $107,379 including interest at
         a rate of 3.78%.                                                                            203,167

         Installment purchase contract for the purchase of computer equipment (collateralized
         by equipment), payable in five annual installments of $57,814 including interest at
         a rate of 3.64%.                                                                            211,652

         Total installment purchase contracts                                                   $ 10,305,730

        Annual debt service requirements to maturity for the County’s installment purchase contracts
        are as follows:

                                     Governmental Activities
                                   Principal          Interest
              2010            $       1,190,450   $        406,022
              2011                    1,196,043            357,495
              2012                    1,094,465            309,495
              2013                    1,096,425            263,928
              2014                    1,040,641            218,899
            2015-2019                 4,119,875            501,689
            2020-2024                   486,542             48,241
            2025-2026                    81,289              5,164
                              $      10,305,730   $      2,110,933




                                        50
               ROCKINGHAM COUNTY, NORTH CAROLINA
                     Notes to the Financial Statements
                  For the Fiscal Year Ended June 30, 2009

         B. Certificates of Participation

              $33,000,000; Certificates of Participation issued March 2002 with variable
              interest rates from 3.00% to 5.50%, interest payments due semi-annually
              on April 1 and October 1 through April 2022 and principal payments on
              April 1 through April 2022 ranging from $155,000 to $1,905,000 and
              a single payment of $3,820,000 plus 5.125% interest due April 2024.
              Proceeds were used to finance the construction of two new elementary
              schools, the renovations of three schools and the construction of a water
              and sewer line for the new schools.                                        $ 24,745,000

              Annual debt service requirements to maturity for the County’s certificates of
              participation are as follows:

              Governmental Activities            Business Type Activities                     Total
              Principal        Interest          Principal        Interest        Principal           Interest

  2010    $    1,246,060   $    1,179,639    $       78,940   $      74,732   $    1,325,000     $     1,254,371
  2011         1,264,869        1,119,475            80,131          70,921        1,345,000           1,190,396
  2012         1,283,677        1,057,924            81,323          67,021        1,365,000           1,124,945
  2013         1,307,187          991,625            82,813          62,821        1,390,000           1,054,446
  2014         1,325,995          925,015            84,004          58,601        1,409,999             983,616
2015-2019      7,876,038        3,536,144           498,961         224,021        8,374,999           3,760,165
2020-2024      8,966,928        1,377,148           568,074          87,244        9,535,002           1,464,392
          $ 23,270,754     $ 10,186,970      $    1,474,246   $     645,361   $ 24,745,000       $ 10,832,331



              At June 30, 2009, $1,474,246 of the Certificates of Participation issued in March 2002 have
              been allocated for the construction of water and sewer lines for the new schools. This
              amount is reported in the Enterprise Funds as a note payable allocated between the Water
              Fund and Sewer Fund. The Water Fund contains $904,258 of the note payable and the
              Sewer Fund contains $569,988.




                                            51
ROCKINGHAM COUNTY, NORTH CAROLINA
  Notes to the Financial Statements (continued)
    For the Fiscal Year Ended June 30, 2009


$52,135,000; Certificates of Participation issued July 2008 with variable
interest rates from 3.50% to 5.00%, interest payments due semi-annually
on April 1 and October 1 through April 2034 and principal payments,
due annually beginning in 2011 on April 1 through April 2034 ranging
from $2,105,000 to $2,210,000.                                              $ 52,135,000

Annual debt service requirements to maturity for the County’s certificates of
participation are as follows:

                  Governmental Activities
                 Principal          Interest

    2010    $          -        $    2,318,988
    2011       2,310,000             2,318,988
    2012       2,310,000             2,226,588
    2013       2,310,000             2,145,738
    2014       2,305,000             2,064,888
  2015-2019   11,325,000             8,822,888
  2020-2024   10,525,000             6,470,244
  2025-2029   10,525,000             4,112,644
  2030-2034   10,525,000             1,520,863
               $ 52,135,000     $ 32,001,829

At June 30, 2009 Rockingham County had a legal debt margin of $404,987,659.




                              52
    ROCKINGHAM COUNTY, NORTH CAROLINA
          Notes to the Financial Statements
       For the Fiscal Year Ended June 30, 2009

C. Proprietary Fund Debt

   The Water Fund

   Installment purchase contract for construction of the Bethany water
   line (collateralized by a security interest to all utility equipment).
   The note is payable in twenty-nine equal semi-annual payments of
   $211,367 and one final payment of $254,242 including interest
   at 4.42%.                                                                     $ 1,374,567

   Installment purchase contract for the construction of water infrastructure
   (collateralized by equipment). The note is payable in twenty annual
   installments of $149,279, plus interest at 4.71%, through 2026.               $ 2,537,718

                        Business Type Activities
                        Principal         Interest

       2010         $       514,445   $      164,859
       2011                 530,994          142,000
       2012                 548,239          118,444
       2013                 378,001           93,740
       2014                 149,278           82,047
    2015-2019               746,388          315,739
    2020-2024               746,388          157,887
    2025-2026               298,552           18,969
                    $     3,912,285   $    1,093,685



   The Sewer Fund

   The County has a revolving loan with the North Carolina Water
   Pollution Revolving Fund Project for the construction of the
   Wentworth sewer line. The loan has a maximum amount of $3,771,557.
   The note is payable in twenty annual payments of $188,578,
   semi-annually with interest at 4.42%. The terms were altered in fiscal year
   2001 to annual payments of $188,230 with semi-annual interest of 2.6%.        $ 1,882,298

   Installment purchase contract for the construction of sewer infrastructure
   (collateralized by equipment). The note is payable in twenty annual
   installments of $95,081 plus interest at 4.71%, through 2026.                 $ 1,616,371

                  Business Type Activities
                   Principal     Interest
        2010         283,311       117,279
        2011         283,311       108,365
        2012         283,311        99,451
        2013         283,311        90,691
        2014         283,311        81,623
    2015-2019      1,416,553       274,516
    2020-2024        475,400       100,564
    2025-2026        190,161        12,082
                 $ 3,498,669 $ 884,571




                                    53
                    ROCKINGHAM COUNTY, NORTH CAROLINA
                          Notes to the Financial Statements
                       For the Fiscal Year Ended June 30, 2009

              D. Changes in General Long-Term Obligations

                   The following is a summary of changes in the County’s long-term obligations as of June 30,
                   2009:

                                                                                                                        Due in
                                              Balance                                               Balance            Less than
                                            July 1, 2008       Additions           Retirements    June 30, 2009        One Year
Governmental Activities:
Installment Purchase Contracts          $     11,490,786   $             -     $      1,185,056   $   10,305,730   $     1,190,450
Certificates of Participation Payable         24,498,006        52,135,000            1,227,252       75,405,754         1,246,060
Premium on Long-term Debt                              -           619,601                    -          619,600                 -
Other Post-employment Benefits                         -         3,862,757                    -        3,862,757                 -
Accrued Vacation                               1,941,711         2,023,595            1,941,711        2,023,595         2,023,595

  Total Governmental Activities         $     37,930,503   $    58,640,953     $      4,354,019   $   92,217,436   $     4,460,105



                                                                                                                        Due in
                                              Balance                                               Balance            Less than
                                            July 1, 2008       Additions           Retirements    June 30, 2009        One Year
Business Type Activities:
Installment Purchase Contracts          $      6,122,352   $               -   $        593,696   $    5,528,656   $       609,526
Certificates of Participation Payable          1,551,994                   -             77,748        1,474,246            78,940
Revolving Loan                                 2,070,528                   -            188,230        1,882,298           188,230
Accrued Landfill Closure and
 Post Closure Costs                            7,045,094                 -                    -        7,045,094                 -
Other Post-employment Benefits                         -            76,858                    -           76,858                 -
Accrued Vacation                                  32,207            36,331               32,207           36,331            36,331

  Total Business Type Activities        $     16,822,175   $      113,189      $        891,881   $   16,043,483   $       913,027



                   Compensated absences typically have been liquidated in the General Fund and are accounted
                   for on a FIFO basis, as they are in the enterprise funds, resulting in the obligation being
                   presented as current in the entity wide financial statements. Net pension obligation has been
                   liquidated in the General Fund.

                   Certificate of participation debt of $23,270,755 and installment purchase contract debt of
                   $9,200,000 are not considered in the calculation of Invested in capital assets, net of debt for
                   governmental activities as these issues are not associated with capital assets owned by the
                   County.




                                                      54
                        ROCKINGHAM COUNTY, NORTH CAROLINA
                          Notes to the Financial Statements (continued)
                            For the Fiscal Year Ended June 30, 2009

                   E. Conduit Debt Obligations

                       Rockingham County Industrial and Pollution Control Financing Authority has issued
                       industrial revenue bonds to provide financial assistance to private businesses for economic
                       development purposes. These bonds are secured by the properties financed as well as by the
                       letters of credit and are payable solely from payments received from the private businesses
                       involved. Ownership of the acquired facilities is in the name of the private business served
                       by the bond issuance. Neither the County, the authority, the State, nor any political
                       subdivision thereof is obligated is any manner for the repayment of the bonds. Accordingly,
                       the bonds are not reported as liabilities in the accompanying financial statements. As of June
                       30, 2009, there were seven series of industrial revenue bonds outstanding, with an aggregate
                       principal amount payable of approximately $17,000,000.

IV.   Interfund Balances and Activity

      Due From/To Other Funds

      The composition of interfund balances as of June 30, 2009 are as follows:

                                                                Receivable            Payable
                                                                  Fund                 Fund
              Governmental Activities:
              General Fund                                  $       415,815       $              -
              Other Governmental Funds:
              Special revenue funds                                          -            135,867
              Capital project funds                                          -            209,902

              Business Type Activities:
              Enterprise Funds:
               Water Fund                                                 -                20,849
              Internal Service Funds                                      -                49,197
                                                            $       415,815       $       415,815

      Amounts were due to the General Fund from nonmajor funds and proprietary funds primarily for operating
      purposes.




                                                     55
                        ROCKINGHAM COUNTY, NORTH CAROLINA
                          Notes to the Financial Statements (continued)
                            For the Fiscal Year Ended June 30, 2009

     Transfers to/from Other Funds:

     Transfers in (out) for the year ended June 30, 2009 are summarized below:

                          Fund                              To                  From


     General Fund                                    $              -     $      4,203,508
     Capital Reserve Fund                                   2,969,701                    -
     Other Governmental Funds:
     Special Revenue Funds                                         -                      -
     Capital Project Funds                                    65,000                      -
     Debt Service Fund                                       236,848                      -
     Enterprise Funds:
     Water Fund                                              705,648                      -
     Sewer Fund                                              186,311                      -
     Internal Service Fund                                    40,000                      -

     Capital Reserve Fund                                           -              175,000
     Other Governmental Funds:
     Capital Project Funds                                          -               50,000
     Enterprise Funds:
     Water Fund                                                    -                22,200
     Sewer Fund                                                    -                14,800
     General Fund                                            262,000                     -

     Capital Reserve Fund                                    100,000                     -
     Courthouse Capitl Project Fund                                -               100,000

     Capital Reserve Fund                                          -             6,185,009
     General Fund                                            769,775                     -
     Other Governmental Funds:
     Debt Service Fund                                      5,415,234                   -
                                                     $     10,750,517     $    10,750,517

     Transfers between the major funds, other nonmajor governmental and enterprise funds were primarily to
     support the capital projects and operations of the funds.

V.   Related Organization

     The Board of County Commissioners is responsible for appointing all the members of the Board of the
     Rockingham County Industrial Facilities and Pollution Control Financing Authority (The Authority), but the
     County’s accountability for this organization does not extend beyond making these appointments. The
     Authority exists to aid in the financing of industrial and manufacturing facilities for the purpose of alleviating
     unemployment and to aid in financing pollution control facilities for industry in connection with
     manufacturing and industrial facilities.




                                                      56
                          ROCKINGHAM COUNTY, NORTH CAROLINA
                                Notes to the Financial Statements
                             For the Fiscal Year Ended June 30, 2009


VI.    Joint Ventures

       Rockingham Community College

       The County, in conjunction with the State of North Carolina and the Rockingham County Board of Education,
       participates in a joint venture to operate the Rockingham County Community College. Each of the three
       participants appoints four members of the thirteen-member board of trustees of the Community College. The
       president of the Community College’s student government serves as an ex officio nonvoting member of the
       Community College’s board of trustees. The Community College is included as a component unit of the State.
       The County has the basic responsibility for providing funding for the Community College operations. In
       addition to providing annual appropriations for the facilities, the County periodically issues general obligation
       bonds to provide financing for new and restructured facilities. Of the last general obligation bond issue for
       this purpose, no debt was outstanding at year end. The County has an ongoing financial responsibility for the
       Community College because of the statutory responsibilities to provide funding for the Community College’s
       facilities.

       The County contributed $2,076,430 to the Community College for operating purposes during the fiscal year
       ended June 30, 2009. The participating governments do not have any equity interest in the joint venture;
       therefore, no equity interest has been reflected in the County’s financial statements at June 30, 2009.
       Complete financial statements for the Community College may be obtained from the Community College’s
       administrative offices at 215 Wren Memorial Drive, Wentworth, NC 27375.

       Industrial Development Park

       Rockingham County, in conjunction with the City of Reidsville, is involved with the development of an
       industrial park. The County has agreed to pay half the costs of the project, but will not own title to any assets.
       The project, which is on-going, has an estimated and approved cost to the County of $1,437,300, at June 30,
       2009.

VII.   Jointly Governed Organization

       The County, in conjunction with six other counties and eighteen municipalities, established the Piedmont Triad
       Council of Governments (Council). The participating governments established the Council to coordinate
       various funding received from federal and State agencies. Each participating government appoints one
       member to the Council’s governing board. The County paid membership fees of $24,784 to the Council
       during the fiscal year ended June 30, 2009.




                                                        57
                          ROCKINGHAM COUNTY, NORTH CAROLINA
                                Notes to the Financial Statements
                             For the Fiscal Year Ended June 30, 2009


VIII.   Benefit Payments Issued by the State

        The amounts listed below were paid directly to individual recipients by the State from federal and State
        moneys. County personnel are involved with certain functions; primarily eligibility determinations that cause
        benefit payments to be issued by the State. These amounts disclose this additional aid to County recipients,
        which do not appear in the basic financial statements because they are not revenues and expenditures of the
        County.

                                                                  Federal              State
        Temporary Assistance to Needy Families                $     1,336,793    $             -
        Medicaid                                                   82,678,402         31,407,870
        Food stamp program                                         15,753,219                  -
        Energy assistance                                             532,820                  -
        Adult assistance                                                    -          1,088,588
        CWS Adoption Subsidy                                                -            253,693
        Foster Care at Risk                                                 -              2,540
        State Foster Home                                                   -             64,679
        Title IV-E                                                    607,230            106,808
        Total                                                 $   100,908,464    $    32,924,178



IX.     Summary Disclosure of Significant Contingencies

        A.    Federal and State Assisted Programs

              The County has received proceeds from several federal and State grants. Periodic audits of these grants
              are required and certain costs may be questioned as not being appropriate expenditures under the grant
              agreements. Such audits could result in the refund of grant moneys to the grantor agencies.
              Management believes that any required refunds will be immaterial. No provision has been made in the
              accompanying financial statements for the refund of grant monies.




                                                      58
    REQUIRED SUPPLEMENTAL
        FINANCIAL DATA




     This section contains additional information on the
Law Enforcement Officer's Special Separation Allowance and
  the Other Post-Employment Benefits-Retiree Health Plan
                     as of June 30, 2009
                                                                                                                     Schedule A-1

ROCKINGHAM COUNTY, NORTH CAROLINA

LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANCE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2009


                                       Actuarial
                      Actuarial     Accrued Liability           Unfunded                                            UAAL as a
  Actuarial           Value of      (AAL) - Projected              AAL             Funded             Covered      % of Covered
  Valuation            Assets          Unit Credit               (UAAL)             Ratio             Payroll        Payroll
    Date                 (a)               (b)                     (b-a)            (a/b)               (c)          ((b-a)/c)

  12/31/2008     $        593,344   $           1,165,020   $       571,676        50.93%         $    3,669,130     15.58%
  12/31/2007              552,724               1,113,196           560,472        49.65%              3,676,547     15.24%
  12/31/2006              503,571                 907,562           403,991        55.49%              3,480,578     11.61%
  12/31/2005              429,549                 759,315           329,766        56.57%              3,442,550      9.58%
  12/31/2004              356,705                 834,010           477,305        42.77%              3,506,024     13.61%
  12/31/2003              376,624                 764,378           387,754        49.27%              3,129,350     12.39%
  12/31/2002              238,203                 788,872           550,669        30.20%              3,201,632     17.20%
  12/31/2001              249,013                 698,375           449,362        35.66%              2,998,338     14.99%
  12/31/2000              227,554                 701,598           474,044        32.43%              3,023,469     15.68%
  12/31/1999              206,346                 445,771           239,425        46.29%              2,771,382      8.64%


                           Schedule of Employer Contributions
                                        Annual
                                       Required                 Percentage
                     Year Ended       Contribution               of ARC
                      June 30           (ARC)                   Contributed
                        2009        $         72,127                 123.39%
                        2008                  76,684                 116.06%
                        2007                  72,127                 123.39%
                        2006                  88,937                  95.57%
                        2005                  78,858                 107.79%
                        2004                  87,739                  96.88%
                        2003                  77,981                 100.00%
                        2002                  78,470                  66.00%
                        2001                  50,897                 100.00%
                        2000                  47,655                 100.00%


                Notes to the Required Schedules:
                The information presented in the required supplementary schedules was
                determined as part of the actuarial valuations at the dates indicated.
                Additional information as of the latest actuarial valuation follows.

                Valuation date                                                 12/31/2008
                Actuarial cost method                                          Projected unit credit
                Amortization method                                            Level percent of pay closed
                Remaining amortization period                                  22 Years
                Asset valuation method                                         Market Value
                Actuarial Assumptions:
                Investment rate of return*                                     7.25%
                Projected salary increases*                                    4.5% to 12.3%
                Cost of living adjustments                                     None

                * Includes inflation at 3.75%




                                                            59
                                                                                                         Schedule A-2
ROCKINGHAM COUNTY, NORTH CAROLINA

OTHER POST-EMPLOYMENT BENEFITS -
RETIREE HEALTH PLAN
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2009



                                   Actuarial
                Actuarial       Accrued Liability       Unfunded                                          UAAL as a
Actuarial       Value of        (AAL) - Projected         AAL             Funded            Covered      % of Covered
Valuation        Assets            Unit Credit           (UAAL)            Ratio            Payroll        Payroll
  Date             (a)                 (b)                 (b-a)           (a/b)              (c)          ((b-a)/c)

12/31/2008 $                -   $      71,067,180   $    71,067,180        0.00%        $   22,997,512     309.0%


                      Schedule of Employer Contributions
                                    Annual
                                   Required            Amount           Percentage
               Year Ended         Contribution        Contributed        of ARC
                June 30             (ARC)            By Employer        Contributed
                  2009          $       5,220,903   $             -            0.00%



            Notes to the Required Schedules:
            The information presented in the required supplementary schedules was
            determined as part of the actuarial valuations at the dates indicated.
            Additional information as of the latest actuarial valuation follows.

