NOTES TO FINANCIAL SUMMARIES

(1) BASIS OF ACCOUNTING:

(2)

The accounts of the City are maintained and the accompanying financial summaries have been prepared except as noted in the succeeding paragraph, from accounting records maintained on the modified accrual basis of accounting and reflect the City's use of budgetary accounting procedures. Accordingly, certain revenues, such as property taxes, are recognized only when received. Receivables, principally for uncollected property taxes, are recorded and included in the accompanying financial summaries, with offsetting reserves equal to the amount of such receivables. Certain legal commitments for encumbrances are fully reserved.

The accounts of the following funds are maintained on the modified accrual basis of accounting but the accompanying financial summaries for these funds have been prepared using the accrual basis of accounting.

Water and Sewer Operating Fund
Water and Sewer Debt Service Fund
Airport Operating Fund

Airport Debt Service Fund

Unappropriated fund balances of the following funds at June 30, 1974 are restricted for amounts representing employee's vested vacation pay which has been earned, but not paid at June 30, 1974, and are not recorded as accrued liabilities in the accompanying financial summaries;

General Fund

Airport Operating Fund
Water and Sewer Operating Fund

FUND BALANCE:

Fund

Unappropriated fund balances as determined in accordance with the General Statutes of North Carolina, differs from amounts reported as contributed capital and retained earnings, for the funds noted below, since utilization of the accrual basis of accounting results in balances which are not in accordance with such statutes.

Water and Sewer:

Airport:

428

(3)

RECLASSIFICATION AND OTHER CHANGES TO PRIOR YEAR FINANCIAL
SUMMARIES:

Financial summaries for the year ended June 30, 1972 which were previously presented in a similar report in connection with solicitation of bids pursuant to the sale of bonds have been restated in the accompanying summaries to reflect certain reclassification and other changes to conform with certain recommendations affecting financial reporting contained in the audit guide for audits of state and local governmental units issued by the AICPA Committee on Governmental Accounting and Auditing.

NOTE:

In addition to the foregoing financial summaries, copies of the City's Annual Financial Report are available in the office of Mr. J. B. Fennell, City Director of Finance, 600 E. Trade Street, Charlotte, North Carolina 28202 (Telephone AC 704 374-3051).

ANNUAL DEBT REQUIREMENTS FOR UTILITIES FROM JUNE 30, 1974, AND MATURITIES OF BONDS NOW OFFERED: