ABC Board Final FY2013-14 Audit 09-11-14NEW HANOVER COUNTY
ALC4H4LIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Financial Statements
June 30, 2014 and 2013
a
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
TABLE OF CONTENTS
June 30, 2014 and 2013
- - -- Pages
Independent Auditor's Report
1 -2
Management's Discussion and Analysis
3-6
Basic Financial Statements:
Statements of Net Position
Statements of Revenues, Expenses, and Changes in Net Position
-9
Statements of Cash Flows
1
Notes to Financial Statements
11 -2
Supplementary Inf nnation:
Other Post-Employment Obligations - Schedule of Funding Progress
21
Schedules of Store Expenses
Schedules of warehouse Expenses
2
Schedules of Administrative Expenses
2
Reconciliation of Budget to Actual
25 -26
Detailed Statements of Changes in Net Position
2
Schedule of Income b y Store
2
Koonce, Wooten & Haywood, «
CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors
New Hanover County Alcoholic Beverage Control Board
Wilmington, North Carolina
INDEPENDENT AUDITOR'S REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of New Hanover County Alcoholic Beverage
Control Board, a component unit of New Hanover County, Forth Carolina, which comprise the Statement of I Net
Position as of June 30, 2014 and 2013, and the related Statements of Revenues, Expenses and Changes in Net
Position, and Cash flows for the year then ended, and the related notes to the financial statements.
Man agenje 's .responsibility for th e Fin an cial Statem en ts
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. we
conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risk of material misstatement of the financial statements, whether flue to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity "s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of I New Hanover County Alcoholic Beverage Control Board, a component unit of New Hanover
County, as of June 30, 2014 and 2013, and the respective changes in financial position and cash flows thereof for
the years then ended in accordance with accounting principles generally accepted in the United Mates of America.
Raleigh
4969 Barrett Drive:
Post Office Box 17806
Raleigh, North Carolina 2761q,
Durham
3511 Shannon Road
Suite 1.00
Durhan -i, North Carolina 27707
Pittshoro
1.0 Sanford Road
Post Office Box 1399
Pitt born, North Carolina 27312
9-19 782 926 919 354 2584 919 542 6909
919 783 893 / FAX 919 489 8183 FAX 919 542 5764 FAX
L .
Other Matters
Required up ement rr, Information
Accounting principles generally accepted in the United States of America require that the Mana m nt"
Discussion and Analysis and the Other Post Employment Benefit Schedules of Funding Progress and Employer
Contributions on pages 3 through 6 and 21, respectfully, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. we have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management'
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. we do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Lrf01711Q11O1!
Our audits were conducted for the purpose f forming opinions on the financial statements taken as a
whole. The Schedules of Store Expenses, Warehouse Expenses, Administrative Expenses, Schedule of Revenues
and Expenditures -- Budget and Actual, Detailed Statements of Changes in Net Position, and Schedule of Income
by Store are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The Schedules of Store Expenses, warehouse Expenses, Administrative Expenses, and Schedule of
Revenues and Expenditures — Budget and Actual, Detailed Statements of Changes in Net Position, and Schedule
of Income by Store are the responsibility f management and were derived from and relate directly to the
underlying accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the [united States of America. In our opinion, the information is
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Raleigh, North Carolina
September 3, 2014
3.
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Management's Discussion and Analysis
(Unaudited)
This section of New Hanover County Alcoholic Beverage Control (ABC) Board's (the Board) financial report
represents management's discussion and analysis of the financial performance of the Board for the years ended
,lure 305 2014 and 2013. This information should be read in conjunction with the audited financial statements
included in this report.
Financial Highlights
• In 2014
o Working ing capital (calculated as current assets less current liabilities) decreased approximately
30.59% over the prior year.
o Over 11 percent 11.24% of profits were expended for lave enforcement in the current gear.
o Change in net position before profit distributions increased 4.82% over the prior year.
• In 2013
o Working ing capital (calculated as current assets less current liabilities) decreased approximately
4.31 % over the prior year.
o Over 11 percent (11.21%) of profits were expended for law enforcement in the current year.
o Change in net position before profit distributions increased 7.95% over the prior year.
Overview of the Finaiteial Statemews
The audited financial statements of the Board consist of three components. its. They are as follows:
• Man agem en I's Discussion and A nalysis
• Basic Financial Statements
• Additional Inforni atioii Reqi tire d by the North Caro lin ABC Cor n- 7ission
The Basic .Financial St t me is are prepared using the full accrual basis of accounting. They consist of three
statements. The first statement is the Statement of Net Position. Assets and liabilities are classified between
current and long -t rin. This statement provides a summary of the Board's investment in assets and obligations to
creditors. Liquidity and financial flexibility can be evaluated using the information contained in this statement.
The next statement is the Statement of Revenues, Expenses, and Changes in Net Position. This statement is
used in evaluating whether the Board has recovered all of its costs through sales. its information is used in
determining credit worthiness.
The final statement is the Statement of Cash Flows. This statement reports cash inflows and outflows in the
following categories: operating, investing, capital, and related financing and non capital financing activities. Based
on this data, the user can determine in the sources of cash, the rises of cash, and the change in cash.
The notes to the financial statements provide more detailed information and should be read in conjunction with
the statements.
4.
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL, BOARD
Management's Discussion and Analysis
(Unaudited)
The North Carolina ABC Commission requires some schedules in addition to the information required by
accounting principles generally accepted in the United States of America. They include a Schedule of Store
Expenses, a Schedule of Administrative Expenses, a Schedule of Warehouse Expenses, and a Reconciliation
of Budget to Actual. The Board also included Detailed Statements of Changes in Net Position and a Schedule of
Income by Store.
Finnn li l Analysis of New Hanover County ABC Board
Net Position is an indicator of the fiscal health of the Board. Assets exceeded liabilities by $19,620,702 and
$M576,916 at June 30,, 2014 and 2013, respectively. The largest component of net position was the investment in
capital assets. It was o% of the total net position for 2014, 69% for 201 3,, and 66% for 2012. Following is a
summary of the Statement of Net Position:
Table 1
Condensed Statement of N Net Position
The Board restricted balance for capital improvements was S 1 ,600,000.
$ Change
% Change
This Yr over
This Yr over
June 3, 2014
.tune 30, 2013
June 30, 2012
Last Yr
Fast Yr
Current assets
69729,292
S
8,37000
S
779561916
$
1,641,598)
-19.61%
Ikon- current assets
15J83,71
12,8263898
1 1,712,400
239565473
23.05%
Total assets $
22,5129663
S
2151979788
$
193669X6
S
153145875
6.20%
Current liabilities
2,429, 23
S
25175,726
S
1,482,525
253,597
11.66%
Non-current liabilities
462,6
445,146
424,565
17x492
3.93%
Total liabilities
29891,961
$
25620,872
S
1,90 ',090
S
2713059
10.34%
Net Position
Net investment in capital assets $
15,"7839371
S
125526,898
S
1 1 ,712,400
259562473
23,0510
Restricted net position
296565462
33570,964
973,820
(914x502)
- 25.61%
Unrestricted Unrestrictcd net position
191805869
23179,054
5,076x006
(9983155)
-45.81%
Total Net Position
195620J02
S
1855767916
S
17,762,226
S
11043,786
5.62%
For .lure 30, 2014 and 2013, the
decrease in current assets was
due primarily to the building of the new ABC
complex and related expenditures.
