Fiscal Year 2023 ACFR (PDF)

Exactly as extracted, unformatted — for checking against the original. The readable version is easier to read.

THE COUNTY COMMISSIONERS OF
QUEEN ANNE’S COUNTY, MARYLAND
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
JUNE 30, 2023

QUEEN ANNE'S COUNTY, MARYLAND
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 5 - 9
Certificate of Achievement for Excellence in Financial Reporting 10
Organization Chart 11
Certain Elected and Other Officials 12
FINANCIAL SECTION 13
Independent Auditor's Report 14 - 17
Management's Discussion and Analysis (required supplementary information) 18 - 32
BASIC FINANCIAL STATEMENTS 33
Government-Wide Financial Statements
Statement of Net Position 34 - 35
Statement of Activities 36 - 37
Governmental Fund Financial Statements
Balance Sheet 38
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 41
Enterprise Fund Financial Statements
Statement of Net Position 42 - 43
Statement of Revenues, Expenses, and Changes in Net Position 44 - 45
Statement of Cash Flows 46 - 47
Fiduciary Fund Statements
Statement of Fiduciary Net Position 48
Statement of Changes in Fiduciary Net Position 49
Notes to Financial Statements 50 - 124
REQUIRED SUPPLEMENTARY INFORMATION 125
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual General Fund 126 - 128
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual Grants Fund 129
Maryland State Retirement and Pensions Systems
Schedule of the Proportionate Share of the Net Pension Liability
and Schedule of Contributions 130
Actuarial Assumptions - Pension Plan 131
Other Post-Employment Benefits (OPEB) Trust
Schedule of Changes in the Net OPEB Liability and Schedule of Actual
Employer Contribution as a Percentage of Covered-Employee Payroll 132
Actuarial Assumptions - OPEB Plan 133
Length of Service Awards Program (LOSAP)
Schedule of Changes in the Net LOSAP Liability 134
Notes to the Required Supplemental Information (LOSAP) 135
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QUEEN ANNE'S COUNTY, MARYLAND
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
(CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
OTHER SUPPLEMENTARY INFORMATION 136
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 137
Non-Major Governmental Funds 138 - 141
Combining Balance Sheet 142 - 145
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 146 - 149
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budgetary Basis 150 - 156
Non-Major Enterprise Funds 157 - 158
Combining Statement of Net Position 159
Combining Statement of Revenues, Expenses, and Changes in Net Position 160
Combining Statement of Cash Flows 161
Fiduciary Funds 162
Custodial Funds 163
Statement of Fiduciary Net Position 164
Statement of Changes in Fiduciary Net Position 165
Community Partnerships for Children 166
Community Partnerships for Children Special Revenue Fund
Combining Balance Sheets - By Grantor 167
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 168 - 171
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budgetary Basis 172 - 173
STATISTICAL SECTION (UNAUDITED) 174 - 175
Table
1 Net Position by Component - Government-Wide 176 - 177
2a Changes in Net Position - Government-Wide 178 - 181
2b General Tax Revenues - Governmental Activities 182
3 Fund Balances - Governmental Funds 183
4 Changes in Fund Balances - Governmental Funds 184 - 185
5 Assessed Value of Taxable and Exempt Property 186 - 187
6a Real Property Tax Rates - County Direct Rate 188
6b Real Property Tax Rates - County Special Taxing Districts 189
6c Real Property Tax Rates - Overlapping Governments - Towns 190 - 191
7 Ten Highest Commercial Property Taxpayers 192
8 Property Tax Levies and Collections 193
9 Ratios of Outstanding Debt by Type 194
10 Ratios of General Bonded Debt Outstanding 195
11 Computation of Net Direct and Overlapping Debt 196 - 197
12a Computation of Legal Debt Margin 198 - 199
12b Computation of Local Debt Limit 200 - 201
13 Principal Employers 202
14 Demographic Statistics 203
15 County Government Employees - Full-Time Equivalents 204
16 County Government Employees - Full-Time Only by Function 205
17 Operating Indicators by Function 206
18 Capital Asset Statistics by Function 207
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I S
NTRODUCTORY ECTION
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Queen O F F I C E O F B U D G E T A N D FINANCE
The Liberty Building
Anne’s
107 North Liberty Street
Centreville, Maryland 21617
County
Telephone: (410) 758-4064
Fax: (410) 758-3036
C ounty Commissioners:
James J. Moran, At Large
County Administrator: Todd R. Mohn
Jack N. Wilson, Jr., District 1
J . Patrick McLaughlin, District 2
Director, Budget & Finance: Jeffrey A. Rank
P hilip L. Dumenil, District 3
Christopher M. Corchiarino, District 4
February 29, 2024
The Board of County Commissioners and
The Citizens of Queen Anne’s County, Maryland
FORMAL TRANSMITTAL OF THE ANNUAL COMPREHNSIVE FINANCIAL REPORT (ACFR)
State law requires that all general-purpose governments publish a complete set of financial statements presented in conformity
with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing
standards generally accepted in the United States of America by a firm of licensed certified public accountants. Pursuant to that
requirement, we hereby issue the annual comprehensive financial report of Queen Anne’s County, Maryland for the fiscal year
ended June 30, 2023.
This report consists of management’s representations concerning the finances of Queen Anne’s County. Consequently,
management assumes full responsibility for the completeness and reliability of all of the information presented in the report. To
provide a reasonable basis for making these representations, the management of Queen Anne’s County has established a
comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and
to compile sufficient reliable information for the preparation of Queen Anne’s County’s financial statements in conformity with
Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits,
Queen Anne’s County’s comprehensive framework of internal controls has been designed to provide a reasonable, rather than
absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Queen Anne’s County’s financial statements have been audited by UHY LLP, a firm of licensed certified public accountants.
The goal of the independent audit is to provide reasonable assurance that the financial statements of Queen Anne’s County, for
the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involves examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that Queen Anne’s
County’s financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The
independent auditors’ report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of Queen Anne’s County is part of a broader, federally mandated, “Single Audit”
designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the
auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls
and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in Queen Anne’s County’s separately issued Single Audit report.
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GAAP requires that management provide a narrative introduction, overview, and analysis, entitled Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Queen Anne’s County’s MD&A can be found immediately following the report of the independent auditor.
PROFILE OF THE GOVERNMENT
Queen Anne’s County is situated on the Eastern Shore of Maryland. It is bordered to the north by Kent County, to the east by the
State of Delaware, to the south by Caroline and Talbot counties, and to the west by the Chesapeake Bay. Access to the Western
Shore of Maryland is provided by the Chesapeake Bay Bridge. The County is 373 square miles in area and has approximately
51,711 citizens. The County seat is located in Centreville. The County Commissioners of Queen Anne’s County are empowered
to levy a property tax on both real and personal properties located within its boundaries.
Queen Anne’s County was formed in 1706 and is governed by a five-member Board of County Commissioners. County code
provides that one Commissioner be elected purely at large; the remaining four Commissioners must reside in specific districts,
but are elected at large. The Commissioners operate under Maryland’s Code Home Rule form of government. Both the executive
and legislative functions of the County are vested with the Board of County Commissioners.
Queen Anne’s County provides a full range of services including public safety (police, volunteer fire protection, emergency
services, detention center, and animal control), highways and streets, solid waste, planning and zoning, economic development,
culture and recreation, education, libraries, and general administrative services. In conjunction with the State, the County also
operates services related to general community health and social services. In addition, the County operates a water and wastewater
utility, an airport, a golf course, and public landings and marinas.
BUDGETARY CONTROLS
The annual budget serves as the foundation for the County’s financial and budgetary controls to ensure compliance with legal
provisions embodied in the annual appropriation resolution approved by the County Commissioners. The County budget is
comprised of the budget message, current revenue and expense budgets and the capital budget and capital program. Activities of
the general fund, certain special revenue funds, and the enterprise funds are included in the current budget.
The current operating budget includes appropriations for the full range of basic services. These services include county
administration, public safety, education, public works, community services, parks, debt and other agencies. The capital budget
includes funds to construct major governmental facilities such as the Detention Center renovation, roads, schools, and water and
sewer infrastructure. Capital projects usually take more than a year to complete, unlike the operating budget which covers only a
year.
The budget process begins each Fall when the County departments receive budget preparation instructions for the capital budget
which is then followed by instructions for the operating budget. The budget preparation is directed by the Director of Budget and
Finance. After a thorough review of the departmental requests, a County Administrator’s proposed budget is submitted to the
County Commissioners in March. The County Commissioners then conduct a series of public hearings and work sessions to
review the proposed budget. After its review, the County Commissioners finalize the budget and set tax rates, fees and charges
needed to generate enough revenue to balance the budget. The budget must be adopted by the County Commissioners on or before
the last day of the month of the fiscal year currently ending, although the Commissioners typically adopt the budget at the end of
May.
The Office of Budget and Finance is responsible for budgetary control. The appropriated budgets are prepared at the fund, function
(e.g., public safety), and department (e.g., Detention Center) level. Expenditures/expenses may not legally exceed appropriations,
based on the level at which they were adopted. For the General Fund, annual expenditure budgets are legally adopted at the
departmental level. For all other Governmental Funds, for which annual budgets are adopted, expenditure budgets are legally
adopted at the fund level. Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year
appropriations at the individual project level.
Department Heads may make transfers of appropriations within a department of up to $10,000 with the approval of the County
Administrator. Transfers of appropriations or appropriation of new revenues in excess of $10,000 require the approval of the
County Commissioners. Budget to actual comparisons are provided in this report for individual governmental funds for which
an appropriated annual budget has been adopted. The budget comparisons for the General Fund are presented as part of the
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Required Supplementary Information portion of this report. For non-major funds with appropriated annual budgets, budget to
actual comparisons are presented in the Supplementary Information subsection of this report.
ECONOMIC OUTLOOK AND CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the broader
perspective of the specific environment within which Queen Anne’s County operates.
The unemployment rate for Queen Anne’s County is typically below the state and national averages, as shown in the chart below.
The June 2023 rate for the County was 1.5%, compared to the state’s rate of 1.7% and the U.S.’s rate of 3.6%. The fiscal year
2023 average rate for the County was 3.7%. The decrease in the unemployment rate for fiscal year 2023 was the result of recovery
from the COVID pandemic.
LOCAL ECONOMY
The local employment base is somewhat limited and centers on several stable manufacturers, as well as the agriculture, maritime,
construction, retail, leisure, and hospitality industries. The three largest employers are governmental units, including the County,
the Board of Education, and Chesapeake College. There is a small, but growing, base of specialty manufacturers. In addition,
the County’s proximity to the Western Shore enables about 60% of the workforce to commute to locations outside the County,
primarily to higher paying jobs in the Baltimore and Washington areas.
Property and income tax revenue increased when comparing current year to prior year for governmental funds. Property taxes
increased in fiscal year 2023 by 2.8% to $78.1 million due to an increase in assessable base. Local income tax is the County’s
other main revenue source. Income tax collections increased by 11.9% in fiscal year 2023, from $71.0 million in fiscal year 2022
to $79.5 million in fiscal year 2023 as a result of increased employment, capital gains and wages.
Recordation tax declined in fiscal year 2023 with a decrease of 12.9% over fiscal year 2022, from $10.2 million in fiscal year
2022 to $8.9 million in fiscal year 2023. The transfer tax revenue also decreased in fiscal year 2023 by 20.3%, from $3.8 million
in fiscal year 2022 to $3.0 million in fiscal year 2023.
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LONG TERM FINANCIAL PLANNING
Rainy Day Fund – Ordinance No. 12-21 was adopted in January 2013 for the purpose of establishing and maintaining a Rainy
Day Fund for contingencies of an emergency nature; requiring annual reports on such fund balance; providing for the
appropriation of such funds to meet emergency needs; and requiring surplus revenues be used to maintain the Rainy Day Fund at
a set minimum amount. Beginning in fiscal year 2017, County Ordinance No. 16-24 changed the minimum amount of the rainy
day fund to 8% (previously 7%) of the following year’s budgeted general fund operating revenues, as recommended by the
Spending Affordability Committee. The County funded the Rainy Day Fund with the required amount of $14,511,971 in fiscal
year 2023.
Revenue Stabilization Fund (Previously “Special Fund”) – Resolution No. 14-05 was adopted in March 2014 for the purpose of
establishing and maintaining a Special Fund to set aside certain general funds of the County for certain unanticipated projects,
initiatives, and other one-time expenses. Resolution No. 16-99 was adopted in December 2016 for the purpose of renaming the
“Special Fund” to the Revenue Stabilization Fund and revising the maximum amount of such fund. The maximum amount of the
Revenue Stabilization Fund shall not exceed 5% of budgeted general fund operating revenues and the transfer to the General Fund
shall only be made after the requirements of the Rainy Day Fund have been met. The County funded the Revenue Stabilization
Fund with $717,872 in fiscal year 2023. The current balance of the Revenue Stabilization Fund is $9,069,982.
Spending Affordability Committee – Ordinance No. 15-11 was adopted in November 2015 for the purpose of establishing a
committee to provide recommendations and projections for the upcoming budget year. Specifically, the Committee is charged to
review in detail the status and projections of revenues and expenditures for the County for the next budget year and subsequent
five years; to review future County revenue levels and consider the impact of economic factors such as changes in personal income
and assessable base growth; and to review future expenditure levels with consideration of County long-term obligations and any
pressure for growth in costs.
The Committee’s recommendations help determine general expenditure guidelines based on projected revenue, and the amount
of new County debt authorization for the upcoming fiscal year. The Committee recommends policy changes primarily regarding
budgeting, debt, and fund balance. This Committee also assesses the County’s ability to repay bond debt, determines debt capacity
using several debt measures, and provides general guidance regarding future capital budgets.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal year 2024, prioritizes capital
expenditures over these years to meet the County’s needs. The six-year program totals $319.6 million and includes: $60.0 million
for various school related projects (includes $23.5 million for Centreville Middle School and $17.5 million for the board
administration building); $59.0 million for Roads Board capital projects (includes $15.2 million for asphalt overlays and $15.0
million for pedestrian bridge crossing US 50/301); $42.0 million for various Sanitary District projects (includes the Southern Kent
Island Sewer service at $20.0 million); $34.4 million for the Detention Center renovation; $30.0 million for Parks (includes $10.6
million for trail maintenance/amenities and $5.4 million for phase two of the Cross County Connector project); $22.3 million for
Administration and General Services (includes $9.0 million for the Historic Courthouse); $11.5 million for Department of
Emergency Services; and $10.1 million for the Recreation Center.
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were recognized by three major rating
agencies. Fitch Rating Service issued a AAA bond rating, Moody’s issued a rating of Aa1, and Standard & Poor’s also issued a
AAA rating.
Debt Management Policy – In calendar year 2013, the County adopted Resolution 13-04, which revised the County’s Local Debt
Policy. In accordance with this policy, the Director of Budget and Finance, is responsible for following certain procedures to
ensure that debt limits established by the Policy are not exceeded. A key element of the Policy is that prior to the issuance of any
new bonded indebtedness, the Director must certify that existing and new General Obligation Debt will not exceed (1) 2.5% of
the total taxable assessable base and (2) $3,000 per capita. This policy also stipulates that although there is some flexibility as to
the acceptable percentage of debt service to general fund expenditures, and no absolute limit has been established by the rating
agencies or the Government Finance Officers Association, anything above 12% of total general fund expenditures would be a
cause to carefully monitor debt service. In addition to the debt management policy, the Spending Affordability Committee
recommended that the limit of debt service to general fund expenditures should be limited to 10% and the County Commissioners
have adopted that as a limit.
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For fiscal year 2023, Queen Anne’s County general obligation debt was 1.44% of the total taxable assessable base, and the per
capita debt measurement was $2,600. The debt service was 8.4% of the general fund expenditures for the year. All thresholds are
well below the policy limits.
Fund Balance Policy – Resolution 12-21 was adopted in calendar year 2012 for the purpose of establishing criteria in which year
end fund balances can be used. There are five purposes for which using fund balance is permitted: (1) paygo for items/projects
in the County Capital Improvement Plan, (2) as a supplement to the Rainy Day Fund if it is underfunded, (3) to pay down existing
debt, (4) reserved for future non-operating expenses related to fiscal emergencies, and (5) as one time non-recurring expenditures
of capital or non-capital items.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to Queen Anne’s County, Maryland for its annual comprehensive financial report (ACFR)
for the fiscal year ended June 30, 2022. The Certificate of Achievement is a prestigious national award that recognizes
conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a
Certificate of Achievement, the County must publish an easily readable and efficiently organized annual comprehensive financial
report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Queen Anne’s County, Maryland has received a Certificate
of Achievement for the last twenty-four consecutive years (fiscal years 1999-2022). We believe our current annual comprehensive
financial report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA
to determine its eligibility for another certificate.
The preparation of the annual comprehensive financial report was made possible by the dedicated service of the entire staff of the
finance office. Each member of the department has my sincere appreciation for the contributions made in preparation of this
report. Special recognition is given to members of the Audit Team: Justine Franzen, who is the principal staff member responsible
for preparing the report, Karen Rodgers, Lisa Taylor, and Hayley Effland. Their dedication and professionalism in the preparation
of Queen Anne’s County financial statements has resulted in consistently accurate and transparent financial reporting.
Respectfully submitted,
Jeffrey Rank
Director of Budget and Finance
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10

Queen Anne’s County Government Organizational Chart
Queen Anne’s County Voters
County
State’s Attorney Sheriff’s Office Orphan’s Court Circuit Court
Commissioners
Boards & County County Attorney
Commissions Administrator
County Administration Public Works Parks & Recreation Planning & Zoning Community Services Public Safety
Budget & Finance Detention Center
Engineering Parks Liquor Board Aging
Recreation
Human Resources General Services Planning Housing & Emergency Services
Community
Enterprise Funds
Services  EMS
Property  Marinas &
Economic Zoning / Permits  Communications
Development & Management Landings  Fire Marshal
 Bay Bridge Local  Support Services
Tourism Airport
Management  Special
Roads  Blue Heron Board Operations
Golf Course
- Animal
Information
Control
Technology & Sanitary District - Emergency
Communications Management
 Information
Technology (IT) Solid Waste Department under State law
 GIS – Geographic partially or fully funded by
Information County Appropriations
 QACTV
 Public Information
Departments and
agencies shown to the Board of Education Chesapeake
College
right are not under the
control or supervision of
QAC Free Library Board of Elections
Queen Anne’s County
Government but are
Housing Authority
partially or fully funded by Health Department
County appropriation
under State law. University of MD
Soil Conservation
Service
Extension
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2023
CERTAIN ELECTED OFFICIALS
County Commissioners James J. Moran, At Large
Jack N. Wilson, Jr., District 1
J. Patrick McLaughlin, District 2
Philip L. Dumenil, District 3
Christopher M. Corchiarino, District 4
State’s Attorney Lance G. Richardson, Esq.
Sheriff Raymond G. Hofmann
CERTAIN DEPARTMENT HEADS AND OTHER OFFICIALS
County Administrator Todd R. Mohn
Director of Public Works Alan Quimby, P.E.
Director of Planning and Zoning Amy Moredock
Director of Community Services Catherine R. Willis
Director of Budget and Finance* Nichole Hepfer
Director of IT Brian Riley
Chief Treasury Officer Jeffrey Rank
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
UHY LLP McKennon, Shelton Davenport & Company LLC
Certified Public Accountants & Henn, LLP Towson, Maryland
Salisbury, Maryland Baltimore, Maryland
*Effective 7/1/23 Jeffrey Rank replaced Nichole Hepfer as Director of Budget and Finance
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F S
INANCIAL ECTION
13

INDEPENDENT AUDITORS’ REPORT
County Commissioners of
Queen Anne’s County
Centreville, Maryland
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of Queen Anne’s County, Maryland (the “County”) as of and for the year
ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the
County’s basic financial statements as listed in the table of contents.
In our opinion, 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 aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the County, as of June 30, 2023, and the respective changes in financial position, and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
We did not audit the financial statements of the Queen Anne’s County Free Library (the “Library”) as of
June 30, 2023, and the respective changes in financial position, and where applicable, cash flows thereof
for the year then ended. Those statements were audited by other auditors whose report has been
furnished to us, and our opinions, insofar as it relates to the amounts included for the Library is based
solely on the report of the other auditors.
Basis for Opinions
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. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the County, and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the County adopted new accounting guidance GASB
No. 96, Subscription-Based Information Technology Arrangements. Additionally, as discussed in Note 22
to the financial statements, The County recorded prior period restatement entries related to lease
receivables, accounts receivables, and deferred inflows; for facts that existed at the time the previous
financial statements were prepared. Our opinion is not modified with respect to these matters.
An Independent Member of Urbach Hacker Young International Limited
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Responsibilities of Management for the Financial Statements
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, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit 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 County’s internal control. Accordingly, no such opinion
is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the County’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information (RSI), as listed in the table of contents,
be presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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 RSI 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’s 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County’s basic financial statements. The other supplementary information (OSI), as listed
in the table of contents, is presented for purposes of additional analysis and is not a required part of the
basic financial statements. The OSI, as listed in the table of contents is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements or to 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 OSI, as listed in the table of contents, is fairly stated, in all material respects in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
16

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 29,
2024, on our consideration of the County’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely 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
effectiveness of the County’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
County’s internal control over financial reporting and compliance.
Salisbury, Maryland
February 29, 2024
17

Management’s Discussion and Analysis
Introduction
This section of the Annual Comprehensive Financial Report of Queen Anne’s County, Maryland (the County)
presents a narrative overview and analysis of the financial activities of Queen Anne’s County Government for
the fiscal year ended June 30, 2023. We encourage readers to consider the discussion and analysis along with
the other information in this report, including the transmittal letter, basic financial statements, and the notes to
the financial statements.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Queen Anne’s County Government’s basic
financial statements. The County’s basic financial statements are comprised of three components:
Government-Wide Financial Statements
Fund Financial Statements
Notes to the Financial Statements
This report also contains other required and non-required supplementary information in addition to the basic
financial statements themselves.
Government-Wide financial statements: The government-wide financial statements are designed to provide
readers with a broad overview of Queen Anne’s County Government’s finances, in a manner comparable to a
private sector business.
The statement of net position presents information on all of Queen Anne’s County Government’s assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position and condition of Queen Anne’s County
Government is improving or declining.
The statement of activities presents information showing how the government’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in
this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes
and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of Queen Anne’s County Government
that are principally supported by taxes and intergovernmental revenue (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities).
The governmental activities of Queen Anne’s County Government include general government, public safety,
public works, health, social services, education, library, conservation of natural resources, and economic and
community development. The business-type activities of Queen Anne’s County Government include water and
sewer services, an airport, a golf course, and public landings and marinas.
The government-wide financial statements include not only Queen Anne’s County Government itself (known as
the primary government), but also legally separate component units. Queen Anne’s County Government has the
following discretely presented component units: Queen Anne’s County Board of Education and the Queen
Anne’s County Free Library. Financial information for these component units is reported separately from the
financial information presented for the primary government itself. The government-wide financial statements
can be found in the basic financial statements section of this report.
18

Fund Financial Statements: A fund is a group of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. Queen Anne’s County Government, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of Queen Anne’s County Government can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds. Fund financial statements can be found throughout
this report, as listed in the table of contents.
Governmental funds: Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near term inflows and outflows of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions. Both the balance sheet and
the statement of revenues, expenditures, and changes in fund balances for governmental funds provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities. These two
reconciliations begin with governmental fund financial data; describe all transactions that are added or subtracted
to yield governmental activities; and end with governmental activities financial data. These reconciliations can
be found within this report, as listed in the table of contents.
Queen Anne’s County maintains three types of governmental funds: the general fund, a variety of special
revenue funds, and five capital project funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances
for all governmental funds. Fund type is identified for each fund.
Queen Anne’s County adopts an annual appropriated budget for its general fund; school, fire, and parks impact
fee capital projects funds; and the following special revenue funds: department of aging, housing and community
services, grants fund, economic development incentive, roads operating fund, community partnerships for
children, law library, inmate welfare, agricultural transfer, rural legacy, dredging special assessments, and Kent
Narrows. A budgetary comparison statement has been provided for each of these funds, which can be found
within this report, as listed in the table of contents.
Proprietary funds: Queen Anne’s County maintains enterprise funds to report the same functions presented as
business-type activities in the government-wide financial statements. Queen Anne’s County Government uses
enterprise funds to account for its water and sewer services, airport, golf course, and public landings and marinas.
The basic proprietary fund financial statements can be found within this report, as listed in the table of contents.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support Queen Anne’s County Government’s own programs. The
County acts as a fiduciary for two trust and six custodial funds. The accounting used for fiduciary funds is much
like that used for proprietary funds except that the custodial funds report only assets and liabilities and do not
report net assets or changes therein. The basic fiduciary fund financial statements can be found within this
report, as listed in the table of contents.
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 can be found within this report, as listed in the table of contents.
19

Government-wide Financial Analysis
Statement of Net Position
A summary of government-wide assets, liabilities, and net position is as follows:
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022
Current and Other Assets $ 223,507,249 $ 201,881,441 $ 65,914,665 $ 63,702,006 $ 289,421,914 $ 265,583,447
Capital Assets 195,514,937 190,874,807 136,788,646 129,251,754 332,303,583 320,126,561
Total Assets 419,022,186 392,756,248 202,703,311 192,953,760 621,725,497 585,710,008
Total deferred Outflows of resources 16,533,659 18,706,064 1,445,535 1,651,620 17,979,194 20,357,684
Noncurrent liabilities 205,417,418 216,868,181 46,777,229 45,442,547 252,194,647 262,310,728
Other Liabilities 21,139,189 14,383,748 2,226,209 1,381,610 23,365,398 15,765,358
Total Liabilities 226,556,607 231,251,929 49,003,438 46,824,157 275,560,045 278,076,086
Total deferred Inflows of resources 23,915,715 25,652,222 20,368,980 19,951,605 44,284,695 45,603,827
Net investment in capital assets 122,128,900 118,666,142 99,118,189 93,562,741 221,247,089 212,228,883
Restricted amounts 26,495,556 24,012,709 5,350,538 5,310,698 31,846,094 29,323,407
Unrestricted amounts (deficit) 36,459,067 11,879,310 30,307,701 28,956,179 66,766,768 40,835,489
Total net position $ 185,083,523 $ 154,558,161 $ 134,776,428 $ 127,829,618 $ 319,859,951 $ 282,387,779
The County’s total current and other assets increased by $23.8 million, or 9.0 percent, to $289.4 million. The
County’s total assets and deferred outflows of resources exceeded its total liabilities and deferred inflows of
resources at the close of fiscal year 2023 by $319.9 million.
Net position is divided into three categories: net investment in capital assets; restricted amounts; and unrestricted
amounts. By far the largest portion, $221.2 million, of the County’s total net position reflects its investment in
capital assets (e.g. land, buildings, machinery and equipment, vehicles, and infrastructure), less any related and
outstanding debt used to construct or acquire those assets. The County uses these capital assets to provide
services to citizens; consequently, they are not available for future spending. Although the County’s investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to repay the debt
must be provided from other sources since the capital assets themselves cannot be used to liquidate these
liabilities.
It is important to note that, although counties in the State of Maryland issue debt for the construction of schools,
the school buildings are owned by each county’s Board of Education. Ownership reverts to the county
government only if the local Board determines a building is no longer needed for educational purposes.
Therefore, while the County’s financial statements include outstanding debt related to Board of Education capital
assets, those statements do not include the capital assets funded by the debt. Debt outstanding for the Board of
Education amounted to $48.2 million at June 30, 2023. Absent the effect of this relationship, the County would
have reported a positive unrestricted amount of $115.0 million on its government-wide financial statements,
rather than the positive unrestricted net assets of $66.8 million reported herein. For a multi-year view of this
calculation, see the Footnote presented in Table 1 of the Statistical Section.
An additional $31.8 million of the County’s total net position represents resources that are subject to restrictions
on how they may be used. For governmental activities, this amount includes: $15.0 million related to general
government services; $3.0 million for economic/community development; $5.7 million for public safety; and
$2.8 million for conservation of natural resources. For business-type activities, this amount includes $2.6 million
restricted to meet Sanitary District debt covenants; $1.2 million for the Bay Bridge Airport debt service; and
$1.5 million restricted for other purposes for the Bay Bridge Airport.
At the end of the current fiscal year, Queen Anne’s County Government reports positive balances for all three
categories of net position: governmental activities, business-type activities and for the government as a whole.
20

Statement of Activities
The following table summarizes changes in net position for governmental and business-type activities during
the year:
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022
Program revenues:
Charges for services $ 9,065,778 $ 10,490,544 $ 13,436,000 $ 19,228,797 $ 22,501,778 $ 29,719,341
Operating grants and contributions 8,232,618 9,381,209 2,955,567 2,023,287 11,188,185 11,404,496
Capital grants and contributions 6,657,301 7,246,021 4,027,234 3,034,541 10,684,535 10,280,562
General revenues:
Property taxes 78,022,772 76,017,204 - - 78,022,772 76,017,204
Local income tax 83,439,604 78,881,170 - - 83,439,604 78,881,170
Other local taxes
Admission and amusement taxes 248,987 247,533 - - 248,987 247,533
Recordation taxes 8,921,379 10,243,655 - - 8,921,379 10,243,655
Hotel taxes 991,022 849,345 - - 991,022 849,345
County transfer taxes 3,046,615 3,824,021 - - 3,046,615 3,824,021
State Shared Taxes 1,352,592 1,692,747 - - 1,352,592 1,692,747
Investment income 6,448,944 462,588 1,047,564 414,822 7,496,508 877,410
Gain (loss) on sale of capital assets - (1,157,005) 2,561 5,265 2,561 (1,151,740)
Miscellaneous 1,628,246 1,801,868 1,224,908 2,519,132 2,853,154 4,321,000
Total Revenues 208,055,858 199,980,900 22,693,834 27,225,844 230,749,692 227,206,744
Governmental Activities:
General government 21,070,854 20,975,854 - - 21,070,854 20,975,854
Public safety 42,482,230 32,937,936 - - 42,482,230 32,937,936
Public works 19,422,823 15,486,633 - - 19,422,823 15,486,633
Parks & recreation 6,338,014 6,445,776 - - 6,338,014 6,445,776
Health & Social Services 7,219,183 6,631,472 - - 7,219,183 6,631,472
Education & Library 69,770,287 68,957,650 - - 69,770,287 68,957,650
Conservation of natural resources 3,386,538 2,402,429 - - 3,386,538 2,402,429
Economic and Community development 2,798,777 3,012,720 - - 2,798,777 3,012,720
Interest and fiscal charges 4,525,460 4,415,584 - - 4,525,460 4,415,584
Business-type Activities:
Water and sewer - - 13,822,527 12,384,820 13,822,527 12,384,820
Airport - - 1,058,318 1,017,606 1,058,318 1,017,606
Golf course - - 697,824 609,737 697,824 609,737
Public landings and marinas - - 684,685 548,928 684,685 548,928
Total Expenses 177,014,166 161,266,054 16,263,354 14,561,091 193,277,520 175,827,145
Increase in Net Position before Transfers 31,041,692 38,714,846 6,430,480 12,664,753 37,472,172 51,379,599
Transfers in (out) (516,330) (1,188,709) 516,330 1,188,709 - -
Increase in Net Position 30,525,362 37,526,137 6,946,810 13,853,462 37,472,172 51,379,599
Net Position, prior year 154,558,161 117,032,024 127,829,618 113,976,156 282,387,779 231,008,180
Net Position - current year $ 185,083,523 $ 154,558,161 $ 134,776,428 $ 127,829,618 $ 319,859,951 $ 282,387,779
21

Governmental activities:
Revenues for governmental activities were $208.1 million for fiscal year 2023. The following chart depicts
revenues by source for governmental activities:
 Taxes comprise the largest source of County revenue, totaling $176.0 million (84.6 percent) of total
revenue for fiscal year 2023. Of that amount, property and local income tax together yielded $161.5
million (77.6 percent) of all revenue. Each County sets its own property and income tax rates, within
parameters established by the State. For fiscal year 2023, the County’s property tax rate decreased to
$.830 per $100 of assessed value of real property, based on full cash value of that property. The
County’s local income tax rate was set at 3.2 percent, effective January 1, 2012 and thereafter. There is
no local sales tax in the State of Maryland.
 Operating grants and contributions, totaling $8.2 million, reflect grants from Federal and State agencies
that support specific County programs. Programs that benefitted the most were: public safety ($3.6
million or 43.7 percent), health and social services ($3.1 million or 37.2 percent), and
economic/community development ($1.3 million or 15.6 percent).
 Charges for services, totaling $9.1 million, reflect fees charged to County citizens. These primarily
support education and library ($2.2 million or 24.7 percent), general government ($2.0 million or 22.5
percent), public safety ($1.9 million or 21.1 percent), parks and recreation ($1.1 million or 12.2 percent),
and public works ($961 thousand or 10.6 percent).
 Capital grants and contributions, totaling $6.7 million, reflect contributions from Federal and State
agencies, as well as developers. Programs that benefitted the most were: conservation of natural
resources ($2.0 million or 30.2 percent), general government ($1.5 million or 23.3 percent), public
works ($1.1 million or 16.8 percent), and education and library ($980 thousand or 14.7 percent).
22

Expenses for all governmental activities were $177.0 million for fiscal year 2023. The following chart depicts
expenses by function for governmental activities:
Expenses ‐
Governmental Activities
For the Year Ended June 30, 2023
Interest and fiscal
Economic and
charges
Community
2.56%
development
1.58%
Conservation of General government
natural resources 11.9%
1.91%
Public safety
24.00%
Education & Library
39.42%
Public works
10.97%
Health & Social
Parks & recreation
Services
3.58%
4.08%
As noted in the chart above and the table below, by far the County’s largest program and highest priority is
education, with expenses totaling $69.8 million (39.4 percent). The following table summarizes costs and
program-related revenues for the same programs in order of priority, yielding net service costs:
Expenses Program-Related Revenues Net Cost of Services
Net Cost of Governmental Activities 2023 2022 2023 2022 2023 2022
Education and Library $ 69,770,287 $ 68,957,650 $ 3,217,120 $ 4,289,583 $ (66,553,167) $ (64,668,067)
Public safety 42,482,230 32,937,936 5,673,779 5,991,282 (36,808,451) (26,946,654)
Public works 19,422,823 15,486,633 2,090,244 1,142,909 (17,332,579) (14,343,724)
General government 21,070,854 20,975,854 3,836,276 6,540,300 (17,234,578) (14,435,554)
Parks & recreation 6,338,014 6,445,776 1,768,302 3,146,417 (4,569,712) (3,299,359)
Health & Social Services 7,219,183 6,631,472 3,333,514 2,894,945 (3,885,669) (3,736,527)
Conservation of natural resources 3,386,538 2,402,429 2,083,924 1,142,251 (1,302,614) (1,260,178)
Economic and Community development 2,798,777 3,012,720 1,906,414 1,921,581 (892,363) (1,091,139)
Interest and fiscal charges 4,525,460 4,415,584 46,124 48,506 (4,479,336) (4,367,078)
Total $ 177,014,166 $ 161,266,054 $ 23,955,697 $ 27,117,774 $ (153,058,469) $ (134,148,280)
Of the total cost of $177.0 million for governmental activities, $24.0 million (13.5 percent), of those costs were
covered by program-related revenues paid by individuals and external governmental entities. Of these outside
entities, individuals who benefited directly from County programs were charged user fees of $9.1 million, while
governments and other organizations that benefited indirectly from these programs contributed operating grants
of $8.2 million and capital grants of $6.7 million.
County taxpayers paid for most of the remaining $153.1 million in net program costs, through a variety of
County taxes. Net program costs of services provided to the public, in order of net cost, were: $66.6 million
for education and library; $36.8 million for public safety; $17.3 million for public works; $17.2 million for
general government; $4.6 million for parks and recreation; $3.9 million for health and social services; $1.3
million for conservation of natural resources; $892 thousand for economic and community development; and
$4.5 million for interest and fiscal charges. See Changes in Net Position and General Fund Budgetary
Highlights for further details.
23

Changes in net position: Government-wide revenues, less expenses, plus/minus transfers in/out, yield changes
in net position. During fiscal year 2023, governmental activities increased the County’s net position overall by
$30.5 million, compared to an increase of $37.5 million in fiscal year 2022. The following discussion explains
changes in net position relative to the prior fiscal year.
Revenues for governmental activities increased by $8.1 million (4.0 percent). The following key revenues
changed, when compared to the prior fiscal year:
 Income taxes increased by $4.6 million (5.8 percent), from $78.9 million in fiscal year 2022 to $83.4
million in fiscal year 2023. This increase was the result of increased receipts from the State for the
County’s portion of the income tax collections, capital gains and wage increases.
 Property taxes increased by $2.0 million (2.6 percent), from $76.0 million in fiscal year 2022 to $78.0
million in fiscal year 2023 due to an increase in property assessments.
 Charges for services decreased by $1.4 million (13.6 percent), from $10.5 million in fiscal year 2022 to
$9.1 million in fiscal year 2023. Public safety fees decreased by $516 thousand resulting from additional
fees received in fiscal year 2022 for the EMS Supplemental Payment Program Audit which were not
received in fiscal year 2023. Housing fees collected for fee in lieu decreased by $222 thousand and
school impact fees also decreased by $201 thousand which are directly related to housing development.
 County recordation taxes decreased $1.3 million (12.9 percent), from $10.2 million in fiscal year 2022
to $8.9 million in fiscal year 2023. This decrease is a result of increased interest rates, low housing
inventory, and overall decrease in home sales.
 Investment income increased by $6.0 million (1294.1 percent), from $463 thousand in fiscal year 2022
to $6.4 million in fiscal year 2023. This increase was a result of substantially higher than normal interest
rates.
Expenses for governmental activities increased by $15.7 million (9.8 percent). Key positive and negative
expense changes, in order of relative importance, are:
 Public Safety increased by $9.5 million (29.0 percent). $5.6 million of this increase is due to the pension
adjustments for GASB 68. The remaining increase was in various departments throughout the county.
 Public Works increased by $3.9 million (25.4 percent). $2.5 million of this increase was general capital
projects for building of the YMCA, $1.7 million of this increase was roads capital projects in the asphalt
project, which varies due to timing of the road maintenance. The remaining decreases/increases were in
various department throughout the county.
 Conservation of Natural Resources increased by $984 thousand (41.0 percent), due to the increase of
rural legacy easements. Generally, the timing of easements purchased is affected by the evaluation of
the identified land, as well as the availability of State funds.
24

Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $22.7 million, $516 thousand, and $16.3
million, respectively, for fiscal year 2023. The following two charts depict revenues by source and expenses by
service for business-type activities:
Business-type activities increased the County’s net position altogether by $6.9 million in fiscal year 2023, which
is $6.9 million less than the prior year’s increase of $13.9 million. The fiscal year 2023 change in net position
resulted primarily from:
 Operating Revenues before transfers decreased by $4.5 million (16.6 percent), from $27.2 million in
fiscal year 2022 to $22.7 million in fiscal year 2023, for all business-type activities. Charges for services
decreased by $5.8 million mainly due to a decrease in sanitary restricted fund PWA sales. Operating
grants and contributions increased by $932 thousand, mainly due to increased state grant funding in the
Sanitary district. Capital grants and contributions increased by $993 thousand, due to increase in
developer contributions for Sanitary projects.
 Operating Expenses increased by $1.7 million (11.7 percent), from $14.6 million in fiscal year 2022 to
$16.3 million in fiscal year 2023, for all business-type activities. Water and sewer services makes up
the main reason for the increase due to Sanitary District SKI development phase 2.
25

Financial Analysis of the Government’s Funds
As noted earlier, Queen Anne’s County Government uses fund accounting to ensure and demonstrate compliance
with finance related legal requirements. Detailed financial data based on the government’s fund accounting can
be found in the governmental fund statements in this report.
Governmental Funds: The focus of Queen Anne’s County Government’s governmental funds is to provide
information on near term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing Queen Anne’s County Government’s near-term financing requirements. In particular, unassigned fund
balance may serve as a useful measure of a government’s net resources available for spending at the end of a
fiscal year.
As of the end of the current fiscal year, Queen Anne’s County Government’s governmental funds reported
combined ending fund balances of $166.0 million, compared to $154.6 million for the prior year. Approximately
23.8 percent of this total ($39.5 million) constitutes unassigned fund balance, which is available for spending.
The total unassigned fund balance of $39.5 million is comprised of $39.5 million of positive unassigned fund
balance for the general fund.
The nonspendable fund balance of $1.5 million which is not available for spending and includes amounts related
to inventory and prepaid items. Restricted fund balance of $37.6 million (22.7 percent) includes amounts that
can be spent only for specific purposes stipulated by external sources or legal restrictions. Included in the
restricted fund balance is $14.5 million for the rainy day fund.
Committed fund balance of $38.1 million (22.9 percent) represents those amounts that can be used only for the
specific purposes of the government’s highest level of decision-making authority. Included in the committed
fund balance is $9.1 million for the revenue stabilization fund.
The remaining $49.4 million of fund balance (29.7 percent) constitutes assigned fund balances. These amounts
are intended to be used by the government for the specific purposes of each fund.
The General Fund is the chief operating fund of Queen Anne’s County Government. At the end of the current
fiscal year, the General Fund had a total fund balance of $68.8 million, which is an increase of $8.8 million (14.7
percent) from the fiscal year 2022 balance of $59.9 million. Of the $8.8 million increase, local property tax
increased by $2.1 million (2.8 percent) as a result of increased property assessment. Also local income tax
increased $8.5 million (11.9 percent) due to increases in wage rates and capital gains.
Of the total $68.8 million in fund balance, $39.5 million is unassigned, meaning that there are no constraints on
how the funds can be spent. Beginning in fiscal year 2017, County Ordinance No. 16-24 changed the minimum
amount of the rainy day fund to 8.0 percent (previously 7.0 percent) of budgeted general fund operating revenues
as recommended by the Spending Affordability Committee. As a result of that Ordinance, $14.5 million of rainy
day funds are included in the General Fund’s restricted fund balance of $20.0 million for fiscal year 2023. The
remaining fund balance is comprised of $243 thousand in nonspendable, and $9.1 million in committed.
For further explanations of General Fund revenues and expenditures, see the General Fund Budgetary
Highlights section of this MD&A.
The General Capital Projects Fund accounts for all capital projects related to governmental funds, except those
accounted for in the Roads Capital Projects Fund, which is discussed below.
As of June 30, 2023, the General Capital Projects Fund has a total fund balance of $61.3 million, compared to
$58.7 million at the end of the prior fiscal year. The $61.3 million in total fund balance is comprised of $11.4
million in restricted fund balance, mainly for unspent bond proceeds, $5.8 million of fund balance committed
for specific projects, and $44.1 million of assigned fund balance. The increase in General Capital Projects fund
balance resulted from the transfer in from the General Fund, which will be used to fund future capital projects.
26

The Roads Capital Projects Fund accounts for financial resources used for the construction of County Road
infrastructure, as well as other large multi-year projects that relate to capital assets.
As of June 30, 2023, the Roads Capital Projects Fund has a total fund balance of $5.4 million, compared to $6.1
million at the end of the prior fiscal year. Of this total $5.4 million fund balance, $4.5 million has been assigned
to fund ongoing projects, while $909 thousand has been contributed by local developers and is committed to
fund specific infrastructure improvements.
The Grants Fund accounts for activities funded by grants and is included in various governmental functions,
depending on the grant.
As of June 30, 2023, the Grants Fund has a total fund balance $0 due to the constraints of grant funding, all grant
revenue must be expensed within the fiscal year.
Proprietary funds: Queen Anne’s County Government’s enterprise fund statements provide the same type of
information found in the government-wide financial statements, but in more detail. Also, due to/due from other
funds are combined in the government-wide statements and reported as Internal Balances between governmental
and business-type activities, which net to zero.
Total unrestricted net position of the Sanitary District Enterprise Funds at the end of fiscal year 2023 amounted
to $31.2 million, which is an increase of $1.1 million compared to the prior year. Net investment in capital assets
also increased by $4.8 million.
Total net position of the Sanitary District amounted to $110.9 million at the end of fiscal year 2023, which
increased by $5.5 million when compared to the prior year.
The unrestricted net position of the Bay Bridge Airport Enterprise Fund at year end amounted to negative $943
thousand, reflecting a decrease of $244 thousand. The investment in capital assets for the Bay Bridge Airport
increased by $196 thousand in the current fiscal year.
Total net position of the Bay Bridge Airport amounted to $16.1 million at the end of fiscal year 2023, which is
an increase of $433 thousand from the prior year amount of $15.7 million.
A discussion of Enterprise Fund capital assets and long-term debt can be found in those sections presented later
in this MD&A.
General Fund Budgetary Comparisons
The County adopts an operating budget for the General Fund as of July 1 each year and amends that budget
throughout the year in response to actual expenditures. The Schedule of Revenues, Expenditures, and Changes
in Fund Balance – Budget and Actual can be found as part of Required Supplemental Information, which is
located after the Notes. The Schedule reports original and final budgets, as well as the variance between actual
expenditures and final budgets.
Original to Final Budget Comparisons: The final expenditure budget for the General Fund, including transfers
out, totaled $186.6 million. Amendments increased spending authority by $15.2 million during fiscal year 2023,
when compared to the original budget of $171.4 million.
Major components of these expenditure budget increases are as follows:
 Budgeted Transfers Out to General Capital Projects increased by $11 million from the original budget
during the year. There are several capital projects in which the County plans to move aggressively on
and will rely on fund balance available in the General Capital Projects fund to cover a portion of the
costs.
27