            Valuation date                                            12/31/2008
            Actuarial cost method                                     Projected unit credit
            Amortization method                                       Level percent of pay open
            Remaining amortization period                             30 Years
            Asset valuation method                                    Market Value
            Actuarial Assumptions:
            Investment rate of return*                                4.00%
            Medical cost trend rate                                   10.5%-5.00%
            Year of ultimate trend rate                               2016

            * Includes inflation at 3.75%




                                                          60
                                                                                                           Schedule B-1

ROCKINGHAM COUNTY, NORTH CAROLINA

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2009


                                               Special
                                               Revenue            Debt Service          Capital
                                                Funds                Fund            Project Funds        Total

Assets:
Cash and cash equivalents                  $    1,243,528     $              4       $      247,148   $    1,490,680
Taxes receivable                                  115,616                    -                    -          115,616
Accounts receivable                               170,954                    -              290,851          461,805
Restricted cash and cash equivalents                    -                    -            1,506,355        1,506,355
Total assets                               $    1,530,098     $              4       $    2,044,354   $    3,574,456

Liabilities and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities   $       60,887     $                  -   $     393,478    $     454,365
Deferred revenue                                  115,616                        -               -          115,616
Due to General Fund                               135,867                        -         209,902          345,769
Total liabilities                                 312,370                        -         603,380          915,750

Fund Balances:
Reserved by State statute                          35,087                    -                    -           35,087
Unreserved                                      1,182,641                    4            1,440,974        2,623,619
Total fund balances                             1,217,728                    4            1,440,974        2,658,706

Total liabilities and fund balances        $    1,530,098     $              4       $    2,044,354   $    3,574,456




                                                         61
                                                                                                     Schedule B-2
ROCKINGHAM COUNTY, NORTH CAROLINA

NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2009


                                              Special
                                              Revenue        Debt Service         Capital
                                               Funds            Fund           Project Funds          Total
Revenues:
 Ad valorem taxes                         $    2,851,751     $            -    $           -     $     2,851,751
 Other taxes and licenses                        261,132                  -                -             261,132
 Restricted intergovernmental                    800,682                  -          523,110           1,323,792
 Miscellaneous                                     9,539                  -          153,985             163,524
 Investment earnings                              33,763                  4           24,894              58,661
   Total revenues                              3,956,867                  4          701,989           4,658,860

Expenditures:
 Current:
   Public safety                               3,461,597                  -        2,113,665           5,575,262
   Economic and physical development             556,827                  -          641,404           1,198,231
   Cultural and recreational                           -                  -           64,477              64,477
   Capital outlay                                      -                  -           39,958              39,958
 Debt Service:
   Principal                                           -         2,412,311                 -           2,412,311
   Interest and fees                                   -         3,241,762                 -           3,241,762
      Total expenditures                       4,018,424         5,654,073         2,859,504          12,532,001

Revenues over (under) expenditures               (61,557)        (5,654,069)       (2,157,515)         (7,873,141)


Other Financing Sources (Uses):
 Long-term debt issued                                   -               -         5,156,245           5,156,245
 Transfers in                                            -       5,652,082            65,000           5,717,082
 Transfers out                                           -               -           (50,000)            (50,000)
   Total other financing sources (uses)                  -       5,652,082         5,171,245          10,823,327

Net change in fund balances                      (61,557)            (1,987)       3,013,730           2,950,186

Fund balance, beginning - July 1               1,279,285             1,991         (1,572,756)          (291,480)

Fund balance, ending - June 30            $    1,217,728     $            4    $   1,440,974     $     2,658,706




                                                    62
ROCKINGHAM COUNTY, NORTH CAROLINA

NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2009


                                                 Fire         Tourism      Emergency        CDBG
                                               Districts    Development    Telephone        Grant
                                                Fund           Fund       System Fund       Fund

Assets:
Cash and cash equivalents                  $      310,264 $     115,780 $     520,468 $       19,975
Taxes receivable                                  115,616             -             -              -
Accounts receivable                                     -             -        35,087              -
Total assets                               $      425,880   $   115,780   $   555,555   $     19,975

Liabilities and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities   $            - $       1,250 $      59,037 $             -
Deferred revenue                                  115,616             -             -               -
Due to General Fund                                     -             -             -               -
Total liabilities                                 115,616         1,250        59,037               -

Fund Balances:
Reserved by State statute                               -             -        35,087              -
Unreserved                                        310,264       114,530       461,431         19,975
Total fund balances                               310,264       114,530       496,518         19,975

Total liabilities and fund balances        $      425,880   $   115,780   $   555,555   $     19,975




                                                  63
                                                  Schedule B-3




   CDBG                        Vera Holland
 Scattered       Duke Power     Stoneville
Site Housing    Help Program     Library
    Fund            Fund          Fund              Total



$          - $             - $      277,041 $        1,243,528
           -               -              -            115,616
     100,007          35,860              -            170,954
$    100,007    $     35,860   $    277,041   $      1,530,098




$        600 $             - $            - $             60,887
           -               -              -              115,616
     100,007          35,860              -              135,867
     100,607          35,860              -              312,370



           -               -              -             35,087
        (600)              -        277,041          1,182,641
        (600)              -        277,041          1,217,728

$    100,007    $     35,860   $    277,041   $      1,530,098




                                                    64
ROCKINGHAM COUNTY, NORTH CAROLINA

NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2009


                                             Fire          Tourism        Emergency        CDBG
                                           Districts     Development      Telephone        Grant
                                            Fund            Fund         System Fund       Fund

Revenues:
 Ad valorem taxes                      $    2,851,751 $            - $             - $            -
 Other taxes and licenses                           -        261,125               7              -
 Restricted intergovernmental                       -              -         486,140         85,561
 Miscellaneous                                      -              -             387              -
 Investment earnings                           13,711          3,146          10,908              -
   Total revenues                           2,865,462        264,271         497,442         85,561

Expenditures:
 Current:
   Public safety                            2,994,897              -         466,700              -
   Economic and physical development                -        298,239               -         65,586
    Total expenditures                      2,994,897        298,239         466,700         65,586

Revenues over (under) expenditures           (129,435)        (33,968)        30,742         19,975

Net change in fund balances                  (129,435)        (33,968)        30,742         19,975

Fund balance, beginning - July 1              439,699        148,498         465,776               -

Fund balance, ending - June 30         $      310,264    $   114,530     $   496,518   $     19,975




                                              65
                                                  Schedule B-4




   CDBG                        Vera Holland
 Scattered       Duke Power     Stoneville
Site Housing    Help Program     Library
    Fund            Fund          Fund             Total



$          - $             - $            - $       2,851,751
           -               -              -           261,132
     193,121          35,860              -           800,682
           -               -          9,152             9,539
           -               -          5,998            33,763
     193,121          35,860         15,150         3,956,867




           -               -              -         3,461,597
     157,142          35,860              -           556,827
     157,142          35,860              -         4,018,424

      35,979               -         15,150             (61,557)

      35,979               -         15,150             (61,557)

     (36,579)              -        261,891         1,279,285

$       (600) $            - $      277,041   $     1,217,728




                                                   66
ROCKINGHAM COUNTY, NORTH CAROLINA

NONMAJOR CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2009




                                           EOC and Tower    School         Airport          EMS
                                              Capital    Capital Project   Capital        Capital
                                            Project Fund     Fund        Project Fund   Project Fund

Assets:
Cash and cash equivalents                  $            - $     187,438 $           - $            -
Accounts receivable                                12,238             -       278,613              -
Restricted cash and cash equivalents              599,801             -             -        906,554
Total assets                               $      612,039   $   187,438   $   278,613   $    906,554

Liabilities and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities   $      324,790 $           - $      67,392   $        350
Due to General Fund                                     -             -       138,617              -
Total liabilities                                 324,790             -       206,009            350

Fund Balances:
Unreserved                                        287,249       187,438        72,604        906,204
Total fund balances                               287,249       187,438        72,604        906,204

Total liabilities and fund balances        $      612,039   $   187,438   $   278,613   $    906,554




                                                67
                                                 Schedule B-5




  Equestrian    Library       Animal
Center Capital   Capital   Shelter Capital
 Project Fund Project Fund Project Fund             Total



$     38,635 $       21,075 $           - $            247,148
           -              -             -              290,851
           -              -             -            1,506,355
$     38,635   $     21,075   $         - $          2,044,354




$        900 $            - $          46    $           393,478
           -              -        71,285                209,902
         900              -        71,331                603,380



      37,735         21,075       (71,331)           1,440,974
      37,735         21,075       (71,331)           1,440,974

$     38,635   $     21,075   $         - $          2,044,354




                                                    68
ROCKINGHAM COUNTY, NORTH CAROLINA

NONMAJOR CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2009



                                              EOC and Tower         School               Airport           EMS
                                                 Capital         Capital Project         Capital         Capital
                                               Project Fund          Fund              Project Fund    Project Fund

Revenues:
 Restricted intergovernmental             $                - $                     -   $    523,110    $          -
 Miscellaneous                                        12,238                       -          2,449               -
 Investment earnings                                       -                       -          4,328          20,035
   Total revenues                                     12,238                       -        529,887          20,035

Expenditures:
 Current:
   Public safety                                    1,975,274                  -                  -           3,863
   Economic and physical development                        -                  -            641,404               -
   Cultural and recreational                                -                  -                  -               -
   Capital outlay                                           -             39,958                  -               -
      Total expenditures                            1,975,274             39,958            641,404           3,863

Revenues over (under) expenditures                 (1,963,036)           (39,958)          (111,517)         16,172

Other Financing Sources (Uses):
 Long-term debt issued                              4,356,245                      -              -         800,000
 Transfers in                                               -                      -         35,000               -
 Transfers out                                        (50,000)                     -              -               -
   Total other financing sources (uses)             4,306,245                      -         35,000         800,000

Net change in fund balances                         2,343,209            (39,958)           (76,517)        816,172

Fund balance, beginning - July 1                   (2,055,960)           227,396            149,121          90,032


Fund balance, ending - June 30            $          287,249     $       187,438       $     72,604    $    906,204




                                                     69
                                                                    Schedule B-6




     Equestrian         Library                 Animal
    Center Capital       Capital             Shelter Capital
    Project Fund      Project Fund            Project Fund              Total



$                -    $          - $                       - $             523,110
            40,750          61,000                    37,548               153,985
               362               -                       169                24,894
            41,112          61,000                    37,717               701,989




                 -               -                   134,528             2,113,665
                 -               -                         -               641,404
            33,782          30,695                         -                64,477
                 -               -                         -                39,958
            33,782          30,695                   134,528             2,859,504

              7,330         30,305                   (96,811)           (2,157,515)



                 -                   -                         -         5,156,245
            30,000                   -                         -            65,000
                 -                   -                         -           (50,000)
            30,000                   -                         -         5,171,245

            37,330          30,305                   (96,811)            3,013,730

               405           (9,230)                  25,480            (1,572,756)

$           37,735    $     21,075       $           (71,331) $          1,440,974




                                                                   70
                  THE GENERAL FUND




  The General Fund accounts for resources traditionally associated with
government that are not required legally or by sound financial management
                    to be accounted for in other funds.
                                                                                          Schedule C-1
                                                                                           Page 1 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                          2009                             2008
                                          Final                       Variance
                                         Budget          Actual      Over/Under           Actual
Revenues:
 Ad Valorem Taxes:
  Taxes                                $ 42,072,559   $ 42,455,400   $     382,841     $ 41,746,176
  Penalties and interest                    350,000        510,053         160,053          399,438
   Total                                 42,422,559     42,965,453         542,894       42,145,614

 Other Taxes and Licenses:
  Local option sales tax                 10,496,966     10,447,581         (49,385)      12,380,813
  Privilege licenses                         12,000          7,484          (4,516)           8,149
  Local occupancy tax                       172,000        163,309          (8,691)         170,877
  Rental receipts tax                        21,000         19,376          (1,624)          25,016
  Register of Deeds' excise stamps          300,000        217,915         (82,085)         293,030
   Total                                 11,001,966     10,855,665        (146,301)      12,877,885

 Unrestricted Intergovernmental:
  Beer and wine                             232,000        235,283           3,283          242,064
  Hold harmless reimbursement               148,735        167,132          18,397          148,735
   Total                                    380,735        402,415          21,680          390,799

 Restricted Intergovernmental:
  Federal and State grants               18,311,174     17,446,819        (864,355)      15,701,769
  Court facility fees                       185,000        167,938         (17,062)         184,033
  Other restricted intergovernmental        415,000        427,551          12,551          417,578
   Total                                 18,911,174     18,042,308        (868,866)      16,303,380

 Permits and Fees:
  Inspection fees                           462,000        399,307         (62,693)         471,034
  Gun permits                                20,000         49,690          29,690           28,160
  Register of Deeds' fees                   457,700        396,030         (61,670)         500,112
   Total                                    939,700        845,027         (94,673)         999,306

 Sales and Services:
  Jail fees                                  44,925         63,360           18,435          67,755
  Human service fees                      5,100,188      3,558,987       (1,541,201)      3,933,082
  Ambulance fees                          3,100,000      3,758,277          658,277       1,791,789
  Miscellaneous sales and services          321,818        330,442            8,624         348,019
   Total                                  8,566,931      7,711,066         (855,865)      6,140,645




                                              71
                                                                              Schedule C-1
                                                                               Page 2 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                  2009                         2008
                                     Final                     Variance
                                    Budget       Actual       Over/Under      Actual

 Investment Earnings                  900,000      518,314       (381,686)     1,148,515

 Miscellaneous:
  ABC revenue                           29,500       29,986           486         25,730
  Sale of capital assets                40,000       12,835       (27,165)        14,936
  Commissions                          305,000      410,817       105,817        381,230
  Other                              1,004,469      950,367       (54,102)       974,896
   Total                             1,378,969    1,404,005        25,036      1,396,792

   Total Revenues                   84,502,034   82,744,253     (1,757,781)   81,402,935

Expenditures:
 General Government:
  Governing Body:
   Salaries and employee benefits                  181,251                      174,623
   Operating expenses                               79,979                       88,061
   Capital outlay                                      855                        1,460
    Total                             277,140      262,085         15,055       264,144

  Administration:
   Salaries and employee benefits                  183,196                      172,858
   Operating expenses                               11,149                       10,761
    Total                             197,086      194,345          2,741       183,619

  Budget and Performance:
   Salaries and employee benefits                   72,764                       66,844
   Operating expenses                               12,215                        8,698
    Total                              86,797       84,979          1,818        75,542

  Personnel/Purchasing:
   Salaries and employee benefits                  349,172                      375,377
   Operating expenses                               15,736                       47,152
   Capital outlay                                        -                        4,797
    Total                             447,633      364,908         82,725       427,326




                                        72
                                                                         Schedule C-1
                                                                          Page 3 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                2009                     2008
                                    Final                   Variance
                                   Budget      Actual      Over/Under    Actual
 Finance:
  Salaries and employee benefits                 471,397                   457,595
  Operating expenses                              32,419                    26,653
   Total                             517,276     503,816        13,460     484,248

 Tax Administration:
  Salaries and employee benefits               1,312,277                 1,302,964
  Operating expenses                             362,500                   278,140
  Capital outlay                                     974                    12,956
   Total                           1,817,102   1,675,751       141,351   1,594,060

 Legal:
  Salaries and employee benefits                 317,890                   305,090
  Operating expenses                              11,733                    11,192
   Total                             332,432     329,623         2,809     316,282

 Register of Deeds:
  Salaries and employee benefits                 477,946                   521,196
  Operating expenses                             185,185                   268,669
  Capital outlay                                       -                       998
   Total                             712,940     663,131        49,809     790,863

 Information Services:
  Salaries and employee benefits                 445,520                   420,603
  Operating expenses                             313,961                   278,146
  Capital outlay                                 108,121                   304,213
   Total                             924,135     867,602        56,533   1,002,962

 Graphical Information System:
  Salaries and employee benefits                 213,947                   124,177
  Operating expenses                              38,706                    33,540
  Capital outlay                                       -                     4,656
   Total                             274,072     252,653        21,419     162,373




                                      73
                                                                           Schedule C-1
                                                                            Page 4 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                2009                       2008
                                    Final                    Variance
                                   Budget      Actual       Over/Under     Actual
 Public Buildings:
  Salaries and employee benefits                 539,641                     535,709
  Operating expenses                             421,141                     431,414
  Capital outlay                                 142,500                      65,724
   Total                           1,215,606   1,103,282        112,324    1,032,847

 Court Facilities:
  Salaries and employee benefits                  60,434                      57,003
  Operating expenses                             213,769                     205,665
  Capital outlay                                       -                       2,618
   Total                             242,885     274,203        (31,318)     265,286

 Central Services:
  Salaries and employee benefits                  65,958                      76,302
  Operating expenses                             (69,463)                     68,781
   Total                             152,050      (3,505)       155,555      145,083

 Elections:
  Salaries and employee benefits                 271,003                     279,955
  Operating expenses                             120,645                     157,948
  Capital outlay                                  45,948                       7,680
  Total                              436,430     437,596         (1,166)     445,583

 Facilities Project Manager:
  Salaries and employee benefits                 113,040                     107,405
  Operating expenses                               6,833                       6,289
  Capital outlay                                       -                       1,805
   Total                             124,094     119,873          4,221      115,499

 Risk Manager:
  Salaries and employee benefits                  75,464                      72,280
  Operating expenses                               9,940                      10,929
   Total                             100,623      85,404         15,219       83,209




                                      74
                                                                             Schedule C-1
                                                                              Page 5 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                   2009                      2008
                                       Final                   Variance
                                      Budget      Actual      Over/Under     Actual
 Non-Departmental Operating
 Expense                              1,654,004   1,283,694       370,310    1,132,879

 Total General Government             9,512,305   8,499,440     1,012,865    8,521,805

Public Safety:
 Emergency Services Administration:
  Salaries and employee benefits                    123,693                    115,335
  Operating expenses                                 44,607                     18,411
  Capital outlay                                     53,904                          -
   Total                                207,531     222,204       (14,673)     133,746

 Emergency Medical Service:
  Salaries and employee benefits                  3,070,732                  2,995,115
  Operating expenses                                780,629                    629,713
  Capital outlay                                    538,966                     62,972
   Total                              4,605,621   4,390,327       215,294    3,687,800

 Communications:
  Salaries and employee benefits                    930,264                    928,616
  Operating expenses                                 68,412                     71,310
  Capital outlay                                      7,894                          -
   Total                              1,086,419   1,006,570        79,849      999,926

 Civil Preparedness/Fire Marshall:
  Salaries and employee benefits                    225,870                    221,104
  Operating expenses                                116,447                    119,913
  Capital outlay                                      2,112                      8,976
   Total                                372,354     344,429        27,925      349,993

 Sheriff:
  Salaries and employee benefits                  4,786,453                  4,766,603
  Operating expenses                                792,191                    892,565
  Capital outlay                                    244,192                    283,019
   Total                              6,064,075   5,822,836       241,239    5,942,187




                                         75
                                                                           Schedule C-1
                                                                            Page 6 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                 2009                       2008
                                    Final                     Variance
                                   Budget       Actual       Over/Under    Actual
 Jail:
  Salaries and employee benefits                 2,074,604                  1,982,811
  Operating expenses                             1,158,377                    890,490
   Total                            3,271,035    3,232,981        38,054    2,873,301

 Animal Control:
  Salaries and employee benefits                  167,022                    167,658
  Operating expenses                              179,751                    173,949
  Capital outlay                                        -                     16,821
   Total                             372,942      346,773         26,169     358,428

 Day Reporting Center:
  Salaries and employee benefits                   87,131                     93,630
  Operating expenses                               53,145                     67,975
   Total                             148,020      140,276          7,744     161,605

 Code Enforcement:
  Salaries and employee benefits                  111,290                     82,843
  Operating expenses                               11,710                     12,053
   Total                             126,738      123,000          3,738      94,896

 Inspection/Planning:
  Salaries and employee benefits                  650,802                    636,853
  Operating expenses                               65,389                     65,601
  Capital outlay                                    3,733                     13,105
   Total                             764,325      719,924         44,401     715,559

 Other Public Safety:
  Medical examiner                                 38,100                     63,000
  Juvenile detention                               70,663                     69,894
   Total                             137,463      108,763         28,700     132,894

 Total Public Safety               17,156,523   16,458,083       698,440   15,450,335




                                       76
                                                                               Schedule C-1
                                                                                Page 7 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                      2009                     2008
                                          Final                   Variance
                                         Budget      Actual      Over/Under    Actual
Economic and Physical Development:
 Economic Development:
  Interlocal agreement                                  74,173                    69,493
  Division of forestry                                  62,575                    55,698
  Grants                                                     -                    55,000
 Other                                               1,407,508                 1,425,748
   Total                                 1,775,755   1,544,256       231,499   1,605,939

 Partnership for Economic Development:
  Operating expenses                                   199,157                   206,723
   Total                                   212,478     199,157        13,321     206,723

 Airport Authority:
  Operating expenses                                    70,000                    70,000
  Capital outlay                                       138,860                    95,556
   Total                                   239,694     208,860        30,834     165,556

 Soil Conservation:
  Salaries and employee benefits                       132,740                   162,266
  Operating expenses                                     8,168                    14,074
  Capital outlay                                             -                     2,361
    Total                                  170,255     140,908        29,347     178,701

 Cooperative Extension:
  Salaries and employee benefits                       202,551                   221,340
 Operating expenses                                     28,404                    28,866
   Total                                   239,553     230,955         8,598     250,206

 4 - H Grant:
  Operating expenses                                    14,085                    16,321
    Total                                   14,150      14,085           65       16,321




                                            77
                                                                                  Schedule C-1
                                                                                   Page 8 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                        2009                       2008
                                           Final                     Variance
                                          Budget       Actual       Over/Under    Actual
 Business Technology Center:
  Salaries and employee benefits                         222,936                    189,590
  Operating expenses                                      43,535                     39,253
  Capital outlay                                          10,151                          -
   Total                                    490,632      276,622        214,010     228,843

Total Economic and Physical Development    3,142,517    2,614,843       527,674    2,652,289

Human Services:
 Public Health:
  Salaries and employee benefits                        4,384,686                  4,378,715
  Operating expenses                                      815,370                    860,461
  Capital outlay                                           50,139                    130,565
   Total                                   5,977,465    5,250,195       727,270    5,369,741

 Mental Health:
  Salaries and employee benefits                        2,828,409                  2,919,168
  Operating expenses                                      602,649                    717,063
  Capital outlay                                                -                      1,054
   Total                                   4,415,577    3,431,058       984,519    3,637,285

 Social Services:
  Salaries and employee benefits                        7,212,523                  6,738,274
  Operating expenses                                   10,831,113                 12,171,109
  Capital outlay                                                -                    198,139
   Total                                  19,784,456   18,043,636     1,740,820   19,107,522

 Veterans Service Officer:
  Salaries and employee benefits                          49,642                     92,967
  Operating expenses                                       5,866                      8,132
   Total                                     58,428       55,508          2,920     101,099

 Council on Aging:
  Operating expenses                        997,334      943,066         54,268     880,393




                                              78
                                                                                   Schedule C-1
                                                                                    Page 9 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                         2009                       2008
                                            Final                     Variance
                                           Budget       Actual       Over/Under    Actual
 Youth Services:
  Salaries and employee benefits                          820,035                    765,965
  Operating expenses                                      172,113                    172,141
  Capital outlay                                                -                     33,899
   Total                                    1,158,083     992,148        165,935     972,005

 Other Agencies:
  Alamance-Caswell-Rockingham LME                         300,000                    300,000
  Project Help                                             36,900                     41,000
  Sentencing alternatives                                  15,749                     17,500
  Vocational rehabilitation                                     -                     23,138
   Total                                     368,493      352,649              -     381,638

 Head Start:
  PA-20:
   Operating expenses                         22,383       12,238         10,145      19,862

  PA-22:
   Salaries and employee benefits                        1,248,572                  1,246,676
   Operating expenses                                      361,929                    347,942
    Total                                   1,627,520    1,610,501        17,019    1,594,618

 Head Start - other grants and donations         200             -          200             -

 Head Start - Transition Grant                 6,605         3,450         3,155            -

 Total Head Start                           1,656,708    1,626,189        30,519    1,614,480

 More At Four:
  Salaries and employee benefits                           46,454                     31,606
  Operating expenses                                       27,642                     33,517
  Capital outlay                                           48,343                          -
   Total                                     250,377      122,439        127,938      65,123

 Total Human Services                      34,666,921   30,816,888     3,850,033   32,129,286




                                               79
                                                                              Schedule C-1
                                                                              Page 10 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                    2009                       2008
                                      Final                      Variance
                                     Budget        Actual       Over/Under    Actual
 Cultural and Recreational:
  Libraries:
   Salaries and employee benefits                   1,293,516                  1,284,634
   Operating expenses                                 404,681                    582,587
   Capital outlay                                      58,807                     42,415
    Total                             1,876,342     1,757,004       119,338    1,909,636

  Other:
   Arts Council                                         8,000                    16,500
   Folk Council                                             -                     5,000
   Fine Arts                                                -                     1,000
    Total                               13,000          8,000         5,000      22,500

 Total Cultural and Recreational      1,889,342     1,765,004       124,338    1,932,136

 Education:
  Public Schools:
   Current expense                   15,981,873    15,981,873             -   15,707,000
   Capital outlay                     1,278,775     1,278,775             -    1,269,775
  Community College:
   Current expense                    2,076,430     2,076,430             -    2,040,718
   Capital outlay                       226,000       200,000        26,000       56,015

 Total Education                     19,563,078    19,537,078        26,000   19,073,508

Total Expenditures                   85,930,686    79,691,336     6,239,350   79,759,359

Revenues Over (Under) Expenditures   (1,428,652)    3,052,917     4,481,569    1,643,577




                                         80
                                                                                                  Schedule C-1
                                                                                                  Page 11 of 11
ROCKINGHAM COUNTY, NORTH CAROLINA

GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008

                                                                  2009                             2008
                                                 Final                          Variance
                                                Budget           Actual        Over/Under         Actual
Other Financing Sources (Uses):
 Transfers to Other Funds:
  Special Revenue Fund                          (2,910,422)      (2,969,701)       (59,279)       (3,358,628)
  Capital Project Fund                             (65,000)         (65,000)             -           (45,500)
  Enterprise Fund                                 (891,959)        (891,959)             -          (923,000)
  Debt Service Fund                               (236,851)        (236,848)             3          (180,668)
  Internal Service Fund                            (40,000)         (40,000)             -           (40,000)
 Transfers from Other Funds:
  Special Revenue Fund                          1,009,930          944,775           65,155       1,210,636
  Capital Project Fund                             50,000           50,000                -               -
  Enterprise Fund                                       -           37,000          (37,000)              -
  Contingency                                           -                -                -               -
  Appropriated fund balance                     4,512,954                -       (4,512,954)              -

Total other financing sources (uses)            1,428,652        (3,171,733)     (4,600,385)      (3,077,160)

Revenues and other financing sources over
(under) expenditures and other financing
sources (uses)                              $            -        (118,816) $     (118,816)       (1,433,583)

Fund balance - July 1                                           17,055,820                       18,489,403

Fund balance - June 30                                        $ 16,937,004                     $ 17,055,820




                                                    81
ROCKINGHAM COUNTY, NORTH CAROLINA                                                           Schedule C-2
                                                                                              Page 1 of 2
AREA MENTAL HEALTH PROGRAM
(AN INTEGRAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
                                                                            2009
                                                                                           Variance
                                                           Final                            Over/
                                                          Budget           Actual           Under
Revenues:
 Fees:
  Medicaid                                                $2,000,000   $      922,579
  CAP/MR Medicaid                                             50,000           37,662
  Insurance                                                  125,000           49,316
  Medicare                                                    90,000           26,095
  Regular Fees                                               137,809          109,790
  ABC 5 cent fund                                             22,000           20,774
  EAP Fees                                                    55,000           44,526
  Drug Fees                                                    3,000              266
  Assessment Fees                                             40,000           36,589
  ADETS Fees                                                  15,000            5,302
  Drug Education School Fees                                  15,000           12,353   _____________

 Total Fees                                                2,552,809        1,265,251        (1,287,558)

 Grants and Other Revenues:
  Contributions                                                1,000                -
  Miscellaneous Revenue                                        2,000            1,750
  Block Grant - Training                                         587              420
  UCR - Unit Cost Reimbursement Funds                        665,000          161,632
  At Risk Children - State - CTSP NON-UCR                          -                -
  LME Funds                                                   27,500           22,917
  Forensic Screening (State)                                   1,000              880
  NON-UCR Adult SAS - Federal                                 40,000           40,000
  NON-UCR Adult MH - Federal                                  13,044           13,044
  Non-UCR Child SA - State (Majors)                           10,000            6,948
  Other Revenue                                                  500              (23)
  Child SA Prevention ( Federal)                              89,021           58,169
  Annie Penn Grant (SAS Prev, PAP, Transport.,D&R)           190,400          113,695
  Non-UCR Adult MH Funds                                      26,956           16,956
  MOE - Maintenance of Effort Funds                          300,000          367,279 _____________

 Total Grants and Other Revenues                           1,367,008          803,667          (563,341)

Total Revenues                                             3,919,817        2,068,918        (1,850,899)




                                                     82
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                 Schedule C-2
                                                                                                    Page 2 of 2
AREA MENTAL HEALTH PROGRAM
(AN INTEGRAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
                                                                                2009
                                                                                                  Variance
                                                              Final                                Over/
                                                             Budget            Actual              Under
Expenditures:
General
  Salaries and Employee Benefits                                                2,589,401
  Operating Expenses                                                              549,414
   Total                                                      4,007,962         3,138,815             869,147

MHS NON-UCR Programs
 Salaries and Employee Benefits                                                   134,888
 Operating Expenses                                                                17,583
  Total                                                         179,608           152,471              27,137

Grant Programs
  Salaries and Employee Benefits                                                  104,120
  Operating Expenses                                                               35,652
   Total                                                        228,007           139,772              88,235


Total Expenditures                                            4,415,577         3,431,058             984,519

Revenues over (under) expenditures                             (495,760)        (1,362,140)           866,380

Other Financing Sources (Uses):
 Intra-fund transfer in (out) - General Fund                    495,760         1,362,140            (866,380)

Revenues and other financing sources over (under)
  expenditures and other financing uses                  $            -    $             -    $              -




                                                    83
                                                                                         Schedule C-3
                                                                                           Page 1 of 2

ROCKINGHAM COUNTY, NORTH CAROLINA

PUBLIC HEALTH PROGRAM
(AN INTREGAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                                   2009
                                                                                       Variance
                                                   Final                                Over/
                                                  Budget           Actual               Under
Revenues:
 State, Federal and Other Grants:
    State Aid to County                      $         166,000 $           167,782 $          1,782
    AIDS Control                                           500                 500                -
    Tuberculosis                                        15,116              15,116                -
    Communicable Disease                                 4,098               4,098                -
    Health Promotion                                    34,391              34,391                -
    CBCCCP                                              46,983              50,789            3,806
    Child Health                                        92,429              92,429                0
    Women's Preventive Health                          171,357             172,304              947
    Women, Infants, Children (Nutritional)             378,194             372,889           (5,305)
    Maternal Health                                     12,304              12,304                -
    Child Services Coordination                         49,138              49,138                -
    Immunization Action Plan                            31,312              28,312           (3,000)
    Environmental Health                                 6,000               6,000                -
    Food and Lodging Grant                               8,000               8,862              862
    Smart Start                                        144,668             135,833           (8,835)
    Childhood Lead Poisoning Prevention                  2,500               2,500                -
    TB Medical Services                                    787                 787                -
    Preparedness Grant                                  54,393              50,590           (3,803)
    Health and Wellness Trust                           26,667              26,666               (1)
    Prescription Assistant Grant                        74,987              60,858          (14,129)
    Dental Grant                                        40,000              40,000                -
    Healthy Carolinians Grant                           30,727              30,727                -

     Total                                            1,390,551           1,362,875         (27,676)

 Health Department Fees
  Clinic Fees                                         1,044,400           1,296,737         252,337
  Dental Clinic Fees                                    349,979             352,345           2,366
  Environmental Health Fees                             240,000             143,262         (96,739)
  Miscellaneous Reimbursement                            20,000              12,470          (7,530)

     Total                                            1,654,379           1,804,814         150,435

Total Revenues                                        3,044,930           3,167,689         122,759




                                                 84
                                                                                                   Schedule C-3
                                                                                                     Page 2 of 2

ROCKINGHAM COUNTY, NORTH CAROLINA

PUBLIC HEALTH PROGRAM
(AN INTREGAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                                            2009
                                                                                                 Variance
                                                          Final                                   Over/
                                                         Budget             Actual                Under
Expenditures:
 General                                                                            701,065
 Health Promotion                                                                   469,013
 Communicable Diseases                                                              208,674
 AIDS Control                                                                       220,450
 BCCCP                                                                               65,695
 Women, Infants, Children                                                           409,075
 Maternal Care Coordination                                                         227,623
 Child Health                                                                       401,436
 Healthy Carolinians                                                                 42,830
 Smart Start                                                                        135,833
 Family Planning                                                                    587,899
 Child Services Coordination                                                        333,333
 Immunization Action Plan                                                            94,682
 Environmental Health                                                               690,034
 Dental Clinic                                                                      377,135
 Food & Lodging                                                                     180,469
 Prescription Assistance                                                             74,727
 Health and Wellness Trust                                                           30,223

Total Expenditures                                           5,977,465             5,250,195          727,270

Revenues over (under) expenditures                           (2,932,535)       (2,082,506)           (850,029)

Other Financing Sources (Uses):
 Intra-fund transfer in - General Fund                       2,932,535             2,082,506          850,029

Revenues and other financing sources over (under)
    expenditures and other financing uses           $                 - $                  - $              -




                                                        85
                                                                               Schedule C-4
                                                                                 Page 1 of 2

ROCKINGHAM COUNTY, NORTH CAROLINA

SOCIAL SERVICES PROGRAM
(AN INTEGRAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                              2009
                                                                            Variance
                                             Final                           Over/
                                            Budget           Actual          Under
Revenues:
 State and Federal and other Grants
   Administration Aid                   $    4,747,566   $    3,565,500 $     (1,182,066)
   Medicaid Transportation                   1,082,000        1,164,575           82,575
   Administration Aid                          551,544          551,544                -
   Fraud                                        76,681            1,356          (75,325)
   Independent Living                           14,850           14,524             (326)
   Child Care                                3,434,262        3,406,332          (27,930)
   IV-B & IV-E Adoption                         59,990          701,061          641,071
   IV-E Optional                                     -           26,766           26,766
   Child Protective Services                   263,380          348,757           85,377
   Adult Day Care                               25,272           22,687           (2,585)
   Food Stamp Claim                                  -            5,970            5,970
   Energy Assistance                            27,691           66,194           38,503
   Child Care IV-E                             441,210          223,753         (217,457)
   IV-D Incentive                              131,071          246,979          115,908
   Crisis Intervention                         564,063          564,063                -
   Chid Care -State Foster                     258,546           81,967         (176,579)
   TANF Domestic Violence                       45,428           40,800           (4,628)
   State Aid to Counties                        74,879           74,879                -
   Share the Warmth                              2,762            2,721              (41)
   Work First Functional Assessment                  -            1,785            1,785
   Special Children Adoption Grant                   -          108,000          108,000
   LME Reimbursement                                 -            5,957            5,957
   Annie Penn Trust Grant                            -          (12,345)         (12,345)

   Total                                    11,801,195       11,213,825        (587,370)

Social Service Fees:
   Health Choice                                     -           18,450                -

Total Revenues                              11,801,195       11,232,275        (568,920)




                                       86
                                                                                                  Schedule C-4
                                                                                                    Page 2 of 2

ROCKINGHAM COUNTY, NORTH CAROLINA

SOCIAL SERVICES PROGRAM
(AN INTEGRAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                                             2009
                                                                                               Variance
                                                          Final                                 Over/
                                                         Budget             Actual              Under
Expenditures:
 Administration:
   Personnel Services                                                        7,212,523
   Operating Expenses                                                        1,008,794
     Total                                                8,373,010          8,221,317             151,693

  Public Assistance:
   Medicaid - local portion                                                  2,598,793
   Medicaid Transportation                                                   1,128,850
   Contracts/Grants - local portion                                          6,094,676
     Total                                               11,411,446          9,822,319           1,589,127

Total Expenditures                                       19,784,456         18,043,636           1,740,820

Revenues over (under) expenditures                        (7,983,261)        (6,811,361)         (1,171,900)

Other Financing Sources (Uses):
 Intra-fund transfer in - General Fund                    7,983,261          6,811,361           1,171,900