The Board restricted balance for capital improvements was S 1 ,600,000.
5.
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Management's Discussion and Analysis
(Unaudited)
Net position as of June 30, 2014 increased by 5.62% from June 30, 2013 compared to a 4.62% increase between
2013 and 2012. Income from operations increased by 5.2% over the prior year and by 8.2% between 2013 and
2012. Following is a summary of the changes in net position:
Table
Condensed Statement of Revenues, Expenses, and Changes in Net Position
Operating revenues
Less: Taxes on gross sales
Net Sales
Less: Cost of sales
Gross Profit
Less: Operating expenses
Income from Operations
Non - operating revenues
Charge in net position
Before Distributions
ns
Less: Distributions
Change in Net Position
Net position - Beginning
369254,842 $
n rrn! nV r
" r I- f.,%.r M it f
18,042,515
9,425,512
� r% rR A a n It
5471,332
-4 OW � If, Am
5487,297
.A AA,% flw d#
1,043,786
i n rAWr ft-9 r
$ Change % Change
This Yr Over This Yr Over
.e 301 2013 June 0, 2012 Fast Yr Last Yr
34,855,016 3354623799 113995826
8,4643641
851435503
322,174
26,3905375
2513195296
150773652
1714423283
16,7875934
6005231
81948,092
I '7An ')1' -7
85531,362
4771421
of \A nr�
5,198,775
-N.K ^-,rl
5,234,853
A A eN Pt s � -,
1 4,690
Y ,"f f ''S '1% -% !
3,727,817
4,803,545
A 1- t +1 +%
438495118
3,793,914
1,055,204
Y - +rfX —I nA^
72,557
(20,113)
252,445
23,348
229,097
n Y A
4.02%
3.81%
3.44%
5.34%
5.46%
5.24%
- 55.'7S%
4.82%
0.530
- 28.12%
4.590
Net Position-Ending 1 9,6201702 1855763916 17,762,226 1,043,786 5.62%
For 2014, gross sales were up 1,399,826. This was the net result of an increase in retail sales, mixed beverage
sales, (sales to permit holders such as bars, restaurants, and hotels ), coupled with a slight increase in wine sales.
For 2013, gross sales were up $1,392,217. This was the net result of an increase in retail sales, mixed beverage
sales, (sales to permit holders such as bars, restaurants, and hotels), coupled with a slight decrease in wine sales.
A
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Management's Discussion and Analysis
(Unaudited)
Following is a breakdown of gross sales by source:
Change % Change
This Yr over This Yr Over
June 3, 2014 June 3, 2013 June 30, 2012 Last Yr Last Yr
Retail Liquor Sales $ 2556$6,213 $ 2454691279 $ 23,3123980 $ 132165934 4.97%
Mixed Beverage Sales 10,5229030 1033395353 1050991336 1825677 1.77%
Retail wine Sales 46,599 46,384 50,483 21 0.46%
Total Gross Sales 36,254,842 $ 3458553016 $ 33,4625799 $ 133993826 4.020
In 2014 , increases in retail sales continue to out -pace increases in nixed beverage sales. In 2013, the percentage
of mixed beverage sales to the total sales decreased very slightly from the prior year.
Capital Assets
Investment in capital assets as of June 30, 2014, totals $15,783,371 (net of accumulated pr i tion ).
Major capital asset transactions during the year include the following:
Construction in progress addition of $3,155,358 for a new administration b ildin .
New distribution vehicle purchase resulted in an increase in capital assets of $91,706.
Table 3
Capital Assets
(net of depreciation)
Total
Change % Chap
This Yr Over This Yr Over
hi n'. 'I ')A1 0 r A€3+ N7W. r ., r,+ X7 ..
439465076
June 30, 2014
June 30, 2013
Lard
$ 4,946,076
43946,076
Con trLlCtiO 3 in progress
496519558
154781078
Buildings and improvements
5,721,530
559875041
Vehicles
96161
155858
Furniture and equipment
367,590
3995845
Total
Change % Chap
This Yr Over This Yr Over
hi n'. 'I ')A1 0 r A€3+ N7W. r ., r,+ X7 ..
439465076
-
0.00%
33,123
33173,480
214.70%
65256,206
(2653511 )
- 4.4310
36,899
80,759
509.26%
440,094
(325255)
- 8.07%
15,783,371 12,82 ,898 1 1,712,398 $ 2,9563473 23.05%
Additional information on the Board's capital assets can be found in Dote 1 of the Basic Financial Statements.
Economic Factors
The Board will consider enlarging or rebuilding existing locations should the demand continue to increase.
Requests for Information
This report is intended to provide a summary of the financial condition of the New Hanover County ABC Board.
Questions or requests for additional information should be addressed to:
Carol E. Martin, Finance Officer
New Hanover County Alcoholic Beverage Control Board
523 South 17`x, Street
wilminoton, forth Carolina 28401
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Statements of Net Position
June 30, 2014 and 2013
CURRENT ASSETS:
Cash and cash equivalents (Dote 1
Accounts receivable
Inventories
Prepaid expenses
Total current assets
ICON - CURRENT ASSETS:
Capital assets:
Lard and construction in progress (Note 1
Depreciable capital assets, net (Mote 1
Total noncurrent assets
Total assets
ASSETS
LIABILITIES AND NET POSITION
CURRENT LIABILITIES:
Accounts payable
Distributions payable
State taxes payable (Note 9)
Accrued expenses:
Liabilities
Payroll and related costs (Note 6)
Sales tax payable
Total current liabilities
NON - CURRENT LIABILITIES:
Other post retirement benefits payable (Nate 3)
Total liabilities
NET POSITION:
Net Investment in Capital Assets
Restricted for:
Capital improvements (Note 2)
Working capital (Note 13)
Unrestricted
Total net position
Total liabilities and net position
The accompanying rotes are are integral part of the fin(ancial statements.
2014
4,167,782
12,3
2,493,548
55,642
6,729,292
9,597,634
6,185,737
PF PT in
7.
2013
6,150,66
1,191
2,181,221
37,872
11-7 onn
6,424, 154
6,402,744
22�512f 63 2191 97,788
1,344,611
162,834
75'7,155
19,654
91,033
545036
462,638
15J839371
1600,000
1,056,462
I,1,69
1,164,894
156,725
732,871
16,602
54,570
50,064
eN i 17 L' {7 +'1 /'
12,826,898
2,555,950
1,015,014
2,179,054
1 n c-7� A 1 �_
22,512,663 211197,788
•
NEW HANVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
A Component Unit of New Hanover County)
Statements of Revenues, Expenses, and Changes in Net Position
For the Years Ended June 30, 2014 and 2013
2014 2013
OPERATING REVENUE:
Liquor sales - regular S 2536861213 2454691,279
Mixed beverage sales K522, 030 105339,353
Wine sales 469599 46,384
Total gross sales 365254,842 34,855,16
DEDUCT TAXES ON GROSS SALES:
State excise tax (Dote 9 )
79620,982
75313,099
Mixed beverage tax (Revenue) (Note 9 )
9635166
9529400
Mixed beverage tax (Human Resources) (Note 9 )
965317
959240
Rehabilitation tax (Note
1035301
1 00,868
Wine sales tax
3049
3,034
Total taxes on gross sales
87865815
,44,41
NET SALES
2794689027
26,390,375
DEDUCT COST OF SALES
Cost of Sales
185042,515
17,442,283
GROSS PROFIT ON SALES
994259512
8,948,092
DEDUCT OPERATING EXPENSES
Store expenses
2,556,240
2,436,447
Warehouse and delivery expenses
317,966
314,176
Administrative expenses
732,573
63%P74
Depreciation expenses
347,401
359,620
Total operating expenses
3,954,180
3,749,317
INCOME FROM OPERATIONS
5,4'71,332
5,198,775
NON- GPEATLNG REVENUES AND EXPENSES:
Interest interne
10,x.18
32,252
Gain on disposal of asset
5
_
Other income
5,797
3,826
Total non-operating revenues and expenses
159965
365075
CHANGE IN NET POSITION BEFORE DISTRIBUTIONS
5.487.297
_234.
DEDUCT.
Local 3.5% tax (Note 8 ) 889,113 853,193
Local .5 bottle charge (Note 9 ) 1035301 1 K868
Law Enforcement (Note 5055001 480,000
Local Mixed Beverage Surcharge (Note 9 ) 866,852 857,160
Total distributions 21364,267 2,291,221
CHANGE IN NET POSITION
BEFORE PROFIT DISTRIBUTIONS (Forward) 391231030 2,943,632
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
T
A Component Unit of New Hanover County)
Statements of Revenues, Expenses, and Changes in Net Position
For the Years Ended June 30, 2014 and 2013
CHANGE IN NET POSITION
BEFORE PROFIT DISTRIBUTIONS (Forwarded)
PROFIT DISTRIBUTIONS:
City or Municipality (Note 7)
County (Note 7)
Total profit distributions
CHANGE IN NET POSITION
NET POSITION - Beginning of year
NET POSITION -End of year
The accompanying notes are aii integral part of the financial statements.
2014
2013
01
351235030
23943,632
1,094,657
151255384
9849587
150035558
250799244
251285942
150439786
814,690
185761916
175762,226
1996209702
18,576,916
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Statements of Cash Flows
For the Years Ended June 30, 2014 and 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash payments to suppliers for goods and services and takes on sales
Cash payments to employees for services
Sales taxes paid
Other operating receipts
Net cash provided by operating activities
2014
36,243,715
(19,5485661)
(211945007)
(857585559)
5,797
5,748,285
48,285
um
2013
34,853,845
(18,036,760)
(2,120,884)
(8,509,254)
3,826
6,190,773
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
(39303,824)
1,474,118)
Net cash used by capital and related financing activities
(39303,824)
1,474,118)
CASH FLOWS FROM NON - CAPITAL FINANCING ACTIVITIES:
Law enforcement distributions
(5 055001)
(480,000)
Local tax and surcharge
(118539158 )
(1,824,542)
Profit distributions to primary government
(2,079,244)
(2,128942)
Net cash used by non- capital financing activities
(45437 403)
(4,433,484)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments
1I19118
32,252
Net easy provided by investing activities
109118
32,252
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
{1,9821824}
3155423
SIB AND CASH EQUIVALENTS-Beginning of year
651509606
5,835,183
CASH AND CASH EQUIVALENTS-End of year
411675782
65150,606
RECONCILIATION OF CHANGE IN NET POSITION
BEFORE DISTRIBUTIONS TO NET CASH PROVIDED
BY PERATT ACTIVITIES:
Charge in Net Position before distributions
55471,332
5,198,775
Adjustments to reconcile income from operations to
net cash provided by operating activities:
Depreciation
347,401
359,620
Other income
V97
3,826
Changes in assets and liabilities
Accounts receivable
(11,129)
(1 3170)
Inventories
(312,326)
104,090)
Prepaid expenses
(17,771)
6,707
Accounts payable
1795 718
750,573
State taxes payable
245284
(41,339)
Accrued payroll and related costs
36,463
23122
Accrued sales tax payable
31972
(3,274)
Accrued other post retirement benefits payable
17,492
20,581
Accrued liabilities
31052
1,558)
Total a4justments
276,953
991,998
Net cash provided by operatflig activities
517485285
6,190,773
The accompanying notes are Ii integral part of the financial statements.
NEW HAN VER COUNTY ALCOHOLIC BEVERAGE CONTROL, BOARD
Notes to Financial Statements
.tune 30, 2014 and 201
Note 1. Snmmary of Significant Accountinu Policies
Principles Used in Determining the Scope of the Entity for Financial Reporting:
The Now Hanover County Alcoholic Beverage Control Board (the Board), a component unit of New Hanover
County, North Carolina reporting entity, is a corporate body with powers outlined by North Carolina General
Statues Chapter 18 B -70 1. The County's governing body appoints the Board,
The Board is required by State Statute to distribute a portion of its surpluses to the General Fund of the County
and its 'municipalities, which represents a financial benefit to the County and its municipalities. Therefore, the
Board is reported as a discretely presented component unit in the County's financial statements.
Organizational History:
The Board was organized in 1935. The Board's governing body is comprised of five individuals, serving
staggered -year terms, who are appointed by the New Hanover County Commissioners as terms expire.
The Board, as provided by North Carolina Alcoholic Beverage Control laws, operates six retail liquor stores, one
'nixed beverage location, and two combination retail/mixed beverage stores and, by contract with the New
Hanover County Sheriff, investigates violations of such laws. North Carolina General Statute [ 1 8B - 8 0 c )(2) (3)]
requires that the Board expend at least % of profits for law enforcement, but the Board is exempt from the law
requiring an expenditure of at least 7% of total profits for alcohol education and rehabilitation purposes.
Basis of Presentation:
All activities of the Board are accounted for within a single proprietary (enterprise) fund. Proprietary funds are
used to account for operations that are a financed and operated in a manner similar to private business
enterprises where the intent of the governing boob' is that the cost of providing goods or services to the general
public on a continuing basis be financed or recovered primarily through user charges; or b where the governing
body has decided that periodic determination of revenues earned, expenses incurred, and/or the change in net
position is appropriate for capital 'maintenance, public policy, management control, accountability, or other
purposes.
Basis of Accounting:
The financial statements have been prepared using the accrual basis of accounting. All sales are made by cash,
check, debit or credit card and recorded at the time of sale. Other revenues are recorded when earned. Expenses
are recognized when incurred.
Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the statement of Net Position elate, and reported amounts of
revenues and expenses during the reporting period. Estimates are used to determine depreciation expense and
other post employment benefit expenses. Actual results may differ from those estimates.
12.
NEW HANG VER COUNTY ALCOHOLIC BEVERAGE CONTROL, BOARD
Dotes to Financial Statements
June 30, 2014 and 201
Note 1. Summary of Significant Accounting-Policies Continued
Assets, Liabilities, an Net osit on
Deposits:
All deposits of the Board are made in board - designated official depositories and are collateralized as required by
State Laver G. S. 15 9 -3 1. The Board may designate, as an official depository, any bank r savings and loan
association whose principal office is located in Forth Carolina. Also, the Board may establish time deposit
accounts such as NOW and SuperNOW accounts, money market accounts, and certificates of deposit.
