Fiscal Year 2012 CAFR (PDF)

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

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2012
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1-5
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Certain Elected and Other Officials 9
FINANCIAL SECTION
Independent Auditor's Report 11-12
Management's Discussion and Analysis (required supplementary information) 13-30
BASIC FINANCIAL STATEMENTS 31
Government-Wide Financial Statements
Statement of Net Assets 32-33
Statement of Activities 34-35
Governmental Fund Financial Statements
Balance Sheet 36
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 37
Statement of Revenues, Expenditures and Changes in Fund Balances 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 40-41
Enterprise Fund Financial Statements
Statement of Net Assets 42-43
Statement of Revenues, Expenses, and Changes in Fund Net Assets 44-45
Statement of Cash Flows 46-47
Fiduciary Fund Statements
Statement of Fiduciary Net Assets 48
Statement of Changes in Fiduciary Net Assets 49
Notes to Financial Statements 50-104
REQUIRED SUPPLEMENTARY INFORMATION 105
Other Post-Employment Benefits (OPEB) Trust
Schedule of Funding Progress and Schedule of Participating Agencies' Contributions 106
Budgetary Comparisons for General Fund
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 107-109

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2012
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(SUPPLEMENTARY INFORMATION) 110
Non-Major Governmental Funds 111-113
Combining Balance Sheet 114-116
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 118-120
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 122-127
Capital Projects Funds 129
Schedule of Appropriations and Expenditures 130-132
Non-Major Enterprise Funds 133-135
Combining Statement of Net Assets 136-137
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 138-139
Combining Statement of Cash Flows 140-141
Fiduciary Funds 143-145
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Assets 146
Combining Statement of Changes in Fiduciary Net Assets 147
Agency Funds
Statement of Agency Funds Assets and Liabilities 149
Statement of Changes in Agency Funds Assets and Liabilities 150-151
Community Partnerships for Children Special Revenue Fund 153
Combining Balance Sheets - By Grantor 154-155
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 156-159
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 160-161
STATISTICAL SECTION (UNAUDITED) 163
Table
1 Net Assets by Component - Government-Wide 164-165
2a Changes in Net Assets - Government-Wide 166-169
2b General Tax Revenues - Governmental Activities 170
3 Fund Balances - Governmental Funds 171
4 Changes in Fund Balances - Governmental Funds 172-173
5 Assessed Value of Taxable and Exempt Property 175
6a Real Property Tax Rates - County Direct Rate 176
6b Real Property Tax Rates - County Special Taxing Districts 177
6c Real Property Tax Rates - Overlapping Governments - Towns 178-179
7 Ten Highest Commercial Property Taxpayers 180
8 Property Tax Levies and Collections 181
9 Ratios of Outstanding Debt by Type 182
10 Ratios of General Bonded Debt Outstanding 183
11 Computation of Net Direct and Overlapping Debt 185
12a Computation of Legal Debt Margin 186-187
12b Computation of Local Debt Limit 188
13 Principal Employers 189
14 Demographic Statistics 190
15 County Government Employees - Full-Time Equivalents 192
16 County Government Employees - Full-Time Only by Function 193
17 Operating Indicators by Function 194
18 Capital Asset Statistics by Function 195

Introductory Section

QUEEN ANNE’S COUNTY DEPARTMENT
OF BUDGET AND FINANCE
THE LIBERTY BUILDING
107 N. LIBERTY STREET
CENTREVILLE, MARYLAND 21617
TAX DIVISION (410) 758-0414 FAX: (410) 758-4405
ACCOUNTING (410) 758-4064 FAX: (410) 758-3036
COUNTY COMMISSIONERS ——————————————————
TDD (410) 758-2126 www.qac.org JONATHAN R. SEEMAN
STEVEN J. ARENTZ – AT LARGE DIRECTOR
DAVID L. DUNMYER – DISTRICT 1
BOB SIMMONS – DISTRICT 2
PHILIP L. DUMENIL – DISTRICT 3 MARIE K. LANGE
DAVID OLDS – DISTRICT 4 CHIEF TREASURY OFFICER
GREGG A. TODD, COUNTY ADMINISTRATOR
MARGIE A. HOUCK, EXECUTIVE ASSISTANT TO COUNTY COMMISSIONERS
January 24, 2013
The Board of County Commissioners and
The Citizens of Queen Anne’s County, Maryland
Formal Transmittal of the Comprehensive Annual Financial Report (CAFR)
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 comprehensive annual financial report of Queen Anne’s County, Maryland for the fiscal year ended
June 30, 2012.
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 CliftonLarsonAllen 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, 2012, 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
unqualified opinion that Queen Anne’s County’s financial statements for the fiscal year ended June 30,
2012, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the
first component of the financial section of this report.
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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.
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 47,798 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, and certain recreational facilities.
The appropriated annual budget is prepared by fund, function (e.g. public safety), and department (e.g.
Detention Center). 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 on pages 107 to 109
as part of the 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 on pages 122 to 127 and on pages 160 to 161.
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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 2012 rate for the County was 6.6%, compared to the state’s rate of
7.2% and the U.S.’s rate of 8.2%. The 2012 average rate for the County was 6.6%.
Unemployment Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Queen Anne's County Maryland United States
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 top 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 nearly 60% of the workforce to commute to locations outside the County, primarily
to higher paying jobs in the Baltimore and Washington areas.
Property taxes increased by 9.7% in fiscal year 2012, from $60.1 million in fiscal year 2011 to $65.9
million in fiscal year 2012. This increase was the result of an increase in the property tax rate, from
$0.7671 to $0.8471 per $100 of assessed value, effective July 1, 2011. Property tax revenue is projected to
decline slightly for fiscal year 2013, due to changes in assessment values. Local income tax is the County’s
other main revenue source. Income tax collections increased by 21.8% in fiscal year 2012, from $29.5
million in fiscal year 2011 to $36.0 million in fiscal year 2012. The County projected an increase of 5.3%
based on the rate increase from 2.85% to 3.2%, effective January 1, 2012. The remaining increase resulted
from an increase in the distributions received from the State. The County does not expect the increased
income tax revenue to continue. Typically, when the State’s income tax distributions are high one year,
then the following year is often lower. The projected income tax revenue for fiscal year 2013 is $32.4
million, which is $3.6 million less than the income tax revenue received in fiscal year 2012.
For the past several years, County revenues related to housing activity continue to be affected by the
bursting of the real estate bubble that began in fiscal year 2006. However, recordation tax revenue, a
leading indicator of the health of the local real estate market, experienced positive growth in fiscal year
2012, compared to 2011. Recordation tax revenue increased from $3.6 million in fiscal year 2011 to $3.8
million in 2012, a 5.5% increase. The projected recordation tax revenue for fiscal year 2013 is constant
with the 2012 revenue.
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LONG TERM FINANCIAL PLANNING
Rainy Day Fund – In calendar year 2002, the County adopted Ordinance No. 02-08 to establish a Rainy
Day Fund. The ordinance required that the County maintain a fund balance reserve for contingencies in an
amount equal to 7% of general fund operating revenues budgeted for the following fiscal year. In fiscal
year 2011, the County adopted Ordinance No. 11-05, which served the purpose of eliminating the
requirements for reserve fund balance for contingencies in Queen Anne’s County which are not in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 54. However, the
County Commissioners are working with the Finance Office in efforts to reestablish sufficient levels of
reserves in compliance with GASB requirements. The fiscal year 2012 financial results will enable the
County to re-establish the Rainy Day Fund at a 7% level. Ordinance No. 12-21 was introduced in October
2012 for the purpose of re-establishing the rainy day fund, and requires the County to maintain a Rainy Day
Fund for contingencies in an amount equal to 7% of budgeted general fund operating revenues. The County
Commissioners have not voted on this ordinance yet, but are expected to adopt it during fiscal year 2013.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal year 2013,
prioritizes capital expenditures over these years to meet the County’s needs. The six-year program
includes: $47.2 million for renovation of various school facilities; $12.8 million for emergency services;
$8.9 million for the Bay Bridge Airport; and $7.2 million for Roads Board capital projects. Offsetting
nearly 94% of the Airport’s capital costs, $8.4 million in grants are anticipated. Another $1.6 million in
grants will cover approximately 22% of the costs for the Roads Board capital projects.
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were
recognized by two major rating agencies. Fitch Rating Service issued an AA+ bond rating and Moody’s
issued a rating of Aa2.
Debt Management Policy – In calendar year 2009, the County adopted Resolution 09-13, which
establishes the County’s Local Dept Policy. In accordance with this policy, the Director of 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. For fiscal year 2012, Queen Anne’s County general
obligation debt was 1.31% of the total taxable assessable base, and the per capita debt measurement was
$2,102. Both thresholds are well below the policy limits. In addition, general bonded debt outstanding, as
a percentage of total taxable assessable base, has improved over the last ten fiscal years, from 1.63% in
fiscal year 2003 to 1.31% in fiscal year 2012.
Fund Balance Policy – Although the County does not currently have a minimum 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.
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2012
CERTAIN ELECTED OFFICIALS
County Commissioners Steven J. Arentz, At Large
David L. Dunmyer, District 1
Bob Simmons, District 2
Philip L. Dumenil, District 3
David Olds, District 4
State’s Attorney Lance G. Richardson, Esq.
Sheriff Raymond G. Hofmann
CERTAIN DEPARTMENT HEADS AND OTHER OFFICIALS
County Administrator Gregg A. Todd
Director of Public Works Todd R. Mohn
Director of County Administration Gregg A. Todd
Director of Planning and Zoning J. Steve Cohoon
Director of Community Services Catherine R. Willis
Director of Budget and Finance Jonathan R. Seeman
Chief Treasury Officer Marie K. Lange
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
CliftonLarsonAllen LLP McKennon, Shelton Public Advisory Consultants
Certified Public Accountants & Henn, LLP Baltimore, Maryland
Timonium, Maryland Baltimore, Maryland
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CliftonLarsonAllen LLP
www.cliftonlarsonallen.com
Independent Auditor’s Report
The Board of Commissioners
of Queen Anne's County, Maryland
Centreville, Maryland
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, 2012, which collectively comprise the County’s basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the County’s management. Our responsibility is to express opinions on these
financial statements based on our audit. We did not audit the component unit financial
statements of the Board of Education of Queen Anne’s County and the Queen Anne’s County
Free Library, which comprise 89% of the assets, 88% of the net assets and 98% of the revenues
of the discretely presented component units. Those financial statements were audited by other
auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to
the amounts included for the above mentioned component units, is based solely on the reports of
the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the County
as of June 30, 2012, and the respective changes in financial position and cash flows, where
applicable, for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
January 23, 2013 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 to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
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Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis on pages 13 through 30; Other Post-Employment
Benefits (OPEB) Trust Schedule of Funding Progress and Schedule of Participating Agencies’
Contributions; and Budgetary Comparisons for General Fund Schedule of Revenues,
Expenditures and Changes in Fund Balances – Budget and Actual on pages 105 through 109 be
presented to supplement the basic financial statements, such information although not a part of
the basic financial statements is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. However, we did not
audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the the County’s basic financial statements. The Combining and
Individual Fund Statements and Schedules listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual fund statements and schedules are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to
prepare the financial statements. The information has been subjected to the auditing procedures
applied in the audit of the 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 financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information is fairly stated, in all material respects,
in relation to the basic financial statements taken as a whole.
The introductory section and statistical tables listed in the table of contents have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
a
Baltimore, Maryland
January 23, 2013
-12-

Management’s Discussion and Analysis
Introduction
This section of the Comprehensive Annual 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, 2012. 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 assets presents information on all of Queen Anne’s County Government’s assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in
net assets may serve as a useful indicator of whether the financial position and condition of Queen Anne’s
County Government is improving or deteriorating.
The statement of activities presents information showing how the government’s net assets changed during
the most recent fiscal year. All changes in net assets 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, public marinas, parks, and various recreational facilities.
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, Queen Anne’s County Free Library, and the Queen Anne’s County Public Housing Authority.
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 on
pages 32 to 35 of this report.
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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, with basic statements found on pages 36 to 49.
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 on pages 37 and 40 to 41.
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 (includes the roads board);
school, fire, and parks impact fee capital projects funds; and the following special revenue funds:
department of aging, housing and community services, community partnerships for children, dredging
special assessments, Kent Narrows, law library, inmate welfare, agricultural transfer, rural legacy, and
purchase of development rights. A budgetary comparison statement has been provided for each of these
funds, which can be found on pages 107 to 109; 122 to 127; and 160 to 161 of this report.
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, marinas, parks, and
other recreational facilities. The basic proprietary fund financial statements can be found on pages 42 to 47
of this report, as well as non-major statements on pages 136 to 141.
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 agency funds. The accounting used for fiduciary funds
is much like that used for proprietary funds except that the agency funds report only assets and liabilities
and do not report net assets or changes therein. The basic fiduciary fund financial statements can be found
on pages 48 to 49 of this report, while further detail can be found on pages 146 to 151.
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 on pages 50 to 104 of this report.
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Government-wide Financial Analysis
Statement of Net Assets
A summary of government-wide assets, liabilities, and net assets is as follows:
Governmental Activities Business Type Activities Total
Summary of Net Assets 2012 2011 2012 2011 2012 2011
Current and Other Assets $ 65,273,017 $ 66,453,636 $ 23,382,846 $ 23,992,122 $ 88,655,863 $ 90,445,758
Capital Assets 142,767,665 143,875,958 95,888,255 97,987,069 238,655,920 241,863,027
Total Assets 208,040,682 210,329,594 119,271,101 121,979,191 327,311,783 332,308,785
Noncurrent liabilities 119,185,706 119,962,802 22,310,845 23,137,941 141,496,551 143,100,743
Other liabilities 9,534,014 10,886,689 3,552,091 3,950,284 13,086,105 14,836,973
Total Liabilities 128,719,720 130,849,491 25,862,936 27,088,225 154,582,656 157,937,716
Net assets:
Invested in capital assets, net
of related debt 117,436,984 118,274,533 77,891,395 78,069,061 195,328,379 196,343,594
Restricted 5,982,041 22,399,514 3,513,948 16,821,905 9,495,989 39,221,419
Unrestricted ( 44,098,063) (61,193,944) 12,002,822 - (32,095,241) (61,193,944)
Total Net Assets $ 79,320,962 $ 79,480,103 $ 93,408,165 $ 94,890,966 $ 172,729,127 $ 174,371,069
The County’s total current and other assets decreased by $1.8 million, or 2.0 percent, to $88.7 million. The
County’s total assets exceeded its liabilities at the close of fiscal year 2012 by $172.7 million.
Net assets are divided into three categories: invested in capital assets (net of related debt); restricted net
assets; and unrestricted net assets. By far, the largest portion, $195.3 million, of the County’s total net
assets 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 $68.3 million at June 30, 2012. Absent the effect of
this relationship, the County would have reported positive unrestricted net assets of $36.2 million on its
government-wide financial statements, rather than the negative unrestricted net assets of $32.1 million
reported herein. For a multi-year view of this calculation, see the Footnote presented in Table 1 of the
Statistical Section.
An additional $9.5 million of the County’s total net assets represents resources that are subject to
restrictions on how they may be used. For governmental activities, this amount includes: $2.0 million
restricted for programs related to conservation of natural resources; $1.7 million for economic/community
development; $834 thousand related to general government services; $778 thousand for education; and an
additional $578 thousand for other restrictions. For business-type activities, this amount includes $2.8
million restricted to meet Sanitary District debt covenants and $753 thousand restricted by Sanitary District
developer exaction project requirements.
At the end of the current fiscal year, Queen Anne’s County Government reports positive balances in two
out of three categories of net assets, both for the government as a whole, as well as for its separate
governmental activities. Business-type activities report all non-capital net assets as restricted, due to the
inherent nature of those activities, and show a positive balance in both categories.
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Statement of Activities
The following table summarizes changes in net assets for governmental and business-type activities during
the year:
Governmental Activities Business Type Activities Total
Summary of Changes in Net Assets 2012 2011 2012 2011 2012 2011
Revenues:
Program revenues:
Charges for services $ 5,009,046 $ 4,141,854 $ 9,640,096 $ 9,883,640 $ 14,649,142 $ 14,025,494
Operating grants and contributions 4,701,361 6,000,107 170,238 59,528 4,871,599 6,059,635
Capital grants and contributions 1,949,135 3,551,752 1,147,729 2,070,839 3,096,864 5,622,591
General revenues:
Property taxes 65,937,415 60,070,368 - - 65,937,415 60,070,368
Local income tax 34,028,234 30,624,679 - - 34,028,234 30,624,679
Other local taxes
Admission and amusement taxes 183,634 188,715 - - 183,634 188,715
Recordation taxes 3,809,545 3,609,751 - - 3,809,545 3,609,751
Hotel taxes 468,382 441,123 - - 468,382 441,123
County transfer taxes 1,266,716 1,158,897 - - 1,266,716 1,158,897
Investment income 126,650 136,523 374,665 407,629 501,315 544,152
Gain on sale of capital assets 27,627 281,158 - - 27,627 281,158
Miscellaneous 1,254,255 711,868 1,127,590 884,772 2,381,845 1,596,640
Total Revenues 118,762,000 110,916,795 12,460,318 13,306,408 131,222,318 124,223,203
Expenses:
Governmental Activities:
General government 13,421,531 15,968,633 - - 13,421,531 15,968,633
Public safety 25,469,721 25,413,678 - - 25,469,721 25,413,678
Public works 10,373,286 12,189,177 - - 10,373,286 12,189,177
Health 1,642,723 1,701,677 - - 1,642,723 1,701,677
Social services 4,526,166 5,001,240 - - 4,526,166 5,001,240
Education 53,693,309 57,506,341 - - 53,693,309 57,506,341
Libraries 1,302,163 1,457,336 - - 1,302,163 1,457,336
Conservation of natural resources 2,802,337 3,811,748 - - 2,802,337 3,811,748
Economic and Community development 887,837 1,893,570 - - 887,837 1,893,570
Interest and fiscal charges 4,196,072 4,078,105 - - 4,196,072 4,078,105
Business-type Activities:
Water and sewer - - 10,711,211 10,905,989 10,711,211 10,905,989
Parks and recreation - - 2,269,933 4,099,507 2,269,933 4,099,507
Public marinas - - 110,884 67,395 110,884 67,395
Airport - - 1,457,087 1,167,655 1,457,087 1,167,655
Total Expenses 118,315,145 129,021,505 14,549,115 16,240,546 132,864,260 145,262,051
Increase (Decrease) in Net Assets before Transfers 446,855 (18,104,710) (2,088,797) (2,934,138) (1,641,942) (21,038,848)
Transfers in (out) (605,996) (611,922) 605,996 611,922 - -
(Decrease) in Net Assets (159,141) (18,716,632) ( 1,482,801) (2,322,216) ( 1,641,942) (21,038,848)
Net Assets - Beginning of Year 79,480,103 98,196,735 94,890,966 97,213,182 174,371,069 195,409,917
Net Assets - End of Year $ 79,320,962 $ 79,480,103 $ 93,408,165 $ 94,890,966 $ 172,729,127 $ 174,371,069
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Governmental activities:
Revenues for governmental activities were $118.8 million for fiscal year 2012. The following chart depicts
revenues by source for governmental activities:
Revenues by Source -
Governmental Activities
For the Year Ended June 30, 2012
Gain on Sale of Capital
County transfer taxes
Assets
1.07%
Investment 0.02% Miscellaneous
Hotel taxes Income 1.06%
Recordation taxes 0.39% 0.11%
3.21% Charges for services
4.22%
Admission and
amusement taxes Operating, capital &
0.15% restricted grants
5.60%
Local income tax
28.65%
Property taxes
55.52%
• Taxes comprise the largest source of County revenue, totaling $105.7 million (89.0 percent) of
total revenue for fiscal year 2012. Of that amount, property and local income tax together yielded
$100.0 million (84.2 percent) of all revenue. Each County sets its own property and income tax
rates, within parameters established by the State. For fiscal year 2012, the County’s property tax
rate was set at $.8471 per $100 of assessed value of real property, based on full cash value of that
property. This was an increase from the fiscal year 2011 rate of $.7671 per $100 of assessed value
of real property. The County’s local income tax rate increased from 2.85 percent of the State
taxable income for calendar year 2011 to 3.2 percent for taxable years beginning January 1, 2012
and thereafter. There is no local sales tax in the State of Maryland.
• Operating grants and contributions, totaling $4.7 million, reflect grants from Federal and State
agencies that support specific County programs. Programs that benefitted the most were: social
services ($2.1 million or 44.2 percent) and public safety ($1.1 million or 23.7 percent).
• Charges for services, totaling $5.0 million, reflect fees charged to County citizens. These
primarily support public safety ($1.3 million or 26.4 percent), education ($1.2 million or 23.4
percent), public works ($1.1 million or 22.1 percent) and general government ($1.1 million or 21.6
percent).
• Capital grants and contributions, totaling $1.9 million, reflect contributions from Federal and State
agencies, as well as developers. Capital activities that benefit the most this year are: conservation
of natural resources ($999 thousand or 51.3 percent) and public works ($542 thousand or 27.8
percent).
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Expenses for all governmental activities were $118.3 million for fiscal year 2012. The following chart
depicts expenses by function for governmental activities:
Expenses -
Governmental Activities
For the Year Ended June 30, 2012
Economic and
Community
Interest and fiscal
development
0.75% charges
3.55%
Conservation of
natural resources
2.37% General government
11.34%
Libraries
1.10%
Public safety
21.53%
Public works
Education 8.77%
45.37%
Health
Social services 1.39%
3.83%
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 $53.7 million (45.4 percent). In order of priority, public safety expenses
totaled $25.5 million (21.5 percent); general government expenses were $13.4 million (11.3 percent);
public works expenses were $10.4 million (8.8 percent); social services expenses totaled $4.5 million (3.8
percent); conservation of natural resources expenses were $2.8 million (2.4 percent); economic and
community development expenses were $888 thousand (0.8 percent); and other expenses were $7.1 million
(6.0 percent).
Note that beginning in fiscal year 2012, parks and recreation activities is combined with public works,
therefore, for comparison purposes; parks and recreation is also included in public works for all prior year
comparisons.
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 2012 2011 2012 2011 2012 2011
Education $ 53,693,309 $ 57,506,341 $ 1,169,425 $ 755,443 $ (52,523,884) $ (56,750,898)
Public Safety 25,469,721 25,413,678 2,624,888 2,634,510 (22,844,833) (22,779,168)
General Government 13,421,531 15,968,633 1,940,723 1,899,088 (11,480,808) (14,069,545)
Public Works 10,373,286 12,189,177 2,137,340 2,709,827 (8,235,946) (9,479,350)
Social Services 4,526,166 5,001,240 2,166,442 2,335,192 (2,359,724) (2,666,048)
Conservation of Natural Resources 2,802,337 3,811,748 1,134,222 3,004,963 (1,668,115) (806,785)
Economic and Community Development 887,837 1,893,570 486,502 354,690 (401,335) (1,538,880)
Other 7,140,958 7,237,118 - - (7,140,958) (7,237,118)
Total $ 118,315,145 $ 129,021,505 $ 11,659,542 $ 13,693,713 $ (106,655,603) $ (115,327,792)
Of the total cost of $118.3 million for governmental activities, $11.7 million (9.9 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 $5.0
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million, while governments and other organizations that benefited indirectly from these programs
contributed operating grants of $4.7 million and capital grants of $1.9 million.
County taxpayers paid for most of the remaining $106.7 million in net program costs, through a variety of
County taxes, for a total of $105.7 million. Net program costs of services provided to the public, in order
of net cost, were: $52.5 million for education; $22.8 million for public safety; $11.5 million for general
government; $8.2 million for public works; $2.4 million for social services; $1.7 million for conservation
of natural resources; $401 thousand for economic and community development; and $7.1 million for other
services. See Changes in Net Assets and General Fund Budgetary Highlights for further details.
Changes in net assets: Government-wide revenues, less expenses, plus/minus transfers in/out, yield
changes in net assets. During fiscal year 2012, governmental activities decreased the County’s net assets
overall by $159 thousand, compared to a decrease of $18.7 million in fiscal year 2011. The following
discussion explains changes in net assets relative to the prior fiscal year.
Revenues for governmental activities increased by $7.8 million (7.1 percent). The following key revenues
changed, when compared to the prior fiscal year:
• Property tax increased by $5.9 million (9.8 percent), from $60.1 million in fiscal year 2011 to
$65.9 million in fiscal year 2012. This increase was expected, due to an increase in the property
tax rate from $0.7671 to $0.8471 per $100 of assessed value, effective July 1, 2011.
• Local income tax increased by $3.4 million (11.1 percent), from $30.6 million to $34.0
million. The County projected an increase of $1.6 million due to an increase in the income tax rate
from 2.85% to 3.2%, effective January 1, 2012. The remaining increase relates to higher
distributions of the local income tax from the State of Maryland Comptroller to Queen Anne’s
County.
• Capital grants and contributions decreased by $1.7 million, from $3.6 million in fiscal year 2011
to $1.9 million in fiscal year 2012. Significant factors influencing this decrease are:
o Conservation of Natural Resources decreased by $925 thousand (48.1 percent), mainly due to
a decrease of $1.4 million in state capital grants received in fiscal year 2011for the purchase
of Conservation Reserve Enhancement Program (CREP) easements, which was not received
in fiscal year 2012. This decrease was partially offset by an increase of $374 thousand in
state capital grants received in fiscal year 2012 related to purchasing easements as part of the
Rural Legacy program.
o Public Works decreased by $559 thousand (50.8 percent), mainly as a result of a decrease in
the American Recovery and Reinvestment Act (ARRA) grants. In fiscal year 2011, $878
thousand was received for this grant. In fiscal year 2012, $458 thousand was received for the
same grant. The remaining decrease was a result of cost saving measures taken throughout
the County.
• Operating grants and contributions decreased by $1.3 million, from $6.0 million in fiscal year
2011 to $4.7 million in fiscal year 2012. Key factors for this change are:
o Conservation of Natural Resources decreased by $969 thousand (96.3 percent) as a result of
federal grant funding of $962 thousand received in fiscal year 2011 for the purchase of a land
conservation easement. No such grant was received in fiscal year 2012.
o Public Safety decreased by $348 thousand (23.8 percent). The majority of the decrease was
related to the Eastern Shore Communications Alliance, which accounted for a decrease of
$232 thousand for fiscal year 2012.
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• Charges for services increased by $867 thousand (20.9 percent), from $4.1 million in fiscal year
2011 to $5.0 million in fiscal year 2012. Of this increase, $414 thousand related to education, due
to an increase in school impact fees collected. There were numerous increases and decreases in
the other functions, which were offset by one another.
Expenses for governmental activities decreased by $10.7 million (8.3 percent) and transfers out to business-
type activities decreased by $6 thousand. Key positive and negative expense changes, in order of relative
importance, are:
• Education expenses decreased by $3.8 million (6.6 percent). This decrease was primarily the
result of a decrease in the allocation to the Board of Education of $4.4 million for fiscal year 2012.
The decrease in allocations was partially offset by an increase in the expenditures relating to
school related capital projects. In particular, the expenditures for Sudlersville Middle School
increased by $809 thousand in fiscal year 2012 compared to 2011.
• General Government expenses decreased by $2.5 million (16.0 percent), as a result of two
significant factors. First of all, the expenditures relating to retirement incentives decreased by
$1.6 million in fiscal year 2012. In both fiscal year 2012 and 2011, the County offered separate
early retirement incentives to employees who met certain criteria related to age and length of
service. As more employees were eligible and accepted the early retirement in fiscal year 2011,
the costs were higher. In fiscal year 2012, the cost of the retirement incentives was $784
thousand, compared to a cost of $2.4 million for fiscal year 2011. Secondly, spending overall has
decreased due to increased efficiency across all County departments . For general governmental
expenditures, this decrease totaled approximately $910 thousand for fiscal year 2012.
• Public Works expenses decreased by $1.8 million (14.9 percent) due to several factors. The most
significant decrease relates to public works related capital projects, in which the expenditures
decreased by $859 thousand. The main explanation for this decrease is the timing of certain
projects. For fiscal year 2012 compared to 2011, there were material decreases in expenditures
relating to projects such as the County complex, roads paving, and infrastructure for the
Sudlersville Middle School. Secondly, parks expenditures decreased by $711 thousand and
engineering decreased by $348 thousand, as well as decreases in several other public works
departments. As mentioned above, there have been numerous steps taken in order to increase
efficiency throughout the County, such as the retirement incentives in which employees were not
replaced. These decreases are a direct result of the savings associated with those measures.
• Conservation of Natural Resources decreased by $1.0 million (26.5 percent) due to fewer
easement acquisitions in fiscal year 2012 compared to 2011. Specifically, easements acquired in
conservation of natural resources projects decreased by $2 million, while land development
easements acquired in the Rural Legacy, Agricultural Transfer, and Purchase of Development
Rights programs increased by $387 thousand, $297 thousand, and $218 thousand, respectively.
Generally, the timing of easement purchases is affected by the evaluation process of the identified
land, as well as the availability of State funds.
• Economic and Community development decreased by $1.0 million (53.1 percent). Of this
decrease, $287 thousand related to the allocation to the Queen Anne’s County Public Housing
Authority (PHA). Fewer allocations were made in fiscal year 2012 as steps were being initiated in
the process of PHA splitting completely from the County and becoming self supporting.
Secondly, there was $246 thousand less cost in fiscal year 2012 for economic development and
tourism due to cost saving measures taken during the year, as mentioned previously. In addition,
there was a reclassification of expenditures totaling $284 thousand from a general capital project
to a Public Housing Authority capital project.
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Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $12.5 million, $606 thousand, and
$14.5 million, respectively, for fiscal year 2012. The following two charts depict revenues by source and
expenses by service for business-type activities:
Revenues by Source -
Business-Type Activities
For the Year Ended June 30, 2012
Investment
income Miscellaneous
3.01% 9.04%
Operating &
capital grants Charges for
& contributions services
10.58% 77.37%
Expenses by Service -
Business-Type Activities
For the Year Ended June 30, 2012
Airport
Public marinas 10.02%
0.76%
Water and sewer
Parks and 73.62%
recreation
15.60%
Business-type activities decreased the County’s net assets altogether by $1.5 million in fiscal year 2012,
which was $893 thousand less than the prior year’s decrease of $2.3 million. The fiscal year 2012 change
in net assets resulted primarily from:
• Capital grants and contributions decreased by $923 thousand (44.6 percent), from $2.1 million in
fiscal year 2011 to $1.1 million in fiscal year 2012. The net decrease in funding resulted from
changes in several projects due to the timing of the projects. Sewer related capital projects
decreased by $536 thousand, resulting from a large contribution received in fiscal year 2011 for
the Gibson’s Grant development, which was not received in the current year. Also, capital
projects related to the Kent Narrows Marina had a decrease in capital grants and contributions of
$510 thousand, which resulted from the timing of the Waterman’s Rehab project. Offsetting some
of the decrease was an increase in the capital grants and contributions for the Airport’s capital
projects of $245 thousand, compared to the prior fiscal year.
• Operating grants and contributions increased by $111 thousand (186.0 percent), from $60
thousand in fiscal year 2011 to $170 thousand in fiscal year 2012. First, Sewer operations
received a FEMA reimbursement of $56 thousand, which was not received in the prior year.
Secondly, the Airport received $44 thousand in additional funding, due to a grant from the
Maryland Aviation Administration, which was not received in the past.
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• Operating expenses before transfers decreased by $1.7 million (10.4 percent), from $16.2 million
in fiscal year 2011 to $14.5 million in fiscal year 2012, for all business-type activities. Of the total
decrease in expenses, $1.3 million is related to a loss on disposal of capital assets for property
management which occurred in fiscal year 2011. In addition, there was a loss on disposal of
capital assets of $226 thousand due to the retirement of obsolete Sanitary District infrastructure in
fiscal year 2011. Finally, recreation programs operating expenses decreased by $327 thousand for
fiscal year 2012 mainly as a result of the cost saving measures being taken throughout the County
during the year.
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 $50.7 million, compared to $48.7 million for the prior year.
Approximately 21.8 percent of this total ($11.0 million) constitutes unassigned fund balance, which is
available for spending. The total unassigned fund balance of $11.0 million includes $11.2 million of
positive unassigned fund balance for the general fund, which is offset by negative unassigned fund balances
of $158 thousand in the non-major governmental funds. Additional detail on the negative unassigned
balances can be found in Note 15 on page 100.
The nonspendable fund balance, at 11.2 percent of the total fund balance ($5.7 million), is not available for
spending and includes amounts related to inventory and loans receivable. Restricted fund balance of $12.6
million (24.8 percent) includes amounts that can be spent only for specific purposes stipulated by external
sources or legal restrictions. Committed fund balance of $2.7 million (5.4 percent) represents those
amounts that can be used only for the specific purposes of the government’s highest level of decision-
making authority.
The remaining 36.8 percent of fund balance ($18.7 million) 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 $12.8 million, which is an increase of $5.4
million from the fiscal year 2011 balance of $7.4 million. Note that the Roads Board Fund is consolidated
with the General Fund beginning in fiscal year 2012; therefore the fiscal year 2011 Roads Board fund
balance is included in the balance of $7.4 million also, for comparison purposes. In addition, for all
comparisons related to the General Fund, fiscal year 2011 balances will also include Roads Board balances,
in order for accurate comparisons.
Of the total $12.8 million in fund balance, $11.2 million is unassigned, meaning that there are no
constraints on how the funds can be spent. In fiscal year 2011, the County eliminated the requirement to
maintain a Rainy Day Fund, as the fund did not meet the criteria established for Rainy Day Funds under
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. However,
the County Commissioners plan to establish a new Rainy Day Fund in the future that meets the
requirements of GASB Statement No. 54. The fiscal year 2012 financial results will enable the County to
re-establish the Rainy Day Fund at a 7% level. Ordinance No. 12-21 was introduced in October 2012 for
the purpose of re-establishing the rainy day fund, and requires the County to maintain a Rainy Day Fund
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for contingencies in an amount equal to 7% of budgeted general fund operating revenues. The County
Commissioners have not voted on this ordinance yet, but are expected to adopt it during fiscal year 2013.
The increase of $5.4 million in the fund balance of the General Fund was primarily due to two factors. The
first factor is an increase in revenue. Total revenues, including transfers in, for fiscal year 2012 were
$114.2 million, which is $12.8 million more than the total revenues of $101.4 million in fiscal year 2011.
Although all revenue sources fluctuated, there are two noteworthy items to mention. The first is local
income tax revenue, which increased by $6.4 million (21.8 percent) from $29.5 million in fiscal year 2011
to $36.0 million in fiscal year 2012. The County projected an increase of 5.3% based on the rate increase
from 2.85% to 3.2%, effective January 1, 2012. The remaining increase resulted from an increase in the
distributions received from the State. The County does not expect the increased income tax revenue to
continue. Typically, when the State’s income tax distributions are high one year, then the following year is
often lower. The second revenue source to mention is local property tax revenue, which increased by $5.8
million (9.7 percent), from $60.1 million in fiscal year 2011 to $65.9 million in fiscal year 2012. This
increase was the result of an increase in the property tax rate, from $0.7671 to $0.8471 per $100 of assessed
value, effective July 1, 2011.
Expenditures, including transfers out, had a net decrease of $3.4 million, from $112.2 million in fiscal year
2011 to $108.8 million in fiscal year 2012. However, transfers out increased by $4.9 million, from $2.9
million in fiscal year 2011 to $7.8 million in fiscal year 2012. In fiscal year 2012, transfers out included
$5.0 million to the General Capital Projects Fund, which will help build up the fund balance available for
future capital projects. The County plans to move aggressively on several capital projects and will sell
bonds for a portion of the expenditures, but would also like to have fund balance available to cover some of
the costs. There was no such transfer from the General Fund to the General Capital Projects Fund in fiscal
year 2011.
Offsetting the increase in transfers out were decreases in almost all other expenditures. However, there are
a few noteworthy decreases to mention. First, Education expenditures decreased by $4.5 million due to a
decrease in the allocations made to the Board of Education. Secondly, Public Works expenditures
decreased by $1.4 million, due to savings recognized as a result of the cost savings measures taken over the
past few years. Finally, miscellaneous expense decreased by $1.6 million, mainly due to lower costs for the
retirement incentives. Although there were retirement incentives offered in both fiscal years 2011 and
2012, the costs were higher in fiscal year 2011 due to the number of employees eligible. Offsetting a
portion of the decreases were additional costs of $360 thousand for property assessment costs transferred
from the State to the County.
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, 2012, the General Capital Projects Fund has a total fund balance of $26.7 million, compared
to $28.4 million at the end of the prior fiscal year. The $26.7 million in total fund balance is comprised of
$1.3 million of nonspendable fund balance, $6.9 million in restricted fund balance, mainly for unspent bond
proceeds, $1.3 million of fund balance committed for specific projects, and $17.2 million of assigned fund
balance.
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, and are financed mostly
from roads-related capital grants and roads benefit assessments.
As of June 30, 2012, the Roads Capital Projects Fund has a total fund balance of $2.0 million, compared to
$4.1 million at the end of the prior fiscal year. Of this total $2.0 million fund balance, $1.2 million has
been assigned to fund ongoing projects, while $775 thousand has been contributed by local developers and
is committed to fund specific infrastructure improvements.
-23-