Revenues and other financing sources over (under)
 expenditures and other financing uses               $             -    $             -    $              -




                                                    87
                                                                                                  Schedule C-5
                                                                                                    Page 1 of 3

ROCKINGHAM COUNTY, NORTH CAROLINA

YOUTH INVOLVEMENT PROGRAM
(AN INTREGAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                                                 2009
                                                                                                 Variance
                                                                Final                             Over/
                                                               Budget           Actual            Under

  Revenues:
    DJJP Grant                                             $      268,592   $      268,592   $              -
    Alternative Learning Grant                                     65,000           65,000                  -
    One on One Grant                                               19,350           16,468             (2,882)
    Support Our Youth Grant                                        85,498           84,828               (670)
    Dropout Prevention Grant                                      149,557          149,557                  -
    Reidsville Police Grant                                        27,600           26,845               (755)
    JCPC Demonstration Grant                                       86,005           81,772             (4,233)
    Clinical Reimbursement                                         54,653           26,307            (28,346)
    Gang Reduction, Intervention & Prevention Grant               100,000          100,500                500
    LME Non-UCR Grant                                              20,047           20,047                  0
    Juvenile Center Reimbursement                                     638            2,158              1,520
    Program Fees                                                      140            2,145              2,005
    Donations                                                         560              585                 25

        Total                                                     877,640          844,805            (32,835)

  Expenditures:
   Youth Involvement Program:
      Salaries & Employee Benefits                                                 519,704
      Operating Expenses                                                            47,283
       Total                                                      601,991          566,987            35,004

   Alternative Learning:
       Salaries & Employee Benefits                                                 59,662
       Operating Expenses                                                            8,535
         Total                                                     68,035           68,197              (162)

   SOS Program:
      Salaries & Employee Benefits                                                  63,961
      Operating Expenses                                                            20,865
        Total                                                      85,498           84,826                  672




                                                      88
                                                                                        Schedule C-5
                                                                                          Page 2 of 3

ROCKINGHAM COUNTY, NORTH CAROLINA

YOUTH INVOLVEMENT PROGRAM
(AN INTREGAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                                        2009
                                                                                       Variance
                                                           Final                        Over/
                                                          Budget       Actual           Under
   One on One:
      Salaries & Employee Benefits                                         16,636
      Operating Expenses                                                    1,895
        Total                                                 19,350       18,531                 819

   Grad Guys
       Salaries & Employee Benefits                                            7,567
       Operating Expenses                                                        588
        Total                                                 20,000           8,155        11,845

   Lady Bugs
      Salaries & Employee Benefits                                             8,994
      Operating Expenses                                                         362
        Total                                                 20,000           9,356        10,644

   Gang Reduction, Intervention & Prevention Grant
      Salaries & Employee Benefits                                         88,454
      Operating Expenses                                                   10,757
        Total                                                100,000       99,211                 789

   JCPC Demonstration Grant:
      Salaries & Employee Benefits                                         78,678
      Operating Expenses                                                    3,817
        Total                                                 86,005       82,495            3,510

   LME Non-UCR Grant
     Operating Expenses                                                    19,163
       Total                                                  20,047       19,163                 884

   Dropout Prevention
      Operating Expenses                                                       8,932
        Total                                                109,557           8,932       100,625




                                                     89
                                                                                                   Schedule C-5
                                                                                                     Page 3 of 3

ROCKINGHAM COUNTY, NORTH CAROLINA

YOUTH INVOLVEMENT PROGRAM
(AN INTREGAL PART OF THE GENERAL FUND)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
 IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009

                                                                                 2009
                                                                                                  Variance
                                                               Final                               Over/
                                                              Budget            Actual             Under
   Reidsville Police Grant
       Salaries & Employee Benefits                                                 24,003
       Operating Expenses                                                            2,292
        Total                                                     27,600            26,295              1,305

   Total Expenditures                                           1,158,083          992,148            165,935

  Revenues over (under) expenditures                            (280,443)         (147,343)          (133,100)

  Other Financing Sources (Uses):
      Intra-fund transfer in - General Fund                      280,443           147,343            133,100

  Revenue and other financing sources over (under)
      expenditures and other financing uses               $             -   $            -    $              -




                                                     90
                          SPECIAL REVENUE FUNDS


          Special Revenue Funds are used to account for specific revenues that are legally
                        restricted to expenditures for particular purposes.



Capital Reserve Fund - This fund was established in accordance with North Carolina law to
account for the accumulation of resources to be used for major capital purchases. These resources
are transferred to the Capital Projects Fund when needed.

Fire District Fund - This fund accounts for the ad valorem tax-levies of the seventeen fire districts
in Rockingham County.

Tourism Development - This fund accounts for the accumulation of resources generated by the
Occupancy Tax to be used for the development of tourism.

Emergency Telephone System - This fund accounts for the telephone surcharges to be used for
the emergency telephone system.

CDBG Grant - This fund accounts for the activities related to CDBG grants.

CDBG Scattered Site Housing Fund - This fund accounts for the County's participation in the
CDBG Scattered Site Housing Grant.

Duke Power Help Program Fund - This fund accounts for the activities related to utility
assistance paid for via various grants.

Vera Holland Stoneville Library - This fund accounts for the monies donated by Vera Holland to
the Stoneville Library for maintenance of the facility.
                                                                                                                           Schedule D-1

ROCKINGHAM COUNTY, NORTH CAROLINA

MAJOR SPECIAL REVENUE FUND - CAPITAL RESERVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                                 2009                              2008
                                           Original            Final                           Variance
                                           Budget             Budget            Actual        Over/Under          Actual
Revenues:
 Local option sales tax                $     3,757,000    $   3,757,000     $   3,325,746     $   (431,254) $     3,687,086
 Restricted intergovernmental                        -                -           463,879          463,879        2,339,868
 Investment earnings                                 -                -           196,918          196,918          135,133

   Total revenues                            3,757,000        3,757,000         3,986,543          229,543        6,162,087

Other Financing Sources (Uses):
 Transfers In:
   General Fund                                       -       1,552,434         2,969,701         1,417,267       3,358,628
   Capital project funds                              -         100,000           100,000                 -               -
 Transfers Out:
   General Fund                                      -          (944,775)         (944,775)              -          (769,775)
   Other funds                              (3,865,046)       (5,417,480)       (5,415,234)          2,246        (3,917,954)
   Appropriated fund balance                   108,046           952,821                 -        (952,821)                -

Total other financing sources (uses)        (3,757,000)       (3,757,000)       (3,290,308)        466,692        (1,329,101)

Revenues and other financing
sources (uses) over (under)
financing sources (uses)               $              -   $            -          696,235     $    696,235        4,832,986

Fund Balances:
Beginning of year - July 1                                                      8,189,770                         3,356,784

End of year - June 30                                                       $   8,886,005                     $   8,189,770




                                                                 91
                                                                                       Schedule D-2
ROCKINGHAM COUNTY, NORTH CAROLINA                                                        Page 1 of 2


SPECIAL REVENUE FUND - FIRE DISTRICTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                         2009                             2008
                                         Final                       Variance
                                        Budget          Actual      Over/Under           Actual
Revenues:
 Ad valorem taxes                   $   2,716,266   $   2,851,751   $   135,485    $     2,822,043
 Investment earnings                            -          13,711        13,711             27,207

Total revenues                          2,716,266       2,865,462       149,196          2,849,250

Expenditures:
 Public Safety:
   Fire Districts:
     Wentworth                            322,162         322,162             -            360,351
     Stokesdale                           145,518         145,518             -            162,125
     Bethany                              279,790         279,790             -            303,660
     Northwest                            148,514         146,370         2,144            130,876
     Huntsville                           175,847         175,847             -            160,546
     Oregon Hill                          125,353         115,853         9,500            149,822
     Shiloh                               249,769         249,769             -            273,552
     Monroeton                            317,510         317,510             -            306,742
     Williamsburg                         198,988         198,988             -            237,086
     Summerfield                          102,397         102,397             -             89,152
     Yanceyville Road                     106,678         106,678             -             94,599
     Stoneyview                           120,492         120,492             -            114,450
     Casville                               9,048           9,048             -              9,043
     Jacobs Creek                         101,761          88,140        13,621             71,644
     Madison-Mayodan                      181,437         181,437             -            182,565
     Stokes-Rockingham                     10,969           9,947         1,022              5,211
     Ruffin                                93,614          93,614             -            107,992
     Draper                                50,929          53,079        (2,150)            50,937
     Leaksville                           226,326         227,790        (1,464)           229,663
     Spray-Draper                           7,417           7,968          (551)             9,007

 Total public safety expenditures       2,974,519       2,952,397        22,122          3,049,023




                                            92
                                                                                              Schedule D-2
ROCKINGHAM COUNTY, NORTH CAROLINA                                                               Page 2 of 2


SPECIAL REVENUE FUND - FIRE DISTRICTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                             2009                                2008
                                            Final                         Variance
                                           Budget           Actual       Over/Under             Actual
 Debt Service:
  Principal retirement                        42,500           42,500                 -            42,500

Revenues over (under) expenditures          (300,753)        (129,435)       171,318             (242,273)

Other Financing Sources (Uses):
 Appropriated fund balance                   300,753                 -      (300,753)                    -

Revenues and other financing sources
(uses) over (under) expenditures       $            -        (129,435) $    (129,435)            (242,273)

Fund Balance:
Beginning of year - July 1                                    439,699                             681,972

End of year - June 30                                   $     310,264                     $       439,699




                                               93
                                                                                            Schedule D-3
ROCKINGHAM COUNTY, NORTH CAROLINA

SPECIAL REVENUE FUND - TOURISM DEVELOPMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                             2009                             2008
                                            Final                         Variance
                                           Budget           Actual       Over/Under          Actual
Revenues:
 County occupancy tax                  $     168,560    $     261,125    $    92,565 $         287,614
 Investment earnings                           8,940            3,146         (5,794)            5,666
 Miscellaneous                                     -                -              -            20,880
   Total revenues                            177,500          264,271         86,771           314,160

Expenditures:
 Cultural and recreational                   208,466          298,239        (89,773)          331,313

Revenues over (under) expenditures           (30,966)         (33,968)        (3,002)          (17,153)

Other Financing Sources (Uses):
 Fund balance appropriated                    30,966                 -       (30,966)                 -

Revenues and other financing sources
(uses) over (under) expenditures       $            -         (33,968) $     (33,968)          (17,153)

Fund Balance:
Beginning of year - July 1                                    148,498                          165,651

End of year - June 30                                   $     114,530                   $      148,498




                                               94
                                                                                                      Schedule D-4
ROCKINGHAM COUNTY, NORTH CAROLINA

SPECIAL REVENUE FUND - EMERGENCY TELEPHONE SYSTEM
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                      2009                            2008
                                                     Final                         Variance
                                                    Budget           Actual       Over/Under          Actual
Revenues:
 Other Taxes and Licenses:
   911 System subscriber fees                   $            -   $            7   $          7    $     149,740
 Restricted Intergovernmental:
   911 funds                                          313,000          486,140        173,140           239,097
   Miscellaneous                                            -              387            387                 -
   Investment earnings                                      -           10,908         10,908            36,939

Total revenues                                        313,000          497,442        184,442           425,776

Expenditures:
 Public Safety                                        594,381          466,700        127,681           257,872

Total expenditures                                    594,381          466,700        127,681           257,872

Revenues over (under) expenditures                   (281,381)          30,742        312,123           167,904

Other Financing Sources (Uses):
Transfers Out:
 To General Fund                                            -                 -              -         (440,861)
 Appropriated fund balance                            281,381                 -       (281,381)               -

Total other financing sources (uses)                  281,381                 -       (281,381)        (440,861)

Revenues and other financing sources (uses)
over (under) expenditures and other financing
sources (uses)                                  $            -          30,742    $    30,742          (272,957)

Fund Balance:
Beginning of year - July 1                                             465,776                          738,733

End of year - June 30                                            $     496,518                    $     465,776




                                                       95
                                                                                           Schedule D-5
ROCKINGHAM COUNTY, NORTH CAROLINA

SPECIAL REVENUE FUND - CDBG GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                              Actual
                                        Project              Prior           Current
                                     Authorization           Years            Year         Total to Date
Revenues:
 Federal grants                      $     815,000       $     64,407    $      85,561     $     149,968

Expenditures:
 Economic development                      751,250             11,250           65,586            76,836
 Capital outlay                             63,750             53,157                -            53,157

Total expenditures                         815,000             64,407           65,586           129,993

Revenues over (under) expenditures   $               -   $           -          19,975     $      19,975

Fund Balance:
Beginning of year - July 1                                                             -

End of year - June 30                                                    $      19,975




                                             96
                                                                                              Schedule D-6
ROCKINGHAM COUNTY, NORTH CAROLINA

SPECIAL REVENUE FUND - CDBG SCATTERED SITE HOUSING
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                             Actual
                                        Project            Prior            Current
                                      Authorization        Years             Year         Total to Date

Revenues:
 Federal and State grants             $    400,000     $     13,945     $     193,121     $        207,066

Expenditures:
 Economic and physical developmen          420,487           50,524           157,142              207,666

Revenues over (under) expenditure           (20,487)         (36,579)          35,979                 (600)

Other Financing Sources (Uses):
 Appropriated fund balance                   20,487                -                  -                  -

Revenue and other financing sources
over (under) expenditures             $           - $        (36,579)          35,979     $           (600)

Fund Balance:
Beginning of year - July 1                                                    (36,579)

End of year - June 30                                                   $        (600)




                                             97
                                                                                            Schedule D-7
ROCKINGHAM COUNTY, NORTH CAROLINA

SPECIAL REVENUE FUND - DUKE POWER HELP PROGRAM
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                           Actual
                                       Project            Prior           Current
                                    Authorization         Years            Year         Total to Date

Revenues:
 State grants                       $     100,000     $           - $        35,860     $      35,860

Expenditures:
 General government                        10,000                 -               -                 -
 Economic and physical developmen          90,000                 -          35,860            35,860

Total expenditures                        100,000                 -          35,860            35,860

Revenues over (under) expenditure   $               - $           -                 - $             -

Fund Balance:
Beginning of year - July 1                                                          -

End of year - June 30                                                 $             -




                                               98
                                                                                          Schedule D-8
ROCKINGHAM COUNTY, NORTH CAROLINA

SPECIAL REVENUE FUND - VERA HOLLAND STONEVILLE LIBRARY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                           2009                           2008
                                          Final                          Variance
                                         Budget            Actual       Over/Under        Actual
Revenues:
 Miscellaneous income                $       7,500     $       9,152    $     1,652   $      21,190
 Investment earnings                         2,500             5,998          3,498          10,998

Total revenues                              10,000            15,150          5,150          32,188

Expenditures:
 Cultural and recreational                  10,000                  -        10,000                (1)

Revenues over (under) expenditures   $             -          15,150    $    15,150          32,189

Fund Balance:
Beginning of year - July 1                                   261,891                        229,702

End of year - June 30                                  $     277,041                  $     261,891




                                                  99
                    DEBT SERVICE FUND




The Debt Service Fund is used to account for the accumulation of resources for,
and the payment of, general long-term debt principal, interest and related costs.
                                                                                               Schedule E-1
ROCKINGHAM COUNTY, NORTH CAROLINA

DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                              2009                             2008
                                            Final                            Variance
                                           Budget             Actual        Over/Under         Actual
Revenues:
 Investment earnings                   $             -    $            4    $         4    $       1,508

Expenditures:
 Debt Service:
   Principal retirement                     2,412,313         2,412,311              2          2,341,653
   Interest and fees                        3,242,018         3,241,762            256          1,756,486
Total expenditures                          5,654,331         5,654,073            258          4,098,139

Revenues over (under) expenditures         (5,654,331)        (5,654,069)          262         (4,096,631)

Other Financing Sources (Uses):
 Transfers In:
   From General Fund                          236,851           236,848              (3)          182,203
   From Capital Reserve Fund                5,417,480         5,415,234          (2,246)        3,916,419

Total other financing sources (uses)        5,654,331         5,652,082          (2,249)        4,098,622

Revenues and other financing sources
(uses) over (under) expenditures and
other financing sources (uses)         $             -            (1,987) $      (1,987)           1,991

Fund Balances:
Beginning of year - July 1                                        1,991                                 -

End of year - June 30                                     $            4                   $       1,991




                                                    100
                            CAPITAL PROJECTS FUNDS


                  The Capital Projects Funds are used to account for the acquisition and
                   construction of major capital facilities other than those financed by
                                    proprietary funds and trust funds.



Courthouse Capital Project Fund - This fund is used to account for construction improvements to
the courthouse.

EOC and Tower Capital Project Fund - This fund is used to account for the construction of an
emergency operations center and communications tower.

School Capital Projects Fund - This fund is used to account for the construction and renovation of
public schools, financed by transfers from the Capital Reserve - Public School Fund. These transfers
include funds from the State's Public Building Capital Fund and matching county funds.

Airport Capital Projects Fund - This fund is used to account for the construction of a runway and
taxiway improvements at the local airport.

EMS Capital Projects Fund - This fund is used to account for the construction of an EMS base.

Equestrian Center Capital Project Fund - This fund is used to account for the construction of an
equestrian center.

Library Capital Projects Fund - This fund is used to account for the construction of a library.