All of the Board's deposits are either insured or collateralized by using one of two methods. Under the Dedicated
Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities
held by the Board's agent in the Board'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 Board, these deposits are considered to be held
by the Board agent in the Board's name. The amount of the pledged collateral is based on are approved avera ing
method for non - interest bearing deposits and the actual current balance for interest fairing 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 Board or the escrow agent. Because of
the inability to measure the exact amount of collateral pledged for the Board under the pooling method, the
potential exists for under-col lat rali ation, and this risk may increase in periods of high cash flows. However, the
State Treasure- of North Carolina enforces strict standards of financial stability for each depository that
llateralizes public deposits under the pooling method. The Board has no formal policy regarding custodial
credit risk for deposits; however, it is the current Informal policy to follow State requirements.
At June 30, 2014 and 2013, the Board's deposits had a carrying amount of ,1 36,882 and $6,1195806,
respectively, and a bank balance of $5,289,980 and $6,141,003, respectively. All of the bank balance was either
insured by federal depository insurance or collateralized under the pooling method described above.
Cash and Cash Equivalents:
For purposes of the statement of cash flogs, the Board considers all highly liquid investments with a maturity of
six months or less when purchased to be cash equivalents.
Inventories:
Inventories are valued at current replacement cost which approximates the lower of cost (FIFO) or market.
1.
NEW HAN VEF COUNTY ALCOHOLIC BEVEF -AGE CONTROL BOARD
Notes to Financial Statements
June 3, 2014 and 2013
Note 1. Sunimau, of Significant Accounting Policies on lnd d
Capital Assets:
Capital Asset activity for the year ended ,lone 30, 2014 was as follows:
Capital assets not being depreciated
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated
Buildings and improvements
Furniture/Equipment
Vehicles
Total capital assets being depreciated
Less accumulated depreciation
Buildings and improvements
Furniture/Equipment
Vehicles
Total Accumulated Depreciation
Total capital assets being depreciated, net
Balance Balance
!lic /it) /nA 1 '} i__ ____ w _ _ Tt _ - .- - - _ - �0, )•% f1 Jfa ^ -M I
4,9465076
--
--
4,946,476
134785078
33173,480
-
416515558
654243154
351735480
955975634
91)150,226
-
-
9,184,226
767,835
38,689
263532
779,992
1 26,157
913706
217,863
10,074,218
1345395
205532
14,1785081
3,1935159
265,537
-
3,4581696
3685417
74391
263533
412,402
1 M298
149948
-
121,246
35671,474
3475401
26,533
3,992,344
654425744
347A1
26,533
6,185,"737
Capital assets-net 12,8263898 $ 15,7835371
When an asset is disposed of, the cost of the asset and the related accumulated depreciation are removed from the
boobs. Any gain or loss on disposition is reflected In other Income for the period.
Long -Lived Assets:
Long -lived assts to be held and used are reviewed for impairment whenever events or changes in circumstances
indicate that the related carrying amount may not be recoverable. when required, imp irment losses on assets to
be held and used are recognized based on the excess of the asset's carrying amount over the fair value of the asset.
Long -lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.
Note 2. Net Position
Net Position consists of the following:
Net inveshnent in capital assets -- This component of net position consists of capital assets, net of accumulated
depreciation.
. ti -i teci, or ccilmal in il-wo vein e is — State law [G.S. 18B-805(d)] requires approval of the appointing authority
to establish this account. on July 2, 2012, the New Hanover County Board of Commissioners approved the
Board's request to restrict funds for capital it prov rnents in the amount of $2,555,950. On November 18, 2013
the New Hanover County Board of Commissioners approved an additional $1,944,050. The balance at June 30,
2014 was 1,600,000 after expenditures for the ne w facility.
M.
NEW HANOVER COUNTY TY ALCOHOLIC BEVERAGE CONTROL BOARD
Notes to Financial Statements
June 30, 2014 and 2013
Note 2, Net Position (Continued)
Restrictedfor working capital — North Carolina Alcoholic Beverage Control Commission Rule [,0902] defines
working ing capital as the total of cash, investments a nd inventory less all unsecured liabilities. Are ABC Board shall
set its working ing capital requirements at not less than two weeps' average gross sales of the last fiscal year (legally
required minimum ) oor greater than three months' average gross sales of the last fiscal year. Average gross sales
means gross receipts from the sale of alcoholic beverages less distributions required by State lave [G.S. 18B-
805(b), 2, , and ].
Unrestricted net positron — This component of net position consists of net position that does not meet the
definition of restricted or net investment in capital assets.
Mote 3. Pension Plan Obligations and Other Post Employment Benefits
Local Government ntp oyees' efirentent System
Plan Description:
The Board contributes to the statewide Local Government Employees' Retirement System LGERS , a cost-
sharing multiple - employer defined benefit pension plan administered by the State of North Carolina. LGEI S
provides retirement and disability benefits to plan members and beneficiaries. Article 3 of G.S. Chapter 128
assigns the authority to stablish and amend benefit provisions to the North Carolina General Assembly. The
Local Governmental Employees' Retirement System is included in the Comprehensive Annual Financial Report
CAF for the State of North Carolina. The State's CAFR includes financial statements and required
supplementary information for L ERS. That report may be obtained by writing to the Office of the Mate
Controller, 14 10 Mail Service Center, Raleigh, North Carolina 27699-14 10, or by calling 19 981-5454.
Funding Policy:
Plan members are required to contribute % of their annual covered salami. The Board is required to contribute at
an actuarially determined rate. For the year ended June 30, 2014, the Board's current rate for employees not
engaged in law enforcement is 7.37% of annul covered payroll. The contribution requirements of members and
of the Bard are established and may be amended by the Forth Carolina General Assembly. The Board's
contributions to L E S were $152004, $1 39,095, and $129,786 for the years ended June 30, 2014, 2013, and
2012, respectively. The contributions made by the Board equaled the required contributions for each year.
Death Benefits:
The Board has also 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 -gear term 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 clays after
retirement or termination of service and have at least one year of contribution membership service in the System
at the the of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries. are equal to
the employee's 12 highest months' salary in a raw during the 24 months prior to the employee's death, but the
benefit may not exceed $50,000 or be less than $25,000. All death benefit payments are nude froin the Death
Benefit Plan. The Board has no liability beyond the payment of monthly contributions. The contributions to the
Death Benefit Plan cannot be separated between the post employment benefit amount and the other benefit
amount. The Board considers these contributions to be iminat rial.
1.
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL ROL AR
Notes to Financial Statement
June 30., 2014 and 201
Mote 3. Pension Plan Obligations and Other Post Employment Benefits Continued
Supplemental Retirement Plan
Plan Description:
The Board contributes to the Supplemental Retirement Income Plan, a defined contribution pension plan
administered by the Department of State Treasurer and a Board f Trustees. 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 is included in the Comprehensive Annual Financial Report AF 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. That report may be
Obtained by writing to the Office of the State Controller, 1410 flail Service Center, Raleigh, North Carolina
27699 -1410, Or by calling (919) 1 -5454.
The plan covers all employees who are also eligible to participate in the Local Governmental Employee's
Retirement System, The Board's contribution is based On matching 100% of employee's contributions ranging
from 2% to % of salary deferral elected by each eligible employee. The Board's contribution for the years ended
June 30,, 2014 and 2013 were $52,237 and $49,927, respectively.
Other Post-Employment Benefits (OPEB)
Plan I eset•1pti n:
The Board has adopted, by resolution, a single employer, defined benefit health insurance plan, whereas upon
retirement of each employee who has been continuously employed by said Board for thirty or more rags of
service, or each employee who has been continuously employed by said Board for t wenty -five years of service
and reached age sixty, the Board shall pay and provide medical insurance coverage at no cost to said employee
until such time as said employee is eligible for Medicare Benefits. Thereafter, the Board shall pay and provide to
each qualifying employee, supplemental insurance to Medicare Benefits they are eligible to receive.
Membership of the Healthcare Benefits Plan consisted of the following at December 31,, 2011, the date of the
latest actuarial valuation:
General
Employees
Retirees and dependents receiving benefits 11
Active plan members 55
6
Funding Policy:
The current annual required contribution rate is 2.4% of annual covered payroll. For the current year, the Board
contributed $33,288 or 1.6% of annual covered payroll. The New Hanover County Alcoholic Beverage Control
Board is required to contribute 100% of the premiums reqijired to provide post - employment health benefits for
eligible members under a board resolution that can be amended by the Board. The Board has chosen to fund the
health benefits on a pay -as- you -go basis.
Summary of Significant Accounting Policies:
NO funds are set aside to pay benefits and administration costs. These expenditures are paid as they come due.
16.
NEW HANOVER COUNTY ALCOHOLIC EVER -AGE CONTROL BOARD
Notes to Financial Statements
June 305 2014 and 2013
Note 3. Pension Plan Obligations and Other Post Employment Benefits Continu �
Annual OPEB Cost and Net OPEB Obligation:
The Board's annual OPEB cost (expense) is calculated based on the annual required n ribut on of the employer
(ARC), are amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The
ARC represents a level of unding 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 Board's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the Board's net OPEB Obligation for the healthcare benefits:
2014 2013
Annual required contribution
49,984
Interest on net OPEB obligation
17,806
Adjustment to annual required contribution
(17,010)
Annual OPEB cost (expense)
50,70
Contributions 'Wade
33,288
Increase in net OPEB Obligation
17,492
Net OPEB obligation- Beginning of year
445 ,1146
Net OPEB Obligation -End of year
42,6
49,984
16,983
(16,224)
50,743
30, 162
20,581
424,565
4459146_
The Board's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2014, 2013, and 2012 were as follows:
Year Ended
Annual
Percentage of Annual
Net OPEB
June 30
OPE13 Cost
OPEB Cost Contributed
Obligation
2014
50,780
65.55%
462,638
2013
$ 50,743
59.44%
445,146
2012
$ 98,383
42.03%
4245565
Funded Status and Funding Progress:
As of December 31, 2011, the most recent actuarial valuation date, the plan was not funded. The actuarial accrued
liability for benefits and, thus, the unfunded actuarial accrued liability U L was $791,293. The covered
payroll (annual payroll of active employees covered by the plan) was $2,037,135, and the ratio of the UAAL to
the covered payroll was 38.84%. Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and assumptions about the probability of occurrence of everts 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
ominual revision as actual results are compared with past expectations and new estimates are 'Wade about the
future. The Schedule of Funding Progress, presented as required supplementary information following the notes
to the financial statements, presents information about the actuarial value of plan assets and the actuarial accrued
liabilities for benefits.
1.
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Notes to Financial Statements
June 30, 2014 and 2013
Note 3. Pension Plan ohfi ns and Other Post mployment e_n rits (Con el d
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, 2011 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 9.5% (pre-Medicare) or %
(post-Medicare) a decreasing to 5% by 2018. Both rates included a 3% inflation assumption. The actuarial
value of assets, if any, was determined using techniques that spread the effects of short -term volatility in the
market value of investments over a five -year period. The UAAL is being amortized as a level percentage of
projected payroll on an open basis. The remaining amortization period at December 31, 2011, was 29 years.
Note 4. Commitment
The Board has entered into agreements for both architectural and schematic design services. At June 30, 2014, the
commitment to both companies totaled $1,834,301. The Board also has two contracts with the New Hanover
County Sheriffs Department to provide law enforcement services. At .Tune 30, 20141, the commitment for both
contracts to the Sheriff's Department totaled $486,000.
Note 5. Lease Commitments
The Board leases a copier at its administrative office. The lease commitment is as follows:
Year Ending
June 3
2015
1,560
2016
1,80
2017
1,550
Total
Note 6. Vacation and Sick Leave Compensation
Board employees may accumulate up to 80 days earned vacation and such leave is fully vested when earned.
Accumulated earned vacation at June 3 , 2014 and 2013 amounted to $1 8,150 and $13,050, respectively. The
current portion of the accumulated vacation pay is not considered to be material.
Employees can accumulate an unlimited amount of sick leave. Sick leave may be used in the determination of
length of service for retirement benefit purposes. Since the Board has no obligation for accumulated sick leave
until it is actually taken, en, too accrual for sick leave has been made.
1.
NEW HAN VER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Notes to Financial Statements
,tune 3 , 2014 and 2013
Note . Local Distributions of Income
North Carolina G.S. 18B -805 requires that the minimum distribution set aside in (c) (1) and any profit remaining
after deducting amounts required for haw enforcement and alcohol education and retaining proper working capital,
be paid quarterly to the appointing authority.
Profits of the local retail stores are distributed to the local government units according to the location of each store
as follows:
Store Location NH County Wilmington W. Beach C. Beach K. Beach
Unincorporated area 1
Wilmington 50 5
Wrightsville Beach 25
Carolina beach 25 75
Kure Beach 25 75
Profits derived from the mixed beverage outlets are distributed similarly but according to the relative sales in each
location rather than the store's location. The local governmental unit's share of the mixed beverage tax is
distributed separately but in the sane manner.
The 3.5% local tax and the local $.05 per bottle charge are distributed separately but in the same war as profits.
Note 8. Law Enforcement and Alcohol Education Expenses
The Board is required by law to expend at least 5% of its profits for law enforcement purposes. Profits are defined
by law for these calculations as change in net position before law enforcement and educational expenses, less the
3.5% markup provided in G. S. 1 813 - b ) (5) and the bottle charge provided for in G. S. 1813 -8 b ) (6b).
The Board contracts with New Hanover County whereby the local sheriffs' ' department will provide later
enforcement on behalf of the Board. The contract requires annual payments of $300,000. The Board also
approved an additional one -time distribution of $180,,000 for fiscal year 2014 to fund a downtown task force and
purchased a used vehicic for $25,00 1.
Profit before distributions
Less: 3.5% tax and bottle change
Profit subject to expense percentages
Law enforcement expenditures -- Actual
Percentage of profit
5,487,298
992,41
4,494,84
505,001
11.24%
A bottle charge as provided for in G.S. l 8B -4b of one cent on each bottle containing 50 milliliters or less
and five cents on each bottle containing more than 50 milliliters is collected and distributed monthly to the county
commissioners for alcohol education and rehabilitation. For the fiscal year ended June 3, 2014, payments to the
County were based on the following bottle sales:
Regular bottles 1,430,674 at 5 cents = 715534
Mixed bevel-age bottles 504,582 at 5 cents = 25,229
Miniature bottles 6531794 at 1 cent = 61538
Total payment for the year 1 03,30 1
19.