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 assets of the Sanitary District Enterprise Funds at the end of fiscal year 2012
amounted to $12.6 million, which is $734 thousand less than the prior year.
Total net assets of the Sanitary District amounted to $72.9 million at the end of fiscal year 2012, which
decreased by $1.5 million when compared to the prior year. A large portion of the decrease relates to the
costs associated with other post-employment benefits (OPEB), which totaled $970 thousand in fiscal year
2012 for the Sanitary District. Another part of the decrease is also due to the transfer of monies, in excess
of receipts, from the Restricted and Debt Service Funds to operating Funds to pay debt service. During
fiscal year 2012, $410 thousand and $528 thousand were transferred in excess of receipts from the
Restricted and Debt Service Funds, respectively.
The unrestricted net assets of the Bay Bridge Airport Enterprise Fund at year end amounted to negative
$420 thousand compared to a negative $389 thousand at the end of the prior fiscal year, reflecting a
decrease of $31 thousand.
Total net assets of the Bay Bridge Airport amounted to $13.5 million at the end of fiscal year 2012, which
increased by $7 thousand when compared to the prior year.
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 events. 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 on pages 107 through 109. The Schedule reports original and final budgets, as well
as the variance between actual events and final budgets.
Original to Final Budget Comparisons. The final expenditure budget for the General Fund, including
transfers out, totaled $111.7 million. Amendments increased spending authority by $4.7 million during
fiscal year 2012, when compared to the original budget of $106.9 million.
Major components of these expenditure budget increases are as follows:
• Budgeted Transfers Out to General Capital Projects increased by $3.0 million during the year. As
mentioned above, there are several capital projects in which the County plans to move
aggressively on, and would like to have fund balance available in the General Capital Projects
fund to cover a portion of the costs.
• Budgeted Miscellaneous Expenditures on behalf of Insurance and Benefit costs increased by $950
thousand. Of the increase in budget authority, $650 thousand related to the costs of retirement
incentive payments. Similar to fiscal year 2011, the County offered a retirement incentive plan in
fiscal year 2012. The costs of this plan were not included in the original budget, and therefore had
to be included in a budget amendment during the year. Secondly, $300 thousand of the increase in
budget authority related to worker’s compensations costs.
• Budgeted Miscellaneous Expenditures on behalf of Other Post-Employment Trust Fund increased
by $489 thousand. In fiscal year 2011, these funds were withdrawn from the trust fund. However,
in fiscal year 2012, the Commissioners approved an amendment to the budget that redirected the
monies back to the trust fund.
-24-

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 $3.1 million. Actual
expenditures, and other financing uses, were less than final budgetary appropriations by $2.8 million. The
net effect of these two events was a positive variance of actual to final budget of $5.9 million.
The most noteworthy differences between final budgeted amounts and actual amounts are summarized as
follows:
Revenues:
• Income tax revenue was $744 thousand more than budgeted (2.1 percent), as County income tax
revenues for fiscal year 2012 were marginally higher than originally anticipated due to increased
distributions from the State.
• Miscellaneous revenue was $1.0 million more than expected (679.2 percent), mainly due to a
credit of $877 thousand received in fiscal year 2012 for the contingent liability related to
healthcare. In prior years, the County was required to maintain a reserve balance for a contingent
healthcare liability, however, the procedure changed and the County is no longer required to
sustain the reserve.
• Transfers In were $1.2 million higher than the final budget (104.9 percent), as a result of the
transfer in from Roads Capital of $1.4 million, which was $1.2 million higher than the budgeted
amount of $253 thousand. The transfers were budgeted in the Roads Capital Projects Fund in prior
years, however, the transfer was not necessary until the current year. The purpose of the transfer
from Roads Capital to the General Fund was to offset the decreased highway user revenue
received for the maintenance of the County roads.
Expenditures:
• Final Budgeted Salaries and Benefits were $29.0 million for the year, while actual costs were
$28.1 million. They were underspent at year-end by $822 thousand (2.8 percent). Of this amount,
the roads department was responsible for $256 thousand of the unspent portion, the sheriff’s office
for $239 thousand, solid waste for $148 thousand, and planning and zoning for $131 thousand.
This was due to the retirement incentive plans offered by the County during this fiscal year and
vacant positions.
• Final Budgeted Other Operating Charges were $82.7 million for the year, while actual costs were
$80.7 million. These costs were lower than budget at year end by $2.0 million (2.4 percent).
Operating Charges include contracted services, supplies, debt service, transfers out, and other
charges.
o Contracted Services were underspent by $375 thousand, largely due to savings by the
detention center ($236 thousand), with the largest savings for medical charges ($170
thousand).
o Supplies were underspent by $172 thousand, largely due to savings by solid waste ($105
thousand), with the largest savings for equipment operation ($39 thousand).
o Other Charges were underspent by $1.1 million, primarily due to roads costs being
underspent by $346 thousand. In addition, emergency services were underspent by $271
thousand, with the entire savings attributable to the Eastern Shore Alliance. Additionally,
pension costs were underspent by $154 thousand as these charges from the State were
delayed until fiscal year 2013. The remaining savings for other charges were spread out
throughout the General Fund, as all departments are continuing the effort of increasing
efficiencies whenever possible.
-25-

o Transfers Out were underspent by $367 thousand, primarily due to savings realized by
the Department of Housing ($120 thousand) and the Marinas Enterprise Fund ($101
thousand), which allowed these Departments to forgo this portion of their appropriation.
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, 2012 amounted to $238.7 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.
Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business Type Activities Total
Capital Assets, Net of Depreciation 2012 2011 2012 2011 2012 2011
Land and Land Improvements $ 84,059,597 $ 81,551,088 $ 14,209,466 $ 14,209,466 $ 98,269,063 $ 95,760,554
Intangible Rights - Easements 786,819 13,390 6,140 6,140 792,959 19,530
Construction in Progress 2,567,685 8,171,028 1,443,420 5,486,372 4,011,105 13,657,400
Buildings 30,741,621 30,780,208 9,891,256 10,459,319 40,632,877 41,239,527
Improvements other than Buildings 6,585,477 4,777,203 8,971,825 4,444,591 15,557,302 9,221,794
Infrastructure 9,892,535 9 ,066,088 47,276,882 48,429,689 57,169,417 57,495,777
Auto, Machinery, and Equipment 8,133,931 9 ,516,953 14,089,266 14,951,492 22,223,197 24,468,445
Total $ 142,767,665 $ 143,875,958 $ 95,888,255 $ 97,987,069 $ 238,655,920 $ 241,863,027
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of depreciation,
decreased by 1.3 percent, or $3.2 million. Of this amount, governmental investment in capital assets
decreased by $1.1 million, while business-type investment in capital assets decreased by $2.1 million.
Changes in the County’s capital assets, with depreciation shown separately, are summarized as follows.
Note that completed projects that were reclassified from construction in progress (CIP) to other asset
accounts during the year net to zero and are reported in the same column.
Governmental Activities
Changes in Capital Assets 2011 Additions Transfers Retirements 2012
Land and Land Improvements $ 81,551,088 $ - $ 2,623,691 $ (115,182) $ 84,059,597
Intangible Rights - Easements 13,390 56,478 716,951 - 786,819
Construction in Progress 8,171,028 2,543,608 (7,908,826) (238,125) 2,567,685
Buildings 39,832,998 55,710 968,051 (278,296) 40,578,463
Improvements other than Buildings 5,892,596 63,467 1,950,466 - 7,906,529
Infrastructure 15,850,015 - 1,234,635 (174,391) 16,910,259
Auto, Machinery, and Equipment 28,108,860 637,966 415,032 (1,721,195) 27,440,663
Total Assets before depreciation 179,419,975 3,357,229 - (2,527,189) 180,250,015
Less Depreciation (35,544,017) (3,438,277) - 1,499,944 (37,482,350)
Total Assets after depreciation $ 143,875,958 $ (81,048) $ - $ (1,027,245) $ 142,767,665
Business-Type Activities
Changes in Capital Assets 2011 Additions Transfers Retirements 2012
Land and Land Improvements $ 14,209,466 $ - $ - $ - $ 14,209,466
Intangible Rights - Easements 6,140 - - - 6,140
Construction in Progress 5,486,372 1,208,907 (4,980,220) (271,639) 1,443,420
Buildings 16,753,162 - 106,365 - 16,859,527
Improvements other than Buildings 6,966,909 - 4,873,855 - 11,840,764
Infrastructure 69,641,202 514,979 - - 70,156,181
Auto, Machinery, and Equipment 23,207,686 270,117 - (1,748) 23,476,055
Total Assets before depreciation 136,270,937 1,994,003 - (273,387) 137,991,553
Less Depreciation (38,283,868) (3,821,178) - 1,748 (42,103,298)
Total Assets after depreciation $ 97,987,069 $ (1,827,175) $ - $ (271,639) $ 95,888,255
-26-

Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
• Land and Land Improvements increased by a net amount of $2.5 million. This increase is
primarily the result of the completion of three projects: (a) the White Marsh Park athletic fields
were completed ($1.6 million); (b) improvements to Nesbit Road, which accesses the Queen
Anne’s Emergency Center in Grasonville, were completed ($426 thousand): and (c) improvements
to Tanyard Road were completed ($553 thousand).
• Intangible Rights - Easements increased by $773 thousand. In total, six easements were acquired
as part of the Conservation Reserve Enhancement Program.
• Construction in Progress (CIP) decreased by a net amount of $5.6 million. The following factors
contributed to this decrease:
Costs reclassified from Construction in Progress include: (a) the White Marsh Park athletic fields,
parking, and other site improvements ($2.7 million); (b) infrastructure improvements at the Queen
Anne’s Emergency Center site ($1.6 million); (c) acquisition of conservation easements ($717
thousand); (d) Tanyard Road improvements ($691 thousand); and (e) Railroad avenue building
renovations ($607 thousand).
Major additions to Construction in Progress include: (a) construction of the Island Creek Road
Bridge ($1.2 million); (b) infrastructure improvements at the Sudlersville Middle School site
($175 thousand); (c) improvements to Carmichael Road ($147 thousand); and (d) infrastructure
improvements in the Matapeake Business Park ($115 thousand).
• Buildings increased by $745 thousand. This increase resulted primarily from the completion of
the following two projects: (a) Railroad Avenue building renovations ($607 thousand); and (b)
construction of the animal quarantine facility ($116 thousand).
• Improvements Other than Buildings increased by $2 million. The completion of the following site
improvement projects contributed to this increase: (a) White Marsh Park permeable pavers and
drive ($822 thousand); (b) 4H Parking lot ($428 thousand); (c) Health Department parking ($260
thousand); (d) Kirwan Creek Watershed Improvements ($214 thousand); and (e) Bio-swale
drainage ditch ($101 thousand).
• Infrastructure increased by $1.1 million as a result of infrastructure improvements at the Queen
Anne’s Emergency Center site in Grasonville.
• Auto, Machinery and Equipment decreased by $668 thousand. The following factors culminated
in this change:
Additions of $1.1 million include the following: (a) the Sheriff’s department acquired replacement
law enforcement vehicles ($244 thousand): (b) solar panels installed at the detention center ($204
thousand); (c) emergency vehicle acquired by the emergency services department ($185
thousand); (d) vehicles and other wheeled equipment utilized by parks & recreation ($113
thousand); (e) irrigation equipment at White Marsh Park ($98 thousand); and (f) heat pump
replacement at various county locations ($82 thousand).
Retired assets of $1.7 million include the following, the majority of which were fully depreciated:
(a) obsolete radio equipment ($692 thousand); (b) retirement of Aging department transit vehicles
($339 thousand); (c) obsolete computer software and hardware ($245 thousand); (d) fuel system
no longer in service at the public works building ($126 thousand); and (e) solid waste disposal
equipment ($92 thousand).
-27-

Noteworthy capital asset events during the current fiscal year for business-type activities included the
following:
• Construction in Progress decreased by $4.0 million. The following factors contributed to this
decrease:
Costs reclassified from construction in progress to other asset classes include: (a) runway
improvements at the Bay Bridge Airport ($2.6 million); and (b) Kent Narrows marina
rehabilitation ($2.2 million).
Additions to construction in progress include: (a) runway apron at the Bay Bridge Airport ($341
thousand); and (b) Cox Creek Sewer main ($508 thousand).
• Improvements Other than Buildings increased by $4.9 million. This increase resulted from: (a) the
completion of runway improvements at the Bay Bridge Airport ($2.7 million); and (b) the Kent
Narrows marina rehabilitation ($2.2 million).
• Infrastructure increased by $515 thousand as a result of various water and sewer infrastructure
contributed by commercial developers ($348 thousand), as well as construction of the
Bridgepointe Magothy Aquifer Well ($167 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, capital leases, other post-employment benefit obligations, and compensated absence obligations
of $141.5 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 $141.5 million in debt, $22.3 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 $4.4 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 10 on pages 87 to 89 for
restricted assets and subsequent year debt service obligations.
Debt activities are summarized as follows:
Bonded Debt, Loans,
Other Post-Employment Benefit Obligation, Governmental Activities Business Type Activities Total
and Compensated Absences 2012 2011 2012 2011 2012 2011
Bonds, Notes, Premiums and
Deferred Debt Costs $ 98,016,519 $ 103,916,450 $ 18,175,502 $ 20,150,999 $ 116,192,021 $ 124,067,449
Other Post-Employment Benefit Obligation 19,003,721 13,884,281 3,826,257 2,647,180 22,829,978 16,531,461
Compensated Absences 2,165,466 2,162,071 309,086 339,762 2,474,552 2,501,833
Total Long-term Debt $ 119,185,706 $ 119,962,802 $ 22,310,845 $ 23,137,941 $ 141,496,551 $ 143,100,743
During the 2012 fiscal year, the County’s total net debt decreased by $1.6 million (1.1 percent). Of this
amount, governmental debt decreased by $777 thousand (0.65 percent), while business-type debt
decreased by $827 thousand (3.6 percent). The County issued 2012 refunding bonds totaling $8.0
million. The County also added bond debt of $1.4 million in fiscal year 2012, which relates to the
Queen Anne’s County Public Housing Authority. In fiscal years 2012 and prior, the Housing Authority,
operating as a component unit of the County, had recorded bond debt on its books related to its
Foxxtown Apartment Community and Scattered Housing Program. In fiscal year 2012, Queen Anne’s
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County reached an agreement with the Queen Anne’s County Public Housing Authority whereby the
two parties determined that the Housing Authority would become a separate entity from the County
effective July 1, 2012. In light of the separation, and because the County is ultimately liable for the
bond debt, the County has recorded a liability (and a corresponding receivable due from the Housing
Authority) on its books in the amount of $1,360,643, which represents the Housing Authority’s
indebtedness to the County with respect to the bonds. In addition, total Other Post-Employment Benefit
Obligations increased by $6.3 million. Offsetting these increases 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, pages 77 to 86, 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, unless authorized under specific legislation. Currently, approximately $7.1 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.
During fiscal year 2012, Queen Anne’s County Government received an “AA+” bond rating from Fitch
Rating Service and an “Aa2” bond rating from Moody’s Investors Service.
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 2013 fiscal year:
• Property assessments are projected to decrease by 0.73 percent over the previous year, based on
State Assessment Office values used to compute the Constant Yield rate.
• Income tax revenue is projected to decrease to $32.4 million in fiscal year 2013, which is a 9.8%
decrease over actual receipts for fiscal year 2012. The decrease is a result of the County receiving
high distributions from the State in fiscal year 2012, which are not anticipated for fiscal year 2013.
The following are a few of the highlights from the fiscal year 2013 budget:
o Eliminate furloughs for County employees;
o Other Post-Employment Benefit funded in accordance with ten year plan; and
o $1 million included in capital budget for design of Stevensville Middle School
renovations.
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 Departments, Finance, Financial Reports and
Forms, Link to 2012 Comprehensive Annual Financial Report (CAFR)).
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-30-

Basic Financial Statements
-31-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
JUNE 30, 2012
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 38,596,526 $ 10,661,321 $ 49,257,847
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 460,236 - 460,236
Accounts and Loans Receivable (Net) 4,955,383 530,538 5,485,921
Special Assessments (Net) 1,054,352 - 1,054,352
Internal Balances 803,131 (803,131) -
Due from Primary Government - - -
Due from Component Units 1,360,643 - 1,360,643
Due from Other Governments 10,765,100 402,210 11,167,310
Bond Interest Reimbursement Receivable - Build America Bond 108,510 4,442 112,952
Inventories 555,215 447,913 1,003,128
Prepaid Items - 20,000 20,000
Restricted Assets:
Equity in Pooled Cash and Investments 6,613,921 9,965,766 16,579,687
Investments - - -
Accounts Receivable (Net) - 51,207 51,207
Special Assessments Receivable (Net) - 2,102,580 2,102,580
Capital Assets:
Nondepreciable Assets 87,414,101 15,659,026 103,073,127
Depreciable Assets, Net 55,353,564 80,229,229 135,582,793
Total Assets 208,040,682 119,271,101 327,311,783
LIABILITIES
Accounts Payable and Other Current Liabilities 3,858,207 627,447 4,485,654
Accrued Interest Payable 974,294 106,797 1,081,091
Due to Component Units 1,129,417 - 1,129,417
Due to Other Governmental Agencies 399,046 - 399,046
Unearned Revenue 3,173,050 742,277 3,915,327
Escrow Deposits - 50,440 50,440
Liabilities Payable from Restricted Assets:
Unearned Revenue - 2,025,130 2,025,130
Noncurrent Liabilities:
Due within One Year 8,459,644 2,111,979 10,571,623
Due in More than One Year 110,726,062 20,198,866 130,924,928
Total Liabilities 128,719,720 25,862,936 154,582,656
NET ASSETS
Invested in Capital Assets, Net of Related Debt 117,436,984 77,891,395 195,328,379
Restricted for:
Conservation of Natural Resources 2,049,297 - 2,049,297
Economic/Community Development 1,743,364 - 1,743,364
General Government 833,567 - 833,567
Education 777,787 - 777,787
Public Safety 573,279 - 573,279
Miscellaneous 4,747 - 4,747
Debt Service - 2,760,648 2,760,648
Capital Projects - 753,300 753,300
Other Purposes - - -
Unrestricted Net Assets (Deficit) (44,098,063) 12,002,822 (32,095,241)
Total Net Assets $ 79,320,962 $ 93,408,165 $ 172,729,127
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
JUNE 30, 2012
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE HOUSING
EDUCATION LIBRARY AUTHORITY
$ - $ - $ 2,105,605
12,433,628 700,506 341,899
- - -
428,902 56,315 9,357
- - -
- - -
1,129,417 - -
- - -
921,995 - 36,099
- - -
55,360 - -
1,160 16,472 54,574
- 654,383 -
- - 100,472
- - -
- - -
10,014,352 29,850 1,346,974
145,490,790 968,708 17,953,905
170,475,604 2,426,234 21,948,885
10,061,958 38,365 78,533
- - 20,199
- - 1,360,643
166,839 - -
787,880 - 5,458
- - 100,117
- - -
266,803 - 40,925
21,087,426 791,664 1,461,298
32,370,906 830,029 3,067,173
155,505,142 998,558 16,873,591
- - -
- - -
- - -
- - -
- - -
- - -
- - -
865,750 - 1,946,336
312,170 10,500 -
( 18,578,364) 587,147 61,785
$ 138,104,698 $ 1,596,205 $ 18,881,712
The accompanying notes to the basic financial statements are an integral part of this statement.
-33-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2012
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 13,421,531 $ 1,081,808 $ 742,205 $ 116,710 $ 1,940,723
Public Safety 25,469,721 1,320,647 1,113,018 191,223 2,624,888
Public Works 10,373,286 1,107,426 488,027 5 41,887 2,137,340
Health 1,642,723 - - - -
Social Services 4,526,166 71,655 2,076,096 1 8,691 2,166,442
Education 53,693,309 1,169,425 - - 1,169,425
Library 1,302,163 - - - -
Conservation of Natural Resources 2,802,337 98,593 36,872 998,757 1,134,222
Economic/Community Development 887,837 159,492 245,143 8 1,867 486,502
Interest and Fiscal Charges 4,196,072 - - - -
Total Governmental Activities 118,315,145 5,009,046 4,701,361 1 ,949,135 11,659,542
Business-type Activities
Water and Sewer 10,711,211 7,977,667 55,728 347,573 8,380,968
Parks & Recreation 2,269,933 1,501,550 52,915 2 8,680 1,583,145
Public Marinas 110,884 102,290 14,183 7 8,314 194,787
Airport 1,457,087 58,589 47,412 693,162 799,163
Total Business-type Activities 14,549,115 9,640,096 170,238 1 ,147,729 10,958,063
Total Primary Government $ 132,864,260 $ 14,649,142 $ 4,871,599 $ 3,096,864 $ 22,617,605
COMPONENT UNITS
Board of Education $ 99,566,364 $ 1,797,385 $ 12,006,824 $ - $ 13,804,209
Free Library 1,924,507 9,424 227,319 - 236,743
Housing Authority 2,976,224 1,277,406 1,292,717 5 5,426 2,625,549
Total Component Units $ 104,467,095 $ 3,084,215 $ 13,526,860 $ 55,426 $ 16,666,501
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Gain on Sale of Capital Assets
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Assets
Total Net Assets - Beginning of Year
Total Net Assets - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE HOUSING
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY AUTHORITY
$ (11,480,808) $ - $ ( 11,480,808) $ - $ - $ -
(22,844,833) - (22,844,833) - - -
(8,235,946) - (8,235,946) - - -
(1,642,723) - (1,642,723) - - -
(2,359,724) - (2,359,724) - - -
(52,523,884) - (52,523,884) - - -
(1,302,163) - (1,302,163) - - -
(1,668,115) - (1,668,115) - - -
(401,335) - (401,335) - - -
(4,196,072) - (4,196,072) - - -
(106,655,603) - (106,655,603) - - -
- (2,330,243) (2,330,243) - - -
- (686,788) (686,788) - - -
- 83,903 83,903 - - -
- (657,924) (657,924) - - -
- (3,591,052) (3,591,052) - - -
$ (106,655,603) $ (3,591,052) $ ( 110,246,655) $ - $ - $ -
- - - (85,762,155) - -
- - - - (1,687,764) -
- - - - - (350,675)
- - - (85,762,155) (1,687,764) (350,675)
65,937,415 - 65,937,415 - - -
34,028,234 - 34,028,234 - - -
183,634 - 183,634 - - -
3,809,545 - 3,809,545 - - -
468,382 - 468,382 - - -
1,266,716 - 1,266,716 - - -
- - - 89,861,175 1,415,816 31,198
126,650 374,665 501,315 18,797 5,196 2,633
27,627 - 27,627 - - -
1,254,255 1,127,590 2,381,845 300,465 97,337 -
(605,996) 605,996 - - - -
106,496,462 2,108,251 108,604,713 90,180,437 1,518,349 33,831
(159,141) (1,482,801) (1,641,942) 4,418,282 (169,415) (316,844)
79,480,103 94,890,966 174,371,069 133,686,416 1,765,620 19,198,556
$ 79,320,962 $ 93,408,165 $ 172,729,127 $ 138,104,698 $ 1,596,205 $ 18,881,712
The accompanying notes to the basic financial statements are an integral part of this statement.
-35-

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2012
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 10,598,140 $ 20,007,705 $ 1,485,988 $ 6,504,693 $ 3 8,596,526
Receivables
Taxes Receivable (Net) 263,362 196,874 - - 460,236
Accounts and Loans Receivable 146,398 1 ,350 17,063 4,790,572 4,955,383
Special Assessments (Net) - - 416,248 638,104 1,054,352
Due from Other Governments 9,589,175 3 0,388 691,074 454,463 1 0,765,100
Due from Other Funds 1,015,547 6 6,747 - - 1,082,294
Loans Receivable - Component Unit - 1,360,643 - - 1,360,643
Inventory 555,215 - - - 555,215
Restricted
Restricted Equity in Pooled Cash - 6,613,921 - - 6,613,921
Total Assets $ 22,167,837 $ 28,277,628 $ 2,610,373 $ 12,387,832 $ 6 5,443,670
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 2,918,649 $ 325,586 $ 146,559 $ 395,966 $ 3 ,786,760
Due to Other Funds - - - 279,163 279,163
Due to Component Units - 1,129,417 - - 1,129,417
Due to Other Governmental Agencies - - - 399,046 399,046
Deferred Revenue 6,450,094 8 0,195 476,216 2,101,431 9,107,936
Total Liabilities 9,368,743 1,535,198 622,775 3,175,606 1 4,702,322
Fund Balances
Nonspendable 555,215 1,360,643 - 3,775,381 5,691,239
Restricted 340,670 6,866,782 - 5,388,510 1 2,595,962
Committed 695,944 1,279,836 774,913 - 2,750,693
Assigned - 17,235,169 1,212,685 206,163 1 8,654,017
Unassigned 11,207,265 - - (157,828) 1 1,049,437
Total Fund Balances 12,799,094 26,742,430 1,987,598 9,212,226 5 0,741,348
Total Liabilities and Fund Balances $ 22,167,837 $ 28,277,628 $ 2,610,373 $ 12,387,832 $ 6 5,443,670
The accompanying notes to the basic financial statements are an integral part of this statement.
-36-

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2012
Total Fund Balance - Governmental Funds $ 5 0,741,348
Amounts reported for Governmental activities in the Statement of Net Assets
are different because:
Receivables not included in the governmental funds because they relate to debt.
A portion of the County’s 2009 Bond offering was issued using
Build America Bonds. As an incentive to use these bonds, the Federal
government offered an interest reimbursement grant, which offsets the
County's debt service for interest expense. At year end, a receivable is booked
for the interest reimbursement due, but not yet received, which relates to the
interest expense not paid yet.
ADD Bond Interest Reimbursement Receivable - Build America Bond 108,510
Capital assets used in governmental fund activities are not financial resources
and therefore are not reported in the funds.
ADD Nondepreciable capital assets
Land and Land Improvements $ 43,272,705
Infrastructure 4 1,573,711
Construction in Progress 2 ,567,685 87,414,101
ADD Depreciable capital assets
Buildings 4 0,578,463
Improvements other than Buildings 7,906,529
Machinery and Equipment 18,307,458
Automobiles and Trucks 9,133,205
Infrastructure 1 6,910,259
Less Accumulated depreciation (37,482,350) 55,353,564
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.
ADD Property Taxes deferred in governmental funds 97,468
ADD Income Taxes deferred in governmental funds 4,271,834
ADD Loans receivable deferred in governmental funds 1,565,584 5,934,886
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.
SUBTRACT Accrued Interest Payable (974,294)
SUBTRACT Liability for Retirement Incentive (71,447)
SUBTRACT Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,251,413)
Bonds and Notes Payable (7,208,231) (8,459,644)
SUBTRACT Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (19,003,721)
Accrued Compensated Absences (914,053)
Bonds and Notes Payable (90,808,288) (110,726,062)
Total Net Assets - Governmental Activities $ 79,320,962
The accompanying notes to the basic financial statements are an integral part of this statement.
-37-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 65,881,777 $ - $ - $ 3 7,055 $ 6 5,918,832
Local Income Tax 35,969,879 - - - 3 5,969,879
Admission and Amusement Taxes 183,634 - - - 1 83,634
Recordation Taxes 2,553,755 380,542 - 8 75,248 3 ,809,545
Hotel Taxes 468,382 - - - 4 68,382
County Transfer Taxes - 1,266,716 - - 1 ,266,716
State Shared Taxes 269,363 - - 3 6,872 3 06,235
Licenses and Permits 877,365 - - - 8 77,365
Intergovernmental 1,949,802 829,559 4,722 3 ,083,128 5 ,867,211
Bond Interest Reimbursement - Build America Bond 432,212 - - - 4 32,212
Charges for Current Services 2,015,949 - 67,815 1 ,825,234 3 ,908,998
Fines and Forfeitures 41,627 - - 1 81,056 2 22,683
Investment Income 56,439 17,078 28,089 2 5,044 1 26,650
Donations 8,009 - - 3 8,323 4 6,332
Miscellaneous 1,198,705 1,813 590 5 3,147 1 ,254,255
Total Revenues 111,906,898 2,495,708 101,216 6 ,155,107 1 20,658,929
EXPENDITURES
Current
General Government 8,879,396 279,661 - 1 2,773 9 ,171,830
Public Safety 20,573,121 - - 4 11,956 2 0,985,077
Public Works 7,444,753 287,881 592 - 7 ,733,226
Health 1,604,462 - - - 1 ,604,462
Social Services 253,854 - - 3 ,279,168 3 ,533,022
Education 45,226,524 8,528,973 - - 5 3,755,497
Library 1,277,993 - - - 1 ,277,993
Conservation of Natural Resources 529,080 199,902 - 2 ,065,280 2 ,794,262
Economic/Community Development 490,021 (268,124) - 5 36,192 7 58,089
Intergovernmental 594,777 - - - 5 94,777
Miscellaneous 3,109,925 - - - 3 ,109,925
Capital Outlay - 1,339,937 1,353,871 6 2,141 2 ,755,949
Debt Service
Principal 6,931,284 - - 1 64,023 7 ,095,307
Debt Issuance Costs - 162,021 - - 1 62,021
Interest and Fiscal Charges 4,102,684 - - 1 4,255 4 ,116,939
Total Expenditures 101,017,874 10,530,251 1,354,463 6 ,545,788 1 19,448,376
Excess of Revenues Over (Under) Expenditures 10,889,024 (8,034,543) (1,253,247) (390,681) 1 ,210,553
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 8,010,000 - - 8 ,010,000
Bond Premiums - 713,235 - - 7 13,235
Payments to Bond Refunding Agent - (8,557,455) - - (8,557,455)
Proceeds of Capital Asset Disposals 24,030 - - 2 3,366 4 7,396
Insurance Proceeds 9,407 - - 2 ,224 1 1,631
Transfers In 2,289,535 5,024,831 600,000 1 ,721,515 9 ,635,881
Transfers Out ( 7,829,993) (128,032) (1,420,413) (991,471) (10,369,909)
Other Financing Sources (Uses)
Before Special Item ( 5,507,021) 5,062,579 (820,413) 7 55,634 (509,221)
Special Item - 1,360,643 - - 1 ,360,643
Net Increase (Decrease) in Fund Balances 5,382,003 (1,611,321) (2,073,660) 3 64,953 2 ,061,975
Fund Balances, July 1 7,417,091 28,353,751 4,061,258 8 ,847,273 4 8,679,373
Fund Balances, June 30 $ 12,799,094 $ 26,742,430 $ 1,987,598 $ 9 ,212,226 $ 5 0,741,348
The accompanying notes to the basic financial statements are an integral part of this statement.
-38-