 Budgeted Transfers Out to Roads Operating Fund increased by $4.7 million from the original budget,
as roads operating is now a separate fund and was previously accounted for in the general fund.
 Budgeted Transfers Out to the Agricultural Transfer Tax Fund increased by $978 thousand from the
original budget, resulting from additional easements available and purchased during the fiscal year.
Budget to Actual Comparisons: Actual revenues for the General Fund, including other financing sources and
before appropriated fund balance were more than final budgetary estimates by $6.4 million.
Actual expenditures, and other financing uses, were less than final budgetary appropriations by $5.9 million.
The net effect of these two disparities was a positive variance of actual to final budget of $12.3 million.
The most noteworthy differences between final budgeted amounts and actual amounts are summarized as
follows:
Revenues:
 Investment Income revenue was $3.5 million more than the final budget (254.6 percent) due to the
increase in interest rates.
 Local Property Tax revenue was $2.4 million more than the final budget (3.2 percent) due to a higher
than anticipated increase in assessments.
Expenditures:
 Final Budgeted Salaries and Benefits were $47.1 million for the year, while actual costs were $46.4
million. They were underspent at year-end by $797 thousand (1.7 percent). Budgeted salaries and
benefits include reversions of $1.4 million. Absent the budget for reversions, actual costs were $2.2
million less than budget. The savings were recognized in multiple departments due to vacant positions.
 Final Budgeted Other Operating Charges were $139.5 million for the year, while actual costs were
$134.4 million. These costs were lower than budget at year end by $5.0 million (3.6 percent). Operating
Charges include contracted services, supplies, other charges, debt service, and transfers out.
o Transfers Out was underspent by $2.3 million, due to savings realized by Roads ($1.1 million)
the Department of Aging ($890 thousand), Golf Course Enterprise Fund ($175 thousand), and
Housing and Community Services ($107 thousand) which allowed these departments to forgo
this portion of their appropriation.
o Other Operating Expenses were underspent by $1.9 million. Savings were realized in Insurance
($540 thousand), OPEB ($539 thousand), Other Charges ($469 Thousand), and Local
Allocation ($350 thousand). The remaining savings for Other Operating Expenses were spread
throughout the General Fund.
o Contracted Services were underspent by $651 thousand, with the largest savings realized by
Detention Center ($277 thousand), Elections ($274 thousand), and Information Technology
($78 thousand).
o Capital Outlay was underspent by $344 thousand, with the largest savings realized by Non-
Departmental ($135 thousand) and Detention Center ($122 thousand).
28

Capital Assets and Debt Administration
Capital assets: Queen Anne’s County Government’s investment in capital assets for its governmental and
business-type activities as of June 30, 2023 amounted to $332.3 million (net of accumulated depreciation). This
investment in capital assets includes land and land improvements, intangible rights, construction in progress,
buildings, improvements other than buildings, infrastructure, autos, machinery, and equipment. The total
increase in the County’s investment in capital assets for the current fiscal year was $12.2 million or 3.8%.
Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022
Land and Land Improvements $ 86,490,462 $ 86,279,799 $ 13,406,924 $ 13,406,924 $ 99,897,386 $ 99,686,723
Intangible Rights - Easements 821,819 821,819 6,140 6,140 827,959 827,959
Construction in Progress 11,539,664 9,943,879 8,202,979 4,033,099 19,742,643 13,976,978
Buildings 50,303,760 51,766,249 5,244,516 5,506,926 55,548,276 57,273,175
Improvements other than Buildings 15,432,697 12,824,824 9,187,831 7,969,267 24,620,528 20,794,091
Infrastructure 8,252,526 8,462,691 92,068,461 89,512,819 100,320,987 97,975,510
Auto, machinery, and equipment 20,911,398 20,775,546 8,527,421 8,781,241 29,438,819 29,556,787
Right-to-use asset 570,845 - 144,374 35,338 715,219 35,338
Subscription asset 1,191,766 - - - 1,191,766 -
Total $ 195,514,937 $ 190,874,807 $ 136,788,646 $ 129,251,754 $ 332,303,583 $ 320,126,561
Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
o Installation of artificial turf at various parks totaling $3.0 million.
o Replacement of departmental vehicles totaling $2.0 million.
o Equipment replacement totaling $1.8 million.
Noteworthy capital asset events during the current fiscal year for business-type activities included the following:
o Completion of Sanitary district infrastructure projects totaling $5.2 million, of which $4.0 million was
contributed by commercial developers to be maintained by the County.
o Renovation of front nine greens at Blue Heron Golf Course totaling $484 thousand.
Additional information on the County’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had total bonded debt,
loans, OPEB (Other Post-Employment Benefits), net pension liability, LOSAP (Volunteer Fireman Pension Plan
Length of Service Award Program), compensated absence obligations, lease obligations, and subscription
obligations of $252.2 million for its governmental and business-type activities.
The full faith, credit and unlimited taxing power of the County are irrevocably pledged to the levy and collection
of taxes in order to provide for the payment of principal and interest due on the bonded debt.
Of this $252.2 million in debt, $46.8 million is considered to be self-supporting, in that obligations of the
County’s enterprise funds will be funded through charges and assessments related to the operations of those
funds. In addition, the Sanitary District’s Debt Service Fund holds total assets of $2.6 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 12 for restricted assets and
subsequent year debt service obligations.
29

Debt activities are summarized as follows:
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022
Bonds, Notes, and Premiums $ 132,859,793 $ 142,796,926 $ 37,528,938 $ 35,653,564 $ 170,388,731 $ 178,450,490
OPEB 26,810,247 36,268,523 5,854,976 7,052,186 32,665,223 43,320,709
Net Pension Liability 32,570,299 24,007,806 2,690,703 2,176,280 35,261,002 26,184,086
LOSAP Liability 7,757,868 10,267,761 - - 7,757,868 10,267,761
Compensated Absences 3,625,663 3,527,165 558,231 521,292 4,183,894 4,048,457
Lease Liability 614,668 - 144,381 39,225 759,049 39,225
Subscription Liability 1,178,880 - - - 1,178,880 -
Total Noncurrent liabilities $ 205,417,418 $ 216,868,181 $ 46,777,229 $ 45,442,547 $ 252,194,647 $ 262,310,728
During the 2023 fiscal year, the County’s total net debt decreased by $10.1 million (3.9 percent). Of this amount,
governmental debt decreased by $11.5 million (5.3 percent), while business-type debt increased by $1.3 million
(2.9 percent). In fiscal year 2022, the Sanitary District continued borrowing funds through the Maryland Water
Quality Administration for the Southern Kent Island (SKI) project. The total amount borrowed for this project
in fiscal year 2023 was $3.9 million. In addition, the total other post-employment benefit obligations decreased
by $10.7 million, the net pension liability increased by $9.1 million, the LOSAP liability decreased by $2.5
million, and compensated absences increased by $135 thousand. Increases also occurred in both lease ($720
thousand) and subscription liabilities ($1.2 million) due to new GASB standards. Offsetting these increases
and decreases were changes in accruals, plus the County’s repayment of existing debt in accordance with
established repayment schedules for bonds, notes, and capital lease agreements.
Additional information on the County’s long-term debt can be found in Note 9 of this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no more than $8.0
million, beyond any bonded indebtedness of the County. Currently, approximately $7.5 million of this authority
is available. All other debt has been authorized under specific legislation. Additional information on the
computation of the legal debt margin can be found in Table 12 of the Statistical Section of this report.
Economic Factors and Next Year’s Budget and Rates
The following economic factors were considered in preparing Queen Anne’s County Government’s operating
and capital budgets for the 2024 fiscal year:
 Net assessable real property base is projected to increase by 4.5 percent over the previous year, based
on State Assessment Office values used to compute the Constant Yield rate.
 Income tax revenue was projected at $80.3 million for the 2024 budget.
The following are a few of the highlights from the fiscal year 2024 budget:
o OPEB shall continue to be funded in accordance with the approved ten-year plan;
o The Board of Education will be funded above Maintenance of Effort in fiscal year 2024;
o The County’s property tax rates remained the same; and
o The County’s income tax rates remained the same.
30

Requests for information
This financial report is designed to provide a general overview of Queen Anne’s County Government’s finances
for all those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional information should be addressed to the Queen Anne’s County Finance
Office, 107 N. Liberty Street, Centreville, Maryland 21617. This report can also be found on the County’s
website, http://www.qac.org (see Government, Departments, Budget and Finance Accounting section, Link to
2023 Annual Comprehensive Financial Report (ACFR)).
31

32

B F S
ASIC INANCIAL TATEMENTS
33

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
June 30, 2023
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 140,924,891 $ 16,525,429 $ 157,450,320
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 820,384 - 820,384
Accounts and Loans Receivable (Net) 7,307,338 790,241 8,097,579
Special Assessments (Net) 635,230 - 635,230
Lease receivable 1,103,690 1,575,326 2,679,016
Internal Balances 1,229,264 (1,229,264) -
Due from Primary Government - - -
Due from Other Governments 46,200,713 550,013 46,750,726
Inventories 1,274,659 832,461 2,107,120
Prepaid Items 197,921 - 197,921
Endowment Fund - - -
Restricted Assets:
LOSAP Plan Assets 5,334,870 - 5,334,870
Equity in Pooled Cash and Investments 18,478,289 26,467,061 44,945,350
Accounts Receivable (Net) - 3,970,000 3,970,000
Special Assessments Receivable (Net) - 16,433,398 16,433,398
Capital Assets:
Nondepreciable Assets 98,851,945 21,616,043 120,467,988
Depreciable and Amortized Assets, Net 96,662,992 115,172,603 211,835,595
Total Assets 419,022,186 202,703,311 621,725,497
DEFERRED OUTFLOWS OF RESOURCES
OPEB 1,383,530 214,162 1,597,692
Pension Benefits 13,077,386 1,226,656 14,304,042
LOSAP Benefits 1,745,381 - 1,745,381
Deferred Charge on Refunding 327,362 4,717 332,079
Total Deferred Outflows of Resources 16,533,659 1,445,535 17,979,194
LIABILITIES
Accounts Payable and Other Current Liabilities 8,768,008 1,589,937 10,357,945
Accrued Interest Payable 2,141,165 147,093 2,288,258
Due to Component Units 160,929 - 160,929
Due to Other Governmental Agencies 316,132 - 316,132
Unearned Revenue 9,752,955 469,679 10,222,634
Escrow Deposits - 19,500 19,500
Noncurrent Liabilities:
Due within One Year 12,143,635 2,677,662 14,821,297
Due in More than One Year 193,273,783 44,099,567 237,373,350
Total Liabilities 226,556,607 49,003,438 275,560,045
DEFERRED INFLOWS OF RESOURCES
OPEB 14,275,412 1,883,817 16,159,229
Pension Benefits 4,444,722 499,878 4,944,600
LOSAP Benefits 3,223,831 - 3,223,831
Lease receivable 1,068,273 1,550,031 2,618,304
Deferred Inflows related to Refundings 156,231 1,855 158,086
Deferred Assessments 635,230 16,433,399 17,068,629
Deferred Fees 112,016 - 112,016
Total Deferred Inflows of Resources 23,915,715 20,368,980 44,284,695
NET POSITION
Net Investment in Capital Assets 122,128,900 99,118,189 221,247,089
Amounts Restricted for:
General Government 14,985,939 - 14,985,939
Economic/Community Development 3,006,352 - 3,006,352
Public Safety 5,676,785 - 5,676,785
Conservation of Natural Resources 2,825,525 - 2,825,525
Social Services 955 - 955
Debt Service - 3,819,902 3,819,902
Capital Projects - - -
Other Purposes - 1,530,636 1,530,636
Unrestricted Amounts (Deficit) 36,459,067 30,307,701 66,766,768
Total Net Position $ 185,083,523 $ 134,776,428 $ 319,859,951
The accompanying notes to the basic financial statements are an integral part of this statement.
34

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
June 30, 2023
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE
EDUCATION LIBRARY
$ - $ -
15,963,697 1,535,519
- -
368,830 63,854
- -
- -
- -
711,358 -
4,574,932 -
32,572 -
- 32,317
- 111,831
- -
- -
- -
- -
8,763,803 29,850
135,937,425 1,643,020
166,352,617 3,416,391
42,825,323 139,623
1,953,231 -
- -
- -
44,778,554 139,623
13,003,105 108,059
- -
- -
- -
1,595,399 -
- -
306,405 5,735
146,173,581 533,463
161,078,490 647,257
141,386,258 261,690
497,894 -
- -
- -
- -
- -
- 5,000
141,884,152 266,690
143,531,227 1,664,533
- -
- -
- -
- -
- -
- -
81,005 -
1,968,569 12,904
( 237,412,272) 964,630
$ ( 91,831,471) $ 2,642,067
The accompanying notes to the basic financial statements are an integral part of this statement.
35

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 21,070,854 $ 2 ,037,088 $ 249,863 $ 1,549,325 $ 3,836,276
Public Safety 42,482,230 1 ,908,036 3,601,321 164,422 5,673,779
Public Works 19,422,823 9 61,563 9,070 1,119,611 2,090,244
Parks & Recreation 6,338,014 1 ,101,729 25,681 640,892 1,768,302
Health and social services 7,219,183 7 7,736 3,060,269 195,509 3,333,514
Education and Library 69,770,287 2 ,237,364 - 979,756 3,217,120
Conservation of Natural Resources 3,386,538 7 6,138 - 2,007,786 2,083,924
Economic/Community Development 2,798,777 6 20,000 1,286,414 - 1,906,414
Interest and Fiscal Charges 4,525,460 4 6,124 - - 46,124
Total Governmental Activities 177,014,166 9 ,065,778 8,232,618 6,657,301 23,955,697
Business-type Activities
Water and Sewer 13,822,527 1 2,330,275 1,467,662 4,027,234 17,825,171
Airport 1,058,318 2 2,655 741,939 - 764,594
Golf Course 697,824 6 17,340 - - 617,340
Public Landings and Marinas 684,685 4 65,730 745,966 - 1,211,696
Total Business-type Activities 16,263,354 1 3,436,000 2,955,567 4,027,234 20,418,801
Total Primary Government $ 193,277,520 $ 2 2,501,778 $ 11,188,185 $ 10,684,535 $ 44,374,498
COMPONENT UNITS
Board of Education $ 147,053,054 $ 1 ,486,602 $ 35,519,706 $ 2,003,685 $ 39,009,993
Free Library 3,253,523 1 9,335 1,020,717 - 1,040,052
Total Component Units $ 150,306,577 $ 1 ,505,937 $ 36,540,423 $ 2,003,685 $ 40,050,045
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
State Shared Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Gain (loss) on Disposal of Capital Assets
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year, as Restated
Net Position - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
36

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY
$ ( 17,234,578) $ - $ (17,234,578) $ - $ -
( 36,808,451) - (36,808,451) - -
( 17,332,579) - (17,332,579) - -
( 4,569,712) - (4,569,712) - -
( 3,885,669) - (3,885,669) - -
( 66,553,167) - (66,553,167) - -
( 1,302,614) - (1,302,614) - -
( 892,363) - (892,363) - -
( 4,479,336) - (4,479,336) - -
( 153,058,469) - (153,058,469) - -
- 4,002,644 4,002,644 - -
- (293,724) (293,724) - -
- (80,484) (80,484) - -
- 527,011 527,011 - -
- 4,155,447 4,155,447 - -
$ ( 153,058,469) $ 4,155,447 $ (148,903,022) $ - $ -
$ - $ - $ - $ (108,043,061) $ -
- - - - (2,213,471)
- - - (108,043,061) (2,213,471)
78,022,772 - 78,022,772 - -
83,439,604 - 83,439,604 - -
248,987 - 248,987 - -
8,921,379 - 8,921,379 - -
991,022 - 991,022 - -
3,046,615 - 3,046,615 - -
1,352,592 - 1,352,592 - -
- - - 9 5,195,250 2,513,415
6,448,944 1,047,564 7,496,508 3 25,742 36,159
- 2,561 2,561 - -
1,628,246 1,224,908 2,853,154 3 ,919 2,874
( 516,330) 516,330 - - -
183,583,831 2,791,363 186,375,194 9 5,524,911 2,552,448
30,525,362 6,946,810 37,472,172 (12,518,150) 338,977
154,558,161 127,829,618 282,387,779 (79,313,321) 2,303,090
$ 185,083,523 $ 134,776,428 $ 319,859,951 $ (91,831,471) $ 2,642,067
The accompanying notes to the basic financial statements are an integral part of this statement.
37

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2023
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GRANTS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUND FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 60,780,819 $ 42,150,824 $ 5,603,602 $ 8,301,067 $ 24,088,579 $ 140,924,891
Prepaid Items 197,921 - - - - 197,921
Receivables:
Taxes Receivable (Net) 820,384 - - - - 820,384
Accounts Receivable (Net) 169,745 746,178 - 1 2,371 8 9,381 1,017,675
Lease Receivable 1,103,690 - - - - 1,103,690
Loans Receivable (Net) - - - - 6,289,663 6,289,663
Special Assessments (Net) - - 2 7,265 - 607,965 635,230
Due from Other Governments 40,600,614 521,298 - 698,605 1,292,032 43,112,549
Due from Other Funds 688,090 935,217 - - - 1,623,307
Inventory - - - - 1,274,659 1,274,659
Restricted:
Restricted LOSAP Plan Assets 5,334,870 - - - - 5,334,870
Restricted Equity in Pooled Cash - 18,478,289 - - - 18,478,289
Total Assets $ 109,696,133 $ 62,831,806 $ 5,630,867 $ 9,012,043 $ 33,642,279 $ 220,813,128
LIABILITIES
Accrued Liabilities $ 5,872,537 $ 1,336,322 $ 168,640 $ 115,230 $ 928,915 $ 8,421,644
Due to Other Funds - - - - 394,043 394,043
Due to Component Units - 160,929 - - - 160,929
Due to Other Governmental Agencies - - - - 316,132 316,132
Unearned Revenue 2 4,559 - - 8,896,813 831,583 9,752,955
Total Liabilities 5,897,096 1,497,251 168,640 9,012,043 2,470,673 19,045,703
DEFERRED INFLOWS OF RESOURCES
Unavailable Income Taxes 33,778,297 - - - - 33,778,297
Unavailable Property Taxes 148,708 - - - - 148,708
Unavailable Benefit Assessments - - 2 7,265 - 607,965 635,230
Unavailable Fees - - - - 112,016 112,016
Unavailable Lease Revenue 1,068,273 - - - - 1,068,273
Total Deferred Inflows 34,995,278 - 2 7,265 - 719,981 35,742,524
FUND BALANCES
Nonspendable 242,876 - - - 1,274,659 1,517,535
Restricted 19,996,347 11,432,678 - - 6,174,749 37,603,774
Committed 9,069,982 5,811,898 909,241 - 22,266,468 38,057,589
Assigned - 44,089,979 4,525,721 - 735,749 49,351,449
Unassigned 39,494,554 - - - - 39,494,554
Total Fund Balances 68,803,759 61,334,555 5,434,962 - 30,451,625 166,024,901
Total Liabilities, Deferred Inflows
and Fund Balances $ 109,696,133 $ 62,831,806 $ 5,630,867 $ 9,012,043 $ 33,642,279 $ 220,813,128
The accompanying notes to the basic financial statements are an integral part of this statement.
38

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
June 30, 2023
Total Fund Balance - Governmental Funds $ 1 66,024,901
Capital assets used in governmental fund activities are not current financial resources
and therefore are not reported in the funds. 195,514,937
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of Chesapeake College.
Although Queen Anne's County will submit the payments to the lender for the bonds, there are five
Counties total that will share the expense of the debt service for the Chesapeake College project.
A receivable is booked in Government-Wide in order to offset the debt recorded on the books related
to the portion of the Chesapeake College project that the other Counties are responsible for. 3,088,164
Accrued interest lease receivable -
Revenues that are deferred in the governmental funds because they do not
provide current financial resources are recognized as revenues in the
Statement of Activities.
Property Taxes deferred in governmental funds 148,708
Income Taxes deferred in governmental funds 33,778,297
Loans receivable deferred in governmental funds -
Long-term liabilities related to governmental fund activities are not due and
payable in the current period and therefore are not reported in the funds.
Liability for Retirement Incentive and Employee Contracts (346,364)
Bonds and Notes Payable (132,859,793)
Accrued Interest Payable - long term debt (2,105,030)
Accrued Interest Payable - leases (7,886)
Accrued Interest Payable - Subscription (28,249)
Lease Liability (614,668)
Subscription Liability (1,178,880)
OPEB (26,810,247)
Net Pension Liability (32,570,299)
Net LOSAP Liability (7,757,868)
Accrued Compensated Absences (3,625,663)
Deferred outflow of resources - OPEB 1,383,530
Deferred outflow of resources - Maryland State Pension 13,077,386
Deferred outflow of resources - LOSAP 1,745,381
Deferred outflow of resources - Refundings 327,362
Deferred inflow of resources - OPEB (14,275,412)
Deferred inflow of resources - Maryland State Pension (4,444,722)
Deferred inflow of resources - LOSAP (3,223,831)
Deferred inflow of resources - Refundings (156,231)
Total Net Position - Governmental Activities $ 185,083,523
The accompanying notes to the basic financial statements are an integral part of this statement.
39

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GRANTS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUND FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 78,012,721 $ - $ - $ - $ 49,615 $ 78,062,336
Local Income Tax 79,467,361 - - - - 79,467,361
Admission and Amusement Taxes 248,987 - - - - 248,987
Recordation Taxes 8,651,034 - - - 270,345 8,921,379
Hotel Taxes 991,022 - - - - 991,022
County Transfer Taxes 3,046,615 - - - - 3,046,615
State Shared Taxes - - - - 1,352,592 1,352,592
Franchise Fee 507,847 - - - - 507,847
Licenses and Permits 838,254 7 0,995 - - - 909,249
Intergovernmental 3,102,287 3,430,796 1,100,307 1,535,667 5,720,866 14,889,923
Charges for Current Services 3,298,630 6 4,885 5 ,763 2 1,782 4,063,135 7,454,195
Fines and Forfeitures 107,379 - - - 6 6,623 174,002
Investment Income 4,808,600 765,760 193,842 - 680,742 6,448,944
Donations 805 - - - 1 9,676 2 0,481
Miscellaneous 1,397,290 5 7,485 - 8 0,029 9 3,442 1,628,246
Total Revenues 184,478,832 4,389,921 1,299,912 1,637,478 12,317,036 204,123,179
EXPENDITURES
Current
General Government 13,059,140 2,061,411 - 7 9,407 3 7,740 15,237,698
Public Safety 35,123,715 1,321,413 - 975,469 714,843 38,135,440
Public Works 7,580,446 3,469,145 3,266,936 1 8,739 5,210,341 19,545,607
Parks & Recreation 5,719,945 329,741 - - - 6,049,686
Health and Social Services 2,657,692 6 9,402 - 218,301 4,964,088 7,909,483
Education and Library 68,492,102 1,265,376 - - - 69,757,478
Conservation of Natural Resources 730,037 2 2,137 - - 2,705,482 3,457,656
Economic/Community Development 992,147 1 0,606 - 382,497 1,631,790 3,017,040
Intergovernmental 653,024 - - - - 653,024
Miscellaneous 8,921,419 - - - - 8,921,419
Capital Outlay - 7,754,593 849,359 - - 8,603,952
Debt Service
Principal 8,648,957 - - - 4 7,816 8,696,773
Debt Issuance Costs - 2 9,851 - - - 2 9,851
Interest and Fiscal Charges 4,525,460 - - - - 4,525,460
Total Expenditures 157,104,084 16,333,675 4,116,295 1,674,413 15,312,100 194,540,567
Excess of Revenues Over (Under) Expenditures 27,374,748 (11,943,754) (2,816,383) (36,935) (2,995,064) 9,582,612
OTHER FINANCING SOURCES (USES)
Issuance of Debt - (1,577,893) 1,577,893 - - -
Proceeds of Capital Asset Disposals 5 1,405 3 71 - - 9 ,744 6 1,520
Insurance Proceeds 6 6,705 - - - 3 6,325 103,030
Leases 638,500 - - - - 638,500
Subscription-Based IT Arrangements 1,503,069 - - - - 1,503,069
Transfers In 2,857,792 16,601,988 550,000 3 6,935 7,935,740 27,982,455
Transfers Out (23,661,847) (470,000) - (240,000) (4,130,063) (28,501,910)
Other Financing Sources (Uses) (18,544,376) 14,554,466 2,127,893 (203,065) 3,851,746 1,786,664
Change in Fund Balances 8,830,372 2,610,712 (688,490) (240,000) 856,682 11,369,276
Fund Balances, July 1, as restated 59,973,387 58,723,843 6,123,452 240,000 29,594,943 154,655,625
Fund Balances, June 30 $ 68,803,759 $ 61,334,555 $ 5,434,962 $ - $ 30,451,625 $ 166,024,901
The accompanying notes to the basic financial statements are an integral part of this statement.
40

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Net change in fund balance - Governmental Funds $ 1 1,369,276
Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated
over the estimated useful lives of those assets through an annual depreciation charge. The differences are as follows:
Current year additions of capital assets 1 2,529,448
Transfer of Capital Asset (to) from Enterprise Funds 3,125
Current year disposals of capital assets ( 777,257)
Depreciation expenses recorded in the Statement of Activities (7,115,186)
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of Chesapeake College. Although Queen Anne's County
will submit the payments to the lender for the bonds, there are five Counties that will share the expense of the debt service for the
Chesapeake College project. A receivable is booked in Government-Wide in order to offset the debt recorded on the books related to the
portion of the Chesapeake College project that the other Counties are responsible for.
Change in bond receivable related to 2014 bonds ( 220,813)
Accrued interest related to lease receivable ( 163)
Revenues that are earned but not collected within sixty days after the end of the fiscal year are not considered to
be "available" to meet current cash requirements and are deferred in the Governmental Funds to the following year. However, these revenues
are recognized in the Statement of Activities. The amount by which this type of deferred inflows increased or (decreased) relative to the
prior year is as follows:
Change in Property Tax Deferred Inflows ( 39,564)
Change in Income Tax Deferred Inflows 3,972,242
Change in Loans receivable deferred ( 37,316)
Liability for retirement incentive
As part of the retirement incentives offered in fiscal year 2018, retirees were given a certain period of health insurance
at no cost, rather than the normal premium. The maximum period of no cost health insurance was five years. The liability for the
benefit offered to the retirees is included in the government-wide statements and adjusted each year until the benefit period is over.
As part of an employee contract of a past employee, the County is responsible for a death benefit of $250,000 plus inflation.
This liability will remain until the payment is made.
Change in liability for the retirement incentive and employee contracts 8,856
Issuance of long-term debt (e.g., bonds, notes, and financing leases) provides current financial resources
to Governmental Funds, while repayment of principal due for long-term debt consumes current resources. In the Statement of Net Position,
issuing debt increases long term liabilities, while repayment reduces those liabilities.
Retirements and repayments made on long term debt 8,999,483
Proceeds of debt -
Bond Premium amortization 937,650
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
resources and are not reported as expenditures in the Governmental Funds.
Change in:
Accrued Interest Payable - long term debt ( 73,904)
Accrued Interest Payable - leases ( 7,886)
Accrued Interest Payable - Subscription ( 28,249)
Lease Liability ( 614,668)
Subscription Liability (1,178,880)
OPEB 9,458,276
Net pension liability - Maryland State Pension (8,562,493)
Net LOSAP Liability 2,509,893
Accrued Compensated Absences ( 98,498)
Deferred outflow of resources - OPEB ( 893,926)
Deferred outflow of resources - Maryland State Pension (1,110,678)
Deferred outflow of resources - LOSAP ( 55,283)
Deferred outflow of resources - Refunding ( 112,518)
Deferred inflow of resources - OPEB (6,663,229)
Deferred inflow of resources - Maryland State Pension 1 1,204,572
Deferred inflow of resources - LOSAP (2,897,313)
Deferred inflow of resources - Refunding 20,365
Change in Net Position - governmental activities $ 3 0,525,362
The accompanying notes to the basic financial statements are an integral part of this statement.
41

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
June 30, 2023
SANITARY DISTRICT
SEWER WATER RESTRICTED DEBT SERVICE
ASSETS OPERATIONS OPERATIONS FUND FUND TOTAL
Current Assets
Unrestricted
Equity in Pooled Cash $ 6,084,163 $ 6,614,287 $ - $ - $ 12,698,450
Accounts Receivable (Net) 487,144 112,237 - - 599,381
Loans Receivable 101,834 - - - 101,834
Due from Other Governments - - - - -
Lease receivable - 1,430,255 - - 1,430,255
Inventories 776,261 - - - 776,261
Restricted
Restricted Equity in Pooled Cash - - 24,763,246 1,703,815 26,467,061
Restricted Accounts Receivable (Net) - - 3,076,750 893,250 3,970,000
Total Current Assets 7,449,402 8,156,779 27,839,996 2,597,065 46,043,242
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 951,442 15,481,956 16,433,398
Total Noncurrent Restricted Assets - - 951,442 15,481,956 16,433,398
Capital and Intangible Assets 146,688,935 38,688,850 - - 185,377,785
Less Accumulated Depreciation and Amortization (59,198,975) (13,820,606) - - (73,019,581)
Total Capital Assets, Net 87,489,960 24,868,244 - - 112,358,204
Total Assets 94,939,362 33,025,023 28,791,438 18,079,021 174,834,844
DEFERRED OUTFLOWS OF RESOURCES
OPEB 157,603 47,098 - - 204,701
Pension Benefits 843,906 250,259 - - 1,094,165
Deferred Charge on Refunding - - - - -
Total Deferred Outflows of Resources 1,001,509 297,357 - - 1,298,866
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 1,148,877 185,980 - - 1,334,857
Accrued Interest Payable 119,874 - - - 119,874
Escrow Deposits - - - - -
Due to Other Funds - - - - -
Unearned Revenue 180,047 - - - 180,047
Current Portion of Compensated Absences 210,714 55,973 - - 266,687
Current Portion of Lease Payable 6 ,397 - - - 6 ,397
Current Portion of Bonds/Notes Payable 2,118,910 - - - 2,118,910
Total Current Liabilities 3,784,819 241,953 - - 4,026,772
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 145,462 38,640 - - 184,102
OPEB 4,042,451 1,318,218 - - 5,360,669
Net Pension Liability 1,871,574 536,699 - - 2,408,273
Lease Payable - - - - -
Bonds/Notes Payable 33,203,666 - - - 33,203,666
Total Noncurrent Liabilities 39,263,153 1,893,557 - - 41,156,710
Total Liabilities 43,047,972 2,135,510 - - 45,183,482
DEFERRED INFLOWS OF RESOURCES
OPEB 1,460,668 340,891 - - 1,801,559
Pension Benefits 334,187 108,380 - - 442,567
Bond Refundings - - - - -
Water and Sewer Assessments - - 951,442 15,481,957 16,433,399
Lease receivable - 1,407,645 - - 1,407,645
Total Deferred Inflows of Resources 1,794,855 1,856,916 951,442 15,481,957 20,085,170
NET POSITION
Net Investment in Capital Assets 52,160,987 24,868,244 - - 77,029,231
Amounts Restricted for:
Debt Service - - - 2,597,064 2,597,064
Other Purposes - - - - -
Unrestricted Amounts (Deficit) (1,062,943) 4,461,710 27,839,996 - 31,238,763
Total Net Position $ 51,098,044 $ 29,329,954 $ 27,839,996 $ 2,597,064 $ 110,865,058
The accompanying notes to the basic financial statements are an integral part of this statement.
42

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
June 30, 2023
(CONTINUED)
TOTAL
PRIMARY
NON-MAJOR GOVERNMENT
BAY BRIDGE ENTERPRISE ENTERPRISE
AIRPORT FUNDS FUNDS
$ 3,006,101 $ 820,878 $ 16,525,429
22,935 66,091 688,407
- - 101,834
471,623 78,390 550,013
145,071 - 1,575,326
48,162 8 ,038 832,461
- - 26,467,061
- - 3,970,000
3,693,892 973,397 50,710,531
- - 16,433,398
- - 16,433,398
22,576,886 11,277,476 219,232,147
(6,861,099) (2,562,821) (82,443,501)
15,715,787 8,714,655 136,788,646
19,409,679 9,688,052 203,932,575
1 ,898 7 ,563 214,162
33,752 98,739 1,226,656
4 ,129 5 88 4 ,717
39,779 106,890 1,445,535
120,334 134,746 1,589,937
17,355 9 ,864 147,093
19,500 - 19,500
935,217 294,047 1,229,264
282,853 6 ,779 469,679
22,687 40,875 330,249
- 27,269 33,666
117,103 77,734 2,313,747
1,515,049 591,314 6,133,135
15,662 28,218 227,982
257,830 236,477 5,854,976
75,698 206,732 2,690,703
- 110,715 110,715
1,307,729 703,796 35,215,191
1,656,919 1,285,938 44,099,567
3,171,968 1,877,252 50,232,702
17,326 64,932 1,883,817
12,649 44,662 499,878
2 94 1 ,561 1 ,855
- - 16,433,399
142,386 - 1,550,031
172,655 111,155 20,368,980
14,294,790 7,794,168 99,118,189
1,222,838 - 3,819,902
1,530,636 - 1,530,636
(943,429) 12,367 30,307,701
$ 16,104,835 $ 7,806,535 $ 134,776,428
The accompanying notes to the basic financial statements are an integral part of this statement.
43

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
SANITARY DISTRICT
SEWER WATER RESTRICTED DEBT SERVICE
OPERATIONS OPERATIONS FUND FUND TOTAL
OPERATING REVENUES
Charges for Services $ 7,091,613 $ 2,952,440 $ 1,424,698 $ 861,524 $ 12,330,275
Intergovernmental 138,262 - 1,032,400 297,000 1,467,662
Material Sales - 19,420 - - 19,420
Miscellaneous Revenues 208,133 254,791 - - 462,924
Total Operating Revenues 7,438,008 3,226,651 2,457,098 1,158,524 14,280,281
OPERATING EXPENSES
Cost of Sales and Services
Collection 3,521,502 - - - 3,521,502
Distribution - 277,203 - - 277,203
Treatment 1,672,325 1,814,857 - - 3,487,182
Shop 231,253 95,477 - - 326,730
Airport - - - - -
Recreation - - - - -
Total Cost of Sales and Services 5,425,080 2,187,537 - - 7,612,617
Administration and Inspection 1,982,662 722,563 - - 2,705,225
OPEB (192,213) (37,844) - - (230,057)
Pension Liability Adjustment (201,389) (77,740) - - (279,129)
Depreciation and amortization 2,782,815 825,202 - - 3,608,017
Total Operating Expenses 9,796,955 3,619,718 - - 13,416,673
Operating Income (Loss) (2,358,947) (393,067) 2,457,098 1,158,524 863,608
NON-OPERATING REVENUES (EXPENSES)
Investment Income 182,064 114,212 616,963 132,273 1,045,512
Interest Expense (405,854) - - - (405,854)
Gain on Disposal of Capital Assets 852 - - - 852
Total Non-Operating Revenues (Expenses) (222,938) 114,212 616,963 132,273 640,510
Income (Loss) Before Contributions and Transfers (2,581,885) (278,855) 3,074,061 1,290,797 1,504,118
Capital Contributions, Fees and Grants 2,559,489 1,467,745 - - 4,027,234
Transfer of Capital Asset (to) from Governmental Fund (2,083) (1,042) - - (3,125)
TRANSFERS
Transfers In 2,319,549 499,065 - 1,046,714 3,865,328
Transfers Out (5,000) (5,000) ( 1,545,779) (2,319,549) (3,875,328)
Net Transfers In (Out) 2,314,549 494,065 ( 1,545,779) (1,272,835) (10,000)
Change in Net Position 2,290,070 1,681,913 1,528,282 17,962 5,518,227
Total Net Position - Beginning of Year, as restated 48,807,974 27,648,041 26,311,714 2,579,102 105,346,831
Total Net Position - End of Year $ 51,098,044 $ 29,329,954 $ 27,839,996 $ 2,597,064 $ 110,865,058
The accompanying notes to the basic financial statements are an integral part of this statement.
44

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
TOTAL
PRIMARY
NON-MAJOR GOVERNMENT
BAY BRIDGE ENTERPRISE ENTERPRISE
AIRPORT FUNDS FUNDS
$ 22,655 $ 1,083,070 $ 13,436,000
741,939 745,966 2,955,567
299,370 50,297 369,087
363,891 29,006 855,821
1,427,855 1,908,339 17,616,475
- - 3,521,502
- - 277,203
- - 3,487,182
- - 326,730
529,571 - 529,571
- 1,205,262 1,205,262
529,571 1,205,262 9,347,450
- - 2,705,225
(2,290) (8,293) (240,640)
(6,698) (33,628) (319,455)
464,183 196,683 4,268,883
984,766 1,360,024 15,761,463
443,089 548,315 1,855,012
2,052 - 1,047,564
(73,552) (22,485) (501,891)
1,709 - 2,561
(69,791) (22,485) 548,234
373,298 525,830 2,403,246
- - 4,027,234
- - (3,125)
59,455 470,000 4,394,783
- - (3,875,328)
59,455 470,000 519,455
432,753 995,830 6,946,810
15,672,082 6,810,705 127,829,618
$ 16,104,835 $ 7,806,535 $ 134,776,428
The accompanying notes to the basic financial statements are an integral part of this statement.
45

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
SANITARY DISTRICT
SEWER WATER RESTRICTED DEBT SERVICE
OPERATIONS OPERATIONS FUND FUND TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 7,012,562 $ 2,930,214 $ 889,948 $ 634,275 $ 11,466,999
Receipts from other operating sources 147,412 94,074 1,032,400 297,000 1,570,886
Payments to suppliers (4,704,068) (2,182,497) - - (6,886,565)
Payments to employees and on behalf of employees (1,959,950) (720,137) - - (2,680,087)
Net Cash Provided by Operating Activities 495,956 121,654 1,922,348 931,275 3,471,233
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 2,319,549 499,065 - 1,046,714 3,865,328
Transfers to other funds (5,000) (5,000) (1,545,779) (2,319,549) (3,875,328)
Principal paid on interfund loans - - - - -
Net Cash Provided (Used) by Noncapital Financing Activities 2,314,549 494,065 (1,545,779) (1,272,835) (10,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Increase in capital grants receivable - - - - -
Proceeds from capital debt 3,946,501 - - - 3,946,501
Proceeds from the disposition of capital assets 8 52 - - - 8 52
Proceeds from lease receivable - 150,112 - - 150,112
Principal paid on capital debt (1,915,181) - - - (1,915,181)
Repayment of lease payable (19,158) - - - (19,158)
Increase in loans receivable (15,213) - - - (15,213)
Deferred Refunding costs on sale of bonds - - - - -
Interest paid on capital debt (404,408) - - - (404,408)
Acquisition and construction of capital assets (5,355,036) (1,029,958) - - (6,384,994)
Net Cash Used by Capital and Related Financing Activities (3,761,643) (879,846) - - (4,641,489)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 182,064 114,212 616,963 132,273 1,045,512
Net Cash Provided by Investing Activities - Investment Income 182,064 114,212 616,963 132,273 1,045,512
Net Increase (Decrease) in Cash and Cash Equivalents (769,074) (149,915) 993,532 (209,287) (134,744)
Balances - Beginning of the year 6,853,237 6,764,202 23,769,714 1,913,102 39,300,255
Balances - End of the year $ 6,084,163 $ 6,614,287 $ 24,763,246 $ 1,703,815 $ 39,165,511
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (2,358,947) $ (393,067) $ 2,457,098 $ 1,158,524 $ 863,608
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization 2,782,815 825,202 - - 3,608,017
Lease revenue - deferred inflow - (160,717) - - (160,717)
(Increase) decrease in assets:
Accounts receivable, net (79,051) (41,646) (534,750) (227,250) (882,697)
Special assessments receivable, net - - (487,491) (202,499) (689,990)
Due from Other Governments - - - - -
Inventories 60,483 - - - 60,483
Increase (decrease) in liabilities:
Accounts payable 660,529 5 ,040 - - 665,569
Escrow deposits - - - - -
Unearned revenue (198,983) - 487,491 202,500 491,008
Compensated absences 22,712 2 ,426 - - 25,138
OPEB (192,213) (37,844) - - (230,057)
Pension Obligation (201,389) (77,740) - - (279,129)
Net Cash Provided (Used) by Operating Activities $ 495,956 $ 121,654 $ 1,922,348 $ 931,275 $ 3,471,233
Noncash investing, capital and financing activities:
Transfer of Capital Asset (to) from Governmental Fund $ (2,083) $ (1,042) $ - $ - $ (3,125)
Lease Inception $ - $ - $ - $ - $ -
Contributed Capital Assets $ 2,559,489 $ 1,467,745 $ - $ - $ 4,027,234
The accompanying notes to the basic financial statements are an integral part of this statement.
46

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
TOTAL
PRIMARY
NON-MAJOR GOVERNMENT
BAY BRIDGE ENTERPRISE ENTERPRISE
AIRPORT FUNDS FUNDS
$ 335,515 $ 1,134,868 $ 12,937,382
1,369,753 1,339,797 4,280,436
(491,869) (1,170,521) (8,548,955)
5 ,058 6 ,742 (2,668,287)
1,218,457 1,310,886 6,000,576
59,455 470,000 4,394,783
- - (3,875,328)
(58,138) (319,904) (378,042)
1 ,317 150,096 141,413
(441,623) - (441,623)
28,908 - 3,975,409
2 ,335 - 3 ,187
17,593 - 167,705
(109,925) (93,363) (2,118,469)
- - (19,158)
- - (15,213)
9 90 (76) 9 14
(74,884) (20,325) (499,617)
(580,611) (673,939) (7,639,544)
(715,594) (787,703) (6,144,786)
2 ,052 - 1,047,564
2 ,052 - 1,047,564
506,232 673,279 1,044,767
2,941,492 147,599 42,389,346
$ 3,447,724 $ 820,878 $ 43,434,113
$ 443,089 $ 548,315 $ 1,855,012
464,183 196,683 4,268,883
(18,930) - (179,647)
12,790 1 ,501 (868,406)
- - (689,990)
- 562,362 562,362
(17,162) (118) 43,203
54,864 34,859 755,292
7 00 - 7 00
282,853 2 ,463 776,324
5 ,058 6 ,743 36,939
(2,290) (8,293) (240,640)
(6,698) (33,629) (319,456)
$ 1,218,457 $ 1,310,886 $ 6,000,576
$ - $ - $ (3,125)
$ - $ 142,748 $ 142,748
$ - $ - $ 4,027,234
The accompanying notes to the basic financial statements are an integral part of this statement.
47

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND CUSTODIAL FUNDS
June 30, 2023
PRIVATE OTHER
PURPOSE POST-
TRUST FUND EMPLOYMENT
TAX SALE BENEFIT CUSTODIAL
DEPOSITS TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 238,164 $ 1,133,388 $ 1,264,570
Investments, at Fair Value
Debt Securities - 4,694,932 -
Fixed Income Fund - 806,002 -
Mutual and Global Funds - 8,451,048 -
International - 2,415,950 -
Total Investments - 16,367,932 -
Total Assets 238,164 17,501,320 1,264,570
LIABILITIES
Accounts Payable and Other Liabilities - 31,768 2,095
Due to Other Governments - - 268,878
Total Liabilities - 31,768 270,973
NET POSITION
Restricted for:
Held in Trust 238,164 - -
Other Post-Employment Benefits - 17,469,552 -
Individuals, Organizations, and other Governments - - 993,597
Total Net Position $ 238,164 $ 17,469,552 $ 993,597
The accompanying notes to the basic financial statements are an integral part of this statement.
48

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
PRIVATE OTHER
PURPOSE POST-
TRUST FUND EMPLOYMENT
TAX SALE BENEFIT CUSTODIAL
DEPOSITS TRUST FUND FUNDS
ADDITIONS
Contributions:
Tax Sale Collections in Excess of Tax Due $ 188,719 $ - $ -
Employers - 4,106,367 -
Members - 421,155 -
Total Contributions 188,719 4,527,522 -
Investment Earnings:
Net Change in the Fair Value of Investments - 1,164,491 -
Interest - 331,159 -
Total Investment Earnings - 1,495,650 -
Less Investment Administrative Expenses - 8,631 -
Net Investment Earnings - 1,487,019 -
Tax Ditch - - 32,139
Zoning Deposits - - 203,354
Tax Collections for Other Governments - - 15,816,966
Motor Vehicle Administration - - 227,190
Escheat - Abandoned Property - - 43,690
Inmate Welfare - - 122,965
Total Additions 188,719 6,014,541 16,446,304
DEDUCTIONS
Distributions to Property Holders 58,411 - -
Claims Paid for Other Post-Employment Benefits - 2,127,522 -
Administrative Expenses - 72,447 -
Distribution of Tax Ditch Funds - - 16,201
Refund of Zoning Deposits - - 96,971
Payments of Tax to Other Governments - - 15,816,966
Payments to Motor Vehicle Administration - - 227,190
Payments of Escheat to Others - - 43,690
Distribution of Inmate Welfare Funds - - 122,288
Total Deductions 58,411 2,199,969 16,323,306
Net Increase in Fiduciary Net Position 130,308 3,814,572 122,998
Net Position-Beginning of Year 107,856 13,654,980 870,599
Net Position-End of Year $ 238,164 $ 17,469,552 $ 993,597
The accompanying notes to the basic financial statements are an integral part of this statement.
49

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 51 - 62
2 Budgets and Budgetary Accounting 62 - 63
3 Cash, Investments and Investment Income 64 - 68
4 Accounts Receivable 69 - 70
5 Unearned Revenue 70
6 Capital Assets 71 - 75
7 Interfund Receivables and Payables 75
8 Interfund Transfers 76
9 Noncurrent Liabilities 77 - 85
10 Leases 85 - 88
11 Subscription-Based Information Technology Arrangements 89
12 Restricted Assets and Liabilities and Fund Balances 90 - 93
13 Risk Management 93
14 Retirement Plans 94 - 102
15 Deferred Compensation Plan 103
16 Other Post-Employment Benefits 103 - 117
17 Volunteer Fireman Pension Plan Length of Service Award Program 118 - 120
18 Deficit Equity Balances 121
19 Commitments, Contingencies, and Subsequent Events 121
20 Joint Venture 122
21 Pollution Remediation Obligations 123
22 Prior Period Restatement 124
50