NEW HANOVE COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Notes to Financial Statements
June 30, 2014 and 2013
Note 9. Disbursement of Taxes Included in Selling Price
state excise tax at the rate of % on the liquor (net sales) price is charged monthly on sales (excluding in
sales). Transactions for this account for the year are summarized as follows:
Taxes payable July 1, 2013 6335185
Taxes collected during the year 7,620,982
Taxes remitted to Department of Revenue (7,601,332)
Taxes payable June 30, 2014 6523,835
The excise tax is computed in accordance with G.S. 18B-805(i), and is included in State Taxes Payable in the
Statements of Net Position.
The accrued North Carolina excise tax at June 30, 2014, was remitted to the North Carolina Department of
Revenue on July 15, 2014.
An additional bottle charge as provided for in G.S. 1 - o b 6b of one cent on each bottle containing 50
milliliters or less and fire cents on each bottle containing more than 50 milliliters is collected and distributed
monthly for alcohol education and rehabilitation. For the fiscal year ended June 30, 2014, payments to the County
and its municipalities were based on the following bottle sales:
Regular bottles 1,430,674 at 5 cents 7 1,534
Mixed beverage bottles 504,582 at 5 cents = 25,229
Miniature bottles 653,794 at 1 cent = 6,53
Total payment for the year 1 031,301
"mixed beverage tax" as provided for in G.S.l 8B - b at the rate of 2 0 pe r 4 liters 1 s charged on the sale
of liquor to be resold as mixed beverages. One -half of the mixed beverage tax is ubmitt d monthly to the
Department of Revenue. Five percent of the mixed beverage tax is submitted monthly to the Department of
Health and Human Services.
The mixed beverage tax for the year was:
Department ofRevenue 50% 963,166
Department of Health and Human Services 5% 96,31
Profit retained and remitted to local government 45% 866,850
Total 119265333
Note W. Bailment Sur har a Collected
The total amount of surcharge collected (the rate is 80 cents per case sold) for the fiscal year was $161,93 1.
Note 11. Liquor Sales Tax
The total amount of sales tax collected by the Board and remitted to the Department of Revenue for the fiscal year
was $1,,795,506.49. The current sales tax fate is %. This tax is collected as agent for the State in each sales
traiisactlon and remitted each month to the State. This tax is not shown in the Schedide of Revenues, Expen e ,
and Changes in Net Position.
20.
NEW H l COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
Notes to Financial Statements
June 3, 2014 and 2013
Note 12. Retail Outlets
The ABC Board operated eight retail outlets, two of which also sold mixed beverages an are outlet that only sold
mixed beverages:
Note 13. Workin2 Capital
Net Profit (Loss) Before
Profit Distributions
Year Faded June 30,
2014 2013
325,575
84,217
943,124
399,918
317,375
376,616
445,3511
(32,433)
263,287
3,123,030
307,093
82,624
954,922
352,621
286,040
344,570
422,874
(5,406)
198,294
2,943,632
The Board is required by the Alcoholic Beverage Control Commission rule [.09b2] to set its working capital
requirements at not less than two weeks average gross sales of the last fiscal year. (Gross sales are gross receipts
from the sale of alcoholic beverages less distributions as defined in G.S. 18B- $05(b)(2 ), (3), and (4)).
M1I'11I1ium amount
Maximum amount
Actual amount
1,056,462
6,867,06
4,232,006
The Board has met the miniiInum arnou It of working capital required by ABC law as shown above.
Note 14. Risk Mannement
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The Board has commercial property, general liability,
auto liability, workmen's compensation, data breach, flood, wind & hail, public officials liabilit enipl anent
practice and employee health coverage. The Board also has liquor legal liability coverage.
There have been no significant reductions in insurance coverage froin coverage in the prior year and settled
claims have not exceeded coverage to any of the past three fiscal years.
In accordance with G.S. 18B-700(i), each board member and the employees designated as the general manager
and finance officer are bonded in the amount of $50,000, secured by a corporate surety.
In accordance with G.S. 18B- 3 b and (c), all store managers and empI oyees who have access to funds are
insured for $25,000.
Gross Sales
Year Ended .tune 3,
Store
Store Address
2014
2013
101
523 S. 17th St, Wilmington, NC S
31609,872
$ 315005546
102
2378 C. Beach Rd, Wilmington, NC
1,8831143
117801064
103
523 S. 17th St5 Wilmington, NC
8,831,027
81889,349
104
6730 Wrightsville Ave, W. Beach, NC
45164,813
3,9209765
105
1 020 N. Labe Park Blvd, C Beach, NC
4,2135379
3,9753963
106
3544 S. College Rd, Wilmington, NC
4,350,053
4J029490
108
5410 Market St, Wilnii gton, NC
497489838
4155595451
109
6015 Castle Hayne Rd, Castle Ha ne, NC
1,112,911
130083971
110
8122 Market et t, Wilmington, NC
3,3401806
3,11 73417
3612545842
$ 345855,016
Note 13. Workin2 Capital
Net Profit (Loss) Before
Profit Distributions
Year Faded June 30,
2014 2013
325,575
84,217
943,124
399,918
317,375
376,616
445,3511
(32,433)
263,287
3,123,030
307,093
82,624
954,922
352,621
286,040
344,570
422,874
(5,406)
198,294
2,943,632
The Board is required by the Alcoholic Beverage Control Commission rule [.09b2] to set its working capital
requirements at not less than two weeks average gross sales of the last fiscal year. (Gross sales are gross receipts
from the sale of alcoholic beverages less distributions as defined in G.S. 18B- $05(b)(2 ), (3), and (4)).
M1I'11I1ium amount
Maximum amount
Actual amount
1,056,462
6,867,06
4,232,006
The Board has met the miniiInum arnou It of working capital required by ABC law as shown above.
Note 14. Risk Mannement
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The Board has commercial property, general liability,
auto liability, workmen's compensation, data breach, flood, wind & hail, public officials liabilit enipl anent
practice and employee health coverage. The Board also has liquor legal liability coverage.
There have been no significant reductions in insurance coverage froin coverage in the prior year and settled
claims have not exceeded coverage to any of the past three fiscal years.
In accordance with G.S. 18B-700(i), each board member and the employees designated as the general manager
and finance officer are bonded in the amount of $50,000, secured by a corporate surety.
In accordance with G.S. 18B- 3 b and (c), all store managers and empI oyees who have access to funds are
insured for $25,000.
SUPPLEMENTARY I F 1A 1 IOM
1.
NEW HAN VER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Other Post-Employment Benefit Obligation
Schedules of Funding Progress
June 30, 2014 and 2013
Schedule of Employer- Contributions
Fiscal
Annual
Actuarial
Year
Required
Percentage
UAAL,
Contribution
Contributed
Accrued
49,984
66.6%
6/30/2013
as a
60.3%
Actuarial
Liability AAL)
Unfunded
Percentage
Actuarial
Value of
Projected
AAL
Funded
Covered
of Covered
Valuation
Assets
Unit Credit
UA.A.L.