Animal Shelter Capital Projects Fund - This fund is used to account for the construction of a new
County animal shelter.
                                                                                                 Schedule F-1
ROCKINGHAM COUNTY, NORTH CAROLINA

MAJOR CAPITAL PROJECT FUND-COURTHOUSE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                                Actual
                                          Project             Prior           Current
                                       Authorization          Years            Year          Total to Date
Revenues:
 Investment earnings                   $    1,112,317 $              74 $        615,307 $          615,381
 Miscellaneous revenues                             -            33,750          253,162            286,912

Total revenues                              1,112,317            33,824          868,469            902,293

Expenditures:
 Capital outlay-general government         48,710,673         2,325,061       16,523,690         18,848,751

Revenues over (under) expenditures         (47,598,356)       (2,291,237)     (15,655,221)       (17,946,458)

Other Financing Sources (Uses) :
 Transfers in:
   Governmental funds                         100,000           101,500                  -          101,500
   Transfers out:
   Governmental funds                        (100,000)                 -        (100,000)          (100,000)
   Long-term debt issued                   47,598,356                  -      46,978,755         46,978,755
   Premium on long-term debt issued                 -                  -         619,601            619,601

Total other financing sources (uses)       47,598,356           101,500       47,498,356         47,599,856

Revenues and other financing sources
(uses) over (under) expenditures       $             -    $   (2,189,737)     31,843,135     $   29,653,398

Fund Balance:
Beginning of year - July 1                                                     (2,189,737)

End of year - June 30                                                       $ 29,653,398




                                                  101
                                                                                                 Schedule F-2
ROCKINGHAM COUNTY, NORTH CAROLINA

CAPITAL PROJECT FUND - EOC AND TOWER
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                                Actual
                                          Project            Prior             Current
                                       Authorization         Years              Year         Total to Date
Revenues:
 Miscellaneous                         $            -    $           - $          12,238 $           12,238
 Investment earnings                                -            1,725                 -              1,725

Total revenues                                      -            1,725            12,238             13,963

Expenditures:
 Capital outlay-public safety              4,356,245         2,107,685          1,975,274         4,082,959

Revenues over (under) expenditures         (4,356,245)       (2,105,960)       (1,963,036)       (4,068,996)


Other Financing Sources (Uses) :
 Transfers in:
   General Fund                               50,000            50,000                   -           50,000
   Transfers out:
   General Fund                              (50,000)                 -           (50,000)          (50,000)
   Long-term debt issued                   4,356,245                  -         4,356,245         4,356,245

Total other financing sources (uses)       4,356,245            50,000          4,306,245         4,356,245

Revenues and other financing sources
(uses) over (under) expenditures       $            -    $   (2,055,960)        2,343,209    $      287,249

Fund Balance:
Beginning of year - July 1                                                     (2,055,960)

End of year - June 30                                                      $     287,249




                                                 102
                                                                                               Schedule F-3
ROCKINGHAM COUNTY, NORTH CAROLINA

SCHOOL CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                              Actual
                                          Project           Prior            Current
                                       Authorization        Years             Year         Total to Date
Revenues:
 Intergovernmental:
   Sales tax refund                    $       3,066    $           -    $             -   $               -

Expenditures:
 Land and administration                      40,943               -            39,958             39,958
 Bethany Elementary                          374,610         108,843                 -            108,843
Total expenditures                           415,553         108,843            39,958            148,801

Revenues over (under) expenditures          (412,487)        (108,843)          (39,958)         (148,801)

Other Financing Sources (Uses) :
 Capital Reserve Fund                        371,544         336,239                   -          336,239

Revenues and other financing sources
(uses) over (under) expenditures and
other financing sources (uses)         $           -    $    227,396            (39,958) $        187,438

Fund Balance:
Beginning of year - July 1                                                     227,396

End of year - June 30                                                    $     187,438




                                                 103
                                                                                                Schedule F-4
ROCKINGHAM COUNTY, NORTH CAROLINA

AIRPORT CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                               Actual
                                           Project            Prior           Current
                                         Authorization        Years            Year         Total to Date

Revenues:
 Federal grants                          $     720,000    $    130,763    $      99,706     $      230,469
 State grants                                1,801,508         197,897          303,117            501,014
 Local match                                   268,322         148,035          120,287            268,322
 Miscellaneous                                       -          43,343            2,449             45,792
 Investment earnings                                 -           5,758            4,328             10,086

Total revenues                               2,789,830         525,796          529,887          1,055,683

Expenditures:
 Capital outlay - economic development       2,824,830         376,675          641,404          1,018,079

Revenues over (under) expenditures             (35,000)        149,121          (111,517)           37,604

Other Financing Sources (Uses) :
 Transfers from General Fund                    35,000                -          35,000             35,000

Revenues and other financing sources
over (under) expenditures and other
financing sources (uses)                 $           -    $    149,121           (76,517) $         72,604

Fund Balance:
Beginning of year - July 1                                                      149,121

End of year - June 30                                                     $      72,604




                                                  104
                                                                                          Schedule F-5
ROCKINGHAM COUNTY, NORTH CAROLINA

EMS CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                           Actual
                                         Project           Prior          Current
                                       Authorization       Years           Year       Total to Date

Revenues:
 Investment earnings                   $      41,000   $     41,232   $      20,035   $       61,267

Expenditures:
 Capital outlay - public safety              891,000          1,200           3,863            5,063

Other Financing Sources (Uses) :
 Transfers in:
   From Capital Reserve Fund                  50,000         50,000               -           50,000
   Long-term debt issued                     800,000              -         800,000          800,000

Total other financing sources (uses)         850,000         50,000         800,000          850,000

Revenue and other financing sources
(uses) over (under) expenditures
and other financing sources (uses)     $           -   $     90,032         816,172   $      906,204

Fund Balance:
Beginning of year - July 1                                                   90,032

End of year - June 30                                                 $     906,204




                                                105
                                                                                                     Schedule F-6
ROCKINGHAM COUNTY, NORTH CAROLINA

EQUESTRIAN CENTER CAPITAL PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                                      Actual
                                                Project            Prior             Current
                                              Authorization        Years              Year       Total to Date
Revenues:
 State grants                                 $   1,000,000    $   1,000,000     $           -   $    1,000,000
 Miscellaneous-private grants                     1,933,500          427,681            40,750          468,431
 Investment earnings                                  3,255            3,256               362            3,618

Total revenues                                    2,936,755        1,430,937            41,112        1,472,049

Expenditures:
 Capital outlay - cultural and recreational       3,265,755        1,729,532            33,782        1,763,314

Revenues over (under) expenditures                 (329,000)        (298,595)            7,330         (291,265)

Other Financing Sources (Uses) :
 Transfers in:
  General Fund                                      329,000         299,000             30,000          329,000

Total other financing sources                       329,000         299,000             30,000          329,000

Revenues and other financing sources
over (under) expenditures                     $           -    $           405          37,330   $       37,735

Fund Balance:
Beginning of year - July 1                                                                 405

End of year - June 30                                                            $      37,735




                                                       106
                                                                                                    Schedule F-7
ROCKINGHAM COUNTY, NORTH CAROLINA

LIBRARY CAPITAL PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                                   Actual
                                            Project              Prior            Current
                                         Authorization           Years             Year         Total to Date
Revenues:
 Miscellaneous                       $         100,000       $           -    $      61,000     $       61,000

Expenditures:
 Cultural and recreational                     100,000              9,230            30,695             39,925

Revenues over (under) expenditures   $                   -   $      (9,230)          30,305     $       21,075

Fund Balance:
Beginning of year - July 1                                                            (9,230)

End of year - June 30                                                         $      21,075




                                                   107
                                                                                               Schedule F-8
ROCKINGHAM COUNTY, NORTH CAROLINA

ANIMAL SHELTER CAPITAL PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                              Actual
                                          Project           Prior            Current
                                       Authorization        Years             Year         Total to Date
Revenues:
 Investment earnings                   $           -    $           -    $         169     $          169
 Miscellaneous                                66,000                -           37,548             37,548

Total revenues                                66,000                -           37,717             37,717

Expenditures:
 Public safety                         $     230,200 $         4,520     $     134,528 $          139,048

Revenues over (under) expenditures          (164,200)          (4,520)          (96,811)         (101,331)

Other Financing Sources (Uses) :
 Transfers in:
  General Fund                                30,000          30,000                   -           30,000
 Transfers out:
  General Fund                               (30,000)               -                  -                   -
  Long-term debt issued                      164,200                -                  -                   -

Total other financing sources (uses)         164,200          30,000                   -           30,000

Revenues and other financing sources
(uses) over (under) expenditures       $           -    $     25,480            (96,811) $        (71,331)

Fund Balance:
Beginning of year - July 1                                                      25,480

End of year - June 30                                                    $      (71,331)




                                                 108
                                   ENTERPRISE FUNDS


          The Enterprise Funds are used to account for operations that are financed and operated
          in a manner similar to private business enterprises - where the intent of the governing
              body is that the costs of providing goods and services to the general public on
               a continuing basis be financed or recovered primarily through user charges.



Water Fund - This fund is used to account for the operation of the County's water line system.

Sewer Fund - This fund is used to account for the operation of the County's sewer collection system and
contracted sewer treatment services.

Landfill Fund - This fund is used to account for the operations of the County's solid waste activities.
                                                                                                     Schedule G-1
                                                                                                       Page 1 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

ENTERPRISE FUND - WATER
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL (NON-GAAP, MODIFIED ACCRUAL)
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                             2009                          2008
                                                                           Variance
                                         Budget             Actual        Over/Under       Actual
Revenues:
 Operating Revenues:
  Water usage fees                   $     241,000      $     264,157     $    23,157 $      256,337
  Water connection fees                     38,400             15,676         (22,724)        32,045
  Other operating revenues                       -              1,100           1,100              -
  Total operating revenues                 279,400            280,933           1,533        288,382

 Non-operating Revenues:
  Investment earnings                              -                 38           38                24

Total revenues                             279,400            280,971           1,571        288,406

Operating Expenses:
 Water Administration:
  Administrative expenses                    5,000              5,000                  -       5,000

 Water Operations:
  Personnel                                 61,619             62,074            (455)        44,247
  Supplies                                   7,390              5,661           1,729          7,358
  Repairs and maintenance                   39,190             34,533           4,657         32,554
  Other operating expenditures             122,168            102,346          19,822        100,504
  Total                                    230,367            204,614          25,753        184,663

 Debt Service:
  Interest and fees                        235,271            229,688           5,583        251,752
  Debt principal                           546,305            546,304               1        530,207
  Total                                    781,576            775,992           5,584        781,959

 Capital outlay                             18,105             18,105                  -      14,144

Total expenditures                       1,035,048          1,003,711          31,337        985,766

Revenues over (under) expenditures        (755,648)          (722,740)         32,908       (697,360)




                                                  109
                                                                                                                Schedule G-1
                                                                                                                  Page 2 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

ENTERPRISE FUND - WATER
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL (NON-GAAP, MODIFIED ACCRUAL)
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                        2009                           2008
                                                                                     Variance
                                                    Budget             Actual       Over/Under         Actual
Other Financing Sources (Uses):
 Transfer In:
  General                                             705,648            705,648              -          706,500
  Appropriated fund balance (contingency)              50,000                  -        (50,000)               -
Total other financing sources (uses)                  755,648            705,648        (50,000)         706,500


Revenues and other financing sources (uses)
over (under) expenditures                       $             -    $     (17,092) $     (17,092) $         9,140


Reconciliation from Modified Accrual to Full Accrual Basis:

Revenues and other financing sources (uses)
over (under) expenditures                                          $     (17,092)                  $       9,140

Reconciling Items:
 Capital contribution                                                          -                         169,422
 Investment earnings - Enterprise Fund
  capital project                                                          4,081                             -
 Depreciation                                                           (246,365)                       (242,615)
 Decrease in debt principal                                              546,304                         530,207
 Capital project transfer                                                (22,200)                              -
 Capital project expenditures not capitalized                               (900)
 Capital outlay                                                           18,105                          14,144
 Increase (decrease) in other post-employment
  benefits liability                                                      (6,375)                               -

 Change in net assets                                              $     275,558                   $     480,298




                                                             110
                                                                                                   Schedule G-2
                                                                                                     Page 1 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

ENTERPRISE FUND - SEWER
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL (NON-GAAP, MODIFIED ACCRUAL)
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                             2009                         2008
                                                                          Variance
                                         Budget             Actual       Over/Under       Actual
Revenues:
 Operating Revenues:
  Sewer usage fees                   $     532,000      $     502,840    $   (29,160) $     461,051
  Sewer connection fees                     18,400              7,150        (11,250)        12,792
  Total operating revenues                 550,400            509,990        (40,410)       473,843

 Non-operating Revenues:
  Investment earnings                              -            2,967         (2,967)         5,582

Total revenues                             550,400            512,957        (37,443)       479,425

Expenditures:
 Sewer Administration:
  Administrative expenses                    5,000              5,000                 -       5,000

 Sewer Operations:
  Salaries and employee benefits            61,621             62,071           (450)        44,242
  Supplies                                   8,170              6,172          1,998          6,534
  Repairs and maintenance                   28,506             28,096            410         28,541
  Other operating expenditures             162,094            116,560         45,534         96,018
  Total                                    262,086            212,899         49,187        175,335

 Debt Service:
  Interest and fees                        156,621            153,086          3,535        165,855
  Debt principal                           313,371            313,371              -        313,370
  Total                                    469,992            466,457          3,535        479,225

 Capital outlay                             24,633             24,633                 -      30,425

Total expenditures                         761,711            708,989         52,722        689,985

Revenues over (under) expenditures        (211,311)          (196,032)        15,279       (210,560)




                                                  111
                                                                                                                Schedule G-2
                                                                                                                  Page 2 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

ENTERPRISE FUND - SEWER
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL (NON-GAAP, MODIFIED ACCRUAL)
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                        2009                           2008
                                                                                     Variance
                                                    Budget             Actual       Over/Under         Actual
Other Financing Sources (Uses):
 Transfer In:
  General Fund                                        186,311            186,311              -          216,500
 Appropriated fund balance (contingency)               25,000                  -        (25,000)               -
  Total other financing sources (uses)                211,311            186,311        (25,000)         216,500

Revenues and other financing sources (uses)
over (under) expenditures                       $             -    $      (9,721) $      (9,721) $         5,940

Reconciliation from Modified Accrual to Full Accrual Basis:

Revenues and other financing sources (uses)
over (under) expenditures                                          $      (9,721)                  $       5,940

Reconciling Items:
 Depreciation                                                           (239,515)                       (236,695)
 Decrease in debt principal                                              313,371                         313,370
 Capital outlay                                                           24,633                          30,425
 Capital project transfer                                                (14,800)                              -
 Investment earnings - Enterprise Fund
  capital project                                                          2,721                                -
 Capital project expenditures not capitalized                               (600)
 Capital contributions                                                    50,525                                -
 Increase (decrease) in other post-
  employment benefits liability                                           (6,375)                               -

 Change in net assets                                              $     120,239                   $     113,040




                                                             112
                                                                                   Schedule G-3
                                                                                     Page 1 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

ENTERPRISE FUND - LANDFILL
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL (NON-GAAP, MODIFIED ACCRUAL)
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                        2009                         2008
                                                                    Variance
                                       Budget          Actual      Over/Under       Actual
Revenues:
 Operating Revenues:
  Solid waste charges                $ 3,384,993     $ 3,207,025   $   (177,968) $ 3,293,573
  Tire and appliance tax                 137,350         112,084        (25,266)     128,889
  Recycling                               98,520          20,311        (78,209)      87,387
  Other                                        -          23,122         23,122            -
  Total operating revenues             3,620,863       3,362,542       (258,321)    3,509,849

 Non-operating Revenues:
  Grant                                      8,800        18,098         9,298          5,334
  Investment earnings                            -       282,997       282,997        488,826
  Total non-operating revenues               8,800       301,095       292,295        494,160

Total revenues                         3,629,663       3,663,637        33,974      4,004,009

Expenditures:
 Landfill Administration:
  Administrative expenses                   79,800        79,800              -       145,496

 Landfill Operations:
  Salaries and employee benefits         665,600         607,045        58,555        604,501
  Supplies                               367,776         223,542       144,234        225,883
  Repairs and maintenance                253,445         214,539        38,906        214,243
  Professional expenses                  272,015         136,645       135,370        116,292
  Other operating expenditures           631,286         382,366       248,920        524,523
  Total                                2,190,122       1,564,137       625,985      1,685,442

 Capital outlay                          690,574         690,574              -       667,277

Total expenditures                     2,960,496       2,334,511       625,985      2,498,215

Revenues over (under) expenditures       669,167       1,329,126       659,959      1,505,794




                                      113
                                                                                                       Schedule G-3
                                                                                                         Page 2 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

ENTERPRISE FUND - LANDFILL
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL (NON-GAAP, MODIFIED ACCRUAL)
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                          2009                           2008
                                                                                        Variance
                                                        Budget           Actual        Over/Under       Actual
Other Financing Sources (Uses):
  Transfer out - Capital Reserve Fund                    (773,182)                -        773,182               -
  Fund balance appropriated                               104,015                 -       (104,015)              -
  Total                                                  (669,167)                -        669,167               -

Revenues and other financing sources (uses)
over (under) expenditures and other financing
sources (uses)                                     $             -   $ 1,329,126       $ 1,329,126    $ 1,505,794


Reconciliation from Modified Accrual to Full Accrual Basis:

Revenues and other financing sources (uses)
over (under) expenditures                                            $ 1,329,126                      $ 1,505,794

Reconciling Items:
 Capital outlay                                                             690,574                       667,277
 Loss on disposal of capital assets                                               -                        (4,530)
 Depreciation                                                            (1,527,767)                     (493,092)
 Increase (decrease) in other post-employment
  benefits liability                                                       (64,108)                              -

 Change in net assets                                                $     427,825                    $ 1,675,449




                                                       114
                                                                                                 Schedule G-4
ROCKINGHAM COUNTY, NORTH CAROLINA

SEWER & WATER CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND OTHER
FINANCING SOURCES (USES) - BUDGET AND ACTUAL
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2009


                                                                                Actual
                                         Project             Prior             Current
                                       Authorization         Years              Year         Total to Date

Revenues:
  Grant                                $      40,000     $      40,000     $           -     $      40,000
  Investment earnings                        126,262           124,137             6,802           130,939
  Miscellaneous                              113,422           113,423                 -           113,423

  Total revenues                             279,684           277,560             6,802           284,362

Expenditures:
 Capital outlay                            5,493,669         5,212,440             1,500         5,213,940

Revenues over (under) expenditures         (5,213,985)       (4,934,880)           5,302         (4,929,578)

Other Financing Sources (Uses) :
 Long-term debt issued                     5,200,164         5,200,164                   -       5,200,164
 Transfers In:
   General Fund                               50,821            50,821                   -          50,821
 Transfers Out:
   General Fund                              (37,000)                 -           (37,000)         (37,000)

Total other financing sources (uses)       5,213,985         5,250,985            (37,000)       5,213,985

Revenues and other financing sources
(uses) over (under) expenditures and
other financing sources (uses)         $            -    $     316,105     $      (31,698) $       284,407




                                                  115
                        INTERNAL SERVICE FUNDS


             Internal Service Funds are used to account for the financing of goods and
               services provided by one department or agency to other department or
                       agencies of the County on a cost reimbursement basis.



General Insurance Deductible Fund - This fund is used to account for payment of the County's
deductible on its general liability insurance coverage.

Workman's Compensation Fund - This fund was established as a self-insurance fund to accumulate
claim reserves and to pay claims and administrative fees from workman's compensation liability.

Health Insurance Fund - This fund was established as a self-insurance fund for employee health
insurance coverage. The employee's premium and the County's contribution are deposited
in this fund. Payments for health coverage are made to a third-party administrator for the
statement of claims plus administrative expenses.