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the County conform to accounting principles generally accepted in the United States of
America (GAAP) applicable to local government entities. The following is a summary of significant policies.
A. REPORTING ENTITY
Queen Anne’s County, Maryland (the County) was founded in 1706. The County is governed by five Commissioners who are elected
to serve four-year terms. This board assumes responsibilities conferred upon them by the Maryland General Assembly under Code
Home Rule and provides the following services: public safety, public facility/infrastructure maintenance and improvements, sanitation,
health and social services, education, recreation and culture, library, conservation of natural resources, economic and community
development, and general administrative services.
As required by GAAP, these financial statements present the primary government and its component units, which are entities for which
the primary government is considered financially accountable. The decision to include a potential component unit in the financial
reporting entity was made by applying the criteria set forth in the Government Accounting Standards Board (GASB) Statements No. 14
and 39. Blended component units, although separate entities, are in substance, part of the government’s operations. However, each
discretely presented component unit is reported in a separate column in the government-wide financial statements (see note below for
descriptions) to emphasize that it is legally separate from the government.
Blended Component Units
The Queen Anne’s County Sanitary District serves citizens of the government and is governed by a board comprised of the
government’s elected Commissioners. The rates for user charges and bond issuance authorizations are approved by the Board of
Commissioners and the legal liability for the general obligation portion of the District’s debt remains with the government. The
Sanitary District is reported as an enterprise fund.
The Queen Anne’s County Roads Board serves all the citizens of the government and is governed by a board comprised of the
government’s elected Commissioners. All operations of the Roads Board are approved by the Board of Commissioners and the legal
liability for any debt remains with the government. The Roads Operating Fund is included as a governmental fund.
Discretely Presented Component Units
Component units are legally separate entities that are included in the County’s reporting entity because of the significance of their
operating or financial relationships with the County. The criteria for including organizations as component units within the County’s
reporting entity include whether:
 the organization is legally separate
 the County Commissioners appoint a voting majority of the organization’s board
 the County Commissioners have the ability to impose their will on the organization
 the organization has the potential to impose a financial benefit/burden on the County
 the organization is fiscally dependent on the County
Based on the application of these criteria, the following organizations are considered component units of Queen Anne’s County
Government. Their financial data is discretely presented in separate columns in the government-wide financial statements. Both
discretely presented component units have a June 30 year end.
The Board of Education of Queen Anne’s County is a five-member body responsible for the operation of Queen Anne’s County
Schools. Beginning with the November 2008 election, the members were elected by the County voters. The Board of Education is a
component unit of Queen Anne’s County, Maryland by virtue of the Board’s fiscal dependency on the County through the County’s
responsibility for levying taxes, issuing debt, and its budgetary control over the Board of Education.
The Queen Anne’s County Free Library is a component unit of the Queen Anne’s County Government by virtue of the Library’s
fiscal dependency on the County. The County levies taxes and approves the Library’s budget. The Library Board of Trustees governs
the Library. Vacancies on the Board of Trustees are filled by vote of the remaining members of that Board.
51

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Discretely Presented Component Units (continued)
Complete financial statements of the discretely presented component units can be obtained from their respective administrative
offices listed below:
Board of Education of Queen Anne’s County
Queen Anne’s County Free Library
202 Chesterfield Avenue 121 S. Commerce Street
Centreville, MD 21617 Centreville, MD 21617
Joint Venture
The operation of the Midshore Regional Landfill is considered a joint venture of the County. Disclosure of the County’s participation
in this joint venture is presented in Note 20.
Complete financial statements can be obtained at the joint ventures’ administrative office listed below:
Maryland Environmental Service
259 Najoles Road
Millersville, Maryland 21108
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements – The government-wide financial statements report information on all of the non-fiduciary
activities of the Primary Government and its component units. Since, by definition, assets of fiduciary funds are held for the benefit of
a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of the County, these
funds are not incorporated into the government-wide statements.
Interfund activity within the primary government’s governmental activities and business-type activities has been eliminated
from the government-wide statements. Interfund services provided and used are not eliminated in the process of
consolidation. Residual balances between the governmental and business-type categories are presented on the Statement of
Net Position as “Internal balances”.
Governmental activities of the Primary Government, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
Statement of Net Position – This statement is designed to display the financial position of the reporting entity as of year-end.
Governments report all capital assets, including infrastructure, in the government-wide Statement of Net Position and report
depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net position is divided into three categories:
1) net investment in capital assets; 2) restricted amounts; and 3) unrestricted amounts. Net Investment in capital assets consists of
capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any bonds, mortgages, notes, or other
borrowings that are attributable to the acquisition, construction, or improvement of those capital assets. Restricted amounts are assets
for which constraints are placed due to restrictions that are either (1) externally imposed by creditors, grantors, contributors, or laws and
regulations of the government, or (2) imposed by law through constitutional provisions or enabling legislation. Unrestricted amounts
consist of net assets that do not meet the definition of restricted or invested in capital assets.
52

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Statement of Activities – This statement demonstrates the degree to which the direct expenses of a given function for the fiscal year
are offset by program revenues. Therefore, this statement reflects both the gross and net costs per functional category (general
government; public safety; public works; parks and recreation; health; social services; education; library; conservation of natural
resources; and economic/community development) that are otherwise supported by general revenues. Direct expenses (including
depreciation) are those that are clearly identifiable with a specific function. Program revenues include: 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function. The operating grants and
contributions column includes operating-specific and discretionary (either operating or capital) grants, while the capital grants and
contributions column reflects capital-specific grants. Taxes and other items not properly included among program revenues are
reported as general revenues. The County does not allocate indirect expenses.
Fund Financial Statements – Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
In the fund financial statements, financial transactions and accounts of the County are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts
that comprise assets, liabilities, fund balance/net assets, revenues, and expenditures/expenses.
Governmental Fund Budget-to-Actual Comparison Statements – Demonstrating compliance with the legally adopted budget is an
important component of government’s accountability to the public. The County provides a budget-to-actual comparison of the General
Fund and Grants Fund as part of the required supplementary information section located after the Notes to the basic financial
statements. A budget-to-actual comparison is also included for all non-major governmental funds with legally adopted budgets in the
supplementary information section.
The County and many other governments revise their original budgets over the course of the year for a variety of reasons; the County’s
amended budget is reflected in a separate column in the budget-to-actual comparison statements. Variances are calculated based on
final budgets.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Measurement Focus and Basis of Accounting
Full Accrual Basis Financial Statements – The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenue in the year in which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility
requirements imposed by the provider have been met. Capital assets and related depreciation are recorded in these statements, as well
as debt, accrued compensated absences, other post-employment benefits, and other accruals.
Modified Accrual Basis Financial Statements – Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
53

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Revenues are recorded as soon as they are susceptible to accrual (i.e., when they are both measurable and available). Revenues are
considered to be available when they are collectible within the current period, or soon enough thereafter to pay liabilities of the current
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures are recorded only when payment has matured and is due. Similarly, expenditures related to claims, judgments,
compensated absences, and other post-employment benefits are recorded only to the extent that they are expected to be liquidated with
expendable available financial resources. Capital assets, and related depreciation, as well as long-term liabilities are not recorded in
these statements.
In applying the susceptible to accrual concept to income taxes (distributed by the State), property taxes, and inter-governmental
revenues other than grants, the County defines “available” as received within 60 days after year-end.
In the State of Maryland, the State has assumed responsibility for the collection of all income taxes and for distributing those collections
to the respective counties. The counties set their individual tax rates within limits provided by State law. However, collection and
pursuit of delinquent taxes are the responsibility of the State. The County records estimated receivables relating to income taxes when
the underlying income is earned. Amounts not received within 60 days are reported as deferred inflows of resources. At year-end,
deferred revenue relating to income taxes primarily includes the final fiscal year distribution (which is normally received in September
after the fiscal year-end) and amounts related to late filers, delinquent returns and audits, and unallocated withholding, all of which are
not received within the County’s availability period. Most deferred inflows are expected to be received from the State within the next
fiscal year; however, collections related to delinquent returns and audits as well as unallocated withholding may not be remitted to the
County for several years.
In applying the susceptible to accrual concept to operating and capital grants, which are classified with intergovernmental revenues in
the fund financial statements, the County records receivables when the applicable eligibility requirements including time requirements
are met. Related revenues are recognized to the extent that cash is expected to be received within one year of year-end. Resources
received before the eligibility requirements are met are reported as unearned revenue.
Licenses and permits, charges for services, and miscellaneous revenues (except earnings on investments) are generally recorded as
revenues when received in cash during the year. At year-end, receivables are recorded for significant amounts due. If such amounts are
received in cash after year-end within the County’s 60-day availability period, they are recognized as revenue. Benefit assessment
receivables not billed at year end are reported as deferred inflows of resources.
Fiduciary Funds – The County’s trust fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, as is used by proprietary funds. Custodial funds report assets, liabilities, and changes in net position.
Since fiduciary funds are, by their very nature, independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds, as well as fiduciary
funds.
54

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
General Fund – This fund is the general operating fund of the County. It is used to account for all financial resources except
those required or recommended, by GAAP, to be accounted for in another fund.
Capital Projects Funds –
General Capital Projects - This fund accounts for financial resources to be used for the acquisition or construction of
major capital facilities, as well as other large multi-year projects that relate to capital assets, that are financed from
general governmental resources.
Roads Capital Projects - This fund accounts for financial resources to be used for the construction of County Road
infrastructure, as well as other large multi-year projects that relate to capital assets, that are financed from grants
received from State and Federal Governments, Highway User Tax funds, and general governmental resources.
Grants Fund – This special revenue fund accounts for activities funded by grants and is included in various governmental
functions, depending on the grant.
Non-Major Governmental Funds – There are seventeen non-major governmental funds, which are used to account for and
report the proceeds of specific revenue sources. Included in the seventeen non-major governmental funds are fourteen special
revenue funds and three capital project funds.
Major Enterprise Funds - Enterprise Funds are used to account for those activities of the Primary Government that are
financed and operated in a manner similar to private business enterprises in that all costs and expenses, including depreciation,
are recovered primarily or partially through user charges. The Sanitary District Funds are intended to be self-supporting as a
whole, while the Airport is intended to be only partially self-supporting. The County reports the following major enterprise
funds:
Sanitary District -
Sewer Operations - This fund is used to account for the operation of the sewer system serving
approximately 9,300 customers.
Water Operations - This fund is used to account for the operation of the water supply system serving
approximately 5,200 customers.
Restricted Fund - This fund is used to account for the proceeds of sewer and water capacity charges (one-
time allocation fees) and is used to fund capital and debt service expenses.
Debt Service Fund - This fund is used to account for the collection of special benefit assessments, and
financial resources from other sources, to fund debt associated with construction of water and sewer
facilities in accordance with debt covenants.
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that serves small, private
aircraft.
55

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Non-Major Enterprise Funds – Non-major Enterprise Funds account for activities which are commercial in nature and are
primarily or partially intended to be self-supporting. The County has two non-major enterprise funds, neither of which is
meant to be fully self-supporting. These funds include the Golf Course and Public Landings and Marinas.
Fiduciary Funds – Fiduciary Funds are used to report assets held in a trustee or agency capacity for entities other than the
County. The County reports the following fiduciary fund types:
Private-Purpose Trust Fund – This fund accounts for an arrangement under which monies received at tax sale, in
excess of taxes due, are legally held in trust for property owners who have not been located within a legally-defined
time frame.
Other Post-Employment Benefit Trust Fund – This fund only accounts for the Queen Anne’s County portion
of the MACo (Maryland Association of Counties) pooled OPEB Investment Trust Fund.
Custodial Funds - These funds are used to account for deposits that are collected and held on behalf of individuals,
organizations, and other governments. These monies include escrow deposits for tax ditches, zoning deposits, state
and town tax collections, motor vehicle administration deposits, abandoned property, and inmate welfare funds.
Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.
The financial statements of the County have been prepared in conformity with generally accepted accounting principles
(GAAP) as applied to local government units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial principles. The most significant of the
County’s accounting policies are described below.
In the process of aggregating data for the Statement of Net Position and the Statement of Activities, some amounts reported as interfund
activity and balances in the funds should be eliminated or reclassified. As a general rule, the effect of interfund activity has been
eliminated from the government-wide financial statements. The effect of interfund services provided and used between functions has
not been eliminated in the Statement of Activities, since to do so would distort the direct costs and program revenues reported for the
various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating 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 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 non-operating revenues and expenses.
56

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY
1) Cash and Investments
Cash and Cash Equivalents – For Statement of Cash Flows reporting purposes, the County has defined “cash
equivalents” as short-term, highly liquid investments that are both readily convertible to known amounts of cash and so
near their maturity that they present an insignificant risk of changes in value because of changes in interest rates.
Generally, only investments with maturities of three months or less at time of purchase meet this definition. The balance
sheet classification for “cash and cash equivalents” in the Statement of Cash Flows includes the following: “Equity in
pooled cash and investments,” “Cash and cash equivalents,” and “Restricted Equity in pooled cash and investments.”
2) Receivables and Payables
Due To/From Other Funds and Internal Balances – Activity between funds that are representative of
lending/borrowing arrangements outstanding at the end of the year are current and are referred to as “due to/from other
funds.” On the Statement of Net Position, these balances are referred to as “internal balances” and are reported as
positive and negative “assets” that net to zero for the primary government as a whole.
Trade Accounts Receivable – Trade and other receivables are shown net of an allowance for uncollectible accounts.
The allowance for uncollectible accounts is calculated based on historical collection data and, in some cases, specific
account analysis.
3) Inventories, Prepaids, and Other Assets
Inventories consisting of materials, parts and supplies are recorded at cost and determined by weighted average cost
method. Inventories held for resale are reported at lower of cost or market and determined by the first-in, first-out
method. For budgetary purposes, the cost is recorded as an expenditure at the time individual inventory items are
purchased (purchase method). The consumption method is used for financial reporting purposes whereby expense is
recognized as the items are used (consumed). Reported inventories are equally offset by a fund balance reserve.
Inventories in the Proprietary Funds are also recorded using the consumption method.
Prepaid items are payments made to vendors for services that will benefit periods beyond the end of the fiscal year.
4) Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g. roads, bridges, curbs
and gutters, streets and sidewalks, drainage systems, lighting systems, and similar items) are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. The County defines
capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year.
Such assets are valued at cost where historical records are available and at estimated historical cost where no historical
records exist. Donated capital assets, donated works of art and similar items, and capital assets received in a service
concession arrangement are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value or functionality of the asset, or materially
extend asset lives, are not capitalized.
Land and other inexhaustible assets such as intangible property easements and other land usage rights are capitalized but
not depreciated, as these assets are expected to have indefinite useful lives.
57

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
4) Capital Assets (continued)
Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest is capitalized
on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is calculated by
offsetting interest expense, incurred from the date of the borrowing until completion of the project, with interest earned
on invested proceeds over the same period. Capital projects that are under construction and not yet ready for their
intended use at year-end are classified as “construction in progress” (CIP).
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and structures 20 - 50
Improvements other than buildings 15 - 50
Infrastructure 20 - 50
Machinery and equipment 5 - 20
Office furniture, fixtures and equipment 5 - 15
Vehicles 5 – 10
5) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources.
This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that
applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that
applies to a future period(s) and so will not be recognized as an inflow of resources until that time.
6) Other Post-Employment Benefit Obligation (OPEB)
The Queen Anne’s County post-employment benefit plan provides medical insurance benefits to retirees and their
eligible dependents. The Plan’s financial information is prepared based on full accrual accounting. Expenses are
recognized on the accrual basis as retirees’ insurance costs are incurred. Typically, OPEB liabilities are liquidated in the
following governmental funds: the General Fund, Department of Aging, Housing and Community Services, and
Community Partnerships for Children. OPEB liabilities are also liquidated in the following enterprise funds: Sanitary
Sewer, Sanitary Water, Bay Bridge Airport, Golf Course, and Public Landings and Marinas. In both the government-
wide and enterprise funds, the liability for OPEB is adjusted at the end of the fiscal year. Additional details regarding
OPEB can be found in Notes 9 and 16.
58

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
7) Net Pension Liability
The Queen Anne’s County government participates in the Maryland State Retirement and Pension Systems. Beginning
in fiscal year 2015, the County was required to report the net pension liability associated with this system. Typically,
pension liabilities are liquidated in the following governmental funds: the General Fund, Department of Aging, Housing
and Community Services, and Community Partnerships for Children. Pension liabilities are also liquidated in the
following enterprise funds: Sanitary Sewer, Sanitary Water, Bay Bridge Airport, Golf Course, and Public Landings and
Marinas. Additional details regarding retirement benefits can be found in Notes 9 and 14.
8) Volunteer Fireman Pension Plan Length of Service Award Program (LOSAP)
The LOSAP is a single-employer defined benefit length of service award program that covers all volunteer
members of the County’s Fire and EMS Commission. The County began recording the net LOSAP liability
associated with this benefit in fiscal year 2019 with the implementation of Governmental Accounting Standards
Board’s Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That are Not
Within the Scope of GASB Statement 68. Additional details regarding LOSAP benefits can be found in Notes 9 and
17.
9) Compensated Absences
Primary Government – The County’s policy is to pay employees for any unused vacation time, up to a maximum of 65
days, upon termination of employment. Compensated absences are reported in governmental funds only if they have
matured, such as payments upon termination of employment, vacation, and compensatory time paid as they are used
during the year. Such time is paid as regular wages. Compensated absences are reported in enterprise funds as they are
accrued. In the government-wide statements, the liability for compensated absences is adjusted at the end of each fiscal
year to current salary costs.
Component Unit - Board of Education –The Board accrues a liability for compensated absences (vacation pay)
employees have earned but have not been paid. The Board adopted the practice of paying for any unused
vacation time, up to the maximum amounts employees can carry over from one year to the next, upon the
termination of employment. The full amount of this obligation has been provided for in the statement of net
position.
10) Long-Term Obligations
In the government-wide financial statements and 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 statements of net assets. Bond premiums are deferred and amortized over the life of
the bonds using the bonds outstanding method. Bonds payable in the proprietary fund financial statements and
noncurrent liabilities in the government-wide financial statements are reported net of the applicable bond premium or
discount. Bond issuance costs are reported in the period in which they have been incurred.
59

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) Long-Term Obligations (continued)
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 expenditures. When debt is refunded in an advance refunding, payments to the Bond Refunding Agent and
associated bond issuance costs are reported as other financing uses. When debt is refunded in a current refunding, the
principal on refunded debt is reported as other financing uses.
11) Net Position/Fund Equity
In the government-wide financial statements, the County has reported an unrestricted net surplus of $66,766,767. The
County issues general obligation bonded debt for purposes of capital construction on behalf of the Queen Anne’s County
Board of Education. The capital assets constructed with the proceeds of this debt are reported on the financial statements
of Queen Anne’s County Board of Education. This amount is also classified as net investment in capital assets in the
Board of Education column of the Component Units section of the County’s government-wide Statement of Net
Position. Since the Board of Education is not authorized to borrow funds, they do not have any debt.
Since the issuance of such debt has not resulted in capital assets owned by the Primary Government, the effect of this
debt is reflected in the unrestricted net assets in the Governmental Activities column of the government-wide Statement
of Net Position. At June 30, 2023, the County has reported outstanding general obligation debt related to assets held by
the Board of Education amounting to $48,229,215 (of which $42,257,297 has been spent and the remaining $5,971,918
relates to unspent bond proceeds).
The County reports a portion of its net position in its government-wide financial statements as restricted. In this context,
restricted means that, as of June 30, 2023, this portion of net position was restricted for a particular purpose either by
external parties; by provision of the County Charter; or by enabling legislation. Net position restricted by enabling
legislation represents legislative restrictions that a party external to the government can compel the government to honor.
For the County, such amounts represent primarily accumulated net position attributed to revenue streams that are
restricted for specified purposes in the County Code. This generally includes the Rainy Day Fund, Capital Projects Fund
impact fee collections and developer exactions on hand for outside entities; restricted amount for special revenue funds;
and ending restricted net assets of the Sanitary District and other enterprise funds. Such amounts, which are restricted in
the government-wide Statement of Net Position, are as follows at year-end:
Governmental Business-type
Amounts Restricted for: Activities Activities
General government $ 14,985,939 $ -
Economic/community development 3,006,352 -
Public safety 5,676,785 -
Conservation of natural resources 2,825,525 -
Social services 955 -
Debt service - 3,819,902
Other Purposes - 1,530,636
Total amounts restricted $ 26,495,556 $ 5,350,538
Note that unspent bond proceeds of $11,108,218 are included in restricted fund balance for the General Capital
Projects Fund. At the Government-Wide level, the unspent bond proceeds are offset by the liability.
60

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
11) Net Position/Fund Equity (continued)
In the fund financial statements, fund balances of governmental funds are classified as follows:
Nonspendable – amounts that cannot be spent either because they are not in a spendable form or because they are
legally or contractually required to be maintained intact. Nonspendable fund balances for the County include inventory
and prepaid items.
Restricted – amounts that can be spent only for specific purposes because of constitutional provisions or enabling
legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or
regulations of other governments.
Committed – amounts that can be used only for specific purposes determined by a formal action of the Queen Anne’s
County Commissioners. The Commissioners are the highest level of decision-making authority for the County.
Commitments may be established, modified, or rescinded only through formal actions such as a County Ordinance
approved by the County Commissioners.
Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be
used for specific purposes. The assignment of funds rests with the County Commissioners. In addition, GASB 54
requires all positive residual amounts in special revenue funds to be reported as assigned.
Unassigned – all other spendable amounts; however, the General Fund is the only fund permitted to have a positive
unassigned fund balance. Negative unassigned fund balances may occur in other governmental funds.
The County typically uses restricted fund balances first, followed by committed resources, and then assigned resources,
as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of
these other classified funds.
12) Property Tax
The County's real property tax is levied each July 1 on the assessed values certified as of that date for all taxable real
property located in the County. The levy functions as a lien against the property. Assessed values are established by the
Maryland State Department of Assessments and Taxation at estimated market value. A revaluation of all property is
required to be completed every three years. Taxes are then billed to property owners and collected by the County.
Property represented by delinquent taxes is sold at a public auction in May of the following calendar year, with title
transferring after foreclosure proceedings have been completed.
For small businesses that meet certain criteria and also principal residences, an installment plan is offered whereby total
tax is paid in two equal installments. The first installment is due by September 30. Beginning October 1, a 1% penalty is
charged on the first day of each month that the installment remains unpaid. This 1% penalty is based on the amount of
the first installment only. The second installment is due by December 31. Beginning January 1, the 1% penalty would
then include all outstanding balances. The County accepts partial payments.
For non-principal residences, payment is due in full by September 30. Beginning October 1, a penalty is charged for
each month that taxes remain unpaid. For new construction, completed and assessed between July 1 and December 31, a
supplementary tax is levied equal to half of the full-year levy. Payment in full is due by March 31. Beginning April 1, a
penalty is charged for each month that taxes remain outstanding.
61

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
12) Property Tax (continued)
Real and personal property taxes are levied at rates enacted by the County Commissioners in the annual budget
on the assessed value as determined by the Maryland Department of Assessments and Taxation. The rates of
levy cannot exceed the constant yield rate furnished by the Maryland Department of Assessments and Taxation
without public notice and only after public hearings. The County tax rate for the fiscal year ended June 30, 2023 was
$0.8300 per $100 of assessed value.
E. NEW ACCOUNTING PRONOUNCEMENTS
In fiscal year ended June 30, 2023, the County adopted the following new GASB statements:
Statement No. 96, Subscription-Based Information Technology Arrangements, see Note 11 for the effects of this
standard.
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
Pursuant to the Code of Public Local Laws of Queen Anne's County, the County Commissioners adopt an annual operating
budget and real property tax rate prior to July 1 each year. This action, taken after public hearings, provides the spending
authority for the fiscal year beginning on July 1. Unexpended and unencumbered appropriation authority expires the
following June 30, except in the case of Capital Projects where appropriations lapse only upon completion or cancellation of
each project by the County Commissioners. The appropriated budgets are prepared at the fund, function, and departmental
level. Expenditures/expenses may not legally exceed appropriations, based on the level at which they were adopted. For the
General Fund, annual expenditure budgets are legally adopted at the departmental level. For all other Governmental Funds,
for which annual budgets are adopted, expenditure budgets are legally adopted at the fund level.
62

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended June 30, 2023,
supplemental appropriations were as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 171,400,000 $ 186,576,573 $ 15,176,573
Special Revenue Funds that adopt annual budgets
Grants Fund - expenditures and transfers 928,629 3,450,082 2,521,453
Non-Major Funds that adopt annual budgets -
Department of Aging - expenditures and transfers $ 3,484,267 $ 3,812,114 $ 327,847
Housing & Community Services - expenditures and transfers 2,042,122 2,446,235 404,113
Roads Operating - expenditures and transfers - 6,066,638 6,066,638
Community Partnerships for Children - expenditures and transfers 1,118,835 1,330,832 211,997
Agricultural Transfer - expenditures and transfers 1,197,394 2,175,827 978,433
Rural Legacy - expenditures and transfers 1,650,321 1,902,438 252,117
Kent Narrows - expenditures and transfers 38,000 40,000 2,000
Fire Company Impact Fees - expenditures and transfers 357,000 605,034 248,034
Economic Development Incentive - expenditures and transfers 125,000 917,272 792,272
Parks & Rec Impact Fees - transfers and transfers 300,000 1,000,000 700,000
Total Special Revenue Funds that adopt annual budgets $ 10,312,939 $ 20,296,390 $ 9,983,451
All final budgets are presented as amended. The County Administrator may approve budget amendments of $10,000 or less
throughout the year. Amendments greater than $10,000 require the approval of the County Commissioners.
Annual operating budgets are legally adopted for the General Fund, Grants Fund, and the following non-major governmental
funds: Department of Aging, Housing and Community Services, Economic Development Incentive, Roads Operating,
Community Partnerships for Children, Law Library, Inmate Welfare, Agricultural Transfer, Rural Legacy, Dredging Special
Assessments, Kent Narrows, School Impact Fees Capital Projects, Fire Company Impact Fees Capital Projects, and Parks and
Recreation Impact Fees Capital Projects. Proprietary Fund budgets are adopted for management control only and include all
enterprise funds. Budgets are adopted using the same method of accounting as that used for Fund reporting purposes.
Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year appropriations at the
individual project level. Expenditures may not legally exceed appropriations at that level and appropriations lapse at the
completion or cancellation of individual projects. Since these capital projects funds do not adopt an annual budget per
project, a Statement of Revenues, Expenditures, and Changes in Fund Balances on a budget-to-actual basis is not presented
for these funds.
No General Fund departments exceeded their legally adopted expenditure budgets for the year ended June 30, 2023.
However, salary reversions are budgeted as a lump sum negative $1,378,310, but actual amounts are realized in the
individual departments and are not reported as a lump sum in the reversions activity.
63

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS
Deposits are maintained in a variety of financial institutions. Statutes authorize the County to invest in obligations of the
United States Government, Federal government agency obligations, secured time deposits in Maryland banks, bankers’
acceptances, the Maryland Local Government Investment Pool, money market mutual funds, commercial paper and
repurchase agreements secured by direct government or agency obligations.
At year-end, the County Primary Government had deposits of $111,454,435 with local banks (carrying value $111,311,950),
all of which was covered by federal depository insurance or by collateral held by the County’s agent in the County’s name.
Of these options, the County participates in the Maryland Local Government Investment Pool (MLGIP), which provides all
local government units of the state with a safe investment vehicle for short-term investment of funds. The State Legislature
created MLGIP with the passage of Article 95 Section 22G, of the Annotated Code of Maryland. PNC Financial manages the
MLGIP, under administrative control of the State Treasurer. A MLGIP Advisory Committee of current participants reviews
the activities of the Fund on a quarterly basis and provides suggestions to enhance the pool. The MLGIP portfolio is
managed in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of the Investment Company Act
of 1940. Standard and Poors rates the MLGIP as AAAm. The fair value of the pool is the same as the value of the pool
shares. At June 30, 2023, the County had investments in MLGIP of $91,083,720, which are recorded at cost, which
approximates fair value.
As of June 30, 2023, the County’s investments (excluding investments held for retiree health benefits), for both custodial and
credit risk purposes, consisted solely of shares in the MLGIP. This investment is not deemed to have either risk and is in
conformity with the County’s policy relating to minimal credit risk of investments.
The majority of the Retiree Health Trust investments are invested in the Maryland Association of Counties Pooled OPEB
Trust (MACO Trust). The MACO Trust is administered by Davenport & Company LLC, and is a wholly-owned
instrumentality of its members.
The assets of the Trust are managed by a Board of Trustees and consist of U.S. Treasury obligations, U.S. government
agencies, corporate and foreign bonds, municipal obligations, taxable fixed income securities, mutual funds, global funds,
and international equity securities.
Cash and cash equivalents for the MACO Trust include an investment in a money market mutual fund. At June 30, 2023, the
weighted average maturity (WAM) for the Trust’s money market mutual fund investment was 26 days. At June 30, 2023, the
short-term rating of the money market mutual fund was AAAm by Standard & Poor’s.
The main objectives of the Trust’s investment policy are the protection of investment principal, maximizing investment
income through diversification while assuring financial liquidity. The policy allows for investment in U.S. and Non-U.S.
equities, corporate, government, or government agency bonds, non-U.S. bonds, Real Estate and Limited Partnerships.
64

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
The Trust categorizes its fair value measurements with the fair value hierarchy established by U.S. GAAP. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset and gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
 Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;
 Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets or
liabilities in less active markets, such as dealer or broker markets; and
 Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value
drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not based on
market, exchange, dealer or broker-traded transactions.
Transactions are recorded on the trade date. Realized gains and losses are determined using the identified cost method. Any
change in net unrealized gain or loss from the preceding period is reported in the statement of changes in fiduciary net
position. Dividends are recorded on the ex-dividend date. Interest is recorded on the accrual basis. Following is a description
of the valuation methodologies used for assets measured at fair value.
Equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt securities
classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value
securities based on the securities' relationship to benchmark quoted prices.
The Trust has the following recurring fair value measurements as of June 30, 2023, of which Queen Anne’s County’s portion
was 23.4% of the total:
Level 1 Level 2 Level 3 Total
Investments by fair value level:
Debt Securities
U.S. Treasury Obligations $ - $ 4 ,007,795 $ - $ 4 ,007,795
U.S. Governmental Agencies - 5 ,416,513 - 5 ,416,513
Corporate & Foreign Bonds - 8 ,955,988 - 8 ,955,988
Municipal Obligations - 1 ,663,794 - 1 ,663,794
Equity and Mutual Fund Investments
Taxable Fixed Income Funds - 3 ,441,069 - 3 ,441,069
Mutual Funds 2 9,745,434 - - 2 9,745,434
Global Funds 6 ,334,654 - - 6 ,334,654
International 1 0,314,422 - - 1 0,314,422
Total $ 4 6,394,510 $ 2 3,485,159 $ - $ 6 9,879,669
Interest rate risk is the risk that changes in market interest rates that will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest
rates. The Trust’s investment policy states that the duration of the portfolio should be within 6 months of the Barclays Capital
Aggregate Bond Index. The Trusts’ weighted average years to maturity exposed to interest rate risk as of June 30, 2023 was
17.54 years.
65

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
Information about the sensitivity of the fair values of the Trust’s investments to market interest rate fluctuations is provided
by the following table that shows the distribution of the Trust’s investments by maturity as of June 30, 2023:
Investment Maturities (in Years)
Less than 1 1 - 5 6 - 10 More than 10 Total
Investments with Maturities
U.S. Treasury Obligations $ - $ 7 51,325 $ 1 ,077,758 $ 2 ,178,712 $ 4 ,007,795
U.S. Governmental Agencies 5 3,881 - 6 58,947 4 ,703,685 5 ,416,513
Corporate & Foreign Bonds 6 73,235 1 ,993,047 2 ,600,937 3 ,688,769 8 ,955,988
Municipal Obligations - 5 6,086 9 5,147 1 ,512,561 1 ,663,794
Total $ 7 27,116 $ 2 ,800,458 $ 4 ,432,789 $ 1 2,083,727 $ 2 0,044,090
Credit Risk. The Trust is exposed to both market risk, the risk arising from changes in fair value, and credit risk, the risk of
failure by another party to perform according to the terms of a contract. Trust assets may only be invested in investment
grade bonds with a minimum rating of Baa3 by Moody’s or BBB- by S&P. The Trust bears the risk of loss only to the extent
of the fair value of its respective investments. At June 30, 2023 the ratings of the underlying investments of the Trust’s
investments were as follows:
Rating
Aa1/Aa2/ Baa1/Baa2/
Type Aaa Aa3 A1/A2/A3 Baa3 Not Rated Total
U.S. Treasury Obligations $ 3 ,934,696 $ - $ 7 3,099 $ - $ - $ 4,007,795
U.S. Governmental Agencies 5 3,881 - - - 5 ,362,632 5,416,513
Corporate & Foreign Bonds 1 75,857 2 ,089,107 4 ,079,813 2 ,202,399 4 08,812 8,955,988
Municipal Obligations 4 05,761 1 ,032,502 8 6,328 - 1 39,203 1,663,794
Total $ 4 ,570,195 $ 3 ,121,609 $ 4 ,239,240 $ 2 ,202,399 $ 5 ,910,647 $ 20,044,090
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a
transaction, the Trust will not be able to recover the value of its investment or collateral securities that are in the possession
of another party. The Trust’s investment policy does not contain legal or policy requirements that would limit the exposure to
custodial credit risk for deposits or investments. The Trust has all of its assets on deposit with Wilmington Trust Company in
connection with its investing and cash management activities. All of the investments held by the Trust at June 30, 2023 were
exposed to custodial credit risk as the investments are uninsured and unregistered.
The following tables summarizes the composition of the Trust’s investment balances by type as well as the interest rate range
as of June 30, 2023:
Interest
Fair Value Rate Range
U.S. Treasury Obligations $ 4 ,007,795 2.25 to 4.25%
U.S. Governmental Agencies 5 ,416,513 1.3 to 5.0%
Corporate & Foreign bonds 8 ,955,988 0.43 to 6.5%
Municipal Obligations 1 ,663,794 2.44 to 6.26%
Taxable Fixed Income Funds 3 ,441,069 N/A
Mutual Funds 2 9,745,434 N/A
Global Funds 6 ,334,654 N/A
International 1 0,314,422 N/A
Total $ 6 9,879,669
66

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
Concentration of credit risk. The following general asset allocation guidelines have been established through the Trust’s
investment policy.
Asset Class Minimum Maximum Target
Equities 50% 70% 65%
Fixed Income 30% 50% 35%
Cash and Equivalents 0% 10% 0%
The Trust held the following investments as of June 30, 2023 that exceeded 5% of the total investment balance as of June 30,
2023:
Name Amount
VANGUARD 500 INDEX CL ADML $ 1 0,924,126
NEW WORLD FUND-R6 6 ,334,654
VANGUARD MID CAP INDEX-ADM 5 ,359,261
VANGUARD RUSSELL 1000 GR-IS 5 ,280,933
LAZARD INTL STRATEGIC EQUITY FD CL-I 5 ,202,525
TRANSAMERICA TS&W INTL EQ-IS 5 ,111,897
FULLER & THALER BEHAVIORAL SC GR R6 4 ,653,901
COHEN & STEERS REALTY INCM-I 3 ,527,213
Foreign currency risk is the risk that changes in the exchange rate of investments will adversely affect the fair value of an
investment. The Trust was not exposed to Foreign Currency risk as of June 30, 2023 as the Trust did not have any
investments denominated in foreign currencies.
For the year ended June 30, 2023, the annual money-weighted rate of return on investments, net of expense, was 5.7%. The
money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the changing
amounts actually invested.
Capital Accounts
The Trust accounts for contributions, allocations, and redemptions on a per member capital account basis. The revenues,
consulting and management fees, and administrative service fee are allocated pro rata to the capital accounts of each member
based on committed capital. The fair value of member capital accounts is determined monthly.
Income Taxes
The Trust complies with the requirements of Section 115 of the Internal Revenue Code and is exempt from income taxes.
LOSAP Funds
The LOSAP funds are invested in an Empower Retirement General Investment Account (GIA). The GIA, backed by
Empower Retirement’s general assets, is designed to provide stable, guaranteed rate of return and guarantee of principal.
General investment account assets are managed with reference to their associated liabilities so product specifications and
obligations to clients can be met with a high degree of certainty, even when market conditions change. Investment risk
management is a high priority. Strict diversification among industries and individual issuers help mitigate credit risk.
Various quantitative tools and systems, as well as qualitative approaches, are used to manage interest rate risk and liquidity
risk. Assets in the GIA were managed to range from 5 to 6 years.
67

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
LOSAP Funds (Continued)
If the GIA Contract is fully or partially terminated, participants will receive the liquidation value of the GIA instead of the
book value (i.e., contract value), which is the value disclosed on participant statements and recorded within these financial
statements. The liquidation value is determined in accordance with a formula contained in the GIA Contract and is designed
to reflect the value of the assets in the general investment account. This liquidation value may be more or less than the book
value of the plan’s investment in the GIA Contract. This means that upon partial or full termination of the GIA Contract a
participant’s account balance in the GIA may be either increased or decreased.
The County’s LOSAP fund GIA account balance as of June 30, 2023 is $5,334,870 and is included in restricted LOSAP plan
assets on the general fund balance sheet.
The fair value GAAP hierarchy is based on the valuation of inputs used to measure the fair value of the asset. Level 1 inputs
are quoted market prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and
Level 3 are significant unobservable inputs. GIA is measured on recurring basis and is considered to be Level 3 as
liquidation value is based on actuarial formula as defined under the terms of the contract with no observable price.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $15,662,235, including $300,000 in
certificates of deposit and excluding the carrying amount of fiduciary funds. At June 30, 2023, the Board had deposits of
approximately $16.6 million with local banks and the bank deposits were fully insured or collateralized.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including certificates of deposit, was
$1,535,319 and the balance per bank records totaled $1,568,504. Of the bank balances, $250,000 was secured by the FDIC
and $1,318,504 was secured by collateral held by the pledging bank’s trust department but not in the Library’s name.
Total investment income earned in all governmental and business-type funds was credited for use as follows:
Governmental Business-type
Investment Income Activities Activities
Major Governmental Funds
General Fund $ 4,808,600 $ -
General Capital Projects 765,760 -
Roads Capital Projects 193,842 -
Grants Fund - -
Non-Major Governmental Funds 680,742 -
Major Enterprise Funds
Sanitary District - 1,045,512
Bay Bridge Airport - 2,052
Non-Major Enterprise Funds - -
Total Investment Income $ 6,448,944 $ 1,047,564
68

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2023 for the governmental and business-type activities are as follows:
Total
General Roads Non-Major Total Total Governmental
General Capital Capital Grants Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Fund Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 250,781 $ - $ - $ - $ - $ 250,781 $ - $ 250,781
Taxes - Other 569,603 - - - - 569,603 - 569,603
Subtotal Taxes Receivable (Net) 820,384 - - - - 820,384 - 820,384
Other Accounts Receivable:
QAC - PHA - 733,121 - - - 733,121 - 733,121
Sanitary District -
User and Septage Fees - - - - - - 599,381 599,381
Airport - Fuel Sales, User
and Rental Fees - - - - - - 22,935 22,935
Miscellaneous Receivables 169,745 13,057 - 12,371 89,381 284,554 66,091 350,645
Subtotal Accounts Receivable (Net) 169,745 746,178 - 12,371 89,381 1,017,675 688,407 1,706,082
Loans Receivable - - - - 6,289,663 6,289,663 101,834 6,391,497
Special Assessments - - 27,265 - 607,965 635,230 - 635,230
Intergovernmental
Income Taxes Held by State 39,353,092 - - - - 39,353,092 - 39,353,092
Grants Receivable 379,152 521,298 - 698,605 865,853 2,464,908 550,013 3,014,921
Recordation Tax 868,370 - - - - 868,370 - 868,370
State-Highway User Tax - - - - 426,179 426,179 - 426,179
Subtotal Due from Other Governments 40,600,614 521,298 - 698,605 1,292,032 43,112,549 550,013 43,662,562
Restricted Receivables
Accounts Receivable (Net) - - - - - - 3,970,000 3,970,000
Special Assessments Receivable (Net) - - - - - - 16,433,398 16,433,398
Subtotal Restricted Receivables - - - - - - 20,403,398 20,403,398
Total Receivables $ 41,590,743 $ 1,267,476 $ 27,265 $ 710,976 $ 8,279,041 $ 51,875,501 $ 21,743,652 $ 73,619,153
The County does not have any allowance for doubtful accounts related to the above receivables.
In Fiscal Year 2014, the County issued bonds on behalf of three mid-shore counties (Dorchester, Caroline, and Talbot) in order
to provide funding for the new Center for Allied Health and Athletics at Chesapeake College. Therefore, in addition to the
Governmental and Enterprise Fund receivables listed above, the County also has a $3.1 million receivable on its government-
wide Statement of Net Position, which represents the collective obligation of the three aforementioned counties for funding the
facility at Chesapeake College.
69

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Loans receivable in the amount of $6,289,663 relate to the Housing and Community Services, Impact Fees, and Revolving
Loan Special Revenue Funds. Loans receivable in the amount of $6,087,647 for Housing and Community Services will be
repaid when the homes are sold, in virtually all cases. These loans support housing rehabilitation and home-ownership. When
the loans are repaid to the County, the funds are then loaned out again to serve the same purpose. Loans for the Revolving
Loan Fund in the amount of $90,000 are also repaid over a number of years. The remaining loan receivable balance of
$112,016 relates to school, fire, and parks and recreation impact fees. In July 2007, the County began accepting promissory
notes for impact fees, in certain situations, with the understanding that when certificate of occupancy was obtained, these notes
would be paid in full. To ensure repayment, the notes attach to the property incurring the impact fee; therefore, payment will be
required automatically prior to legal transfer of title.
Income taxes held by the State in the amount of $39,353,092 have been estimated by the State as income tax due to the County.
Local income tax revenue is collected by the State and distributed to the local governments throughout the year. The State’s
distribution of the County’s share of income taxes lags behind the County’s fiscal year. However, the State indicates that this is
a reasonable estimate of their liability to the County and the County reports this amount in accordance with GAAP.
Special Assessments in the amount of $635,230 represent receivables for governmental activities. Part of this amount consists
of $27,265 for assessments levied on homeowners to reimburse the County for construction or upgrade of private roads prior to
their acceptance into the County Roads System. The other part of this amount consists of $607,965 for assessments levied on
homeowners relating to dredging costs. Payment of these assessments is expected over a number of years.
Restricted Special Assessments in the amount of $16,433,398 represent restricted receivables for the Sanitary District. These
receivables relate to assessments levied on homeowners for the construction of sewer and water lines, as well as for hook up
costs. Only the current portion due is billed and the remaining balances are repaid over a number of years, as determined by the
original agreement. As the funds are paid back, the County uses the money to repay debt.
NOTE 5 – UNEARNED REVENUE
Governmental funds report unearned revenue in connection with resources that have been received, but unearned. At the end
of the current fiscal year, the components of unearned revenue were reported as follows:
General Roads Non-Major Total Total
General Capital Capital Grants Governmental Governmental Enterprise
Unearned Revenue Fund Projects Projects Fund Funds Funds Funds
Property Tax Deferrals $ 15,288 $ - $ - $ - $ - $ 15,288 $ -
Inspection Fees Collected in Advance - - - - - - 180,047
Grant Drawdowns in excess of Expenditures - - - 8,896,813 831,583 9,728,396 -
Miscellaneous 9,271 - - - - 9,271 289,632
Total Unearned Revenue $ 24,559 $ - $ - $ 8,896,813 $ 831,583 $ 9 ,752,955 $ 469,679
70

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2023 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Governmental Activities June 30, 2022 Increases Transfers Decreases June 30, 2023
Capital Assets, not being depreciated:
Land $ 3 8,674,653 $ 4 9,100 $ 1 61,563 $ - $ 3 8,885,316
Intangible Rights - Easements 8 21,819 - - - 8 21,819
Land Improvements 3 ,714,283 - - - 3 ,714,283
Construction in Progress 9 ,943,879 2 ,714,939 (398,198) (720,956) 1 1,539,664
Land - Inexhaustible Infrastructure Improvements 4 3,890,863 - - - 4 3,890,863
Total Capital Assets, not being depreciated 9 7,045,497 2 ,764,039 (236,635) (720,956) 9 8,851,945
Capital Assets, being depreciated:
Buildings and Building Improvements 7 2,354,564 1 14,506 - - 7 2,469,070
Improvements other than Buildings 1 8,188,150 3 ,455,807 6 2,276 - 2 1,706,233
Vehicles 1 6,398,634 2 ,032,301 4 2,418 (845,256) 1 7,628,097
Equipment 1 5,653,189 1 ,765,125 1 04,013 (368,938) 1 7,153,389
Furniture and Fixtures 1 3,160,498 1 68,315 2 7,113 - 1 3,355,926
Infrastructure Improvements - Depreciable 1 8,623,747 8 7,786 - - 1 8,711,533
Right-to-use asset - 6 38,500 - - 6 38,500
Subscription asset - 1 ,503,069 - - 1 ,503,069
Total Capital Assets, being depreciated 1 54,378,782 9 ,765,409 2 35,820 (1,214,194) 1 63,165,817
Less Accumulated Depreciation for:
Buildings and Building Improvements 2 0,588,315 1 ,576,995 - - 2 2,165,310
Improvements other than Buildings 5 ,363,326 9 10,210 - - 6 ,273,536
Vehicles 9 ,763,613 1 ,478,633 (8,315) (811,118) 1 0,422,813
Equipment 9 ,153,753 1 ,017,928 4 ,375 (346,775) 9 ,829,281
Furniture and Fixtures 5 ,519,409 1 ,454,511 - - 6 ,973,920
Infrastructure Improvements - Depreciable 1 0,161,056 2 97,951 - - 1 0,459,007
Right-to-use asset - 6 7,655 - - 6 7,655
Subscription asset - 3 11,303 - - 3 11,303
Total Accumulated Depreciation 6 0,549,472 7 ,115,186 (3,940) (1,157,893) 6 6,502,825
Total Capital Assets, being depreciated, net 9 3,829,310 2 ,650,223 2 39,760 (56,301) 9 6,662,992
Governmental activities Capital Assets, net $ 1 90,874,807 $ 5 ,414,262 $ 3 ,125 $ (777,257) $ 1 95,514,937
71