Ratio
Payroll
Payroll
Date
a
h
b - a )
(ab )
( C )
( ( h - a /off
12/31/2011
$
7915283
791,283
0.00%
$ 2,037,135
35.8%
6/30/2009
$
8805945
8805945
0.00%
1,98024
44.5%
Schedule of Employer- Contributions
Fiscal
Annual
Year
Required
Percentage
Ended
Contribution
Contributed
6/30/201
49,984
66.6%
6/30/2013
$ 49,984
60.3%
6/30/201
1045936
39.4%
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Schedules of Store Expenses
For the Years Ended June 30, 2014 and 2013
Pay and Related
Alarm Syst rn
Breakage
Cash over Short
Charge Card Fees
Insurance - General
Maintenance Contracts
Merchandise (Over) Short
Professional Services
Repairs and Maintenance: Building
Repairs and Maintenance: Equipment
Supplies
Telephone
Training and Education
Travel
Utilities
Total store expenses
22.
2014
2013
19973,522
1,886655
3,876
4,050
15733
12713
{426
629
277,220
258,017
59,768
5550415
42,785
41,444
21905
43866
6,055
69000
29,037
249785
2,212
1,716
51,880
48,973
355302
32,621
1,079
-
3
-
68,399
69,563
2,5569240
2,436,447
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Schedules of Warehouse Expenses
For the Years Ended June 30, 2014 and 2013
Pay and Related
Training and Education
Insurance- General
Professional Services
Repairs and Maintenance: Building
Repairs and Maintenance: Equipment
Supplies
Telephone
Travel
Vehicle Expense
Total warehouse expenses
2014
2013
23.
293,514
2935067
258
120
55369
4,391
171
R
15181
19256
1,030
1,365
1,406
3, 418
258
-
569
-
14.220
10.559
3179966 314,17
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Schedules of Administrative Expenses
For the Years Ended June 30, 2014 and 2013
Pay and Related
Alarm System
Board Member -Per Diem
Cash (Over )/Short
Dues and Subscriptions
Insurance- General
Janitor Service
Legal and Audit
Licenses and Other Taxes
Maintenance Contracts
Miscellaneous Expense
Postage
Professional Services
Repairs and Maintenance: Building
Repairs and Maintenance-. Equipment
Retirees' Healthcare Expense
Supplies
Telephone
Training and Education
Travel
Travel - Board Members
Utilities
Vehicle Expense
2014
534,734
399
15,300
5
3,873
16,358
2,370
40,868
120
175047
9,025
2,194
8,091
1,379
423
50,780
6,638
4,707
4,9.3
1,969
5020
4,079
15691
24.
2013
458,515
225
11,250
4,05 8
15,041
2,125
26,494
16,379
9,358
1,485
1,148
1,996
509
50,865
8,500
3,115
4,922
7,687
9,389
4,057
1.956
Total administrative expenses 732573 639,074
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Reconciliation of Budget to Actual
June 30, 2014
REVENUES:
Operating Revenues:
Liquor sales-regular
Mixed beverage sales
Wine sales
Total sales
Non - operating revenues:
Interest income
Other income
Gain on the sale of assets
Total revenues
25.
5,639 55639
15.737.1 35.717.1
10,118
5,797
5
16270-SO7
Expenditures:
Variance
Original
Revised
Positive
Budget
Budget
Actual
(Negative)
25,1 1,536
$ 251,101,536
25,686,213
5845677
1,5769353
10,5765353
10,5225030
(54,323)
53,598
53,598
46,599
(6,999)
3511731,487
35,731,487
36,254,842
523,355
5,639 55639
15.737.1 35.717.1
10,118
5,797
5
16270-SO7
Expenditures:
Total Taxes based on revenue:
State excise tax
7,502,252
755025252
756205982
Mixed beverage tax (Revenue)
980,184
9805184
963,166
Mixed beverage tax Tl rn n Resources)
981X1
985021
96,317
Rehabilitation tax
1175023
1175023
103301
Nine /mixer sales tax
35757
3,757
3,049
Total Taxes based on revenue:
8,70 1,237
8,70 1,237
8,786,815
Cost of goods sold
18,137,200
18,137,200
18,0425515
OPERATING EXPENSES:
Pay and Related
21774,679
2,834,212
2801,760
Alarm Service
5311
5,116
41275
Board Member-Per Dien
151600
15, 0
153300
Breakage
4,681
4,681
1,733
Cash Short (Over)
3,54
3,054
421
Charge e Card Fees
318,493
3185493
2775220
Dues and Subscriptions
45060
45060
3,873
Insurance - general
995473
99,473
81,495
Janitor Service
4,200
43200
25370
Legal and Audit
391000
40868
401868
Licenses & Other Taxes
288
288
120
Maintenance Contracts
65,821
655821
59,835
Merchandise Short (Over)
125754
125754
2,905
Miscellaneous
1349000
1715179
9,025
Postage
-
-
2,194
Professional Services
151466
15,466
14,317
Repairs and Maint -Bldg
22,186
28,324
32,197
Repairs and Maint- Equipment
65432
65432
35605
Retirees' Healthcare Expense
405000
403000
33,288
Supplies- Admilz
11 , 100
115100
63637
Supplies-Stores and Warehotise
611308
61,308
53,287
Telephone
38,256
39,538
40,267
Training and E ucatioll
8,900
8,900
6,250
Travel -Board Member
9,750
9,750
51020
4,479
5,797
118,730
(17,01$)
(1,7Q4)
(13,722)
(708)
(94.615)
32,452
841
300
2,948
2,633
41,273
187
17,978
1,830
168
5,986
9,849
162,154
2, l 94
1,149
(3,873)
2,767
6,712
4,43
8,02,1
(729)
2,650
4,730
NEW HANOVER COUNTY AT.COHQLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Reconciliation of Budget to Actual
June 30, 2014
OPERATING EXPENSES (Continued ):
Travel -Other Than Board $
Utilities
Vehicle Expense
Total operating expense
26.
Capital Outlay:
3,910,000
3,9105000
Variance
Original
Revised
34,550,218
Positive
Budget
Budget
Actual
(Negative)
7,900
7,900 $
25576
$ 55324
822692
82,692
721478
10521
165572
16,572
151,911
661
3,801,781
311907,781
3,5891287
2761,448
Capital Outlay:
3,910,000
3,9105000
35303,824
buo, 176
Total expenditures
34,550,218
345656,218
3357225441
9335777
DISTRIBUTIONS:
Local 3.5% tax
8779065
87705
8891,113
129048
Local $.5 bottle charge
117,023
117,023
103,301
(131,722)
Law Enforcement
611,000
505M00
505, 01
-
L cal Mixed d Beverage Surcharge
882,166
882,166
866,852
15,314
Count y and Municipal
1567911247
1,679,247
25079,244
-
Tetal distributions
45166,501
4,060,501
454435511
16,988
Taal expenditures and distributions
38,716,719
38,71 6,719
38,1 65,952
(550,767)
Revenues over (under) expenditures
(2,9795593)
(21,9799593)
1,895,1 5
1,084,448
Other financing sources (uses):
Working capital retained
2,9795593
2,9791,593
-
Revenues over expenditures
and other financing uses $
-
- $
(15895,145)
15084,448
Reconciliation from budgetary basis
(modified x -ual to full accrual:
Reconciling It l s:
Capital Outlay
3303,824
Increase in accrued OPEB Liability
17,492)
Depreciation
(347,401
Total
25938,931
Change in Net Position
$
15043,786
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Detailed Statements of Changes in Net Position
For the Years Ended June 30, 2014 and 2013
New Hanover County
Wilmington
Wrightsville Beach
Carolina Beach
Kure Beach
Retained
Earnings Net Profit
June 30, 2013 Income Distributions
1 ,5 09,05 I
11477,452 $
4,595,169
988)591
2,457,716
4255203
977,104
226,350
37,876
5,434
185576,916
3,123,030
Retained
Earnings Net
June 3, 2012 Income
27.