Cafeteria Plan Fund - This fund was established to account for the employees' 125 plan.
                                                                                                            Schedule H-1
ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
JUNE 30, 2009


                                    General
                                   Insurance      Workman's             Health          Cafeteria
                                   Deductible    Compensation         Insurance           Plan
                                     Fund           Fund                Fund             Fund               Total
Assets:
 Cash and cash equivalents     $       297,457   $          -     $     1,063,435   $               -   $   1,360,892
 Accounts receivable                         -        258,950                   -                   -         258,950
    Total current assets               297,457        258,950           1,063,435                   -       1,619,842

Liabilities:
Current liabilities:
 liabilities                             6,741        364,402            620,591                 -            991,734
 Due to General Fund                         -         33,698                  -            15,499             49,197
   Total current liabilities             6,741        398,100            620,591            15,499          1,040,931

Net Assets:
 Unrestricted net assets               290,716        (139,150)          442,844            (15,499)          578,911

    Total net assets           $       290,716   $    (139,150) $        442,844    $       (15,499) $        578,911




                                                     116
                                                                                                                       Schedule H-2
ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2009


                                            General
                                           Insurance       Workman's             Health            Cafeteria
                                           Deductible     Compensation         Insurance             Plan
                                             Fund            Fund                Fund               Fund               Total
Operating Revenues:
 Charges for services                  $             -    $    537,655     $     6,580,759     $      251,854      $   7,370,268
 Other operating revenue                        65,026          51,578                   -                  -            116,604
  Total operating revenues                      65,026         589,233           6,580,759            251,854          7,486,872

Operating Expenses:
 Insurance claims and expenses                  94,754         278,859           6,500,766            254,165          7,128,544

Operating income (loss)                        (29,728)        310,374             79,993               (2,311)         358,328

Non-operating Revenue (Expense):
 Investment earnings                             6,110              632            27,565                      -         34,307

Income (loss) before transfers                 (23,618)        311,006            107,558               (2,311)         392,635

Transfers in                                    40,000                -                    -                   -         40,000

Change in net assets                            16,382         311,006            107,558               (2,311)         432,635

Total net assets, beginning - July 1           274,334         (450,156)          335,286              (13,188)         146,276

Total net assets, ending - June 30     $       290,716    $    (139,150) $        442,844      $       (15,499) $       578,911




                                                              117
                                                                                                                                     Schedule H-3

ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2009


                                                           General
                                                          Insurance       Workman's            Health            Cafeteria
                                                          Deductible     Compensation        Insurance             Plan
                                                            Fund            Fund               Fund               Fund                 Total
Operating Activities:
Cash received from user departments                   $             - $       588,749 $        6,580,759 $          251,854 $          7,421,362
Other operating revenues                                       65,026          51,578                  -                  -              116,604
Cash paid to suppliers for goods and services                 (88,013)       (551,969)        (6,790,195)          (254,165)          (7,684,342)
Net cash provided by (used in) operating activities           (22,987)         88,358           (209,436)             (2,311)           (146,376)

Non-capital Financing Activities:
Transfers in                                                   40,000               -                    -                -               40,000
Advance to/from other funds                                         -         (88,990)                   -            2,311              (86,679)
Net cash provided (used) by non-capital
 financing activities                                          40,000         (88,990)                   -            2,311              (46,679)

Investing Activities:
Interest on investments                                         6,110            632             27,565                      -           34,307

Net increase (decrease) in cash and cash
cash equivalents/investments                                   23,123               -           (181,871)                    -          (158,748)

Cash and Cash Equivalents/Investments:
Beginning of year - July 1                                    274,334               -          1,245,306                     -         1,519,640

End of year - June 30                                 $       297,457    $          -    $     1,063,435     $               -   $     1,360,892

Reconciliation of Operating Income (Loss)
to Net Cash Provided by (Used in)
Operating Activities:
 Operating income (loss)                              $       (29,728) $      310,374    $       79,993      $        (2,311) $         358,328
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
 Change in assets and liabilities:
   (Increase) decrease in accounts receivable                       -          51,094                  -                     -            51,094
   Increase (decrease) in accounts payable                      6,741        (273,110)          (289,429)                    -          (555,798)
Total adjustments                                               6,741        (222,016)          (289,429)                    -          (504,704)

Net cash provided by (used in) operating activities   $       (22,987) $       88,358    $      (209,436) $           (2,311) $         (146,376)




                                                                  118
                                                                                                     Schedule H-4
ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUND - GENERAL INSURANCE DEDUCTIBLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - FINANCIAL PLAN AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                      2009                            2008
                                                 Financial                         Variance
                                                   Plan              Actual       Over/Under          Actual
Operating Revenues:
 Other operating revenue                     $       97,500      $      65,026    $   (32,474) $         17,509

Operating Expenses:
 Insurance claims and expenses                      100,000             94,754          5,246            49,280

Operating income (loss)                               (2,500)          (29,728)       (27,228)          (31,771)

Non-operating Revenues:
 Investment earnings                                   2,500             6,110          3,610            10,867

Revenues over (under) expenses                               -         (23,618)       (23,618)          (20,904)

Other Financing Sources (Uses):
 Transfers in - General Fund                                 -          40,000         40,000            40,000


Revenue and other financing sources (uses)
over (under) expenses                        $               -   $      16,382    $    16,382    $       19,096

Reconciliation of Modified Accrual Basis
to Full Accrual Basis:
 Total revenues                                                  $      71,136                   $       28,376
 Total expenses                                                         94,754                           49,280
 Other financing sources (use)                                          40,000                           40,000

Change in net assets                                             $      16,382                   $       19,096




                                                    119
                                                                                                        Schedule H-5
ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUND - WORKMAN'S COMPENSATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - FINANCIAL PLAN AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                      2009                               2008
                                                 Financial                           Variance
                                                   Plan              Actual         Over/Under           Actual

Operating Revenues:
 Charges for services                        $      545,000      $     537,655      $    (7,345) $         536,570
 Other operating revenues                                 -             51,578           51,578             72,783
 Total operating revenues                           545,000            589,233           44,233            609,353

Operating Expenses:
 Insurance claims and expenses                      560,000            278,859          281,141            592,876

Operating income                                     (15,000)          310,374          (236,908)           16,477

Non-operating Revenues:
 Investment earnings                                 15,000                   632        (14,368)            3,322

Revenue and other financing sources (uses)
over (under) expenses                        $               -   $     311,006      $   311,006     $       19,799

Reconciliation of Modified Accrual Basis
to Full Accrual Basis:
 Total revenues                                                  $     589,865                      $      612,675
 Total expenses                                                        278,859                             592,876

Change in net assets                                             $     311,006                      $       19,799




                                                    120
                                                                                                      Schedule H-6
ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUND - HEALTH INSURANCE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - FINANCIAL PLAN AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                      2009                             2008
                                                 Financial                         Variance
                                                   Plan              Actual       Over/Under           Actual
Operating Revenues:
 Charges for services                        $     6,444,300     $   6,580,759    $   136,459     $    5,830,194

Operating Expenses:
 Insurance claims and expenses                     6,994,400         6,500,766        493,634          6,418,108

Operating income                                    (550,100)           79,993        630,093           (587,914)

Non-operating Revenues:
 Investment earnings                                 50,000             27,565         (22,435)           58,158

Revenues over (under) expenses                      (500,100)          107,558        607,658           (529,756)

Other Financing Sources (Uses):
 Fund balance appropriated                          500,100                   -       (500,100)                 -

Revenue and other financing sources (uses)
over (under) expenses                        $               -   $     107,558    $   107,558     $     (529,756)

Reconciliation of Modified Accrual Basis
to Full Accrual Basis:
 Total revenues                                                  $   6,608,324                    $    5,888,352
 Total expenses                                                      6,500,766                         6,418,108

Change in net assets                                             $     107,558                    $     (529,756)




                                                    121
                                                                                                   Schedule H-7
ROCKINGHAM COUNTY, NORTH CAROLINA

INTERNAL SERVICE FUND - CAFETERIA PLAN
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - FINANCIAL PLAN AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2008


                                                                    2009                            2008
                                               Financial                         Variance
                                                 Plan              Actual       Over/Under         Actual
Operating Revenues:
 Charges for services                      $      252,200      $     251,854    $      (346) $        225,785

Operating Expenses:
 Insurance claims and expenses                    252,200            254,165         (1,965)          230,197

Operating income                           $               -   $      (2,311) $      (2,311) $         (4,412)

Reconciliation of Modified Accrual Basis
to Full Accrual Basis:
 Total revenues                                                $     251,854                   $      225,785
 Total expenses                                                      254,165                          230,197

Change in net assets                                           $      (2,311)                  $       (4,412)




                                                  122
                  AGENCY FUNDS - FIDUCIARY FUNDS


            Agency Funds are used to account for assets held by the County as an agent for
              individuals, private organizations, other governments, and/or other funds.



Fines & Forfeitures - This fund accounts for monies collected by the Courts that are designated and
remitted to the County School System.

Social Service Fund - This fund accounts for monies held by the Social Services Department for the
benefit of certain individuals in the County.

3% Interest Payable to State Fund - This fund accounts for the collection of interest on delinquent
motor vehicle taxes that is required to be remitted to the State.
                                                                                                Schedule I-1
ROCKINGHAM COUNTY, NORTH CAROLINA

AGENCY FUNDS
COMBINING STATEMENT OF FIDUCIARY
ASSETS AND LIABILITIES
JUNE 30, 2009


                                               Fines and          Social      3% Interest
                                               Forfeitures       Services      Payable to
                                                 Fund             Fund           State          Totals
Assets:
Cash and cash equivalents                  $           375   $       40,862   $     4,680   $      45,917


Total assets                               $           375   $       40,862   $     4,680   $      45,917

Liabilities:
Accounts payable and accrued liabilities   $           375   $       40,862   $     4,680   $      45,917


Total liabilities                          $           375   $       40,862   $     4,680   $      45,917




                                                     123
                                                                                                    Schedule I-2
ROCKINGHAM COUNTY, NORTH CAROLINA

AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY
ASSETS AND LIABILITIES
JUNE 30, 2009



                                               July 1, 2008          Additions    Retirements   June 30, 2009
Fines and Forfeitures:
Assets:
Cash and cash equivalents                  $               475   $      417,082   $   417,182   $          375
   Total assets                            $               475   $      417,082   $   417,182   $          375
Liabilities:
Accounts payable and accrued liabilities   $               475   $      417,082   $   417,182   $          375
   Total liabilities                       $               475   $      417,082   $   417,182   $          375

Social Services Fund:
Assets:
Cash and cash equivalents                  $         30,328      $      164,245   $   153,711   $       40,862
   Total assets                            $          30,328     $      164,245   $   153,711   $       40,862
Liabilities:
Accounts payable and accrued liabilities   $          30,328     $      164,245   $   153,711   $       40,862
   Total liabilities                       $          30,328     $      164,245   $   153,711   $       40,862


3% Interest Payable to State:
Assets:
Cash and cash equivalents                  $           3,922     $       82,033   $    81,275   $        4,680
   Total assets                            $           3,922     $       82,033   $    81,275   $        4,680
Liabilities:
Accounts payable and accrued liabilities   $           3,922     $       82,033   $    81,275   $        4,680
   Total liabilities                       $           3,922     $       82,033   $    81,275   $        4,680

Total All Agency Funds:
Assets:
Cash and cash equivalents                  $          34,725     $      663,360   $   652,168   $       45,917
   Total assets                            $          34,725     $      663,360   $   652,168   $       45,917
Liabilities:
Accounts payable and accrued liabilities   $          34,725     $      663,360   $   652,168   $       45,917
   Total liabilities                       $          34,725     $      663,360   $   652,168   $       45,917




                                                     124
SUPPLEMENTAL FINANCIAL DATA




This section contains additional information on the Cash and
       Investments, Taxes Receivable, and Tax Levy
                                                                                         Schedule J-1
                                                                                          Page 1 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

SCHEDULE OF CASH AND INVESTMENT BALANCES
JUNE 30, 2009


                                                     Carrying           Cost             Market
                                                      Value             Value            Value
Cash:
 On hand                                         $         5,885    $        5,885   $        5,885
 In demand deposits                                   20,731,474        20,731,474       20,731,474
 Certificates of deposit                              42,031,938        42,031,938       42,031,938
   Total cash                                         62,769,297        62,769,297       62,769,297

Investments:
 North Carolina Capital Management Trust              12,937,964        12,937,964       12,937,964

Total cash and investments                       $    75,707,261    $   75,707,261   $   75,707,261



                                                     By Fund        By Fund Type
Distribution by Funds:
  General Fund                                   $              -   $   15,986,381

  Special Revenue Funds:
   Capital Reserve Fund                                8,361,088
   Fire District Fund                                    310,264
   Tourism Development Fund                              115,780
   Emergency Telephone System Fund                       520,468
   CDBG Grant Fund                                        19,975
   Vera Holland Stoneville Library Fund                  277,041
      Total special revenue funds                                        9,604,616

  Capital Projects Funds:
   Courthouse Capital Projects                        32,567,785
   EOC and Tower Capital Projects                        599,801
   School Capital Projects                               187,438
   EMS Capital Projects                                  906,554
   Equestrian Center Capital Projects                     38,635
   Library Capital Projects                               21,075
      Total capital projects funds                                      34,321,288

   Debt Service Fund                                                            4




                                           125
                                                                                Schedule J-1
                                                                                 Page 2 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

SCHEDULE OF CASH AND INVESTMENT BALANCES
JUNE 30, 2009


                                                  By Fund      By Fund Type
 Enterprise Fund:
  Sewer Fund                                         150,811
  Landfill Fund                                   13,222,588
  Sewer and Water Capital Projects                   284,406
    Total enterprise funds                                         13,657,805

 Internal Service Funds:
  General Insurance Deductible Fund                  297,457
  Health Insurance Fund                            1,063,435
    Total internal service funds                                    1,360,892

 Trust and Agency Funds:
  Fines and Forfeitures                                  375
  Social Services Fund                                40,862
  3% Interest Payable to State                         4,680
  Library Memorials Fund                              99,737
  Pension Trust Separation Allowance Fund            630,621
    Total trust and agency funds                                     776,275

    Total cash and investments                                 $   75,707,261




                                            126
                                                                                       Schedule K-1
ROCKINGHAM COUNTY, NORTH CAROLINA

SCHEDULE OF AD VALOREM TAXES RECEIVABLE
FOR THE YEAR ENDED JUNE 30, 2009


                                    Uncollected                                      Uncollected
        Original                      Balance                       Collections       Balance
         Levy                       July 1, 2008     Additions      and Credits     June 30, 2009
         2009                   $               -   $ 42,850,874   $ 41,484,264    $    1,366,610
         2008                           1,560,922              -       1,037,929          522,993
         2007                             414,834              -         140,927          273,907
         2006                             260,718              -          61,808          198,910
         2005                             160,996              -          37,746          123,250
         2004                             127,085              -          21,899          105,186
         2003                             108,880              -          13,949           94,931
         2002                              92,918              -          11,163           81,755
         2001                              78,451              -           7,891           70,560
         2000                              66,768              -           5,201           61,567
         1999                              57,093              -          57,093                 -

          Total                 $       2,928,665   $ 42,850,874   $ 42,879,870         2,899,669

Plus: Uncollected 2008-2009 ad valorem taxes receivable
on annually registered vehicles, other                                                    282,932

Less: Allowance for uncollectible accounts                                             (1,170,000)

Ad valorem taxes receivable, net                                                   $    2,012,601

Reconciliation of Collections and Credits with Revenues:

Ad Valorem Taxes:
 General Fund                                                                      $   42,965,453


Reconciling Items:
 Interest collected                                                                      (510,053)
 Discounts allowed                                                                        158,906
 Taxes written off                                                                         57,093
 Other                                                                                    208,471
  Total reconciling items                                                                 (85,583)

Total collections and credits                                                      $   42,879,870




                                                     127
                                                                                                               Schedule L-1
ROCKINGHAM COUNTY, NORTH CAROLINA

ANALYSIS OF CURRENT TAX LEVY
FOR THE FISCAL YEAR ENDED JUNE 30, 2009


                                                                       County-Wide Total Levy
                                                                                           Property
                                                                                           Excluding
                                                                                           Registered          Registered
                                              Property                      Amount          Motor               Motor
                                              Valuation         Rate        of Levy         Vehicles            Vehicles
Original Levy:
 Property taxed at current year's rate      $ 5,750,128,914   0.00705    $ 40,647,842     $ 37,777,593     $     2,870,249
 Property taxed at prior year's rate            252,657,392   0.00705       1,792,471                -           1,792,471

   Total                                     6,002,786,306                  42,440,313      37,777,593           4,662,720

Discoveries:
 Current year's taxes                           13,601,190    0.00705         102,998            96,578              6,420
 Prior years' taxes and rollbacks                        -                    421,858           414,351              7,507
   Total                                        13,601,190                    524,856           510,929             13,927

Abatements                                     (11,469,831)                   (114,295)         (60,542)           (53,753)

Total property valuation                    $ 6,004,917,665

Net levy                                                                    42,850,874      38,227,980           4,622,894

Uncollected tax at June 30, 2008                                             1,366,610          864,562            502,048

Current year's taxes collected                                           $ 41,484,264     $ 37,363,418     $     4,120,846

Percent of current year's taxes collected                                      96.81%            97.74%             89.14%




                                                          128
                                                   STATISTICAL SECTION
                                                         (Unaudited)


                                                                                                      Table
Financial Trends:
These schedules contain trend information to help the reader understand how the County's financial
performance and well being have changed over time.
  Net Assets by Component                                                                              1
  Changes in Net Assets                                                                                2
  Governmental Activities Tax Revenues by Source                                                       3
  Fund Balances of Governmental Funds                                                                  4
  Changes in Fund Balances of Governmental Funds                                                       5
  General Governmental Tax Revenues by Source                                                          6

Revenue Capacity:
These schedules contain information to help the reader assess the County's revenues.
  Assessed Value and Estimated Actual Value of Taxable Property                                         7
  Property Tax Rates - Direct and Overlapping                                                           8
  Principal Property Taxpayers                                                                          9
  Property Tax Levies and Collections                                                                  10

Debt Capacity:
Since the Board of Education has no tax levying or debt issuing authority, the County provides
significant funding to the school system. Fiscal data from the County has been included to
help the reader understand the school system.
   Ratio of Outstanding Debt by Type                                                                   11
   Ratio of General Bonded Debt Outstanding                                                            12
   Direct and Overlapping Governmental Activities Debt                                                 13
   Legal Debt Margin                                                                                   14
   Pledged Revenue Coverage                                                                            15

Demographic and Economic Information:
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the County's financial activities take place. Information on the County is
also included.
   Demographic and Economic Statistics                                                                 16
   Principal Employers                                                                                 17
   Full time Equivalent County Government Employees by Function                                        18

Operating Information:
These schedules contain service and capital asset data to help the reader understand how the
information in the Board's financial report relates to the services the Board provides and the
activities it performs.
   Operating Indicators by Function                                                                    19
   Capital Asset Statistics by Function                                                                20
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                                                                                     Table 1