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Changes in the County’s capital assets for business-type activities for the year ended June 30, 2023 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Business-Type Activities June 30, 2022 Increases Transfers Decreases June 30, 2023
Capital Assets, not being depreciated:
Land $ 1 0,916,330 $ - $ - $ - $ 1 0,916,330
Land Improvements 9 ,500 - - - 9 ,500
Intangible Rights 6 ,140 - - - 6 ,140
Construction in Progress 4 ,033,099 6 ,363,755 (2,193,875) - 8 ,202,979
Land - Inexhaustible Infrastructure Improvements 2 ,481,094 - - - 2 ,481,094
Total Capital Assets, not being depreciated 1 7,446,163 6 ,363,755 (2,193,875) - 2 1,616,043
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 1 6,193,029 1 2,744 - - 1 6,205,773
Improvements other than Buildings 1 5,727,802 8 17,612 9 89,021 - 1 7,534,435
Vehicles 1 ,990,676 5 0,967 1 8,713 (40,998) 2 ,019,358
Equipment 2 4,515,622 3 77,052 - (60,961) 2 4,831,713
Furniture and Fixtures 6 2,873 1 0,504 - (1,002) 7 2,375
Infrastructure Improvements - Depreciable 1 31,532,397 4 ,034,144 1 ,204,854 - 1 36,771,395
Right-to-use asset 8 0,630 1 42,748 - (42,323) 1 81,055
Total Capital Assets, being depreciated 1 90,103,029 5 ,445,771 2 ,212,588 (145,284) 1 97,616,104
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 1 0,686,103 2 75,154 - - 1 0,961,257
Improvements other than Buildings 7 ,758,535 5 88,069 - - 8 ,346,604
Vehicles 1 ,387,619 1 24,420 1 8,713 (40,998) 1 ,489,754
Equipment 1 6,374,953 5 59,312 - (57,210) 1 6,877,055
Furniture and Fixtures 2 5,358 4 ,860 - (1,002) 2 9,216
Infrastructure Improvements - Depreciable 4 2,019,578 2 ,683,356 - - 4 4,702,934
Right-to-use asset 4 5,292 3 3,712 - (42,323) 3 6,681
Total Accumulated Depreciation 7 8,297,438 4 ,268,883 1 8,713 (141,533) 8 2,443,501
Total Capital Assets, being depreciated, net 1 11,805,591 1 ,176,888 2 ,193,875 (3,751) 1 15,172,603
Business-Type activities Capital Assets, net $ 1 29,251,754 $ 7 ,540,643 $ - $ (3,751) $ 1 36,788,646
72

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Business-type
Activities Activities
General Government $ 1,385,286 $ -
Public Safety 2,659,036 -
Public Works 1,505,236 -
Parks & Recreation 1,113,906 -
Health and Social Services 340,892 -
Education and Library 25,130 -
Conservation of Natural Resources 41,623 -
Economic/Community Development 44,077 -
Major Enterprise Funds:
Sanitary District - 3,608,017
Bay Bridge Airport - 464,183
Non-Major Enterprise Funds - 196,683
Total amounts restricted $ 7,115,186 $ 4,268,883
73

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2023 is as follows:
Balance Balance
Board of Education June 30, 2022 Increases Transfers Decreases June 30, 2023
Capital Assets, not being depreciated:
Land $ 6 ,363,040 $ - $ - $ - $ 6 ,363,040
Construction in Progress 1 22,528 2 ,400,763 (122,528) - 2 ,400,763
Total Capital Assets, not being depreciated 6 ,485,568 2 ,400,763 (122,528) - 8 ,763,803
Capital Assets, being depreciated:
Land Improvements 5 ,410,966 - - - 5 ,410,966
Buildings 2 12,308,322 - 1 22,528 - 2 12,430,850
Furniture, Fixtures, and Equipment 1 8,873,881 6 94,533 - (90,044) 1 9,478,370
Leased Equipment - 3 79,187 - - 3 79,187
Total Capital Assets, being depreciated 2 36,593,169 1 ,073,720 1 22,528 (90,044) 2 37,699,373
Less Accumulated Depreciation for:
Land Improvements 4 ,926,389 1 00,323 - - 5 ,026,712
Buildings 7 7,460,351 4 ,511,186 - - 8 1,971,537
Furniture, Fixtures, and Equipment 1 3,333,642 1 ,432,555 - (90,044) 1 4,676,153
Leased Equipment - 8 7,546 - - 8 7,546
Total Accumulated Depreciation 9 5,720,382 6 ,131,610 - (90,044) 1 01,761,948
Total Capital Assets, being depreciated, net 1 40,872,787 (5,057,890) 1 22,528 - 1 35,937,425
Capital Assets, net $ 1 47,358,355 $ (2,657,127) $ - $ - $ 1 44,701,228
74

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2023 is as follows:
Balance Balance
Library June 30, 2022 Increases Transfers Decreases June 30, 2023
Capital Assets, not being depreciated:
Artwork $ 2 9,850 $ - $ - $ - $ 2 9,850
Total Capital Assets, not being depreciated 2 9,850 - - - 2 9,850
Capital Assets, being depreciated:
Books and Media 1 ,763,794 1 95,124 - (101,275) 1 ,857,643
Building Improvements 4 02,207 - - - 4 02,207
Equipment 3 24,338 2 19,117 - - 5 43,455
Right-to-use 2 7,018 - - - 2 7,018
Total Capital Assets, being depreciated 2 ,517,357 4 14,241 - (101,275) 2 ,830,323
Less Accumulated Depreciation 1 ,060,205 2 24,957 - (97,859) 1 ,187,303
Total Capital Assets, being depreciated, net 1 ,457,152 1 89,284 - (3,416) 1 ,643,020
Capital Assets, net $ 1 ,487,002 $ 1 89,284 $ - $ (3,416) $ 1 ,672,870
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables are usually used by the County to cover temporary cash deficits in individual funds until
grant or similar resources are received.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2023:
Due from Fund
Non- Bay Non- Total
Due to Fund General Capital Roads Grants Major Sanitary Bridge Major Due
Fund Projects Capital Fund Governmental District Airport Enterprise From
General Fund $ 688,090 $ - $ - $ - $ - $ 394,043 $ - $ - $ 2 94,047 $ 688,090
General Capital Projects 935,217 - - - - - - 935,217 - 935,217
Roads Capital - - - - - - - - - -
Grants Fund - - - - - - - - - -
Non-Major Governmental - - - - - - - - - -
Sanitary District - - - - - - - - - -
Bay Bridge Airport - - - - - - - - - -
Non-Major Enterprise - - - - - - - - - -
Total Due To Fund $ 1,623,307 $ - $ - $ - $ - $ 394,043 $ - $ 935,217 $ 2 94,047 $ 1,623,307
Interfund receivables and payables are reported on the Statement of Net Position as Internal Balances, net of transactions
between the same types of funds.
75

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers represent a transfer of resources from one fund to another without expectation of repayment. Usually,
these transfers are undertaken to enable the receiving entity to provide services that the government has determined to be in
the best interest of the County.
The transfers from the General Fund provide funding for capital projects and to fund programs in the non-major special
revenue funds. Transfers from the General Fund to the Airport are to pay for a portion of debt service related to an Airport
project. Transfers from General Capital Projects represent a transfer to the Golf Course Enterprise Fund for a specific project.
Transfers from Water and Sewer Sanitary District funds are to provide funding for the County mapping project. The
transfers from Restricted and Debt Service Sanitary funds are to cover Sanitary related debt service. Transfers from Non-
Major Governmental Funds provided funding from the Impact Fee Funds to the General Fund and General Capital Projects.
There was also a transfer from the Grants Fund and also a non-major governmental fund to the Economic Development
Incentive Fund for program funding.
The following interfund transfers were made during the fiscal year ended June 30, 2023:
Transfers In
Non- Bay Non- Total
Transfers Out General Capital Roads Grants Major Sanitary Bridge Major Transfers
Fund Projects Capital Fund Governmental District Airport Enterprise In
General Fund $ 23,661,847 $ - $ 15,791,988 $ 550,000 $ 36,935 $ 7,223,469 $ - $ 59,455 $ - $ 23,661,847
General Capital Projects 470,000 - - - - - - - 4 70,000 470,000
Roads Capital - - - - - - - - - -
Grants Fund 240,000 - - - - 240,000 - - - 240,000
Non-Major Governmental 4,130,063 2,857,792 800,000 - - 472,271 - - - 4,130,063
Sanitary District 3,875,328 - 10,000 - - - 3,865,328 - - 3,875,328
Bay Bridge Airport - - - - - - - - - -
Non-Major Enterprise - - - - - - - - - -
Total Transfers Out $ 32,377,238 $ 2,857,792 $ 16,601,988 $ 550,000 $ 36,935 $ 7,935,740 $ 3,865,328 $ 59,455 $ 4 70,000 $ 32,377,238
Reconciliation of interfund transfers to the Statement of Activities
Governmental Funds Transfers In $ 27,982,455 Enterprise Funds Transfers In $ 4,394,783
Governmental Funds Transfers Out ( 28,501,910) Enterprise Funds Transfers Out (3,875,328)
Government-Wide Transfer Out 3,125 Reclassification of Transfer of Capital Asset (to) from Governmental Fund (3,125)
Total Governmental Activities $ ( 516,330) Total Business-Type Activities $ 516,330
The above entries for $3,125 relate to capital assets with a remaining book value transferred from Enterprise Funds to
Governmental Activities.
76

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 - NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2023, the following changes occurred in the noncurrent liabilities of the primary
government’s governmental activities:
PRIMARY GOVERNMENT Retirements Due in
Balance Additions and Balance Due Within More than
Governmental Activities June 30, 2022 of debt Repayments June 30, 2023 One Year One Year
General Bonds Payable $ 1 26,929,028 $ - $ 8,642,603 $ 118,286,425 $ 8,421,894 $ 109,864,531
General Bonds Payable - Related to PHA 5 31,258 - 88,251 443,007 66,494 376,513
General Bonds Payable - Related to Ches College 3 ,308,978 - 220,813 3,088,165 229,388 2,858,777
Notes Payable 6 55,957 - 47,816 608,141 47,816 560,325
Bond Premiums 1 1,371,705 - 937,650 10,434,055 872,744 9,561,311
Subtotal Governmental Activities Debt 1 42,796,926 - 9,937,133 132,859,793 9,638,336 123,221,457
Lease Liability - 6 38,500 23,832 614,668 62,314 552,354
Subscription Liability - 1 ,503,069 324,189 1,178,880 298,044 880,836
OPEB 3 6,268,523 - 9,458,276 26,810,247 - 26,810,247
Net Pension Liability 2 4,007,806 8 ,562,493 - 32,570,299 - 32,570,299
LOSAP Liability 1 0,267,761 - 2,509,893 7,757,868 - 7,757,868
Compensated Absences 3 ,527,165 2 ,013,748 1,915,250 3,625,663 2,144,941 1,480,722
Total Governmental Activities Debt $ 2 16,868,181 $ 1 2,717,810 24,168,573 $ 205,417,418 $ 12,143,635 $ 193,273,783
Less College Reimbursements 52,989
Total Governmental Retirements and Repayments $ 24,115,584
The reconciliation from retirements and repayments in the above table to the total principal payments on the Statement of
Revenues, Expenditures, and Changes in Fund Balance is as follows:
Retirements and Repayments
General Bonds Payable $ 8 ,642,603
General Bonds Payable - PHA 8 8,251
Payments made by PHA -
Notes Payable 4 7,816
LESS: Distributions of 2020 and 2021 Bonds (28,908)
LESS: College Reimbursements (52,989)
Total Principal Payments $ 8 ,696,773
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow money on its
own. The College reimbursed the County $52,989 for this year’s principal payments.
77

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2023, the following changes occurred in the noncurrent liabilities of the primary
government’s business-type activities:
PRIMARY GOVERNMENT
Retirements Due in
Balance Additions and Balance Due Within More than
Business-Type Activities June 30, 2022 of debt Repayments June 30, 2023 One Year One Year
Golf Course $ 8 4,140 $ - $ 4,236 $ 79,904 $ 4,419 $ 75,485
Bay Bridge Airport 1 ,430,227 2 8,908 102,441 1,356,694 109,618 1,247,076
Public Landings and Marinas 6 81,370 - 60,564 620,806 63,187 557,619
Sanitary District 3 3,291,256 3 ,946,501 1,915,181 35,322,576 2,118,910 33,203,666
Subtotal Debt 3 5,486,993 3 ,975,409 2,082,422 37,379,980 2,296,134 35,083,846
Bond Premiums
Golf Course 5 ,438 - 362 5,076 362 4,714
Bay Bridge Airport 7 5,622 - 7,484 68,138 7,485 60,653
Public Landings and Marinas 8 5,511 - 9,767 75,744 9,766 65,978
Subtotal Bond Premiums 1 66,571 - 17,613 148,958 17,613 131,345
Subtotal Business-Type Activities Debt 3 5,653,564 3 ,975,409 2,100,035 37,528,938 2,313,747 35,215,191
Lease Liability 3 9,225 1 42,748 37,592 144,381 33,666 110,715
OPEB 7 ,052,186 - 1,197,210 5,854,976 - 5,854,976
Net Pension Liability 2 ,176,280 5 14,423 - 2,690,703 - 2,690,703
Compensated Absences 5 21,292 3 6,939 - 558,231 330,249 227,982
Total Business-Type Activities Debt $ 4 5,442,547 $ 4 ,669,519 $ 3,334,837 $ 46,777,229 $ 2,677,662 $ 44,099,567
Additions of debt listed for the Bay Bridge Airport include $28,908 in distributions of the 2020 and 2021 Bonds from
governmental activities.
78

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2023, the following changes occurred in the noncurrent liabilities of the primary
government’s Component Units:
COMPONENT UNITS
Retirements Due in
Balance Additions and Balance Due Within More than
Board of Education and Free Library June 30, 2022 of debt Repayments June 30, 2023 One Year One Year
Board of Education
Compensated Absences $ 8 87,805 $ 2 29,418 $ - $ 1,117,223 $ - $ 1,117,223
Financed Purchases 1 ,377,894 - 207,893 1,170,001 221,055 948,946
Intangible Right-to-Use Leases - 3 79,187 82,266 296,921 85,350 211,571
OPEB 1 95,421,376 - 57,417,806 138,003,570 - 138,003,570
Net Pension Liability 4 ,309,601 1 ,582,670 - 5,892,271 - 5,892,271
Subtotal 2 01,996,676 2 ,191,275 57,707,965 146,479,986 306,405 146,173,581
Free Library
Lease Payable 1 3,852 - 5,515 8,337 5,735 2,602
OPEB 6 81,330 - 150,469 530,861 - 530,861
Subtotal 6 95,182 - 155,984 539,198 5,735 533,463
Total Component Units Debt $ 2 02,691,858 $ 2 ,191,275 $ 57,863,949 $ 147,019,184 $ 312,140 $ 146,707,044
Long-term liabilities are normally paid from the General fund.
79

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
PRIMARY GOVERNMENT
All general obligation bonds are valid and legally binding general obligations of Queen Anne’s County and constitutes an
irrevocable pledge of its full faith and credit and unlimited taxing power. Governmental bonds are payable from ad valorem
taxes, unlimited as to rate or amount on all real, tangible, personal, and certain intangible property subject to taxation at full
rate for local purposes in the County.
Business-type bonds, while representing general obligations of the County government, are to be paid from income earned by
the related enterprise fund. Enterprise funds that have such debt are: Sewer Operations, Bay Bridge Airport, Blue Heron Golf
Course, and Public Landings and Marinas.
During fiscal year 2019, the County implemented Governmental Accounting Standards Board’s Statement (GASB)
Statement 73, Accounting and Financial Reporting for Pensions and Related Assets That are Not Within the Scope of GASB
Statement 68. The County’ Fire and EMS Commission Pension Plan Length of Service Award Program (“LOSAP”) is
included in GASB 73 reporting. For governmental funds, the LOSAP obligations are reported in the government-wide
statements in the public safety function. There are not any LOSAP obligations in the enterprise funds. LOSAP costs in
governmental funds are charged to the General Fund. Additional information can be found in Note 16.
During fiscal year 2018, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions. For
governmental funds, OPEB is reported in the government-wide statements in the function in which that employee usually
charges their productive time. For enterprise funds, OPEB is reported in the enterprise fund in which that employee charges
the majority of their productive time. OPEB costs in governmental funds are charged to the General Fund. Additional
information can be found in Note 15, Other Post-Employment Benefits.
During fiscal year 2015, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 68, Accounting and Financial Reporting for Pensions. For governmental funds, the net pension liability is
reported in the government-wide statements in the function in which that employee usually charges their productive time. For
enterprise funds, these obligations are reported in the enterprise fund in which the employee charges the majority of their
productive time. Net Pension Liability costs in governmental funds are charged to the Governmental Fund in which the
employee charges their time. Additional information can be found in Note 13, Retirement Plans.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes vacation leave or
upon the employee’s termination, are typically liquidated from the governmental or enterprise fund in which that employee
charges the majority of their productive time. They are paid as regular wages. Compensated absences that do not mature
during the fiscal year are accrued at year-end as an adjustment to liability for compensated absences. For governmental
funds, these adjustments are reported in the government-wide statements in the function in which that employee usually
charges their productive time. For enterprise funds, these adjustments are reported in the enterprise fund in which that
employee charges the majority of their productive time. In the case of grant-funded activities that disallow compensated
absences as an eligible cost, they are paid as administrative wages in the same Fund. Compensated absences in governmental
funds are primarily charged to the General Fund or Special Revenue Funds; they are usually not charged to Capital Projects
Funds.
80

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2023, general obligation bonds and notes payable for governmental activities are comprised of the following,
along with lease liability, subscription liability, other post-employment benefit obligation, net pension liability, volunteer
fireman pension plan length of service award program liability and compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2023 One Year One Year
General Obligation Bonds Payable
2014 Public Facilities General 2.00%-4.00% 2034 $ 1 7,590,000 $ 10,673,468 $ 792,823 $ 9,880,645
2015 Public Facilities General 3.00%-5.00% 2036 1 1,622,756 8,468,238 504,792 7,963,446
2015 Refunding Bonds General 2.00%-5.00% 2027 1 3,521,625 6,068,266 1,443,211 4,625,055
2016 Public Facilities General 2.00%-4.00% 2036 1 3,934,364 10,860,096 600,581 10,259,515
2017 Public Facilities General 3.00%-5.00% 2037 1 2,600,000 10,435,000 500,000 9,935,000
2018 Public Facilities General 3.00%-5.00% 2038 1 6,000,000 13,865,000 605,000 13,260,000
2019 Public Facilities General 3.00%-5.00% 2039 1 1,000,000 9,910,000 395,000 9,515,000
2019 Refunding Bonds General 4.00%-5.00% 2029 1 4,236,594 10,711,254 1,305,682 9,405,572
2020 Public Facilities General 2.00%-5.00% 2040 9 ,000,000 8,391,475 313,975 8,077,500
2021 Public Facilities General 1.50%-5.00% 2041 1 3,000,000 12,138,989 637,634 11,501,355
2021 Refunding Bonds General 1.50%-5.00% 2030 1 0,835,995 8,964,639 933,196 8,031,443
2022 Public Facilities General 3.375%-5.00% 2043 7 ,800,000 7,800,000 390,000 7,410,000
2015 Refunding Facilities (2006 Bonds) Due from PHA 2.00%-3.00% 2027 2 40,112 107,757 25,628 82,129
2019 Refunding Facilities (2009 Bonds) Due from PHA 4.00%-5.00% 2029 4 45,590 335,250 40,866 294,384
2014 Public Facilities Due from other Counties 2.00%-4.00% 2034 4 ,800,000 3,088,165 229,388 2,858,777
Subtotal Bonds Payable 121,817,597 8,717,776 113,099,821
Notes Payable
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 5 10,617 224,667 20,425 204,242
State of Maryland - Narrows Pointe Spec. Rev. 0.00% 2037 5 25,318 383,474 27,391 356,083
Subtotal Notes Payable 6 08,141 4 7,816 5 60,325
Subtotal Bonds and Notes Payable 122,425,738 8,765,592 113,660,146
Bond Premiums 10,434,055 872,744 9,561,311
Subtotal Governmental Activities Debt 132,859,793 9,638,336 123,221,457
Lease Liability 614,668 62,314 552,354
Subscription Liability 1,178,880 298,044 880,836
OPEB 26,810,247 - 26,810,247
Net Pension Liability 32,570,299 - 32,570,299
LOSAP Liability 7,757,868 - 7,757,868
Compensated Absences 3,625,663 2,144,941 1,480,722
Total Governmental Activities $ 205,417,418 $ 12,143,635 $ 193,273,783
81

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of June 30, 2023 for
governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2024 $ 8,717,776 $ 4,371,049 $ 1 3,088,825 $ 47,816 $ - $ 47,816
2025 9,081,655 4,019,195 1 3,100,850 47,816 - 47,816
2026 9,449,130 3,627,819 1 3,076,949 47,816 - 47,816
2027 9,836,236 3,229,932 1 3,066,168 47,816 - 47,816
2028 8,547,050 2,815,797 1 1,362,847 47,816 - 47,816
2029 - 2033 39,186,138 8,975,922 4 8,162,060 239,080 - 239,080
2034 - 2038 28,038,710 3,196,368 3 1,235,078 129,981 - 129,981
2039 - 2043 8,960,902 411,903 9 ,372,805 - - -
$ 121,817,597 $ 30,647,985 $ 1 52,465,582 $ 608,141 $ - $ 608,141
82

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2023 for business-type activities are comprised of the
following, as well as lease liability, other post-employment benefit obligation, net pension liability, and compensated
absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2023 One Year One Year
Golf Course
2016 Public Facilities Bonds 2.00%-4.00% 2036 $ 85,636 $ 79,904 $ 4,419 $ 75,485
Bond Premiums 5,076 362 4,714
Subtotal Golf Course 84,980 4,781 80,199
Bay Bridge Airport
2014 Public Facilities Bonds 2.00%-4.00% 2034 964,940 643,368 47,789 595,579
2015 Public Facilities Bonds 3.00%-5.00% 2036 577,244 506,762 30,208 476,554
2015 Refunding Bonds 2.00%-5.00% 2027 173,556 77,889 18,524 59,365
2019 Refunding Bonds 4.00%-5.00% 2029 92,167 69,344 8,453 60,891
2020 Public Facilities Bonds 2.00%-5.00% 2040 22,686 23,525 1,026 22,499
2021 Public Facilities Bonds 1.50%-5.00% 2041 26,594 26,594 2,659 23,935
2021 Refunding Bonds 1.50%-5.00% 2030 11,134 9,212 959 8,253
Bond Premiums 68,138 7,485 60,653
Subtotal Airport 1,424,832 117,103 1,307,729
Public Landings and Marinas
2015 Refunding Bonds 2.00%-5.00% 2027 24,707 11,088 2,637 8,451
2019 Refunding Bonds 4.00%-5.00% 2029 490,649 369,151 44,999 324,152
2021 Refunding Bonds 1.50%-5.00% 2030 67,871 56,150 5,845 50,305
2021 Public Facilities 3.375%-5.00% 2043 194,123 184,417 9,706 174,711
Bond Premiums 75,744 9,766 65,978
Subtotal Public Landings and Marinas 696,550 72,953 623,597
Sanitary District
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 3,931,903 971,990 2,959,913
Maryland Water Quality-SKI Phase One 0.80% 2049 29,342,242 27,444,172 960,439 26,483,733
Maryland Water Quality-SKI Phase Two 0.80% 2053 3,946,501 3,946,501 186,481 3,760,020
Subtotal Sanitary District 35,322,576 2,118,910 33,203,666
Total Business-Type Activities Debt 37,528,938 2,313,747 35,215,191
Lease Liability 144,381 33,666 110,715
OPEB 5,854,976 - 5,854,976
Net Pension Liability 2,690,703 - 2,690,703
Compensated Absences 558,231 330,249 227,982
Total Business-Type Activities $ 46,777,229 $ 2,677,662 $ 44,099,567
83

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2023, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2024 $ 177,224 $ 74,971 $ 2 52,195 $ 2,118,910 $ 4 15,594 $ 2,534,504
2025 183,343 67,802 2 51,145 2,137,806 4 02,725 2,540,531
2026 190,871 60,326 2 51,197 2,156,871 3 83,658 2,540,529
2027 198,767 52,916 2 51,683 2,161,343 3 64,419 2,525,762
2028 182,948 44,699 2 27,647 1,184,065 2 96,755 1,480,820
2029 - 2033 773,861 123,477 8 97,338 6,063,934 1 ,340,163 7,404,097
2034 - 2038 301,289 19,864 3 21,153 6,310,404 1 ,093,694 7,404,098
2039 - 2043 49,101 1,933 5 1,034 6,486,233 8 37,206 7,323,439
2044 - 2048 - - - 5,722,674 4 38,035 6,160,709
2049 - 2053 - - - 980,336 5 9,992 1,040,328
$ 2,057,404 $ 445,988 $ 2 ,503,392 $ 35,322,576 $ 5 ,632,241 $ 40,954,817
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
In fiscal year 2023, the County began borrowing funds through the Maryland Water Quality Financing Administration for
phase two of the Southern Kent Island (SKI) Sanitary Project. The total loan amount for phase two will be approximately
$6.3 million and funds will be disbursed as the project costs are incurred. Principal payments will begin after the final draw
and the loan will be repaid over 30 years at an interest rate of 0.80%. In fiscal year 2023, the County received $3,946,501 as
part of this loan. The total amount outstanding as of June 30, 2023 was $3,946,501.
84

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In May 2013, Queen Anne’s County adopted Resolution No. 13-04, which updated and replaced Resolution No. 09-13, to
continue a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. This policy
requires that the County’s Director of Budget and Finance: (1) prepare a six-year capital project plan each year; (2) propose
an amount to be transferred from the General Fund operating balances to the General Capital Projects Fund to serve as pay-
as-you-go funding in the latter Fund, in order to lessen the need for future County debt; (3) limit the County’s non-bonded
indebtedness to $8.0 million for general operating expenses or capital improvements; and (4) certify that the sum of
outstanding general bonded debt and any new general obligation debt is 2.5% or less of the total taxable assessable base and
is $3,000 or less per capita. This policy also stipulates that although there is some flexibility as to the acceptable percentage
of debt service to general fund expenditures, and no absolute limit has been established by the rating agencies or the
Government Finance Officers Association, anything above 12% of total general fund expenditures would be a cause to
carefully monitor debt service. In addition to the debt policy, the Spending Affordability Committee recommended that the
limit of debt service to general fund expenditures should be limited to 10% and the County Commissioners have adopted that
as a limit.
Queen Anne’s County has complied with the above policy and has not had any violations. For calculations relating to this
local debt policy, see Table 12-b in the Statistical Section of this document.
NOTE 10 – LEASES
PRIMARY GOVERNMENT
The County implemented guidance of GASB 87, Leases, at July 1, 2021 for accounting and reporting of leases. The County
uses its incremental borrowing rate to determine the initial value of the lease receivable and corresponding deferred inflows.
County as Lessor
The County’s Governmental Activities entered into various lease agreements to lease land for cultivation and other similar
purposes. The County received a combination of annual, semi-annual, and monthly payments from these leases ranging from
$662 to $17,225 during the year. These leases typically have variable payments that increase each year or each successive
renewable lease term by a set percentage rate included in the lease agreement. The County has options to extend which
typically are in five-year increments. The County has considered the probability of exercising the lease renewal options in
the initial calculation of the lease.
The following is a summary of Governmental Activities lease receivable and the corresponding deferred inflow:
* As Restated Retirements
Balance and Balance
Governmental Activities June 30, 2022 Additions Repayments June 30, 2023
Lease Receivable $ 909,715 $ 3 63,334 $ 169,359 $ 1,103,690
Lease Receivable deferred inflows $ (864,597) $ (363,334) $ (159,658) $ (1,068,273)
For the year ended June 30, 2023, rental and interest income associated with the governmental activities lease receivable was
approximately $160,000 and $1,800, respectively.
85

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 10 – LEASES (CONTINUED)
The County’s Sanitary District has entered into various lease agreements to lease land near County water towers for antenna
sites. The County received monthly payments from these leases ranging from $273 to $3,101 during the year. These leases
typically have variable payments that increase each year by a set percentage rate included in the lease agreement. The
County has options to extend which typically are in five-year increments. The County has considered the probability of
exercising the lease renewal options in the initial calculation of the lease.
The County’s Bay Bridge Airport has entered into various lease agreements to lease land and/or facilities at the airport. The
County received monthly payments from these leases ranging from $470 to $1,150 during the year. These leases typically
have variable payments that increase each year by a set percentage rate included in the lease agreement. The County has
options to extend which typically are in one-year increments. The County has considered the probability of exercising the
lease renewal options in the initial calculation of the lease.
The following is a summary of Business-Type activities lease receivable and the corresponding deferred inflow:
* As Restated Retirements
Balance and Balance
Business-Type Activities June 30, 2022 Additions Repayments June 30, 2023
Sanitary District - Lease Receivable $ 1,580,292 $ - $ 150,037 $ 1,430,255
Bay Bridge Airport - Lease Receivable 173,002 - 27,931 145,071
Total lease receivable $ 1,753,294 $ - $ 177,968 $ 1,575,326
Sanitary District - Deferred inflows $ (1,568,362) $ - $ (160,717) $ (1,407,645)
Bay Bridge Airport - Deferred inflows (171,805) - (29,419) (142,386)
Total lease receivable deferred inflows $ (1,740,167) $ - $ (190,136) $ (1,550,031)
For the year ended June 30, 2023, rental and interest income associated with the business-type activities lease receivable was
approximately $180,000 and $5,000, respectively.
County as Lessee
The County has entered into various agreements to lease land and facilities for their public works department. An initial
lease liability was recorded in the amount of $638,500 for all new lease agreements entered into in the current year. The
County is required to make both fixed and variable payments that range from $9,000 to $25,000 for the current year. Leases
for which have variable payments will increase at a rate of 2% each year until lease termination. The County has no
extension or termination options present in these agreements.
The County has entered into various agreements to lease land and equipment for their enterprise funds. An initial lease
liability was recorded in the amount of $142,748 for all new leases entered into in the current year. The County is required to
make annual fixed payments ranging from $1,600 to $6,000 for leases in the scope of GASB 87. The County has no
extension or termination options present in these agreements.
86

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 10 – LEASES (CONTINUED)
The future minimum lease payments are approximately as follows:
Governmental Activities Business-Type Activities
Principal Interest Total Principal Interest Total
2024 $ 6 2,314 $ 16,023 $ 78,337 $ 33,666 $ 2 ,973 $ 36,639
2025 5 5,401 14,448 69,849 27,922 2 ,318 30,240
2026 5 8,224 12,792 71,016 28,590 1 ,650 30,240
2027 6 1,154 11,052 72,206 29,274 9 66 30,240
2028 5 5,193 9,436 64,629 24,929 2 71 25,200
Thereafter 3 22,382 19,818 342,200 - - -
Total $ 6 14,668 $ 83,569 $ 698,237 $ 144,381 $ 8 ,178 $ 152,559
For the year ended June 30, 2023, interest expense for governmental and business-type activities lease liability was $18,858
and $387, respectively.
In fiscal year 2019, Queen Anne’s County entered into an agreement with the Division of Housing and Community Services
(DHCS) to lease property from DHCS for $1 per year for 25 years.
COMPONENT UNITS
BOARD OF EDUCATION
Financed Purchases
The Board has entered into non-cancelable contracts to finance performance contracting equipment that transfer ownership at
the end of the contract term, January 2028. Thus the Board has recorded the related obligations and the related assets in the
appropriate funds.
The assets acquired and capitalized as fixed assets under financed purchases are as follows:
Equipment, at cost $ 3,246,662
Less: accumulated depreciation (2,284,983)
Total $ 961,679
Interest expense related to the above finance leases was approximately $36,000 for the year ended June 30, 2023. The future
minimum lease obligations and net present value of these minimum lease payments as of June 30, 2023 were as follows:
Year ended June 30:
2024 $ 250,989
2025 258,519
2026 266,275
2027 274,263
2028 203,553
Thereafter -
Total minimum lease payments 1,253,599
Less: amount representing interest ( 83,598)
Present value of minimum financed purchase payments $ 1,170,001
87

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 10 – LEASES (CONTINUED)
Intangible Right-to-Use Assets
The Board implemented the guidance of GASB No. 87, Leases, at July 1, 2021 for accounting and reporting leases that
had previously been reporting as operating leases and recognized the value of copiers leased under long-term contracts
along with a related liability.
During fiscal year 2023, the Board entered into copier lease agreements. Payments under these leases total approximately
$65,000 per year for leases that expire in fiscal year 2027 and $31,000 per year for leases expiring in fiscal year 2025.
For purposes of discounting future payments on these leases the Board used its incremental borrowing rate in place at the
time of lease inception of 3.75%.
The leased equipment and accumulated amortization of the right-to-use assets are outlined in Note 6.
Minimum lease payments on copiers over the next five years are as follows:
Lease Payments to Maturity
Copiers
Principal Interest Total
2024 $ 85,350 $ 11,135 $ 96,485
2025 88,551 7,934 96,485
2026 60,379 4,613 64,992
2027 62,641 2,349 64,990
2028 - - -
$ 296,921 $ 26,031 $ 322,952
LIBRARY
Leases Payable
In December 2019, the Library entered into an operating lease with Affordable Business Systems, Inc. for use of a
photocopier with an expiration date of December 2024. As of June 30, 2023, total lease liabilities were $8,337, which
represents the present value of the remaining lease payments of $8,832, discounted using the Library’s incremental
borrowing rate of 4%.
Following are the principal and interest requirements through maturity of the lease liabilities under this non-cancelable
operating lease:
Year ended June 30: Principal Interest
2024 $ 5 ,735 $ 3 33
2025 2 ,602 1 62
$ 8 ,337 $ 4 95
88

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS
The County implemented guidance of GASB 96, Subscription-Based Information Technology Arrangements (SBITAs),
July 1, 2022 for accounting and reporting of subscription arrangements using the modified retrospective method.
The County enters into various agreements in order to use web software and licensing services. An initial subscription
liability was recorded in the amount of $1,503,069. As of June 30, 2023, the value of the subscription liability is
$1,178,880. The County is required to make annual fixed payments ranging from $8,146 to $298,043 for subscriptions in
the scope of GASB 96. The county uses its incremental borrowing rate to determine the initial value of the right-to-use
asset and corresponding subscription liability. The County has options to extend which typically are in one-year
increments. The County has considered the probability of exercising the lease renewal options in the initial calculation of
the subscription.
The future minimum subscription payments are as follows:
Governmental Activities
Principal Interest Total
2024 $ 298,044 $ 28,249 $ 326,293
2025 305,256 21,022 326,278
2026 284,425 13,618 298,043
2027 291,155 6,889 298,044
2028 - - -
Thereafter - - -
Total $ 1,178,880 $ 69,778 $ 1,248,658
For the year ended June 30, 2023, interest expense related to the subscription liability was $28,249.
89

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 12 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES
A. RESTRICTED ASSETS AND RELATED LIABILITIES
PRIMARY GOVERNMENT
BUSINESS-TYPE ACTIVITIES
Queen Anne’s County Sanitary District
Restricted Fund - The County Commissioners created a restricted fund within the Sanitary District Enterprise Fund in
November of 1989 by enabling legislation. Revenue sources to the fund are sales of water and sewer allocations and interest
earned on investments. Authorized uses of restricted funds are major capital expenses for repairs, construction, plant
expansion, debt service, or other similar uses within the Sanitary District. To date, such funds have been used almost
exclusively for debt service.
Debt Service Fund - Principal and interest payments for water and wastewater debt used to expand the service area are
payable primarily from water and sewer special benefit assessments. These assessments, made at the time the expansion is
ready for use, are created by enabling legislation and amortized over the same life as underlying debt. They constitute a lien
on the served property and may be prepaid at any time. The amount of assessments collectable in future years is recorded as
benefit assessments receivable. A portion of those assessments receivable is not due currently and is recorded as unearned
revenue.
Water Quality Revolving Loan Fund debt covenants stipulate that sufficient financial resources must be available in the Debt
Service Fund as of June 30 of each year to cover the subsequent year’s debt service payments. If such resources are not
available at that time, the covenants require that the County increase service rates, impose benefit assessments, or otherwise
increase financial resources so that debt service payments are covered before they are due throughout the year.
The assets and related liabilities restricted for the above purposes at June 30, 2023 are as follows:
SANITARY DISTRICT
RESTRICTED DEBT SERVICE
ASSETS FUND FUND TOTAL
Current Restricted Assets
Restricted Equity in Pooled Cash $ 2 4,763,246 $ 1 ,703,815 $ 2 6,467,061
Restricted Accounts Receivable (Net) 3 ,076,750 8 93,250 3 ,970,000
Total Current Restricted Assets 2 7,839,996 2 ,597,065 3 0,437,061
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 9 51,442 1 5,481,956 1 6,433,398
Total Noncurrent Restricted Assets 9 51,442 1 5,481,956 1 6,433,398
DEFERRED INFLOWS OF RESOURCES
Unavailable Water and Sewer Assessments 9 51,442 1 5,481,957 1 6,433,399
Total Deferred Inflows of Resources 9 51,442 1 5,481,957 1 6,433,399
NET POSITION
Amounts Restricted for:
Debt Service - 2 ,597,064 2 ,597,064
Unrestricted Amounts 2 7,839,996 - 2 7,839,996
Total Net Position $ 2 7,839,996 $ 2 ,597,064 $ 3 0,437,060
90

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 12 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
B. RESTRICTED NET POSITION
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets for governmental activities, is calculated as follows:
Governmental Activities
Net Assets Invested in Capital Assets $ 195,514,937
Total Debt excluding Compensated Absences, Pension, OPEB, and LOSAP Obligations (132,859,793)
Deferred Charge on Refunding 327,362
Add back: Debt relating to Board of Education Assets 42,257,297
Add back: Unspent portion of Bond Proceeds for Board of Education debt 5,971,918
Add back: Unspent portion of Bond Proceeds for Governmental debt 5,136,300
Add back: Debt relating to Chesapeake College 4,729,731
Add back: Debt relating to PHA 443,007
Add back: Debt relating to non-capital assets (Dredging) 608,141
Add back debt unrelated to Capital Assets 59,146,394
Net Investment in Capital Assets $ 122,128,900
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets for business-type activities, are as follows:
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
SEWER WATER BAY BRIDGE ENTERPRISE ENTERPRISE
ASSETS OPERATIONS OPERATIONS TOTAL AIRPORT FUNDS FUNDS
Capital Assets $ 146,688,935 $ 38,688,850 $ 185,377,785 $ 22,576,886 $ 11,277,476 $ 219,232,147
Less Accumulated Depreciation ( 59,198,975) (13,820,606) ( 73,019,581) (6,861,099) (2,562,821) (82,443,501)
Total Capital Assets, Net of Depreciation 87,489,960 24,868,244 112,358,204 15,715,787 8,714,655 136,788,646
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - - 4,129 588 4,717
Total Deferred Outflows of Resources - - - 4,129 588 4,717
LIABILITIES
Lease Payable 6,397 - 6,397 - 137,984 144,381
Bonds/Notes Payable 35,322,576 - 35,322,576 1,424,832 781,530 37,528,938
Total Liabilities 35,328,973 - 35,328,973 1,424,832 919,514 37,673,319
DEFERRED INFLOWS OF RESOURCES
Bond Refundings - - - 294 1,561 1,855
Total Deferred Inflows of Resources - - - 294 1,561 1,855
NET POSITION
Net Investment in Capital Assets $ 52,160,987 $ 24,868,244 $ 77,029,231 $ 14,294,790 $ 7,794,168 $ 99,118,189
91

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 12 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
C. FUND BALANCES
PRIMARY GOVERNMENT
Governmental fund balances are composed of the following:
Total
General General Roads Grants Non-Major Governmental
Governmental Funds Fund Capital Capital Fund Governmental Funds
Nonspendable
Inventory $ - $ - $ - $ - $ 1,274,659 $ 1,274,659
Prepaid Items 197,921 - - - - 197,921
Other 44,955 - - - - 44,955
Subtotal Nonspendable 242,876 - - - 1,274,659 1,517,535
Restricted
Rainy Day Fund 14,511,971 - - - - 14,511,971
Employee Benefits - LOSAP 5,334,870 - - - - 5,334,870
Donor-Specified Purposes 59,884 33,148 - - - 93,032
Mosquito Control 89,622 - - - - 89,622
Unspent Bond Proceeds - 11,108,218 - - - 11,108,218
Impact Fees - 245,185 - - - 245,185
Vehicle Acquisition - 46,127 - - - 46,127
Department of Aging - - - - 955 955
House and Community Services - - - - 2,821,652 2,821,652
Critical Areas - - - - 372,689 372,689
Sheriff's Drug Task Force - - - - 155,155 155,155
Inmate Welfare - - - - 186,761 186,761
Agricultural Transfer - - - - 2,027,217 2,027,217
Rural Legacy - - - - 419,805 419,805
Dredging Special Assessments - - - - 5,815 5,815
Kent Narrows - - - - 184,700 184,700
Subtotal Restricted 19,996,347 11,432,678 - - 6,174,749 37,603,774
Committed
House and Community Services - - - - 8,392,992 8,392,992
Revolving Loan Fund - - - - 90,000 90,000
Economic Development Incentive - - - - 934,972 934,972
School Impact Fees - - - - 11,676,570 11,676,570
Fire Company Impact Fees - - - - 602,031 602,031
Parks and Recreation Impact Fees - - - - 569,903 569,903
Revenue Stabilization Fund 9,069,982 - - - - 9,069,982
Encumbrances - - - - - -
Economic Development - 1,076,841 - - - 1,076,841
Rubble Surcharge - 782,490 - - - 782,490
Developer Exactions - 3,952,567 909,241 - - 4,861,808
Subtotal Committed 9,069,982 5,811,898 909,241 - 22,266,468 38,057,589
Assigned
Encumbrances - 12,795,214 4,040,720 - - 16,835,934
Subsequent Years' Expenditures - 11,038,595 - - - 11,038,595
Department of Aging - - - - 111,672 111,672
Roads Operating - - - - 52,716 52,716
Community Partnerships for Children - - - - 66,218 66,218
Law Library - - - - 505,143 505,143
Capital Projects - 18,587,832 485,001 - - 19,072,833
Loans Receivable - 1,668,338 - - - 1,668,338
Subtotal Assigned - 44,089,979 4,525,721 - 735,749 49,351,449
Unassigned
General Fund 39,494,554 - - - - 39,494,554
Subtotal Unassigned 39,494,554 - - - - 39,494,554
Total Governmental Funds Balances $ 68,803,759 $ 61,334,555 $ 5,434,962 $ - $ 30,451,625 $ 166,024,901
92

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 12 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
C. FUND BALANCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Encumbrances included in the General Capital and Roads Capital funds are for the following purposes:
General Roads
Capital Capital
General Government $ 5,143,676 $ -
Public Safety 537,530 -
Public Works 1,973,648 -
Parks & Recreation 1,716,398 -
Health and Social Services 575,953 -
Education and Library 2,046,873 -
Conservation of Natural Resources 325,567 -
Economic/Community Development 475,569 -
Resurfacing Contracts and Materials - 2,845,448
Roads Construction Equipment - 1,195,272
Total encumbrances $ 12,795,214 $ 4,040,720
NOTE 13 - RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; and natural disasters. The government carries commercial insurance to cover such risks. Certain assets of the
County such as roads, bridges, and other infrastructure are not insurable due to their nature.
General Insurance Coverage - The County is a participant in the Local Government Insurance Trust (LGIT), which is a
consortium of Maryland local governments created to provide insurance coverage and services to Maryland local
governments. The LGIT provides general liability, public officials’ liability, fleet insurance, and building and property
insurance to its members.
Workmen’s compensation and fidelity insurance are obtained from various commercial insurance companies.
Risk Sharing - Subscribers to coverage provided by LGIT share the risk among participants of the pools. As a result, the
County's annual premium requirements will be affected by the loss experience of the various insurance pools in which it
participates. Also, the County may be subject to additional assessments from time to time. These amounts would be
recorded as expenditures when they are probable and can be reasonably estimated. Conversely, favorable performance of
certain insurance pools may result in reduced premiums.
Health Insurance - Effective with the 1996 fiscal year, the County joined together with other Eastern Shore county
governments, libraries, and Boards of Education to form the Eastern Shore of Maryland Education Consortium Health
Insurance Alliance (ESMEC), a public entity risk pool currently operating as a common risk management and insurance
program for health insurance coverage. CareFirst BlueCross BlueShield, of Maryland, administers this program.
The agreement for formulation of the alliance provides that the pool will be self-sustaining through member premiums.
In addition to the annual premiums, the pooling agreement provides for additional assessments, if needed, but not to
exceed certain limits. No additional assessments were needed for fiscal year 2023 and, as of the date of this report, it is
believed that there are no outstanding claims in excess of the equity of the trust.
Settlements – In fiscal years 2021, 2022 and 2023, settlements have not exceeded insurance coverage for any type of
policy in effect.
93

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne’s County, Maryland, and its related agencies are covered
by one of the statewide contributory pension systems of the State of Maryland.
Maryland State Retirement and Pension Systems
Organization
The State Retirement Agency is the administrator of the Maryland State Retirement and Pension System (the System). The
System was established by the State Personnel and Pensions Article of the Annotated Code of Maryland to provide retirement
allowances and other benefits to State employees, teachers, police, judges, legislators, and employees of participating
governmental units. Responsibility for the System’s administration and operation is vested in a 15-member Board of
Trustees. The System is made up of two cost-sharing employer pools: the “State Pool” and the “Municipal Pool”. The State
Pool consists of State agencies, boards of education, community colleges, and libraries. The Municipal Pool consists of
participating governmental units that elected to join the System. Neither pool shares in each other’s actuarial liabilities, thus
participating governmental units that elect to join the System (the “Municipal Pool”) share in the liabilities of the Municipal
Pool only. Currently, the System has 153 participating employers in addition to the State.
The State of Maryland is the statutory guarantor for the payment of all pensions, annuities, retirement allowances, refunds,
reserves, and other benefits of the System. The State is obligated to annually pay into the accumulation fund of each State
system at least an amount that, when combined with the State’s accumulation funds, is sufficient to provide benefits payable
under each plan during that fiscal year. The System is accounted for as one defined benefit plan as defined in accordance
with accounting principles generally accepted in the United States of America. Additionally, the System is fiscally
dependent on the State by virtue of the legislative and executive controls exercised with respect to its operations, policies,
and administrative budget. Accordingly, the System is included in the State’s reporting entity and disclosed in its financial
statements as a pension trust fund.
The System is comprised of the Teachers’ Retirement and Pension Systems, Employees’ Retirement and Pension Systems,
State Police Retirement System, Judges’ Retirement System, and the Law Enforcement Officers’ Pension System (LEOPS).
The following groups of employees participate in:
Employees Plan
Board of Education – regular employees Employees System
Board of Education – teachers Teachers System
Library Teachers System
Queen Anne’s County:
Elected officials Employees System
Sheriff’s Deputies LEOPS
Regular employees Employees System
The System is a cost sharing multiple-employer defined benefit pension plan.
94