-39-

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, 2012
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ 2 ,061,975
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures are reported in Governmental Funds during the year. However, in the Statement
of Activities, costs for capital asset purchases are allocated over the estimated useful lives of those
assets and reported as depreciation expense over a number of years. Therefore, the change in assets
differs from the change in fund balance by the amount of capital asset purchases that will be capitalized
and depreciated over a number of years, less the offsetting depreciation expense for the current year.
Proceeds received on disposal of capital assets are reported in Governmental Funds as current financial
resources. In the Statement of Activities, only the gain or (loss) realized on disposal of capital assets is
reported. Thus, the change in net assets differs from the change in fund balance by the cost of capital
assets sold, net of accumulated depreciation (i.e., book value).
In addition, developer contributions of capital assets (primarily infrastructure) are not reported in Governmental
Funds because they do not represent current financial resources available to cover this year's expenditures.
Thus, the change in net assets differs from the change in fund balance by the value of capital assets received.
Donated Capital Assets are not reported in Governmental Funds because they are not current financial resources.
However, in the Statement of Activities, they are recognized as capital contributions and as capital assets.
The following is a summary of the net increase in capital assets, which is detailed in Note 6 - Capital Assets - Primary Government.
ADD capital assets acquired as capital outlay $ 605,809
ADD capital assets resulting from force-in-kind expenditures 57,612
ADD capital assets resulting from general capital projects 1,339,937
ADD capital assets resulting from roads capital projects 1,353,871
SUBTRACT book value of disposed capital assets, net of accumulated depreciation (1,027,245)
SUBTRACT current year depreciation expense (3,438,277)
Net Increase in Capital Assets ( 1,108,293)
Receivables not included in the governmental funds because they relate to debt.
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use
these bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s debt
service for interest expense. Therefore, at year end, a receivable is booked for the interest reimbursement due, but
not yet received.
ADD current year's bond interest reimbursement receivable - Build America Bond 108,510
SUBTRACT prior year's bond interest reimbursement receivable - Build America Bond (110,004)
( 1,494)
SUBTRACT liability for retirement incentive ( 71,447)
The accompanying notes to the basic financial statements are an integral part of this statement.
CONTINUED
-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, 2012
(CONTINUED)
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 revenue increased or (decreased) relative to the prior year is as follows:
ADD current year's Property Tax Deferred Revenue $ 97,468
SUBTRACT prior year's Property Tax Deferred Revenue (78,885)
$ 18,583
ADD current year's Income Tax Deferred Revenue 4,271,834
SUBTRACT prior year's Income Tax Deferred Revenue (6,213,478)
( 1,941,644)
Issuance of long-term debt (e.g., bonds, notes, and capital 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 Assets, issuing debt increases long term liabilities, while repayment reduces
those liabilties.
ADD retirements and repayments made on long term debt
General Bonds Payable 1 5,453,937
Notes Payable 1 81,376
Bond Premiums, Net of Issuance Costs 6 5,683
Deferred Refunding Costs (170,483)
Capital Leases 5 4,089
1 5,584,602
SUBTRACT proceeds of 2012 Refunding Bond (8,010,000)
SUBTRACT PHA debt added to County's books (1,360,643)
SUBTRACT Bond premium, net of issuance costs for 2012 bond (651,482)
ADD Deferred Refunding for 2012 Bond 3 37,454
SUBTRACT College reimbursement received (246,063)
ADD County's allocation to College for debt 6 2,188
5,716,056
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
financial resources and are not reported as expenditures in the Governmental Funds. The net amount
by which these accruals increased or (decreased) over the prior period is as follows:
ADD prior year's Accrued Interest Payable 1,264,252
SUBTRACT current year's Accrued Interest Payable (974,294)
289,958
ADD prior year's Accrued Compensated Absences 2 ,162,071
SUBTRACT current year's Accrued Compensated Absences (2,165,466)
( 3,395)
ADD prior year's Accrued Other Post Employment Benefit Obligation 13,884,281
SUBTRACT current year's Accrued Other Post Employment Benefit Obligation (19,003,721)
( 5,119,440)
Change in Net Assets - governmental activities, per Statement of Activities $ (159,141)
The accompanying notes to the basic financial statements are an integral part of this statement.
-41-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
ENTERPRISE FUNDS
JUNE 30, 2012
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 6,452,217 $ 3,162,106 $ -
Accounts Receivable (Net) 301,393 1 72,073 -
Due from Other Funds 421,145 - -
Due from Other Governments - - -
Bond Interest Reimbursement Receivable - Build America Bond - - -
Inventories 382,516 - -
Prepaid Expenses - - -
Restricted
Restricted Equity in Pooled Cash - - 6,721,202
Restricted Accounts Receivable (Net) - - 10,778
Total Current Assets 7,557,271 3,334,179 6,731,980
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 9 85,475
Capital Assets
Intangible Rights - 6,140 -
Land, Improved and Unimproved 816,331 - -
Buildings and Improvements to Buildings 14,265,248 1 80,203 -
Improvements Other Than Buildings 1,615,474 1 28,152 -
Automotive Equipment 977,486 2 03,387 -
Equipment 2 0,062,554 1,156,496 -
Furniture and Fixtures 47,216 6,228 -
Infrastructure Improvements 49,218,765 20,937,416 -
Construction in Progress 782,696 - -
Capital Assets before Depreciation 87,785,770 22,618,022 -
Less Accumulated Depreciation (30,964,511) (6,899,672) -
Total Capital Assets, Net of
Accumulated Depreciation 5 6,821,259 15,718,350 -
Total Noncurrent Assets 56,821,259 15,718,350 9 85,475
Total Assets 6 4,378,530 19,052,529 7,717,455
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 269,115 65,337 -
Accrued Interest Payable 75,143 3,461 -
Escrow Deposits 30,459 - -
Due to Other Funds - - -
Unearned Revenue 678,223 - -
Current Portion of Compensated Absences 96,710 38,379 -
Current Portion of Bonds/Notes Payable 1,434,777 2 86,226 -
Payable from Restricted Assets
Current Portion of Bonds Payable - - -
Total Current Liabilities 2,584,427 3 93,403 -
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 70,639 28,033 -
Other Post-Employment Benefit Obligation 2,244,079 7 00,250 -
Bonds/Notes Payable 13,657,924 3 13,057 -
Liabilities Associated with Restricted Assets
Unearned Revenue - - 9 85,475
Total Noncurrent Liabilities 15,972,642 1,041,340 9 85,475
Total Liabilities 1 8,557,069 1,434,743 9 85,475
NET ASSETS
Invested in Capital Assets, Net of Related Debt 41,728,558 15,119,067 -
Restricted for:
Debt Service - - -
Capital Projects - - 7 53,300
Unrestricted 4,092,903 2,498,719 5,978,680
Total Net Assets $ 45,821,461 $ 17,617,786 $ 6,731,980
The accompanying notes to the basic financial statements are an integral part of this statement.
-42-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
ENTERPRISE FUNDS
JUNE 30, 2012
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 9,614,323 $ - $ 1,046,998 $ 10,661,321
- 473,466 54,080 2,992 5 30,538
- 421,145 - - 4 21,145
- - 386,108 16,102 4 02,210
- - 7 02 3,740 4,442
- 382,516 58,160 7,237 4 47,913
- - - 20,000 20,000
3,244,564 9,965,766 - - 9,965,766
40,429 51,207 - - 51,207
3,284,993 20,908,423 499,050 1,097,069 22,504,542
1,117,105 2,102,580 - - 2,102,580
- 6 ,140 - - 6,140
- 816,331 10,670,168 2,722,967 14,209,466
- 14,445,451 1,233,204 1,180,872 16,859,527
- 1,743,626 4,707,037 5,390,101 11,840,764
- 1,180,873 59,470 83,445 1,323,788
- 21,219,050 47,752 8 03,019 22,069,821
- 53,444 - 29,002 82,446
- 70,156,181 - - 70,156,181
- 782,696 504,571 1 56,153 1,443,420
- 110,403,792 17,222,202 10,365,559 137,991,553
- (37,864,183) (2,665,188) (1,573,927) ( 42,103,298)
- 72,539,609 14,557,014 8,791,632 95,888,255
1,117,105 74,642,189 14,557,014 8,791,632 97,990,835
4,402,098 95,550,612 15,056,064 9,888,701 120,495,377
- 334,452 208,965 84,030 6 27,447
2,446 81,050 8,681 17,066 1 06,797
- 30,459 9,130 10,851 50,440
4 21,145 421,145 477,846 3 25,285 1,224,276
- 678,223 - 64,054 7 42,277
- 135,089 3,134 40,394 1 78,617
- 1,721,003 42,725 1 17,788 1,881,516
51,846 51,846 - - 51,846
4 75,437 3,453,267 750,481 6 59,468 4,863,216
- 98,672 2,292 29,505 1 30,469
- 2,944,329 209,455 6 72,473 3,826,257
1 26,796 14,097,777 560,457 1,583,906 16,242,140
1,039,655 2,025,130 - - 2,025,130
1,166,451 19,165,908 772,204 2,285,884 22,223,996
1,641,888 22,619,175 1,522,685 2,945,352 27,087,212
- 56,847,625 13,953,832 7,089,938 77,891,395
2,760,210 2,760,210 - 438 2,760,648
- 753,300 - - 7 53,300
- 12,570,302 (420,453) (147,027) 12,002,822
$ 2,760,210 $ 72,931,437 $ 1 3,533,379 $ 6,943,349 $ 93,408,165
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 FUND NET ASSETS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 4,936,979 $ 2 ,077,587 $ 540,307
Intergovernmental 55,728 - -
Bond Interest Reimbursement - Build America Bond - - -
Material Sales 898 5 ,508 -
Miscellaneous Revenues 211,899 1 56,214 -
Total Operating Revenues 5,205,504 2 ,239,309 540,307
OPERATING EXPENSES
Cost of Sales and Services
Collection 2,213,142 - -
Distribution - 9 9,487 -
Treatment 1,184,851 1 ,082,208 -
Shop 158,989 1 16,818 -
Airport - - -
Parks and Recreation - - -
Public Marinas - - -
Total Cost of Sales and Services 3,556,982 1 ,298,513 -
Administration and Inspection 679,921 4 77,001 -
Other Post-Employment Benefit Contributions 737,242 2 32,335 -
Depreciation 2,902,419 4 93,513 -
Total Operating Expenses 7,876,564 2 ,501,362 -
Operating Income (Loss) ( 2,671,060) (262,053) 540,307
NON-OPERATING REVENUES (EXPENSES)
Investment Income 105,846 6 0,590 106,743
Interest Expense ( 270,350) (49,544) -
Gain (Loss) on Disposal of Capital Assets 2,866 - -
Total Non-Operating Revenues (Expenses) ( 161,638) 1 1,046 106,743
Income (Loss) Before Contributions and Transfers ( 2,832,698) (251,007) 647,050
Capital Contributions, Fees and Grants 215,262 1 32,311 -
Transfers In 1,715,224 4 58,361 -
Transfers Out - - (1,056,565)
Net Transfers In (Out) 1,715,224 4 58,361 (1,056,565)
Change in Net Assets ( 902,212) 3 39,665 (409,515)
Total Net Assets - Beginning of Year 46,723,673 1 7,278,121 7,141,495
Total Net Assets - End of Year $ 45,821,461 $ 1 7,617,786 $ 6,731,980
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 FUND NET ASSETS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 4 22,794 $ 7 ,977,667 $ 58,589 $ 1,603,840 $ 9,640,096
- 5 5,728 44,623 52,246 152,597
- - 2,789 14,852 17,641
- 6 ,406 420,990 49,393 476,789
- 3 68,113 180,692 101,996 650,801
4 22,794 8 ,407,914 707,683 1,822,327 10,937,924
- 2 ,213,142 - - 2,213,142
- 9 9,487 - - 99,487
- 2 ,267,059 - - 2,267,059
- 2 75,807 - - 275,807
- - 976,295 - 976,295
- - - 1,906,759 1,906,759
- - - 29,199 29,199
- 4 ,855,495 976,295 1,935,958 7,767,748
- 1 ,156,922 - - 1,156,922
- 9 69,577 43,317 166,186 1,179,080
- 3 ,395,932 233,963 191,283 3,821,178
- 1 0,377,926 1,253,575 2,293,427 13,924,928
4 22,794 (1,970,012) (545,892) ( 471,100) (2,987,004)
1 01,154 3 74,333 332 - 374,665
(16,257) (336,151) (21,074) ( 87,390) (444,615)
- 2 ,866 (182,438) - (179,572)
8 4,897 4 1,048 (203,180) ( 87,390) (249,522)
5 07,691 (1,928,964) (749,072) ( 558,490) (3,236,526)
- 3 47,573 693,162 106,994 1,147,729
1 ,056,565 3 ,230,150 63,079 461,506 3,754,735
(2,092,174) (3,148,739) - - (3,148,739)
(1,035,609) 8 1,411 63,079 461,506 605,996
(527,918) (1,499,980) 7,169 10,010 (1,482,801)
3 ,288,128 7 4,431,417 13,526,210 6,933,339 94,890,966
$ 2 ,760,210 $ 7 2,931,437 $ 13,533,379 $ 6,943,349 $ 93,408,165
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, 2012
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers and users $ 4,980,775 $ 2,081,862 $ 539,389
Receipts from other operating sources 268,525 161,722 -
Receipts from bond interest reimbursement - Build America Bond - - -
Payments to suppliers (1,808,422) (821,023) -
Payments to employees and on behalf of employees (2,422,554) (945,249) -
Net Cash Provided (Used) by Operating Activities 1,018,324 477,312 539,389
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1,715,224 458,361 -
Receipts (payments) from interfund loans (140,463) - -
Transfers to other funds - - (1,056,565)
Principal paid on interfund loans - - -
Net Cash Provided (Used) by Noncapital Financing Activities 1,574,761 458,361 (1,056,565)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds (loss) from the disposition of capital assets 2,866 - -
Receipts from capital grants - - -
Principal paid on capital debt (1,432,286) (459,763) -
Receipts from bonds, including premiums, net of issuance costs - - -
Interest paid on capital debt (282,938) (39,423) -
Acquisition and construction of capital assets (681,120) (250,584) -
Net Cash (Used) by Capital and Related Financing Activities (2,393,478) (749,770) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 105,846 60,590 106,743
Net Increase (Decrease) in Cash and Cash Equivalents 305,453 246,493 (410,433)
Balances - Beginning of the year 6,146,764 2,915,613 7,131,635
Balances - End of the year $ 6,452,217 $ 3,162,106 $ 6,721,202
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (2,671,060) $ (262,053) $ 540,307
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 2,902,419 493,513 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net 28,081 4,275 (918)
Special assessments receivable, net - - 213,728
Operating grants receivable - - -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses 14,565 - -
Vendor accounts payable 8,094 15,882 -
Compensated absences (16,732) (6,640) -
Other Post-Employment Benefit Obligation 737,242 232,335 -
Escrow deposits payable 2,319 - -
Deferred revenue collected in advance 13,396 - (213,728)
Net Cash Provided (Used) by Operating Activities $ 1,018,324 $ 477,312 $ 539,389
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 215,262 $ 132,311 $ -
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, 2012
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 451,732 $ 8,053,758 $ 117,816 $ 1,647,493 $ 9,819,067
- 430,247 601,682 283,460 1,315,389
- - 2,799 14,896 17,695
- (2,629,445) (652,982) (700,915) (3,983,342)
- (3,367,803) (166,837) (1,257,062) (4,791,702)
451,732 2,486,757 (97,522) (12,128) 2,377,107
1,056,565 3,230,150 63,079 461,506 3,754,735
421,145 280,682 477,846 345,285 1,103,813
(2,092,174) (3,148,739) - - (3,148,739)
(280,682) (280,682) (377,884) (393,629) (1,052,195)
(895,146) 81,411 163,041 413,162 657,614
- 2,866 (182,438) - (179,572)
- - 410,219 106,994 517,213
(54,349) (1,946,398) (43,018) (131,729) (2,121,145)
- - 9,514 118,572 128,086
(17,021) (339,382) (20,464) (83,908) (443,754)
- (931,704) (239,664) (203,424) (1,374,792)
(71,370) (3,214,618) (65,851) (193,495) (3,473,964)
101,154 374,333 332 - 374,665
(413,630) (272,117) - 207,539 (64,578)
3,658,194 19,852,206 - 839,459 20,691,665
$ 3,244,564 $ 19,580,089 $ - $ 1,046,998 $ 20,627,087
$ 422,794 $ (1,970,012) $ (545,892) $ (471,100) $ (2,987,004)
- 3,395,932 233,963 191,283 3,821,178
(2,711) 28,727 58,727 7,386 94,840
454,303 668,031 - - 668,031
- - (44,623) 79,825 35,202
- - 10 44 54
- 14,565 (18,167) (18,499) (22,101)
- 23,976 180,982 (2,552) 202,406
- (23,372) (6,336) (968) (30,676)
- 969,577 43,314 166,186 1,179,077
- 2,319 500 (96) 2,723
(422,654) (622,986) - 36,363 (586,623)
$ 451,732 $ 2,486,757 $ (97,522) $ (12,128) $ 2,377,107
$ - $ 347,573 $ - $ - $ 347,573
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 ASSETS
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2012
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 119,657 $ 1 ,293,469 $ 482,190
Miscellaneous Receivables - - 1 01,686
Total Assets 119,657 1 ,293,469 $ 583,876
LIABILITIES
Due to Other Governments - 1 56,040 $ 195,374
Deposits and Escrows - - 3 88,502
Total Liabilities - 1 56,040 $ 583,876
NET ASSETS
Held in Trust $ 119,657 $ 1 ,137,429
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 ASSETS
PRIVATE PURPOSE TRUST AND OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2012
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 2 2,290
DEDUCTIONS
Distributions to Property Holders -
Change in Assets 2 2,290
NET ASSETS HELD IN TRUST
Net Assets-Beginning of Year 9 7,367
Net Assets-End of Year $ 1 19,657
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 2 ,978,028
Members 1 ,044,512
TOTAL CONTRIBUTIONS 4 ,022,540
Investment Income 1 ,986
Total Additions 4 ,024,526
DEDUCTIONS
Claims Paid 3 ,496,450
Change in Assets 5 28,076
NET ASSETS HELD IN TRUST
Net Assets-Beginning of Year 6 09,353
Net Assets-End of Year $ 1 ,137,429
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 63-65
4 Accounts Receivable 66-67
5 Deferred and Unearned Revenue 68
6 Capital Assets 69-74
7 Interfund Receivables and Payables 75
8 Interfund Transfers 76
9 Noncurrent Liabilities 77-86
10 Restricted Assets and Liabilities
and Fund Balances 87-89
11 Risk Management 90
12 Retirement Plans 91-93
13 Deferred Compensation Plan 93
14 Other Post-Employment Benefits 94-99
15 Deficit Equity Balances 100
16 Commitments and Contingencies 101
17 Joint Venture 102
18 Pollution Remediation Obligations 103
19 Combination of Roads Board Fund with General Fund 104
20 Special Item 104
21 Subsequent Events 104
-50-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
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 all the 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. Beginning in fiscal year 2012, the Roads Operating Fund is
included in with the General Fund.
Discretely Presented Component Units
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.
The Queen Anne’s County Public Housing Authority is a component unit of the Queen Anne’s County Government because
the County Commissioners appoint the members of the Housing Authority’s Board of Commissioners. In addition, the
County contributes substantial financial and administrative resources to the Housing Authority on an on-going basis,
including an annual appropriation, office space and utilities, and administrative services for human resources, accounting, and
other functions. Beginning July 1, 2012, the Queen Anne's County Public Housing Authority became a separate entity from
Queen Anne’s County. See Note 20 in this document for additional details.
-51-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (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
Queen Anne’s County Housing Authority Free Library
202 Chesterfield Avenue P.O. Box 280 121 S. Commerce Street
Centreville, Maryland 21617 Finance Office Centreville, MD 21617
205 East Water Street, Suite 100
Centreville, Maryland 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 17.
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.
For the most part, the effect of interfund activity has been removed from these statements.
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 Assets – 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 Assets and report
depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net assets are divided into three
categories: 1) invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted. Invested in capital assets, net of
related debt 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 net assets 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 net assets consist of net assets that do not meet the definition of
restricted or invested in capital assets, net of related debt.
-52-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
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; health; social services; education; parks and recreation; 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 as part of the required supplementary information subsection located after the Notes to the
basic financial statements. A budget-to-actual comparison is provided for the General Fund on a departmental level as
required supplementary information, and for all other individual funds with legally adopted budgets in the supplementary
information subsection.
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, 2012
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 revenue. 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 revenue is 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 deferred 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 revenue.
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. Agency funds report only assets and liabilities; they
do not report changes in net assets. Therefore, agency funds are reported using the accrual basis of accounting to recognize
receivables and payables. Activity during the year is accounted for as additions to and deductions from asset and liability
accounts (for Agency Funds) and Net Assets (for Private Purpose and Other Post-Employment Benefit Trust Funds). 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, 2012
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 and Highway User Tax funds.
Non-Major Governmental Funds – There are sixteen non-major governmental funds, which are used to account
for and report the proceeds of specific revenue sources. Included in the sixteen non-major governmental funds are
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 6,500 customers.
Water Operations - This fund is used to account for the operation of the water supply system
serving approximately 4,000 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.
-55-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that serves
small, private aircraft.
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 five non-major enterprise
funds, of which none are meant to be fully self-supporting. These funds include the Golf Course, Recreation
Programs, Public Landings, Property Management, and Public 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 accounts for the funding of retiree benefit plans
of participating agencies, which are: (1) Queen Anne’s County, Maryland, including the Queen Anne’s
County Public Housing Authority; (2) Queen Anne’s County Board of Education; and (3) Queen
Anne’s County Free Library. Other agencies and political subdivisions have the right to participate
in this Trust Fund also, as an investment vehicle for their Other Post-Employment Benefit Plan
through the pooling of investment resources. Currently, the only other agency participating is Kent
County, Maryland.
Agency Funds - These funds are used to account for assets held in a purely custodial capacity where the
County receives, temporarily invests, and remits such resources to individuals, private organizations or other
governments.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in
both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or
contradict guidance of GASB. Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The County has elected not to follow subsequent
private-sector guidance.
In the process of aggregating data for the Statement of Net Assets 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, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS 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 Assets, 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 stated at the lower of cost or market with cost
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 ($1,000 for
computers) 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 are recorded at estimated fair market 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, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS 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 3 - 20
Office furniture, fixtures and equipment 5 - 15
Vehicles 7 - 10
5) Other Post-Employment Benefit Obligation
The Queen Anne’s County post-employment 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.
Additional details regarding other post-employment benefits can be found in Notes 9 and 14.
Primary Government – In both the government-wide and enterprise funds, liability for other post-
employment benefits is adjusted at the end of the fiscal year. For the year ended June 30, 2012, the other post-
employment benefit obligation amounted to $22,829,978, including both governmental ($19,003,721) and
business-type activities ($3,826,257).
Component Unit – Queen Anne’s County Housing Authority –For the year ended June 30, 2012, the other
post-employment benefit obligation for the Housing Authority amounted to $435,578.
Component Unit - Board of Education – For the year ended June 30, 2012, the other post-employment
benefit obligation for the Board of Education amounted to $20,337,878.
Component Unit – Free Library – For the year ended June 30, 2012, the other post-employment benefit
obligation for the Library amounted to $791,664.
-58-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
6) 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. Accumulated unpaid
leave of the County amounted to $2,474,552 at June 30, 2012, including both governmental ($2,165,466) and
business-type activities ($309,086).
Component Unit – Queen Anne’s County Housing Authority –For fiscal years 2012 and prior, the Housing
Authority’s employees were employees of the Queen Anne’s County Government, which was ultimately liable
for their salaries and benefits. Therefore for the years ended June 30, 2011 and prior, the County recognized a
liability for compensated absences. However, on July 1, 2012, the Housing Authority became a completely
separate entity from the County and thus their employees are no longer considered County Employees. Due to
this separation, the Housing Authority’s employees were paid out any accrued vacation leave as of June 30,
2012; therefore, there is no remaining balance for compensated absences.
Component Unit - Board of Education – Accumulated unpaid annual leave is accrued when earned in the
Unrestricted Current Expense Fund using the modified accrual basis of accounting. In fiscal year 1992, the
Board adopted the practice of paying for any unused vacation time, up to the maximum number of days that
employees can carry over from one year to the next, upon termination of employment. Maximum number of
days varies from 20 to 30 days, depending on classification. Liabilities for compensated absences are
inventoried at the end of each fiscal year and adjusted to current salary costs. Accumulated compensated
absences as of June 30, 2012 amounted to $991,095. Because payment of sick leave is contingent upon
employees’ future illness or retirement, the Board of Education expects its commitment to provide sick leave to
be met during the normal course of activities over the working lives of its present employees. Any
accumulated unused sick leave at retirement will ultimately be taken into consideration and paid through
retirement benefits by the State of Maryland.
7) 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 and discounts 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 generally reported as a
deferred asset and amortized over the term of the related debt using the straight-line method.
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, payments to the Bond Refunding
Agent and associated bond issuance costs are reported as other financing uses.
-59-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
8) Net Assets/Fund Equity
In the government-wide financial statements, the County has reported an unrestricted net deficit of
$32,095,241. This deficit 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. 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 assets invested in capital assets, net of related debt, in
the Board of Education column of the Component Units section of the County’s government-wide Statement
of Net Assets. 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 a deficit balance in unrestricted net assets in the Governmental Activities column of
the government-wide Statement of Net Assets. At June 30, 2012, the County has reported outstanding general
obligation debt related to assets held by the Board of Education amounting to $68,278,843 (of which
$64,045,934 has been spent and the remaining $4,232,909 relates to unspent bond proceeds). Absent the effect
of this relationship, the County would have reported unrestricted net assets of governmental activities in the
amount of $36,183,602.
The County reports a portion of its net assets in its government-wide financial statements as restricted. In this
context, restricted means that, as of June 30, 2012, this portion of net assets was restricted for a particular
purpose either by external parties; by provision of the County Charter; or by enabling legislation. Net assets
restricted by enabling legislation represent legislative restrictions that a party external to the government can
compel the government to honor. For the County, such amounts represent primarily accumulated net assets
attributed to revenue streams that are restricted for specified purposes in the County Code. This generally
includes Capital Projects Fund impact fee collections and developer exactions on hand for outside entities;
ending fund balances of substantially all special revenue funds; and ending restricted net assets of the Sanitary
District and other enterprise funds. Such amounts, which are restricted net assets in the government-wide
statement of Net Assets, are as follows at year-end:
Restricted Net Assets
Governmental activities $ 5,982,041
Business-type activities:
Debt Service $ 2,760,648
Capital Projects 753,300 3,513,948
Total Restricted Net Assets $ 9,495,989
Note that unspent bond proceeds of $6,613,921 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, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
8) Net Assets/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 loans receivable.
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.
9) 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, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9) 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 State
Department of Assessments and Taxation without public notice and only after public hearings. The
County tax rate for the fiscal year ended June 30, 2012 was $0.8471 per $100 of assessed value.
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.
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended
June 30, 2012, supplemental appropriations were as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 106,944,187 $ 111,689,368 $ 4,745,181
Special Revenue Funds that adopt annual budgets
Non-Major that adopt annual budgets -
Department of Aging - expenditures 2,153,838 2,260,304 106,466
Housing and Community Services - expenditures 1,348,304 1,404,320 56,016
Community Partnerships for Children - expenditures and transfers 1,280,615 1,433,013 152,398
Inmate Welfare Fund - expenditures 165,250 173,250 8,000
Agricultural Transfer - expenditures 165,000 297,349 132,349
Purchase of Development Rights - expenditures and transfers 133,583 526,677 393,094
Rural Legacy - expenditures - 1,500,004 1,500,004
Fire Company Impact Fees - expenditures - 234,851 234,851
Total Special Revenue Funds that adopt annual budgets $ 5,246,590 $ 7,829,768 $ 2,583,178
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.
-62-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
Annual operating budgets are legally adopted for the General Fund (includes the Roads Board) and the following non-
major governmental funds: Department of Aging, Housing and Community Services, Community Partnerships for
Children, Dredging Special Assessments, Kent Narrows, Law Library, Inmate Welfare, Agricultural Transfer, Rural
Legacy, School Impact Fees Capital Projects, Fire Company Impact Fees Capital Projects, Parks and Recreation Impact
Fees Capital Projects, and Purchase of Development Rights Funds. 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, 2012.
However, salary reversions are budgeted as a lump sum negative $650,000, but actual amounts are realized in the
individual departments and are not reported as a lump sum in the Reversions activity.
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT, PUBLIC HOUSING AUTHORITY, AND FIDUCIARY FUNDS
Cash and investments were as follows at year-end:
Collected
Carrying Bank Balances Total
Amount or Fair Value Collateral
Demand Deposit Accounts, Short-Term
Certificates of Deposit and Petty Cash $ 24,325,586 $ 22,483,556 $ 20,687,475
Investment in Maryland Local
Government Investment Pool (MLGIP) 45,955,240 45,949,894 46,868,891
$ 7 0,280,826 $ 68,433,450 $ 67,556,366
Cash and investments reconcile to the basic financial statements as follows:
Primary Component Unit-
Cash and Investments Government Housing Authority Fiduciary Total
Unrestricted
Equity in Pooled Cash and Investments $ 4 9,257,847 $ 2,105,605 $ 1,895,316 $ 53,258,768
Cash and Cash Equivalents - 341,899 - 341,899
Restricted
Equity in Pooled Cash and Investments 16,579,687 - - 16,579,687
Investments - 100,472 - 100,472
$ 6 5,837,534 $ 2,547,976 $ 1,895,316 $ 70,280,826
-63-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT, PUBLIC HOUSING AUTHORITY, AND FIDUCIARY FUNDS
(CONTINUED)
At year-end, the carrying amount of combined deposits was $24,325,586. The collected bank balances were
$22,483,556 and of those balances, $11,700,848 was insured by federal depository insurance (FDIC), with the
majority of that amount being insured under the unlimited transaction account guarantee program for demand deposit
balances. The uninsured balances were fully collateralized by securities placed with the respective banks’ escrow
agents and held in the County’s name.
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.
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 by enacting Section 22G of Article 94 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.
Standard and Poors rates the MLGIP as AAAm. The MLGIP seeks to maintain a constant value of $1 per unit with unit
value computed using the amortized cost method. In addition, the net asset value of the pool, marked to market, is
calculated and maintained on a weekly basis to ensure a $1 per unit constant value.
As of June 30, 2012, the County’s investments, 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.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $12,433,628, including
$317,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. The bank balances were
$13,505,029. At June 30, 2012, the Board’s bank deposits were approximately $1.3 million in excess of limits
insured by federal deposit insurance. The uninsured balances were fully collateralized by securities held by the agent
of the Board, in the Board’s name.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including a $654,383 certificate
of deposit, was $1,354,889, while collected bank balances were $1,369,897. Of the bank balances, $586,550 was
secured by the FDIC and $773,347 was secured by collateral held by the pledging bank’s trust department but not in
the Library’s name.
-64-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
B. INVESTMENT INCOME
PRIMARY GOVERNMENT
Total investment income earned in all governmental and business-type funds was credited for use as follows:
Investment
Governmental Funds Income
Major Governmental Funds
General Fund $ 56,439
General Capital Projects 17,078
Roads Capital Projects 28,089
Non-Major Governmental Funds 25,044
Total Investment Income $ 126,650
Business-Type Funds
Major Enterprise Funds
Sanitary District $ 374,333
Airport 332
Total Investment Income $ 374,665
-65-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2012 for the governmental and business-type activities are as follows:
Total
General Roads Non-Major Total Total Governmental
General Capital Capital Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 155,662 $ - $ - $ - $ 155,662 $ - $ 155,662
Taxes - Other 1 07,700 1 96,874 - - 304,574 - 304,574
Subtotal Taxes 2 63,362 1 96,874 - - 460,236 - 460,236
Other Accounts Receivable:
Board of Education 6 5,151 - - - 65,151 - 65,151
Retirees Insurance 3 5,337 - - - 35,337 - 35,337
Solid Waste 1 0,428 - - - 10,428 - 10,428
Governmental Funds - User Fees - - 1 7,063 - 17,063 - 17,063
Sanitary District - User and Septage Fees - - - - - 446,598 446,598
Airport - Fuel Sales and User and Rental Fees - - - - - 54,080 54,080
Miscellaneous Receivables 3 5,482 1 ,350 - 44,590 81,422 29,860 111,282
Subtotal Other Accounts Receivable 146,398 1 ,350 1 7,063 44,590 209,401 530,538 739,939
Loans Receivable - - - 4,745,982 4,745,982 - 4,745,982
Subtotal Other Accounts and Loans Receivable 1 46,398 1 ,350 1 7,063 4,790,572 4,955,383 530,538 5,485,921
Special Assessments - - 4 16,248 638,104 1,054,352 - 1,054,352
Intergovernmental
Income Taxes Held by State 7 ,299,576 - - - 7,299,576 - 7,299,576
Grants Receivable 6 54,166 3 0,388 6 91,074 454,463 1,830,091 402,210 2,232,301
State-Shared Highway User Tax 6 9,849 - - - 69,849 - 69,849
Bonds Receivable 1,565,584 - - - 1,565,584 - 1,565,584
Subtotal Intergovernmental 9,589,175 3 0,388 6 91,074 454,463 10,765,100 402,210 11,167,310
Restricted Receivables
Accounts Receivable - - - - - 51,207 51,207
Special Assessments - - - - - 2,102,580 2,102,580
Subtotal Restricted Receivables - - - - - 2,153,787 2,153,787
Total Receivables $ 9,998,935 $ 2 28,612 $ 1,124,385 $ 5,883,139 $ 17,235,071 $ 3,086,535 $ 20,321,606
The County does not have any allowance for doubtful accounts related to the above receivables.
Note that receivables from Component Units are not included in the above table.
-66-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Intergovernmental receivables include bonds receivable from four other counties. In years 1994, 2000, and 2003, Queen
Anne’s County sold $1,000,000, $2,815,000, and $710,000, respectively, of its general obligation bonds for the purpose of
providing the local share of capital projects at Chesapeake College. Five counties, including Queen Anne’s County,
provide local support for the College. The other four counties supporting Chesapeake College reimburse Queen Anne’s
County for their portion of the debt service. Bonds are amortized over the 20-year life of each of the original Queen
Anne's County Bonds. The current carrying value for the bonds receivable from the other four counties are $125,400,
$1,115,000, and $325,184, respectively, for a total of $1,565,584. The College bills and collects from the original five
counties an amount sufficient to cover this debt service and reimburses this amount to Queen Anne’s County on a semi-
annual basis.
Loans receivable in the amount of $4,745,982 relate to the Housing, Impact Fees, and Revolving Loan Special Revenue
Funds. Loans receivable in the amount of $3,645,674 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 $129,707 are also repaid over a number of years.
The remaining loan receivable balance of $970,601 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 $7,299,576 have been estimated by the State as income tax due for “tax
years” 2011 and prior. It may take five years or longer for the State to receive all amounts relating to these “tax years” and
remit those monies to the County. 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 $1,054,352 represent receivables for governmental activities. Part of this amount
consists of $416,248 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 $638,104 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 $2,102,580 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.
-67-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 5 – DEFERRED OR UNEARNED REVENUE
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to
be available to liquidate liabilities of the current period. In addition, governmental funds and governmental activities
defer revenue recognition in connection with resources that have been received, but unearned. At the end of the
current fiscal year, the components of unavailable revenue and unearned revenue were reported as follows:
Deferred Revenue Unavailable Unearned Total
General Fund
Income Taxes Due from State $ 4,271,834 $ - $ 4,271,834
Property Taxes Receivable 97,468 - 97,468
Property Tax Deferrals - 2 0,455 20,455
Inter-governmental Bonds Receivable 1,565,584 - 1,565,584
Grant Drawdowns in Excess of Expenditures - 3 ,810 3,810
Inspection Fees Collected in Advance - 4 90,943 490,943
Subtotal 5,934,886 5 15,208 6,450,094
General Capital Projects Fund
Grant Drawdowns in excess of Expenditures - 8 0,195 80,195
Roads Capital Projects Fund
Benefit Assessments Receivable Not Currently Due - 4 16,248 416,248
Benefit Assessments Paid in Advance - 5 9,968 59,968
Subtotal - 4 76,216 476,216
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures - 4 92,726 492,726
Benefit Assessments Receivable Not Currently Due - 6 38,104 638,104
Impact Fees Loans Receivable Not Currently Due - 9 70,601 970,601
Subtotal - 2 ,101,431 2,101,431
Total Deferred Revenue $ 5,934,886 $ 3 ,173,050 $ 9,107,936
-68-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2012 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the
Construction in Progress Transfers column. Asset retirements are show in the Decreases column.
Balance Balance
Governmental Activities June 30, 2011 Increases Transfers Decreases June 30, 2012
Capital Assets, not being depreciated:
Land $ 39,092,742 $ - $ - $ (48,276) $ 3 9,044,466
Intangible Rights - Easements 13,390 56,478 716,951 - 7 86,819
Land Improvements 1,796,268 - 1,645,152 - 3 ,441,420
Construction in Progress 8,171,028 2,543,608 (7,908,826) (238,125) 2 ,567,685
Land - Inexhaustible Infrastructure Improvements 40,662,078 - 978,539 (66,906) 4 1,573,711
Total Capital Assets, not being depreciated 89,735,506 2,600,086 (4,568,184) (353,307) 8 7,414,101
Capital Assets, being depreciated:
Buildings and Building Improvements 39,832,998 55,710 968,051 (278,296) 4 0,578,463
Improvements other than Buildings 5,892,596 63,467 1,950,466 - 7 ,906,529
Vehicles 9,214,927 476,233 - (557,955) 9 ,133,205
Equipment 8,312,074 121,537 415,032 (923,895) 7 ,924,748
Furniture and Fixtures 10,581,859 40,196 - (239,345) 1 0,382,710
Infrastructure Improvements - Depreciable 15,850,015 - 1,234,635 (174,391) 1 6,910,259
Total Capital Assets, being depreciated 89,684,469 757,143 4,568,184 (2,173,882) 9 2,835,914
Less Accumulated Depreciation for:
Buildings and Building Improvements 9,052,790 873,107 - (89,055) 9 ,836,842
Improvements other than Buildings 1,115,393 205,659 - - 1 ,321,052
Vehicles 5,754,958 616,571 - (380,243) 5 ,991,286
Equipment 5,785,407 408,088 - (763,451) 5 ,430,044
Furniture and Fixtures 7,051,542 1,059,102 - (225,242) 7 ,885,402
Infrastructure Improvements - Depreciable 6,783,927 275,750 - (41,953) 7 ,017,724
Total Accumulated Depreciation 35,544,017 3,438,277 - (1,499,944) 3 7,482,350
Total Capital Assets, being depreciated, net 54,140,452 (2,681,134) 4,568,184 (673,938) 5 5,353,564
Governmental activities Capital Assets, net $ 143,875,958 $ (81,048) $ - $ (1,027,245) $ 1 42,767,665
-69-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
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, 2012 are summarized as
follows, with depreciation shown separately. Completed projects that were reclassified from construction in progress
(CIP) to other asset accounts during the year are reported in the same column, as retirements from CIP and transfers to
other asset accounts.
Balance Balance
Business-Type Activities June 30, 2011 Increases Transfers Decreases June 30, 2012
Capital Assets, not being depreciated:
Land $ 12,974,006 $ - $ - $ - $ 12,974,006
Land Improvements 16,162 - - - 16,162
Intangible Rights 6,140 - - - 6,140
Construction in Progress 5,486,372 1,208,907 (4,980,220) (271,639) 1,443,420
Land - Inexhaustible Infrastructure Improvements 1,219,298 - - - 1,219,298
Total Capital Assets, not being depreciated 19,701,978 1,208,907 (4,980,220) (271,639) 15,659,026
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 16,753,162 - 106,365 - 16,859,527
Improvements other than Buildings 6,966,909 - 4,873,855 - 11,840,764
Vehicles 1,323,788 - - - 1,323,788
Equipment 21,799,704 270,117 - - 22,069,821
Furniture and Fixtures 84,194 - - (1,748) 82,446
Infrastructure Improvements - Depreciable 69,641,202 514,979 - - 70,156,181
Total Capital Assets, being depreciated 116,568,959 785,096 4,980,220 (1,748) 122,332,527
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 6,293,843 674,428 - - 6,968,271
Improvements other than Buildings 2,522,317 346,622 - - 2,868,939
Vehicles 861,932 83,592 - - 945,524
Equipment 7,327,545 1,044,400 - - 8,371,945
Furniture and Fixtures 66,718 4,350 - (1,748) 69,320
Infrastructure Improvements - Depreciable 21,211,513 1,667,786 - - 22,879,299
Total Accumulated Depreciation 38,283,868 3,821,178 - (1,748) 42,103,298
Total Capital Assets, being depreciated, net 78,285,091 (3,036,082) 4,980,220 - 80,229,229
Business-Type activities Capital Assets, net $ 97,987,069 $ (1,827,175) $ - $ (271,639) $ 95,888,255
-70-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities Depreciation
General Government $ 215,765
Public Safety 1,538,329
Public Works 831,441
Health 12,951
Social Services 348,013
Parks and Recreation 403,804
Library 24,170
Conservation of Natural Resources 29,089
Economic/Community Development 34,715
$ 3,438,277
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 3,395,932
Airport 233,963
Non-Major Enterprise Funds:
Parks and Recreation $ 1 56,260
Public Marinas 3 5,023 191,283
$ 3,821,178
-71-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2012 is as follows:
Balance Balance
Board of Education June 30, 2011 Increases Decreases June 30, 2012
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ 6,363,040
Construction in Progress 18,417,194 13,931,611 (28,697,493) 3,651,312
Total Capital Assets, not being depreciated 24,780,234 13,931,611 (28,697,493) 10,014,352
Capital Assets, being depreciated:
Land Improvements 4,622,004 430,828 - 5,052,832
Buildings 150,604,599 28,257,451 - 178,862,050
Furniture and Equipment 10,008,288 267,486 (1,506,637) 8,769,137
Total Capital Assets, being depreciated 165,234,891 28,955,765 (1,506,637) 192,684,019
Less Accumulated Depreciation for:
Land Improvements 3,282,575 343,401 - 3,625,976
Building 34,126,967 3,222,334 - 37,349,301
Furniture and Equipment 7,097,840 626,749 (1,506,637) 6,217,952
Total Accumulated Depreciation 44,507,382 4,192,484 (1,506,637) 47,193,229
Total Capital Assets, being depreciated, net 120,727,509 24,763,281 - 145,490,790
Capital Assets, net $ 145,507,743 $ 38,694,892 $ (28,697,493) $ 155,505,142
-72-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2012 is as follows:
Balance Balance
Library June 30, 2011 Increases Decreases June 30, 2012
Capital Assets, not being depreciated:
Artwork $ 29,850 $ - $ - $ 29,850
Capital Assets, being depreciated:
Books and Media 2,392,363 148,508 (166,405) 2,374,466
Building Improvements 239,072 - - 239,072
Total Capital Assets, being depreciated 2,631,435 148,508 (166,405) 2,613,538
Less Accumulated Depreciation 1,684,986 109,956 (150,112) 1,644,830
Total Capital Assets, being depreciated, net 946,449 38,552 (16,293) 968,708
Capital Assets, net $ 976,299 $ 38,552 $ (16,293) $ 998,558
-73-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne's County Housing Authority: Capital asset activity for the year ended June 30, 2012 is as follows:
Construction
Balance in Progress Balance
Housing Authority June 30, 2011 Increases Transfers Decreases June 30, 2012
Capital Assets, not being depreciated:
Land $ 784,639 $ - $ 178,715 $ - $ 963,354
Land Improvements 212,722 - - - 212,722
Construction in Progress 368,491 170,455 (368,048) - 170,898
Total Capital Assets, not being depreciated 1,365,852 170,455 (189,333) - 1,346,974
Capital Assets, being depreciated:
Buildings and Improvements 21,515,834 4 9,157 189,333 - 21,754,324
Vehicles 23,490 - - - 23,490
Furniture, Fixtures, and Equipment 386,395 3 1,616 - - 418,011
Infrastructure 141,396 - - - 141,396
Total Capital Assets, being depreciated 22,067,115 8 0,773 189,333 - 22,337,221
Less Accumulated Depreciation for:
Buildings and Improvements 3,728,455 457,890 - - 4,186,345
Vehicles 21,728 1,762 - - 23,490
Furniture, Fixtures, and Equipment 146,133 2 0,749 - - 166,882
Infrastructure 3,771 2,828 - - 6,599
Total Accumulated Depreciation 3,900,087 483,229 - - 4,383,316
Total Capital Assets, being depreciated, net 18,167,028 (402,456) 189,333 - 17,953,905
Capital Assets, net $19,532,880 $ (232,001) $ - $ - $ 19,300,879
-74-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
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. Occasionally, these receivables and payables are used in lieu of short-term
external borrowing, such as for capital lease agreements.
Intra-entity receivables and payables usually relate to capital construction projects, wherein the primary government
records a liability to its component unit at year-end while the component unit records a payable to the contractor.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2012:
Due from Fund
Total Due From
General Non-Major Sanitary Bay Bridge Non-Major Housing Authority Other Funds /
Capital Projects Governmental District Airport Enterprise Subtotal Component Unit Component Units
Due to Fund
General Fund $ - $ 212,416 $ - $ 4 77,846 $ 325,285 $ 1,015,547 $ - $ 1,015,547
General Capital Projects - 66,747 - - - 66,747 1 ,360,643 1,427,390
Sanitary District - - 4 21,145 - - 421,145 - 421,145
Board of Education -
Component Unit 1,129,417 - - - - 1,129,417 - 1,129,417
Total Due to Other Funds $ 1,129,417 $ 279,163 $ 421,145 $ 4 77,846 $ 325,285 $ 2,632,856 $ 1 ,360,643 $ 3,993,499
Interfund receivables and payables are reported on the Statement of Net Assets 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, 2012
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 following interfund transfers were made during the fiscal year ended June 30,
2012:
Transfers in Fund
Total General General Roads Non-Major Major Non-Major Total
Transfers Out Fund Capital Projects Capital Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 7,829,993 $ - $ 5,024,831 $ 600,000 $ 1,599,166 $ 144,490 $ 461,506 $ 7,829,993
General Capital Projects (1) 128,032 - - - - - - -
Roads Capital Projects 1,420,413 1,420,413 - - - - - 1,420,413
Total Major Governmental Funds 9,378,438 1,420,413 5,024,831 600,000 1,599,166 144,490 461,506 9,250,406
Non-Major Governmental 991,471 869,122 - - 122,349 - - 991,471
Sanitary District - Restricted 1,056,565 - - - - 1,056,565 - 1,056,565
Sanitary District - Debt Service 2,092,174 - - - - 2,092,174 - 2,092,174
Total Major Enterprise Funds 3,148,739 - - - - 3,148,739 - 3,148,739
Total Transfers Out $ 13,518,648 $ 2,289,535 $ 5,024,831 $ 600,000 $ 1,721,515 $ 3,293,229 $ 461,506 $ 13,390,616
(1) In fiscal year 2012, the General Capital Projects Fund transferred 2009 and 2011 bond proceeds in the amounts of
$1,842 and $126,190, respectively, to various Enterprise Funds. Public Marinas received $116,679, the Airport received
$9,511, and Public Landings received $1,842. The transaction was appropriately recorded on the Enterprise Fund books
as an increase in debt liability and on the General Capital Projects Fund’s book as a transfer out. Since enterprise funds
and governmental funds record such transactions differently, the $128,032 is reported in the above table only as a
transfer out with no corresponding transfer in.
-76-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9-NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2012, the following changes occurred in the noncurrent liabilities of the primary
government’s governmental activities:
PRIMARY GOVERNMENT Additions / Retirements Due in
Balance Reclassifications and Balance Due Within More than
Governmental Activities June 30, 2011 of debt Repayments June 30, 2012 One Year One Year
General Bonds Payable $ 1 03,569,858 $ 8,010,000 $ 15,453,937 $ 96,125,921 $ 7,031,590 $ 89,094,331
General Bonds Payable - Related to PHA - 1,360,643 - 1,360,643 63,672 1,296,971
Notes Payable 1,070,632 - 181,376 889,256 189,179 700,077
Bond Premiums, Net of
Issuance Costs 541,347 651,482 65,683 1,127,146 124,951 1,002,195
Deferred Refunding Costs (1,319,476) (337,454) ( 170,483) (1,486,447) (201,161) (1,285,286)
Capital Leases 54,089 - 54,089 - - -
1 03,916,450 9,684,671 15,584,602 98,016,519 7,208,231 90,808,288