NET ASSETS BY COMPONENT
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)

                                                                                                              Fiscal Year
                                                         2003             2004               2005                2006              2007            2008             2009
Governmental activities
  Invested in capital assets, net of related debt    $    9,208,693   $    9,687,064 $       10,029,817 $        11,277,227 $      13,583,747 $    15,792,749 $     15,437,075
   Restricted                                                     -          148,695            128,113              95,904         75,423.00       30,405.00           74,951
   Unrestricted                                             723,076       (2,890,572)        (5,888,341)        (10,251,157)      (10,937,755)     (7,484,501)      (8,746,194)
Total Governmental activities net assets             $    9,931,769   $    6,945,187   $      4,269,589   $       1,121,974   $    2,721,415   $    8,338,653   $    6,765,832

Business-type activities
   Invested in capital assets, net of related debt   $    7,109,081   $    7,840,874   $      9,160,397   $      10,497,137   $   12,873,972   $   13,656,199   $   13,254,366
   Restricted                                                     -                -                  -                   -                -                -                -
   Unrestricted                                           2,403,569        3,362,681          3,307,684           3,990,523        3,569,541        5,056,101        6,281,556
Total business-type activities net assets            $    9,512,650   $   11,203,555   $     12,468,081   $      14,487,660   $   16,443,513   $   18,712,300   $   19,535,922

Primary government
   Invested in capital assets, net of related debt   $   16,317,774   $   17,527,848   $     19,190,214 $        21,774,364 $     26,457,719 $     29,448,948 $     28,691,441
   Restricted                                                     -          148,695            128,113              95,904           75,423           30,405           74,951
   Unrestricted                                           3,126,645          472,109         (2,580,657)         (6,260,634)      (7,368,214)      (2,428,400)      (2,464,638)
Total primary government net assets                  $   19,444,419   $   18,148,652   $     16,737,670   $      15,609,634   $   19,164,928   $   27,050,953   $   26,301,754



Information presented from the first year of GASB statement 34 implementation




                                                                                       129
                                                                                                                                            Table 2
                                                                                                                                         Page 1 of 2
ROCKINGHAM COUNTY, NORTH CAROLINA

CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
                                                                                             Fiscal Year
 Expenses                                        2003             2004           2005           2006           2007           2008            2009
Governmental activities:
   General government                        $ 8,337,944      $ 11,743,056   $ 12,300,044   $ 13,444,335   $ 13,805,126   $ 15,279,334   $ 14,807,087
   Public safety                                15,115,082      14,536,083     15,464,930     15,640,875     15,765,266     17,313,963     18,619,536
   Economic development                          3,014,415       2,554,993      3,612,339      3,881,044      3,119,128      2,921,881      3,627,254
   Human Services                               34,736,199      32,701,016     34,683,696     30,980,817     30,360,277     29,040,198     29,461,487
   Culture and recreational                      2,113,690       1,930,885      1,819,671      1,936,416      1,669,843      1,756,447      1,639,147
   Education                                    36,268,423      23,061,683     23,225,875     25,029,601     19,018,057     19,121,721     19,577,036
   Airport
   Debt service - interest and fees              2,240,606       1,655,748      1,816,826      1,908,791      1,851,329      1,745,809        3,801,120
Total governmental activities expenses         101,826,359      88,183,464     92,923,381     92,821,879     85,589,026     87,179,353       91,532,667
Business-type activities:
   Water                                           476,732         509,193        475,061        565,849        702,947        514,608        692,942
   Sewer                                           377,704         418,435        409,535        458,503        516,612        582,885        617,475
   Landfill                                      2,273,818       2,856,210      2,869,352      2,376,763      2,767,962      2,328,560      3,235,812
Total business-type activities                   3,128,254       3,783,838      3,753,948      3,401,115      3,987,521      3,426,053      4,546,229
Total primary governmental expenses          $ 104,954,613    $ 91,967,302   $ 96,677,329   $ 96,222,994   $ 89,576,547   $ 90,605,406   $ 96,078,896
Program Revenues
Governmental activities:
   Charges for services:
      General government                         1,140,505       1,412,188      1,054,476      1,092,349        822,022        839,931        730,046
      Public Safety                              2,546,096       3,701,387      2,810,707      3,649,065      3,103,464      3,756,507      3,373,523
      Human Services                             7,453,611       6,962,487      7,157,710        715,710      4,210,025      4,483,781      3,015,871
      Other activities                              66,975         216,993        101,593         91,978        132,931        134,519        151,694
   Operating grants and contributions           18,558,788      19,022,295     22,604,176     21,998,683     16,741,214     20,329,258     20,222,312
   Capital grants and contributions                116,300         451,129        781,743      1,466,440      1,037,237        152,020      1,394,136
Total governmental activities program reven $ 29,882,275      $ 31,766,479   $ 34,510,405   $ 29,014,225   $ 26,046,893   $ 29,696,016   $ 28,887,582
Business-type activities:
   Charges for services:
      Water                                        319,381         278,247        225,347        143,832        225,007        288,382          280,933
      Sewer                                        314,086         348,690        383,183        389,170        496,182        473,843          509,990
      Landfill                                   3,141,486       3,130,566      3,607,452      3,471,902      3,529,262      3,509,849        3,362,542
   Operating grants and contributions              160,007          19,372         54,010          8,767         12,554          5,334           18,098
   Capital grants and contributions                       -        221,640        831,323         77,387         92,303              -           50,525
Total business-type activities program reven     3,934,960       3,998,515      5,101,315      4,091,058      4,355,308      4,277,408        4,222,088
Total primary governmental program revenu       33,817,235      35,764,994     39,611,720     33,105,283     30,402,201     33,973,424       33,109,670

Net (expense)/revenue
Governmental activities                       (71,944,084)   (56,416,985)   (58,412,977)   (59,954,777)   (59,542,134)   (57,483,336)   (62,795,860)
Business-type activities                          806,706        214,677      1,347,367        689,944        367,787        851,355       (173,366)
Total primary governmental net expense      $ (71,137,378) $ (56,202,308) $ (57,065,610) $ (59,264,833) $ (59,174,347) $ (56,631,981) $ (62,969,226)




                                                                             130
                                                                                                                                                   Table 2
                                                                                                                                                Page 2 of 2

Information presented from the first year of GASB statement 34 implementation

                                                                                                  Fiscal Year
                                                2003             2004             2005       2007    2006 2008         2009
General Revenues and Other Changes in
  Net Assets
Governmental activities:
  Taxes
      Property taxes                  $ 38,483,282 $ 39,392,539 $ 38,804,102 $ 39,997,174 $ 43,126,131 $ 48,879,221 $ 48,984,504
      Sales taxes                       10,765,275   13,166,970   14,660,103   15,284,598   16,618,810   13,022,209   10,898,882
      Occupancy taxes                            -      161,000      178,988      190,259      288,012      293,030      217,915
      Unrestricted intergovernmental       221,686    1,087,028      880,178      636,441      414,410      390,799      402,415
   Investment earnings                     886,089      937,447      941,148    1,498,690    1,739,212    1,438,313    1,423,507
   Miscellaneous                           863,379       62,057            -            -            -            -            -
   Transfers                              (500,763)  (1,376,638)     272,860     (800,000)  (1,045,000)    (923,000)    (854,959)
Total governmental activities         $ 50,718,948 $ 53,430,403 $ 55,737,379 $ 56,807,162 $ 61,141,575 $ 63,100,572 $ 61,072,264
Business-type activities:
  Investment earnings                      115,099       99,499      190,109      529,635      543,066      494,432      292,804
   Transfers                               500,763    1,376,638     (272,860)     800,000    1,045,000      923,000      854,959
Total business-type activities             615,862    1,476,137      (82,751)   1,329,635    1,588,066    1,417,432    1,147,763
Total primary government              $ 51,334,810 $ 54,906,540 $ 55,654,628 $ 58,136,797 $ 62,729,641 $ 64,518,004 $ 62,220,027

Change in Net Assets
Governmental activities                      (21,225,136)       (2,986,582)       (2,675,598)       (3,147,615)     1,599,441       5,617,236       (1,572,821)
Business-type activities                       1,422,568         1,690,814         1,264,616         2,019,579      1,955,853       2,268,787          823,622
Total primary government                   $ (19,802,568) $     (1,295,768) $     (1,410,982) $     (1,128,036) $   3,555,294   $   7,886,023   $     (749,199)




Information presented from the first year of GASB statement 34 implementation




                                                                                131
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                   Table 3

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)



                                                    Rental
   Fiscal        Property           Sales         Vehicle Gross      Occupancy      Alcoholic
   Year            Tax              Tax           Receipt Tax           Tax       Beverage Tax    Total
   2003         38,620,766        10,734,224            16,541          158,469        221,686   49,751,686
   2004         39,375,034        13,166,970            17,505          161,000        227,467   52,947,976
   2005         38,787,369        14,660,103            16,733          178,988        234,468   53,877,661
   2006         39,975,306        15,284,598            21,868          190,259        232,854   55,704,885
   2007         43,122,377        15,264,288            23,133          187,436        237,264   58,834,498
   2008         48,629,727        13,315,239            25,016          170,877        242,064   62,382,923
   2009         49,123,574        11,116,797            19,376          163,309        235,283   60,658,339




Information presented from the first year of GASB statement 34 implementation




                                                         132
ROCKINGHAM COUNTY, NORTH CAROLINA

FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)




                                          2000            2001            2002           2003            2004

General Fund
   Reserved                           $  8,866,304    $ 10,433,935    $  8,232,176   $  8,615,228    $  3,362,310
  Unreserved                            12,865,650      11,533,320      14,178,388     12,607,383      20,240,928
Total General Fund                    $ 21,731,954    $ 21,967,255    $ 22,410,564   $ 21,222,611    $ 23,603,238

All other governmental funds
   Reserved                           $           -   $           -   $          -   $   7,822,061   $     62,057
   Unreserved, reported in:
      School Capital projects funds               -               -              -               -       4,186,058
      Special revenue                     1,563,335       3,170,307      5,741,785       5,431,289       1,857,284
      Debt Service                                -               -              -          30,939               -
      Capital projects                    1,068,301         438,939     27,067,359         254,733          46,814
Total all other governmental funds    $   2,631,636   $   3,609,246   $ 32,809,144   $   5,716,961   $   6,152,213




                                                          133
                                                                        Table 4




                    Fiscal Year
    2005             2006             2007           2008             2009



$  4,034,434    $  4,142,959      $  4,908,496   $    3,115,462   $    3,234,331
  20,596,316      17,557,551        13,580,907       13,940,358       13,702,673
$ 24,630,750    $ 21,700,510      $ 18,489,403   $   17,055,820   $   16,937,004



$    154,702    $            -    $          -   $    4,543,174   $     560,004

    6,857,533                -        3,356,784               -                -
    1,857,284        2,984,405        1,818,297       4,925,881 $      9,543,729
            -                -                -           1,991                4
       46,814        1,434,992         (625,037)     (3,762,493)      31,094,372
$   8,916,333   $    4,419,397    $   4,550,044 $     5,708,553 $     41,198,109




                                                       134
ROCKINGHAM COUNTY, NORTH CAROLINA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)


Revenues                                 2000               2001               2002              2003

Taxes                               $ 31,550,848      $ 32,961,001        $ 35,599,015      $ 36,357,327
Other Taxes and Licenses              10,649,658        10,828,607          10,617,020        10,511,657
Unrestricted Intergovernmental         3,350,608         3,357,120           2,101,545           221,686
Restricted Intergovernmental          16,549,404        17,953,589          17,831,366        17,545,643
Permits and Fees                         923,892           901,271           1,005,703         1,236,382
Sales and Services                     5,784,732         7,250,189           8,416,406         9,610,501
Investment Earnings                    1,363,158         1,402,060             857,354           520,078
Miscellaneous                            825,856         1,676,461             358,509           978,198
Total revenues                        70,998,156        76,330,298          76,786,918        76,981,472

Expenditures
General government                       6,199,919       7,061,385             6,104,566         6,476,406
Public safety                           11,810,442      11,860,250            12,598,898        12,540,968
Economic and physical development        2,072,941       2,217,299             2,078,823         2,397,037
Human Services                          30,612,906      32,679,025            33,770,750        34,618,174
Culture and recreation                   2,018,213       2,124,093             2,097,471         1,872,602
 Capital Outlay                                  -               -                     -                 -
Debt Service
 Principal                                 452,091         452,193               730,854               -
 Interest                                  102,609          83,392               240,679               -
Education                               16,116,315      16,767,170            16,204,393        16,653,988
Total expenditures                      69,385,436      73,244,807            73,826,434        74,559,175

Excess of revenues
  over (under) expenditures              1,612,720          3,085,491          2,960,484         2,422,297

Other financing sources (uses)
Long-term debt issued                            -             384,009                -                  -
Premium on long-term debt issued                 -                   -                -                  -
Transfers in                               344,685              39,303          632,825                  -
Transfers out                           (2,785,863)         (3,393,070)   (3,150,000.00)        (3,610,247)
Total other financing
   sources (uses)                       (2,441,178)         (2,969,758)       (2,517,175)       (3,610,247)

Net change in fund balances         $     (828,458) $         115,733     $     443,309     $   (1,187,950)


Debt service as a percentage of
   noncapital expenditures                   4.89%               5.64%             4.46%                -




                                                      135
                                                                                                    Table 5




            Fiscal Year
     2004                 2005             2006             2007             2008                 2009

$ 36,736,105      $ 38,859,001        $ 39,849,728      $ 43,122,377     $   48,654,743     $    49,142,950
  12,988,335        14,839,091          15,474,857        16,906,822         13,315,239          11,116,797
   1,087,028           880,178             636,441           414,410            390,799             402,415
  17,973,592        22,101,848          21,641,698        16,025,125         19,056,243          19,829,979
   1,323,739         1,357,050           1,455,063           881,952            999,306             845,027
   9,924,271         9,887,961           7,275,274         7,200,442          6,140,755           7,711,066
     238,454           925,614           1,439,712         1,645,488          1,365,966           1,389,200
     787,661         1,135,890           1,559,107         2,030,899          1,495,226           1,820,691
  81,059,185        89,986,633          89,331,880        88,227,515         91,418,277          92,258,125


     6,928,619         7,294,335           8,807,074       9,364,569          9,590,792          25,023,130
    13,308,262        17,152,074          17,993,389      18,701,065         20,936,691          22,033,345
     1,553,595         3,968,629           4,086,157       3,221,546          3,057,487           3,813,074
    34,929,114        37,276,376          33,673,996      33,553,399         32,129,286          30,816,888
     1,755,207         1,936,491           3,541,397       2,061,834          2,003,079           1,829,481
             -         6,339,662           6,569,675         711,043            101,369              39,958

             -         2,149,185           2,187,349       2,360,632          2,341,653           2,412,311
             -         1,831,784           1,904,666       1,865,682          1,756,486           3,241,762
    16,980,942        17,209,912          18,489,189      18,373,205         19,073,508          19,537,078
    75,455,739        95,158,448          97,252,892      90,212,975         90,990,351         108,747,027


     5,603,446        (5,171,815)         (7,921,012)      (1,985,460)         427,926          (16,488,902)


             -         8,489,859           1,293,836                -           260,000          52,135,000
             -                 -                   -                -                 -             619,601
       170,815         7,475,777           7,682,601       10,033,533         8,713,386           9,818,558
    (3,393,637)       (8,202,917)         (8,482,601)     (11,128,533)       (9,676,386)        (10,713,517)

    (3,222,822)           7,762,719         493,836        (1,095,000)         (703,000)         51,859,642

$    2,380,624    $       2,590,904   $   (7,427,176) $    (3,080,460) $       (275,074) $       35,370,740




             -                4.48%            4.51%            4.80%               4.72%             6.36%




                                                             136
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                 Table 6

GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)


                                                         Rental
   Fiscal        Property           Sales              Vehicle Gross    Alcoholic Beverage
   Year            Tax              Tax                Receipt Tax             Tax             Total
   1999      $     29,509,667   $   10,191,760    $                 -    $         213,067 $    39,914,494
   2000            33,438,204       10,487,748                      -              220,045      44,145,997
   2001            34,784,259       10,638,305                      -              223,460      45,646,024
   2002            37,512,635       10,427,983                 12,662                    -      47,953,280
   2003            37,508,756       10,734,224                 16,541              221,686      48,481,207
   2004            37,507,792       13,166,970                 17,505              227,467      50,919,734
   2005            37,508,564       14,660,103                 16,733              234,468      52,419,868
   2006            37,503,429       15,284,598                 21,868              232,854      53,042,749
   2007            40,317,723       15,920,640                 23,133              237,264      56,498,760
   2008            42,145,614       12,380,813                 25,016              242,064      54,793,507
   2009            42,965,453       10,447,581                 19,376              235,283      53,667,693




                                                 137
ROCKINGHAM COUNTY, NORTH CAROLINA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)


   Year                    Real Property                       Personal Property                Less:
   Ended           Residential          Commercial            Motor                          Tax Exempt
December 31         Property             Property            Vehicles        Other          Real Property

    1999       $        2,526,956   $        674,156   $        585,794   $ 1,137,181   $          (160,743)
    2000                2,605,996            677,273            623,947     1,239,965              (159,310)
    2001                2,686,046            696,236            632,031     1,291,120              (154,967)
    2002                2,760,205            699,843            650,997     1,292,355              (160,400)
    2003                3,371,479            728,345            657,715     1,145,374              (220,343)
    2004                3,433,557            734,040            657,853     1,105,213              (221,950)
    2005                3,500,993            755,138            673,527     1,070,420              (218,974)
    2006                3,578,985            800,067            693,292     1,071,046              (221,218)
    2007                3,663,326            796,671            689,562     1,032,744              (218,419)
    2008                3,735,764            812,610            674,915     1,025,907              (224,058)


Source: Rockingham County Tax Department




                                                       138
                                                       Table 7




                     Total         Estimated       Assessed
    Total Taxable    Direct         Actual        Value as a
      Assessed        Tax           Taxable      Percentage of
       Value         Rate            Value       Actual Value

$        4,763,344      6.60   $     4,763,344     100.00%
         4,987,871      6.60         4,987,871     100.00%
         5,150,466      6.90         5,150,466     100.00%
         5,243,000      6.90         5,243,000     100.00%
         5,682,570      6.35         5,682,570     100.00%
         5,708,713      6.35         5,708,713     100.00%
         5,781,104      6.35         5,781,105     100.00%
         5,922,172      6.85         5,922,172     100.00%
         5,963,884      7.05         5,963,884     100.00%
         6,025,138      7.05         6,025,138     100.00%




                                                       139
ROCKINGHAM COUNTY, NORTH CAROLINA

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN YEARS




Fiscal Year End June 30   2009        2008               2007           2006           2005           2004