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Covered Members
Teachers’ Retirement System
The Teachers’ Retirement System was established on August 1, 1927, to provide retirement allowances and other benefits to
teachers in the State. Effective January 1, 1980, the Teachers’ Retirement System was closed to new members and the
Teachers’ Pension System was established. As a result, teachers hired after December 31, 1979, became members of the
Teachers’ Pension System as a condition of employment. On or after January 1, 2005, an individual who is a member of the
Teachers’ Retirement System may not transfer membership to the Teachers’ Pension System.
Employees’ Retirement System
On October 1, 1941, the Employees’ Retirement System was established to provide retirement allowances and other benefits
to State employees, elected and appointed officials and the employees of participating governmental units. Effective January
1, 1980, the Employees’ Retirement System was essentially closed to new members and the Employees’ Pension system was
established. As a result, State employees (other than correctional officers) and employees of participating governmental units
hired after December 31, 1979, became members of the Employees’ Pension System as a condition of employment, while all
State correctional officers and members of the Maryland General Assembly continue to be enrolled as members of the
Employees’ Retirement System. On or after January 1, 2005, an individual who is a member of the Employees’ Retirement
System may not transfer membership to the Employees’ Pension System.
The Law Enforcement Officers’ Pension System (LEOPS)
The Law Enforcement Officers’ Pension System (LEOPS) was established on July 2, 1990, to provide retirement allowances
and other benefits for certain State and local law enforcement officers. This System includes both retirement plan and
pension plan provisions which are applicable to separate portions of the System’s membership. The retirement plan
provisions are only applicable to those members who, on the date they elected to participate in LEOPS, were members of the
Employees’ Retirement System. This System’s pension plan provisions are applicable to all other participating law
enforcement officers.
Summary of Significant Plan Provisions
All plan benefits are specified by the State Personnel and Pensions Article of the Annotated Code of Maryland. For all
individuals who are members of the Employees’, Teachers’, Correctional Officers’ or State Police Retirement System on or
before June 30, 2011, retirement allowances are computed using both the highest three years’ Average Final Compensation
(AFC) and the actual number of years of accumulated creditable service. For individuals who become members of the State
Police Retirement System or the Correctional Officers’ Retirement System on or after July 1, 2011, retirement allowances are
computed using both the highest five years’ AFC and the actual number of years of accumulated creditable service. For all
individuals who are members of the pension systems of the State Retirement and Pension System on or before June 30, 2011,
pension allowances are computed using both the highest three consecutive years’ AFC and the actual number of years of
accumulated creditable service. For any individual who becomes a member of one of the pension systems on or after July 1,
2011, pension allowances are computed using both the highest five consecutive year’s AFC and the actual number of years of
accumulated creditable service. Various retirement options are available under each system which ultimately determines how
a retiree’s benefit allowance will be computed. Some of these options require actuarial reductions based on the retiree’s
and/or designated beneficiary’s attained age and similar actuarial factors.
95

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
The member contribution rate for members of the Teachers’ Retirement Pension System and Employees’ Retirement Pension
System is 7% and 6% respectively, and 7% for members of the Law Enforcement Officers’ Pension system. The member
contribution rate for members of the Judges’ Retirement System is 8%.
In addition, the benefit attributable to service on or after July 1, 2011 in many of the pension systems now will be subject to
different cost-of-living adjustments (COLA) that is based on the increase in the Consumer Price Index (CPI) and capped at
2.5% or 1.0% based on whether the fair value investment return for the preceding calendar year was higher or lower than the
investment return assumption used in the valuation.
A brief summary of the retirement eligibility requirements of and the benefits available under the various systems in effect
during fiscal year 2021, are as follows:
Service Retirement Allowances
A member of either the Teachers’ or Employees’ Retirement System is generally eligible for full retirement benefits upon the
earlier of attaining age 60 or accumulating 30 years of creditable service regardless of age. The annual retirement allowance
equals 1/55 (1.81%) of the member’s AFC multiplied by the number of years of accumulated creditable service.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011, is eligible
for full retirement benefits upon the earlier of attaining age 62, with specified years of eligibility service, or accumulating 30
years of eligibility service regardless of age. An individual who becomes a member of either the Teachers’ or Employees’
Pension System on or after July 1, 2011, is eligible for full retirement benefits if the member’s combined age and eligibility
service equals at least 90 years or if the member is at least age 65 and has accrued at least 10 years of eligibility service.
For most individuals who retired from either the Teachers’ or Employees’ Pension System on or before June 30, 2006, the
annual pension allowance equals 1.2% of the member’s AFC, multiplied by the number of years of creditable service
accumulated prior to July 1, 1998, plus 1.4% of the member’s AFC, multiplied by the number of years of creditable service
accumulated subsequent to June 30, 1998. With certain exceptions, for individuals who are members of the Teachers’ or
Employees’ Pension System on or after July 1, 2006, the annual pension allowance equals 1.2% of the member’s AFC,
multiplied by the number of years of creditable service accumulated prior to July 1, 1998, plus 1.8% of the member’s AFC,
multiplied by the number of years of creditable service accumulated subsequent to June 30, 1998. Beginning July 1, 2011,
any new member of the Teachers’ or Employees’ Pension System shall earn an annual pension allowance equal to 1.5% of
the member’s AFC multiplied by the number of years of creditable service accumulated as a member of the Teachers’ or
Employee’s Pension System.
Exceptions to these benefit formulas apply to members of the Employees’ Pension System, who are employed by a
participating governmental unit that does not provide the 1998 or 2006 enhanced pension benefits or the 2011 reformed
pension benefits. The pension allowance for those members equals 0.8% of the member’s AFC up to the social security
integration level (SSIL), plus 1.5% of the member’s AFC in excess of the SSIL, multiplied by the number of years of
accumulated creditable service. For the purpose of computing pension allowances, the SSIL is the average of the social
security wage bases for the past 35 calendar years ending with the year the retiree separated from service.
96

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
A member of the Law Enforcement Officers’ Pension System is eligible for full retirement benefits upon the earlier of
attaining age 50 or accumulating 25 years of eligibility service regardless of age. The annual retirement allowance for a
member who is covered under the retirement plan provisions equals 1/50 (2.0%) of the member’s AFC multiplied by the
number of years of accumulated creditable service up to 30 years, plus 1/100 (1.0%) of the member’s AFC multiplied by the
number of years of accumulated creditable service in excess of 30 years. For members subject to the pension provisions, full
service pension allowances equal 2.0% of AFC up to a maximum of 60% (30 years of credit).
Vested Allowances
Any individual who is a member of the State Retirement and Pension System on or before June 30, 2011 (other than a judge
or a legislator), and who terminates employment before attaining retirement age but after accumulating 5 years of eligibility
service is eligible for a vested retirement allowance. Any individual who joins the State Retirement and Pension System on
or after July 1, 2011 (other than a judge or a legislator), and who terminates employment before attaining retirement age but
after accumulating 10 years of eligibility service is eligible for a vested retirement allowance. A member, who terminates
employment prior to attaining retirement age and before vesting, receives a refund of all member contributions and interest.
Early Service Retirement
A member of either the Teachers’ or Employees’ Retirement System may retire with reduced benefits after completing 25
years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree either attains
age 60 or would have accumulated 30 years of creditable service, whichever is less. The maximum reduction for a Teachers’
or Employees’ Retirement System member is 30%.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011 may retire
with reduced benefits upon attaining age 55 with a least 15 years of eligibility service. Benefits are reduced by 0.5% per
month for each month remaining until the retiree attains age 62. The maximum reduction for these members of the Teachers’
or Employees’ Pension System is 42%. An individual who becomes a member of either the Teachers’ or Employees’ Pension
System on or after July 1, 2011, may retire with reduced benefits upon attaining age 60 with at least 15 years of eligibility
service. Benefits are reduced by 0.5% per month for each month remaining until the retiree attains age 65. The maximum
reduction for these members of the Teachers’ or Employees’ Pensions System is 30%.
Members of the State Police, Judges’, Law Enforcement Officers’ and Local Fire and Police Systems are not eligible for
early service benefits.
Disability and Death Benefits
Generally, a member covered under retirement plan provisions who is permanently disabled after 5 years of service receives
a service allowance based on a minimum percentage (usually 25%) of the member’s AFC. A member covered under pension
plan provisions who is permanently disabled after accumulating 5 years of eligibility service receives a service allowance
computed as if service had continued with no change in salary until the retiree attained age 62. A member (other than a
member of the Maryland General Assembly or a judge, both of which are ineligible for accidental disability benefits) who is
permanently and totally disabled as the result of an accident occurring in the line of duty receives 2/3 (66.7%) of the
member’s AFC plus an annuity based on all member contributions and interest. Death benefits are equal to a member’s
annual salary as of the date of death plus all member contributions and interest.
97

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Adjusted Retirement Allowances
Retirement and pension allowances are increased annually to provide for changes in the cost of living according to prescribed
formula. Such adjustments for retirees are based on the annual change in the CPI. For the Teachers’ and Employees’
Retirement Systems (TRS/ERS) the method by which the annual COLA’s are computed depends upon elections made by
members who were active on July 1, 1984 (or within 90 days of returning to service, for members who were inactive on July
1, 1984) enabling the member to receive either an unlimited COLA, a COLA limited to 5% or a two part combination COLA
depending upon the COLA election made by the member.
Effective July 1, 1998, for Teachers’, Employees’, and LEOPS retirees, the adjustment is capped at a maximum 3%
compounded and is applied to all benefits which have been in payment for one year. The annual increase to pension
allowances for Employees’ Pension System retirees who were employed by a participating governmental unit that does not
provide enhanced pension benefits are limited to 3% of the initial allowance.
However, beginning July 1, 2011, for benefits attributable to service earned on or after July 1, 2011, in all of the systems
except the judges’ and legislators’ systems, the adjustment is capped in the lesser of 2.5% or the increase in CPI if the most
recent calendar year fair value rate of return was greater than or equal to the assumed rate. The adjustment is capped at the
lesser of 1% or the increase in CPI if the fair value return was less than the assumed rate of return. In years in which COLAs
would be less than zero due to a decline in the CPI, retirement allowances will not be adjusted. COLAs in succeeding years
are adjusted until the difference between the negative COLA that would have applied and the zero COLA is fully recovered.
Actuarial Assumptions
The total pension liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions,
applied to all periods included in the measurement.
Inflation In the 2022 actuarial valuation, 2.25% general, 2.75% wage.
In the 2021 actuarial valuation, 2.25% general, 2.75% wage.
Salary Increases In the 2022 actuarial valuation, 2.75% to 11.25%.
In the 2021 actuarial valuation, 2.75% to 9.25%.
Investment Rate of Return In the 2022 actuarial valuation 6.80%.
In the 2021 actuarial valuation 6.80%.
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2019 valuation pursuant to the 2019
experience study for the period July 1, 2014 to July 30, 2018.
Mortality Various versions of the Pub- 2010 Mortality Tables for males and females
with projected generational mortality improvements based on the MP-2018
fully generational mortality improvements scale for males and females.
98

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Investments
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of geometric real rates of return were adopted by the Board of Trustees after considering input from
the System’s investment consultant(s) and actuary(s). For each major asset class that is included in the System’s target asset
allocation, these best estimates are summarized in the following table:
Long-Term
Expected Real
Asset Class Target Allocation Rate of Return
Public Equity 34% 6.0%
Private Equity 16% 8.4%
Rate Sensitive 21% 1.2%
Credit Opportunity 8% 4.9%
Real Assets 14% 5.2%
Absolute Return 7% 3.5%
Total 100%
The above was the Board of Trustees adopted asset allocation policy and best estimate of geometric real rates of return for
each major asset class as of June 30, 2022.
For the years ended June 30, 2022, the annual money-weighted rate of return on pension plan investments, net of the pension
plan investment expense, was (2.97%). The money-weighted rate of return expresses investment performance, net of
investment expense, adjusted for the changing amounts actually invested.
Discount rate
A single discount rate of 6.80% was used to measure the total pension liability. The single discount rate was based on the
expected rate of return on pension plan investments of 6.80%. The projection of cash flows used to determine this single
discount rate assumed that plan member contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member
rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
99

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan’s
net pension liability, calculated using a single discount rate of 6.80%, as well as what the plan’s net pension liability would
be if it were calculated using a single discount rate that is 1% point lower or 1% point higher:
1% Decrease Discount Rate 1% Increase
System 5.80% 6.80% 7.80%
County $ 54,101,597 $ 35,261,002 $ 19,627,674
Board of Education 9,040,619 5,892,271 3,279,872
Teachers’ and Employees’ Retirement Systems and Teachers’ and Employees’ Pension Systems
Teachers’ Retirement and Pension Systems:
In accordance with Maryland Senate Bill 1301, Budget Reconciliation and Financing Act of 2012, the Board is required to
pay the State 100% of the normal cost portion of the total pension cost for teachers. The normal cost is the portion of the total
retirement benefit cost that is allocated to the current year of the employee’s service. The related payment for fiscal year
ending 2023 was $2,824,266. In addition, the State of Maryland contributed $5,467,495 on behalf of the Board. The Board
has recognized the State on-behalf payments as both a revenue and expense.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to
Pensions
Because the State of Maryland pays the unfunded liability for the Teachers’ Systems on behalf of the Board and Library, and
the Board pays the normal cost for the Teachers’ Systems, the Board and Library are not required to record its’ share of the
unfunded pension liability for the Teachers’ Systems, the State of Maryland is required to record that liability. The Board is
required to record a liability for the Employees’ Systems.
At June 30, 2023, the Board of Education reported a liability for its proportionate share of the net pension liability that
reflected a reduction for State pension support provided to the Board. The amount recognized by the Board as its
proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability that
was associated with the Board were as follows:
Board's proportionate share of the net pension liability (Employees' System) $ 5,892,271
State's proportionate share of the net pension liability (Teachers' System) 52,667,002
Total $ 58,559,273
100

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The County’s proportion of the net pension liability was
calculated as follows by the System(s):
1. Calculate the net pension liability for the entire System in accordance with the provisions of GASB No. 67.
2. Determine the total contributions to the System by the State and PGUs, inclusive of any underfunding of
contributions.
3. Based on the number of participants at each Board of Education, calculate the difference between what each Board
would have contributed if they funded at the rate of all other participating governments and what the Board actually
contributed. The difference between what the Board contributed and what they would have contributed if they
funded at the rate of the other participating governments, is then added to the total contribution to the System, to
calculate the System’s adjusted calculation.
4. Calculate for each participating government, their percentage of the adjusted System contribution by dividing the
total adjusted System contribution into each PGU’s contribution.
5. Provide each PGU its adjusted percentage of contribution and the System’s net pension liability and other related
amounts under the GASB No. 67 requirements.
At June 30, 2023, the County reported the following related to pensions:
Board County
Employer's proportionate (percentage) of the collective net pension liability 0.029% 0.176%
Employer's proportionate share of the collective net pension liability $ 5,892,271 $ 35,261,002
Pension expense recognized by the employer for the year ended $ 3,369,190 $ 2,931,500
Defferred Defferred
Outflows of Inflows of
Resources Resources
County
Changes in assumptions $ 3,931,318 $ ( 355,382)
Net difference between projected and actual investment earnings - ( 106,790)
on pension plan investments
Differences between expected and actual experience - ( 2,517,362)
Change in proportion 5,590,368 ( 1,965,066)
Contributions subsequent to measurment date 4,782,356 -
Total $ 14,304,042 $ ( 4,944,600)
Board
Changes in assumptions $ 656,941 $ ( 59,386)
Net difference between projected and actual investment earnings
on pension plan investments - ( 17,845)
Differences between expected and actual experience - ( 420,663)
Change in proportion 565,776 -
Contributions subsequent to measurment date 730,514 -
Total $ 1,953,231 $ ( 497,894)
101

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 - RETIREMENT PLANS (CONTINUED)
The $4,782,356 and $730,514 of deferred outflows of resources resulting from the County and the Board’s contributions to
the Employees’ Systems subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the year ending June 30, 2024. Other amounts reported as deferred outflows of resources for the County will be amortized
over a five-year period, as follows:
Year ended June 30: Board County
2024 $ 105,969 $ 612,267
2025 109,329 632,375
2026 20,936 103,404
2027 499,854 3,334,053
2028 ( 11,265) ( 105,013)
$ 724,823 $ 4,577,086
Covered payroll refers to all compensation paid to active employees covered by the Systems.
Covered On-Behalf
Payroll By State
County $ 33,312,053 $ -
Board of Education 66,931,801 5,467,495
Library 1,200,081 186,708
Pension contributions made by the State of Maryland, on behalf of the Board of Education and the Library are recognized as
both revenue and expenditure.
The aggregate amount of pension expense is as follows:
Maryland State Retirement and Pension System $ 2,931,500
Length of Service Award Program ("LOSAP") 747,261
Aggregate amount of pension expense $ 3,678,761
102

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 15 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section
457. The Plan, available to all County employees, permits them to defer a portion of their salary until future years.
Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement,
death or unforeseeable emergency.
All amounts of compensation deferred under the plan; all property and rights purchased with those amounts; and all income
attributable to those amounts, property or rights are solely the property and rights of the participants. The County has no
liability for losses under the plan.
Investments are managed by the plan’s administrator based on several different investment options, or combinations thereof.
The choice of the investment option(s) to be used is made by each participant. The County has no management control over
the assets of the plan. Accordingly, per GASB Statement No. 32, the assets of the plan are not included in these financial
statements.
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS
PRIMARY GOVERNMENT
Other Post-Employment Benefit Trust (OPEB Trust)
In fiscal year 2015, the County Commissioners approved the County joining the MACo Pooled OPEB Investment Trust
Fund. A separate Trust document for the MACo OPEB Trust can be found on the MACo website at www.mdcounties.org.
Plan Reporting
The measurement date for GASB 74 is the Employer’s fiscal year end, June 30, 2023. Plan assets (Fiduciary Net Position)
are measured as of this date. The Total OPEB Liability (TOL) as of this date is based on an actuarial valuation as of January
1, 2023, with adjustments made for the half year difference. Adjustments include Service Cost, Interest on Total OPEB
Liability, and expected benefit payments during the year. This is also known as a roll-forward.
Under GASB 74, the Net OPEB Liability (NOL) is established as the difference between the Total OPEB Liability and the
Plan Fiduciary Net Position. The NOL is very much like the unfunded actuarial accrued liability that is developed for the
funding valuation, with adjustments for any time between the valuation date and the measurement date.
Relevant Dates
 Valuation Date: January 1, 2023
 Measurement Date: June 30, 2023
 Reporting Date: June 30, 2023
Plan Membership
The following is a summary of the plan membership as of January 1, 2023.
Active 439
Retired 290
Total 729
103

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Post-Employment Benefit Trust (OPEB Trust) (Continued)
PRIMARY GOVERNMENT
Plan Description
The County’s Other Post-Employment Benefit Plan (OPEB Plan) is an agent multiple-employer defined benefit healthcare
plan that covers retired employees of the primary government, the Queen Anne’s County Board of Education, and the Queen
Anne’s County Free Library. The Plan was established as specified in County Ordinance No. 09-12.
Plan descriptions and actuarial assumptions for each participant are described: (1) as follows for the primary government and
(2) in financial statements issued separately for all other participants.
The County’s Retiree Health Insurance Program provides medical insurance benefits to retirees and their eligible dependents.
The retiree and their dependents will receive a subsidy as outlined in the tables below provided that (1) the retiree retired
directly from County service with a County retirement/pension allowance, (2) has health insurance through the County prior
to retirement, (3) retired with at least 15 years of County service, and (4) the retiree elects to participate upon retirement.
Retirees who retire directly from County service with a County retirement/pension with less than 15 years of County service,
who have health insurance through the County prior to retirement and who elect to participate upon retirement are eligible for
the County’s Retiree Health Insurance Program however are not eligible for a subsidy.
Medical/Drug Plan
PPO (80/20), EPO (85/15), BCA (85/15), Medicare Supplement
Eligibility
Queen Anne’s County and Library employees are eligible to continue group insurance coverage after retirement provided
that:
a. Retiring employees have coverage in effect when they stop working.
b. Retirement commences on the first of the month, following the last day they are employed.
c. An employee must have been a permanent active employee. To receive a subsidy, must have at least 15 years of
service.
d. Eligibility for Retirement:
Non-LEOPS hired on or after 7/1/2011
 Rule of 90 (age plus service is at least 90), or
 Age 65 with 10 years of service, or
 Age 60 with 15 years of service
Non-LEOPS hired before 7/1/2011
 Age 55 with 15 years of service, or
 Age 62 with 5 years of service, or
 Age 63 with 4 years of service, or
 Age 64 with 3 years of service, or
 Age 65 with 2 years of service, or
 30 years of service (regardless of age)
104

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
LEOPS
 Age 50 (no service requirement), or
 25 years of service (no age requirement)
Retiree Payment
The employer subsidy is based on service, which medical plan you are enrolled in, retirement date and location.
For current County retirees receiving a 90% subsidy, they would continue to receive this subsidy rate, for all others:
Years of County Service Prior to EPO/BCA Total PPO Total Subsidy
Retirement Subsidy Percentage Percentage
Less than 15 years 0.0% 0.0%
At least 15 yrs but less than 18 60.0% 60.0%
At least 18 yrs but less than 21 70.0% 65.0%
At least 21 yrs but less than 24 80.0% 75.0%
24 years or more 85.00% 80.00%
Plan Changes Since Prior Valuation
There have been no changes in eligibility but there was a change in the cost sharing provisions since the prior valuation.
Actuarial Information
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, using the following actuarial
assumptions, applied to all periods included in the measurement:
 Investment Return: 6.00%, net of investment expense and including inflation
 Healthcare Trend: 6.00% initially for all plans, grading down to 4.25% for PPO, EPO, and BCA plans ultimate
Mortality rates are based on the PUB2010G Headcount tables with Scale SSA applied on a generational basis. PUB2010G
Headcount Disabled tables are used for those on disability, if applicable.
Changes in Actuarial assumptions
The rates of retirement, disability, withdrawal, and mortality were changed since the prior year, as well as a change in
discount rate due to an updated fund availability analysis.
105

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Actuarial Information (Continued)
Actuarial Methods for Determining Employer Contributions
The same economic and demographic assumptions are used for both funding and financial reporting purposes under GASB
74/75.
The Entry Age method is used for accounting/GASB purposes, therefore all of the actuarial figures within this Report are
based on it. Actuarially Determined Contributions are also based on the Entry Age method, with a closed level percentage of
payroll amortization of the unfunded liability (15 years remaining).
Expected Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation)
are developed for each asset class. These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. This is then
modified through a Monte-Carlo simulation process, by which a (downward) risk adjustment is applied to the baseline
expected return.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation
as of June 30, 2023, and the final investment return assumption, are summarized in the following table:
Long-Term
Expected Real
Asset Class Rate of Return Weight
US Equity 6.25% 36.0%
International Equity 6.50% 24.0%
Fixed Income 2.05% 35.0%
Real Estate 4.85% 5.0%
Total Weighted Average Real Return 4.77% 100.0%
Plus Inflation 2.50%
Total Return w/o Adjustment 7.27%
Risk Adjustment -1.27%
Total Expected Return 6.00%
Discount Rate
The discount rate used to measure the total OPEB liability is 5.90%. The County’s funding strategy is to contribute the
Actuarially Determined Contribution in fiscal year 2023, and each year going forward. It is expected that benefits will be paid
from the trust when a 50% funding level is reached. Based on this information, we project that benefits will be financed on a
pay as you go basis until 2028, then from the trust there forward.
Therefore, the expected trust return of 6.00% is blended with the 20-year Aaa bond rate* of 3.87%. The blended rate is
5.90%. The prior rate was 5.90% on this basis.
*Source: Fidelity general obligation municipal bond index.
106

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Net OPEB Liability
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the plan, calculated using the current discount rate, as well as what the net
OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher:
DISCOUNT RATE
1% Decrease Discount Rate 1% Increase
System 4.90% 5.90% 6.90%
Net OPEB liability $ 49,960,207 $ 32,665,223 $ 30,079,380
Sensitivity of the net OPEB liability to changes in the trend rate
The following presents the net OPEB liability of the plans, calculated using the current health care trend rate of 6.00% to an
ultimate rate of 4.25% for PPO, EPO, and BCA plans, as well as what each plans net OPEB liability would be if it were
calculated using a health care trend rate that is 1% point lower or 1% point higher:
HEALTH CARE TREND
1% Decrease to Discount Rate 1% Increase to
3.25% 4.25% 5.25%
Net OPEB liability $ 29,424,856 $ 32,665,223 $ 46,951,717
107

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Net OPEB Liability (Continued)
Changes in the net OPEB liability are as follows:
Total OPEB Liability ("TOL")
Service cost $ 1,263,176
Interest 3,386,945
Changes in benefit terms 394,544
Difference between expected and actual experience ( 8,541,920)
Changes in assumptions ( 1,645,226)
Benefit payments ( 1,706,367)
Net change in total OPEB liability ( 6,848,848)
Total OPEB liability - beginning of year 56,983,624
Total OPEB liability - end of year $ 50,134,776
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 4,098,432
Contributions - member -
Net investment income 1,430,230
Benefit payments ( 1,706,367)
Admin expenses ( 7,722)
Other ( 7,935)
Net change in plan fiduciary net position 3,806,638
Plan fiduciary net position - beginning of year 13,662,915
Plan fiduciary net position - end of year $ 17,469,553
Net OPEB liability ("NOL") - beginning of year $ 43,320,709
Net OPEB liability - end of year $ 32,665,223
PFNP as a % of TOL 34.8%
Covered employee payroll $ 32,307,222
NOL as a % of covered payroll 101.1%
108

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
OPEB Expense
The amount of OPEB expense recognized in the reporting period are as follows:
Service cost $ 1,263,176
Interest on total OPEB liability 3,386,945
Difference between expected and actual experience* (2,107,529)
Changes in actuarial assumptions* ( 312,589)
Employee contributions -
Changes in benefit terms 394,544
Projected earnings on plan investments ( 822,470)
Difference between projected and actual earnings* 138,937
Administrative expense 7,722
Other changes in fiduciary net position 7,935
Total OPEB expense $ 1,956,671
* - portions recognized for expense
Deferred Inflow/Outflow Summary
The deferred outflows / inflows are as follows:
Defferred Defferred
Outflows of Inflows of
Resources Resources
Net difference between projected and actual earnings on plan investments $ 538,334 $ -
Differences between expected and actual experience 326,909 ( 13,135,546)
Changes in actuarial assumptions 732,449 ( 3,023,683)
Total $ 1,597,692 $ ( 16,159,229)
Net deferred outflows / (inflows) will be amortized as follows:
Year ended June 30:
2024 $ ( 2,275,761)
2025 ( 2,334,521)
2026 ( 1,990,187)
2027 ( 2,571,229)
2028 ( 2,633,100)
Thereafter ( 2,756,739)
$ ( 14,561,537)
109

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS
BOARD OF EDUCATION
Plan description
The Board of Education of Queen Anne’s County administers a single-employer defined benefit healthcare plan (“the Plan”).
The plan provides healthcare insurance for eligible retirees and their spouses through the Board’s group health insurance
plan, which covers both active and retired members. The Plan does not issue a stand-alone report. Benefit provisions are
based on contractual agreements with employee groups. Employees are eligible to participate in the Plan upon retirement.
Participants must meet the eligibility requirements of the Maryland State Teachers’ pension system described below:
For members hired before July 1, 2011, the earliest retirement eligibility is the earlier of:
 Age 55 with 15 years of service,
 Age 62 with 5 years of service,
 Age 63 with 4 years of service,
 Age 64 with 3 years of service,
 Age 65 with 2 years of service, or
 30 years of service, regardless of age.
For members hired after July 1, 2011, the earliest retirement eligibility is the earlier of
 Rule of 90 (age plus service is at least 90),
 Age 65 with 10 years of service,
 Age 60 with 15 years of service
As of February 1, 2022, the date of the actuarial valuation data, approximately 463 retirees were receiving benefits, and 938
active employees are potentially eligible to receive future benefits.
Funding Policy
The Board pays a portion of retiree healthcare premiums based on years-of-service ranging from 5 years of service to 25+
years of service until the retiree becomes Medicare-eligible. The retiree pays the remaining premium, including the cost of
eligible dependents. Pre-Medicare retirees may choose between two medical plans (a PPN plan and an EPO plan). Both plans
include medical and prescription benefits. Once a participant is Medicare eligible, the participant must switch to a Medicare
supplement plan, which is also packaged with a prescription plan. Retirees have the option of electing dental and vision
coverage in addition to medical coverage.
Employer Contribution
Retirees receive a subsidy for their post-retirement medical insurance based on service. The subsidy requires a minimum of 5
years of service for Administration and 10 years of service for Teachers. For teachers, once ten years of service is reached,
the Board covers 36% of the cost of the individual’s EPO health plan. The percentage subsidized by the Board increases
3.6% per year for every year of service in excess of ten. At 25 years of service, the maximum subsidy of 90% is reached. For
administrators, once five years of service is reached, the Board covers 35% of the cost of the individual’s EPO health plan.
The percentage subsidized by the Board increases 5.5% per year for every year of service in excess of five. At 15 years of
service, the maximum subsidy of 90% is reached. Retirees with less than the minimum years of service required to receive a
subsidy are allowed access to the medical coverage, but must pay 100% of the published rates. In addition, the Board is
contractually obligated to pay the full cost of medical insurance for certain retired directors, superintendents, and their
spouses.
110

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Employer Contribution (Continued)
The Board also pays the cost of providing term life insurance for its retirees in varying amounts depending upon length of
service and date of retirement. The benefits payable upon death are $5,000 (fixed) for 5 to 25 years of service or $50,000
(maximum-based on annual salary at retirement) for over 25 years of service. There is a reduction of benefit of 25% at age 70
and a benefit reduction of 50% at age 75 and beyond.
Net OPEB Liability
The annual OPEB expense under GASB Statement No. 75 is equal to the change in the unfunded actuarial accrued liability
from the prior year’s measurement date to the current year measurement date, with some of the liability changes being
deferred to future years. Changes in the actuarial accrued liability due to experience gains or losses or changes in assumptions
are recognized over the expected future working lifetime of all plan participants, including retirees. For the fiscal year ended
June 30, 2023, the Board recognized an OPEB expense of $8,737,582.
The Board’s total OPEB liability is an amount actuarially determined in accordance with the parameters of GASB Statement
No. 75. The total OPEB liability is calculated using a measurement date of June 30, 2022. Therefore, plan information for
the year ended June 30, 2022 is utilized. The following table shows the components of the Board’s total and net OPEB
liability at June 30, 2022.
Total OPEB Liability ("TOL")
Service cost $ 10,111,903
Interest 3,734,228
Changes in benefit terms 10,136,487
Difference between expected and actual experience ( 14,515,342)
Changes in assumptions ( 63,865,205)
Benefit payments ( 3,103,324)
Net change in total OPEB liability ( 57,501,253)
Total OPEB liability - beginning of year 196,009,307
Total OPEB liability - end of year $ 138,508,054
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 3,103,324
Net investment income ( 83,447)
Benefit payments ( 3,103,324)
Admin expenses -
Net change in plan fiduciary net position ( 83,447)
Plan fiduciary net position - beginning of year 587,931
Plan fiduciary net position - end of year $ 504,484
Net OPEB liability ("NOL") - beginning of year $ 195,421,376
Net OPEB liability - end of year $ 138,003,570
PFNP as a % of TOL 0.36%
Covered employee payroll $ 62,237,232
NOL as a % of covered payroll 221.74%
Payments have typically been liquated from the General Fund in prior years.
111

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Funding Status and Funding Progress
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 the healthcare cost trend. 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 net OPEB liability, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information about whether the net OPEB liability is
increasing or decreasing over time relative to the total OPEB liability for benefits.
Additional information is as follows:
 Measurement date – The Board selected a June 30, 2022 measurement date for fiscal year-end 2023. The
measurement date can be any date between the last day of the prior fiscal year and the last day of the current fiscal
year.
 Cost method – This valuation uses the Entry Age Normal Funding Method calculated on an individual basis with
level percentage of payroll.
 Claims data – Monthly paid claims, administrative expenses and enrollment for employees and retirees from
January 2019 through December 2021 were supplied by the carrier. Claims were divided into pre and post 65 age
retirees.
 Demographic data – Data included current medical coverage for current employees and retirees as of February 1,
2022.
 Discount rate assumption - Benefits are discounted based on the Bond Buyer GO 20-year Bond Municipal Bond
Index, an index rate for 20-year tax exempt general obligation municipal bonds with an average rating of AA/Aa or
higher. This rate was 3.69% as of June 30, 2022.
 Health care trend – The medical trend assumption was developed using the Society of Actuaries (SOA) Long-Run
Medical Cost Trend Model. The SOA model was released in December 2007 and is updated annually. The following
assumptions were used as input variables into this model:
Rate of Inflation 2.5%
Rate of growth in real income / GDP per year 1.4%
Extra trend due to technology and other factors 1.0%
Expected health share of GDP in 2031 19.0%
Health Share of GDP Resistance Point 20.0%
Year for limiting cost growth to GDP growth 2075
 Salary Scale – State of Maryland salary scale assumption for teachers.
112

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Funding Status and Funding Progress (Continued)
 Decrement Assumptions –
Healthy Pub-2010 Mortality Table (teacher and general employees, headcount-weighted),
Fully Generational, Projected using Scale MP-2021
Disability Pub-2010 Mortality Table (teacher and general disabled, headcount-weighted),
Fully Generational, Projected using Scale MP-2021
Sensitivity of the Net OPEB Liability
The following table presents the Board’s net OPEB liability at June 30, 2022 using the discount rate of 3.69%, as well as
what the net OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher
than the current rate:
DISCOUNT RATE
1% Decrease Discount Rate 1% Increase
System 2.69% 3.69% 4.69%
Net OPEB liability $ 164,437,690 $ 138,003,570 $ 117,062,951
The following table presents the Board’s net OPEB liability at June 30, 2022 using the health care trend rate of 3.94%, as
well as what the net OPEB liability would be if it were calculated using a trend rate that is 1% point lower or 1% point higher
than the current rate:
HEALTH CARE TREND
1% Decrease to Discount Rate 1% Increase to
2.94% 3.94% 4.94%
Net OPEB liability $ 115,298,558 $ 138,003,570 $ 167,899,360
Deferred Inflows/Outflows of Resources related to OPEB
At June 30, 2023, the Board reported deferred outflows of resources and deferred inflows of resources related to the OPEB
plan from the following sources:
Defferred Defferred
Outflows of Inflows of
Resources Resources
Changes of assumptions $ 40,966,422 $ ( 66,003,863)
Net difference between projected and actual earnings 23,234 -
Differences between expected and actual experience 1,835,667 ( 75,382,395)
Total $ 42,825,323 $ ( 141,386,258)
113

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Deferred Inflows/Outflows of Resources related to OPEB (Continued)
Amounts reported as differences between projected and actual earnings on OPEB plan investments will be amortized and
expensed over a closed five-year period. Amounts reported as differences between expected and actual experience will be
amortized and expensed over a period equal to the average remaining service lives of all employees that are provided with
other post-employment benefits through the plan. Amounts reported as changes in assumptions will be amortized and
expensed over a period equal to the average remaining service lives of all employees that are provided with other post-
employment benefits through the plan. Amortization expense related to net deferred inflows and outflows of resources over
the next five years is expected to be as follows:
Year ended June 30:
2024 $ ( 15,244,834)
2025 ( 15,243,371)
2026 ( 15,242,175)
2027 ( 15,228,947)
2028 ( 13,926,200)
Thereafter ( 23,675,408)
$ ( 98,560,935)
Changes in assumptions in the most recent actuarial valuation included adjusting the discount rate to the updated index rate
for 20-year tax exempt general obligation municipal bonds.
LIBRARY
Plan description
The Library participates in an agent multiple-employer defined benefit healthcare plan (“the Plan”) that covers retired
employees of Queen Anne’s County, the Queen Anne’s County Board of Education, and the Library.
A Trust entity was established in June, 2009 entitled Other Post-Employment Benefit Trust – County Commissioners of
Queen Anne’s County, County Commissioners of Kent County, and Participating Agencies (the “Trust”). In August 2020, the
Trust was closed and all members transferred their respective funds to the MACo (Maryland Association of Counties) Pooled
OPEB Investment Trust Fund. A separate “Trust document for the MACo OPEB Trust can be found on the MACo website at
www.mdcounties.org.
Benefits provided
The plan reimburses eligible retirees for a portion of healthcare insurance based on years-of-service ranging from $3,000 for
15 years of service to $4,400 for 25 plus years of service. The retiree pays the remaining premium, including the cost of
eligible dependents. Participants must meet the eligibility requirements of the State Retirement and Pension System of
Maryland, which are age 55 with 15 years of service, age 62 with 5 years of service, or 30 years of service (regardless of
age).
114

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Employees covered by benefit terms
The following is a summary of plan membership as of January 1, 2022.
Active 19
Retired 9
Total 28
Contributions
The Library pays retiree healthcare benefits on a pay-as-you-go basis. For the year ended June 30, 2023, the Library
contributed $29,012.
Net OPEB liability
The Library's net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation January 1, 2022.
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2022, using the following actuarial
assumptions, applied to all periods in the measurement:
Expected return – 6% including inflation and net of investment expenses.
Healthcare trend – Because this is a flat dollar plan and retirees secure their own insurance, the trend is not
applicable.
Mortality rates are based on PUB2010G Headcount tables with Scale SSA applied on a generational basis. PUB2010G
Headcount Disabled tables are used for those on disability, if applicable.
There were no changes in actuarial assumptions since the prior year, except the change in discount rate due to an updated
depletion analysis.
Actuarial methods for determining employer contributions use the same economic and demographic assumptions for both
funding and financial reporting purposes under GASB 74/75. The Entry Age method is used for accounting/GASB purposes,
therefore all of the actuarial figures within this report are based on it. Actuarially Determined Contributions are based on the
Entry Age method, with a closed level percentage of payroll amortization of the unfunded liability (17 years remaining).
Discount rate
The discount rate used to measure the total OPEB liability is 4.2%. There is essentially no prefunding of benefits in an OPEB
trust for this plan (i.e., pay as you go), however, the Library has funds invested in the MACo pooled OPEB Trust. For this
analysis, we assumed the trust assets would grow with earnings until a 60% funding ratio is reached. Based on this, a blended
rate was developed which consists of the 20-year municipal bond Aa index as of June 30, 2023 of 3.87% blended with the
assumed return of 6.00%.
Benefits would be paid from the trust from 2050 to 2059, and from general fund assets before and after this time period,
resulting in a blended rate of 4.2%. The prior rate was 2.4%.
115

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Changes in the net OPEB liability
Total OPEB Liability ("TOL")
Service cost $ 11,425
Interest 28,346
Changes in benefit terms -
Difference between expected and actual experience ( 127,474)
Changes in assumptions ( 30,962)
Benefit payments ( 29,012)
Net change in total OPEB liability ( 147,677)
Total OPEB liability - beginning of year 711,597
Total OPEB liability - end of year $ 563,920
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 29,012
Net investment income 2,792
Benefit payments ( 29,012)
Admin expenses -
Net change in fiduciary net position 2,792
Plan fiduciary net position - beginning of year 30,267
Plan fiduciary net position - end of year $ 33,059
Net OPEB liability ("NOL") - beginning of year $ 681,330
Net OPEB liability - end of year $ 530,861
PFNP as a % of TOL 5.9%
Covered employee payroll $ 1,200,081
NOL as a % of covered payroll 44.2%
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the Library, as well as what the net OPEB liability would be if it were
calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate:
DISCOUNT RATE
1% Decrease Discount Rate 1% Increase
System 3.20% 4.20% 5.20%
Net OPEB liability $ 589,020 $ 530,861 $ 481,922
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rate
Because the benefits from this plan are a fixed dollar amount based on years of services and there is no implicit subsidy
(retirees secure their own health insurance), a change in assumed trend rate will not have an impact on the OPEB liability.
Investments
The long-term expected rate of return on pension plan investments was determined using a building block method in which
best-estimate ranges of expected future real rates of return (expected returns net of pension plan investment expense and
inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. This is then modified through a Monte-Carlo simulation process, by which a (downward) risk adjustment is applied
to the baseline expected return.
116

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Best estimates of arithmetic real rates of return for each major asset class included in the plan’s target asset allocation as of
June 30, 2023, and the final investment return assumption, are summarized in the following table:
Long-Term
Expected Real
Asset Class Rate of Return Weight
US Equity 6.25% 36.0%
International Equity 6.50% 24.0%
Fixed Income 2.05% 35.0%
Real Estate 4.85% 5.0%
Total Weighted Average Real Return 4.77% 100.0%
Plus Inflation 2.50%
Total Return w/o Adjustment 7.27%
Risk Adjustment -1.27%
Total Expected Return 6.00%
OPEB expense and deferred outflows of resources related to OPEB
For the year ended June 30, 2023, the Library recognized an OPEB expense of $43,305. At June 30, 2023, the Library
reported deferred outflows and deferred inflows of resources related to the OPEB plan from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 23,514 $ ( 138,466)
Changes of assumptions 113,516 ( 123,224)
Net difference between projected and actual earnings 2,593 -
Total $ 139,623 $ ( 261,690)
Amounts reported as deferred outflows and deferred inflows of resources related to the OPEB plan will be recognized in
expense over a period ranging from five to nine years as follows:
Year ended June 30:
2024 $ 5,162
2025 4,985
2026 5,230
2027 ( 28,781)
2028 ( 37,559)
Thereafter ( 71,104)
$ ( 122,067)
117

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 17 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
Plan Description
The County established the County Fire and EMS Commission Pension Plan Length of Service Award Program (“LOSAP”)
in November 2004. The LOSAP is a single-employer defined benefit length of service award program that covers all
volunteer members (“members”) of the County’s Fire and EMS Commission. The LOSAP has no assets accumulated in a
trust that meet the criteria in GASB 73, paragraph 4. The LOSAP is funded entirely by the general fund.
Relevant dates
 Valuation date: January 1, 2022
 Measurement date: December 31, 2022
 Reporting date: June 30, 2023
An active member, upon reaching 55 years of age, is eligible to receive $6 per month for each year of eligible service, with a
$240 maximum monthly benefit that may be earned. An inactive member that reaches 65 years of age and is vested with 5
years of service is also entitled to the same benefits ($6/month for each year of service, maximum $240 per month). An
inactive life member with 20-plus years of service is entitled to the same benefits at 55 years old. Insured participants’
designated beneficiary shall receive the greater of $25,000 face amount of the life insurance or the present value of the
participants’ accrued benefit. Non-insured participants’ designated beneficiary shall receive the lump sum of the present
value of the participants’ accrued benefit.
Plan Description (Continued)
The participant summary as of the January 1, 2022 actuarial valuation is as follows:
Active members 340
Vested-terminted 147
Retired and beneficiaries 173
Total 660
Actuarial Assumptions
The total LOSAP liability was determined by an actuarial valuation as of January 1, 2022 rolled forward to December
31, 2022 using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 0.00%
Salary increases Not Applicable
Investment rate of return 4.05%, net of pension plan investment expense, including inflation
Mortality No pre-retirement mortality; post retirement RP2000 projected to 2030
Retirement First eligible
Turnover T5
Disability None
The 4.05% discount rate is based on a 20 year AA general obligation bond rate as of December 31, 2022.
The above is a summary of key actuarial assumptions. Full descriptions of the actuarial assumptions are available in the
January 1, 2022 actuarial valuation report.
118

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 17 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
(CONTINUED)
Sensitivity of Total LOSAP Liability
The following presents the total LOSAP liability, calculated using single discount rate of 4.05%, as well as what the total
LOSAP liability would be if it were calculated using a discount rate that is 1% point lower and 1% point higher.
1% Decrease Discount Rate 1% Increase
System 3.05% 4.05% 5.05%
Net LOSAP Liability $ 9,152,533 $ 7,757,868 $ 6,664,088
Total LOSAP Liability
The components of the total LOSAP liability are as follows:
Plan
Total LOSAP Fiduciary Net Net LOSAP
Liability Position Liability
Balances as of January 1, 2022 $ 10,267,761 $ - $ 10,267,761
Changes for the year:
Service cost 268,262 - 268,262
Interest 409,940 - 409,940
Changes of benefit terms - - -
Differences between expected and actual experience 819,208 - 819,208
Changes of assumptions ( 3,702,745) - ( 3,702,745)
Benefits payments and expenses ( 304,558) - ( 304,558)
Net changes ( 2,509,893) - ( 2,509,893)
Balances as of December 31, 2022 $ 7,757,868 $ - $ 7,757,868
Plan fiduciary net position as a percentage of the total pension liability 0%
LOSAP Expense
The components of LOSAP expense are as follows:
LOSAP
Expense
Service cost $ 268,262
Interest 409,940
Changes in benefit terms -
Differences between expected and actual earnings -
Differences between expected and actual experience 188,212
Changes of assumptions ( 119,153)
Total LOSAP expense $ 747,261
119

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 17 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
(CONTINUED)
Maryland State Retirement and Pension System $ 2,931,500
Length of Service Award Program ("LOSAP") 747,261
Aggregate amount of pension expense $ 3,678,761
LOSAP Deferred Outflows and Deferred Inflows of Resources
The components of LOSAP deferred outflows and deferred inflows are as follows:
Defferred Defferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 789,940 $ ( 15,692)
Changes of assumptions 955,441 ( 3,208,139)
Net difference between projected and actual earnings - -
Total $ 1,745,381 $ ( 3,223,831)
Amounts reported as deferred outflows and deferred inflows will be amortized as follows:
Year ended June 30:
2024 $ ( 27,280)
2025 ( 267,655)
2026 ( 535,995)
2027 ( 612,116)
2028 ( 35,404)
Thereafter -
$ ( 1,478,450)
120