Retained
Earnings
June 30, 2014
984,587
11,001,916
659,274
41924,486
282,737
216005182
149,032
110549422
2,07950244 1956205702
Profit
Distributions
Retained
Earnings
June 3, 2013
New Hanover County
10,124,576
1,388,033 $
11,003,55
$ 1x,509,051
Wilmington
433293876
958,673
6935380
4,595,169
Wrightsville ville Beach
293505,643
388,197
281,124
2,457,716
Carolina Beach
9203621
203,814
147,331
977,1 4
Kure Beach
36,510
45915
3,549
37,876
$ 17,762,226 $
2,943,632 $
2,1285942
1 8,576,916
NEW HANOVER COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD
(A Component Unit of New Hanover County)
Schedule of Income By Store
For the Year Ended June 30, 2014
523 S. 17th St
2378 C. Beach 1d
523 S. 1 7th St
6730 Wrightsville Ave
Wilmington, NC
Wilmington, NC
Wilmington, NC
W. Beach, NC
Store # 101
Store # 102
Store 103
Store # 104
Percent
Percent
Percent
Percent
of Net
off Net
of Net
of Net
Amount
Sales
Amount
Sales
Amount
Sales
Amount
Sales
OPERATING REVENUE
Liquor sales, regular
S 306,774
S
]MIX]
S
-
4056,781
Mixed beverage
-
-
8,831,029
-
Wine Sales
35095
1,922
-
81032
Total gross sales
309589
1,883,143
8,831,029
4064,813
Deduct taxes on gross sales:
State excise tax
800,579
417P315
1,607,429
9251174
Mixed beverage tax
(Department of revenue)
-
-
803,170
-
M iced beverage tax
Department of Health and Human Services)
-
-
X0,317
-
Rehabilitation tax
12,929
6,96
207992
1,558
Sales tax -wine
202
126
-
525
Total taxes
8135710
4243427
2,5113898
936,257
Net sales
277962159
1 00.00%
12458,716
100,00%
6,319,131
100.00%
3,228,556
1 00.00%
Cost of sales
1,894,170
67.74%
987,608
67.70%
3,777,920
59.79%
2,195,906
68.02%
Grass profit
901,989
32.26%
4713108
32.30%
2,541,211
40.21%
1,032,650
31.98%
OPERATING EXPENSES
Stores
310,165
11.09%
247,790
16.99%
305,313
4.83%
329,588
10.21%
Warehouse and Delivery
33,401
1.19%
17,425
1.19%
75,485
1.19%
38,566
1.19%
Administration
76,735
2.74%
40,032
2.74%
173,416
2.74%
88,601
2.74%
Total operating expenses
420,301
305,247
554,214
456,756
Income from
operations
481,688
17.23%
165,861
11.37%
1,986,997
31.4410
575ffl4
17.84%
NONOPERATING INCOME
Interest income (allocated based
on net sales)
11030
0.04%
537
0.04%
2,328
0.0410
1,189
0.04%
Gain on the disposal of asset (allocated based
on net sates)
5
0.00%
3
0.00%
10
0.00%
6
0.00%
Miscellaneous incorn (allocated
based oil net sales)
590
0.02%
308
0.02%
17334
0.02%
681
0.02%
Profit before distributions
483,313
17.28%
1667709
11.43%
1,990,669
31.50%
5772770
17.90%
Local taxes in ltldod in selling price
106,330
3.80%
55,673
3.82%
931,367
14.7410
118,495
3.67%
Lain Enforcement
51,408
1.84%
26,819
1.84%
116,178
1.84%
59,357
1.84%
Net in conic (loss) before
profit distributiotls
8 3257575
11.64%
847217
5.77% S
943,124
14.9210
399,918
12.39%
28.
1020 N. Lake Plc Blvd
3544 S. College Ind
5410 Market St.
6015 Castle Hayne lid
8122 Market St
C, Beach,
NC
Wilmington, NC
Wilmington, NC
Castle Hayne, NC
Wilmington, N
Store # 105
Store # 106
Store # 108
Storc # 109
Store #
11 0
Total
Percent
Percent
Percent
Percent
Percent
Percent
ofNet
of Net
of Net
of Net
off'Net
of Net
Amount
Sales
Amount
Sales
Amount
Sales
Amount
Sales
Amount
Sales
Amount
Sales
3,038,410
S 4,342,821
42740,639
S 1,111,154
S 2,808,413
25,686,213
151641719
-
-
-
5261282
10,522,030
10,250
7,232
8,199
1,757
69112
46,599
45213,379
4,350,053
4,748,838
1,112,911
3,3405807
361254,842
883,327
965,352
1,0531765
246,570
721,471
796209982
11 41125
-
-
-
45,871
963,166
111413
-
-
-
41587
96,317
123184
12,737
1 4,165
4,013
8,747
103,301
670
473
536
115
402
3,49
1,02 1,719
978,562
1,068,466
250,698
7815078
8,786,815
3,191,660
1 00.00%
3,371,491
1 00.00%
300,372
1 00.00%
862,213
1 00.00%
2,5595729
100.00%
27,468,027
1 00.00%
2,097M55
65.70%
25293,487
68.03%
2,50 11816
67.98%
584,326
67.77%
1 ,710,227
66.81%
189042,515
65.69%
1,09405
34.30%
1,078M04
31.97%
1,178,556
32.02%
2771887
32.23%
849,502
99425,512
34.31%
376,742
11,80%
383,202
11.37%
3857614
10,48%
228,231
26.47%
305,613
11.94%
2,872,258
10.46%
38,126
1.19%
40,274
1.19%
43,964
1.19%
1 x,299
1.19%
30,577
1.19%
3285117
1.19%
87,589
2.74%
92,524
2.74%
101,000
2.74%
23,662
2.74%
70,247
2.74%
753,805
2.74%
5027456
516,0 0
530,578
2627192
406,437
33954,180
5923149
18.55%
5623004
16,67%
647,978
17.61%
151695
1,82%
443,065
17-31%
5,471,332
19.92%
1,176
0.04%
1,241
0.04%
1,356
0.04%
318
0.04%
943
0.04%
IM 18
0.04%
6
0.00%
6
0.00%
7
0.00%
2
0.00%
5
0.00%
50
0.00%
674
0.02%
711
0.02%
777
0.02%
182
0.02%
540
0.02%
5,797
0.02%
594,005
l&61%
563,962
16.73%
6505118
17.66%
16,197
1.88%
4447553
17.37%
5,487,297
19.98%
217,952
6.83%
125,361
3.72%
1377104
3,73%
32,779
3.80%
134,205
5.24%
1,859,266
6.77%
58,678
1.84%
61,985
1.84%
67,664
1.84%
15,851
1.84%
47,061
1.84%
5052001
1.84%
317,375
9.94%
S 376,616
11.17% S
4457350
12.10%
S (32,433)
- 3.76%
S, 263,287
10.2910
31123M30
11.37%