Other Post-Employment Benefit Obligation 13,884,281 6,627,584 1,508,144 19,003,721 - 19,003,721
Compensated Absences 2,162,071 1,383,328 1,379,933 2,165,466 1,251,413 914,053
$ 1 19,962,802 $ 17,695,583 18,472,679 $ 119,185,706 $ 8,459,644 $ 110,726,062
Less College Reimbursements ( 246,063)
$ 18,226,616
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 $ 1 5,453,937
Notes Payable 1 81,376
Capital Leases 5 4,089
LESS: Payment to Bond Refunding Agent (8,557,455)
PLUS: Deferred Refunding Costs incurred 3 37,454
LESS: Distributions of 2009 Bonds (1,842)
LESS: Distributions of 2011 Bonds (126,190)
LESS: College Reimbursements (246,063)
Rounding 1
Total Principal Payments $ 7 ,095,307
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow money on
its own. The College reimbursed to the County $246,063 for this year’s principal and interest payments.
-77-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2012, 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, 2011 of debt Repayments June 30, 2012 One Year One Year
Golf Course $ 7 66,075 $ - $ 80,000 $ 686,075 $ 80,000 $ 606,075
Airport 644,742 9 ,511 43,018 611,235 43,735 567,500
Public Landings 39,776 1 ,842 1,752 39,866 1,577 38,289
Public Marinas 934,554 116,679 49,977 1,001,256 39,426 961,830
Sanitary District 17,830,357 - 1,946,398 15,883,959 1,786,182 14,097,777
Subtotal Debt 2 0,215,504 128,032 2,121,145 18,222,391 1,950,920 16,271,471
Bond Premiums, Net of
Issuance Costs
Golf Course 23,863 - 2,651 21,212 2,651 18,561
Airport 7,557 3 835 6,725 8 37 5,888
Public Landings 15 - - 15 1 14
Public Marinas 347 5 2 23 376 2 1 355
Deferred Refunding Costs
Golf Course (52,994) - ( 5,888) (47,106) (5,888) (41,218)
Airport (16,626) - ( 1,848) (14,778) (1,847) (12,931)
Sanitary District (26,667) - ( 13,334) (13,333) (13,333) -
Subtotal Bond Premiums, Issuance
and Deferred Refunding Costs (64,505) 5 5 ( 17,561) (46,889) (17,558) (29,331)
Subtotal Debt before Other Post-Employment
Benefit Obligation and Compensated Absences 2 0,150,999 128,087 2,103,584 18,175,502 1,933,362 16,242,140
Other Post-Employment Benefit Obligation 2,647,180 1,179,077 - 3,826,257 - 3,826,257
Compensated Absences 339,762 186,176 216,852 309,086 178,617 130,469
$ 2 3,137,941 $ 1,493,340 $ 2,320,436 $ 22,310,845 $ 2,111,979 $ 20,198,866
Additions of new debt listed above in the amount of $128,032 represent distributions of the 2009 bonds in the amount of
$1,842 (see comment in Note 8), and also distributions of the 2011 bonds in the amount of $126,190.
-78-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2012, the following changes occurred in the noncurrent liabilities of the primary
government’s Component Units:
COMPONENT UNITS Retirements Due in
Board of Education, Free Library, Balance Additions and Balance Due Within More than
and Housing Authority June 30, 2011 of new debt Repayments June 30, 2012 One Year One Year
Queen Anne's County
Board of Education
Capital Lease $ 4,560 $ - $ 4,560 $ - $ - $ -
Retirement Incentives 282,531 - 257,275 25,256 8,679 16,577
Compensated Absences 823,162 207,065 39,132 991,095 258,124 732,971
Other Post-Employment Benefit Obligation 14,794,329 5,543,549 - 20,337,878 - 20,337,878
Subtotal 15,904,582 5,750,614 300,967 21,354,229 266,803 21,087,426
Free Library
Other Post-Employment Benefit Obligation 561,264 230,400 - 791,664 - 791,664
Housing Authority
Terrapin Grove Phase II Loan 613,406 - 40,908 572,498 40,908 531,590
Scattered Site Housing
Reimbursement to County for
Portion of 2003 Bonds 232,530 - 14,656 217,874 15,395 202,479
Repay Loan from County Housing
Revolving Loan Fund 502,224 - 8,391 493,833 - 493,833
Reimbursement to County for
Portion of 2009 Bonds 605,329 - 22,222 583,107 23,060 560,047
2009 Bond Premiums 3,140 - 165 2,975 165 2,810
2009 Bond Issuance Costs (2,903) - (153) ( 2,750) (153) (2,597)
Foxxtown Apartments
Reimbursement to County for
Portion of 2006 Bonds 346,408 - 15,566 330,842 16,168 314,674
Reimbursement to County for
Portion of 2009 Bonds 237,541 - 8,720 228,821 9,049 219,772
2009 Bond Premiums 1,232 - 65 1,167 65 1,102
2009 Bond Issuance Costs (1,139) - (60) ( 1,079) (60) (1,019)
Other Post-Employment Benefit Obligation 345,072 127,100 36,594 435,578 - 435,578
Subtotal 2,882,840 127,100 147,074 2,862,866 104,597 2,758,269
Total Noncurrent Liabilites: Component Units $ 19,348,686 $ 6,108,114 $ 448,041 $ 25,008,759 $ 371,400 $ 24,637,359
-79-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
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: Water, Sewer, Bay Bridge Airport, Blue
Heron Golf Course, Public Landings, and Public Marinas.
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 43, Financial Reporting for Post-Employment Benefit Plans Other than Pension Plans and GASB 45,
Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions. For
governmental funds, the other post-employment benefit obligations are 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 that employee charges the majority of their productive time. Additional
information can be found in Note 14, Other Post-Employment Benefits.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes vacation leave
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, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2012, general obligation bonds and notes payable for governmental activities are comprised of the
following, along with other post-employment benefits and accrued compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2012 One Year One Year
General Obligation Bonds Payable
2002 Refunding Bonds General 3.00%-5.00% 2013 6,310,000 $ 1,030,000 $ 500,000 $ 530,000
2003 Public Facilities General 3.50%-4.50% 2023 13,265,000 407,127 407,127 -
2005 Refunding Bonds General 3.00%-5.00% 2019 30,026,336 21,366,336 3,175,000 18,191,336
2006 Public Facilities General 4.000%-5.375% 2027 22,510,212 18,630,978 910,482 17,720,496
2009 Public Facilities General 1.400%-5.625% 2030 28,499,154 25,941,098 1,025,893 24,915,205
2011 Public Facilities General 2.00%-4.25% 2031 21,532,570 20,740,382 730,610 20,009,772
2012 Refunding Bonds General 2.00%-4.00% 2023 8,010,000 8,010,000 282,478 7,727,522
2003 Public Facilities Due from PHA 3.50%-4.50% 2023 335,000 217,873 15,395 202,478
2006 Public Facilities Due from PHA 4.000%-5.375% 2027 399,728 330,842 16,168 314,674
2009 Public Facilities Due from PHA 1.400%-5.625% 2030 872,644 811,928 32,109 779,819
Subtotal Bonds Payable 97,486,564 7,095,262 90,391,302
Notes Payable
2009 CELP Loan General 2.00% 2015 122,780 63,527 17,701 45,826
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 216,000 24,000 192,000
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 449,342 20,425 428,917
Frizz-King Property General Capital Projects 6.00% 2014 365,000 160,387 127,053 33,334
Subtotal Notes Payable 889,256 189,179 700,077
Subtotal Bonds and Notes Payable 98,375,820 7,284,441 91,091,379
Bond Premiums 1,686,993 167,265 1,519,728
Bond Issuance Costs (559,847) (42,314) ( 517,533)
Deferred Refunding Costs (1,486,447) (201,161) (1,285,286)
Total Governmental Activities 98,016,519 7,208,231 90,808,288
Other Post-Employment Benefit Obligation 19,003,721 - 19,003,721
Compensated Absences 2,165,466 1,251,413 914,053
$ 119,185,706 $ 8,459,644 $ 110,726,062
-81-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of
June 30, 2012 for governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2013 $ 7,095,262 $ 3,841,009 $ 10,936,271 $ 189,179 $ 7,975 $ 197,154
2014 7,368,860 3,647,448 11,016,308 95,817 1,325 97,142
2015 7,102,103 3,399,095 10,501,198 62,845 464 63,309
2016 6,810,398 3,150,833 9,961,231 53,772 93 53,865
2017 7,093,694 2,884,841 9,978,535 44,425 - 44,425
2018-2022 27,596,403 10,810,210 38,406,613 198,125 - 198,125
2023-2027 22,800,040 5,674,594 28,474,634 102,125 - 102,125
2028-2032 11,619,804 1,112,540 12,732,344 102,125 - 102,125
2033-2034 - - - 40,843 - 40,843
$ 97,486,564 $ 34,520,570 $ 1 32,007,134 $ 889,256 $ 9,857 $ 899,113
These repayment schedules exclude bond premiums ($1,686,993), issuance costs (negative $559,847), and deferred
refunding costs (negative $1,486,447).
For the year ended June 30, 2012, total principal, debt issuance costs, and interest incurred by governmental funds
relating to general obligation bonds and notes payable, less College reimbursements, were $7,095,307, $162,021, and
$4,116,939, respectively.
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use these
bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s debt service for
interest expense. As a result, the County received interest reimbursements of $448,359 during fiscal year 2012, which
are reported separately as a specific intergovernmental grant. The net effect of this reimbursement is shown below.
Net Effect of Federal Build America Bonds Interest Reimbursement on Interest Expense
Interest Expense Interest Net Interest
on 2009 Bonds Reimbursement Expense
Governmental Activities $ 1 ,230,671 $ ( 430,718) $ 799,953
Business-Type Activities
Airport 7 ,967 ( 2,789) 5,178
Public Landings 1 ,912 ( 669) 1,243
Public Marinas 4 0,522 ( 14,183) 26,339
Total Business-Type Activities 5 0,401 ( 17,641) 32,760
Total $ 1 ,281,072 $ ( 448,359) $ 832,713
-82-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2012 for business-type activities are comprised of
the following, as well as other post-employment benefits and accrued compensated absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2012 One Year One Year
Golf Course
2005 Refunding Bonds 3.00%-5.00% 2019 $ 1,076,075 $ 686,075 $ 80,000 $ 606,075
Bond Premiums 24,329 3,041 21,288
Bond Issuance Costs ( 3,117) ( 390) (2,727)
Deferred Refunding Costs ( 47,106) ( 5,888) (41,218)
Subtotal Golf Course 660,181 76,763 583,418
Bay Bridge Airport
2005 Refunding Bonds 3.00%-5.00% 2019 337,588 192,588 25,000 167,588
2006 Public Facilities Bonds 4.000%-5.375% 2027 288,928 239,136 11,686 227,450
2009 Public Facilities Bonds 1.400%-5.625% 2030 180,501 167,942 6,642 161,300
2011 Public Facilities Bonds 2.00%-4.25% 2031 2,430 11,569 407 11,162
Bond Premiums 10,874 1,160 9,714
Bond Issuance Costs ( 4,149) ( 323) (3,826)
Deferred Refunding Costs ( 14,778) ( 1,847) (12,931)
Subtotal Airport 603,182 42,725 560,457
Public Landings
2009 Public Facilities Bonds 1.400%-5.625% 2030 29,936 39,866 1,577 38,289
Bond Premiums 195 11 184
Bond Issuance Costs ( 180) (10) (170)
Subtotal Public Landings 39,881 1,578 38,303
Public Marinas
2006 Public Facilities Bonds 4.000%-5.375% 2027 41,132 34,043 1,664 32,379
2009 Public Facilities Bonds 1.400%-5.625% 2030 918,040 854,164 33,780 820,384
2011 Public Facilities Bonds 2.00%-4.25% 2031 116,679 113,049 3,982 109,067
Bond Premiums 5,369 300 5,069
Bond Issuance Costs ( 4,993) ( 279) (4,714)
Subtotal Marinas 1,001,632 39,447 962,185
Sanitary District
2002 Refunding Bonds 3.00%-5.00% 2013 3,385,000 645,000 315,000 330,000
Maryland Water Quality-Cloverfields 5.09% 2013 4,282,209 214,111 214,111 -
Maryland Water Quality-Digester 4.41% 2013 1,121,377 95,161 95,161 -
Maryland Water Quality-Bay City 3.50% 2015 3,476,961 741,914 238,847 503,067
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 14,009,131 871,217 13,137,914
Queenstown Bank-Cloverfields Hookup 8.13% 2015 435,000 108,844 36,431 72,413
Queenstown Bank-Bay City Hookup 7.90% 2015 205,000 69,798 15,415 54,383
Subtotal Debt 15,883,959 1,786,182 14,097,777
Prior Issue Deferred Refunding Costs ( 13,333) ( 13,333) -
Subtotal Sanitary District 15,870,626 1,772,849 14,097,777
Total Enterprise Debt before
Other Post-Employment Benefit Obligation and Compensated Absences 18,175,502 1,933,362 16,242,140
Other Post-Employment Benefit Obligation 3,826,257 - 3,826,257
Accrued Compensated Absences 309,086 178,617 130,469
Total Enterprise Funds $ 22,310,845 $ 2,111,979 $ 20,198,866
-83-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2012, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2013 $ 479,738 $ 122,299 $ 602,037 $ 1,471,182 $ 267,198 $ 1,738,380
2014 497,275 101,147 598,422 1,183,289 219,140 1,402,429
2015 174,769 86,563 261,332 1,195,544 197,010 1,392,554
2016 177,336 79,949 257,285 917,106 163,082 1,080,188
2017 179,901 73,084 252,985 906,791 153,121 1,059,912
2018-2022 731,734 255,748 987,482 4,670,778 627,773 5,298,551
2023-2027 477,485 135,599 613,084 4,894,269 389,515 5,283,784
2028-2031 265,194 23,439 288,633 - - -
$ 2,983,432 $ 877,828 $ 3,861,260 $ 15,238,959 $ 2,016,839 $ 17,255,798
These repayment schedules exclude bond premiums, net of issuance costs ($28,328) and deferred refunding costs
(negative $75,217).
For the year ended June 30, 2012, total principal and interest of $2,121,145 and $444,615, respectively, was incurred by
business-type activities relating to bonds and notes payable.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
C. DEFEASANCE OF DEBT
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
On April 17, 2012, Queen Anne’s County issued Public Facilities Refunding Bonds of 2012 for $8,010,000. These
General Obligation Bonds carry interest rates of 2.000 to 4.000 percent and mature serially through 2023. The net
proceeds of $8,557,454 (after receipt of $547,454, a re-offering premium net of underwriting fees, insurance, and other
issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust
with an escrow agent to provide for all future debt service payments on the 2003 Series bonds. As a result, the 2003
Series bonds are considered to be defeased and the liability for those bonds has been removed from the government-
wide statement of net assets.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old
debt of $337,454. This difference, reported in the accompanying financial statements as deferred refunding costs, is
being charged to operations through fiscal year 2023 (shorter of the life of the 2003 bonds compared to the 2012 bonds)
using the effective-interest method. The County completed the advance refunding to reduce its total debt service
payments over the next 11 years by $972,682 and to obtain an economic gain (difference between the present values of
the old and new debt service payments) of 870,649.
D. RECLASSIFICATION OF DEBT
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
In fiscal year 2012, Queen Anne’s County reached an agreement with the Queen Anne’s County Public Housing
Authority whereby the two parties determined that the Housing Authority would become a separate entity from the
County effective July 1, 2012. In fiscal years 2012 and prior, the Housing Authority, operating as a component unit
of the County, had recorded bond debt on its books related to its Foxxtown Apartment Community and Scattered
Housing Program. In light of the aforementioned County/Housing Authority separation, and because the County is
ultimately liable for the bond debt, the County has recorded a liability (and a corresponding receivable due from the
Housing Authority) on its books in the amount of $1,360,643, which represents the Housing Authority’s
indebtedness to the County with respect to the bonds.
E. LEASE OBLIGATIONS
CAPITAL LEASE - PRIMARY GOVERNMENT
In Fiscal Year 2007, Queen Anne’s County entered into a capital lease agreement for two roll-off trucks for the Solid
Waste Department. This lease agreement qualified as a capital lease and was recorded at the present value of future
minimum lease payments at the inception of the lease. The lease was a five year note and the final payment was
made in January 2012.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
E. LEASE OBLIGATIONS (CONTINUED)
OPERATING LEASE – PRIMARY GOVERNMENT
In October 2009, Queen Anne’s County entered into an operating lease agreement as lessor for ground space at the
Bay Bridge Airport. The Airport leased a parcel of land approximately 9,000 square feet to CSP Properties, LLC
beginning in November 2009 for a term of twenty-five years, ending in fiscal year 2035. Included in the lease
agreement is the requirement that the lessee, CSP Properties, LLC, construct an aircraft hangar at its sole expense,
subject to certain criteria. At the end of the lease, the aircraft hangar and any improvements made to it become the
sole property of the Bay Bridge Airport.
Lease revenues for the year ended June 30, 2012 amounted to $5,310. Future lease revenues are as follows:
Fiscal Year Ending lease
June 30, payments
2013 $ 5,381
2014 5,416
2015 5,416
2016 5,488
2017 5,525
2018-2022 28,103
2023-2027 29,046
2028-2032 30,060
2033-2035 14,354
Minimum Future Rental Revenue $ 128,789
F. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In August 2009, Queen Anne’s County adopted Resolution No. 09-13, establishing 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 five-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; (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; and
(5) review and revise this Debt Policy as necessary no later than September 1, 2012.
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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 10 – 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, 2012 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 6,721,202 $ 3,244,564 $ 9,965,766
Accounts Receivable (Net) 10,778 40,429 51,207
Subtotal 6,731,980 3,284,993 10,016,973
LESS Current Liabilities Associated with Restricted Assets
Current Portion of Bonds Payable from Restricted Assets - (51,846) (51,846)
Net Current Restricted Assets 6,731,980 3,233,147 9,965,127
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 985,475 1,117,105 2,102,580
LESS Noncurrent Liabilities Payable from Noncurrent Restricted Assets
Unearned Revenue (985,475) (1,039,655) (2,025,130)
Net Noncurrent Restricted Assets - 77,450 77,450
Net Restricted Assets $ 6,731,980 $ 3,310,597 $ 10,042,577
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
B. RESTRICTED NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Assets Invested in Capital Assets, Net of Related Debt, for governmental activities, is calculated as follows:
Governmental Activities
Total Debt excluding Compensated Absences and OPEB Obligation $ (98,016,519)
Add back: Debt relating to Board of Education Assets $ 64,045,933
Add back: Unspent portion of Bond Proceeds for Board of Education debt 4,232,909
Add back: Unspent portion of Bond Proceeds for Governmental debt 2,381,012
Add back: Debt relating to PHA 1,360,643
Add back: Debt relating to non-capital assets (Dredging) 665,341
Add back debt unrelated to Capital Assets 72,685,838
Net Assets Invested in Capital Assets 142,767,665
Total Capital Assets, net of related debt $ 117,436,984
BUSINESS-TYPE ACTIVITIES
Net Assets Invested in Capital Assets, Net of Related Debt; Restricted; and Unrestricted Net Assets, for business-type
activities, are as follows:
Sanitary District Non-Major Total
Sewer Water Restricted Debt Service Total Bay Bridge Enterprise Enterprise
Business-Type Activities Operating Operating Fund Fund Sanitary Airport Funds Funds
Capital Assets, net of Accumulated Depreciation $ 56,821,259 $ 1 5,718,350 $ - $ - $ 72,539,609 $ 14,557,014 $ 8,791,632 $ 95,888,255
Less: Debt excluding Compensated Absences
and OPEB Obligation (15,092,701) (599,283) - - (15,691,984) (603,182) (1,701,694) (17,996,860)
Invested in Capital Assets, Net of Related Debt 41,728,558 1 5,119,067 - - 56,847,625 13,953,832 7,089,938 77,891,395
Restricted Net Assets
Debt Service - - - 2,760,210 2,760,210 - 438 2,760,648
Capital Projects - - 753,300 - 753,300 - - 753,300
Total Restricted Net Assets - - 753,300 2,760,210 3,513,510 - 438 3,513,948
Total Unrestricted Net Assets 4,092,903 2 ,498,719 5,978,680 - 12,570,302 (420,453) (147,027) 12,002,822
Total Net Assets $ 45,821,461 $ 1 7,617,786 $ 6,731,980 $ 2,760,210 $ 72,931,437 $ 13,533,379 $ 6,943,349 $ 93,408,165
Sanitary District debt, excluding compensated absences and OPEB obligation of $15,691,984 above, also excludes
$178,642 from the Debt Service Fund, as there are no capital assets related to that debt.
-88-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 10 – 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 Non-Major Governmental
Governmental Funds Fund Capital Capital Governmental Funds
Nonspendable
Inventory $ 555,215 $ - $ - $ - $ 555,215
Loans Receivable - 1,360,643 - 3,775,381 5,136,024
Subtotal Nonspendable 555,215 1,360,643 - 3,775,381 5,691,239
Restricted
Donor-Specified Purposes 422 - - 4,747 5,169
Mosquito Control 149,045 - - - 149,045
Unspent Bond Proceeds - 6,613,921 - - 6,613,921
Impact Fees - 248,663 - 1,168,989 1,417,652
Other 191,203 4,198 - 4,214,774 4,410,175
Subtotal Restricted 340,670 6,866,782 - 5,388,510 12,595,962
Committed
Developer Exactions - 76,741 774,913 - 851,654
Rubble Surcharge 695,944 - - - 695,944
Courthouse Project - 1,044,179 - - 1,044,179
Other - 158,916 - - 158,916
Subtotal Committed 695,944 1,279,836 774,913 - 2,750,693
Assigned
Capital Projects - 12,833,662 1,212,685 - 14,046,347
Subsequent Years' Expenditures - 4,401,507 - - 4,401,507
Other - - - 206,163 206,163
Subtotal Assigned - 17,235,169 1,212,685 206,163 18,654,017
Unassigned
General Fund 11,207,265 - - - 11,207,265
Other - - - (157,828) (157,828)
Subtotal Unassigned 11,207,265 - - (157,828) 11,049,437
Total Governmental Funds Balances $ 12,799,094 $ 26,742,430 $ 1,987,598 $ 9 ,212,226 $ 50,741,348
-89-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 11 - 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 2012 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 - For the last three years, settlements have not exceeded insurance coverage for any type of policy in
effect.
-90-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 12 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne's County, Maryland, and its related agencies
including the Housing Authority, are covered by one of the statewide contributory pension systems of the State of
Maryland.
PRIMARY GOVERNMENT AND PUBLIC HOUSING AUTHORITY
COST-SHARING MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLANS
Description of Plans
The County participates in the following cost-sharing multiple-employer pension plans that are administered by the
State of Maryland.
The Employees Pension System of the State of Maryland (Pension System) was established January 1, 1980. The
Pension System covers employees hired after December 31, 1979, as well as Retirement System participants who
have voluntarily joined the Pension System.
The Employees Contributory Pension System of the State of Maryland (Contributory Pension System) was
established July 1, 1998. As of July 1, 1999, and retroactively to July 1, 1998, the County elected to participate in
the Contributory Pension System for all service earned on or after July 1, 1998.
Effective the first payroll in fiscal year 2007, the County elected to provide its employees with the “Alternate
Contributory Pension Selection Plan of the State of Maryland” (Alternate Contributory Pension System), under Title 23
of the State Pension Article. This plan is an enhanced version of the two pension systems described above, and, as such,
includes provisions that originate in those plans. Eligible employees not covered by LEOPS, which is described below,
are required to participate in this alternate plan in lieu of other plans previously offered. At this time, all current
employees not covered by LEOPS participate in the Alternate Contributory Pension System.
The Law Enforcement Officers Pension System (LEOPS) was established July 2, 1990 and adopted by the County
on July 1, 2004. LEOPS currently covers uniformed law enforcement officers of the Sheriff’s Department.
Under the terms of the Alternate Contributory Pension System, a member may retire after 30 years of service
regardless of age; at age 65 with two years of service; at age 64 with three years of service; at age 63 with four years
of service; or at age 62 with at least five years of service. An employee may also take early retirement with reduced
benefits at age 55 with 15 years of service. A member terminating employment before attaining retirement age, but
after completing five years of eligible service, becomes eligible for a vested pension allowance upon reaching age
62.
Under the terms of the LEOPS, a member may retire with full benefits upon attaining age 50 or after completing 25
years of eligible service regardless of age. LEOPS members are not eligible for early service retirement allowances.
A member terminating employment before attaining retirement age, but after completing five years of eligible
service, becomes eligible for a vested pension allowance upon reaching age 50.
On retirement from service, a member of any of these plans shall receive an annual service retirement allowance
based on the member's average final compensation (based on the highest three years’ wages) and years of creditable
service multiplied by a factor. This factor varies from 1.2% to 1.8% for the Alternate Plan or 2.0% for LEOPS. The
factor is applied per eligible service year, depending on employee/employer contributions and other plan-specific
provisions. Early retirement, where available, is subject to provisions that reduce the benefit received.
-91-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 12 - RETIREMENT PLANS (CONTINUED)
PRIMARY GOVERNMENT AND PUBLIC HOUSING AUTHORITY (CONTINUED)
Benefits under these plans are established under the State Personnel and Pensions Article of the Annotated Code of
Maryland.
The State Retirement and Pension System of Maryland issues a comprehensive annual financial report that includes
disclosures regarding: actuarial value of assets; total actuarial accrued liability; unfunded actuarial accrued liability,
if any; and funded liability ratio. This report can be obtained from the agency’s office as follows:
State Retirement and Pension System of Maryland
120 E. Baltimore St, Suite 1601
Baltimore, Maryland 21202-1600
Funding Policy
Obligations to contribute to the plans are established under the Annotated Code of Maryland. Employees who are
members of these two plans contribute a percentage of their gross employee compensation. Members of the Alternate
Contributory Pension System contribute 7 percent and LEOPS members contribute 6 percent.
Required contributions under the plans, which are not funded by employee contributions, are funded entirely by the
County. Contributions by the County to both State plans take place during the fiscal year and are based upon salaries for
the preceding fiscal year. The County contribution for the year ending June 30, 2012 is based on salaries for the year
ending June 30, 2011. The contribution requirements of plan members of the reporting entity are established and may
be amended by the Maryland State Pension System Board of Trustees. The County’s contributions for the fiscal years
ending June 30th were equal to the actuarially determined amounts as follows:
Fiscal Year Ending
Retirement Plan Contributions June 30, 2012 June 30, 2011 June 30, 2010
Total Payroll $ 2 4,033,001 $ 2 8,037,262 $ 2 7,860,546
Covered Payroll
Pension System 1 7,984,029 2 0,585,096 2 1,932,213
LEOPS 2 ,683,684 2 ,642,996 2,743,928
Expenditure/Expense
Pension System 2 ,075,122 2 ,415,867 1,633,860
LEOPS 6 89,232 7 34,768 652,045
-92-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 12 - RETIREMENT PLANS (CONTINUED)
OTHER COMPONENT UNITS
Queen Anne’s County Board Of Education
The employees of the Board of Education (other than part-time employees not eligible for participation in the plans)
are covered by one of four defined-benefit retirement plans that are administered by the State Retirement and
Pension System of Maryland. The Board’s share of contributions for teachers and administration employees is
primarily the responsibility of the State. In fiscal year 2012, State contributions on behalf of the Board are
approximately $6,793,968. This contribution is recognized as both revenue and expenditure for the Board. An
additional $843,658 is contributed by the Board of Education for other covered employees.
Detailed information concerning the Queen Anne's County Board Of Education retirement plan is presented in their June
30, 2012 financial statements, which are publicly available.
Queen Anne’s County Free Library
The employees of the Library (other than part-time employees not eligible for participation in the plans) are covered
under one of four defined-benefit retirement plans that are administered by the State Retirement and Pension System
of Maryland. The Library’s share of contributions for employees is primarily the responsibility of the State. In fiscal
year 2012, State contributions on behalf of the Library are approximately $113,678. These contributions are
recognized as both revenue and expenditures for the Library. An additional $57,848 is contributed by the Library for
other covered employees.
Detailed information concerning the Queen Anne's County Free Library retirement plan is presented in their June 30,
2012 financial statements, which are publicly available.
NOTE 13 - 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS
Other Post-Employment Benefit Trust (OPEB Trust)
On June 23, 2009, the County enacted County Ordinance No. 09-12, which established a Trust entity entitled “Other
Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County Commissioners of Kent
County, and Participating Agencies” (OPEB Trust). The purpose of the OPEB Trust is to: (1) fund costs of health
insurance and other post-employment benefits to eligible retirees of the primary government (including the Queen
Anne’s County Public Housing Authority), the Queen Anne’s County Board of Education, and the Queen Anne’s
County Free Library; (2) accumulate and invest financial resources for this purpose; (3) provide health insurance and
other post-employment benefits for eligible retirees; and (4) provide related administrative services.
Other agencies and political subdivisions have the right to participate in this Trust now and in the future. Such
unrelated entities may deposit funds with the Trust for investment purposes related to their OPEB plans. At June 30,
2012, funds in the amount of $156,040 were reported as a liability of the Trust to Kent County, Maryland. Kent
County is holding these assets for the benefit of their plan participants.
OPEB Trustees have exclusive authority to manage the assets of the Trust. The Board of Trustees consists of five
members: two representing Queen Anne’s County Government; two representing the Queen Anne’s County Board
of Education; and one representing Kent County. In lieu of separate financial statements for the OPEB Trust, Queen
Anne’s County presents the Trust entity’s complete financial statements within this document.
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 below for the primary
government and (2) in financial statements issued separately for all other participants, which are component units of
the primary government. Addresses for other participants are noted below in this Note.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
Primary Government
The County’s post-employment plan provides medical insurance benefits to retirees and their eligible dependents.
Depending on the years of County service, the retiree is eligible for a subsidy provided by the County for a specific
portion of the cost of the health insurance. The following table describes the primary government’s health insurance
post-employment benefit plan in effect for employees who retire on or after September 2, 2011. For employees who
retired prior to September 2, 2011, the plan remains the same, except that the percentages for PPO health plans are
the same as outlined below for the EPO plans.
Years of County Service Prior to Retirement and eligible retiree hired prior to
Subsidy Level Description
July 1, 2010
Retiree retired with 15 years of County service Retiree and eligible dependents shall be entitled to receive fifty-four percent (54%)
of selected County health insurance premium costs.
Retiree retired with 16 years of County service but less than 25 years of County Retiree and eligible dependents shall be entitled to receive three and one tenths
Service percent (3.1%) for the PPO or three and six tenths percent (3.6%) for the EPO of
selected County health insurance premium costs for every full year of County
service.
Retiree with 25 years or more of County Service or a person in receipt of a special Retiree and eligible dependents shall be entitled to receive eighty-five percent (85%)
death benefit under the Maryland State Retirement/Pension System of selected County health insurance premium costs for the PPO health plan and
ninety percent (90%) for the EPO health plan.
Retiree retired with less than 15 years of County service Retiree and eligible dependents shall be entitled to remain in the County's health
insurance plan if they pay the full rate to cover all County health insurance premium
costs.
All eligible retirees hired prior to July 1, 2010 Coverage may include the retiree, spouse and dependents. Coverage does not cease
upon death of the retiree.
Years of County Service Prior to Retirement and eligible retiree hired on or
Subsidy Level Description
after July 1, 2010
All eligible retirees hired or rehired on or after July 1, 2010 Retiree shall receive a health insurance subsidy based on the retiree's years of service
as outlined above but shall pay the full additional cost for coverage of any eligible
dependant.
Component Units
The other participating entities provide medical benefits to eligible employees who retire from employment with
each respective agency. Benefits and eligibility requirements vary among the different agencies. Each agency pays
a percentage of the health insurance premium based on certain criteria, including length of service. In addition to
medical benefits, the Board of Education pays the cost of providing term life insurance for its retirees in varying
amounts, depending upon length of service and date of retirement.
For detailed information on plan benefits provided by other participating agencies, as well as actuarial assumptions
used to estimate OPEB obligations, see the agencies’ separately-issued financial statements, which can be obtained
from their administrative offices as listed below:
Board of Education of Queen Anne’s County Queen Anne’s County
Queen Anne’s County Housing Authority Free Library
202 Chesterfield Avenue P.O. Box 280 121 S. Commerce Street
Centreville, Maryland 21617 Finance Office Centreville, MD 21617
205 East Water Street, Suite 100
Centreville, Maryland 21617
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Membership
Plan membership as of the date of the most recent actuarial valuation consisted of the following:
Plan Membership Active Retirees
County and
Housing Authority 404 1 17
Board of Education 830 2 91
Library 13 4
Total 1,247 4 12
Basis of Accounting and Financial Statements
The Plan’s financial information is prepared on the full accrual basis accounting. Expenses are recognized as
retirees’ insurance costs are incurred.
For further financial information, Summary and Combining financial statements may be found on pages 48 to 49 and
146 to 147, respectively. Required Supplementary Information may be found after these Notes, on page 106.
Contributions
Each participating agency has the authority to establish and amend benefit provisions that result in contribution
requirements of the plan members and the agency. The Plans are contributory plans in which the agencies and their
retired members and beneficiaries contribute certain amounts toward the current cost of the healthcare benefits, based on
an actuarial valuation.
Net assets held in trust for above entities as of June 30, 2012 consisted of $1,137,429. This is an increase of $528,076
from the June 30, 2011 balance of $609,353. The majority of the increase was a result of $489,496 relating to Queen
Anne’s County deposited into the trust during the fiscal year. These funds were withdrawn during the prior year in
order to fund current post-employment benefits, but were added back to the trust in fiscal year 2012.
To avoid reporting a liability for the current year’s contribution, each employer must contribute its annual required
contribution (ARC), which is an amount actuarially determined to be in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal
cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed 30 years.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation
County and Total
Housing Board of for All
Authority Education Library Employers
Actuarial accrued liability (AAL) $ 76,949,000 $ 77,831,000 $ 3,094,000 $ 157,874,000
Actuarial value of plan assets 77,000 502,358 30,000 609,358
Unfunded actuarial accrued liability (UAAL) $ 76,872,000 $ 77,328,642 $ 3,064,000 $ 157,264,642
Annual Required Contribution (ARC) $ 7,998,000 $ 7,005,000 $ 251,000 $ 15,254,000
Interest on Net OPEB Obligations 672,000 578,000 21,000 1,271,000
Adjustment to ARC (732,000) (630,000) (22,000) (1,384,000)
Total Annual OPEB Cost 7,938,000 6,953,000 250,000 15,141,000
Less: Trust Contributions (526,090) - - (526,090)
Less: Pay-As-You-Go Contributions (1,022,887) (1,409,451) (19,600) (2,451,938)
Total Contributions (1,548,977) (1,409,451) (19,600) (2,978,028)
Increase in Net OPEB Obligation 6,389,023 5,543,549 230,400 12,162,972
Net OPEB Obligation beginning of year 16,876,533 14,794,329 561,264 32,232,126
Net OPEB Obligation end of year $ 23,265,556 $ 20,337,878 $ 791,664 $ 44,395,098
Percent of Annual OPEB Cost Contributed 19.4% 20.1% 7.8% 19.5%
Covered payroll $ 18,903,632 $ 29,268,937 $ 971,915 $ 49,144,484
The Net OPEB Obligation (NOO) of $23,265,556 at the end of the year for the County and Housing Authority consisted
of liabilities of $22,829,978 for the County ($19,003,721 for Governmental Activities and $3,826,257 for Business Type
Activities) and $435,578 for the Housing Authority.
The increase in net OPEB Obligation (NOO) for Queen Anne’s County and the Housing Authority, listed above in the
amount of $6,389,023, consists of $6,298,517 for the Queen Anne’s County portion and $90,506 for the Housing
Authority.
The schedule of funding progress, presented as required supplementary information (RSI) on page 106 following the
Notes, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits. This relationship is represented by the
funded ratio.
In the Queen Anne’s County Library financial statements, the net OPEB obligation at the end of the year differs from
the figure in the above. The above table shows an ending balance of $791,664 while the Library financial statements
show an ending balance of $721,600. The Library noted that the prior year amounts were restated in order to match
actuarial valuations. However, we believe the difference is a result of using estimates for contributions, rather than
actual amounts. The Library made a note of this and plans to adjust in fiscal year 2013.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Schedule of Participating Agencies’ Contributions
The Schedule of Participating Agencies’ Contributions presents multiyear trend information that shows whether the
actual ARC contributed is increasing or decreasing over time relative to the annual pension cost, as shown by the
percentage of ARC contributed. Generally, the greater this percentage, the stronger the system is becoming.
Fiscal Annual Percentage Net OPEB
Percentage of Year Ended Postemployment ARC of ARC Obligation
ARC Contributed June 30 Benefit Cost Contributed Contributed (NOO)
County and
Housing Authority 2009 $ 5,312,000 $ 1,007,955 18.98% $ 4,304,045
2010 6,702,000 604,222 9.02% 6,097,778
2011 7,375,000 900,290 12.21% 6,474,710
2012 7,938,000 1,548,977 19.51% 6,389,023
27,327,000 4,061,444 14.86% 23,265,556
Board of Education 2009 5,907,000 1,534,955 25.99% 4,372,045
2010 6,340,000 1,176,586 18.56% 5,163,414
2011 6,535,000 1,276,130 19.53% 5,258,870
2012 6,953,000 1,409,451 20.27% 5,543,549
25,735,000 5,397,122 20.97% 20,337,878
Library 2009 178,000 38,234 21.48% 139,766
2010 212,000 12,200 5.75% 199,800
2011 234,000 12,302 5.26% 221,698
2012 250,000 19,600 7.84% 230,400
874,000 82,336 9.42% 791,664
Totals 2009 11,397,000 2,581,144 22.65% 8,815,856
2010 13,254,000 1,793,008 13.53% 11,460,992
2011 14,144,000 2,188,722 15.47% 11,955,278
2012 15,141,000 2,978,028 19.67% 12,162,972
$ 53,936,000 $ 9,540,902 17.69% $ 44,395,098
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Actuarial Methods and Assumptions
The actuarial valuations of the individual plans involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future, such as future employment, mortality, and healthcare costs. The
actuarially determined amounts regarding the funded status of the plans and the annual required contributions (ARC)
of the County and other participating agencies are subject to continual revision, as actual results are compared to past
expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the employer
and plan members) and include the types of benefits provided at the time of valuation and the historical pattern of
sharing benefit costs between employers and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value
of the assets, consistent with the long-term perspective of the calculations.
Actuarial assumptions used in the actuarial valuation for the County’s plan were:
Actuarial Assumptions for Primary Government
Actuarial valuation date October 1, 2011
Actuarial cost method Projected unit credit
Amortization method Closed
Amortization period 27 years (as of July 1, 2011)
Interest Assumptions 4.00% investment rate of return
Asset valuation method Market value of assets
Salary increases 3% per year
Mortality RP 2000, separate tables for males and females
Actuarial trend assumptions Based on Society of Actuaries Long Term
Medical Trend Model, the 2011 rate is 7.5
percent decreasing gradually. The rate in 2050 is
5.9 percent. The ultimate rate is 5.2 percent and
is attained in 2080.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 15 – DEFICIT EQUITY BALANCES
The following Non-Major Governmental Funds ended the year with deficit balances in unassigned fund balance:
Housing and Community Services Fund
The Housing and Community Services Fund has a negative unassigned fund balance of $91,081 as
of June 30, 2012. This negative balance will clear itself as the balance of outstanding loans receivable in Housing
and Community Services Fund decreases.
Capital Projects – Fire Company Impact Fees Fund
The Capital Projects – Fire Company Impact Fees Fund has a negative unassigned fund balance of $66,747 as of
June 30, 2012. This negative fund balance is the result of an overpayment to a particular fire department, and will
decrease over time as the incoming revenues offset the overpayment.
The following Enterprise Funds ended the year with deficit equity balances:
Bay Bridge Airport Enterprise Fund
The Bay Bridge Airport Enterprise Fund has a deficit balance in unrestricted net assets of $420,453 as of June 30,
2012.
Parks and Recreation – Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net assets of $327,863 as of
June 30, 2012.
Parks and Recreation – Property Management Enterprise Fund
The Property Management Enterprise Fund has a deficit balance in unrestricted net assets of $422,256 as of June 30,
2012.
Note that during the fiscal year 2013 budget process, 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 16 - COMMITMENTS AND CONTINGENCIES
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, 2012 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.
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.
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 $1,279,836 million has been committed, including $1,044,180 for the construction of a new
County Courthouse, $158,915 for infrastructure improvements in the Matapeake Business Park, and $76,741 for site
improvements pursuant to agreements with local developers. In the Roads Capital Projects Fund, $774,913 has been
contributed by developers and is committed to fund infrastructure improvements.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 17 – 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 31.04% financial interest in the Midshore Regional Landfill. In the event that 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.
During fiscal year 2011, the landfill located in Talbot County, Midshore I, was closed. As of June 30, 2012, total
closure and post closure costs were estimated at approximately $9.6 million. Midshore II, located in Caroline County,
was 5.07% filled. Closure and post closure costs for Midshore II are estimated at approximately $13.9 million.
Therefore, the total closure and post closure costs for both landfills are $23.5 million, with approximately $7.3 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 $9.6 million as of June 30,
2012, 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 $19.5 million. As of June 30, 2012,
$6.1 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. Queen Anne's County paid $374,888 in
tipping fees to the facility during fiscal 2012.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the
project participants as of June 30, 2011. MES expects to satisfy these requirements as of June 30, 2012 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 18 – 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, 2008, 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).
Since the testing program began in 2008, the County incurred a total of $242,000 in expenses, including $24,000 in
fiscal year 2012, to comply with the provisions of the program. 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; 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 November 2011, due to uneven results from the prior year’s monitoring tests, MDE requested the County submit a
technical plan to conduct an initial site injection, a measure which will include the application of decontaminating
chemicals to the soil in an effort to determine the dosage rate and the corresponding reduction in pollutants that can be
achieved. Based on the plan approved by MDE, the County awarded a contract for the initial injection, and performed
the remediation work in the summer of 2012. Since the results of this initial injection did not achieve the desired effects,
a follow up plan is being prepared, and a second site injection will be administered in the spring/summer of 2013. The
contract duration for the final injection will depend on the scope of work; however the County expects it to be
completed by the end of fiscal year 2014.
No liability has been recorded at this time since costs for both the initial and final site injections cannot be reliably
estimated. None of these outlays met the requirements for capitalization noted in GASB Statement 49 and they were not
capitalized.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 19 – COMBINATION OF ROADS BOARD FUND WITH GENERAL FUND
Beginning in fiscal year 2012, reporting for the Roads Board Operating Fund is consolidated with the General Fund. In
fiscal years 2011 and prior years, the Roads Board was reported as a Special Revenue Fund, with its major revenue
source being State-Shared Highway User Tax. However, at the beginning of fiscal year 2010, the State virtually ceased
sharing this tax with the Counties. Since the Roads Board revenue stream no longer meets the criteria required to report
the Roads Board as a Special Revenue Fund, it has become part of the General Fund in fiscal year 2012. The County
Commissioners of Queen Anne’s County approved this change in Ordinance No. 12-15.
NOTE 20 – SPECIAL ITEM
In Fiscal Year 2012, Queen Anne’s County reached an agreement with the Queen Anne’s County Public Housing
Authority whereby the two parties determined that the Housing Authority would become a separate entity from the
County effective July 1, 2012. In fiscal years 2012 and prior, the Housing Authority, operating as a component unit of
the County, had recorded bond debt on its books related to its Foxxtown Apartment Community and Scattered Housing
Program. In light of the aforementioned County/Housing Authority separation, and because the County is ultimately
liable for the bond debt, the County has recorded a liability (and a corresponding receivable due from the Housing
Authority) on its books in the amount of $1,360,643, which represents the Housing Authority’s indebtedness to the
County with respect to the bonds. Since the bonds were issued in prior years and this is a non-recurring material
transaction, the County recorded this transaction as a Special Item in the General Capital Projects fund in fiscal year
2012.
NOTE 21 – SUBSEQUENT EVENTS
Municipal Lease:
In August 2012, the County entered into a capital lease with Suntrust Equipment Financing & Leasing Corporation
for the purchase of five replacement vehicles for the Sheriff’s Office and two ambulances for Emergency Services.
The total amount of the lease was $564,073 and payable over five years. The first payment was due in August 2012.
The annual interest rate is 2.0118%. At the end of the lease, the County will own the vehicles.
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Required Supplementary Information
-105-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2012
OTHER POST-EMPLOYMENT BENEFITS TRUST
The following required supplementary information relates to OPEB plan described in Note 14. This information is
intended to help users assess the system’s funding status on a going-concern basis; assess progress made in
accumulating assets to pay benefits when due; and make comparisons among employers.
SCHEDULE OF FUNDING PROGRESS
The Schedule of Funding Progress presents multiyear trend information that shows whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Value of Unfunded UAAL as a
Assets at Accrued Accrued Percentage
Valuation Valuation Liability Liability Funded Covered of Covered
Funding Progress Date Date (AAL) (UAAL) Ratio Payroll Payroll
County and
Housing Authority July 1, 2008 $ - $ 49,107,000 $ 49,107,000 0.00% $ 23,690,163 207%
July 1, 2009 500,000 63,935,000 6 3,435,000 0.78% 23,778,696 267%
July 1, 2010 500,000 70,570,000 7 0,070,000 0.71% 20,439,972 343%
July 1, 2011 77,000 76,949,000 7 6,872,000 0.10% 18,903,632 407%
Board of Education July 1, 2008 - 62,759,000 6 2,759,000 0.00% 24,267,735 259%
July 1, 2009 500,000 67,450,000 6 6,950,000 0.74% 28,421,068 236%
July 1, 2010 500,000 73,060,000 7 2,560,000 0.68% 28,329,494 256%
July 1, 2011 502,358 77,831,000 7 7,328,642 0.65% 29,268,937 264%
Library July 1, 2008 - 2,010,000 2,010,000 0.00% 1 ,050,748 191%
July 1, 2009 30,000 2,614,000 2,584,000 1.15% 1 ,128,084 229%
July 1, 2010 30,000 2,902,000 2,872,000 1.03% 1 ,225,057 234%
July 1, 2011 30,000 3,094,000 3,064,000 0.97% 971,915 315%
Total July 1, 2008 - 113,876,000 113,876,000 0.00% 49,008,646 232%
July 1, 2009 1,030,000 1 33,999,000 132,969,000 0.77% 53,327,848 249%
July 1, 2010 1,030,000 1 46,532,000 145,502,000 0.70% 49,994,523 291%
July 1, 2011 $ 609,358 $ 157,874,000 $ 157,264,642 0.39% $ 49,144,484 320%
Analysis of the dollar amounts of plan net assets, actuarial accrued liability, and unfunded actuarial liability in isolation
can be misleading. Expressing the assets as a percentage of the actuarial accrued liability (Funded Ratio) provides one
indication of the system’s funding status on a going-concern basis. Analysis of this percentage over time indicates
whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the
system is becoming. In this fiscal year, the Funded Ratio is 0.39 percent, down from 0.70 percent the year before. The
majority of the decrease in the Funded Ratio relates to Queen Anne’s County as a result of funds withdrawn in the
previous fiscal year. Those funds were deposited back into the Trust during fiscal year 2012, however it does not show
in the table above due to the timing of the valuation.
Trends in the unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing
the unfunded accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation
and aids analysis of the system’s progress made in accumulating sufficient assets to pay benefits when due. Generally,
the smaller this percentage, the stronger the system is becoming. In this fiscal year, the UAAL as a percentage of
covered payroll is 320 percent, up from 291 percent the year before.
BUDGETARY COMPARISONS FOR THE GENERAL FUND
Required Supplementary Information provides budget-to-actual comparisons for the General Fund.
Budgets are adopted using the same method of accounting as that used for reporting purposes, i.e. according to generally
accepted accounting principles as used in the United States of America (GAAP).
-106-