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 18 – DEFICIT EQUITY BALANCES
There were no Non-Major Governmental Funds that ended the year with deficit balances in unassigned fund balance for
the year ended June 30, 2023.
The following Enterprise Funds ended the year with deficit equity balances:
The Sewer Operations Fund has a deficit balance in unrestricted net position of $1,062,943 as of June 30, 2023.
The Bay Bridge Airport Fund has a deficit balance in unrestricted net position of $943,429 as of June 30, 2023.
The Golf Course Enterprise Fund has a deficit balance in unrestricted net position of $401,278 as of June 30, 2023.
The County Commissioners established the guideline that the Enterprise Funds should be self-supporting, to the extent
possible. Therefore, a variety of measures are being evaluated in order to attempt the goal of balancing the Enterprise Funds.
NOTE 19 – COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS
PRIMARY GOVERNMENT
Grants - The County and its component units are recipients of various federal and state grant and/or loan programs, which are
governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject
to audit and adjustment by these grantor agencies. If the County has not complied with the rules and regulations governing
the programs, refunds of money received may be required and the collectability of any related receivable as of June 30, 2023
may be impaired. The County’s management believes that there are no significant contingent liabilities that must be recorded
relating to compliance with the rules and regulations governing these programs. No funds were required to be returned in
fiscal year 2023.
Further, certain grants for capital projects, such as various park projects funded by the State, must be used for the intended
purpose of the grant. If, at any time during the useful lives of these projects, the facilities cease to operate in their intended
capacity, the County may be required to reimburse the granting agency that portion of the grant or note that is equal to the
percentage of useful life remaining. The County’s Management believes that no such grant reimbursements will be needed.
In fiscal year 2010, the County’s Department of Housing and Community Services received a grant of $350,000 from the
Maryland Department of Housing and Community Development. This Maryland Neighborhood Conservation Initiative
(NCI) Grant provided funding to be used for the acquisition and purchase of foreclosed properties for resale to qualifying
homebuyers, as well as the issuance of zero percent deferred payment loans to eligible critical service workers. Per the terms
of the agreement, the grantee may reuse funds for these same activities until June 30, 2013. Funds returned to the County
from program participants after June 30, 2013 must be returned to the state. Therefore, this grant has been recorded as a
pass-through grant, with the County contingently liable for the return of these funds to the state at some point in time after
June 30, 2013. During Fiscal Year 2014, the County identified $69,569 in funds that were required to be returned to the
grantor per grant provisions. No funds were required to be returned in fiscal years 2015 thru 2023.
In accordance with the provisions of GASB Statement 54, Fund Balance Reporting and Governmental Fund Type
Definitions, the County has committed certain fund balances for future construction projects. In the General Capital Projects
Fund, a total of $5,811,898 has been committed, including $1,076,841 for Economic Development, $3,952,567 for site
improvements pursuant to agreements with local developers, and $782,490 for rubble surcharge. In the Roads Capital
Projects Fund, $909,241 has been contributed by developers and is committed to fund infrastructure improvements.
The County is a defendant in various lawsuits. After considering all relevant facts and the opinion of legal counsel, it is
management’s opinion that such litigation will not have a material adverse effect on the financial position of the County.
121

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 20 – JOINT VENTURE
In 1991, the County Commissioners, in conjunction with Talbot, Caroline, and Kent Counties, entered into a regional
partnership known as the Midshore Regional Landfill Joint Venture. This venture was formed to provide a long-term, solid
waste management solution for the four-county area. As part of the agreement, each of the four Counties agreed to host a
solid waste facility for a twenty-year period, giving the venture a total duration of eighty years. In 1991, the Midshore
Regional Landfill opened in Talbot County and served the waste management needs of the four-County area for twenty
years. This facility, owned and operated by the Maryland Environmental Service (MES), closed on December 31, 2010. The
second Midshore facility, Midshore II, opened in Caroline County in January 2011 and is fully operational. After the facility
in Caroline County reaches capacity, another landfill will be constructed in Queen Anne's County, with Kent County to
follow in turn. Each County is required to, and has, set aside sufficient land to construct a landfill within their borders. The
agreement expires when the last of the four landfills is closed.
Queen Anne’s County has a 35.66% financial interest in the Midshore Regional Landfill. If expenditures exceed revenues,
the County is obligated to cover the deficiency in proportion to its financial interest; however, to date additional funding from
the County has not been required nor does management anticipate it.
Total closure and post closure costs for the landfills are $23.0 million, with approximately $8.2 million attributable to Queen
Anne’s County. These costs are paid from tipping fees of acceptable waste delivered by or for the account of the counties. It
is currently expected that sufficient funds will be available from landfill revenues to pay future closure and post closure costs.
MES has accrued and reported a long-term liability of $10.1 million as of June 30, 2023, determined by the estimated useful
life of the landfill.
Similar to the post closure costs, each of the participating Counties is contingently liable for the debt related to the new
facility, Midshore II. Midshore II was funded with project revenue bonds totaling $19.4 million. As of June 30, 2023, $6.9
million is attributable to Queen Anne’s County in the event of a default.
Each County is required to place its municipal waste in the landfill. The facility is also available to commercial waste
disposal firms at the same price per ton as charged to the County governments.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the project
participants as of June 30, 2023. MES expects to satisfy these requirements as of June 30, 2023 using the same criteria.
Due to inflation and changes in technology, laws, and regulations, estimated closure and post closure care costs may change
in the future. Financial Statements of the Landfill can be obtained from MES located at 259 Najoles Road, Millersville, MD
21108.
122

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 21 – POLLUTION REMEDIATION OBLIGATIONS
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations.
During a prior fiscal year, 2003, the County agreed to a voluntary Methyl Tertiary Butyl Ether (MTBE) testing program for
underground fuel tanks located at the County’s Department of Public Works’ fuel depot. This testing program was and still
is approved by the Maryland Department of Environment (MDE).
Costs covered remediation work and consulting fees; the latter for testing, studies, and monitoring. Remediation efforts
included demolition and removal of the existing fuel depot at the Public Works Centreville Shop; remediation of the soils via
excavation; offsite controlled disposal and backfill; installation of monitoring wells; in situ chemical oxidation and dual
phase extraction; attorney’s fees and miscellaneous environmental consulting services.
In May 2010, MDE requested the County devise a Corrective Action Plan (CAP) to address contamination concerns at the
fuel depot site. In August 2010, MDE approved the County’s CAP work which included the installation of additional
monitoring wells and one year of monitoring, sampling, testing and furnishing of those reports to MDE.
In December of 2014, a leak was discovered at the 10,000 gallon fuel oil UST for the office building. MDE required the
removal of the tank and mitigation of the contaminated soils and ground water. The tank has been replaced with a compliant
above ground 1,500 gallon fuel oil storage tank. This work was completed, including compliant disposal of all soils by May
2015. MDE subsequently directed the County to install two additional monitoring wells and to abandon the former injection
wells on-site.
During fiscal year 2023, the County has maintained the required self-testing of all monitoring wells. As per a letter received
by MDE-OCP, dated March 27, 2023, regarding Case #2004-0264-QA, the County was directed to “Conduct one or more
quarterly sampling event”. This task was contracted out to Chesapeake GeoSciences, Inc. and was performed on July 26,
2023. This report was then sent to MDE-OCP in the month of September 2023. Along with this report, to accompany the
reports data, the County’s self-testing monthly data was also compiled and sent to MDE-OCP on September 12, 2023, which
was inclusive of the months January 2022 through August 2023.
As per an email from MDE-OCP dated September 22, 2023, it was stated “We look forward to reviewing that report and the
provided gauging data. Once we complete our review, we will reach out”. As of this point, there has been no response from
MDE-OCP.
The County will continue to follow the schedule and monitor the wells as it has been doing for the past years. Also, the
County will continue to provide a monthly report to MDE showing the data found during the monitoring processes. As
applied, the following schedule is as follows: monitoring well MW-2A is tested every week. All monitoring wells are tested
once a month.
The estimated costs over the next year are not material, and thus no liability has been recorded at this time. None of these
outlays met the requirements for capitalization noted in GASB Statement 49 and they were not capitalized.
123

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 22 – PRIOR PERIOD RESTATEMENT
The County implemented GASB 87, Leases, at July 1, 2021. During the current year, it was discovered that the County did
not appropriately account for lessor leases correctly in the governmental funds, but were reported correctly in the statement of
net position and statement of activities. Additionally, it was discovered that the County accidently omitted a lessor lease in
the Sanitary Water Fund that was in effect during fiscal year 2022 and fell under the purview of GASB 87.
It was also discovered that the County did not book the correct amount of revenue to correspond with grant-related expenses
incurred in fiscal year 2022 in the Sanitary Restricted and Debt Service Funds.
The following table is summary of the effects as of June 30, 2022.
As Previously Correction of As
Reported an Error Restated
Business Type Activities
Net position 127,444,103 385,515 127,829,618
Governmental Funds
Fund balance 154,610,670 44,955 154,655,625
124

R S I
EQUIRED UPPLEMENTARY NFORMATION
125

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2023
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
REVENUES
Taxes
Local Property Tax $ 75,535,600 $ 75,608,667 $ 78,012,721 $ 2 ,404,054
Local Income Tax 6 8,845,000 7 8,853,000 7 9,467,361 6 14,361
Admission and Amusement Taxes 185,000 1 85,000 2 48,987 63,987
Recordation Taxes 9 ,715,250 9 ,715,250 8 ,651,034 (1,064,216)
Hotel Taxes 650,000 6 50,000 9 91,022 3 41,022
County Transfer Taxes 3 ,757,964 3 ,757,964 3 ,046,615 (711,349)
State Shared Taxes 1 ,253,000 - - -
Franchise Fee 485,000 4 85,000 5 07,847 22,847
Licenses and Permits 745,875 7 45,875 8 38,254 92,379
Intergovernmental 2 ,172,218 3 ,255,282 3 ,102,287 (152,995)
Charges for Current Services 2 ,880,212 2 ,838,212 3 ,298,630 4 60,418
Fines and Forfeitures 70,500 70,500 1 07,379 36,879
Investment Income 175,000 1 ,356,000 4 ,808,600 3 ,452,600
Donations - - 805 805
Miscellaneous 553,589 5 53,589 1 ,397,290 8 43,701
Total Revenues 167,024,208 178,074,339 184,478,832 6 ,404,493
EXPENDITURES
GENERAL GOVERNMENT
Legislative 524,838 679,055 660,571 18,484
Judicial
Circuit Court 885,990 901,849 896,096 5,753
Orphan's Court 99,001 99,001 92,688 6,313
State's Attorney 1 ,560,063 1 ,594,353 1 ,551,197 43,156
County Administrator 257,236 2 64,097 2 62,609 1,488
Board of Elections 1 ,228,694 1 ,228,694 1 ,020,441 2 08,253
Finance Office 1 ,593,877 1 ,630,015 1 ,447,407 1 82,608
Human Resources 668,914 7 15,476 7 13,407 2,069
Planning and Zoning 2 ,461,150 2 ,508,604 2 ,390,793 1 17,811
Information Technology 3 ,299,470 3 ,348,075 3 ,073,600 2 74,475
QAC-TV 4 79,763 4 90,961 4 80,643 10,318
Legal Services 504,307 5 04,985 4 69,688 35,297
Total General Government 1 3,563,303 1 3,965,165 1 3,059,140 9 06,025
PUBLIC SAFETY
Sheriff's Office 1 0,839,754 1 1,530,510 1 1,527,110 3,400
Volunteer Fire and Rescue Services 4 ,408,510 5 ,043,510 5 ,008,796 34,714
Detention Center 6 ,413,540 6 ,535,786 5 ,528,342 1 ,007,444
Emergency Services 1 2,415,398 1 3,532,193 1 3,059,467 472,726
Total Public Safety 3 4,077,202 3 6,641,999 3 5,123,715 1 ,518,284
PUBLIC WORKS
Administration 601,083 613,433 541,914 71,519
Solid Waste Disposal 1 ,806,438 1 ,830,611 1 ,673,039 157,572
Engineering Division 1 ,085,565 1 ,112,445 9 79,885 132,560
Roads Division 5 ,953,637 - 15 ( 15)
General Services 2 ,923,651 2 ,952,065 2 ,844,500 1 07,565
Animal Services 1 ,201,552 1 ,223,602 1 ,170,108 53,494
Property Management 375,923 380,979 370,985 9,994
Total Public Works 1 3,947,849 8 ,113,135 7 ,580,446 5 32,689
CONTINUED
126

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
PARKS & RECREATION
Parks $ 4 ,653,414 $ 4 ,795,105 $ 4 ,716,874 $ 7 8,231
Recreation 1 ,113,972 1 ,132,740 1 ,003,071 1 29,669
Total Parks & Recreation 5 ,767,386 5 ,927,845 5 ,719,945 2 07,900
HEALTH AND SOCIAL SERVICES
Health Department 2 ,767,669 2 ,770,352 2 ,478,623 2 91,729
Social Services 174,408 179,987 179,069 918
Total Health and Social Services 2 ,942,077 2 ,950,339 2 ,657,692 292,647
EDUCATION AND LIBRARY
Board of Education 6 4,085,219 6 4,085,219 6 4,085,219 -
Chesapeake College 2 ,094,097 2 ,094,097 2 ,094,097 -
Queen Anne's County Free Library 2 ,312,786 2 ,312,786 2 ,312,786 -
Total Education and Library 6 8,492,102 6 8,492,102 6 8,492,102 -
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 387,657 391,407 390,587 820
Soil Conservation Service 229,147 248,171 246,430 1,741
4-H Park 1 29,600 1 29,600 93,020 36,580
Total Conservation of Natural Resources 746,404 7 69,178 7 30,037 39,141
ECONOMIC AND COMMUNITY DEVELOPMENT
Economic Development 893,083 908,556 884,032 24,524
Community Affairs 215,564 220,015 108,115 111,900
Total Economic and Community Development 1 ,108,647 1 ,128,571 9 92,147 136,424
INTERGOVERNMENTAL
Aid to Municipalities 355,787 355,787 347,101 8,686
SDAT Costs from State 430,000 430,000 305,923 124,077
Total Intergovernmental 785,787 785,787 653,024 132,763
MISCELLANEOUS
Aid to Other Agencies 669,066 764,566 762,998 1,568
Insurance & Benefits 3 ,207,624 3 ,207,624 2 ,832,462 375,162
Transfer to OPEB Fund 2 ,400,000 2 ,400,000 2 ,400,000 -
Contingencies 2 ,448,464 9 84,399 343,596 640,803
Salary Lapse (1,378,310) (1,378,310) - (1,378,310)
Leases and Subscription-Based IT Arrangements - 2,139,075 2,141,568 (2,493)
Miscellaneous Non-Departmental 540,300 540,300 440,795 99,505
Total Miscellaneous 7 ,887,144 8 ,657,654 8 ,921,419 (263,765)
CONTINUED
127

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
DEBT SERVICE
School Debt Service - Principal $ 4 ,579,956 $ 4 ,579,956 $ 4 ,579,666 $ 290
School Debt Service - Interest 1 ,820,476 1 ,820,476 1 ,789,700 30,776
County Debt Service - Principal 4 ,078,805 4 ,078,805 4 ,069,291 9,514
County Debt Service - Interest 2 ,671,219 2 ,740,219 2 ,735,760 4,459
Total Debt Service 1 3,150,456 1 3,219,456 1 3,174,417 45,039
Total Expenditures 162,468,357 160,651,231 157,104,084 3 ,547,147
Excess of Revenues Over Expenditures 4 ,555,851 1 7,423,108 2 7,374,748 9 ,951,640
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 18,000 18,000 51,405 33,405
Insurance Proceeds - - 66,705 66,705
Leases - 569,431 638,500 69,069
Subscription-Based IT Arrangements - 1 ,569,644 1 ,503,069 (66,575)
Transfers In From:
Impact Fees - School 2 ,857,792 2 ,857,792 2 ,857,792 -
Total Transfers In 2 ,857,792 2 ,857,792 2 ,857,792 -
Transfers Out To:
General Capital Projects Fund 4 ,791,988 1 5,791,988 1 5,791,988 -
Roads Capital Projects Fund 550,000 550,000 550,000 -
Roads Operating Fund - 4 ,718,638 3 ,640,916 1 ,077,722
Department of Aging 2 ,160,261 2 ,243,910 1 ,354,155 889,755
Department of Housing and Community Services 602,822 624,387 516,688 107,699
Community Partnerships 466,117 585,316 579,062 6,254
Agricultural Transfer Tax - 978,433 978,433 -
Grants Fund 36,000 44,000 36,935 7,065
Impact Fees - Fire Companies/Contingencies 90,000 154,215 154,215 -
Airport Enterprise Fund 59,455 59,455 59,455 -
Golf Course Enterprise Fund 175,000 175,000 - 175,000
Total Transfers Out 8 ,931,643 2 5,925,342 2 3,661,847 2 ,263,495
Total Other Financing (Uses) (6,055,851) (20,910,475) (18,544,376) (2,160,891)
Net Increase (Decrease) in Fund Balance $ (1,500,000) $ (3,487,367) $ 8 ,830,372 $ 12,317,739
128

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GRANTS FUND
FOR THE YEAR ENDED JUNE 30, 2023
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ -
Recordation Taxes - - - -
State Shared Taxes - - - -
Licenses and Permits - - - -
Intergovernmental 892,629 3,166,082 1,535,667 (1,630,415)
Charges for Current Services - - 21,782 21,782
Fines and Forfeitures - - - -
Investment Income - - - -
Donations - - - -
Miscellaneous - - 80,029 80,029
Total Revenues 892,629 3,166,082 1,637,478 (1,528,604)
EXPENDITURES
Current
General Government 98,109 98,109 79,407 18,702
Public Safety 481,009 992,049 975,469 16,580
Public Works 55,349 55,349 18,739 36,610
Parks & Recreation - - - -
Health and Social Services 206,162 206,162 218,301 (12,139)
Education and Library - - - -
Conservation of Natural Resources - - - -
Economic/Community Development 88,000 1,858,413 382,497 1,475,916
Intergovernmental - - - -
Miscellaneous - - - -
Capital Outlay - - - -
Debt Service
Principal - - - -
Interest - - - -
Total Expenditures 928,629 3,210,082 1,674,413 1,535,669
Excess of Revenues Over
(Under) Expenditures (36,000) (44,000) (36,935) 7 ,065
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - -
Insurance Proceeds - - - -
Transfers In 36,000 44,000 36,935 (7,065)
Transfers Out - (240,000) (240,000) -
Total Other Financing Sources (Uses) 36,000 (196,000) (203,065) (7,065)
Net Increase (Decrease) in Fund Balance $ - $ (240,000) $ (240,000) $ -
129

QUEEN ANNE'S COUNTY, MARYLAND
MARYLAND STATE RETIREMENT AND PENSION SYSTEMS
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (as of measurement date)
Plan's
Fiduciary
Employer's Employer's Proportionate Net Position
Proportion Proportion Share Plan's as a
(Percentage) Share as a Total Plan's Percentage
of the of the Employer's Percentage Fiduciary Total of Total
Measurement Collective Collective Covered of Covered Net Pension Pension
Date NPL NPL Payroll Payroll Position Liability Liability
A B C (B / C) D E (D / E)
June 30, 2014 0.1038567% $ 18,431,162 $ 19,929,409 92% $ 45,339,988,000 $ 63,086,719,000 72%
June 30, 2015 0.1189567% 24,721,248 21,231,535 116% 45,789,840,000 66,571,552,000 69%
June 30, 2016 0.1271511% 30,000,070 23,160,758 130% 45,365,927,000 68,959,954,000 66%
June 30, 2017 0.1232988% 26,661,766 24,681,589 108% 48,987,184,000 70,610,885,000 69%
June 30, 2018 0.1383948% 29,037,440 26,088,826 111% 51,827,233,000 72,808,833,000 71%
June 30, 2019 0.1429452% 29,483,317 26,185,838 113% 53,943,420,000 74,569,030,000 72%
June 30, 2020 0.1514518% 34,230,163 27,669,757 124% 54,586,037,000 77,187,397,000 71%
June 30, 2021 0.1745337% 26,184,085 26,110,792 100% 67,604,500,000 82,606,805,000 82%
June 30, 2022 0.1762298% 35,261,002 27,222,595 130% 64,310,991,000 84,319,523,000 76%
SCHEDULE OF CONTRIBUTIONS (as of fiscal year end)
Actual
Contribution
as a
Contractually Contribution Employer's Percentage
Fiscal Required Actual Deficiency Covered of Covered
Year Contribution Contribution (Excess) Payroll Payroll
A B (A - B) C (B / C)
2015 $ 2 ,507,287 $ 2,507,287 $ - $ 21,231,535 12%
2016 2 ,477,009 2,477,009 - 23,160,758 11%
2017 2 ,509,551 2,509,551 - 24,681,589 10%
2018 2 ,759,698 2,759,698 - 26,088,826 11%
2019 2 ,935,378 2,935,378 - 26,185,838 11%
2020 3 ,247,222 3,247,222 - 27,669,757 12%
2021 3 ,478,809 3,478,809 - 26,110,792 13%
2022 3 ,617,905 3,617,905 - 27,222,595 13%
2023 4 ,782,356 4,782,356 - 33,312,053 14%
Both schedules are presented to illustrate the requirements to show information for 10 years. However, until a full 10-year trend is compiled,
pension plans should present information for those years for which the information is available.
130

QUEEN ANNE'S COUNTY, MARYLAND
MARYLAND STATE RETIREMENT AND PENSION SYSTEMS
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Changes in Benefit Terms
There were no changes of benefit terms during the year.
Changes in Assumptions
There were no changes in assumptions during the year.
Method and Assumptions used in Calculations of Actuarially Determined Contributions
Actuarial Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 25-year closed amortization period ending June 30, 2039; 17 years remaining.
Asset Valuation Model Five-year smoothed market (max. 120% and min 80% of the market value)
Inflation In the 2022 actuarial valuation, 2.25% general, 2.75% wage.
In the 2021 actuarial valuation, 2.25% general, 2.75% wage.
Salary Increases In the 2022 actuarial valuation, 2.75% to 11.25%.
In the 2021 actuarial valuation, 2.75% to 9.25%.
Investment Rate of Return In the 2022 actuarial valuation 6.80%.
In the 2021 actuarial valuation 6.80%.
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2019 valuation pursuant to the 2019 experience
study for the period July 1, 2014 to July 30, 2018.
Mortality Various versions of the Pub- 2010 Mortality Tables for males and females with
projected generational mortality improvements based on the MP-2018 fully
generational mortality improvements scale for males and females.
131

QUEEN ANNE'S COUNTY, MARYLAND
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY
2017 2018 2019 2020 2021 2022 2023
Total OPEB liability ("TOL")
Service cost $ 1 ,097,813 $ 1 ,130,747 $ 1 ,164,669 $ 1 ,331,424 $ 1 ,371,367 $ 1 ,226,384 $ 1,263,176
Interest 2,764,491 2 ,985,530 3 ,136,157 3 ,344,770 3 ,519,372 3,220,060 3,386,945
Changes of benefit terms - - - - - - 394,544
Differences between expected and actual experience - - 735,549 - (8,720,849) - (8,541,920)
Changes of assumptions - 265,899 915,266 426,582 (1,619,833) (686,055) (1,645,226)
Benefit payments (1,291,027) (1,498,005) (1,568,468) (1,561,872) (1,670,095) (1,731,265) (1,706,367)
Net change in TOL 2,571,277 2 ,884,171 4 ,383,173 3 ,540,904 (7,120,038) 2,029,124 (6,848,848)
TOL - beginning of year 4 8,695,013 5 1,266,290 5 4,150,461 5 8,533,634 6 2,074,538 5 4,954,500 56,983,624
TOL - end of year $ 5 1,266,290 $ 5 4,150,461 $ 5 8,533,634 $ 6 2,074,538 $ 5 4,954,500 $ 5 6,983,624 $ 50,134,776
Plan fiduciary net position ("PFNP")
Contributions - employer $ 2 ,223,474 $ 2 ,731,447 $ 3 ,037,243 $ 3 ,378,771 $ 3 ,612,555 $ 4 ,195,201 $ 4,098,432
Contributions - member - - - - - - -
Net investment income 75,175 207,932 342,827 129,710 2 ,261,978 (1,964,463) 1,430,230
Benefits payments (1,291,027) (1,498,005) (1,568,468) (1,561,872) (1,670,095) (1,731,265) (1,706,367)
Administrative expense - ( 2,452) (39,142) ( 3,553) ( 2,236) ( 5,253) (7,722)
Other - - - - - - (7,935)
Net change in PFNP 1,007,622 1 ,438,922 1 ,772,460 1 ,943,056 4 ,202,202 494,220 3,806,638
Total PFNP - beginning of year 2,804,433 3 ,812,055 5 ,250,977 7 ,023,437 8 ,966,493 1 3,168,695 13,662,915
Total PFNP - end of year $ 3 ,812,055 $ 5 ,250,977 $ 7 ,023,437 $ 8 ,966,493 $ 1 3,168,695 $ 1 3,662,915 $ 17,469,553
Net OPEB liability ("NOL") - beginning of year $ 4 5,890,580 $ 4 7,454,235 $ 4 8,899,484 $ 5 1,510,197 $ 5 3,108,045 $ 4 1,785,805 $ 43,320,709
Net OPEB liability ("NOL") - end of year $ 4 7,454,235 $ 4 8,899,484 $ 5 1,510,197 $ 5 3,108,045 $ 4 1,785,805 $ 4 3,320,709 $ 32,665,223
PFNP as a % of TOL 7.4% 9.7% 12.0% 14.4% 24.0% 24.0% 34.8%
Covered employee payroll $ 2 1,604,888 $ 2 2,282,543 $ 2 3,843,440 $ 2 5,806,124 $ 2 6,326,472 $ 2 9,071,019 $ 3 2,307,222
NOL as a % of covered employee payroll 219.6% 219.5% 216.0% 205.8% 158.7% 149.0% 101.1%
SCHEDULE OF ACTUAL EMPLOYER CONTRIBUTION AS A PERCENTAGE OF COVERED-EMPLOYEE PAYROLL
FISCAL YEAR 2017 2018 2019 2020 2021 2022 2023
Actuarially Determined Employer Contribution $ 3 ,853,839 $ 3 ,969,454 $ 4 ,377,119 $ 4 ,508,433 $ 4 ,419,451 $ 4 ,552,035 $ 3,864,103
Actual Employer Contribution 2,223,474 2 ,731,447 3 ,037,243 3 ,378,771 3 ,612,555 4,195,201 4,098,432
Contribution Deficiency / (Excess) 1,630,365 1 ,238,007 1 ,339,876 1 ,129,662 806,896 356,834 (234,329)
Covered Employee Payroll 2 1,604,888 2 2,282,543 2 3,843,440 2 5,806,124 2 6,326,472 2 9,071,019 32,307,222
Contribution as a Percent of Payroll 10.3% 12.3% 12.7% 13.1% 13.7% 14.4% 12.7%
The employer contributions above represent amounts paid in OPEB to retirees, as well as contributions to the OPEB trust.
The schedules is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those
years for which the information is available.
132

QUEEN ANNE'S COUNTY, MARYLAND
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Actuarial Information - OPEB
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, using the following actuarial
assumptions, applied to all periods included in the measurement:
Investment Return: 6.00%, net of investment expense and including inflation.
Healthcare Trend: 6.00% initially for all plans, grading down to 4.25% for PPO, EPO and BCA plans ultimate.
Mortality rates are based on the PUB2010G Headcount tables with Scale SSA applied on a generational basis. PUB2010G
Headcount Disabled tables are used for those on disability, if applicable.
Changes in Actuarial assumptions
The rates of retirement, disability, withdrawal and mortality were changed since the prior year, as well as a change in discount rate
due to an updated fund availability analysis.
Actuarial Methods for Determining Employer Contributions
The same economic and demographic assumptions are used for both funding and financial reporting purposes under GASB 74/75.
The Entry Age method is used for accounting/GASB purposes, therefore all of the actuarial figures within this Report are based on
it. Actuarially Determined Contributions are also based on the Entry Age method, with a closed level percentage of payroll
amortization of the unfunded liability (15 years remaining).
133

QUEEN ANNE'S COUNTY, MARYLAND
LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
SCHEDULE OF CHANGES IN THE NET LOSAP LIABILITY (as of measurement date)
AS OF MEASUREMENT DATE 2017 2018 2019 2020 2021 2022
Total LOSAP liability ("TLL")
Service cost $ 206,276 $ 164,371 $ 215,978 $ 2 85,808 $ 350,104 $ 268,262
Interest cost 196,904 249,496 180,529 1 58,757 174,594 409,940
Changes of benefit terms - - - - - -
Differences between expected and actual experience - 137,821 (78,468) 6 5,911 65,498 819,208
Changes of assumptions 578,039 (491,888) 1,280,343 1 ,275,769 315,113 ( 3,702,745)
Benefits payments and admin expenses (190,420) (220,060) (220,084) (231,815) ( 240,012) ( 304,558)
Net change in TLL 790,799 (160,260) 1,378,298 1 ,554,430 665,297 ( 2,509,893)
TLL - beginning of year 6,039,197 6,829,996 6,669,736 8 ,048,034 9,602,464 10,267,761
TLL - end of year $ 6,829,996 $ 6,669,736 $ 8,048,034 $ 9 ,602,464 $ 10,267,761 $ 7,757,868
Plan fiduciary net position ("PFNP")
Contributions - employer $ - $ - $ - $ - $ - $ -
Net investment income - - - - - -
Benefits payments - - - - - -
Administrative expense - - - - - -
Net change in PFNP - - - - - -
Total PFNP - beginning of year - - - - - -
Total PFNP - end of year $ - $ - $ - $ - $ - $ -
Net LOSAP liability ("NLL") $ 6,829,996 $ 6,669,736 $ 8,048,034 $ 9 ,602,464 $ 10,267,761 $ 7,757,868
PFNP as a % of TLL 0% 0% 0% 0% 0% 0%
Covered employee payroll - * N/A N/A N/A N/A N/A N/A
NLL as a % of covered payroll N/A N/A N/A N/A N/A N/A
* - the NLL is based on volunteer hours and as such has no payroll associated.
Expected average remaining service years of all participants 6 10 5 5 5 5
The schedules is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present
information for those years for which the information is available.
134

QUEEN ANNE'S COUNTY, MARYLAND
LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION - LOSAP
The LOSAP has no assets accumulated in a trust that meet the criteria in GASB 73, paragraph 4.
Benefit changes - fiscal year
2018 None
2019 None
2020 None
2021 None
2022 None
2023 None
Changes of assumptions - fiscal year
2018 None, other than discount rate
2019 None, other than discount rate
2020 None, other than discount rate
2021 None, other than discount rate
2022 None, other than discount rate
2023 None, other than discount rate
Discount rate - measurement date
December 31, 2017 3.31%
December 31, 2018 3.71%
December 31, 2019 2.75%
December 31, 2020 2.00%
December 31, 2021 1.84%
December 31, 2022 4.05%
135

O S I
THER UPPLEMENTARY NFORMATION
136

Combining and Individual Fund Statements and Schedules
The Combining and Individual Fund Statements and Schedules provide detailed information concerning the
financial position, results of operations, and budgetary comparisons for the non-major funds, capital
projects, and fiduciary funds.
137

Non-Major Governmental Funds
Non-Major Governmental Funds are used to account for the proceeds of specific revenue sources (other
than capital projects and debt service funds) that are legally restricted to expenditures for specific purposes.
138

NON-MAJOR GOVERNMENTAL FUNDS
Non-major governmental funds are special revenue funds, unless otherwise noted:
Department of Aging –This fund accounts for activities funded primarily by grants to provide services for
the elderly and is included in the social services function.
Housing and Community Services –This fund accounts for activities funded mostly by grants and
revolving loan funds that support housing rehabilitation and home-ownership and is included in the
economic and community development function.
Revolving Loan Fund–This fund accounts for activities funded by community donations and grants to
promote and provide economic development loans to local businesses and is included in the economic and
community development function.
Economic Development Incentive Fund –This fund accounts for activities funded with a portion of
recordation taxes that support economic development in the County by attracting and investing in new and
existing businessesand is included in the economic and community development function.
Roads Operation Fund–This fund accounts financial resources received from the State, plus a substantial
amount from the County, for the maintenance of County road infrastructure.
CommunityPartnerships for Children –This fund accounts for activities funded by grants allocated to
the County that provide services for children and families and is included in the social services function.
Critical Areas–This fund accounts for activities funded by payments in lieu of performance bonds that
support efforts to mitigate and preserve critical areas along the shoreline of tidal waters within the County
and is included in the conservation of natural resources function.
Law Library–This fund accounts for activities funded by court fees, fines, and contributions from local
attorneys to update legal reference materials housed in the courthouse and is included in the general
government function.
Sheriff’s Drug Task Force–This fund accounts for activities funded by drug-related forfeitures that
support drug interdiction efforts by a multi-faceted task force and is included in the public safety function.
Inmate Welfare Fund–This fund accounts for activities funded by profits earned from Detention Center
inmate-related services that promote the welfare of the inmates and is included in the public safety
function.
Agricultural Transfer Tax–This fund accounts for activities funded primarily by the Agricultural
Transfer Tax to purchase agricultural easements that preclude development and is included in the
conservation of natural resources function.
Rural Legacy –This fund accounts for activities funded primarily by Maryland’s Rural Legacy Program to
purchase easements that preclude development and is included in the conservation of natural resources
function.
DredgingSpecial Assessments–This fund accounts for activities funded by special assessment funds
collected to repay loansfor specific dredging and erosion projectsthat benefited Price’s Creek, Grove
Creek, and Narrows Pointeand isincluded in the conservation of natural resources function.
139

Kent Narrows–This fund accounts for activities funded by tax revenues to improve the Kent Narrows
areaand is included in the economic and community development function.
Capital Projects –SchoolImpact Fees–This fund accounts for financial resources generated by new
residential construction and used for the construction of public school facilities or payment of school debt
relating to such construction.
Capital Projects –Fire Company Impact Fees–This fund accounts for activities funded by impact fees
specifically earmarked to enhance local volunteer fire company preparedness resulting from new
construction and is included in the public safety function.
Capital Projects –Parks and Recreation Impact Fees–This fund accounts for activities funded by
impact fees specifically earmarked to enhance parks and recreation and is included in the parks and
recreation function.
140

141

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2023
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT ROADS FOR
OF AGING SERVICES LOAN FUND INCENTIVE OPERATING CHILDREN
ASSETS
Cash and Cash Equivalents $ - $ 5,000,878 $ - $ 941,785 739,289 $ 338,523
Prepaid Items - - - - - -
Receivables
Taxes Receivable (Net) - - - - - -
Accounts Receivable (Net) - - - 1,018 55,657 20,936
Loans Receivable (Net) - 6,087,647 90,000 - - -
Special Assessments (Net) - - - - - -
Due from Other Governments 593,180 150,374 - - 290,953 257,525
Inventory - - - - 1,274,659 -
Total Assets $ 593,180 $ 11,238,899 $ 90,000 $ 942,803 $ 2,360,558 $ 616,984
LIABILITIES
Accrued Liabilities $ 86,510 $ 20,748 $ - $ 7,831 $ 201,600 $ 238,141
Due to Other Funds 394,043 - - - - -
Due to Other Governmental Agencies - 3,507 - - - 312,625
Unearned Revenue - - - - 831,583 -
Total Liabilities 480,553 24,255 - 7,831 1,033,183 550,766
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - -
Unavailable Fees - - - - - -
Total Deferred Inflows - - - - - -
Total Liabilities and Deferred Inflows 480,553 24,255 - 7,831 1,033,183 550,766
FUND BALANCES
Nonspendable - - - - 1,274,659 -
Restricted 955 2,821,652 - - - -
Committed - 8,392,992 90,000 934,972 - -
Assigned 111,672 - - - 52,716 66,218
Unassigned - - - - - -
Total Fund Balances 112,627 11,214,644 90,000 934,972 1,327,375 66,218
Total Liabilities, Deferred Inflows
and Fund Balances $ 593,180 $ 11,238,899 $ 90,000 $ 942,803 $ 2,360,558 $ 616,984
142

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2023
(CONTINUED)
SHERIFF'S
DRUG DREDGING
CRITICAL LAW TASK INMATE AGRICULTURAL RURAL SPECIAL
AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY ASSESSMENTS
$ 372,689 $ 497,682 $ 213,557 $ 187,514 $ 2,337,926 $ 419,805 $ 5,727
- - - - - - -
- - - - - - -
- 7,461 - 4,221 - - 88
- - - - - - -
- - - - - - 607,965
- - - - - - -
- - - - - - -
$ 372,689 $ 505,143 $ 213,557 $ 191,735 $ 2,337,926 $ 419,805 $ 613,780
$ - $ - $ 58,402 $ 4,974 $ 310,709 $ - $ -
- - - - - - -
- - - - - - -
- - - - - - -
- - 58,402 4,974 310,709 - -
- - - - - - 607,965
- - - - - - -
- - - - - - 607,965
- - 58,402 4,974 310,709 - 607,965
- - - - - - -
372,689 - 155,155 186,761 2,027,217 419,805 5,815
- - - - - - -
- 505,143 - - - - -
- - - - - - -
372,689 505,143 155,155 186,761 2,027,217 419,805 5,815
$ 372,689 $ 505,143 $ 213,557 $ 191,735 $ 2,337,926 $ 419,805 $ 613,780
CONTINUED
143

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2023
(CONTINUED)
CAPITAL PROJECTS
PARKS AND TOTAL
KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 184,700 $ 11,676,570 $ 602,031 $ 569,903 $ 2 4,088,579
Prepaid Items - - - - -
Receivables
Taxes Receivable (Net) - - - - -
Accounts Receivable (Net) - - - - 8 9,381
Loans Receivable (Net) - 78,901 10,249 22,866 6 ,289,663
Special Assessments (Net) - - - - 6 07,965
Due from Other Governments - - - - 1 ,292,032
Inventory - - - - 1 ,274,659
Total Assets $ 184,700 $ 11,755,471 $ 612,280 $ 592,769 $ 3 3,642,279
LIABILITIES
Accrued Liabilities $ - $ - $ - $ - $ 9 28,915
Due to Other Funds - - - - 3 94,043
Due to Other Governmental Agencies - - - - 3 16,132
Unearned Revenue - - - - 8 31,583
Total Liabilities - - - - 2 ,470,673
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - 6 07,965
Unavailable Fees - 78,901 10,249 22,866 1 12,016
Total Deferred Inflows - 78,901 10,249 22,866 7 19,981
Total Liabilities and Deferred Inflows - 78,901 10,249 22,866 3 ,190,654
FUND BALANCES
Nonspendable - - - - 1 ,274,659
Restricted 184,700 - - - 6 ,174,749
Committed - 11,676,570 602,031 569,903 2 2,266,468
Assigned - - - - 7 35,749
Unassigned - - - - -
Total Fund Balances 184,700 11,676,570 602,031 569,903 3 0,451,625
Total Liabilities, Deferred Inflows
and Fund Balances $ 184,700 $ 11,755,471 $ 612,280 $ 592,769 $ 3 3,642,279
144

145

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT ROADS FOR
OF AGING SERVICES LOAN FUND INCENTIVE OPERATING CHILDREN
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ -
Recordation Taxes - 2 70,345 - - - -
State Shared Taxes - - - - 1 ,293,309 -
Licenses and Permits - - - - - -
Intergovernmental 2 ,137,727 9 47,605 - - - 7 33,096
Charges for Current Services 5 8,061 6 20,000 - - 2 53,124 -
Fines and Forfeitures - - - - - -
Investment Income 2 1,928 3 6,684 - - - 6 04
Donations 1 9,676 - - - - -
Miscellaneous 1 8,386 5 ,000 - 2 1,195 1 5,023 2 4,951
Total Revenues 2 ,255,778 1 ,879,634 - 2 1,195 1 ,561,456 7 58,651
EXPENDITURES
Current
General Government - - 1 2,968 - - -
Public Safety - - - - - -
Public Works - - - - 5 ,210,341 -
Parks & Recreation - - - - - -
Health & Social Services 3 ,626,979 - - - - 1 ,337,109
Conservation of Natural Resources - - - - - -
Economic/Community Development - 1 ,469,292 - 1 22,498 - -
Capital Outlay - - - - - -
Debt Service
Principal - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 3 ,626,979 1 ,469,292 1 2,968 1 22,498 5 ,210,341 1 ,337,109
Excess of Revenues Over (Under) Expenditures (1,371,201) 4 10,342 (12,968) (101,303) (3,648,885) (578,458)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 1 ,775 - - - 7,969 -
Insurance Proceeds 3 6,325 - - - - -
Transfers In 1 ,354,154 5 16,688 - 7 12,272 3 ,640,916 5 79,062
Transfers Out - - (472,271) - - -
Other Financing Sources (Uses) 1 ,392,254 5 16,688 (472,271) 7 12,272 3 ,648,885 5 79,062
Net Increase (Decrease) in Fund Balances 2 1,053 9 27,030 (485,239) 6 10,969 - 6 04
Fund Balances, July 1 9 1,574 1 0,287,614 5 75,239 3 24,003 1 ,327,375 6 5,614
Fund Balances, June 30 $ 1 12,627 $ 1 1,214,644 $ 9 0,000 $ 9 34,972 $ 1 ,327,375 $ 6 6,218
146

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
SHERIFF'S
DRUG DREDGING
CRITICAL LAW TASK INMATE AGRICULTURAL RURAL SPECIAL
AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY ASSESSMENTS
$ - $ - $ - $ - $ - $ - $ -
- - - - - - -
- - - - 5 9,283 - -
- - - - - - -
- - - - - 1 ,902,438 -
6 9,460 1 4,134 - 8 1,110 - - 4 6,124
- 4 6,305 2 0,318 - - - -
- 1 8,481 7 ,883 7 ,459 - 2 3,030 2 41
- - - - - - -
- - - 8 ,887 - - -
6 9,460 7 8,920 2 8,201 9 7,456 5 9,283 1 ,925,468 4 6,365
- 2 4,772 - - - - -
- - 5 3,442 1 20,580 - - -
- - - - - - -
- - - - - - -
- - - - - - -
4 8,332 - - - 7 67,362 1 ,889,788 -
- - - - - - -
- - - - - - -
- - - - - - 4 7,816
- - - - - - -
4 8,332 2 4,772 5 3,442 1 20,580 7 67,362 1 ,889,788 4 7,816
2 1,128 5 4,148 (25,241) (23,124) (708,079) 3 5,680 (1,451)
- - - - - - -
- - - - - - -
- - - - 9 78,433 - -
- - - - - - -
- - - - 9 78,433 - -
2 1,128 5 4,148 (25,241) (23,124) 2 70,354 3 5,680 (1,451)
3 51,561 4 50,995 1 80,396 2 09,885 1 ,756,863 3 84,125 7 ,266
$ 3 72,689 $ 5 05,143 $ 1 55,155 $ 1 86,761 $ 2 ,027,217 $ 4 19,805 $ 5 ,815
CONTINUED
147

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
CAPITAL PROJECTS
PARKS AND TOTAL
KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ 4 9,615 $ - $ - $ - $ 4 9,615
Recordation Taxes - - - - 2 70,345
State Shared Taxes - - - - 1 ,352,592
Licenses and Permits - - - - -
Intergovernmental - - - - 5 ,720,866
Charges for Current Services - 2 ,237,364 4 19,803 2 63,955 4 ,063,135
Fines and Forfeitures - - - - 6 6,623
Investment Income 8 ,093 5 05,658 2 8,014 2 2,667 6 80,742
Donations - - - - 1 9,676
Miscellaneous - - - - 9 3,442
Total Revenues 5 7,708 2 ,743,022 4 47,817 2 86,622 1 2,317,036
EXPENDITURES
Current
General Government - - - - 3 7,740
Public Safety - - 5 40,821 - 7 14,843
Public Works - - - - 5 ,210,341
Parks & Recreation - - - - -
Health & Social Services - - - - 4 ,964,088
Conservation of Natural Resources - - - - 2 ,705,482
Economic/Community Development 4 0,000 - - - 1 ,631,790
Capital Outlay - - - - -
Debt Service
Principal - - - - 4 7,816
Interest and Fiscal Charges - - - - -
Total Expenditures 4 0,000 - 5 40,821 - 1 5,312,100
Excess of Revenues Over (Under) Expenditures 1 7,708 2 ,743,022 (93,004) 2 86,622 (2,995,064)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - 9 ,744
Insurance Proceeds - - - - 3 6,325
Transfers In - - 1 54,215 - 7 ,935,740
Transfers Out - (2,857,792) - (800,000) (4,130,063)
Other Financing Sources (Uses) - (2,857,792) 1 54,215 (800,000) 3 ,851,746
Net Increase (Decrease) in Fund Balances 1 7,708 (114,770) 6 1,211 (513,378) 8 56,682
Fund Balances, July 1 1 66,992 1 1,791,340 5 40,820 1 ,083,281 2 9,594,943
Fund Balances, June 30 $ 1 84,700 $ 1 1,676,570 $ 6 02,031 $ 5 69,903 $ 3 0,451,625
148

149

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
DEPARTMENT OF AGING HOUSING AND COMMUNITY SERVICES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - 200,000 200,000 270,345 70,345
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 1,141,906 1,379,866 2,137,727 757,861 839,300 1,192,998 947,605 (245,393)
Charges for Current Services 111,100 111,100 58,061 (53,039) 400,000 400,000 620,000 220,000
Fines and Forfeitures - - - - - - - -
Investment Income - - 21,928 21,928 - - 36,684 36,684
Donations 35,000 35,000 19,676 ( 15,324) - - - -
Miscellaneous 36,000 42,238 18,386 ( 23,852) - 5,000 5,000 -
Total Revenues 1,324,006 1,568,204 2,255,778 687,574 1,439,300 1,797,998 1,879,634 81,636
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services 3,484,267 3,812,114 3,626,979 185,135 - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development - - - - 2,042,122 2,446,235 1,469,292 976,943
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 3,484,267 3,812,114 3,626,979 185,135 2,042,122 2,446,235 1,469,292 976,943
Excess of Revenues Over
(Under) Expenditures ( 2,160,261) ( 2,243,910) (1,371,201) 872,709 (602,822) (648,237) 410,342 1,058,579
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - 1,775 1,775 - - - -
Insurance Proceeds - - 36,325 36,325 - - - -
Transfers In 2,160,261 2,243,910 1,354,154 ( 889,756) 602,822 624,387 516,688 (107,699)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 2,160,261 2,243,910 1,392,254 ( 851,656) 602,822 624,387 516,688 (107,699)
Net Increase (Decrease) in Fund Balances $ - $ - $ 21,053 $ 21,053 $ - $ (23,850) $ 927,030 $ 950,880
150

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
ECONOMIC DEVELOPMENT INCENTIVE ROADS OPERATING
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - 1,253,000 1,293,309 40,309
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services - - - - - 95,000 253,124 158,124
Fines and Forfeitures - - - - - - - -
Investment Income - - - - - - - -
Donations - - - - - - - -
Miscellaneous 27,100 27,100 21,195 ( 5,905) - - 15,023 15,023
Total Revenues 27,100 27,100 21,195 ( 5,905) - 1,348,000 1,561,456 213,456
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - - 6,066,638 5,210,341 856,297
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development 125,000 917,272 122,498 794,774 - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 125,000 917,272 122,498 794,774 - 6,066,638 5,210,341 856,297
Excess of Revenues Over
(Under) Expenditures ( 97,900) (890,172) (101,303) 788,869 - (4,718,638) ( 3,648,885) 1,069,753
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - 7,969 7,969
Insurance Proceeds - - - - - - - -
Transfers In - 712,272 712,272 - - 4,718,638 3,640,916 ( 1,077,722)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - 712,272 712,272 - - 4,718,638 3,648,885 ( 1,069,753)
Net Increase (Decrease) in Fund Balances $ (97,900) $ (177,900) $ 610,969 $ 788,869 $ - $ - $ - $ -
CONTINUED
151