Rockingham County            0.715       0.705                  .685           .635           .635           .635
City of Reidsville            0.73        0.73                    .67            .67            .67            .67
City of Eden                  0.62        0.57                    .57            .57            .57            .57
Town of Madison               0.73        0.73                    .73            .73            .73            .68
Town of Mayodan               0.58        0.53                    .53            .53            .53            .50
Town of Stoneville            0.67        0.67                    .67            .67            .67            .67
Fire Districts:
 Wentworth                   0.095           .10                .10            .10            .10            .10
 Stokesdale                    0.08          .08                .08            .08            .08            .08
 Bethany                       0.08          .08                .08            .08            .08            .08
 Northwest                   0.115         .115               .115           .115           .115           .115
 Huntsville                  0.055         .055               .055           .055           .055           .055
 Oregon Hill                   0.05          .05                .05            .05            .05            .05
 Shiloh                         0.1          .10                .10            .10            .10            .10
 Monroeton                      0.1          .10                .10            .10            .10            .10
 Williamsburg               0.0875       .0875              .0875          .0875          .0875          .0875
 Summerfield                 0.088         .088               .088           .088           .088           .088
 Yanceyville                   0.07          .07                .07            .05            .05            .05
 Stoneyview                  0.105         .105               .105           .105           .105           .105
 Casville                    0.035         .035               .035           .035           .035           .035
 Jacobs Creek                  0.07          .07                .07            .07            .07            .07
 Madison-Mayodan             0.105         .105               .105           .105           .105           .105
 Stokes-Rockingham             0.06          .06                .06            .06            .06            .06
 Ruffin                         0.1          .10                .10            .10            .10            .12
 Draper Rural                0.035       0.035                0.03           0.03               -              -
 Leaksville Rural              0.08        0.08               0.08           0.08               -              -
 Spray-Draper                0.035       0.035                0.03           0.03               -              -
 Spray-Leaksville              0.08        0.08               0.08           0.08               -              -




                                                   140
                                          Table 8




2003         2002           2001          2000

       .69           .69           0.66           .66
       .68           .63           0.63           .63
       .57           .57           0.57           .57
       .64           .64           0.61           .59
       .50           .50            .50           .50
       .67           .67           0.67           .68

       .10            .07         .07              .07
       .08            .08         .08              .08
       .08            .08         .08              .08
     .115           .115       0.115             .115
     .050             .05       0.05               .05
       .05            .05       0.05               .05
       .10            .08       0.08               .08
       .10            .10         .10              .10
   .0875            .075       0.075             .075
     .088           .088       0.088               .10
       .05            .05       0.05               .05
     .105           .105       0.105             .105
     .035           .035       0.035             .035
       .10            .10         0.1              .10
     .105           .105       0.105             .105
       .06            .06       0.06               .06
       .12            .12         .12              .12
         -              -           -                -
         -              -           -                -
         -              -           -                -
         -              -           -                -




                                                         141
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                                 Table 9

PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(AMOUNTS EXPRESSED IN THOUSANDS)

                                                     2009                                        2000
                                                              Percentage of                                 Percentage of
                                      Taxable                 Total Taxable        Taxable                  Total Taxable
                                      Assessed                  Assessed           Assessed                   Assessed
Taxpayer                               Value         Rank         Value             Value        Rank           Value
Duke Energy Corporation           $       267,503        1             4.45%   $       169,591       2               3.40%
Miller Brewing                            120,144        2             2.02%           148,425       3               3.00%
Unifi Manufacturing                        60,905        3             1.01%           235,669       1               4.70%
Frontier Spinning                          46,221        4             0.77%
Commonwealth Brands                        38,727        5             0.64%
Walmart                                    35,837        6             0.60%
HanesBrands                                29,395                      0.46%
Ball Metal Beverage Corporation            27,797        7             0.44%            27,606          8           0.60%
Pine Hall Brick                            26,178        8             0.42%            31,100          7           0.60%
Transcontinental Pipeline                  24,361       10             0.41%
Mayo Yarns                                                                              79,849       4              1.60%
Eden Yarns                                                                              32,807       6              0.70%
BTR-Schlegel                                                                            26,905       9              0.50%
Central Telephone                                                                       26,315      10              0.50%
Rockingham Power                                                                        79,253       5              1.60%

  Totals                          $        677,068                   11.22%    $      857,520                      17.20%


Source: Rockingham County Tax Department




                                                             142
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                               Table 10

PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS

Fiscal Year     Total              Collected within the
   Ended      Levy for            Fiscal Year of the Levy          Collections in          Total Collections to Date
December 31  Fiscal Year         Amount       Percentage of Levy Subsequent Years         Amount       Percentage of Levy
   2000     $ 33,494,367     $    32,424,925              96.8% $        1,007,875    $    33,432,800                99.8%
   2001         34,819,231        33,648,731              96.6%          1,099,940         34,748,671                99.8%
   2002         37,577,078        36,412,389              96.9%          1,082,934         37,495,323                99.8%
   2003         38,406,524        37,221,840              96.9%          1,051,336         38,273,176                99.7%
   2004         36,358,195        35,338,271              97.2%             914,738        36,253,009                99.7%
   2005         36,461,282        35,464,438              97.3%             873,594        36,338,032                99.6%
   2006         37,430,833        36,213,191              96.7%          1,018,732         37,231,923                99.5%
   2007         40,460,777        39,113,403              96.7%          1,073,467         40,186,870                99.3%
   2008         42,228,158        40,667,236              96.3%          1,037,929         41,705,165                98.7%
   2009         42,850,874        41,484,264              96.8%                 -          41,484,264                96.8%




                                                              143
ROCKINGHAM COUNTY, NORTH CAROLINA

RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS


                      Governmental Activities                                          Business-type Activities
              General      Installment      Certificates            Installment        Special       Certificates
 Fiscal      Obligation     Purchase            of                   Purchase         Obligation         of             Revolving
 Year         Bonds         Contracts      Participation             Contracts         Bonds        Participation         Loan
 2000      $   1,425,000 $      637,882                  -        $    4,383,280    $   1,218,805                 -   $   3,529,634
 2001          1,205,000        665,660       33,000,000               3,779,563          416,320                 -       3,388,137
 2002            990,000      6,678,702       30,159,131               3,523,379                 -      2,840,869         3,199,907
 2003            780,000      6,064,278       29,076,123               3,255,586                 -      2,738,877         3,011,677
 2004            575,000      5,611,615       28,787,163               2,976,040                 -      1,822,837         2,823,447
 2005            375,000     13,315,277       27,634,316               2,683,445                 -      1,750,684         2,635,218
 2006            185,000     13,552,186       26,693,894               7,264,754                 -      1,691,107         2,446,988
 2007                   -    12,363,997       25,706,450               6,700,682                 -      1,628,550         2,258,758
 2008                   -    11,490,786       24,498,006               4,122,352                 -      1,551,994         2,070,528
 2009                   -    10,305,730       75,405,754               5,528,656                 -      1,474,246         1,882,298



Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements.




                                                                   144
                               Table 11




    Total       Percentage
  Primary       of Personal     Per
 Government       Income       Capita
$ 11,194,601          18.26% $      124
   42,454,680          4.90%        462
   47,391,988          4.44%        509
   44,926,541          4.76%        485
   42,596,102          5.24%        461
   48,393,940          4.86%        523
   51,833,929          4.75%        560
   48,658,437          5.22%        522
   43,733,666               *       473
   94,596,684               *          *




                                           145
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                       Table 12

RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER CAPITA AMOUNT)

                                                                                 Percentage of
                                                                                   Estimated
                         General      Less: Amounts                              Actual Taxable
       Fiscal           Obligation   Available in Debt                              Value of       Per
        Year             Bonds         Service Fund                Total            Property      Capita
       2000           $    1,425,000                - $             1,425,000           100.00% $      124
       2001                1,205,000                -               1,205,000           100.00%        462
       2002                  990,000                -                 990,000           100.00%        509
       2003                  780,000                -                 780,000           100.00%        485
       2004                  575,000                -                 575,000           100.00%        461
       2005                  375,000                -                 375,000           100.00%        523
       2006                  185,000                -                 185,000           100.00%        560
       2007                        -                -                       -                  -         -
       2008                        -                -                       -                  -         -
       2009                        -                -                       -                  -         -


Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements.




                                                             146
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                                                              Table 13

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2009
(AMOUNTS EXPRESSED IN THOUSANDS)


                                                                               Estimated             Share of
                                                            Debt               Percentage           Overlapping
                Governmental Unit                        Outstanding           Applicable              Debt

Debt repaid with property taxes: County              $                  -             100.00% $                    -

City of Reidsville                                                      -                                          -

City of Eden                                                            -                                          -

City of Madison                                                1,777,000                 3.7%                64,994

Total direct and overlapping debt                    $         1,777,000                        $            64,994


Sources: Assessed value data used to estimate applicable percentages provided by the County Tax Department. Debt
outstanding data provided by the cities.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Rockingham
County. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.




                                                                        147
ROCKINGHAM COUNTY, NORTH CAROLINA

LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)


                                                              2000               2001               2002               2003

Debt limit                                              $   381,764,774    $   398,560,320    $   412,750,523    $   419,466,808

Total net debt applicable to limit                            1,425,000          1,205,000            990,000         32,595,000

Legal debt margin                                       $   380,339,774    $   397,355,320    $   411,760,523    $   386,871,808

Total net debt applicable to the limit
as a percentage of debt limit                                      3.75%              3.03%              2.40%             8.43%




Note: Under state finance law, Rockingham County's outstanding general obligation debt should not exceed 8 percent
of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts
set aside for repaying general obligation bonds.




                                                                 148
                                                                                                  Table 14




    Fiscal Year
        2004             2005             2006               2007              2008              2009

$    454,181,933    $   456,922,186   $ 466,658,846     $   471,713,224   $   451,216,631   $   480,393,413

      31,185,000         29,760,000      28,570,001          27,335,000        26,050,000        75,405,754

$    422,996,933    $   427,232,186   $ 438,088,845     $   444,378,224   $   425,166,631   $   404,987,659


            7.37%             6.97%             6.52%             5.80%             5.77%            15.70%

Legal Debt Margin Calculation for Fiscal Year 2009

    Assessed value                                                                          $ 6,004,917,665
    Add back: exempt real property                                                                        -
    Total assessed value                                                                    $ 6,004,917,665

    Debt Limit (8% of total assessed value)                                                     480,393,413
    Debt applicable to limit:
      General obligation debt                                                                    75,405,754
      Less: Amount set aside for repayment of
          general obligation debt                                                                       -
    Legal debt margin                                                                       $   404,987,659




                                                               149
ROCKINGHAM COUNTY, NORTH CAROLINA

PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)

                                                           Sewer Revenue Bonds
                    Sewer              Less:                Net
   Fiscal          Charges            Operating           Available                 Debt Service
    Year          and Other           Expenses            Revenue             Principal           Interest       Coverage
   2000       $               -   $               -   $               -   $               -   $              -              -
   2001                       -                   -                   -                   -                  -              -
   2002                       -                   -                   -                   -                  -              -
   2003                       -                   -                   -                   -                  -              -
   2004                       -                   -                   -                   -                  -              -
   2005                       -                   -                   -                   -                  -              -
   2006                       -                   -                   -                   -                  -              -
   2007                       -                   -                   -                   -                  -              -
   2008                       -                   -                   -                   -                  -              -
   2009

* Rockingham County has no pledged revenue debt for 2009.




                                                                      150
                                                                Table 15




                          Special Assessment Bonds
      Special
    Assessment                  Debt Service
    Collections           Principal           Interest       Coverage
$                 -   $               -   $              -              -
                  -                   -                  -              -
                  -                   -                  -              -
                  -                   -                  -              -
                  -                   -                  -              -
                  -                   -                  -              -
                  -                   -                  -              -
                  -                   -                  -              -
                  -                   -                  -              -




                                                                   151
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                                                  Table 16

DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS


                                       Personal           Per                       Number of
                                       Income            Capita                      Building
     Fiscal                           (amounts          Personal   Average Annual Inspections                  School     Unemployment
     Year           Population      in thousands)       Income      Labor Force     Performed                Enrollment       Rate
     2000                89,998     $ 2,044,170       $     21,989 $       44,140 $        3,350           $       14,362          4.0%
     2001                91,928          2,078,515          22,148         44,510          3,727                   14,584          5.4%
     2002                93,025          2,102,285          22,930         45,905          3,678                   14,361          8.1%
     2003                92,589          2,138,682          23,309         45,501          3,283                   14,801          8.5%
     2004                92,413          2,232,762          24,203         46,394          3,313                   14,787          9.6%
     2005                92,517          2,351,308          25,418         46,327          3,404                   14,787          7.4%
     2006                92,614          2,461,225          26,706         46,747          3,237                   14,637          6.7%
     2007                93,063          2,539,928          27,550         45,396          3,168                   14,637          6.0%
     2008                92,421            *               *               44,838          3,642                   14,438          6.0%
     2009                92,282            *               *             *                 2,558                   14,361          7.7%


* Information not yet available
Note: Population is based on survey conducted during the last quarter of the calendar year. Personal income and average annual labor
force information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment is based on the
census at the start of the school year. Inspections performed by Rockingham County Inspections Department. It does not include the
municipalities inspections.




                                                                    152
ROCKINGHAM COUNTY, NORTH CAROLINA                                                                    Table 17

PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO

                                                  2009                                    2000
                                                          Percentage of                          Percentage of
                                                          Total County                           Total County
Employer                          Employees Rank          Employment         Employees Rank      Employment
Rockingham County School System        2,043    1                 4.50%           1,753    2             3.97%
Morehead Hospital                        840    2                 1.87%             788    4             1.78%
Wal-Mart Associates, Inc.                798    3                 1.78%
Unifi, Inc.                              795    4                 1.77%           2,399     1           5.43%
Rockingham County                        641    5                 1.43%             746     7           1.69%
MillerCoors                              600    6                 1.34%             750     6           1.70%
Frontier Spinning Mills                  567    7                 1.26%
Moses H. Cone Memorial Hospital          515    8                 1.15%
Karastan-Mohawk Industries               500    9                 1.11%            668      9           1.51%
Equity Group (Keystone Foods)            450   10                 1.00%
Burlington Industries                                                              775      5           1.76%
National Textiles                                                                  884      3           2.00%
Rockingham Community College                                                       691      8           1.57%
Fieldcrest-Cannon/Pillowtex                                                        650     10           1.47%

  Total                                  7,749                                   10,104




Source: Rockingham County Partnership for Economic and Tourism Development




                                                         153
ROCKINGHAM COUNTY, NORTH CAROLINA                                                     Table 18

FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS


                       2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
Function
General government       84     85     90     87     89     89     93     93     95        90

Public safety           207    211    217    213    214    224    227    228    231      226

Economic Development     16     16     11     11     11     11     11     11     11          9

Human Services          396    419    416    411    412    397    379    361    364      272

Cultural                 35     37     37     34     33     33     35     31     31        31

Landfill                 13     12     12     12     12     12     12     12     12        11
Water & Sewer             1      2      2      2      2      2      3      3      3         3


Total                   752    782    785    770    773    768    760    739    747      642




                                             154
      ROCKINGHAM COUNTY, NORTH CAROLINA                                                                                                                     Table 19

      OPERATING INDICATORS BY FUNCTION
      LAST TEN FISCAL YEARS


                                                                                                                          Fiscal Year
                                                      2000         2001         2002       2003      2004      2005      2006         2007        2008       2009
      Function
      Sheriff & Jail
         Physical arrests                                  n/a       2,670        2,628      2,906     2,669     2,773     3,640       2,322        2,312      2,632
         Average daily inmates                            128          130          142        125       130       149       155         157          169        207
      Fire
         Number of calls answered                         267          250          195       163       177       202        220        317          156        119
         Inspections                                    1,008          875          917       654       534       547        649        837          464        401
      Inspections & Planning
         Building permits issued                        3,350        3,727        3,678      3,283     3,313     3,404     3,237       3,168        3,642      2,558
         Environmental Health permits                   1,757        2,082        2,108      1,890     2,050     1,760     1,552       1,965        1,883      1,115
      Sanitation
         Refuse collected (tons/day)                      264          264          261       263       253       293        294        296          296        276
         Recyclables collected (tons/day)                   4            5            3         5         6         5          5          7            5          2




155
      Culture and recreation
         Books checked out                            554,425      513,241      538,005    501,089   467,097   505,248   495,436    499,910       501,903   501,903
         Library cards issued                              n/a          n/a          n/a     3,526     3,010     3,289     2,913      3,760         4,036     4,036
      Water
         Water mains breaks                                18           18           18         20        20        20         2           -            -        n/a
         Average daily consumption                    570,080      261,915      330,241    237,132   120,725   127,907    20,919      86,427       72,224        n/a
            (thousands of gallons)
      Wastewater
         Average daily sewage treatment                      -            -            -      494       428       390        381             68       73         n/a
            (thousands of gallons)


      Sources: Various government departments.
      Note: Indicators are not available for the general government function.
ROCKINGHAM COUNTY, NORTH CAROLINA

CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS



                                                  2000            2001            2002          2003          2004
Function
Public safety
  Sheriff:
      Detention Centers                                  2               2               2            2             2
      Vehicles                                          91              91              91           95           110
  EMS Ambulances                                   618,599         934,485         851,151      990,411       990,411
Landfill
  Inland mobile equipment                          934,485       1,386,783       1,461,783     1,159,987     1,555,985
Culture and recreation
  Libraries                                               5                5               5             5             5
Water
  Water mains (miles)                                  17.5            17.5            17.5         17.5          20.3
  Maximum daily capacity
      (thousands of gallons)                       500,000         500,000         500,000      800,000       800,000
Sewer
  Sanitary sewers (miles)                              12.6            14.8            27.4       237.4           27.4
  Maximum daily treatment capacity
      (thousands of gallons)                       218,000         218,000         418,000      418,000       418,000
Education
  Number of schools                                     26                25              25            25            25
  Number of teachers                                   912               908             914           922           936



Sources: Various county departments.
Note: No capital asset indicators are available for the general government function.




                                                                 156
                                                           Table 20




              Fiscal Year
 2005             2006       2007           2008           2009



       2                2           2               2              2
     110              116         116             116            116
 990,745        1,033,796    722,787       1,087,614      1,244,733

1,555,985       1,555,985   1,555,985      1,055,055      2,209,334

          5             5             5              5              5

     20.3            20.3           20.3           20.3           20.3

 800,000          800,000    800,000        800,000        628,000

     27.4            28.2           28.2           28.2           28.2

 418,000          418,000    449,440        501,903        540,000

         25            25            25             25             25
        944           952           952            952            952




                                                          157

				
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