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, 2012
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 65,852,256 $ 65,852,256 $ 65,881,777 $ 29,521
Local Income Tax 31,100,000 35,225,900 35,969,879 743,979
Admission and Amusement Taxes 225,000 225,000 183,634 (41,366)
Recordation Taxes 2,650,000 2,650,000 2,553,755 (96,245)
Hotel Taxes 420,000 420,000 468,382 48,382
State Shared Taxes 161,398 161,398 269,363 107,965
Licenses and Permits 858,603 843,602 877,365 33,763
Intergovernmental 2,140,609 2,171,784 1,949,802 (221,982)
Bond Interest Reimbursement - Build America Bond 430,707 430,707 432,212 1,505
Charges for Current Services 1,584,810 1,704,700 2,015,949 311,249
Fines and Forfeitures 17,800 23,800 41,627 17,827
Investment Income 115,000 115,000 56,439 (58,561)
Donations 26,800 27,237 8,009 (19,228)
Miscellaneous 172,833 153,834 1,198,705 1,044,871
Total Revenues 105,755,816 110,005,218 111,906,898 1,901,680
EXPENDITURES
GENERAL GOVERNMENT
Legislative 368,650 368,650 348,132 20,518
Public Information 262,307 279,185 249,993 29,192
Judicial
Circuit Court 474,071 436,218 405,537 30,681
Orphan's Court 74,192 75,092 75,030 62
State's Attorney 1,118,811 1,118,811 1,009,923 108,888
County Administrator 274,720 274,720 274,485 235
Board of Elections 510,003 510,003 426,044 83,959
Finance Office 1,027,735 1,106,184 977,960 128,224
Human Resources 487,747 487,747 447,844 39,903
Planning and Zoning 1,845,346 1,893,187 1,780,681 112,506
Information Technology 512,260 512,260 455,450 56,810
General Services 1,963,562 2,040,562 2,038,428 2,134
Legal Services 322,243 392,243 389,889 2,354
Total General Government 9,241,647 9,494,862 8,879,396 615,466
PUBLIC SAFETY
Sheriff's Office 6,085,019 6,091,294 6,089,371 1,923
Volunteer Fire and Rescue Services 2,895,695 2,895,694 2,838,149 57,545
Detention Center 4,395,652 4,410,313 3,962,390 447,923
Animal Control 731,579 736,541 726,662 9,879
Emergency Services 7,102,676 7,128,605 6,956,549 172,056
Total Public Safety 21,210,621 21,262,447 20,573,121 689,326
PUBLIC WORKS
Administration 389,201 310,752 259,043 51,709
Other Public Roads 25,008 25,008 12,085 12,923
Solid Waste Disposal 1,944,929 1,953,019 1,528,814 424,205
Engineering Division 642,449 642,449 545,969 96,480
Roads Division 4,583,184 3,983,184 3,436,294 546,890
Parks 1,917,469 1,917,469 1,662,548 254,921
Total Public Works 9,502,240 8,831,881 7,444,753 1,387,128
CONTINUED
-107-

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, 2012
(CONTINUED)
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
HEALTH
Health Department $ 1,665,972 $ 1,677,963 $ 1,604,462 $ 73,501
SOCIAL SERVICES
Social Services 330,392 346,610 253,854 92,756
EDUCATION
Board of Education 43,528,032 43,528,032 43,528,032 -
Chesapeake College 1,688,442 1,698,492 1,698,492 -
Total Education 45,216,474 4 5,226,524 4 5,226,524 -
LIBRARY
Queen Anne's County Free Library 1,276,393 1,278,393 1,277,993 400
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 259,433 259,433 243,235 16,198
Soil Conservation Service 138,770 138,770 125,493 13,277
Johnsongrass Program 115,376 115,376 95,772 19,604
4-H Park 64,378 64,878 64,580 298
Total Conservation of Natural Resources 577,957 578,457 529,080 49,377
ECONOMIC AND COMMUNITY DEVELOPMENT
Public Housing Authority 31,198 31,198 31,198 -
Economic Development & Tourism 477,356 463,633 458,823 4,810
Total Economic and Community Development 508,554 4 94,831 4 90,021 4,810
DEBT SERVICE
School Debt Service - Principal 4,995,824 5,361,596 5,361,596 -
School Debt Service - Interest 2,854,951 2,997,989 2,997,989 -
County Debt Service - Principal 1,878,287 1,570,104 1,569,688 416
County Debt Service - Interest 1,292,320 1,151,066 1,104,695 46,371
Total Debt Service 11,021,382 11,080,755 11,033,968 46,787
INTERGOVERNMENTAL
Aid to Municipalities 232,686 234,686 234,356 330
SDAT Costs from State 360,000 360,450 360,421 29
Pension Admin Costs from State 152,000 151,550 - 151,550
Total Intergovernmental 744,686 746,686 594,777 151,909
CONTINUED
-108-

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, 2012
(CONTINUED)
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
MISCELLANEOUS
Aid to Other Agencies $ 30,952 $ 30,952 $ 29,351 $ 1,601
Insurance & Benefits 1,580,000 2,530,000 2,519,422 10,578
Transfer to OPEB Fund - 489,496 489,496 -
Contingencies 64,900 72,900 71,656 1,244
Salary Reversions (650,000) (650,000) - (650,000)
Total Miscellaneous 1,025,852 2,473,348 3,109,925 (636,577)
Total Expenditures 102,322,170 103,492,757 101,017,874 2,474,883
Excess of Revenues Over Expenditures 3,433,646 6,512,461 10,889,024 4,376,563
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - 24,030 24,030
Insurance Proceeds - - 9,407 9,407
Transfers In From:
Roads Capital Projects 252,843 252,843 1,420,413 1,167,570
Impact Fees - School 808,120 808,120 808,120 -
Kent Narrows 39,408 39,408 39,408 -
Community Partnerships 18,000 17,000 21,594 4,594
Total Transfers In 1,118,371 1,117,371 2,289,535 1,172,164
Transfers Out To:
General Capital Projects Fund 2,053,474 5,024,831 5,024,831 -
Roads Capital Projects Fund - 600,000 600,000 -
Department of Aging 1,182,119 1,181,221 1,147,168 34,053
Department of Housing and Community Services 409,167 409,167 289,100 120,067
Community Partnerships 181,094 181,094 147,265 33,829
Law Library 6,525 6,525 1,500 5,025
Agricultural Transfer Tax Fund 10,000 10,000 10,000 -
Impact Fees - Fire Companies/Contingencies - 4,135 4,133 2
Sanitary District - Sewer 4,800 4,800 - 4,800
Sanitary District - Water 81,411 81,411 81,411 -
Airport Enterprise Fund 73,674 73,674 63,079 10,595
Golf Course Enterprise Fund 194,758 194,758 140,868 53,890
Recreation Programs Enterprise Fund 295,638 295,638 295,638 -
Property Management Enterprise Fund 28,130 28,130 25,000 3,130
Marinas Enterprise Fund 101,227 101,227 - 101,227
Total Transfers Out 4,622,017 8,196,611 7,829,993 366,618
Total Other Financing Sources (Uses) (3,503,646) (7,079,240) (5,507,021) 1,572,219
Net Increase (Decrease) in Fund Balance $ (70,000) $ (566,779) 5,382,003 $ 5,948,782
Fund Balances, July 1 7,417,091
Fund Balances, June 30 $ 12,799,094
-109-

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.
-110-

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.
-111-

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.
Community Partnerships 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.
Purchase of Developments Rights Fund – This fund accounts for activities funded by Queen Anne’s
County to acquire easements to restrict the use of agricultural land and woodland and is included in the
conservation of natural resources function.
Dredging Special Assessments – This fund accounts for activities funded by special assessment funds
collected to repay loans for specific dredging projects that benefited Price’s Creek and Grove Creek and is
included in the conservation of natural resources function.
Kent Narrows – This fund accounts for activities funded by tax revenues to repay parking improvement
bonds and is included in the economic and community development function.
-112-

Capital Projects – School Impact 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.
-113-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
COMMUNITY
HOUSING AND PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING FOR CRITICAL
OF AGING SERVICES LOAN FUND CHILDREN AREAS
ASSETS
Cash and Cash Equivalents $ 196,974 $ 1,079,705 $ 448,729 $ 912,515 $ 150,342
Receivables
Accounts Receivable (Net) - 9,586 17,777 9,954 -
Loans Receivable - 3,645,674 129,707 - -
Special Assessments (Net) - - - - -
Due from Other Governments 179,102 24,809 - 164,615 -
Total Assets $ 376,076 $ 4,759,774 $ 596,213 $ 1,087,084 $ 150,342
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 85,666 $ 17,089 $ - $ 217,255 $ -
Due to Other Funds 117,042 92,278 - 3,096 -
Due to Other Governmental Agencies 43,694 - - 345,455 -
Deferred Revenue 6,620 40,450 - 445,656 -
Total Liabilities 253,022 149,817 - 1,011,462 -
Fund Balances
Nonspendable - 3,645,674 129,707 - -
Restricted 4,747 1,055,364 466,506 - 150,342
Assigned 118,307 - - 75,622 -
Unassigned - (91,081) - - -
Total Fund Balances 123,054 4,609,957 596,213 75,622 150,342
Total Liabilities and Fund Balances $ 376,076 $ 4,759,774 $ 596,213 $ 1,087,084 $ 150,342
-114-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
(CONTINUED)
SHERIFF'S
DRUG INMATE PURCHASE OF
LAW TASK WELFARE AGRICULTURAL RURAL DEVELOPMENT
LIBRARY FORCE FUND TRANSFER LEGACY RIGHTS
$ 12,365 $ 268,825 $ 2 32,799 $ 48,792 $ 419,299 $ 1,325,834
- - 5 ,754 568 - 572
- - - - - -
- - - - - -
- - - - - 85,937
$ 12,365 $ 268,825 $ 2 38,553 $ 49,360 $ 419,299 $ 1,412,343
$ 131 $ 69,584 $ 5 ,784 $ - $ - $ -
- - - - - -
- - 9 ,897 - - -
- - - - - -
131 69,584 1 5,681 - - -
- - - - - -
- 199,241 2 22,872 49,360 419,299 1,412,343
12,234 - - - - -
- - - - - -
12,234 199,241 2 22,872 49,360 419,299 1,412,343
$ 12,365 $ 268,825 $ 2 38,553 $ 49,360 $ 419,299 $ 1,412,343
CONTINUED
-115-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
(CONTINUED)
CAPITAL PROJECTS
DREDGING PARKS AND TOTAL
SPECIAL KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 17,574 $ 221,951 $ 777,787 $ 151,166 $ 240,036 $ 6,504,693
Receivables
Accounts Receivable (Net) 379 - - - - 44,590
Loans Receivable - - 796,116 89,263 85,222 4,745,982
Special Assessments (Net) 638,104 - - - - 638,104
Due from Other Governments - - - - - 454,463
Total Assets $ 656,057 $ 221,951 $ 1,573,903 $ 240,429 $ 325,258 $ 12,387,832
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ - $ 457 $ - $ - $ - $ 395,966
Due to Other Funds - - - 66,747 - 279,163
Due to Other Governmental Agencies - - - - - 399,046
Deferred Revenue 638,104 - 796,116 89,263 85,222 2,101,431
Total Liabilities 638,104 457 796,116 156,010 85,222 3,175,606
Fund Balances
Nonspendable - - - - - 3,775,381
Restricted 17,953 221,494 777,787 151,166 240,036 5,388,510
Assigned - - - - - 206,163
Unassigned - - - (66,747) - (157,828)
Total Fund Balances 17,953 221,494 777,787 84,419 240,036 9,212,226
Total Liabilities and Fund Balances $ 656,057 $ 221,951 $ 1,573,903 $ 240,429 $ 325,258 $ 12,387,832
-116-