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
COMMUNITY PARTNERSHIPS FOR CHILDREN LAW LIBRARY
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 641,718 734,516 733,096 ( 1,420) - - - -
Charges for Current Services - - - - 10,000 10,000 14,134 4,134
Fines and Forfeitures - - - - 15,500 15,500 46,305 30,805
Investment Income - - 604 604 - - 18,481 18,481
Donations - - - - - - - -
Miscellaneous 11,000 11,000 24,951 13,951 - - - -
Total Revenues 652,718 745,516 758,651 13,135 25,500 25,500 78,920 53,420
EXPENDITURES
Current
General Government - - - - 25,500 25,500 24,772 728
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services 1,118,835 1,330,832 1,337,109 ( 6,277) - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 1,118,835 1,330,832 1,337,109 ( 6,277) 25,500 25,500 24,772 728
Excess of Revenues Over
(Under) Expenditures ( 466,117) (585,316) (578,458) 6,858 - - 54,148 54,148
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In 466,117 585,316 579,062 ( 6,254) - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 466,117 585,316 579,062 ( 6,254) - - - -
Net Increase (Decrease) in Fund Balances $ - $ - $ 604 $ 604 $ - $ - $ 54,148 $ 54,148
152

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
INMATE WELFARE ARGICULTURAL TRANSFER
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - 125,000 125,000 59,283 ( 65,717)
Licenses and Permits - - - - - - - -
Intergovernmental 10,890 10,890 - (10,890) - - - -
Charges for Current Services 125,000 125,000 81,110 ( 43,890) - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 7,459 7,459 - - - -
Donations - - - - - - - -
Miscellaneous 16,310 16,310 8,887 ( 7,423) - - - -
Total Revenues 152,200 152,200 97,456 ( 54,744) 125,000 125,000 59,283 ( 65,717)
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety 148,150 148,150 120,580 27,570 - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - 1,197,394 2,175,827 767,362 1,408,465
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay 15,000 15,000 - 15,000 - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 163,150 163,150 120,580 42,570 1,197,394 2,175,827 767,362 1,408,465
Excess of Revenues Over
(Under) Expenditures ( 10,950) ( 10,950) ( 23,124) ( 12,174) (1,072,394) ( 2,050,827) ( 708,079) 1,342,748
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - 978,433 978,433 -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - 978,433 978,433 -
Net Increase (Decrease) in Fund Balances $ (10,950) $ (10,950) $ (23,124) $ (12,174) $ (1,072,394) $ (1,072,394) $ 270,354 $ 1,342,748
CONTINUED
153

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
RURAL LEGACY DREDGING SPECIAL ASSESSMENTS
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 1,650,321 1,902,438 1,902,438 - - - - -
Charges for Current Services - - - - 47,816 47,816 46,124 ( 1,692)
Fines and Forfeitures - - - - - - - -
Investment Income - - 23,030 23,030 - - 241 241
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 1,650,321 1,902,438 1,925,468 23,030 47,816 47,816 46,365 ( 1,451)
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources 1,650,321 1,902,438 1,889,788 12,650 - - - -
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - 47,816 47,816 47,816 -
Interest - - - - - - - -
Total Expenditures 1,650,321 1,902,438 1,889,788 12,650 47,816 47,816 47,816 -
Excess of Revenues Over
(Under) Expenditures - - 35,680 35,680 - - (1,451) ( 1,451)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - $ 35,680 $ 35,680 $ - $ - $ ( 1,451) $ ( 1,451)
154

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
KENT NARROWS FUND CAPITAL PROJECTS - SCHOOL IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 38,000 $ 40,000 $ 49,615 $ 9,615 $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services - - - - 2,000,000 2,000,000 2,237,364 237,364
Fines and Forfeitures - - - - - - - -
Investment Income - - 8,093 8,093 - - 505,658 505,658
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 38,000 40,000 57,708 17,708 2,000,000 2,000,000 2,743,022 743,022
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development 38,000 40,000 40,000 - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 38,000 40,000 40,000 - - - - -
Excess of Revenues Over
(Under) Expenditures - - 17,708 17,708 2,000,000 2,000,000 2,743,022 743,022
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - (2,857,792) ( 2,857,792) ( 2,857,792) -
Total Other Financing Sources (Uses) - - - - (2,857,792) ( 2,857,792) ( 2,857,792) -
Net Increase (Decrease) in Fund Balances $ - $ - $ 17,708 $ 17,708 $ (857,792) $ ( 857,792) $ ( 114,770) $ 743,022
CONTINUED
155

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 266,500 231,895 419,803 187,908 299,600 299,600 263,955 ( 35,645)
Fines and Forfeitures - - - - - - - -
Investment Income 500 500 28,014 27,514 400 400 22,667 22,267
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 267,000 232,395 447,817 215,422 300,000 300,000 286,622 ( 13,378)
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety 357,000 605,034 540,821 64,213 - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 357,000 605,034 540,821 64,213 - - - -
Excess of Revenues Over
(Under) Expenditures ( 90,000) (372,639) ( 93,004) 279,635 300,000 300,000 286,622 ( 13,378)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In 90,000 154,215 154,215 - - - - -
Transfers Out - - - - (300,000) ( 1,000,000) ( 800,000) 200,000
Total Other Financing Sources (Uses) 90,000 154,215 154,215 - (300,000) ( 1,000,000) ( 800,000) 200,000
Net Increase (Decrease) in Fund Balances $ - $ (218,424) $ 61,211 $ 279,635 $ - $ (700,000) $ ( 513,378) $ 186,622
156

NON-MAJOR ENTERPRISE FUNDS
Non-Major Enterprise funds account for activities which are commercial in nature and are primarily or
partially intended to be self-supporting.Each fund sets its rates and service charges at a level sufficient to:
(1) meet all of its operating expenses; (2) provide for depreciation from wear and obsolescenceof capital
assets; and (3) to the extent that funds are not borrowed, finance the cost of expansion of physical facilities.
157

NON-MAJOR ENTERPRISE FUNDS
Non-major enterprise funds include the following funds:
Blue Heron Golf Course –This fund accounts for operation and maintenance of an 18-hole public golf
course that is owned and operated by the County.
Public Landings and Marinas –This fund accounts for operation, maintenance, and major repairs of
public landings,bulkheads, and public marinas. For a fee, the general public has access to these landings to
launch small craft into the many waterways that surround the Countyand can also access the marinas for
temporary mooring.
158

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
June 30, 2023
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
ASSETS
Current Assets
Equity in Pooled Cash $ - $ 820,878 $ 820,878
Accounts Receivable (Net) - 66,091 66,091
Due from Other Governments - 78,390 78,390
Inventories 8,038 - 8,038
Total Current Assets 8,038 965,359 973,397
Capital Assets 3,705,696 7,571,780 11,277,476
Less Accumulated Depreciation (825,448) (1,737,373) (2,562,821)
Total Capital Assets, Net of Depreciation 2,880,248 5,834,407 8,714,655
Total Assets 2,888,286 6,799,766 9,688,052
DEFERRED OUTFLOWS OF RESOURCES
OPEB - 7,563 7,563
Pension Benefits 32,685 66,054 98,739
Deferred Charge on Refunding - 588 588
Total Deferred Outflows of Resources 32,685 74,205 106,890
LIABILITIES
Current Liabilities
Accounts Payable 37,440 97,306 134,746
Accrued Interest Payable 1,508 8,356 9,864
Due to Other Funds 294,047 - 294,047
Unearned Revenue 6,779 - 6,779
Current Portion of Compensated Absences 11,404 29,471 40,875
Current Portion of Lease Payable 27,269 - 27,269
Current Portion of Bonds/Notes Payable 4,781 72,953 77,734
Total Current Liabilities 383,228 208,086 591,314
Noncurrent Liabilities
Compensated Absences 7,873 20,345 28,218
OPEB - 236,477 236,477
Net Pension Liability 67,916 138,816 206,732
Lease Payable 110,715 - 110,715
Bonds/Notes Payable 80,199 623,597 703,796
Total Noncurrent Liabilities 266,703 1,019,235 1,285,938
Total Liabilities 649,931 1,227,321 1,877,252
DEFERRED INFLOWS OF RESOURCES
OPEB - 64,932 64,932
Pension Benefits 15,034 29,628 44,662
Bond Refundings - 1,561 1,561
Total Deferred Inflows of Resources 15,034 96,121 111,155
NET POSITION
Net Investment in Capital Assets 2,657,284 5,136,884 7,794,168
Unrestricted Amounts (Deficit) (401,278) 413,645 12,367
Total Net Position $ 2,256,006 $ 5,550,529 $ 7,806,535
159

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
OPERATING REVENUES
Charges for Services $ 617,340 $ 465,730 $ 1,083,070
Intergovernmental - 745,966 745,966
Material Sales 50,297 - 50,297
Miscellaneous Revenues 16 28,990 29,006
Total Operating Revenues 667,653 1,240,686 1,908,339
OPERATING EXPENSES
Recreation 662,658 542,604 1,205,262
OPEB - (8,293) (8,293)
Pension Liability Adjustment (11,467) (22,161) (33,628)
Depreciation and amortization 43,937 152,746 196,683
Total Operating Expenses 695,128 664,896 1,360,024
Operating Income (Loss) (27,475) 575,790 548,315
NON-OPERATING REVENUES (EXPENSES)
Interest Expense (2,696) (19,789) (22,485)
Total Non-Operating (Expenses) (2,696) (19,789) (22,485)
Transfers In (Out) 470,000 - 470,000
Change in Net Position 439,829 556,001 995,830
Total Net Position - Beginning of Year 1,816,177 4,994,528 6,810,705
Total Net Position - End of Year $ 2,256,006 $ 5,550,529 $ 7,806,535
160

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 667,637 $ 467,231 $ 1,134,868
Receipts from other operating revenues 2,479 1,337,318 1,339,797
Payments to suppliers (660,382) (510,139) (1,170,521)
Payments to employees and on behalf of employees 1,319 5,423 6,742
Net Cash Provided by Operating Activities 11,053 1,299,833 1,310,886
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds 470,000 - 470,000
(Payments) Receipts of interfund loans (69,686) (250,218) (319,904)
Net Cash Provided (Used) by Noncapital Financing Activities 400,314 (250,218) 150,096
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on lease and bond payables (17,032) (76,331) (93,363)
Deferred Refunding costs on sale of bonds - (76) (76)
Interest paid on capital debt (2,508) (17,817) (20,325)
Acquisition and Construction of Capital Assets (539,426) (134,513) (673,939)
Net Cash Used by Capital and Related Financing Activities (558,966) (228,737) (787,703)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - - -
Net Cash Provided (Used) by Investing Activities - - -
Net increase (decrease) in cash and cash equivalents (147,599) 820,878 673,279
Balances - Beginning of year 147,599 - 147,599
Balances - End of year $ - $ 820,878 $ 820,878
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (27,475) $ 575,790 $ 548,315
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Amortization and Depreciation 43,937 152,746 196,683
Changes in assets and liabilities:
Accounts receivable, net - 1,501 1,501
Operating grants receivable - 562,362 562,362
Inventories and Prepaid Expenses (118) - (118)
Vendor accounts payable 2,394 32,465 34,859
Uneared revenue collected in advance 2,463 - 2,463
Compensated absences 1,320 5,423 6,743
OPEB - (8,293) (8,293)
Net Pension Liability (11,468) (22,161) (33,629)
Net Cash Provided (Used) by Operating Activities $ 11,053 $ 1,299,833 $ 1,310,886
Noncash investing, capital and financing activities:
Lease Inception $ 142,748 $ - $ 142,748
161

FIDUCIARY FUNDS
Fiduciary funds account for assets held for others, in a trustee or agency capacity, which cannot be used to
support other government programs.
CustodialFunds account for assets held by the County on behalf of individuals, private organizations, or
other governments and/or funds. Additional combining schedules for the County’s CustodialFunds are
included in this section.
162

.
CUSTODIAL FUNDS
Custodialfunds are as follows:
Tax Ditch –This fund accounts for special taxing district revenues that are used to maintain drainage
ditches located in parts of the County.
Zoning Deposits –This fund accounts for performance deposits required under various sections of the
Zoning Ordinance.
State and Town Tax Collections –This fund accounts for collections received by the County on behalf of
the State of Maryland and incorporated towns located within the County. These taxes are collected by the
County along with County taxes and are then remitted to the proper jurisdiction.
Motor Vehicle Administration Deposits–This fund accounts for funds collected by the County for State
vehicle registration fees.
Escheat –Abandoned Property–This fund accounts for stale-dated County payroll and disbursements
checks that are voided by the County and remitted to the State after three years as abandoned property. In
accordance with State statutes, these funds are available to be claimed by the original payee or they revert
to the State.
Inmate Welfare–This fund accounts for earnings or other funds depositedinto an account established for
the inmates. Inmates can use these funds to make purchases at the commissary. Any remaining funds
belonging to an inmate ispaid to themupon release.
163

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2023
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED INMATE CUSTODIAL
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY WELFARE FUNDS
ASSETS
Cash and Cash Equivalents $ 1 88,390 $ 7 67,670 $ 2 45,714 $ - $ 2 3,164 $ 3 9,632 $ 1 ,264,570
Total Assets $ 1 88,390 $ 7 67,670 $ 2 45,714 $ - $ 2 3,164 $ 3 9,632 $ 1 ,264,570
LIABILITIES
Accounts Payable and Other Liabilities $ - $ - $ - $ - $ - $ 2 ,095 $ 2 ,095
Due to Other Governments - - 2 45,714 - 2 3,164 - 2 68,878
Total Liabilities $ - $ - $ 2 45,714 $ - $ 2 3,164 $ 2 ,095 $ 2 70,973
NET POSITION
Restricted for:
Individuals, Organizations, and
other Governments $ 1 88,390 $ 7 67,670 $ - $ - $ - $ 3 7,537 $ 9 93,597
164

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED INMATE CUSTODIAL
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY WELFARE FUNDS
ADDITIONS
Tax Ditch $ 3 2,139 $ - $ - $ - $ - $ - $ 3 2,139
Zoning Deposits - 2 03,354 - - - - 2 03,354
Tax Collections for Other Governments - - 1 5,816,966 - - - 1 5,816,966
Motor Vehicle Administration - - - 2 27,190 - - 2 27,190
Escheat - Abandoned Property - - - - 43,690 - 4 3,690
Inmate Welfare - - - - - 1 22,965 1 22,965
Total Additions 3 2,139 2 03,354 1 5,816,966 2 27,190 4 3,690 1 22,965 1 6,446,304
DEDUCTIONS
Distribution of Tax Ditch Funds 1 6,201 - - - - - 1 6,201
Refund of Zoning Deposits - 9 6,971 - - - - 9 6,971
Payments of Tax to Other Governments - - 1 5,816,966 - - - 1 5,816,966
Payments to Motor Vehicle Administration - - - 2 27,190 - - 2 27,190
Payments of Escheat to Others - - - - 4 3,690 - 4 3,690
Distribution of Inmate Welfare Funds - - - - - 1 22,288 1 22,288
Total Deductions 1 6,201 9 6,971 1 5,816,966 2 27,190 4 3,690 1 22,288 1 6,323,306
Net increase (decrease) in Fiduciary Net Position 1 5,938 1 06,383 - - - 6 77 1 22,998
Net Position-Beginning of Year 1 72,452 6 61,287 - - - 3 6,860 8 70,599
Net Position-End of Year $ 1 88,390 $ 7 67,670 $ - $ - $ - $ 3 7,537 $ 9 93,597
165

Community Partnerships for Children
Community Partnerships for Children is reported as a Non-Major Special Revenue Fund in the County’s
financial statements. In lieu of preparing separate audited financial statements for the Partnership,
additional schedules have been added to the County’s financial statements to meet requirements of the
Partnership’s grantor agencies.
166

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2023 (with Summarized Totals as of June 30, 2022)
Fed/State Total Returned 2022
GOCCP Community Reinvestment 2023 Summarized
Admin GOC Partnerships Fund Total Total
ASSETS
Cash and cash equivalents $ 152,629 $ 175,612 $ 328,241 $ 10,282 $ 338,523 $ 447,451
Accounts receivable 9,230 11,706 20,936 - 20,936 12,000
Due from State governmental agencies - 257,525 257,525 - 257,525 82,690
Due from Federal governmental agencies - - - - - -
Total Assets $ 161,859 $ 444,843 $ 606,702 $ 10,282 $ 616,984 $ 542,141
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 61,771 $ 176,370 $ 238,141 $ - $ 238,141 $ 169,066
Due to State governmental agencies 45,978 266,647 312,625 - 312,625 307,461
Total Liabilities 107,749 443,017 550,766 - 550,766 476,527
FUND BALANCES
Assigned 54,110 1,826 55,936 10,282 66,218 65,614
Total Fund Balances 54,110 1,826 55,936 10,282 66,218 65,614
Total Liabilities and Fund Balances $ 161,859 $ 444,843 $ 606,702 $ 10,282 $ 616,984 $ 542,141
167

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2023 (with Summarized Totals for Year Ended June 30, 2022)
Federal/State GOCCP/GOC
Healthy MD
Community Achievement Local Transportation Fam/Home Family After School Community
Administrative Support Mentoring Care Team Voucher Visiting Navigators Opportunity Mentoring
REVENUES
CPA
Intergovernmental
GOC $ 79,890 $ 53,783 $ 60,319 $ 32,351 $ 45,469 $ 72,145 $ 42,804 $ - $ 46,219
Subtotal CPA 79,890 53,783 60,319 32,351 45,469 72,145 42,804 - 46,219
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - - - - - - - -
Other State Grant Funding - - - - - 296,170 - - -
Investment Income - - - - - - - - -
Earned Reinvestment Donations - - - - - - - - -
Miscellaneous 11,075 - - - - - - 3,946 -
Subtotal Non-CPA 11,075 - - - - 296,170 - 3,946 -
Total Revenues 90,965 53,783 60,319 32,351 45,469 368,315 42,804 3,946 46,219
EXPENDITURES
CPA
Program Contracted Services - - - - - - - - -
Other Expenditures
Salaries 45,737 - - 26,424 13,708 - - - -
Fringe Benefit Costs 3,793 - - 4,860 1,162 - - - -
Auditing - - - - - - - - -
Consultants - 5,615 - - - 1,018 - - -
Professional Groups - - - - - - - - -
Equipment Rental 747 - - - - - - - -
Other Contracted Services 27,812 12,990 - - - - 37,741 - 3,704
Postage - - - - - 2 - - -
Office Supplies - - 199 - - 516 357 - -
Program Supplies - 417 1,416 - 30,599 11,085 887 - 1,579
Food - 2,511 - - - 200 - - 1,435
Printing and Publishing - - - - - 15 - - 265
Data Processing Supplies - - - - - 3,240 - - -
Repairs and Equipment - - - - - 300 1,723 - -
Business Travel - - 2,355 - - 282 1,342 - 659
Subscriptions and Dues 2,683 - - - - - 272 - -
Meetings & Conferences - - - - - - - - -
Training - 32,250 - - - 3,425 - - -
Advertising - - - - - 1,349 - - -
Communications - - 363 - - 1,000 482 - -
Rent - - - - - 33 - - 8,000
Equipment under $1000/$500 - - - 1,067 - 1,231 - - -
Other Charges - - 55,986 - - 48,449 - - 30,577
Subtotal CPA Expenditures 80,772 53,783 60,319 32,351 45,469 72,145 42,804 - 46,219
Non-CPA
Program Contracted Services - - - - - 296,170 - 120,000 -
Other Expenditures
Salaries 98,868 - - - 3,928 - - - -
Fringe Benefit Costs 50,295 - - - 2,080 - - - -
Consultants 4,013 - - - - - - - -
Equipment Rental 2,819 - - - - - - - -
Other Contracted Services 9,188 - - - - - - - -
Postage 150 - - - - - - - -
Office Supplies 2,731 - - - - - - - -
Program Supplies 11,900 - - - 206 - - - -
Food 2,359 - - - - - - - -
Equipment Operation - - - - - - - - -
Business Travel - - - - - - - - -
Subscriptions and Dues 5,000 - - - - - - - -
Meetings & Conferences 2,000 - - - - - - - -
Training 2,624 - - - - - - - -
Board's Expenditures 4,661 - - - - - - - -
Advertising - - - - - - - - -
Marketing/Promotions - - - - - - - - -
Communications 1,326 - - - - - - - -
Rent - - - - - - - - -
Other Charges 11,139 - - - - - - 243,946 -
Office equipment - - - - - - - - -
Subtotal Non-CPA Expenditures 209,073 - - - 6,214 296,170 - 363,946 -
Total Expenditures 289,845 53,783 60,319 32,351 51,683 368,315 42,804 363,946 46,219
Excess of Revenues Over (Under) Expenditure ( 198,880) - - - ( 6,214) - - ( 360,000) -
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 198,879 - - - 6,214 - - 360,000 -
Other Financing Sources 198,879 - - - 6,214 - - 360,000 -
Net Increase in Fund Balances $ ( 1) $ - $ - $ - $ - $ - $ - $ - $ -
Fund Balances, July 1
Fund Balances, June 30
168

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2023 (with Summarized Totals for Year Ended June 30, 2022)
(CONTINUED)
Federal/State GOCCP/GOC State Federal
GOCCP/GOC State GOC GOCCP GOCCP
Character Operating Fund All Programs CPA Non-CPA Non-CPA Youth
Counts Total Subtotal Subtotal Subtotal Subtotal Strategies
$ - $ 353,090 $ 432,980 $ 432,980 $ - $ - $ -
- 353,090 432,980 432,980 - - -
- - - - - - -
- 296,170 296,170 - - - -
- - - - - - -
- - - - - - -
13,875 17,821 28,896 - - - -
13,875 313,991 325,066 - - - -
13,875 667,081 758,046 432,980 - - -
- - - - - - -
- 40,132 85,869 85,869 - - -
- 6,022 9,815 9,815 - - -
- - - - - - -
- 6,633 6,633 6,633 - - -
- - - - - - -
- - 747 747 - - -
- 54,435 82,247 82,247 - - -
- 2 2 2 - - -
- 1,072 1,072 1,072 - - -
- 45,983 45,983 45,983 - - -
- 4,146 4,146 4,146 - - -
- 280 280 280 - - -
- 3,240 3,240 3,240 - - -
- 2,023 2,023 2,023 - - -
- 4,638 4,638 4,638 - - -
- 272 2,955 2,955 - - -
- - - - - - -
- 35,675 35,675 35,675 - - -
- 1,349 1,349 1,349 - - -
- 1,845 1,845 1,845 - - -
- 8,033 8,033 8,033 - - -
- 2,298 2,298 2,298 - - -
- 135,012 135,012 135,012 - - -
- 353,090 433,862 433,862 - - -
- 416,170 416,170 - 416,170 - -
21,715 25,643 124,511 - 124,511 - -
2,834 4,914 55,209 - 55,209 - -
- - 4,013 - 4,013 - -
- - 2,819 - 2,819 - -
- - 9,188 - 9,188 - -
- - 150 - 150 - -
42 42 2,773 - 2,773 - -
- 206 12,106 - 12,106 - -
- - 2,359 - 2,359 - -
280 280 280 - 280 - -
- - - - - - -
- - 5,000 - 5,000 - -
- - 2,000 - 2,000 - -
- - 2,624 - 2,624 - -
- - 4,661 - 4,661 - -
- - - - - - -
2,973 2,973 2,973 - 2,973 - -
- - 1,326 - 1,326 - -
- - - - - - -
- 243,946 255,085 - 255,085 - -
- - - - - - -
27,844 694,174 903,247 - 903,247 - -
27,844 1,047,264 1,337,109 433,862 903,247 - -
( 13,969) ( 380,183) ( 579,063) ( 882) ( 903,247) - -
-
13,969 380,183 579,062 - - - -
13,969 380,183 579,062 - - - -
$ - $ - ( 1) ( 882) ( 903,247) - -
55,937 606,662 ( 775,986) 3,491 ( 25,474)
$ 55,936 $ 605,780 $ ( 1,679,233) $ 3,491 $ ( 25,474)
CONTINUED
169

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2023 (with Summarized Totals for Year Ended June 30, 2022)
(CONTINUED)
Total
Other Community Returned 2022
Non-CPA Partnerships Reinvestment 2023 Summarized
State Grants Other Operating Funds Fund Total Total
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 432,980 $ - $ 432,980 $ 340,884
Subtotal CPA - - 432,980 - 432,980 340,884
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - - - - -
Other State Grant Funding 296,170 - 296,170 - 296,170 296,372
Investment Income - - - 604 604 286
Earned Reinvestment Donations - - - - - 2,300
Miscellaneous - 28,896 28,896 1 28,897 14,678
Subtotal Non-CPA 296,170 28,896 325,066 605 325,671 313,636
Total Revenues 296,170 28,896 758,046 605 758,651 654,520
EXPENDITURES
CPA
Program Contracted Services - - - - - -
Other Expenditures
Salaries - - 85,869 - 85,869 81,385
Fringe Benefit Costs - - 9,815 - 9,815 8,618
Auditing - - - - - 1,528
Consultants - - 6,633 - 6,633 15,500
Professional Groups - - - - - 2,382
Equipment Rental - - 747 - 747 -
Other Contracted Services - - 82,247 - 82,247 36,970
Postage - - 2 - 2 12
Office Supplies - - 1,072 - 1,072 2,742
Program Supplies - - 45,983 - 45,983 46,427
Food - - 4,146 - 4,146 1,536
Printing and Publishing - - 280 - 280 -
Data Processing Supplies - - 3,240 - 3,240 -
Repairs and Equipment - - 2,023 - 2,023 1,162
Business Travel - - 4,638 - 4,638 3,393
Subscriptions and Dues - - 2,955 - 2,955 -
Meetings & Conferences - - - - - 199
Training - - 35,675 - 35,675 1,458
Advertising - - 1,349 - 1,349 -
Communications - - 1,845 - 1,845 1,760
Rent - - 8,033 - 8,033 10,800
Equipment under $1000/$500 - - 2,298 - 2,298 1,399
Other Charges - - 135,012 - 135,012 123,613
Subtotal CPA Expenditures - - 433,862 - 433,862 340,884
Non-CPA
Program Contracted Services 296,170 ( 296,170) 416,170 - 416,170 296,372
Other Expenditures
Salaries - - 124,511 - 124,511 124,073
Fringe Benefit Costs - - 55,209 - 55,209 52,628
Consultants - - 4,013 - 4,013 10,000
Equipment Rental - - 2,819 - 2,819 2,917
Other Contracted Services - - 9,188 - 9,188 -
Postage - - 150 - 150 500
Office Supplies - - 2,773 - 2,773 1,777
Program Supplies - - 12,106 - 12,106 21,878
Food - - 2,359 - 2,359 1,408
Equipment Operation - - 280 - 280 -
Business Travel - - - - - 25
Subscriptions and Dues - - 5,000 - 5,000 911
Meetings & Conferences - - 2,000 - 2,000 2,000
Training - - 2,624 - 2,624 2,498
Board's Expenditures - - 4,661 - 4,661 4,952
Advertising - - - - - 300
Marketing/Promotions - - 2,973 - 2,973 1,870
Communications - - 1,326 - 1,326 1,403
Rent - - - - - -
Other Charges - - 255,085 - 255,085 242,362
Office equipment - - - - - 2,500
Subtotal Non-CPA Expenditures 296,170 ( 296,170) 903,247 - 903,247 770,374
Total Expenditures 296,170 ( 296,170) 1,337,109 - 1,337,109 1,111,258
Excess of Revenues Over (Under) Expenditure - 325,066 ( 579,063) 605 ( 578,458) ( 456,738)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services - 579,062 579,062 - 579,062 457,024
Other Financing Sources - 579,062 579,062 - 579,062 457,024
Net Increase in Fund Balances - 904,128 ( 1) 605 604 286
Fund Balances, July 1 - 247,243 55,937 9,677 65,614 65,328
Fund Balances, June 30 $ - $ 1,151,371 $ 55,936 $ 10,282 $ 66,218 $ 65,614
170

171

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
FOR THE YEAR ENDED JUNE 30, 2023
COMMUNITY PARTNERSHIPS FOR CHILDREN RETURNED REINVESTMENT FUND
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
REVENUES
Intergovernmental
GOC - CPA and Non-CPA $ 345,346 $ 438,144 $ 432,980 $ (5,164) $ - $ - $ - $ -
Other 296,372 296,372 296,170 (202) - - - -
Investment Income - - - - - - 6 04 6 04
Donations - - - - - - - -
Miscellaneous 11,000 11,000 28,896 17,896 - - 1 1
Total Revenues 652,718 745,516 758,046 12,530 - - 6 05 6 05
EXPENDITURES
Program Contracted Services 296,372 459,247 416,170 43,077 - - - -
Other Expenditures
Salaries 204,842 211,969 210,380 1 ,589 - - - -
Fringe Benefit Costs 62,864 63,928 65,024 (1,096) - - - -
Auditing - 8 17 - 8 17 - - - -
Consultants 27,571 12,225 10,646 1 ,579 - - - -
Professional Groups - - - - - - - -
Equipment Rental 3,252 3 ,252 3 ,566 (314) - - - -
Other Contracted Services 37,030 37,030 91,435 (54,405) - - - -
Postage 5 10 5 10 1 52 3 58 - - - -
Office Supplies 4,364 3 ,510 3 ,845 (335) - - - -
Program Supplies 33,809 56,127 58,089 (1,962) - - - -
Food 2 ,100 5 ,845 6 ,505 (660) - - - -
Printing and Publishing 2,100 2 65 2 80 (15) - - - -
Data Processing Supplies 2,856 3 ,240 3 ,240 - - - - -
Repairs and Equipment 1,320 1 ,320 2 ,023 (703) - - - -
Equipment Operation - - 2 80 (280) - - - -
Business Travel 4,644 4 ,314 4 ,638 (324) - - - -
Subscriptions and Dues 1,013 7 ,700 7 ,955 (255) - - - -
Meetings & Conferences 5,701 2 ,000 2 ,000 - - - - -
Training 5,396 38,225 38,299 (74) - - - -
Board's Expenditures 7,038 6 ,770 4 ,661 2 ,109 - - - -
Advertising - 8 00 1 ,349 (549) - - - -
Marketing/Promotions 2,895 2 ,895 2 ,973 (78) - - - -
Communications 4,202 3 ,834 3 ,171 6 63 - - - -
Rent 10,800 9 ,200 8 ,033 1 ,167 - - - -
Equipment - 3 ,584 2 ,298 1 ,286 - - - -
Other Charges 398,156 392,225 390,097 2 ,128 - - - -
Office equipment - - - - - - - -
Total Expenditures 1,118,835 1,330,832 1,337,109 (6,277) - - - -
Excess of Revenues Over (Under)
Expenditures ( 466,117) ( 585,316) ( 579,063) 6 ,253 - - 6 05 6 05
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 466,117 585,316 579,062 (6,254) - - - -
Other Financing Sources 466,117 585,316 579,062 (6,254) - - - -
Net Increase in Fund Balances $ - $ - (1) $ (1) $ - $ - 6 05 $ 6 05
Fund Balances, July 1 55,937 9 ,677
Fund Balances, June 30 $ 55,936 $ 10,282
172

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
FOR THE YEAR ENDED JUNE 30, 2023
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 345,346 $ 438,144 $ 432,980 $ (5,164)
296,372 296,372 296,170 (202)
- - 6 04 6 04
- - - -
11,000 11,000 28,897 17,897
652,718 745,516 758,651 13,135
296,372 459,247 416,170 43,077
204,842 211,969 210,380 1 ,589
62,864 63,928 65,024 (1,096)
- 8 17 - 8 17
27,571 12,225 10,646 1 ,579
- - - -
3 ,252 3 ,252 3 ,566 (314)
37,030 37,030 91,435 (54,405)
5 10 5 10 1 52 3 58
4 ,364 3 ,510 3 ,845 (335)
33,809 56,127 58,089 (1,962)
2 ,100 5 ,845 6 ,505 (660)
2 ,100 2 65 2 80 (15)
2 ,856 3 ,240 3 ,240 -
1 ,320 1 ,320 2 ,023 (703)
- - 2 80 (280)
4 ,644 4 ,314 4 ,638 (324)
1,013 7 ,700 7 ,955 (255)
5 ,701 2 ,000 2 ,000 -
5 ,396 38,225 38,299 (74)
7 ,038 6 ,770 4 ,661 2 ,109
- 8 00 1 ,349 (549)
2 ,895 2 ,895 2 ,973 (78)
4 ,202 3 ,834 3 ,171 6 63
10,800 9 ,200 8 ,033 1 ,167
- 3,584 2 ,298 1 ,286
398,156 392,225 390,097 2 ,128
- - - -
1,118,835 1,330,832 1,337,109 (6,277)
( 466,117) ( 585,316) ( 578,458) 6 ,858
466,117 585,316 579,062 (6,254)
466,117 585,316 579,062 (6,254)
$ - $ - 6 04 $ 6 04
65,614
$ 66,218
173

S S
TATISTICAL ECTION
174

STATISTICAL SECTION
The Statistical Section, which fully incorporates information mandated by Governmental Accounting
Standards Board (GASB) Statement No. 44, Economic Condition Reporting: The Statistical Section,
presents detailed information for the primary government in the following areas, as a context for
understanding what the information in the Financial Section says about the County’s overall financial
health:
FINANCIAL TRENDS–Information to help the reader understand how the County’s financial
performance and well-being have changed over time.
REVENUE CAPACITY–Information to help the reader assess the County’s most significant
local revenue sources –the property tax and income tax.
DEBT CAPACITY–Informationto help the reader assess the affordability of the County’s
current levels of outstanding debt and the County’s ability to issue additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION–Indicators to help the reader
understand the environment within which the County’s financial activities take place.
OPERATING INFORMATION–Service and infrastructure data to help the reader understand
how the information in the County’s financial report relates to the services the County provides
and the activities it performs.
Many of these tables cover more than two fiscal years and present data from outside the accounting
records. Therefore, the Statistical Section is unaudited.
175

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
2014 2015 2016 2017 2018
Governmental Activities:
Net Investment in Capital Assets $ 127,369,959 $ 125,434,538 $ 123,466,319 $ 120,249,244 $ 114,794,226
Restricted 17,616,132 20,464,486 21,063,295 13,094,534 13,275,244
Unrestricted (deficit) (1) (71,169,310) (73,475,567) (78,567,505) (67,189,342) (58,025,753)
Total Governmental Activities Net Position (2) 73,816,781 (3) 7 2,423,457 65,962,109 (4) 66,154,436 (5) 70,043,717
Business-type Activities:
Net Investment in Capital Assets 79,783,160 80,787,152 80,909,015 86,163,078 84,386,291
Restricted 3,110,033 3,061,534 1,699,914 1,700,836 1,060,134
Unrestricted 8,721,212 8,486,063 10,240,161 4,116,300 7,458,996
Total Business-type Activities Net Position 91,614,405 (3) 9 2,334,749 92,849,090 (4) 91,980,214 (5) 92,905,421
Primary Government:
Net Investment in Capital Assets 207,153,119 206,221,690 204,375,334 206,412,322 199,180,517
Restricted 20,726,165 23,526,020 22,763,209 14,795,370 14,335,378
Unrestricted (deficit) (1) (62,448,098) (64,989,504) (68,327,344) (63,073,042) (50,566,757)
Total Primary Government Net Position (2) $ 165,431,186 (3) $ 1 64,758,206 $ 158,811,199 (4) $ 158,134,650 (5) $ 162,949,138
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Accounting standards require that net position be reported in three components in the financial
statements: net investment in capital assets, restricted; and unrestricted. Net
position is considered restricted when (1) an external party, such as the state or federal
government, places a restriction on how the resources may be used, or (2) enabling
legislation is enacted by the County.
* Source: Statement of Net Position
(1) In the government-wide financial statements, the County has reported negative unrestricted amounts for some years.
This is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne's County Board of Education. Absent the effect of this relationship, the County would
have reported the following:
Government-wide unrestricted (deficit) net position would have been:
Unrestricted (deficit) net position reported above $ (62,448,098) $ (64,989,504) $ (68,327,344) $ (63,073,042) $ (50,566,757)
Debt issued for capital on behalf of others 67,651,486 66,219,608 63,271,304 59,207,136 58,625,356
County (deficit) net position absent the effect of this relationship $ 5,203,388 $ 1,230,104 $ (5,056,040) $ (3,865,906) $ 8,058,599
(2) FY2013 Net Position of Governmental Activities was restated in fiscal year 2014.
(3) FY2014 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2015.
(4) FY2017 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2018.
(5) FY2018 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2019.
(6) FY2022 Net Position of Business-Type Activities was restated in fiscal year 2023.
176

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
(CONTINUED)
2019 2020 2021 2022 2023
$ 115,143,089 $ 114,252,313 $ 116,220,059 $ 118,666,142 $ 122,128,900
18,962,289 19,844,181 20,883,128 24,012,709 26,495,555
(61,637,321) (48,809,467) (20,071,163) 11,879,310 36,459,068
72,468,057 85,287,027 117,032,024 154,558,161 185,083,523
85,916,730 86,939,502 88,635,207 93,562,741 99,118,189
2,234,440 2,037,318 6,322,353 5,310,698 5,350,538
10,087,649 16,587,060 19,018,596 28,956,179 30,307,701
98,238,819 105,563,880 113,976,156 (6) 127,829,618 134,776,428
201,059,819 201,191,815 204,855,266 212,228,883 221,247,089
21,196,729 21,881,499 27,205,481 29,323,407 31,846,093
(51,549,672) (32,222,407) (1,052,567) 40,835,489 66,766,769
$ 170,706,876 $ 190,850,907 $ 231,008,180 (6) $ 282,387,779 $ 319,859,951
$ (51,549,672) $ (32,222,407) $ (1,052,567) $ 40,835,489 $ 66,766,769
58,007,072 55,846,036 56,855,185 53,155,458 48,229,215
$ 6,457,400 $ 23,623,629 $ 55,802,618 $ 93,990,947 $ 114,995,984
177

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
2014 2015 2016 2017 2018
Expenses
Governmental Activities:
General Government $ 14,133,149 $ 10,849,277 $ 13,936,312 $ 13,177,254 $ 17,511,975
Public Safety 26,666,211 25,297,450 27,525,712 27,997,262 28,373,219
Public Works 12,365,647 14,363,603 19,522,534 20,753,117 18,101,635
Parks & Recreation (3) - - - - -
Health & Social Services 7 ,123,340 6,631,598 7,333,528 7,424,371 7,149,348
Education & Library 56,218,528 67,091,679 62,374,873 60,922,185 64,082,500
Conservation of Natural Resources 2 ,395,762 587,147 1,799,234 616,237 2,567,600
Economic/Community Development 1 ,528,035 1,763,024 3,391,547 1,860,222 2,477,129
Interest and Fiscal Charges 3 ,987,943 4,039,622 4,345,527 4,150,101 4,294,929
Total Governmental Activities Expenses 124,418,615 130,623,400 140,229,267 136,900,749 144,558,335
Business-type Activities:
Water and Sewer 11,059,306 10,412,432 10,615,466 11,818,087 12,880,483
Golf Course (4) 5 15,325 496,065 505,085 540,504 509,150
Public Landings and Marinas (5) 5 44,945 537,823 529,943 572,360 559,597
Airport 8 07,226 1,014,491 966,896 1,053,899 1,100,136
Total Business-type Activities Expenses 12,926,802 12,460,811 12,617,390 13,984,850 15,049,366
Total Primary Government Expenses 137,345,417 143,084,211 152,846,657 150,885,599 159,607,701
Program Revenues
Governmental Activities:
General Government
Charges for Services 1 ,500,273 1,505,857 1,565,170 1,552,164 1,669,311
Operating Grants and Contributions 6 06,649 644,297 582,571 563,016 660,790
Capital Grants and Contributions 5 89,988 9 6,684 (30,000) - 1,080,084
Total Revenue 2 ,696,910 2,246,838 2,117,741 2,115,180 3,410,185
Public Safety
Charges for Services 1 ,286,945 1,244,752 1,354,350 1,350,626 1,505,267
Operating Grants and Contributions 1 ,081,577 1,052,666 1,088,597 1,037,879 1,294,733
Capital Grants and Contributions 2 82,139 119,118 175,653 5 ,406 166,001
Total Revenue 2 ,650,661 2,416,536 2,618,600 2,393,911 2,966,001
Public Works
Charges for Services 1 ,425,012 1,275,538 1,337,358 1,472,664 1,779,206
Operating Grants and Contributions 7 12,550 527,538 1,029,019 980,075 822,659
Capital Grants and Contributions 2 ,221,299 8 0,000 108,880 161,084 282,028
Total Revenue 4 ,358,861 1,883,076 2,475,257 2,613,823 2,883,893
Parks & Recreation (3)
Charges for Services - - - - -
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue - - - - -
Health & Social Services
Charges for Services 65,537 6 8,187 7 6,404 7 3,066 7 1,131
Operating Grants and Contributions 2 ,026,675 2,056,111 1,834,000 1,893,648 2,018,289
Capital Grants and Contributions 67,392 4 0,527 140,400 5 8,500 5 8,500
Total Revenue 2 ,159,604 2,164,825 2,050,804 2,025,214 2,147,920
Education & Library
Charges for Services 1 ,721,379 1,249,332 1,230,994 1,319,433 1,272,301
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue 1 ,721,379 1,249,332 1,230,994 1,319,433 1,272,301
Conservation of Natural Resources
Charges for Services 73,279 7 2,688 7 0,708 6 0,826 110,655
Operating Grants and Contributions 1 03,892 9 6,195 6 8,152 186,333 131,321
Capital Grants and Contributions 75,820 3 ,637 573,003 - 1,439,284
Total Revenue 2 52,991 172,520 711,863 247,159 1,681,260
Economic/Community Development
Charges for Services 5 08,000 8 0,558 311,000 620,000 316,500
Operating Grants and Contributions 2 55,100 285,344 156,804 231,360 810,319
Capital Grants and Contributions (69,569) - - - -
Total Revenue 6 93,531 365,902 467,804 851,360 1,126,819
Interest and Fiscal Charges
Charges for Services - - - - -
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue - - - - -
Total Governmental Activities Program Revenues 14,533,937 10,499,029 11,673,063 11,566,080 15,488,379
178

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2019 2020 2021 2022 2023
$ 16,493,064 $ 17,299,695 $ 21,447,303 $ 20,975,854 $ 21,070,854
35,668,385 31,445,313 33,376,832 32,937,936 42,482,230
19,118,090 15,045,105 13,898,271 15,486,633 19,422,823
- 7,780,241 6,051,585 6,445,776 6,338,014
7,669,431 7,116,694 6,969,134 6,631,472 7,219,183
64,438,616 68,764,861 68,632,733 68,957,650 69,770,287
2,696,971 1,423,080 3,621,749 2,402,429 3,386,538
1,808,000 2,281,480 5,262,207 3,012,720 2,798,777
4,712,864 4,391,332 4,330,706 4,415,584 4,525,460
152,605,421 155,547,801 163,590,520 161,266,054 177,014,166
11,232,955 11,602,537 12,157,175 12,384,820 13,822,527
584,718 541,335 523,435 609,737 697,824
1,342,308 683,738 1,104,170 548,928 684,685
1,434,031 968,205 940,188 1,017,606 1,058,318
14,594,012 13,795,815 14,724,968 14,561,091 16,263,354
167,199,433 169,343,616 178,315,488 175,827,145 193,277,520
1,769,520 1,509,985 2,027,823 2,400,962 2,037,088
716,683 428,812 2,686,609 2,920,183 249,863
480,500 520,277 1,056,963 1,219,155 1,549,325
2,966,703 2,459,074 5,771,395 6,540,300 3,836,276
1,415,187 1,379,621 1,772,824 2,782,299 1,908,036
1,161,505 1,697,018 3,603,339 2,300,947 3,601,321
176,970 112,845 1,379,718 908,036 164,422
2,753,662 3,189,484 6,755,881 5,991,282 5,673,779
1,784,040 817,088 1,083,030 1,134,409 961,563
1,155,251 1,233,626 1,494,842 8 ,500 9 ,070
1,353,948 4 5,640 - - 1,119,611
4,293,239 2,096,354 2,577,872 1,142,909 2,090,244
- 822,605 1,058,579 1,149,578 1,101,729
- 3 7,060 216,861 3 2,494 2 5,681
- 2,237,549 343,301 1,964,345 640,892
- 3,097,214 1,618,741 3,146,417 1,768,302
9 1,183 7 2,840 3 7,025 9 1,756 7 7,736
2,120,065 2,273,959 2,381,707 2,595,327 3,060,269
175,960 362,900 157,905 207,862 195,509
2,387,208 2,709,699 2,576,637 2,894,945 3,333,514
1,318,609 1,593,200 3,383,580 2,438,720 2,237,364
- - - - -
4 3,059 105,575 973,747 1,850,863 979,756
1,361,668 1,698,775 4,357,327 4,289,583 3,217,120
126,940 136,458 163,971 4 6,491 7 6,138
9 4,814 117,820 111,443 - -
2,118,200 831,901 1,612,662 1,095,760 2,007,786
2,339,954 1,086,179 1,888,076 1,142,251 2,083,924
- 205,000 864,667 397,823 620,000
205,300 757,258 3,978,848 1,523,758 1,286,414
- - - - -
205,300 962,258 4,843,515 1,921,581 1,906,414
- - - 4 8,506 4 6,124
- - - - -
- - - - -
- - - 4 8,506 4 6,124
16,307,734 17,299,037 30,389,444 27,117,774 23,955,697
179