-117-

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, 2012
COMMUNITY
HOUSING AND PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING FOR CRITICAL
OF AGING SERVICES LOAN FUND CHILDREN AREAS
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ -
Recordation Taxes - 114,163 - - -
State Shared Taxes - - - - -
Intergovernmental 844,937 275,458 - 1,062,029 -
Charges for Current Services 71,655 155,000 - - 18,999
Fines and Forfeitures - - - - -
Investment Income 91 6,997 12,944 53 -
Donations 33,788 3,000 - 1,535 -
Miscellaneous 1,350 - 200 19,640 -
Total Revenues 951,821 554,618 13,144 1,083,257 18,999
EXPENDITURES
Current
General Government - - - - -
Public Safety - - - - -
Social Services 2,093,750 - - 1,185,418 -
Conservation of Natural Resources - - - - -
Economic/Community Development - 530,822 - - -
Capital Outlay 38,684 - - 23,457 -
Debt Service
Principal - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 2,132,434 530,822 - 1,208,875 -
Excess of Revenues Over (Under) Expenditures (1,180,613) 23,796 13,144 (125,618) 18,999
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 23,366 - - - -
Insurance Proceeds 2,224 - - - -
Transfers In 1,147,168 289,100 - 147,265 -
Transfers Out - - - (21,594) -
Other Financing Sources (Uses) 1,172,758 289,100 - 125,671 -
Net Increase (Decrease) in Fund Balances (7,855) 312,896 13,144 53 18,999
Fund Balances, July 1 130,909 4,297,061 583,069 75,569 131,343
Fund Balances, June 30 $ 123,054 $ 4,609,957 $ 596,213 $ 75,622 $ 150,342
-118-

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, 2012
(CONTINUED)
SHERIFF'S
DRUG INMATE PURCHASE OF
LAW TASK WELFARE AGRICULTURAL RURAL DEVELOPMENT
LIBRARY FORCE FUND TRANSFER LEGACY RIGHTS
$ - $ - $ - $ - $ - $ -
- - - - - 761,085
- - - 36,872 - -
- - 8,073 - 892,631 -
9,575 - 67,337 - - -
15,518 165,538 - - - -
7 227 259 163 811 1,987
- - - - - -
- - 31,957 - - -
25,100 165,765 107,626 37,035 893,442 763,072
12,773 - - - - -
- 53,827 123,278 - - -
- - - - - -
- - - 297,117 1,499,319 268,844
- - - - - -
- - - - - -
- - - - - 119,598
- - - - - 14,255
12,773 53,827 123,278 297,117 1,499,319 402,697
12,327 111,938 ( 15,652) (260,082) ( 605,877) 360,375
- - - - - -
- - - - - -
1,500 - - 132,349 - -
- - - - - ( 122,349)
1,500 - - 132,349 - ( 122,349)
13,827 111,938 ( 15,652) (127,733) ( 605,877) 238,026
( 1,593) 87,303 238,524 177,093 1,025,176 1,174,317
$ 12,234 $ 199,241 $ 222,872 $ 49,360 $ 419,299 $ 1,412,343
CONTINUED
-119-

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, 2012
(CONTINUED)
CAPITAL PROJECTS
DREDGING PARKS AND TOTAL
SPECIAL KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ - $ 37,055 $ - $ - $ - $ 37,055
Recordation Taxes - - - - - 875,248
State Shared Taxes - - - - - 36,872
Intergovernmental - - - - - 3,083,128
Charges for Current Services 4 5,290 - 1,169,425 148,827 139,126 1,825,234
Fines and Forfeitures - - - - - 181,056
Investment Income 807 - 2 73 226 1 99 25,044
Donations - - - - - 38,323
Miscellaneous - - - - - 53,147
Total Revenues 4 6,097 37,055 1,169,698 149,053 139,325 6,155,107
EXPENDITURES
Current -
General Government - - - - - 12,773
Public Safety - - - 234,851 - 411,956
Social Services - - - - - 3,279,168
Conservation of Natural Resources - - - - - 2,065,280
Economic/Community Development - 5,370 - - - 536,192
Capital Outlay - - - - - 62,141
Debt Service
Principal 4 4,425 - - - - 164,023
Interest and Fiscal Charges - - - - - 14,255
Total Expenditures 4 4,425 5,370 - 234,851 - 6,545,788
Excess of Revenues Over (Under) Expenditures 1,672 31,685 1,169,698 (85,798) 139,325 (390,681)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - 23,366
Insurance Proceeds - - - - - 2,224
Transfers In - - - 4,133 - 1,721,515
Transfers Out - ( 39,408) (808,120) - - (991,471)
Other Financing Sources (Uses) - ( 39,408) (808,120) 4,133 - 755,634
Net Increase (Decrease) in Fund Balances 1,672 (7,723) 361,578 (81,665) 139,325 364,953
Fund Balances, July 1 1 6,281 229,217 416,209 166,084 100,711 8,847,273
Fund Balances, June 30 $ 1 7,953 $ 221,494 $ 777,787 $ 84,419 $ 240,036 $ 9,212,226
-120-

-121-

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, 2012
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 - - - - 80,000 80,000 114,163 34,163
State Shared Taxes - - - - - - - -
Intergovernmental 845,469 945,033 844,937 (100,096) 356,211 337,072 275,458 (61,614)
Charges for Current Services 63,350 71,050 71,655 605 155,000 155,000 155,000 -
Fines and Forfeitures - - - - - - - -
Investment Income - - 91 91 - - 6,997 6,997
Donations 56,000 56,000 33,788 (22,212) - 3,000 3,000 -
Miscellaneous 1,000 1,000 1,350 350 - - - -
Total Revenues 965,819 1,073,083 951,821 (121,262) 591,211 575,072 554,618 (20,454)
EXPENDITURES
Current Operating Expenditures 2,153,938 2,206,304 2,093,750 112,554 1,348,304 1,404,320 530,822 873,498
Capital Outlay - 54,000 38,684 15,316 - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 2,153,938 2,260,304 2,132,434 127,870 1,348,304 1,404,320 530,822 873,498
Excess of Revenues Over (Under) Expenditures (1,188,119) (1,187,221) (1,180,613) 6,608 (757,093) (829,248) 23,796 853,044
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 6,000 6,000 23,366 17,366 - - - -
Insurance Proceeds - - 2,224 2,224 - - - -
Transfers In 1,182,119 1,181,221 1,147,168 (34,053) 409,167 409,167 289,100 (120,067)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 1,188,119 1,187,221 1,172,758 (14,463) 409,167 409,167 289,100 (120,067)
Net Increase (Decrease) in Fund Balances $ - $ - (7,855) $ (7,855) $ (347,926) $ (420,081) 312,896 $ 732,977
Fund Balances, July 1 130,909 4,297,061
-
Fund Balances, June 30 $ 123,054 $ 4,609,957
-122-

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, 2012
(CONTINUED)
COMMUNITY PARTNERSHIPS FOR CHILDREN LAW LIBRARY INMATE WELFARE FUND
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - - - - - -
- - - - - - - - - - - -
1,104,622 1,253,020 1,062,029 (190,991) - - - - - 8 ,000 8 ,073 73
- - - - 14,000 1 4,000 9,575 (4,425) 90,000 9 0,000 6 7,337 (22,663)
- - - - 21,000 2 1,000 15,518 (5,482) - - - -
- - 53 53 25 2 5 7 (18) 1,000 1 ,000 2 59 (741)
- 4,000 1,535 (2,465) - - - - - - - -
3,215 3,215 19,640 16,425 25,000 2 5,000 - (25,000) 40,000 4 0,000 3 1,957 (8,043)
1,107,837 1,260,235 1,083,257 (176,978) 60,025 6 0,025 25,100 (34,925) 131,000 1 39,000 1 07,626 (31,374)
1,258,523 1,392,902 1,185,418 207,484 66,550 6 6,550 12,773 5 3,777 125,250 1 35,250 1 23,278 11,972
- 23,111 23,457 (346) - - - - 40,000 3 8,000 - 38,000
- - - - - - - - - - - -
- - - - - - - - - - - -
1,258,523 1,416,013 1,208,875 207,138 66,550 6 6,550 12,773 5 3,777 165,250 1 73,250 1 23,278 49,972
(150,686) (155,778) (125,618) 30,160 (6,525) (6,525) 12,327 1 8,852 (34,250) (34,250) (15,652) 18,598
- - - - - - - - - - - -
- - - - - - - - - - - -
172,778 172,778 147,265 (25,513) 6,525 6 ,525 1,500 (5,025) - - - -
(22,092) (17,000) (21,594) (4,594) - - - - - - - -
150,686 155,778 125,671 (30,107) 6,525 6 ,525 1,500 (5,025) - - - -
$ - $ - 53 $ 53 $ - $ - 13,827 $ 1 3,827 $ (34,250) $ (34,250) (15,652) $ 18,598
75,569 ( 1,593) 2 38,524
$ 75,622 $ 12,234 $ 2 22,872
CONTINUED
-123-

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, 2012
(CONTINUED)
AGRICULTURAL TRANSFER RURAL LEGACY
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 55,000 155,000 36,872 (118,128) - - - -
Intergovernmental - - - - - 892,631 892,631 -
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 163 163 - 800 811 1 1
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 1 55,000 155,000 37,035 (117,965) - 893,431 893,442 1 1
EXPENDITURES
Current Operating Expenditures 1 65,000 297,349 297,117 232 - 1,500,004 1,499,319 6 85
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 1 65,000 297,349 297,117 232 - 1,500,004 1,499,319 6 85
Excess of Revenues Over (Under) Expenditures (10,000) (142,349) (260,082) (117,733) - (606,573) (605,877) 6 96
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In 1 0,000 132,349 132,349 - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 1 0,000 132,349 132,349 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ (10,000) (127,733) $ (117,733) $ - $ (606,573) (605,877) $ 6 96
Fund Balances, July 1 177,093 1,025,176
Fund Balances, June 30 $ 49,360 $ 419,299
-124-

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, 2012
(CONTINUED)
PURCHASE OF DEVELOPMENT RIGHTS DREDGING SPECIAL ASSESSMENTS KENT NARROWS
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ 3 8,000 $ 38,000 $ 37,055 $ (945)
5 00,000 5 00,000 761,085 2 61,085 - - - - - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - 48,625 48,625 45,290 (3,335) - - - -
- 1 ,900 1,987 8 7 - - - - - - - -
- - - - - - 807 807 - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
5 00,000 5 01,900 763,072 2 61,172 48,625 48,625 46,097 (2,528) 3 8,000 38,000 37,055 (945)
- 2 68,845 268,844 1 - - - - 8 ,500 8,500 5,370 3,130
- - - - - - - - - - - -
1 21,228 1 21,228 119,598 1 ,630 48,625 48,625 44,425 4,200 - - - -
1 2,355 1 4,255 14,255 - - - - - - - - -
1 33,583 4 04,328 402,697 1 ,631 48,625 48,625 44,425 4,200 8 ,500 8,500 5,370 3,130
3 66,417 9 7,572 360,375 2 62,803 - - 1,672 1,672 2 9,500 29,500 31,685 2,185
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- (122,349) ( 122,349) - - - - - (39,408) (39,408) (39,408) -
- (122,349) ( 122,349) - - - - - (39,408) (39,408) (39,408) -
$ 3 66,417 $ (24,777) 238,026 $ 2 62,803 $ - $ - 1,672 $ 1,672 $ (9,908) $ (9,908) (7,723) $ 2,185
1,174,317 16,281 229,217
$ 1,412,343 $ 17,953 $ 221,494
CONTINUED
-125-

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, 2012
(CONTINUED)
CAPITAL PROJECTS - SCHOOL IMPACT FEES CAPITAL PROJECTS - FIRE COMPANY 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 - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 600,000 6 00,000 1,169,425 569,425 - - 148,827 148,827
Fines and Forfeitures - - - - - - - -
Investment Income 2,000 2 ,000 273 (1,727) - - 226 226
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 602,000 6 02,000 1,169,698 567,698 - - 149,053 149,053
EXPENDITURES
Current Operating Expenditures - - - - - 234,851 234,851 -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures - - - - - 234,851 234,851 -
Excess of Revenues Over (Under) Expenditures 602,000 6 02,000 1,169,698 567,698 - (234,851) (85,798) 149,053
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - 4,135 4,133 (2)
Transfers Out (808,120) (808,120) (808,120) - - - - -
Total Other Financing Sources (Uses) (808,120) (808,120) (808,120) - - 4,135 4,133 (2)
Net Increase (Decrease) in Fund Balances $ (206,120) $ (206,120) 361,578 $ 567,698 $ - $ (230,716) (81,665) $ 149,051
Fund Balances, July 1 416,209 166,084
Fund Balances, June 30 $ 777,787 $ 84,419
-126-

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, 2012
(CONTINUED)
CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ -
- - - -
- - - -
- - - -
80,000 80,000 139,126 59,126
- - - -
1,500 1,500 199 (1,301)
- - - -
- - - -
81,500 81,500 139,325 57,825
- - - -
- - - -
- - - -
- - - -
- - - -
81,500 81,500 139,325 57,825
- - - -
- - - -
- - - -
( 81,500) ( 81,500) - 81,500
( 81,500) ( 81,500) - 81,500
$ - $ - 139,325 $ 139,325
100,711
$ 240,036
-127-

-128-

CAPITAL PROJECTS FUNDS
Capital Projects Funds are 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.
We do not amend closed projects in the General Capital Projects Fund or Roads Capital Projects Fund. The
names of these projects begin with a CLS. Once the project is closed, it is considered null and void and
there is no remaining authority, and therefore we do not amend those after the fact.
Force in kind capital projects do not contain any budget authority. These projects are only intended as a
tracking tool. Most costs associated with force in kind projects are related to staff costs and the project is
attached to the employee’s normal activity, which contains the budget authority.
General Capital Projects – This fund accounts for capital project activities funded by all governmental
resources, except those reserved for use in the Roads Capital Projects Fund, noted below.
Roads Capital Projects - This fund accounts for capital project activities funded by governmental
resources specifically reserved for use in the Roads Capital Projects Fund. These resources consist of
State-Shared Highway User Tax, which is mandated for this use, plus federal, state, and local roads-related
grants and transfers.
-129-

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2012
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
GENERAL GOVERNMENT
400003 County Facilities Program $ 9 76,446 $ 8 18,692 $ 9 6,293 $ 914,985 $ 61,461 $ - $ -
400007 GASB/Tax System Update 2 84,000 1 5,477 101,756 117,233 166,767 - -
400015 County Wide Mapping 8 15,000 6 46,096 4 ,200 650,296 164,704 - -
400027 Strategic Planning 5 76,602 3 86,834 - 386,834 189,768 - -
400031 Mgt Info Systems Network 9 32,375 7 03,006 2 2,658 725,664 206,711 - 11,074
400233 Rec Mgmt Sys - Non Fin 2 05,000 1 59,661 - 159,661 45,339 - -
400269 Tax Ditches - Beaverdam 6 4,500 4 3,496 - 43,496 21,004 - -
400271 Tax Ditches - Longmarsh 6 4,000 5 3,140 - 53,140 10,860 - -
400359 Public Drainage 3 75,000 - - - 375,000 - -
400363 Church Hill Pond Stabilization 2 00,000 7 0,113 2 ,626 72,739 127,261 - -
400375 Sustainable Communities Council 5 ,000 1 ,701 - 1,701 3,299 - -
400377 BNR Septic Retrofit Grant 5 ,000 - - - 5,000 - -
400449 Nesbit Road ER Infrastructure 3 ,000,000 2 ,474,123 - 2,474,123 525,877 - -
400457 GIS & Strategic Plan Land Use 6 5,000 2 0,821 1 ,650 22,471 42,529 - -
400557 CLS-Security Upgrade & Generator 1 70,000 8 4,750 4 9,296 134,046 35,954 - 44,249
400559 Courthouse Property 2 ,126,284 1 ,314,231 2 8,883 1,343,114 783,170 - 28,883
400613 2011 Bond Issuance - Consultant & Advertising Expense 1 52,454 1 30,112 - 130,112 22,342 - -
400615 Grasonville Community Center 5 0,000 5 0,000 - 50,000 - - -
400619 DNR Natural Filters 1 00,000 2 3,288 2 0,624 43,912 56,088 43,912 20,624
400635 Coastal Bays Grant - Town of Centreville 7 0,000 1 4,640 4 ,444 19,084 50,916 - -
400637 Coastal Bays Grant - Corsica River Conservancy 2 00,000 1 6,532 3 ,049 19,581 180,419 - -
400645 Benefits & Compensation Studies 3 5,000 - 3 0,000 30,000 5,000 - -
400647 Watershed Improvement Program 1 50,000 - - - 150,000 - -
400649 CLS-Eco Restoration 3 5,000 - 3 4,584 34,584 416 - 34,584
400653 Coastal Community Initiative 7 0,705 - 1 9,012 19,012 51,693 - -
Total General Government 1 0,727,366 7 ,026,713 419,075 7,445,788 3,281,578 43,912 139,414
PUBLIC SAFETY
400217 Transfer to VFDs 1 ,157,390 1 ,084,689 - 1,084,689 72,701 - -
400281 Detention Center Furniture & Carpet 3 0,000 - - - 30,000 - -
400313 County Wide Mapping - 911 8 15,530 7 94,469 - 794,469 21,061 - -
400499 Railroad Avenue Building Renovation 6 25,000 6 02,548 4 ,271 606,819 18,181 - 4,271
400525 CLS-Animal Services - Quarantine Facility 1 19,127 1 19,127 (2,694) 116,433 2,694 - (2,694)
Total Public Safety 2 ,747,047 2 ,600,833 1 ,577 2,602,410 144,637 - 1,577
PUBLIC WORKS
400077 Wetlands Mitigation 2 16,560 1 52,929 1 ,697 154,626 61,934 - -
400079 Roof Repair / Replacement 4 54,647 4 52,586 - 452,586 2,061 - -
400091 DPW - Fee In Lieu 2 0,000 2 0,000 - 20,000 - - -
400215 Preventive Park Maintenance 9 20,480 7 62,692 4 3,781 806,473 114,007 - -
400221 Capital Equipment 1 79,904 6 9,904 112,580 182,484 (2,580) - 112,580
400235 Solid Waste Capital Equipment 1 74,001 1 73,039 - 173,039 962 - -
400241 Cash Deposit Agreements 3 5,748 3 5,748 - 35,748 - - -
400305 White Marsh Park 2 ,397,291 2 ,328,682 5 0,269 2,378,951 18,340 - -
400391 Cross County Connec Trail PS1 1 ,932,688 6 0,935 - 60,935 1,871,753 60,935 -
400393 Davidson Property Improvements 3 23,525 7 7,112 - 77,112 246,413 77,112 -
400471 CLS-Bio-Swale Drainage Ditch 7 5,000 1 4,771 5 3,240 68,011 6,989 - 53,240
400501 DPW Yard MTBE Remediation 2 00,000 1 9,889 2 3,681 43,570 156,430 - -
400509 Solid Waste Loader Replacement 6 3,626 - - - 63,626 - -
400513 Bay City/Matapeake Trail 3 0,000 - - - 30,000 - -
400519 Talisman/Kudner Improvements 6 ,855 - - - 6,855 - -
400521 County Complex Land 2 ,184,120 1 ,607,218 6 ,856 1,614,074 570,046 - -
400529 Chesapeake Pool Improvements 1 00,000 7 7,356 2 ,117 79,473 20,527 - -
400541 Sudlersville Middle Infrastructure 7 80,588 4 70,829 2 90,055 760,884 19,704 424,578 175,094
400607 Grasonville Tennis Courts 4 0,000 - - - 40,000 - -
400617 CLS-YMCA Feasibility Study 5 1,394 4 6,894 4 ,500 51,394 - - -
400621 CLS-YMCA Fundraising Study 2 5,000 - - - 25,000 - -
400623 CLS-Energy Efficiency Upgrades 2 86,231 - 286,231 286,231 - - 286,231
400625 Coastal Bays - Health Dept. Parking 2 00,000 6 94 200,760 201,454 (1,454) - 190,741
400627 Coastal Bays - Bloomfield Parking 5 0,000 - 5 0,000 50,000 - - 50,000
400629 Kirwan Creek - WMP IMPL 1 70,000 1 3,864 155,890 169,754 246 - 155,890
400633 CLS-Bloomfield Info Kiosk 1 5,385 1 0,186 3 ,473 13,659 1,726 - 3,473
400639 RT 18 Park Trail 3 0,000 - 3 0,000 30,000 - - -
Total Public Works 1 0,963,043 6 ,395,328 1 ,315,130 7,710,458 3,252,585 562,625 1,027,249
SOCIAL SERVICES
400511 Aging - Vehicle Replacement 3 5,000 - - - 35,000 - -
Total Social Services 3 5,000 - - - 35,000 - -
CONTINUED
-130-

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
EDUCATION
ALLOCATIONS TO COMPONENT UNIT -
BOARD OF EDUCATION
400543 Sudlersville Middle Infrastructure $ 6 94,177 $ 519,083 $ 1 75,094 $ 694,177 $ - $ - $ -
700061 Matapeake Middle 1 6,909,456 16,838,271 - 16,838,271 71,185 - -
700117 CLS-Playground Repairs - Kent Island Elem School 1 40,660 1 40,660 - 140,660 - - -
700151 Bayside Elementary HVAC 1 ,064,153 1 ,039,789 - 1,039,789 24,364 - -
700157 QACHS Field Upgrades 5 19,532 4 76,698 3 5,079 511,777 7,755 - -
700161 Financial Hardware System 6 0,000 5 6,650 - 56,650 3,350 - -
700165 CLS-Generator - BOE Bldg 5 0,000 4 9,245 2 55 49,500 500 - -
700169 New Sudlersville Middle School 2 8,585,930 8 ,845,632 6 ,987,036 15,832,668 12,753,262 - -
700177 BOE Security Entrance & Cameras 1 60,000 1 57,980 - 157,980 2,020 - -
700179 Centreville Middle Boiler 2 24,917 9 1,348 - 91,348 133,569 - -
700181 CLS-Bayside Elementary Parking Lot 1 16,205 1 16,205 - 116,205 - - -
700183 Centreville Elementary - Resurface Playcourts 2 9,766 2 9,516 - 29,516 250 - -
700187 Kennard Elementary Addition 4 ,412,354 1 53,432 1 ,184,641 1,338,073 3,074,281 - -
700191 CLS-Carpet & Tile Replacement 8 0,000 8 0,000 - 80,000 - - -
700193 Security Entrance & Cameras 6 5,000 6 3,507 - 63,507 1,493 - -
700195 Equipment & Vehicles 7 00,000 6 95,624 - 695,624 4,376 - -
700203 CLS-Textbooks 3 00,000 2 99,641 3 59 300,000 - - -
700205 BOE Phone System 6 0,000 5 4,664 - 54,664 5,336 - -
700207 QACHS Bleachers 1 45,000 1 31,684 - 131,684 13,316 - -
700209 CLS-Energy Management System Upgrade 4 4,050 4 0,720 3 ,086 43,806 244 - -
700215 KIHS Roof Repairs 1 04,729 9 ,893 8 7,385 97,278 7,451 - -
700221 Warehouse Lot Paving 1 00,000 - - - 100,000 - -
700223 BOE Parking Lot Expansion 2 5,000 - - - 25,000 - -
700225 CLS-BOE Portables 6 7,149 6 2,464 4 ,685 67,149 - - -
700227 BOE Relocatables 1 46,500 - 5 1,353 51,353 95,147 - -
Total Education 5 4,804,578 29,952,706 8 ,528,973 38,481,679 16,322,899 - -
CONSERVATION
400293 4-H Park Improvements 5 97,555 5 25,142 4 5,604 570,746 26,809 - -
400553 Ag Preservation - Emerson Property 4 16,861 - - - 416,861 - -
400555 Ag Preservation - Frizz King Property 5 72,000 572,000 - 572,000 - - -
400571 Ag Preservation - Brown's Branch 9 68,166 9 68,166 - 968,166 - - -
400631 CREP Easements 1 ,532,705 1 ,405,171 106,126 1,511,297 21,408 - 56,478
400643 4-H Parking Phase II 1 00,000 - 100,000 100,000 - - -
400687 Ag Preservation - Milliken Farm 4 ,650 - 4 ,650 4,650 - - -
Total Conservation 4 ,191,937 3 ,470,479 256,380 3,726,859 465,078 - 56,478
ECONOMIC/COMMUNITY DEVELOPMENT
400201 Land Sales Proceeds (See Transfers) 3 0,345 3 0,345 - 30,345 - - -
400573 Housing - NCI - 107 Watkins (See Transfers) 2 30,159 2 16,900 - 216,900 13,259 - -
400583 Matapeake Business Park 1 ,640,000 7 6,066 115,219 191,285 1,448,715 191,285 115,219
400651 QAC Recreation Trail Map 1 6,000 - 1 5,790 15,790 210 - -
Subtotal Economic/Community Development 1 ,916,504 3 23,311 1 31,009 454,320 1,462,184 191,285 115,219
ECONOMIC/COMMUNITY DEVELOPMENT -
ALLOCATION TO COMPONENT UNIT - PHA
400207 Housing & Community Service Transfer (See Transfers) 1 00,000 100,000 - 100,000 - - -
400209 CLS-PHA Allocation 6 06,642 6 06,642 (283,914) 322,728 283,914 - -
400485 Restricted Allocation-Scattered Site 1 00,000 100,000 - 100,000 - - -
Subtotal Allocation to Component Unit - PHA 8 06,642 8 06,642 (283,914) 522,728 283,914 - -
Total Economic/Community Development 2 ,723,146 1 ,129,953 (152,905) 977,048 1,746,098 191,285 115,219
CONTINUED
-131-

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
DEBT SERVICE
400613 2011 Bond Issuance Costs $ 2 56,244 $ 1 29,671 $ 1 26,573 $ 256,244 $ - $ - $ -
400655 2012 Refunding Bonds 8 ,724,048 - 8 ,719,850 8,719,850 4,198 - -
Total Debt Service 8 ,980,292 1 29,671 8 ,846,423 8,976,094 4,198 - -
TRANSFERS TO OTHER FUNDS
400045 Land Preservation Transfers 4 05,000 4 05,000 - 405,000 - - -
400127 Public Landings Allocation 2 00,000 2 00,000 - 200,000 - - -
400167 Enterprise Transfer/Allocation 3 ,336,695 3 ,236,490 - 3,236,490 100,205 - -
400201 Land Sale Proceeds 1 25,000 125,000 - 125,000 - - -
400207 Housing & Comm Svc Transfer - to Housing Services 4 50,000 4 50,000 - 450,000 - - -
400213 Loan Fund Transfers 4 60,000 4 60,000 - 460,000 - - -
400217 Transfer to VFD's 1 62,410 1 62,410 - 162,410 - - -
400573 Transfer to Housing & Community Services Fund 2 14,741 2 14,741 - 214,741 - - -
400551 Transfer to/from General Fund 8 ,310,000 8 ,310,000 - 8,310,000 - - -
400469 Sanitary District Transfer/Allocation 2 33,000 2 33,000 - 233,000 - - -
400483 2009 Bond Issuance - Transfers 6 17,428 6 16,343 1 ,085 617,428 - - -
Total Transfers 1 4,514,274 14,412,984 1 ,085 14,414,069 100,205 - -
Total General Capital Projects $ 1 09,686,683 $ 65,118,667 $ 19,215,738 $ 84,334,405 $ 25,352,278 $ 797,822 $ 1,339,937
PROJ # ROADS BOARD CAPITAL PROJECTS:
PUBLIC WORKS
820005 Asphalt Overlays - Upgrade $ 3 ,680,336 $ 986,282 $ - $ 986,282 $ 2,694,054 $ - $ -
820151 Island Creek Road Bridge 3 ,105,000 7 3,418 1 ,199,210 1,272,628 1,832,372 1,272,035 1,198,618
820221 Taylor Mill Road Bridge 1 97,500 4 50 - 450 197,050 450 -
820271 CLS-Tanyard Road Improvements 6 89,302 6 86,352 4 ,822 691,174 (1,872) - 4,822
820291 Carmichael Road Improvements 2 03,669 6 ,807 1 47,436 154,243 49,426 154,243 147,436
820295 Fogwell Road Improvements 5 3,215 - - - 53,215 - -
820297 Rt 18-552 Improvements 1 ,574,248 2 33,249 2 ,995 236,244 1,338,004 236,244 2,995
820301 Heron View 2 8,131 2 8,131 - 28,131 - - -
Total Public Works - Roads 9 ,531,401 2 ,014,689 1 ,354,463 3,369,152 6,162,249 1,662,972 1,353,871
TRANSFERS TO OTHER FUNDS
820187 To Roads Operating 1 ,841,876 1 ,019,487 822,389 1,841,876 - - -
820209 County Wide Mapping II 8 0,000 8 0,000 - 80,000 - - -
820299 To Roads Operating 5 98,024 - 598,024 598,024 - - -
Total Transfers to Other Funds 2 ,519,900 1 ,099,487 1 ,420,413 2,519,900 - - -
Total Roads Board Capital Projects $ 1 2,051,301 $ 3 ,114,176 $ 2 ,774,876 $ 5,889,052 $ 6,162,249 $ 1,662,972 $ 1,353,871
Total General and Roads Capital Projects $ 1 21,737,984 $ 68,232,843 $ 21,990,614 $ 90,223,457 $ 31,514,527 $ 2,460,794 $ 2,693,808
Force in Kind Capital Projects reported in
non-capital projects Funds and added to CIP
400306 White March Park FIC $ 4 11,085 $ 4 07,809 $ 3 ,276 $ 411,085 $ - $ - $ -
400392 Cross County Conn II FIC 2 9,557 2 8,015 1 ,542 29,557 - 27,634 1,542
400394 Davidson Property FIC 4 3,470 4 3,369 1 01 43,470 - 43,470 101
400472 CLS-Bioswale Drain FIC 3 3,076 2 5,433 7 ,643 33,076 - - 7,643
400626 Coastal Bays Health Dept Parking - FIC 1 8,545 3 ,981 1 4,564 18,545 - - 14,564
400630 Kirwan Creek WMP IMPL - FIC 4 3,809 1 4,716 2 9,093 43,809 - - 29,093
400634 Bloomfield Kiosk - FIC 6 ,574 1 ,905 4 ,669 6,574 - - 4,669
400640 RT 18 Park Trail - FIC 3 ,874 - 3 ,874 3,874 - - -
$ 5 89,990 $ 5 25,228 $ 6 4,762 $ 589,990 $ - $ 71,104 $ 57,612
Total Construction in Progress and Capitalized Current Year $ 2,531,898 $ 2,751,420
-132-

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 obsolescence; and (3) to
the extent that funds are not borrowed, finance the cost of expansion of physical facilities.
-133-