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2014 2015 2016 2017 2018
Business-type Activities:
Water and Sewer
Charges for Services $ 8,341,848 $ 8,840,213 $ 8,956,360 $ 8,222,317 $ 9,214,383
Operating Grants and Contributions 90,000 9 0,000 8 5,099 9 0,000 9 0,000
Capital Grants and Contributions 6 65,268 1,862,257 1,958,051 2,222,796 4,198,378
Total Revenue 9 ,097,116 10,792,470 10,999,510 10,535,113 13,502,761
Golf Course
Charges for Services 2 97,293 295,955 305,528 318,599 340,123
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue 2 97,293 295,955 305,528 318,599 340,123
Public Landings and Marinas
Charges for Services 4 23,478 423,723 423,427 443,176 451,524
Operating Grants and Contributions 36,439 4 3,304 3 6,781 3 3,542 104,829
Capital Grants and Contributions - - - - -
Total Revenue 4 59,917 467,027 460,208 476,718 556,353
Airport
Charges for Services 49,061 5 3,200 4 5,916 3 3,256 2 5,857
Operating Grants and Contributions 2,420 7 3,311 5 2,837 245,738 6 0,858
Capital Grants and Contributions 7,457 - - - -
Total Revenue 58,938 126,511 9 8,753 278,994 8 6,715
Total Business-type Activities Program Revenues 9 ,913,264 11,681,963 11,863,999 11,609,424 14,485,952
Total Primary Government Program Revenues 24,447,201 22,180,992 23,537,062 23,175,504 29,974,331
Net (Expense) Revenue (1)
Governmental activities (109,884,678) (120,124,371) (128,556,204) (125,334,669) (129,069,956)
Business-type activities (3,013,538) (778,848) (753,391) (2,375,426) (563,414)
Total Primary Government Net Expense $ (112,898,216) $ ( 120,903,219) $ ( 129,309,595) $ ( 127,710,095) $ ( 129,633,370)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes (2) $ 112,123,625 $ 116,821,607 $ 121,011,135 $ 123,299,031 $ 131,444,679
Investment income 95,286 9 4,092 174,691 444,063 978,955
Gain/(Loss) on Sale of Capital Assets 3 46,765 1,098,632 161,106 5 3,936 8 7,734
Miscellaneous 8 77,629 1,076,893 949,046 2,065,465 630,895
Transfers In (Out) (589,737) (360,177) (201,122) (335,499) (183,026)
Total Governmental Activities 112,853,568 118,731,047 122,094,856 125,526,996 132,959,237
Business-type Activities:
Investment income 3 43,568 323,585 320,443 361,840 439,716
Gain on Sale of Capital Assets - - - - -
Miscellaneous 7 93,951 815,430 746,167 809,211 865,879
Transfers In (Out) 5 89,737 360,177 201,122 335,499 183,026
Total Business-type Activities 1 ,727,256 1,499,192 1,267,732 1,506,550 1,488,621
Total Primary Government 114,580,824 120,230,239 123,362,588 127,033,546 134,447,858
Change in Net Position
Governmental activities 2 ,968,890 (1,393,324) (6,461,348) 192,327 3,889,281
Business-type activities (1,286,282) 720,344 514,341 (868,876) 925,207
Total Primary Government $ 1,682,608 $ (672,980) $ (5,947,007) $ (676,549) $ 4,814,488
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
(1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates
the degree to which a function or program is supported with its own fees and program-specific grants versus its reliance
upon funding from taxes and general revenues. Numbers in parentheses indicate that expenses were greater than program
revenues and therefore general revenues were needed to finance that function or program. Numbers without parentheses
mean that program revenues were more than sufficient to cover expenses.
(2) See Table 2-b for detail of General Tax Revenues.
(3) For years FY12 through FY19, Parks & Recreation governmental activities are included in public works (parks) and social services (recreation).
180

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2019 2020 2021 2022 2023
$ 10,524,474 $ 13,873,082 $ 12,174,150 $ 18,143,049 $ 12,330,275
520,000 2,541,550 4,600,000 865,761 1,467,662
3,626,906 1,974,341 2,668,488 3,034,541 4,027,234
14,671,380 18,388,973 19,442,638 22,043,351 17,825,171
373,014 399,603 593,022 594,180 617,340
- - - - -
- - - - -
373,014 399,603 593,022 594,180 617,340
454,071 538,760 540,240 475,309 465,730
888,592 1 0,447 178,208 640,752 745,966
- - - - -
1,342,663 549,207 718,448 1,116,061 1,211,696
2 4,710 2 4,130 2 4,920 2 3,774 2 2,655
725,109 9 5,052 2 0,180 516,774 741,939
- - - - -
749,819 119,182 4 5,100 540,548 764,594
17,136,876 19,456,965 20,799,208 24,294,140 20,418,801
33,444,610 36,756,002 51,188,652 51,411,914 44,374,498
(136,297,687) (138,246,764) (133,201,076) (134,148,280) (153,058,469)
2,542,864 5,661,150 6,074,240 9,733,049 4,155,447
$ ( 133,754,823) $ ( 132,585,614) $ ( 127,126,836) $ ( 124,415,231) $ ( 148,903,022)
$ 137,285,550 $ 148,876,477 $ 163,687,534 $ 171,755,675 $ 176,022,971
1,772,464 1,393,017 239,908 462,588 6,448,944
2 5,823 4 4,343 9 5,687 (1,157,005) -
979,201 900,976 1,073,180 1,801,868 1,628,246
(1,341,011) (149,079) (150,236) (1,188,709) (516,330)
138,722,027 151,065,734 164,946,073 171,674,417 183,583,831
550,691 589,126 424,983 414,822 1,047,564
3 3,100 1 7,876 573,500 5 ,265 2 ,561
865,732 907,830 1,189,317 2,511,617 1,224,908
1,341,011 149,079 150,236 1,188,709 516,330
2,790,534 1,663,911 2,338,036 4,120,413 2,791,363
141,512,561 152,729,645 167,284,109 175,794,830 186,375,194
2,424,340 12,818,970 31,744,997 37,526,137 30,525,362
5,333,398 7,325,061 8,412,276 13,853,462 6,946,810
$ 7,757,738 $ 20,144,031 $ 40,157,273 $ 51,379,599 $ 37,472,172
181

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2014 2015 2016 2017 2018
Local Property Taxes $ 6 4,712,683 $ 6 4,672,721 $ 65,185,546 $ 66,487,004 $ 67,736,404
Local Income Tax 4 0,899,804 4 4,643,870 47,928,725 48,624,679 55,211,695
Other Local Taxes 6 ,511,138 7 ,505,016 7,896,864 8,187,348 8,496,580
Total Taxes - Governmental Activities $ 1 12,123,625 $ 1 16,821,607 $ 121,011,135 $ 123,299,031 $ 131,444,679
2019 2020 2021 2022 2023
Local Property Taxes $ 7 0,670,569 $ 7 1,874,566 $ 74,474,109 $ 76,017,204 $ 78,022,772
Local Income Tax 5 7,728,293 6 7,698,447 73,458,519 78,881,170 83,439,604
Other Local Taxes 8 ,886,688 9 ,303,464 15,754,906 15,164,554 13,208,003
Total Taxes - Governmental Activities $ 1 37,285,550 $ 1 48,876,477 $ 163,687,534 $ 170,062,928 $ 174,670,379
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
182

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2014 2015 2016 2017 2018
General Fund:
Nonspendable $ 480,385 $ 687,777 $ 586,481 $ 754,921 $ 1 ,001,610
Restricted 8,375,368 8,681,112 9,002,389 10,626,394 1 0,999,800
Committed 1,157,360 2,000,000 3,000,000 4,000,000 5 ,027,897
Assigned 1,284,875 2,034,875 1,926,782 1,998,415 1 ,483,827
Unassigned 7,123,519 7,793,085 8,468,591 8,830,530 1 1,142,331
Total General Fund 18,421,507 21,196,849 22,984,243 26,210,260 2 9,655,465
All Other Governmental Funds:
Nonspendable 5,470,608 5,919,048 6,146,072 7,552,462 7 ,583,553
Restricted 21,824,970 17,794,372 21,316,088 8,900,465 6 ,815,341
Committed 4,097,033 4,209,177 3,425,701 13,447,283 1 5,202,215
Assigned 25,939,319 23,093,224 18,029,073 16,045,167 1 9,618,643
Unassigned (115,800) (108,185) (115,129) (53,665) (48,758)
Total All Other Governmental Funds 57,216,130 50,907,636 48,801,805 45,891,712 4 9,170,994
Total All Governmental Funds $ 75,637,637 $ 72,104,485 $ 71,786,048 $ 72,101,972 $ 7 8,826,459
2019 2020 2021 2022 2023
General Fund:
Nonspendable $ 1,616,447 $ 2,400,664 $ 5,751,694 $ 92,744 $ 2 42,876
Restricted 14,361,899 14,711,547 16,182,014 17,838,136 1 9,996,347
Committed 6,000,000 6,998,256 7,621,618 8,399,587 9 ,069,982
Assigned 1,224,503 1,099,170 1,525,829 1,500,000 -
Unassigned 11,856,474 15,874,992 19,340,107 32,142,920 3 9,494,554
Total General Fund 35,059,323 41,084,629 50,421,262 59,973,387 6 8,803,759
All Other Governmental Funds:
Nonspendable - - - 1,327,375 1 ,274,659
Restricted 12,598,139 15,121,784 17,919,423 22,270,920 1 7,607,427
Committed 18,514,079 21,296,829 25,457,920 27,010,544 2 8,987,607
Assigned 23,573,581 23,721,935 36,026,980 44,073,399 4 9,351,449
Unassigned (28,164) (24,133) (19,649) - -
Total All Other Governmental Funds 54,657,635 60,116,415 79,384,674 94,682,238 9 7,221,142
Total All Governmental Funds $ 89,716,958 $ 101,201,044 $ 129,805,936 $ 154,655,625 $ 1 66,024,901
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, Governmental Funds.
183

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2014 2015 2016 2017 2018
Revenues
Taxes
Local Property Taxes $ 64,701,622 $ 64,672,292 $ 64,946,443 $ 66,501,901 $ 67,944,730
Local Income Taxes 40,326,921 42,889,715 4 6,424,552 48,578,044 5 1,834,189
Other Local Taxes 6,511,137 7 ,505,016 7 ,896,865 8 ,187,348 8 ,496,580
State Shared Taxes 749,366 5 57,834 6 23,256 7 08,566 8 36,677
Licenses and Permits 1,080,891 1 ,062,917 1 ,078,144 1 ,123,072 1 ,167,444
Intergovernmental 5,588,984 4 ,030,576 4 ,696,561 3 ,987,308 7 ,539,052
Bond Interest Reimbursement - Build America Bond 383,777 3 75,323 3 64,799 3 50,254 3 34,858
Charges for Current Services 5,357,919 4 ,251,835 4 ,617,730 5 ,114,605 5 ,298,701
Fines and Forfeitures 141,615 1 82,160 2 50,110 2 11,102 2 58,226
Capital Contributions - Developer 102,316 - - - -
Investment Income 95,286 94,092 1 74,691 4 44,063 9 78,955
Donations 39,055 41,391 45,773 60,217 57,635
Miscellaneous 877,629 1 ,076,893 9 49,045 2 ,065,465 6 30,895
Total Revenues 125,956,518 126,740,044 132,067,969 137,331,945 145,377,942
Expenditures
Current
General Government (1) 10,649,489 8 ,833,255 9 ,817,062 1 0,382,078 1 0,640,065
Public Safety 22,266,458 23,133,608 2 3,523,103 23,866,030 2 5,049,431
Public Works 9,967,363 1 2,041,969 1 5,080,454 1 5,506,684 1 5,235,104
Parks and Recreation - - - - -
Health & Social Services 5,505,626 5 ,425,002 5 ,827,938 5 ,981,620 6 ,100,594
Education & Library 61,063,194 6 7,116,408 6 2,405,143 60,950,845 6 4,117,236
Conservation of Natural Resources 2,363,254 5 65,289 1 ,744,260 5 65,938 2 ,577,735
Economic/Community Development 1,306,516 1 ,616,784 3 ,188,928 1 ,710,899 2 ,433,171
Miscellaneous 3,202,417 3 ,535,585 4 ,766,722 4 ,185,652 5 ,348,568
Capital Outlay 8,669,375 8 ,733,509 1 1,050,384 1 4,591,632 1 2,311,551
Debt Service
Principal 7,210,561 7 ,444,611 7 ,667,316 8 ,074,013 7 ,149,537
Debt Issuance Costs 196,870 4 03,572 2 18,799 1 96,150 2 29,894
Interest and Fiscal Charges 3,501,230 3 ,846,823 3 ,696,719 4 ,104,254 4 ,280,553
Total Expenditures 135,902,353 142,696,415 148,986,828 150,115,795 155,473,439
Excess (Deficiency) of Revenues over (under) Expenditures (9,945,835) (15,956,371) (16,918,859) (12,783,850) (10,095,497)
Other Financing Sources (Uses)
Issuance of Debt 22,405,542 2 5,384,493 1 5,484,639 1 2,775,926 1 6,000,000
Other Financing Use - Proceeds of Refunding Bonds - - 8 ,042,773 - -
Bond Premiums 1,118,097 1 ,901,240 1 ,650,448 6 18,681 9 08,973
Payments to Bond Refunding Agent - (14,881,834) - - -
Other Financing Use - Debt Service - Principal - - (8,446,336) - -
Proceeds of Capital Asset Disposals 458,759 1 ,331,608 18,100 55,189 54,097
Insurance Proceeds 61,942 57,916 1 53,534 12,241 39,940
Leases - - - - -
Subscription-Based IT Arrangements - - - - -
Transfers In 5,861,261 5 ,079,641 9 ,941,051 6 ,331,482 8 ,220,201
Transfers Out (6,450,998) (6,449,845) (10,243,787) (6,693,745) (8,403,227)
Total Other Financing Sources (Uses) 23,454,603 1 2,423,219 1 6,600,422 1 3,099,774 1 6,819,984
Net Increase (Decrease) in Fund Balances $ 13,508,768 $ (3,533,152) $ (318,437) $ 3 15,924 $ 6 ,724,487
Debt service as a percentage of non-capital expenditures (2, 3) 8.44% 8.43% 8.16% 8.99% 8.00%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.
(1) For all fiscal years, "General Government" includes amounts previously classified as "Intergovernmental" and/or "Contingency."
(2) Only the principal and interest components of debt service expenditures are included in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
(3) Noncapital expenditures represents Total Expenditures above, less the Net Increase in Capital Assets from the Reconciliation between the Government-Wide Statement of Activities
and the Statement of Revenues, Expenditures, and Changes in Fund Balance. Only the assets acquired (not included assets transferred or donated) from the reconciliation are used in the calculation.
184

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2019 2020 2021 2022 2023
$ 70,615,293 $ 71,682,389 $ 74,769,217 $ 75,943,263 $ 78,062,336
5 5,282,162 61,547,651 6 7,985,531 71,002,615 7 9,467,361
8 ,886,688 9 ,303,464 1 5,754,906 15,164,554 1 3,208,003
1 ,171,668 1 ,192,293 1 ,286,374 1 ,692,747 1 ,352,592
1 ,224,381 1 ,083,317 1 ,461,286 1 ,656,112 1 ,417,096
8 ,284,699 9 ,506,419 1 8,705,791 16,927,224 1 4,889,923
3 19,362 - - - -
5 ,088,123 5 ,320,465 8 ,789,033 8 ,258,386 7 ,454,195
1 92,975 1 33,015 1 41,180 2 55,955 1 74,002
- - - - -
1 ,772,464 1 ,393,017 2 39,908 4 62,588 6 ,448,944
31,084 1 43,375 5,780 65,052 20,481
9 79,201 9 00,976 1 ,073,180 1 ,801,868 1 ,628,246
153,848,100 162,206,381 190,212,186 193,230,364 204,123,179
1 0,542,151 1 0,610,554 1 3,487,519 1 3,368,832 1 5,890,722
2 4,411,320 2 7,648,023 2 9,314,405 3 2,933,956 3 8,135,440
1 6,163,026 1 2,749,864 1 2,223,767 1 4,291,677 1 9,545,607
- 6 ,995,840 5 ,257,527 5 ,578,791 6 ,049,686
6 ,209,377 6 ,660,677 6 ,731,938 6 ,389,428 7 ,909,483
6 4,473,922 6 8,796,024 6 8,621,741 6 8,947,327 6 9,757,478
2 ,717,738 1 ,475,572 3 ,672,847 2 ,411,769 3 ,457,656
1 ,638,265 2 ,107,676 5 ,233,618 2 ,997,250 3 ,017,040
5 ,729,955 5 ,308,680 6 ,834,217 6 ,981,356 8 ,921,419
9 ,323,882 4 ,963,004 1 2,790,600 9 ,877,764 8 ,603,952
7 ,855,820 8 ,624,604 7 ,343,425 7 ,775,190 8 ,696,773
2 11,447 3 16,027 2 49,479 4 39,157 29,851
4 ,586,387 4 ,676,955 4 ,492,461 4 ,415,584 4 ,525,460
153,863,290 160,933,500 176,253,544 176,408,081 194,540,567
(15,190) 1 ,272,881 1 3,958,642 1 6,822,283 9 ,582,612
1 1,000,000 9 ,000,000 1 3,000,000 7 ,800,000 -
- 1 4,682,184 1 0,835,995 - -
1 ,011,998 3 ,654,843 3 ,814,696 4 92,106 -
- - - - -
- (17,043,453) (12,970,537) - -
2 31,588 30,949 41,099 63,850 61,520
3,114 35,761 1 02,429 35,208 1 03,030
- - - - 6 38,500
- - - - 1 ,503,069
1 2,588,897 9 ,690,474 2 0,469,607 2 3,952,703 2 7,982,455
(13,929,908) (9,839,553) (20,647,039) (24,316,461) (28,501,910)
1 0,905,689 1 0,211,205 1 4,646,250 8 ,027,406 1 ,786,664
$ 10,890,499 $ 11,484,086 $ 28,604,892 $ 24,849,689 $ 11,369,276
8.61% 8.53% 7.26% 7.38% 7.26%
185

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
ASSESSED VALUE OF TAXABLE AND EXEMPT PROPERTY
LAST TEN FISCAL YEARS
Table 5
Real Property (2) Personal Property Total Total
Total Public Utility Taxable Taxable and
Fiscal Commercial Residential (1) Total Direct Assessed Assessed Exempt Exempt
Year Assessed Value Assessed Value Assessed Value Tax Rate (3) Value (2) (4) Value Property Property
2014 $ 1,540,562,905 $ 5,935,284,963 $ 7 ,475,847,868 $ 0.8471 $ 64,411,900 $ 7,540,259,768 $ 696,880,673 $ 8 ,237,140,441
2015 1,526,533,795 5,971,094,589 7 ,497,628,384 0.8471 71,076,850 7,568,705,234 708,231,797 8 ,276,937,031
2016 1,536,236,637 6,015,729,665 7 ,551,966,302 0.8471 74,544,230 7,626,510,532 713,843,531 8 ,340,354,063
2017 1,578,390,091 6,136,189,107 7 ,714,579,198 0.8471 77,685,020 7,792,264,218 771,576,578 8 ,563,840,796
2018 1,619,626,376 6,277,865,272 7 ,897,491,648 0.8471 76,903,490 7,974,395,138 784,345,727 8 ,758,740,865
2019 1,668,339,027 6,485,471,694 8 ,153,810,721 0.8471 110,703,740 8,264,514,461 810,049,666 9 ,074,564,127
2020 1,796,512,410 6,587,063,708 8 ,383,576,118 0.8471 103,282,520 8,486,858,638 839,013,301 9 ,325,871,939
2021 1,810,616,428 6,789,270,644 8 ,599,887,072 0.8471 115,005,450 8,714,892,522 860,398,332 9 ,575,290,854
2022 1,814,529,551 6,984,923,499 8 ,799,453,050 0.8471 122,167,420 8,921,620,470 879,391,068 9 ,801,011,538
2023 1,869,310,608 7,334,750,709 9 ,204,061,317 0.8300 131,489,970 9,335,551,287 887,420,959 1 0,222,972,246
NOTES:
* Tax exempt property is included for purposes of calculating total assessed value, which is used on Table 12-a.
(1) Residential real property includes single-family homes, townhouses, condominiums, and apartment dwellings. The assessed value shown
above has been reduced for the Homestead Credit assessment.
(2) Real property and personal property assessments are done every three years and every year, respectively, by the State
Department of Assessments and Taxation at 100% of estimated fair value.
(3) See Table 6-a for real property direct tax rates. Tax Rates are applied per $100 of assessed value.
(4) The personal property tax rate for Queen Anne's County is zero.
Source: State of Maryland, Department of Assessments and Taxation.
186

187

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - COUNTY DIRECT RATE
LAST TEN FISCAL YEARS
Table 6-a
County
Fiscal Direct
Year Rate (1)
2014 $ 0 .8471
2015 0 .8471
2016 0 .8471
2017 0 .8471
2018 0 .8471
2019 0 .8471
2020 0 .8471
2021 0 .8471
2022 0 .8471
2023 0 .8300
NOTES:
* No discounts are allowed.
* Taxes are levied as of July 1, are due by September 30, and become delinquent October 1.
* Owner occupied properties may elect to pay on an annual basis. If no election is made,
taxes are paid on a semi-annual basis with payment due by September 30 and December 31
* Non-owner occupied properties must pay on an annual basis.
* Interest at one percent per month is assessed on delinquent tax bills.
* Revised tax bills based upon certifications from the State received after September 1
may be paid within thirty days without interest.
* Delinquent taxes on real property are collected by sale.
* Costs of tax sale, which vary, are added to the redemption.
* Tax sale date: Third Tuesday in May.
* The personal property tax rate for Queen Anne's County is zero.
(1) Tax Rates are applied per $100 of assessed value.
188

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - COUNTY SPECIAL TAXING DISTRICTS
LAST TEN FISCAL YEARS
Table 6-b
Kent Narrows
Commercial Management
Fiscal and Waterfront
Year Improvement District
2014 $ 0 .0600
2015 0 .0600
2016 0 .0600
2017 0 .0600
2018 0 .0600
2019 0 .0600
2020 0 .0600
2021 0 .0600
2022 0 .0600
2023 0 .6000
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
189

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
Fiscal Town of Town of Town of Town of Town of
Year Centreville Barclay Church Hill Millington Queen Anne
2014 $ 0 .3800 $ 0 .2000 $ 0 .3400 $ 0 .2800 $ 0 .1800
2015 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
2016 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
2017 0 .4100 0 .2000 0 .3400 0 .2800 0 .1800
2018 0 .4050 0 .2000 0 .3400 0 .2800 0 .1800
2019 0 .4050 0 .2000 0 .3400 0 .2800 0 .1800
2020 0 .4050 0 .2000 0 .3400 0 .2800 0 .1800
2021 0 .4050 0 .2000 0 .3400 0 .2774 0 .1800
2022 0 .5350 0 .2000 0 .3400 0 .2909 0 .1800
2023 0 .5350 0 .2000 0 .3400 0 .2920 0 .1800
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
* Taxes collected by the County for other fiscal units, including overlapping governments, are remitted
based on actual collections.
190

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
(CONTINUED)
Town of Town of Town of
Queenstown Sudlersville Templeville
$ 0 .1890 $ 0.1670 $ 0 .3600
0 .1895 0.1670 0 .3600
0 .1850 0.1670 0 .3600
0 .1810 0.1670 0 .5788
0 .1773 0.1670 0 .3600
0 .1726 0.1670 0 .3600
0 .1744 0.1670 0 .3600
0 .1867 0.1670 0 .3600
0 .2026 0.1670 0 .3600
0 .2217 0.1670 0 .3600
191

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
TEN HIGHEST COMMERCIAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 7
For the Fiscal Year Ended June 30, 2023
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 41,474,067 0.44 %
KRM - Chesapeake LLC 22,596,900 0.24
Bay Bridge Holding Company LLC 17,556,103 0.19
Chesapeake Bay Beach Club LLC 16,384,900 0.18
Maryland General Land Co LLC 15,901,300 0.17
Anne Arundel Real Estate Holding Co 15,762,370 0.17
SHM Narrows Point LLC 15,214,867 0.16
Shore Health System INC 13,904,433 0.15
Kent Narrows Marine LLC 13,060,367 0.14
Kent Towne Market LLC 10,752,367 0.12
Total $ 182,607,674 1.96 %
Total Assessable Base $ 9,335,551,287 100.00 %
For the Fiscal Year Ended June 30, 2014
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 57,653,434 0.76 %
KRM Development Corporation 35,775,300 0.47
Great American Life Insurance Company 15,721,000 0.21
Beach Harbor Campers Cooperative Inc 12,582,700 0.17
White's Heritage LLC 11,752,939 0.16
K Hovnanian at Kent Island LLC 11,500,000 0.15
Mears Point Association 10,783,567 0.14
TC Shopping Center Limited Parnters 10,288,967 0.14
Anne Arundel Real Estate Holding Co 10,000,967 0.13
Shore Health System Inc 9,975,900 0.13
Total $ 186,034,774 2.46 %
Total Assessable Base $ 7,540,259,768 1 00.00 %
Source: State of Maryland Department of Assessments and Taxation
192

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Table 8
Collected within the
Taxes Levied Fiscal Year of the Levy Collections in Total Collections to Date
Fiscal for the Percentage of Subsequent Percentage of
Year Fiscal Year Amount Original Levy Years Amount Original Levy
2014 $ 63,184,321 $ 6 2,834,349 99.45% $ 349,972 $ 63,184,321 100.00%
2015 63,338,629 6 3,231,601 99.83% 107,028 6 3,338,629 100.00%
2016 63,799,184 6 3,647,404 99.76% 151,780 6 3,799,184 100.00%
2017 65,217,648 6 5,107,115 99.83% 110,533 6 5,217,648 100.00%
2018 66,768,776 6 6,721,619 99.93% 47,157 6 6,768,776 100.00%
2019 68,887,556 6 8,778,389 99.84% 73,219 6 8,851,608 99.95%
2020 70,825,936 7 0,375,695 99.36% 409,693 7 0,785,388 99.94%
2021 72,635,124 7 2,627,467 99.99% 2,734 7 2,630,201 99.99%
2022 74,882,965 7 4,789,167 99.87% 63,111 7 4,852,278 99.96%
2023 77,663,358 7 7,608,873 99.93% - 7 7,608,873 99.93%
NOTES:
* This table includes data for all property taxes billed applicable to all funds for Queen Anne's County, Maryland to include General,
Special Revenue, and Enterprise Funds. Property taxes billed for the State of Maryland and various municipalities are excluded.
193

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities
General Subscription-Based Total
Fiscal Obligation Notes Information Technology Governmental
Year Bonds Payable Leases Arrangements Activities
2014 $ 107,883,563 $ 958,156 $ - $ - $ 1 08,841,719
2015 112,060,053 784,785 - - 1 12,844,838
2016 118,977,909 1,913,199 - - 1 20,891,108
2017 123,519,157 1,698,425 - - 1 25,217,582
2018 132,567,304 1,417,461 - - 1 33,984,765
2019 135,985,079 1,098,323 - - 1 37,083,402
2020 136,513,411 775,589 - - 1 37,289,000
2021 142,970,963 703,773 - - 1 43,674,736
2022 142,140,969 655,957 - - 1 42,796,926
2023 132,251,652 608,141 614,668 1,178,880 1 34,653,341
Business-type Activities
General Subscription-Based Total Total
Fiscal Obligation Notes Information Technology Business-type Primary
Year Bonds Payable Leases Arrangements Activities Government
2014 $ 2,053,736 $ 12,584,475 $ - $ - $ 1 4,638,211 $ 1 4,638,211
2015 3,540,295 11,388,918 - - 14,929,213 1 4,929,213
2016 3,520,859 10,471,639 - - 13,992,498 1 3,992,498
2017 3,217,479 16,296,744 - - 19,514,223 1 9,514,223
2018 2,976,195 25,484,821 - - 28,461,016 2 8,461,016
2019 2,725,011 29,419,756 - - 32,144,767 3 2,144,767
2020 2,475,881 31,932,369 - - 34,408,250 3 4,408,250
2021 2,337,041 34,432,935 - - 36,769,976 3 6,769,976
2022 2,362,308 33,291,256 39,225 - 35,692,789 3 5,692,789
2023 2,206,362 35,322,576 144,381 - 37,673,319 3 8,852,199
Ratios
Debt to
Total Outstanding
Fiscal Personal Debt per
Year Income (1) Capita (1)
2014 0.83% $ 3 01
2015 0.81% 3 06
2016 7.24% 2 ,780
2017 7.64% 2 ,960
2018 1.47% 5 82
2019 1.56% 6 33
2020 1.46% 6 54
2021 1.57% 7 05
2022 1.53% 6 84
2023 1.51% 7 45
NOTES:
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
194

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Table 10
Percentage of
Fiscal General Total Taxable Per
Year Bonded Debt (1) Assessable Base (2) Capita (3)
2014 $ 109,937,299 1.46% $ 2,260
2015 115,600,348 1.53% 2,369
2016 122,498,768 1.61% 2,525
2017 126,736,636 1.63% 2,592
2018 135,543,499 1.70% 2,772
2019 138,710,090 1.68% 2,733
2020 138,989,292 1.64% 2,643
2021 145,308,004 1.67% 2,785
2022 144,503,277 1.62% 2,769
2023 134,458,014 1.44% 2,600
NOTES:
* General Bonded Debt includes all general obligation debt, regardless of
purpose or repayment source, and other bonded debt financed with general
government resources. Other debt is excluded because it is not in the form of bonds.
(1) General Bonded Debt is comprised of both governmental and business-
type activities from Table 9.
(2) See Table 5 for taxable assessable base.
(3) See Table 14 for population data.
195

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2023
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 134,653,341
Towns: (2)
Centreville (100%) 12,879,539
Queenstown (100%) 4,878,513
Millington (100%) 1,040,000
Sudlersville (100%) (3) 300,000
Total Net Overlapping Debt 19,098,052
Total Net Direct and Overlapping Debt $ 1 53,751,393
NOTES:
(1) Net direct debt of the County includes Governmental Activities general obligation bonds, notes payable, leases, and
subscription-based information technology arrangements. See Table 9.
Overlapping debt is the debt of other governmental entities located within the County that is
payable in whole or in part by taxpayers of the County.
(2) Entities are located wholly within Queen Anne's County. Debt information reported by municipalities.
(3) FY23 nor FY22 gross debt could not be obtained. The amount being reported is the amount confirmed from FY21.
196

197

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2014 2015 2016 2017 2018
Computation of Legal Debt Margin - for Queen Anne's County
Other than Debt related to the Sanitary District:
Authorized debt limit under Title 5 (Subtitle 4) (1) $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 2 ,053,736 3 ,540,295 3 ,520,859 3 ,217,479 2 ,976,195
General Obligation Debt (4) 1 07,883,563 1 12,060,053 1 18,977,909 1 23,519,157 1 32,567,304
Subtotal 1 09,937,299 1 15,600,348 1 22,498,768 1 26,736,636 1 35,543,499
Total authorized debt under Title 5 and specific public laws 1 17,937,299 1 23,600,348 1 30,498,768 1 34,736,636 1 43,543,499
LESS Outstanding bonds, notes payable, and capital leases (5) 1 4,638,211 1 4,929,213 1 34,883,606 1 44,731,805 1 62,445,781
Less: Sanitary District debt (4) 1 2,584,475 1 1,388,918 1 0,471,639 1 6,296,744 2 5,484,821
Subtotal 2 ,053,736 3 ,540,295 1 24,411,967 1 28,435,061 1 36,960,960
Legal Debt Margin - Other than the Sanitary District $ 1 15,883,563 $ 1 20,060,053 $ 6 ,086,801 $ 6 ,301,575 $ 6 ,582,539
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 7 ,540,259,768 $ 7 ,568,705,234 $ 7 ,626,510,532 $ 7 ,792,264,218 $ 7 ,974,395,138
Plus exempt property (3) 6 96,880,673 7 08,231,797 7 13,843,531 7 71,576,578 7 84,345,727
Total assessed value $ 8 ,237,140,441 $ 8 ,276,937,031 $ 8 ,340,354,063 $ 8 ,563,840,796 $ 8 ,758,740,865
Debt Limit - 6% of total assessed value (2) $ 4 94,228,426 $ 4 96,616,222 $ 5 00,421,244 $ 5 13,830,448 $ 5 25,524,452
LESS Sanitary District 1 2,584,475 1 1,388,918 1 0,471,639 1 6,296,744 2 5,484,821
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 2 ,763,304 2 ,695,383 1 ,120,775 9 47,445 1 ,060,045
9 ,821,171 8 ,693,535 9 ,350,864 1 5,349,299 2 4,424,776
Legal Debt Margin - Sanitary District $ 4 84,407,255 $ 4 87,922,687 $ 4 91,070,380 $ 4 98,481,149 $ 5 01,099,676
NOTES:
(1) Title 5, Subtitle 4 (1), of the Code of Public Local Laws of Queen Anne's County authorizes the County to borrow up to $8,000,000 for
general operating and capital improvement expenditures. This authority is in addition to any bonded debt authorized under specific public local laws.
(2) Title 24, Subtitle 1, Section 24-146(A) of the Code of Public Local Laws of Queen Anne's County authorizes the County to borrow an amount not to
exceed 6% of the total value of property assessed. The proceeds of such borrowings must be used for sewer and water system construction payments.
(3) See Table 5.
(4) See Note 9, Section B.
(5) See Note 9.
198

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2019 2020 2021 2022 2023
$ 8 ,000,000 $ 8 ,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000
2 ,725,011 2 ,475,881 2,337,041 2,362,308 2,206,362
1 35,985,079 1 36,513,411 142,970,963 142,140,969 132,251,652
1 38,710,090 1 38,989,292 145,308,004 144,503,277 134,458,014
1 46,710,090 1 46,989,292 153,308,004 152,503,277 142,458,014
1 69,228,169 1 71,697,250 180,444,712 35,692,789 38,852,199
2 9,419,756 3 1,932,369 34,432,935 33,291,256 35,322,576
1 39,808,413 1 39,764,881 146,011,777 2,401,533 3,529,623
$ 6 ,901,677 $ 7 ,224,411 $ 7,296,227 $ 150,101,744 $ 138,928,391
$ 8 ,264,514,461 $ 8 ,486,858,638 $ 8,714,892,522 $ 8,921,620,470 $ 9,335,551,287
8 10,049,666 8 39,013,301 860,398,332 879,391,068 887,420,959
$ 9 ,074,564,127 $ 9 ,325,871,939 $ 9,575,290,854 $ 9,801,011,538 $ 10,222,972,246
$ 5 44,473,848 $ 5 59,552,316 $ 574,517,451 $ 588,060,692 $ 613,378,335
2 9,419,756 3 1,932,369 34,432,935 33,291,256 35,322,576
1 ,259,440 2 ,031,867 2,684,988 1,913,102 1,703,815
2 8,160,316 2 9,900,502 31,747,947 31,378,154 33,618,761
$ 5 16,313,532 $ 5 29,651,814 $ 542,769,504 $ 556,682,538 $ 579,759,574
199

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
2014 2015 2016 2017 2018
Computation of Local Debt Limit, as Authorized under Article 95, Section 22F of the Annotated Code of Maryland
and per criteria established by Queen Anne's County Resolution No. 13-04, as adopted May 2013.
CALCULATION PER FIRST FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is 2.5% or less of the total taxable assessed base.
Total Taxable Assessed Base (1) $ 7,540,259,768 $ 7,568,705,234 $ 7,626,510,532 $ 7,792,264,218 $ 7 ,974,395,138
2.5% 2.5% 2.5% 2.5% 2.5%
2.5% of Total Taxable Assessed Base $ 188,506,494 $ 189,217,631 $ 190,662,763 $ 194,806,605 $ 1 99,359,878
LESS Outstanding and New General Obligation Debt applicable to limit (2) (3)
Enterprise Funds' Debt - Bonds $ 2,053,736 $ 3 ,540,295 $ 3,520,859 $ 3,217,479 $ 2,976,195
General Obligation Debt - Bonds and Notes 108,841,719 112,844,838 120,891,108 125,217,582 133,984,765
Total Outstanding and New General Obligation Debt $ 110,895,455 $ 116,385,133 $ 124,411,967 $ 128,435,061 $ 1 36,960,960
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 77,611,039 $ 72,832,498 $ 66,250,796 $ 66,371,544 $ 62,398,918
CALCULATION PER SECOND FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is $3,000 or less per capita.
Total County Population (4) 48,650 48,804 48,517 48,904 48,904
$3,000 Per Capita $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
$ 145,950,000 $ 146,412,000 $ 145,551,000 $ 146,712,000 $ 1 46,712,000
LESS Outstanding and New General Obligation Debt (1) $ 110,895,455 $ 116,385,133 $ 124,411,967 $ 128,435,061 $ 1 36,960,960
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 35,054,545 $ 30,026,867 $ 21,139,033 $ 18,276,939 $ 9,751,040
NOTES:
(1) See Table 5 - Total Taxable Assessed Value.
(2) See Note 9 A - Changes in Noncurrent Liabilities.
(3) General Obligation Debt includes debt relating to the Sanitary District, because such debt is backed by the full faith
and credit of the County, but excludes all capital leases, which are collateralized by the equipment purchased with
such leases.
(4) See Table 14 - Population.
In May, 2013, as described in Note 9 E, Queen Anne’s County adopted Resolution No. 13-04, thereby continuing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland.
This policy requires that the County’s Director of Budget and Finance to take the following steps:
(a) prepare a six-year capital project plan each year;
(b) propose an amount to be transferred from the General Fund operating balance to the General Capital Projects
Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt;
(c) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements;
(d) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessed base and is $3,000 or less per capita; and
This policy also stipulates that although there is some flexibility as to the acceptable percentage of debt service to general fund
expenditures, and no absolute limit has been established by the rating agencies or the Government Finance Officers Association,
anything above 12% of total general fund expenditures would be a cause to carefully monitor debt service.
200

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
(CONTINUED)
2019 2020 2021 2022 2023
$ 8 ,264,514,461 $ 8 ,486,858,638 $ 8,714,892,522 $ 8,921,620,470 $ 9,335,551,287
2.5% 2.5% 2.5% 2.5% 2.5%
$ 206,612,862 $ 212,171,466 $ 217,872,313 $ 223,040,512 $ 233,388,782
$ 2,725,011 $ 2,475,881 $ 2,337,041 $ 2,362,308 $ 2,206,362
137,083,402 137,289,000 143,674,736 142,796,926 132,859,793
$ 139,808,413 $ 139,764,881 $ 146,011,777 $ 145,159,234 $ 135,066,155
$ 66,804,449 $ 72,406,585 $ 71,860,536 $ 77,881,278 $ 98,322,627
50,750 52,597 52,177 52,177 51,711
$ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
$ 152,250,000 $ 157,791,000 $ 156,531,000 $ 156,531,000 $ 155,133,000
$ 139,808,413 $ 139,764,881 $ 146,011,777 $ 145,159,234 $ 135,066,155
$ 12,441,587 $ 18,026,119 $ 10,519,223 $ 11,371,766 $ 20,066,845
201

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC AND ECONOMIC INFORMATION
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 13
For the Fiscal Year Ended June 30, 2023
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 9 78 1 6.77%
Queen Anne's County Government 5 75 2 3.98%
Paul Reed Smith Guitars 4 68 3 3.24%
Chesapeake College 3 85 4 2.67%
REEB Millwork 3 03 5 2.10%
S.E.W. Friel 2 60 6 1.80%
Food Lion 2 03 7 1.41%
The Chesapeake Bay Beach Club 1 50 8 1.04%
AZZ Enclosures 1 15 9 0.80%
Harris Seafood Company 1 25 10 0.87%
Total 3 ,562 24.69%
For the Fiscal Year Ended June 30, 2014
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 9 72 1 8.52%
Chesapeake College 5 08 2 4.45%
Queen Anne's County Government 4 29 3 3.76%
S.E.W. Friel 2 75 4 2.41%
Paul Reed Smith Guitars 2 49 5 2.18%
Reeb Millwork 1 80 6 1.58%
Cracker Barrel Old Country Store 1 70 7 1.49%
Fisherman's Inn 1 35 8 1.18%
Genesis Healthcare/Corsica Hills Center 1 34 9 1.18%
Federal Resources Supply 1 14 10 1.00%
Total 3,166 27.76%
Source: Queen Anne's County Economic Development Office; Table 15.
202

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Table 14
Average
Total Registered
Fiscal Personal Per Capita Unemployment Number of
Year Population (1) Income (2) Income (3) Rate (3) Pupils (4)
2014 48,650 $ 1 ,771,687,050 $ 3 6,417 5.10% 7,720
2015 48,804 1 ,854,356,784 3 7,996 4.90% 7,752
2016 48,517 1 ,862,664,664 3 8,392 3.90% 7,738
2017 48,904 1 ,894,198,632 3 8,733 3.80% 7,799
2018 48,904 1 ,936,256,072 3 9,593 3.90% 7,768
2019 50,750 2 ,058,064,750 4 0,553 3.70% 7,767
2020 52,597 2 ,353,926,138 4 4,754 7.00% 7,705
2021 52,177 2 ,335,129,458 4 4,754 5.20% 7,351
2022 52,177 2 ,565,960,506 4 9,178 4.00% 7,418
2023 51,711 2 ,722,687,572 5 2,652 1.50% 7,539
NOTES:
(1) Source: Queen Anne's County Division of Land Use and Zoning
(2) Personal income derived by multiplying population by per capita income.
(3) Source: US Census Bureau and Maryland Department of Labor, Licensing, and Regulation - as of June.
(4) Source: Queen Anne's County Board of Education.
203

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Number of Exempt Employees 29 30 32 35 34 32 33 37 40 40
Number of Full Time Employees 393 416 431 439 450 479 484 496 462 533
Number of Part Time Employees (FTE) 7 3 3 4 3 3 2 2 2 2
Total County Government Employees 429 449 466 478 487 514 519 535 504 575
NOTES:
Source: Queen Anne's County Office of Budget and Finance
204

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST TEN FISCAL YEARS
Table 16
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities:
General Government 82 77 81 83 8 7 76 75 78 79 83 92
Public Safety:
Police 56 58 58 59 6 1 62 69 71 70 65 72
Fire - Emergency Management Services 64 67 71 72 7 3 75 82 83 83 84 101
Detention Center 41 41 41 41 4 5 41 42 43 45 42 46
Animal Services 6 3 3 2 2 2 2 2 13 7 13
Public Works 51 54 58 61 5 9 75 80 77 75 68 77
Health 1 1 1 1 1 1 1 1 1 1 1
Social Services 32 36 38 42 4 1 39 39 39 41 41 40
Parks 27 29 39 42 4 4 43 46 52 51 43 53
Conservation of Natural Resources 4 4 3 4 4 4 4 4 4 3 3
Economic/Community Development 6 2 3 6 5 10 11 9 10 10 12
Total Governmental Activities 370 372 396 413 4 22 428 451 459 472 447 510
Business-Type Activities:
Sanitary District 45 46 46 46 4 8 51 55 53 56 50 60
Bay Bridge Airport 1 1 1 1 1 2 2 2 2 2 2
Golf 1 1 1 1 1 1 1 1 1 1 1
Public Landings 2 2 2 2 2 2 2 2 2 2 2
Total Business-Type Activities 49 50 50 50 5 2 56 60 58 61 55 65
Total Full-Time County Employees 419 422 446 463 4 74 484 511 517 533 502 575
NOTES:
- Only full-time County employees are represented in this table.
- Employees of the County's component units have been excluded from this table.
Source: Queen Anne's County Office of Budget and Finance
205

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 51 52 50 47 55 30 49 91 63 83
Number of residential permits issued:
Single Family Permits 133 123 84 124 145 155 173 275 136 271
Multi Family Permits 12 - 1 29 - 37 41 62 32 2
Renovations and Additions Permits 327 270 303 323 339 359 317 343 203 357
Total residential permits issued 472 393 388 476 484 551 531 680 371 630
Public Safety:
Fire and Rescue:
Number of volunteer members 689 683 500 400 500 450 542 558 550 703
Police:
Uniformed Police Officers 61 64 64 64 68 69 71 71 73 77
Number of law violations:
Physical arrests 1,239 1,055 903 914 1,097 930 854 1,080 812 859
Traffic violations 6,514 6,030 8,002 7,183 12,384 10,474 9,705 11,142 7,447 9,859
Detention Center:
Detention Center Officers 41 41 39 38 42 41 41 42 41 43
Average yearly prison population 138 123 115 133 115 105 106 158 154 108
Public Works:
Wastewater Treated - Daily (mgd) 2.0 2.1 2.0 2.0 2.2 2.2 2.1 2.3 2.7 2.6
Education:
Number of Personnel
Teachers 550 575 575 572 569 572 584 603 609 615
Administrators 41 40 40 38 37 37 37 36 38 43
Support 344 295 296 304 300 301 281 336 364 348
Other 37 34 34 34 34 32 7 7 7 5
Number of Students 7,720 7,752 7,738 7,799 7,768 7,767 7,705 7,351 7,418 7,539
Number of High School Graduates 605 589 532 550 552 521 590 561 535 534
NOTES:
Source: Various County departments.
206

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 9 9 9 9 9 9 9 9 9 9
Equipment:
Engines 17 16 16 16 16 15 15 15 15 14
Tankers 8 8 8 8 8 7 9 9 9 9
Aerial Units 4 4 5 5 4 5 5 5 5 5
Rescue Units 6 7 6 6 5 5 7 7 7 7
Brush Units 7 7 7 7 7 7 8 8 8 8
Boats 6 6 6 6 3 4 4 4 4 4
Ambulance/Medic Units 13 14 12 13 13 11 13 12 13 11
Cars/Other 25 25 25 16 14 28 33 33 33 30
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 68 68 71 70 70 71 81 66 43 60
Other 12 15 10 9 14 14 12 29 67 30
Detention Center
Capacity 148 148 148 148 148 148 148 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 543 543 540 549 549 549 550 550 549 549
Unpaved (miles) 12 12 12 12 12 12 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 62 62 64 65 67 68 69 70 71 71
Water Treatment Plants 11 11 11 11 11 11 11 11 11 11
Booster Stations 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 121 122 128 136 151 153 154 160 162 162
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 31 31 31 32 32 32 32 32 32 32
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 4 4 4 4 4 4 4 4 4 4
Elementary Schools 8 8 8 8 8 8 8 8 8 8
Parks and Recreation:
Parks 33 33 32 32 32 32 32 32 32 32
Park Acreage 2,915 2,915 2,915 2,915 3,085 3,085 3,085 3,085 3,085 3,085
Public Landings 20 20 19 20 20 20 20 20 20 20
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
207