-134-

NON-MAJOR ENTERPRISE FUNDS
Non-major enterprise funds include the following funds:
Public Marinas – This fund accounts for operation, maintenance, and major repairs of public marinas. For
a fee, the general public has access to these marinas for temporary mooring.
Parks and Recreation:
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.
Recreation Programs – This fund accounts for self-supporting recreation programs wherein user charges
cover the majority of operating expenditures.
Public Landings – This fund accounts for operation, maintenance, and major repairs of public landings
and bulkheads. For a fee, the general public has access to these landings to launch small craft into the
many waterways that surround the County.
Property Management – This fund accounts for the operation, maintenance and major repairs associated
with the County’s many parks and public facilities.
-135-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2012
GOLF RECREATION PUBLIC
ASSETS COURSE PROGRAMS LANDINGS
Current Assets
Equity in Pooled Cash $ - $ 467,617 $ 237,664
Accounts Receivable (Net) - - 720
Due from Other Governments - - 16,102
Bond Interest Reimbursement Receivable - Build America Bond - - 167
Inventories 7,237 - -
Prepaid Expenses 20,000 - -
Total Current Assets 27,237 467,617 254,653
Capital Assets
Land, Improved and Unimproved 1,904,522 - 559,862
Buildings and Improvements to Buildings 313,443 - -
Improvements Other Than Buildings 122,268 - 2,453,629
Automotive Equipment 22,835 - 10,880
Equipment 580,346 - 56,814
Furniture and Fixtures - 24,023 4,979
Construction in Progress - - 156,153
Capital Assets before Depreciation 2,943,414 24,023 3,242,317
Less Accumulated Depreciation (646,182) (17,935) (350,692)
Total Capital Assets, Net of Accumulated
Depreciation 2,297,232 6,088 2,891,625
Total Noncurrent Assets 2,297,232 6,088 2,891,625
Total Assets 2,324,469 473,705 3,146,278
LIABILITIES
Current Liabilities
Accounts Payable 28,276 24,681 12,657
Accrued Interest Payable 4,738 - 476
Escrow Deposits - 2,551 -
Due to Other Funds 310,570 - -
Unearned Revenue 2,374 - -
Current Portion of Compensated Absences 5,030 14,929 20,435
Current Portion of Bonds/Notes Payable 76,763 - 1,578
Total Current Liabilities 427,751 42,161 35,146
Noncurrent Liabilities
Compensated Absences 3,674 10,905 14,926
Other Post-Employment Benefit Obligation - 240,479 103,031
Bonds/Notes Payable 583,418 - 38,303
Total Noncurrent Liabilities 587,092 251,384 156,260
Total Liabilities 1,014,843 293,545 191,406
NET ASSETS
Invested in Capital Assets, Net of Related Debt 1,637,051 6,088 2,851,744
Restricted for:
Donations 438 - -
Unrestricted (327,863) 174,072 103,128
Total Net Assets $ 1,309,626 $ 180,160 $ 2,954,872
-136-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2012
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ - $ 705,281 $ 341,717 $ 1,046,998
2,272 2,992 - 2,992
- 16,102 - 16,102
- 167 3,573 3,740
- 7,237 - 7,237
- 20,000 - 20,000
2,272 751,779 345,290 1,097,069
49,335 2,513,719 209,248 2,722,967
867,429 1,180,872 - 1,180,872
99,013 2,674,910 2,715,191 5,390,101
49,730 83,445 - 83,445
165,859 803,019 - 803,019
- 29,002 - 29,002
- 156,153 - 156,153
1,231,366 7,441,120 2,924,439 10,365,559
(450,050) ( 1,464,859) (109,068) ( 1,573,927)
781,316 5,976,261 2,815,371 8,791,632
781,316 5,976,261 2,815,371 8,791,632
783,588 6,728,040 3,160,661 9,888,701
17,666 83,280 750 84,030
- 5,214 11,852 17,066
8,300 10,851 - 10,851
14,715 325,285 - 325,285
61,680 64,054 - 64,054
- 40,394 - 40,394
- 78,341 39,447 117,788
102,361 607,419 52,049 659,468
- 29,505 - 29,505
322,167 665,677 6,796 672,473
- 621,721 962,185 1,583,906
322,167 1,316,903 968,981 2,285,884
424,528 1,924,322 1,021,030 2,945,352
781,316 5,276,199 1,813,739 7,089,938
- 438 - 438
(422,256) ( 472,919) 325,892 ( 147,027)
$ 359,060 $ 4,803,718 $ 2,139,631 $ 6,943,349
-137-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
GOLF RECREATION PUBLIC
COURSE PROGRAMS LANDINGS
OPERATING REVENUES
Charges for Services $ 320,896 $ 2 54,827 $ 310,099
Intergovernmental - 5 ,217 24,140
Bond Interest Reimbursement - Build America Bond - - 669
Material Sales 48,473 - -
Miscellaneous Revenues 2,222 1 8,072 31,805
Total Operating Revenues 371,591 2 78,116 366,713
OPERATING EXPENSES
Cost of Sales and Services
Parks and Recreation 426,579 5 10,605 352,650
Public Marinas - - -
Total Cost of Sales and Services 426,579 5 10,605 352,650
Other Post-Employment Benefit Contributions - 6 3,040 24,518
Depreciation 45,945 2 ,402 55,869
Total Operating Expenses 472,524 5 76,047 433,037
Operating Income (Loss) (100,933) (297,931) (66,324)
NON-OPERATING (EXPENSES)
Interest Expense (39,936) - (1,911)
Gain (Loss) Before Contributions and Transfers (140,869) (297,931) (68,235)
Capital Contributions, Fees and Grants - - 28,380
Transfers In 140,868 2 95,638 -
Change in Net Assets (1) (2,293) (39,855)
Total Net Assets - Beginning of Year 1,309,627 1 82,453 2,994,727
Total Net Assets - End of Year $ 1,309,626 $ 1 80,160 $ 2,954,872
-138-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 6 15,728 $ 1,501,550 $ 1 02,290 $ 1,603,840
2 2,889 52,246 - 52,246
- 669 1 4,183 14,852
9 20 49,393 - 49,393
4 9,731 101,830 1 66 101,996
6 89,268 1,705,688 1 16,639 1,822,327
6 16,925 1,906,759 - 1,906,759
- - 2 9,199 29,199
6 16,925 1,906,759 2 9,199 1,935,958
7 7,509 165,067 1 ,119 166,186
5 2,044 156,260 3 5,023 191,283
7 46,478 2,228,086 6 5,341 2,293,427
(57,210) ( 522,398) 5 1,298 ( 471,100)
- ( 41,847) (45,543) ( 87,390)
(57,210) ( 564,245) 5 ,755 ( 558,490)
3 00 28,680 7 8,314 106,994
2 5,000 461,506 - 461,506
(31,910) ( 74,059) 8 4,069 10,010
3 90,970 4,877,777 2 ,055,562 6,933,339
$ 3 59,060 $ 4,803,718 $ 2 ,139,631 $ 6,943,349
-139-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
GOLF RECREATION PUBLIC
COURSE PROGRAMS LANDINGS
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 321,277 $ 254,081 $ 317,808
Receipts from other operating revenues 50,695 23,289 135,123
Receipts from Build America Bond interest reimbursement - - 664
Payments to suppliers (316,404) 42,486 ( 92,844)
Payments to employees and on behalf of employees (110,329) ( 553,464) ( 257,431)
Net Cash Provided (Used) by Operating Activities (54,761) ( 233,608) 103,320
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 140,868 295,638 -
Loan proceeds from interfund loans 310,570 20,000 -
Principal paid on interfund loans (279,425) - -
Net Cash Provided (Used) by Noncapital Financing Activities 172,013 315,638 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from capital grants and contributions - - 28,380
Principal paid on capital debt (80,000) - ( 1,752)
Receipts from bonds, including premiums, net of issuance costs - - 1,842
Interest paid on capital debt (37,252) - ( 1,896)
Acquisition and Construction of Capital Assets - - ( 29,113)
Net Cash (Used) by Capital and Related Financing Activities (117,252) - ( 2,539)
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided (Used) by Investing Activities - - -
Net increase in cash and cash equivalents - 82,030 100,781
Balances - Beginning of year - 385,587 136,883
Balances - End of year $ - $ 467,617 $ 237,664
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (100,933) $ ( 297,931) $ ( 66,324)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 45,945 2,402 55,869
Changes in assets and liabilities:
Accounts receivable, net - - 8,407
Operating grants receivable - - 79,178
Build America Bonds Interest receivable - - ( 5)
Inventories and Prepaid Expenses (18,500) - -
Vendor accounts payable 17,477 2,668 1,172
Compensated absences 869 ( 3,040) 1,203
Other Post-Employment Benefit Obligation - 63,039 24,518
Escrow deposits payable - ( 746) -
Deferred revenue collected in advance 381 - ( 698)
Net Cash Provided (Used) by Operating Activities $ (54,761) $ ( 233,608) $ 103,320
-140-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 652,037 $ 1,545,203 $ 102,290 $ 1,647,493
74,187 283,294 166 283,460
- 664 14,232 14,896
(326,757) (693,519) (7,396) (700,915)
(313,778) (1,235,002) (22,060) (1,257,062)
85,689 (99,360) 87,232 (12,128)
25,000 461,506 - 461,506
14,715 345,285 - 345,285
(114,204) (393,629) - (393,629)
(74,489) 413,162 - 413,162
300 28,680 78,314 106,994
- (81,752) (49,977) (131,729)
- 1,842 116,730 118,572
- (39,148) (44,760) (83,908)
(11,500) (40,613) (162,811) (203,424)
(11,200) (130,991) (62,504) (193,495)
- - - -
- 182,811 24,728 207,539
- 522,470 316,989 839,459
$ - $ 705,281 $ 341,717 $ 1,046,998
$ (57,210) $ (522,398) $ 51,298 $ (471,100)
52,044 156,260 35,023 191,283
(1,021) 7,386 - 7,386
647 79,825 - 79,825
- (5) 49 44
- (18,500) 1 (18,499)
(23,610) (2,293) (259) (2,552)
- (968) - (968)
77,509 165,066 1,120 166,186
650 (96) - (96)
36,680 36,363 - 36,363
$ 85,689 $ (99,360) $ 87,232 $ (12,128)
-141-

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.
Pension and Other Employee Benefit Trust Funds account for resources that are required to be held in trust
for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post-
employment benefit plans, or other employee benefit plans. The County’s one Other Post-Employment
Benefit (OPEB) Trust Fund accounts for retiree benefit plans and is reported as part of the Basic Financial
Statements. Additional combining schedules for the OPEB Trust Fund are included in this section.
Agency Funds 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 Agency Funds are
included in this section.
-143-

OTHER POST-EMPLOYMENT BENEFIT (OPEB) TRUST FUND
The County established a Trust entity, entitled “Other Post-Employment Benefit Trust – County
Commissioners of Queen Anne's County, County Commissioners of Kent County, and Participating
Agencies” (OPEB Trust), to accumulate resources and account for and report retiree benefit plans for the
participating agencies.
Participating agencies in the OPEB Trust Fund are as follows:
Queen Anne's County & Public Housing Authority
Queen Anne's County Board of Education
Queen Anne’s County Library
Kent County
AGENCY FUNDS
Agency funds 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.
Mid-shore Regional Recycling Program (MRRP) – This fund accounts for activities of the regional
recycling effort that is supported by four counties, including Queen Anne’s County.
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.
-145-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2012
QUEEN ANNE'S QUEEN ANNE'S TOTAL
COUNTY COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S PUBLIC HOUSING BOARD OF COUNTY KENT TRUST
COUNTY AUTHORITY EDUCATION LIBRARY COUNTY FUND
ASSETS
Cash and Cash Equivalents $ 490,702 $ 113,172 $ 503,354 $ 3 0,201 $ 1 56,040 $ 1 ,293,469
Total Assets 490,702 113,172 5 03,354 3 0,201 1 56,040 1,293,469
LIABILITIES
Due to Other Governments - - - - 1 56,040 156,040
Total Liabilities - - - - 1 56,040 156,040
NET ASSETS HELD IN TRUST $ 490,702 $ 113,172 $ 503,354 $ 3 0,201 $ - $ 1 ,137,429
-146-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2012
QUEEN ANNE'S QUEEN ANNE'S TOTAL
COUNTY COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S PUBLIC HOUSING BOARD OF COUNTY TRUST
COUNTY AUTHORITY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 1 ,508,144 $ 4 0,833 $ 1,409,451 $ 1 9,600 $ 2 ,978,028
Members 2 78,825 3 ,121 757,936 4 ,630 1 ,044,512
Total Contributions 1 ,786,969 4 3,954 2,167,387 2 4,230 4 ,022,540
Investment Income 7 25 2 06 996 5 9 1 ,986
Total Additions 1 ,787,694 4 4,160 2,168,383 2 4,289 4 ,024,526
DEDUCTIONS
Claims Paid 1 ,297,473 7 ,360 2,167,387 2 4,230 3 ,496,450
Change in Assets 4 90,221 3 6,800 996 5 9 5 28,076
NET ASSETS HELD IN TRUST
Net Assets - Beginning of Year 481 76,372 502,358 3 0,142 609,353
Net Assets - End of Year $ 490,702 $ 113,172 $ 503,354 $ 3 0,201 $ 1,137,429
-147-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2012
STATE MOTOR
TAX & TOWN VEHICLE MIDSHORE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN REGIONAL ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS RECYCLING PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 1 20,991 $ 267,511 $ 7 9,781 $ 5 ,480 $ 5 ,661 $ 2,766 $ 482,190
Miscellaneous Receivables - - - - 1 01,686 - 101,686
Total Assets $ 1 20,991 $ 267,511 $ 7 9,781 $ 5 ,480 $ 1 07,347 $ 2,766 $ 583,876
LIABILITIES
Due to Other Governments $ - $ - $ 7 9,781 $ 5 ,480 $ 1 07,347 $ 2,766 $ 195,374
Deposits and Escrows 1 20,991 267,511 - - - - 388,502
Total Liabilities $ 1 20,991 $ 267,511 $ 7 9,781 $ 5 ,480 $ 1 07,347 $ 2,766 $ 583,876
-149-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
Miscellaneous Total
Cash Receivables Assets
TAX DITCH FUND
Balance 7-1-11 $ 121,288 $ - $ 121,288
Additions 19,516 - 19,516
Deductions (19,813) - (19,813)
Balance 6-30-12 $ 120,991 $ - $ 120,991
ZONING DEPOSITS
Balance 7-1-11 $ 187,652 $ - $ 187,652
Additions 98,692 - 98,692
Deductions (18,833) - (18,833)
Balance 6-30-12 $ 267,511 $ - $ 267,511
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-11 $ 1,575 $ - $ 1,575
Additions 12,581,614 - 12,581,614
Deductions (12,503,408) - (12,503,408)
Balance 6-30-12 $ 79,781 $ - $ 79,781
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-11 $ 5,414 $ - $ 5,414
Additions 327,713 - 327,713
Deductions ( 327,647) - (327,647)
Balance 6-30-12 $ 5,480 $ - $ 5,480
MIDSHORE REGIONAL RECYCLING
Balance 7-1-11 $ 6,761 $ 124,671 $ 131,432
Additions 721,272 101,686 822,958
Deductions ( 722,372) (124,671) (847,043)
Balance 6-30-12 $ 5,661 $ 101,686 $ 107,347
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-11 $ 4,334 $ - $ 4,334
Additions 3,721 - 3,721
Deductions (5,289) - (5,289)
Balance 6-30-12 $ 2,766 $ - $ 2,766
TOTALS - ALL AGENCY FUNDS
Balance 7-1-11 $ 327,024 $ 124,671 $ 451,695
Additions 13,752,528 101,686 13,854,214
Deductions (13,597,362) (124,671) (13,722,033)
Balance 6-30-12 $ 482,190 $ 101,686 $ 583,876
-150-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
(CONTINUED)
Due to
Other Escrow Total
Governments Deposits Liabilities
$ - $ 121,288 $ 121,288
- 19,516 19,516
- (19,813) (19,813)
$ - $ 120,991 $ 120,991
$ - $ 187,652 $ 187,652
- 98,692 98,692
- (18,833) (18,833)
$ - $ 267,511 $ 267,511
$ 1,575 $ - $ 1,575
12,581,614 - 12,581,614
(12,503,408) - ( 12,503,408)
$ 79,781 $ - $ 79,781
$ 5,414 $ - $ 5,414
327,015 - 327,015
(326,949) - (326,949)
$ 5,480 $ - $ 5,480
$ 131,432 $ - $ 131,432
345,579 - 345,579
(369,664) - (369,664)
$ 107,347 $ - $ 107,347
$ 4,334 $ - $ 4,334
3,721 - 3 ,721
( 5,289) - (5,289)
$ 2,766 $ - $ 2,766
$ 142,755 $ 308,940 $ 451,695
13,257,929 118,208 13,376,137
(13,205,310) (38,646) ( 13,243,956)
$ 195,374 $ 388,502 $ 583,876
-151-

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.
-153-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2012 (with Summarized Totals as of June 30, 2011)
Fed/State Federal
GOCCP Family State State
Admin GOC Support Ctr CSAFE OTHER
ASSETS
Cash and cash equivalents $ 67,475 $ 801,543 $ 4 ,131 $ - $ 33,908
Accounts receivable 8,876 1,078 - - -
Due from State governmental agencies - 84,303 - 3,096 -
Due from Federal governmental agencies - 77,216 - - -
Total Assets $ 7 6,351 $ 964,140 $ 4 ,131 $ 3,096 $ 33,908
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 6,617 $ 210,638 $ - $ - $ -
Due to other funds - - - 3,096 -
Due to State governmental agencies 2,175 305,241 4 ,131 - 33,908
Deferred revenue - 445,656 - - -
Total Liabilities 8,792 961,535 4 ,131 3,096 33,908
FUND BALANCES
Assigned 6 7,559 2,605 - - -
Total Fund Balances 67,559 2,605 - - -
Total Liabilities and Fund Balances $ 76,351 $ 964,140 $ 4 ,131 $ 3,096 $ 33,908
-154-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2012 (with Summarized Totals as of June 30, 2011)
(CONTINUED)
Total Returned 2011
Community Reinvestment 2012 Summarized
Partnerships Fund Total Total
$ 9 07,057 $ 5 ,458 $ 912,515 $ 313,620
9 ,954 - 9,954 -
8 7,399 - 87,399 106,225
7 7,216 - 77,216 162,391
$ 1 ,081,626 $ 5 ,458 $ 1,087,084 $ 582,236
$ 2 17,255 $ - $ 217,255 $ 190,304
3 ,096 - 3,096 8,411
3 45,455 - 345,455 307,952
4 45,656 - 445,656 -
1 ,011,462 - 1,011,462 506,667
7 0,164 5 ,458 75,622 75,569
7 0,164 5 ,458 75,622 75,569
$ 1 ,081,626 $ 5 ,458 $ 1,087,084 $ 582,236
-155-

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, 2012 (with Summarized Totals for the Year Ended June 30, 2011)
Federal/State GOCCP/GOC
Healthy
CASA Resource Chesapeake Fam/Home Family
Administrative Start Promotion Helps Visiting Navigators
REVENUES
CPA
Intergovernmental
GOC $ 65,000 $ 54,770 $ 8,923 $ 130,914 $ 57,616 $ 1 63,810
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - 66,309 - - - -
Federal SAMHSA Drug-Free Communities - - - - - -
Federal MSDE Healthy Families - - - - - -
State GOCCP - non-CPA - - - - -
Other State Grant Funding 5,520 - - - 296,372 -
Investment Income - - - - - -
Earned Reinvestment Donations - - - - - -
Miscellaneous 19,640 - - - - -
Subtotal Non-CPA 25,160 66,309 - - 296,372 -
Total Revenues 90,160 121,079 8,923 130,914 353,988 1 63,810
EXPENDITURES
CPA
Program Contracted Services - - 8,923 130,914 - 1 63,810
Other Expenditures
Salaries 54,085 - - - - -
Fringe Benefit Costs 2,598 - - - - -
Office Supplies - - - - - -
Training - - - - - -
Marketing/Promotions - - - - - -
Other Charges - 54,770 - - 57,616 -
Subtotal CPA Expenditures 56,683 54,770 8,923 130,914 57,616 1 63,810
Non-CPA
Program Contracted Services - 66,309 - - 296,372 -
Other Expenditures
Salaries 83,017 - - - - -
Fringe Benefit Costs 65,149 - - - - -
Auditing 1,180 - - - - -
Consultants - - - - - -
Professional Groups - - - - - -
Equipment Rental 5,860 - - - - -
Other Contracted Services - - - - - -
Postage 587 - - - - -
Office Supplies 1,139 - - - - -
Equipment Operation 180 - - - - -
Business Travel 399 - - - - -
Meetings & Conferences 8,351 - - - - -
Training - - - - - -
Board's Expenditures 4,928 - - - - -
Advertising - - - - - -
Communications 1,635 - - - - -
Utilities - - - - - -
Other Charges - - - - - -
Capital Outlay - - - - - -
Subtotal Non-CPA Expenditures 172,425 66,309 - - 296,372 -
Total Expenditures 229,108 121,079 8,923 130,914 353,988 1 63,810
Excess of Revenues Over (Under) Expenditures (138,948) - - - - -
OTHER FINANCING SOURCES (USES)
Transfers In within Partnerships - - - - - -
Transfers (Out) within Partnerships (8,317) - - - - -
Transfers In (Out) for
Program Contracted Services - In 147,265 - - - - -
Program Contracted Services - Out - - - - - -
Other Financing Sources (Uses) 138,948 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - $ - $ - $ - $ -
-156-

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, 2012 (with Summarized Totals for the Year Ended June 30, 2011)
(CONTINUED)
Federal/State GOCCP/GOC
MD Underage GOCCP/GOC
After School Character Care Teen Drinking Operating Fund
Opportunity Counts Program Court Campaign Total
$ 51,806 $ 25,000 $ - $ - $ - $ 492,839
- - 4 8,169 47,721 15,900 178,099
- - - - - -
- - - - - -
- - 1 2,440 - - 12,440
- - - - - 296,372
- - - - - -
- 1,535 - - - 1,535
- - - - - -
- 1,535 6 0,609 47,721 15,900 488,446
51,806 26,535 6 0,609 47,721 15,900 981,285
51,806 - - - - 355,453
- 23,605 - - - 23,605
- 4,380 - - - 4,380
- 445 - - - 445
- 250 - - - 250
- 4,637 - - - 4,637
- - - - - 112,386
51,806 33,317 - - - 501,156
- - 2 7,681 11,143 3,005 404,510
- 1,350 - 22,390 8,710 32,450
- 185 - 1,823 1,145 3,153
- - - - - -
- - - 900 - 900
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - (38) (38)
- - - - - -
- - 1 ,895 - - 1,895
- - - - - -
- - 8 19 - - 819
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - 11,465 - 11,465
- - 2 3,457 - - 23,457
- 1,535 5 3,852 47,721 12,822 478,611
51,806 34,852 5 3,852 47,721 12,822 979,767
- (8,317) 6 ,757 - 3,078 1,518
- 8,317 - - - 8,317
- - - - - -
- - - - - -
- - (6,757) - (3,078) (9,835)
- 8,317 (6,757) - (3,078) (1,518)
$ - $ - $ - $ - $ - $ -
CONTINUED
-157-

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, 2012 (with Summarized Totals for the Year Ended June 30, 2011)
(CONTINUED)
CSAFE State GOC
Community All Programs CPA Non-CPA
Policing Subtotal Subtotal Subtotal
REVENUES
CPA
Intergovernmental
GOC $ - $ 5 57,839 $ 557,839 $ -
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - 1 78,099 - -
Federal SAMHSA Drug-Free Communities - - - -
Federal MSDE Healthy Families - - - -
State GOCCP - non-CPA 11,759 24,199 - -
Other - 3 01,892 - -
Investment Income - - - -
Earned Reinvestment Donations - 1,535 - -
Miscellaneous - 19,640 - -
Subtotal Non-CPA 11,759 5 25,365 - -
Total Revenues 11,759 1 ,083,204 557,839 -
EXPENDITURES
CPA
Program Contracted Services - 355,453 355,453 -
Other Expenditures
Salaries - 77,690 7 7,690 -
Fringe Benefit Costs - 6,978 6,978 -
Office Supplies - 445 445 -
Training - 250 250 -
Marketing/Promotions - 4,637 4,637 -
Other Charges - 1 12,386 112,386 -
Subtotal CPA Expenditures - 5 57,839 557,839 -
Non-CPA
Program Contracted Services - 404,510 - -
Other Expenditures
Salaries - 1 15,467 - -
Fringe Benefit Costs - 68,302 - -
Auditing - 1,180 - -
Consultants - 900 - -
Professional Groups - - - -
Equipment Rental - 5,860 - -
Other Contracted Services - - - -
Postage - 587 - -
Office Supplies - 1,101 - -
Equipment Operation - 180 - -
Business Travel - 2,294 - -
Meetings & Conferences - 8,351 - -
Training - 819 - -
Board's Expenditures - 4,928 - -
Advertising - - - -
Communications - 1,635 - -
Utilities - - - -
Other Charges - 11,465 - -
Capital Outlay - 23,457 - -
Subtotal Non-CPA Expenditures - 6 51,036 - -
Total Expenditures - 1 ,208,875 557,839 -
Excess of Revenues Over (Under) Expenditures 11,759 (125,671) - -
OTHER FINANCING SOURCES (USES)
Transfers In within Partnerships - 8,317 - 8,317
Transfers (Out) within Partnerships - (8,317) - (8,317)
Transfers In (Out) for
Program Contracted Services - In - 1 47,265 - -
Program Contracted Services - Out (11,759) (21,594) - -
Other Financing Sources (Uses) ( 11,759) 1 25,671 - -
Net Increase (Decrease) in Fund Balances $ - - - -
Fund Balances, July 1 70,164 607,286 (6,429)
Fund Balances, June 30 $ 7 0,164 $ 607,286 $ (6,429)
CONTINUED
-158-

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, 2012 (with Summarized Totals for the Year Ended June 30, 2011)
(CONTINUED)
State Federal Total
GOCCP GOCCP Federal Other Community Returned 2011
Non-CPA Youth Drug Free Non-CPA Partnerships Reinvestment 2012 Summarized
Subtotal Strategies Community State Grants Other Operating Funds Fund Total Total
$ - $ - $ - $ - $ - $ 557,839 $ - $ 557,839 $ 579,901
- 178,099 - - - 178,099 - 178,099 95,603
- - - - - - - - 15,400
- - - - - - - - 296,372
24,199 - - - - 24,199 - 24,199 6 ,704
- - - 301,892 - 301,892 - 301,892 16,995
- - - - - - 53 53 44
- - - - 1,535 1,535 - 1 ,535 1 ,000
- - - - 19,640 19,640 - 19,640 47,075
24,199 178,099 - 301,892 21,175 525,365 53 525,418 479,193
24,199 178,099 - 301,892 21,175 1,083,204 53 1,083,257 1,059,094
- - - - - 355,453 - 355,453 435,723
- - - - - 77,690 - 77,690 81,036
- - - - - 6,978 - 6 ,978 6 ,653
- - - - - 445 - 4 45 -
- - - - - 250 - 2 50 -
- - - - - 4,637 - 4 ,637 4 ,000
- - - - - 112,386 - 112,386 53,489
- - - - - 557,839 - 557,839 580,901
- 108,138 - 296,372 - 404,510 - 404,510 481,211
- 31,100 - - 84,367 115,467 - 115,467 147,041
- 2,968 - - 65,334 68,302 - 68,302 84,169
- - - - 1,180 1,180 - 1 ,180 1 ,731
- 900 - - - 900 - 9 00 15,000
- - - - - - - - 50
- - - - 5,860 5,860 - 5 ,860 3 ,198
- - - - - - - - 5 ,286
- - - - 587 587 - 5 87 7 90
- (38) - - 1,139 1,101 - 1 ,101 5 ,988
- - - - 180 180 - 1 80 205
- 1,895 - - 399 2,294 - 2 ,294 2 15
- - - 5,520 2,831 8,351 - 8 ,351 -
- 819 - - - 819 - 8 19 1 ,325
- - - - 4,928 4,928 - 4 ,928 14,146
- - - - - - - - 2 11
- - - - 1,635 1,635 - 1 ,635 1 ,523
- - - - - - - - 3 ,332
- 11,465 - - - 11,465 - 11,465 -
12,440 11,017 - - - 23,457 - 23,457 -
12,440 168,264 - 301,892 168,440 651,036 - 651,036 765,421
12,440 168,264 - 301,892 168,440 1,208,875 - 1,208,875 1,346,322
11,759 9,835 - - (147,265) (125,671) 53 (125,618) (287,228)
- - - - - 8,317 - 8 ,317 3 ,490
- - - - - ( 8,317) - (8,317) (3,490)
- - - - 147,265 147,265 - 147,265 304,268
( 11,759) (9,835) - - - ( 21,594) - (21,594) (16,995)
( 11,759) (9,835) - - 147,265 125,671 - 125,671 287,273
- - - - - - 53 53 45
3,491 1 (1,525) - (532,660) 70,164 5,405 75,569 75,524
$ 3,491 $ 1 $ (1,525) $ - $ (532,660) $ 70,164 $ 5,458 $ 75,622 $ 75,569
-159-

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, 2012
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 $ 611,158 $ 586,886 $ 557,839 $ (29,047) $ - $ - $ - $ -
State GOCCP Non-CPA 22,092 29,440 24,199 (5,241) - - - -
Federal GOCCP Youth Strategies 50,000 215,322 178,099 (37,223) - - - -
Federal SAMHSA Drug-Free Communities 125,000 125,000 - (125,000) - - - -
Federal MSDE Healthy Families 296,372 - - - - - - -
Other - 296,372 301,892 5,520 - - - -
Investment Income - - - - - - 53 53
Donations - 4,000 1,535 (2,465) - - - -
Miscellaneous 3,215 3,215 19,640 16,425 - - - -
Total Revenues 1,107,837 1,260,235 1,083,204 (177,031) - - 53 53
EXPENDITURES
Program Contracted Services 905,184 997,754 759,963 237,791 - - - -
Other Expenditures
Salaries 185,286 218,286 193,157 25,129 - - - -
Fringe Benefit Costs 81,406 86,297 75,280 11,017 - - - -
Auditing 2,988 2,988 1,180 1,808 - - - -
Consultants - 900 900 - - - - -
Equipment Rental 3,198 3,198 5,860 (2,662) - - - -
Postage 3,614 3,614 587 3,027 - - - -
Office Supplies 6,032 6,032 1,546 4,486 - - - -
Equipment Operation 500 500 180 320 - - - -
Business Travel 350 350 2,294 (1,944) - - - -
Meetings & Conferences - 2,199 8,351 (6,152) - - - -
Training - 819 1,069 (250) - - - -
Board's Expenditures 5,060 5,060 4,928 132 - - - -
Marketing/Promotions 3,000 3,000 4,637 (1,637) - - - -
Communications 1,200 1,200 1,635 (435) - - - -
Utilities 3,089 3,089 - 3,089 - - - -
Other Charges 57,616 57,616 123,851 (66,235) - - - -
Capital Outlay CPA - 23,111 23,457 (346) - - - -
Total Expenditures 1,258,523 1,416,013 1,208,875 207,138 - - - -
Excess of Revenues Over (Under)
Expenditures (150,686) (155,778) (125,671) 30,107 - - 53 53
OTHER FINANCING SOURCES (USES)
Transfers In within Partnerships 8,317 8,317 8,317 - - - - -
Transfers Out within Partnerships (8,317) (8,317) (8,317) - - - - -
Transfers In (Out) for:
Program Contracted Services - In 172,778 172,778 147,265 (25,513) - - - -
Program Contracted Services - Out (22,092) (17,000) (21,594) (4,594) - - - -
Other Financing Sources (Uses) 150,686 155,778 125,671 (30,107) - - - -
Net Increase (Decrease) in
Fund Balances/Net Assets $ - $ - - $ - $ - $ - 53 $ 53
Fund Balances, July 1 70,164 5,405
Fund Balances, June 30 $ 70,164 $ 5,458
-
-160-

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, 2012
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 611,158 $ 586,886 $ 557,839 $ (29,047)
2 2,092 29,440 24,199 (5,241)
5 0,000 215,322 178,099 (37,223)
1 25,000 125,000 - (125,000)
2 96,372 - - -
- 296,372 301,892 5,520
- - 53 53
- 4,000 1,535 (2,465)
3,215 3,215 19,640 16,425
1 ,107,837 1,260,235 1,083,257 (176,978)
9 05,184 997,754 759,963 237,791
1 85,286 218,286 193,157 25,129
8 1,406 86,297 75,280 11,017
2,988 2,988 1,180 1,808
- 900 900 -
3,198 3,198 5,860 (2,662)
3,614 3,614 587 3,027
6,032 6,032 1,546 4,486
5 00 500 180 320
3 50 350 2,294 (1,944)
- 2,199 8,351 (6,152)
- 819 1,069 (250)
5,060 5,060 4,928 132
3,000 3,000 4,637 (1,637)
1,200 1,200 1,635 (435)
3,089 3,089 - 3,089
5 7,616 57,616 123,851 (66,235)
- 23,111 23,457 (346)
1 ,258,523 1,416,013 1,208,875 207,138
(150,686) (155,778) (125,618) 30,160
8,317 8,317 8,317 -
(8,317) (8,317) (8,317) -
1 72,778 172,778 147,265 (25,513)
(22,092) (17,000) (21,594) (4,594)
1 50,686 155,778 125,671 (30,107)
$ - $ - 53 $ 5 3
75,569
$ 75,622
-161-

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 – Information to 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.
-163-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET ASSETS BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
2003 2004 2005 2006 2007
Governmental Activities:
Invested in capital assets, net of related debt $ 111,710,606 $ 82,209,646 $ 85,784,267 $ 95,644,000 $ 103,657,227
Restricted 22,167,033 8 ,118,231 8 ,418,254 9 ,842,795 18,012,695
Unrestricted (deficit) (1) (29,783,476) (14,178,514) (6,161,281) 7 ,339,567 (3,740,905)
Total Governmental Activities Net Assets 104,094,163 76,149,363 88,041,240 112,826,362 117,929,017
Business-type Activities:
Invested in capital assets, net of related debt 50,984,848 52,094,337 55,612,719 69,672,273 74,463,912
Restricted 6 ,482,894 7 ,857,202 7 ,742,890 11,733,254 19,133,485
Unrestricted - - - - -
Total Business-type Activities Net Assets 57,467,742 59,951,539 63,355,609 81,405,527 93,597,397
Primary Government:
Invested in capital assets, net of related debt 162,695,454 134,303,983 141,396,986 165,316,273 178,121,139
Restricted 28,649,927 15,975,433 16,161,144 21,576,049 37,146,180
Unrestricted (deficit) (1) (29,783,476) (14,178,514) (6,161,281) 7 ,339,567 (3,740,905)
Total Primary Government Net Assets $ 161,561,905 $ 136,100,902 $ 151,396,849 $ 194,231,889 $ 211,526,414
NOTES:
* Government-wide net asset information is reported on the accrual basis of accounting.
* Accounting standards require that net assets be reported in three components in the financial
statements: invested in capital assets, net of related debt; restricted; and unrestricted. Net
assets are 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.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB 34.
* Source: Statement of Net Assets, pages 32-33.
(1) In the government-wide financial statements, the County has reported negative unrestricted net assets 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 positive net assets for its governmental activities and for government-wide purposes. Government-
wide unrestricted net assets would have been:
Unrestricted (deficit) net assets reported above $ (29,783,476) $ (14,178,514) $ (6,161,281) $ 7,339,567 $ (3,740,905)
Debt issued for capital on behalf of others 41,941,175 51,839,220 47,345,646 44,460,306 57,496,385
County net assets absent effect of this relationship $ 12,157,699 $ 37,660,706 $ 41,184,365 $ 51,799,873 $ 53,755,480
-164-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET ASSETS BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
(CONTINUED)
2008 2009 2010 2011 2012
$ 117,831,360 $ 123,217,989 $ 121,702,025 $ 118,274,533 $ 117,436,984
15,376,330 16,582,660 22,290,307 22,399,514 5 ,982,041
(15,075,202) (26,672,299) (45,795,597) (61,193,944) (44,098,063)
118,132,488 113,128,350 98,196,735 79,480,103 79,320,962
77,237,512 77,146,688 79,032,373 78,069,061 77,891,395
18,276,271 19,886,675 18,180,809 16,821,905 3 ,513,948
- - - - 12,002,822
95,513,783 97,033,363 97,213,182 94,890,966 93,408,165
195,068,872 200,364,677 200,734,398 196,343,594 195,328,379
33,652,601 36,469,335 40,471,116 39,221,419 9 ,495,989
(15,075,202) (26,672,299) (45,795,597) (61,193,944) (32,095,241)
$ 213,646,271 $ 210,161,713 $ 195,409,917 $ 174,371,069 $ 172,729,127
$ (15,075,202) $ (26,672,299) $ (45,795,597) $ (61,193,944) $ (32,095,241)
53,758,049 50,291,243 57,677,186 72,437,047 68,278,842
$ 38,682,847 $ 23,618,944 $ 11,881,589 $ 11,243,103 $ 36,183,601
-165-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
2003 2004 2005 2006 2007
Expenses
Governmental Activities:
General Government $ 7,537,390 $ 8,902,751 $ 8,774,831 $ 9,071,760 $ 9,854,468
Public Safety 10,161,429 13,064,686 14,255,183 17,534,652 19,149,388
Public Works 7,594,914 7,512,277 8,303,570 8,898,010 9,913,917
Health 952,194 1,123,795 1,284,216 1,377,717 1,450,866
Social Services 4,003,914 4,084,308 4,786,130 4,420,205 4,474,784
Education 43,050,433 46,142,006 40,377,624 42,303,087 56,118,585
Parks & Recreation (3) 2,068,102 3,810,546 2,385,014 2,562,890 3,158,455
Library 975,549 1,020,653 1,073,222 1,168,232 1,266,183
Conservation of Natural Resources 892,015 537,207 591,986 478,426 497,926
Economic/Community Development 1,775,216 1,634,749 1,546,516 1,575,099 3,258,876
Interest and Fiscal Charges 2,649,524 2,981,403 2,288,442 2,508,070 2,864,493
Total Governmental Activities Expenses 81,660,680 90,814,381 85,666,734 91,898,148 112,007,941
Business-type Activities:
Water and Sewer 6,603,225 6,975,749 6,974,968 7,127,140 7,802,798
Parks & Recreation 1,929,891 2,007,419 2,524,904 2,509,783 3,273,986
Public Marinas - - - - 57,372
Airport 492,856 522,863 529,755 713,896 674,337
Total Business-type Activities Expenses 9,025,972 9,506,031 10,029,627 10,350,819 11,808,493
Total Primary Government Expenses 90,686,652 100,320,412 95,696,361 102,248,967 123,816,434
Program Revenues
Governmental Activities:
General Government
Charges for Services 688,216 1,007,791 1,124,756 1,139,531 1,127,737
Operating Grants and Contributions 146,501 185,597 312,136 454,948 377,412
Capital Grants and Contributions 62,382 61,448 22,747 60,000 5,000
Total Revenue 897,099 1,254,836 1,459,639 1,654,479 1,510,149
Public Safety
Charges for Services 720,580 1,197,844 968,857 1,595,738 1,642,258
Operating Grants and Contributions 1,265,912 887,519 1,443,474 1,743,073 1,255,307
Capital Grants and Contributions - 493,132 271,867 456,993 272,497
Total Revenue 1,986,492 2,578,495 2,684,198 3,795,804 3,170,062
Public Works
Charges for Services 692,471 782,252 1,666,335 1,189,117 871,962
Operating Grants and Contributions 4,259,700 3,624,359 4,130,984 3,710,398 5,572,760
Capital Grants and Contributions 230,243 168,092 461,499 57,000 1,838,101
Total Revenue 5,182,414 4,574,703 6,258,818 4,956,515 8,282,823
Health
Operating Grants and Contributions 5,241 - - 150,966 -
Social Services
Charges for Services 265,809 188,032 162,958 58,467 73,497
Operating Grants and Contributions 2,881,622 2,769,345 3,035,511 2,550,840 2,589,967
Capital Grants and Contributions 459,411 829,082 24,388 - 172,732
Total Revenue 3,606,842 3,786,459 3,222,857 2,609,307 2,836,196
Education
Charges for Services 703,191 1,277,905 917,387 1,696,657 963,216
Operating Grants and Contributions - - - 18,000 -
Capital Grants and Contributions - - - - -
Total Revenue 703,191 1,277,905 917,387 1,714,657 963,216
Parks & Recreation
Charges for Services 20,494 14,532 21,724 68,051 158,447
Operating Grants and Contributions 8,893 4,619 - 42,690 58,485
Capital Grants and Contributions 585,164 3,103,241 297,537 5,998,982 4,363,393
Total Revenue 614,551 3,122,392 319,261 6,109,723 4,580,325
Conservation of Natural Resources
Charges for Services 89,691 109,527 150,052 119,580 100,488
Operating Grants and Contributions 250,078 324,573 371,960 680,396 597,613
Capital Grants and Contributions - 5,211 28,535 - -
Total Revenue 339,769 439,311 550,547 799,976 698,101
Economic/Community Development
Charges for Services 24,261 17,615 23,728 11,086 4,083
Operating Grants and Contributions 658,808 465,989 247,404 121,497 120,254
Capital Grants and Contributions 5,000 - - - -
Total Revenue 688,069 483,604 271,132 132,583 124,337
Total Governmental Activities Program Revenues 14,023,668 17,517,705 15,683,839 21,924,010 22,165,209
-166-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2008 2009 2010 2011 2012
$ 11,167,743 $ 13,317,683 $ 14,089,387 $ 15,968,633 $ 13,421,531
20,721,185 23,570,049 25,361,341 25,413,678 25,469,721
10,420,547 10,237,718 9,432,489 9,098,949 10,373,286
1,441,143 1,590,004 1,663,321 1,701,677 1,642,723
4,978,883 5,617,621 5,554,667 5,001,240 4,526,166
58,034,317 53,296,238 53,491,659 57,506,341 53,693,309
3,330,087 5,060,018 3,618,427 3,090,228 -
1,270,718 1,414,008 1,473,689 1,457,336 1,302,163
2,172,443 2,473,308 5,281,372 3,811,748 2,802,337
3,527,908 2,197,116 2,001,306 1,893,570 887,837
3,033,416 2,831,002 3,510,678 4,078,105 4,196,072
120,098,390 121,604,765 125,478,336 129,021,505 118,315,145
9,621,784 10,689,782 10,610,705 10,905,989 10,711,211
2,179,157 2,178,163 2,789,901 4,099,507 2,269,933
27,344 38,050 96,739 67,395 110,884
812,067 879,906 1,017,780 1,167,655 1,457,087
12,640,352 13,785,901 14,515,125 16,240,546 14,549,115
132,738,742 135,390,666 139,993,461 145,262,051 132,864,260
1,047,371 1,055,945 1,261,230 1,086,641 1,081,808
295,898 403,018 546,176 694,347 742,205
757,975 5,567 44,743 118,100 116,710
2,101,244 1,464,530 1,852,149 1,899,088 1,940,723
3,167,090 1,394,463 1,263,212 1,090,545 1,320,647
1,254,611 1,266,869 1,891,120 1,461,080 1,113,018
1,171 273,176 303,566 82,885 191,223
4,422,872 2,934,508 3,457,898 2,634,510 2,624,888
1,014,600 714,765 791,796 872,352 1,107,426
6,304,965 7,566,648 632,923 546,719 488,027
544,610 298,500 264,078 901,289 541,887
7,864,175 8,579,913 1,688,797 2,320,360 2,137,340
- - - - -
64,041 68,386 67,423 69,382 71,655
2,911,796 2,928,291 2,666,917 2,050,062 2,076,096
613,804 348,124 2,688,245 215,748 18,691
3,589,641 3,344,801 5,422,585 2,335,192 2,166,442
1,011,013 740,213 852,201 755,443 1,169,425
- 8,050 433,000 - -
- 161,673 - - -
1,011,013 909,936 1,285,201 755,443 1,169,425
302,195 240,954 177,568 187,901 -
72,659 509 123,336 1,868 -
5,666,226 1,087,329 631,504 199,698 -
6,041,080 1,328,792 932,408 389,467 -
88,534 97,481 101,019 75,354 98,593
322,718 55,847 93,002 1,006,138 36,872
- 691,085 4,191,024 1,923,471 998,757
411,252 844,413 4,385,045 3,004,963 1,134,222
5,249 4,786 - 4,236 159,492
163,245 641,305 - 239,893 245,143
- - - 110,561 81,867
168,494 646,091 - 354,690 486,502
25,609,771 20,052,984 19,024,083 13,693,713 11,659,542
CONTINUED
-167-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2003 2004 2005 2006 2007
Business-type Activities:
Water and Sewer
Charges for Services $ 6,738,431 $ 7,206,833 $ 6,704,817 $ 8,057,402 $ 12,169,440
Operating Grants and Contributions - - 541,052 - -
Capital Grants and Contributions 2,506,457 868,581 994,303 12,576,490 5,015,603
Total Revenue 9,244,888 8,075,414 8,240,172 20,633,892 17,185,043
Parks & Recreation
Charges for Services 883,297 1,051,908 1,099,161 1,576,001 1,581,030
Operating Grants and Contributions - - 330,204 387,270 1,279,648
Capital Grants and Contributions 658,120 145,975 4,000 469,624 144,844
Total Revenue 1,541,417 1,197,883 1,433,365 2,432,895 3,005,522
Public Marinas
Charges for Services - - - - 108,100
Operating Grants and Contributions - - - - 92,348
Capital Grants and Contributions - - - - -
Total Revenue - - - - 200,448
Airport
Charges for Services 179,029 149,601 182,092 23,661 32,683
Operating Grants and Contributions - - - 4,448 1,112
Capital Grants and Contributions 41,190 23,636 69,595 6,368,327 667,166
Total Revenue 220,219 173,237 251,687 6,396,436 700,961
Total Business-type Activities Program Revenues 11,006,524 9,446,534 9,925,224 29,463,223 21,091,974
Total Primary Government Program Revenues 25,030,192 26,964,239 25,609,063 51,387,233 43,257,183
Net (Expense) Revenue (1)
Governmental activities ( 67,637,012) ( 73,296,676) ( 69,982,895) ( 69,974,138) ( 89,842,732)
Business-type activities 1,980,552 ( 59,497) ( 104,403) 19,112,404 9,283,481
Total Primary Government Net Expense $ ( 65,656,460) $ ( 73,356,173) $ ( 70,087,298) $ ( 50,861,734) $ ( 80,559,251)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes (2) $ 66,274,065 $ 75,137,137 $ 80,932,258 $ 87,157,631 $ 90,910,849
Grants and Contributions Not Restricted to Specific Programs - - 88,750 - -
Investment income 274,585 285,279 682,682 1,738,114 3,162,830
Gain (Loss) on Sale of Capital Assets 58,529 ( 452,997) - 2,983,087 13,605
Miscellaneous 608,688 724,069 1,063,336 997,032 1,928,398
Transfers In (Out) ( 554,940) ( 154,916) ( 3,055,362) 2,396,851 ( 1,070,297)
Special Items - Gain 832,718 215,000 - - -
Extraordinary Loss ( 24,430) - - ( 477,707) -
Total Governmental Activities 67,469,215 75,753,572 79,711,664 94,795,008 94,945,385
Business-type Activities:
Investment income 756,118 635,674 634,413 771,883 956,687
Gain (Loss) on Sale of Capital Assets ( 39,866) - - - 4,691
Miscellaneous 333,402 915,879 772,083 562,482 876,714
Transfers In (Out) 554,940 154,916 3,055,362 ( 2,396,851) 1,070,297
Special items - (Loss) - - ( 953,385) - -
Extraordinary Gain - 951,460 - - -
Total Business-type Activities 1,604,594 2,657,929 3,508,473 ( 1,062,486) 2,908,389
Total Primary Government 69,073,809 78,411,501 83,220,137 93,732,522 97,853,774
Change in Net Assets
Governmental activities ( 167,797) 2,456,896 9,728,769 24,820,870 5,102,653
Business-type activities 3,585,146 2,598,432 3,404,070 18,049,918 12,191,870
Total Primary Government $ 3,417,349 $ 5,055,328 $ 13,132,839 $ 42,870,788 $ 17,294,523
NOTES:
* Government-wide net asset information is reported on the accrual basis of accounting.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB34.
* Source: Statement of Activities, pages 34-35.
(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) Beginning in FY12, Parks & Recreation governmental activities will be included in public works.
-168-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2008 2009 2010 2011 2012
$ 8,014,366 $ 7,695,100 $ 8,224,428 $ 8,192,471 $ 7,977,667
- - 98,492 - 55,728
2,584,371 682,935 208,115 837,426 347,573
10,598,737 8,378,035 8,531,035 9,029,897 8,380,968
1,459,725 1,526,244 1,633,203 1,568,227 1,501,550
55,953 45,824 41,838 39,572 52,915
95,890 69,068 289,895 196,487 28,680
1,611,568 1,641,136 1,964,936 1,804,286 1,583,145
105,900 100,250 62,600 84,987 102,290
3,710 - 29,017 16,241 14,183
- - 545,123 588,326 78,314
109,610 100,250 636,740 689,554 194,787
46,960 34,907 50,585 37,955 58,589
- - 33,922 3,715 47,412
382,945 289,112 1,519,810 448,600 693,162
429,905 324,019 1,604,317 490,270 799,163
12,749,820 10,443,440 12,737,028 12,014,007 10,958,063
38,359,591 30,496,424 31,761,111 25,707,720 22,617,605
( 94,488,619) ( 101,551,781) ( 106,454,253) ( 115,327,792) ( 106,655,603)
109,468 ( 3,342,461) ( 1,778,097) ( 4,226,539) ( 3,591,052)
$ ( 94,379,151) $ ( 104,894,242) $ ( 108,232,350) $ ( 119,554,331) $ ( 110,246,655)
$ 91,853,216 $ 95,530,316 $ 90,469,883 $ 96,093,533 $ 105,693,926
- - - - -
2,128,509 642,472 144,553 136,523 126,650
- 1,540,404 26,731 281,158 27,627
721,946 2,182,525 786,719 711,868 1,254,255
( 11,581) ( 3,348,074) ( 559,331) ( 611,922) ( 605,996)
- - - - -
- - - - -
94,692,090 96,547,643 90,868,555 96,611,160 106,496,462
875,509 595,279 436,045 407,629 374,665
- - - - -
919,828 918,688 962,540 884,772 1,127,590
11,581 3,348,074 559,331 611,922 605,996
- - - - -
- - - - -
1,806,918 4,862,041 1,957,916 1,904,323 2,108,251
96,499,008 101,409,684 92,826,471 98,515,483 108,604,713
203,471 ( 5,004,138) ( 15,585,698) ( 18,716,632) ( 159,141)
1,916,386 1,519,580 179,819 ( 2,322,216) ( 1,482,801)
$ 2,119,857 $ ( 3,484,558) $ ( 15,405,879) $ ( 21,038,848) $ ( 1,641,942)
-169-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2003 2004 2005 2006 2007
Local Property Taxes $ 36,257,473 $ 39,784,933 $ 42,121,614 $ 44,688,709 $ 46,185,050
Local Income Tax 23,471,091 27,738,830 29,957,555 31,959,096 35,346,494
Other Local Taxes 6,545,501 7,613,374 8,853,089 10,509,826 9,379,305
Total Taxes - Governmental Activities $ 66,274,065 $ 75,137,137 $ 80,932,258 $ 87,157,631 $ 90,910,849
2008 2009 2010 2011 2012
Local Property Taxes $ 50,021,587 $ 55,362,114 $ 59,267,240 $ 60,070,368 $ 65,937,415
Local Income Tax 35,700,111 34,834,937 25,715,247 30,624,679 34,028,234
Other Local Taxes 6,131,518 5,333,265 5,487,396 5,398,486 5,728,277
Total Taxes - Governmental Activities $ 91,853,216 $ 95,530,316 $ 90,469,883 $ 96,093,533 $ 105,693,926
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Source: Statement of Activities, pages 34-35.
-170-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2003 2004 2005 2006 2007
General Fund:
Reserved $ 5,578,543 $ 5,766,939 $ 5,705,316 $ 6,169,255 $ 7,140,303
Unreserved 3,269,461 5,669,161 4,104,926 14,944,399 15,302,827
Total General Fund 8,848,004 11,436,100 9,810,242 21,113,654 22,443,130
All Other Governmental Funds:
Reserved 9,570,304 12,329,623 15,075,521 13,751,478 20,060,988
Unreserved, reported in:
Capital Projects Fund 6,465,484 11,835,783 11,706,521 13,579,649 17,618,012
Special Revenue Funds 2,972,713 2,698,617 3,156,479 2,810,027 3,019,522
Total All Other Governmental Funds 19,008,501 26,864,023 29,938,521 30,141,154 40,698,522
Total All Governmental Funds $ 27,856,505 $ 38,300,123 $ 39,748,763 $ 51,254,808 $ 63,141,652
2008 2009 2010 2011 2012
General Fund:
Reserved $ 8,948,231 $ 8,643,600 $ 7,734,692 $ - $ -
Unreserved 3,972,847 6,381,843 6,296,418 - -
Nonspendable (1) - - - 4,000 555,215
Restricted (1) - - - 333,798 340,670
Committed (1) - - - 657,068 695,944
Assigned (1) - - - 70,000 -
Unassigned (1) - - - 4,753,656 11,207,265
Total General Fund 12,921,078 15,025,443 14,031,110 5,818,522 12,799,094
All Other Governmental Funds:
Reserved 16,706,954 17,007,368 15,153,381 - -
Unreserved, reported in:
Capital Projects Funds 14,409,216 1,723,066 12,538,916 - -
Special Revenue Funds 2,185,304 2,751,120 7,842,939 - -
Nonspendable (1) - - - 4,401,483 5,136,024
Restricted (1) - - - 22,065,716 12,255,292
Committed (1) - - - 1,820,818 2,054,749
Assigned (1) - - - 14,745,215 18,654,017
Unassigned (1) - - - (172,381) (157,828)
Total All Other Governmental Funds 33,301,474 21,481,554 35,535,236 42,860,851 37,942,254
Total All Governmental Funds $ 46,222,552 $ 36,506,997 $ 49,566,346 $ 48,679,373 $ 50,741,348
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, page 36.
(1) As of June 30, 2011, fund balance classifications changed due to the implementation of GASB 54.
-171-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2003 2004 2005 2006 2007
Revenues
Taxes
Local Property Taxes $ 36,238,606 $ 39,771,711 $ 42,191,297 $ 44,657,603 $ 46,208,342
Local Income Taxes 23,517,175 2 6,765,483 2 8,237,534 3 1,633,987 3 4,980,663
Other Local Taxes 6,545,501 7 ,613,374 8 ,853,089 1 0,509,826 9 ,379,305
State Shared Taxes 4,424,763 3 ,660,145 4 ,528,046 4 ,233,139 5 ,125,419
Licenses and Permits 1,410,491 6 47,633 8 29,784 8 24,917 8 95,931
Intergovernmental 6,351,125 9 ,261,854 6 ,049,496 1 1,476,325 1 0,661,130
Bond Interest Reimbursement - Build America Bond - - - - -
Charges for Current Services 1,248,229 3 ,464,771 3 ,394,626 4 ,864,374 3 ,806,563
Fines and Forfeitures 2 9,443 3 8,798 4 8,654 7 7,008 2 39,194
Special Assessments 4 3,067 (7,528) - - -
Investment Income 465,164 4 10,845 9 07,275 1 ,738,139 3 ,162,830
Donations 8 1,350 9 3,178 1 04,093 9 8,610 7 4,694
Miscellaneous 8 53,309 9 54,621 1 ,567,883 1 ,346,669 1 ,853,706
Total Revenues 81,208,223 9 2,674,885 9 6,711,777 1 11,460,597 1 16,387,777
Expenditures
Current
General Government (1) 7,729,416 8 ,851,440 8 ,933,985 9 ,516,299 8 ,772,229
Public Safety 9 ,829,451 1 1,970,575 1 3,199,057 16,356,949 1 7,918,740
Public Works 6 ,790,032 7 ,872,914 9 ,055,472 9 ,168,186 9 ,167,362
Health 8 07,489 1 ,101,713 1 ,261,488 1 ,355,057 1 ,428,395
Social Services 4,303,930 4 ,922,755 4 ,367,736 4 ,294,781 4 ,260,927
Education 4 3,050,433 4 6,689,001 4 0,421,109 4 2,346,958 5 6,163,966
Parks and Recreation 2,616,946 6 ,266,051 2 ,481,296 9 ,096,593 2 ,809,748
Library 9 51,939 9 97,043 1 ,049,612 1 ,144,622 1 ,242,573
Conservation of Natural Resources 880,058 5 65,218 5 78,426 5 08,606 4 83,810
Economic/Community Development 1,848,707 1 ,809,329 1 ,552,689 1 ,558,978 3 ,188,316
Miscellaneous - - - - 9 15,542
Capital Outlay 1 ,488,726 1 ,173,687 1 ,280,650 1 ,049,361 1 4,291,416
Debt Service
Principal 2 ,690,928 4 ,029,332 5 ,928,559 3 ,677,307 3 ,795,769
Debt Issuance Costs - - - - 2 36,899
Interest and Fiscal Charges 2,695,664 2 ,780,312 2 ,555,411 2 ,569,650 2 ,257,928
Total Expenditures 85,683,719 9 9,029,370 9 2,665,490 1 02,643,347 1 26,933,620
Excess (Deficiency) of Revenues over (under) Expenditures (4,475,496) (6,354,485) 4 ,046,287 8 ,817,250 (10,545,843)
Other Financing Sources (Uses)
Issuance of Debt - 1 6,602,500 3 0,026,336 - 2 3,219,790
Re-allocation of 2006 Bonds - - - - -
Bond Premiums - - 1 ,069,864 - 2 36,899
Payments to Bond Refunding Agent - - - - -
Bond Issuance Costs - - (159,647) - -
Proceeds of Capital Asset Disposals 9 8,000 1 35,520 1 54,787 1 ,176,860 8 8,535
Insurance Proceeds - - - - -
Capital Contributions - Developer - - 8 8,750 - -
Transfers In 3 ,806,476 9 ,647,582 1 0,661,440 8 ,578,135 1 3,131,736
Transfers Out (4,361,416) (9,802,498) (13,716,802) (6,181,284) (14,202,033)
Defeasance of debt - - (30,722,375) - -
Total Other Financing Sources (Uses) (456,940) 1 6,583,104 (2,597,647) 3 ,573,711 2 2,474,927
Special and Extraordinary Items
Special Item 8 85,140 2 15,000 - - -
Extraordinary Gains (Losses) (24,430) - - (477,707) (42,242)
Total Special Items and Extraordinary Gains (Losses) 860,710 2 15,000 - (477,707) (42,242)
Net Increase (Decrease) in Fund Balances $ (4,071,726) $ 10,443,619 $ 1,448,640 $ 11,913,254 $ 11,886,842
Debt service as a percentage of non-capital expenditures (2, 3) 6.40% 6.96% 9.28% 6.15% 5.37%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances, page 38,
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities, pages 40-41.
(1) For all fiscal years, "General Government" includes amounts previously classified as "Miscellaneous," "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 Capital Outlay.
-172-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2008 2009 2010 2011 2012
$ 50,007,054 $ 55,374,053 $ 59,242,742 $ 60,097,959 $ 65,918,832
3 4,767,725 3 5,988,334 29,647,125 2 9,527,496 3 5,969,879
6 ,131,518 5 ,333,265 5,487,396 5 ,398,486 5 ,728,277
5 ,306,763 7 ,591,829 508,138 2 30,401 3 06,235
8 90,821 8 74,639 863,782 9 19,663 8 77,365
1 2,199,511 8 ,049,695 12,061,066 8 ,777,729 5 ,867,211
- - 193,567 4 38,022 4 32,212
4 ,049,902 3 ,326,696 3,396,080 3 ,143,846 3 ,908,998
1 ,759,370 1 15,658 258,937 7 8,345 2 22,683
- - - - -
2 ,128,509 6 42,472 144,553 1 36,523 1 26,650
2 47,002 7 6,867 140,731 1 09,342 4 6,332
7 19,067 2 ,182,525 786,719 7 08,455 1 ,254,255
1 18,207,242 1 19,556,033 112,730,836 1 09,566,267 1 20,658,929
1 0,128,699 1 0,841,479 10,608,976 1 0,397,457 9 ,171,830
1 9,292,661 2 0,483,238 21,344,575 2 1,127,321 2 0,985,077
9 ,182,618 8,678,715 7,671,352 7 ,277,767 7 ,733,226
1 ,430,670 1 ,572,848 1,637,101 1 ,670,222 1 ,604,462
4 ,747,491 5 ,029,493 4,767,647 4 ,098,650 3 ,533,022
5 8,086,283 5 3,348,513 53,545,597 5 7,566,865 5 3,755,497
3 ,083,038 3 ,145,367 3,055,335 2 ,521,175 -
1 ,247,108 1 ,390,398 1,424,078 1 ,433,725 1 ,277,993
2 ,177,820 2 ,445,352 5,263,577 3 ,872,916 2 ,794,262
3 ,513,153 1 ,968,587 1,847,195 1 ,715,524 7 58,089
7 31,771 7 06,792 1,373,090 4 ,699,452 3 ,704,702
1 3,676,569 8 ,594,972 7,868,741 4 ,838,581 2 ,755,949
4 ,888,405 5 ,089,347 4,948,144 6 ,964,558 7 ,095,307
3 ,972 (423) 145,884 1 29,671 1 62,021
3 ,147,529 2 ,778,490 3,114,505 3 ,629,426 4 ,116,939
1 35,337,787 1 26,073,168 128,615,797 1 31,943,310 1 19,448,376
(17,130,545) (6,517,135) ( 15,884,961) (22,377,043) 1 ,210,553
5 10,617 1 22,780 29,299,154 2 1,897,570 8 ,010,000
(345,955) - - - -
3,972 (423) 157,800 1 39,136 7 13,235
- - - - (8,557,455)
- - - - -
4 5,494 6 4,089 30,861 5 82,601 4 7,396
8 ,898 4 4,907 15,826 9 9,028 1 1,631
- - - - -
1 7,014,307 5 ,449,499 18,184,911 5 ,386,256 9 ,635,881
(17,025,888) (8,879,272) ( 18,744,242) (6,614,521) (10,369,909)
- - - - -
2 11,445 (3,198,420) 28,944,310 2 1,490,070 (509,221)
- - - - 1 ,360,643
- - - - -
- - - - 1 ,360,643
$ (16,919,100) $ (9,715,555) $ 13,059,349 $ (886,973) $ 2,061,975
6.61%# 6.70%# 6.68% 8.33% 9.61%
-173-

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
2003 $ 7 28,512,663 $ 2 ,858,309,623 $ 3 ,586,822,286 $ 0 .9760 $ 64,201,229 $ 3 ,651,023,515 $ 2 76,953,744 $ 3 ,927,977,259
2004 7 71,054,050 3 ,208,049,692 3 ,979,103,742 0 .9760 59,945,270 4 ,039,049,012 2 97,843,389 4 ,336,892,401
2005 8 49,272,884 3 ,690,010,496 4 ,539,283,380 0 .9260 57,382,490 4 ,596,665,870 3 30,840,259 4 ,927,506,129
2006 9 50,694,704 4 ,051,000,772 5 ,001,695,476 0 .8700 59,360,390 5 ,061,055,866 3 69,542,935 5 ,430,598,801
2007 1 ,104,093,458 4 ,526,502,291 5 ,630,595,749 0 .8000 63,168,480 5 ,693,764,229 4 19,303,486 6 ,113,067,715
2008 1 ,291,356,759 5 ,045,464,776 6 ,336,821,535 0 .7700 61,729,010 6 ,398,550,545 4 74,798,401 6 ,873,348,946
2009 1 ,503,024,419 5 ,518,534,961 7 ,021,559,380 0 .7700 61,513,370 7 ,083,072,750 5 47,163,868 7 ,630,236,618
2010 1 ,606,785,131 5 ,911,287,556 7 ,518,072,687 0 .7700 62,858,590 7 ,580,931,277 5 96,219,654 8 ,177,150,931
2011 1 ,625,886,760 6 ,054,844,995 7 ,680,731,755 0 .7671 59,364,960 7 ,740,096,715 6 44,654,739 8 ,384,751,454
2012 1 ,485,091,345 6 ,139,645,414 7 ,624,736,759 0 .8471 60,635,440 7 ,685,372,199 6 94,372,116 8 ,379,744,315
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.
-175-

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)
2003 $ 0 .9760
2004 0 .9760
2005 0 .9260
2006 0 .8700
2007 0 .8000
2008 0 .7700
2009 0 .7700
2010 0 .7700
2011 0 .7671
2012 0 .8471
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.
-176-

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
2003 $ 0 .0600
2004 0 .0600
2005 0 .0600
2006 0 .0600
2007 0 .0600
2008 0 .0600
2009 0 .0600
2010 0 .0600
2011 0 .0600
2012 0 .0600
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
-177-

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
2003 $ 0 .4800 $ 0 .1000 $ 0 .3400 $ 0 .2800 $ 0 .1800
2004 0 .4800 0 .1000 0 .3400 0 .2800 0 .1800
2005 0 .4800 0 .1000 0 .3400 0 .2800 0 .1800
2006 0 .4800 0 .1000 0 .3400 0 .2800 0 .1800
2007 0 .4700 0 .1000 0 .3400 0 .2800 0 .1800
2008 0 .4300 0 .1000 0 .3400 0 .2800 0 .1800
2009 0 .3950 0 .1000 0 .3400 0 .2800 0 .1800
2010 0 .3800 0 .1000 0 .3400 0 .2800 0 .1800
2011 0 .3800 0 .1000 0 .3400 0 .2800 0 .1800
2012 0 .3800 0 .2000 0 .3400 0 .2800 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.
-178-

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 .2000 $ 0 .1760 $ 0 .1420
0 .2000 0 .1760 0 .1420
0 .2000 0 .1670 0 .1330
0 .2000 0 .1670 0 .1220
0 .2000 0 .1670 0 .2520
0 .2000 0 .1670 0 .2520
0 .2000 0 .1670 0 .3600
0 .1810 0 .1670 0 .3600
0 .1904 0 .1670 0 .3600
0 .1890 0 .1670 0 .3600
-179-

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, 2012
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 52,302,300 0.68 %
Great American Life Insurance Company 21,335,500 0.28
KRM Development Corporation 17,299,600 0.23
Beach Harbor Campers Cooperative Inc 13,653,800 0.18
Mears Point Association 10,800,000 0.14
Washington Brick & Terracota Company 10,120,500 0.13
Anne Arundel Real Estate Holding Company 9,670,300 0.13
PRS Realty LLC 9,588,300 0.12
Kent Towne Market LLC 8,398,200 0.11
213 Centreville Associates LLC 8,365,100 0.11
Total $ 161,533,600 2.11 %
Total Assessable Base $ 7,685,372,199 100.00 %
For the Fiscal Year Ended June 30, 2003
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 32,519,962 0.96 %
KRM Development 15,382,183 0.46
Mears Point Association 8,043,166 0.24
Washington Brick & Terra Cotta Company 7,679,046 0.23
Bay Bridge Limited 7,154,300 0.21
TC Shopping Center 7,146,800 0.21
213 Centreville Associates LLC 6,932,432 0.21
Pasquale Didonato 6,152,752 0.18
Hunter's Oak LLC 6,081,230 0.18
C&E Enterprises 5,942,500 0.18
Total $ 103,034,371 3.06 %
Total Assessable Base $ 3,369,796,979 1 00.00 %
Source: State of Maryland Department of Assessments and Taxation
-180-

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
2003 $ 34,534,049 $ 34,452,221 99.76% $ 8 1,828 $ 34,534,049 100.00%
2004 38,135,222 38,052,633 99.78% 8 2,589 38,135,222 100.00%
2005 40,608,914 40,542,167 99.84% 6 6,747 40,608,914 100.00%
2006 43,208,732 43,107,941 99.77% 1 00,564 43,208,505 100.00%
2007 44,500,414 44,401,745 99.78% 9 8,450 44,500,195 100.00%
2008 48,575,431 48,505,180 99.86% 6 9,081 48,574,261 100.00%
2009 53,839,023 53,756,369 99.85% 8 0,367 53,836,736 100.00%
2010 57,788,231 57,720,564 99.88% 6 4,129 57,784,693 99.99%
2011 58,758,234 58,696,129 99.89% 5 3,930 58,750,059 99.99%
2012 64,512,256 64,498,505 99.98% - 64,498,505 99.98%
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.
-181-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities
General Total
Fiscal Obligation Notes Capital Governmental
Year Bonds Payable Leases Activities
2003 $ 52,800,000 $ 457,912 $ - $ 53,257,912
2004 62,467,858 3,245,500 1 14,331 65,827,689
2005 60,689,541 684,000 - 61,373,541
2006 56,890,501 622,500 - 57,513,001
2007 75,938,286 561,000 2 48,460 76,747,746
2008 70,752,345 822,617 2 02,978 71,777,940
2009 65,420,921 913,183 1 55,482 66,489,586
2010 88,859,439 1,652,082 1 05,884 90,617,405
2011 103,569,858 1,070,632 5 4,089 104,694,579
2012 97,486,564 889,256 - 98,375,820
Business-type Activities Ratios
Debt to
General Total Total Total Outstanding
Fiscal Obligation Notes Capital Business-type Primary Personal Debt per
Year Bonds Payable Leases Activities Government Income (1) Capita (1)
2003 $ 6,865,000 $ 6,402,363 $ - $ 13,267,363 $ 66,525,275 4.27% $ 1 ,584
2004 5,825,000 5,879,764 - 11,704,764 77,532,453 4.90% 1 ,789
2005 5,383,663 5,343,775 - 10,727,438 72,100,979 4.50% 1 ,624
2006 4,943,663 14,580,581 - 19,524,244 77,037,245 6.91% 1 ,695
2007 4,608,851 22,516,916 - 27,125,767 103,873,513 5.58% 2 ,246
2008 4,094,485 21,058,076 - 25,152,561 96,930,501 4.82% 2 ,024
2009 3,573,768 19,624,863 - 23,198,631 89,688,217 4.24% 1 ,905
2010 3,535,182 18,166,367 - 21,701,549 112,318,954 6.52% 2 ,309
2011 3,523,333 16,692,171 - 20,215,504 124,910,083 7.25% 2 ,608
2012 2,983,432 15,238,959 - 18,222,391 116,598,211 6.97% 2 ,439
NOTES:
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
-182-

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)
2003 $ 59,665,000 1.63% $ 1,421
2004 68,292,858 1.69% 1,575
2005 66,073,204 1.44% 1,488
2006 61,834,164 1.22% 1,360
2007 80,547,137 1.41% 1,742
2008 74,846,830 1.17% 1,563
2009 68,994,689 0.97% 1,465
2010 92,394,621 1.22% 1,899
2011 107,093,191 1.38% 2,236
2012 100,469,996 1.31% 2,102
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.
-183-

Queen Anne’s County is located at the east end of the beautiful Chesapeake Bay Bridge.

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2012
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 116,598,211
Towns: (2)
Centreville 14,462,211
Millington 1,243,175
Queenstown 2,779,923
Sudlersville 2,138,000
Total Net Overlapping Debt 20,623,309
Total Net Direct and Overlapping Debt $ 137,221,520
NOTES:
(1) Net direct debt of the County includes general obligation bonds, notes payable, and capital leases. 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.
-185-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2003 2004 2005
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
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 1,535,000 1,440,000 1,413,663
General Obligation Debt (4) 52,800,000 62,467,858 60,689,541
Subtotal 54,335,000 63,907,858 62,103,204
Total authorized debt under Title 5 and specific public laws 62,335,000 71,907,858 70,103,204
LESS Outstanding bonds, notes payable, and capital leases (5) 66,266,872 77,328,067 72,100,979
Less: Sanitary District debt (4) 11,412,635 10,005,867 9,266,078
Subtotal 54,854,237 67,322,200 62,834,901
Legal Debt Margin - Other than the Sanitary District $ 7,480,763 $ 4,585,658 $ 7,268,303
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 3,651,023,515 $ 4,039,049,012 $ 4,596,665,870
Plus exempt property (3) 276,953,744 297,843,389 330,840,259
Total assessed value $ 3,927,977,259 $ 4,336,892,401 $ 4,927,506,129
Debt Limit - 6% of total assessed value (2) $ 235,678,636 $ 260,213,544 $ 295,650,368
LESS Sanitary District 11,412,635 10,005,867 9,266,078
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 4,264,878 4,289,452 4,105,842
7,147,757 5,716,415 5,160,236
Legal Debt Margin - Sanitary District $ 228,530,879 $ 254,497,129 $ 290,490,132
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 Table 9.
-186-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2006 2007 2008 2009 2010 2011 2012
$ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000
1,413,663 1,538,851 1,509,485 1,493,768 1,905,182 2,378,333 2,338,432
56,890,501 75,938,286 70,752,345 65,420,921 88,859,439 103,569,858 97,486,564
58,304,164 77,477,137 72,261,830 66,914,689 90,764,621 105,948,191 99,824,996
66,304,164 85,477,137 80,261,830 74,914,689 98,764,621 113,948,191 107,824,996
77,037,245 103,625,053 96,727,523 89,688,217 112,318,954 124,910,083 116,598,211
18,069,698 25,552,847 23,615,821 21,684,421 19,782,739 17,830,357 15,883,959
58,967,547 78,072,206 73,111,702 68,003,796 92,536,215 107,079,726 100,714,252
$ 7,336,617 $ 7,404,931 $ 7,150,128 $ 6,910,893 $ 6,228,406 $ 6,868,465 $ 7,110,744
$ 5,061,055,866 $ 5,693,764,229 $ 6,398,550,545 $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715 $ 7,685,372,199
369,542,935 419,303,486 474,798,401 547,163,868 596,219,654 644,654,739 694,372,116
$ 5,430,598,801 $ 6,113,067,715 $ 6,873,348,946 $ 7,630,236,618 $ 8,177,150,931 $ 8,384,751,454 $ 8,379,744,315
$ 325,835,928 $ 366,784,063 $ 412,400,937 $ 457,814,197 $ 490,629,056 $ 503,085,087 $ 502,784,659
18,069,698 25,552,847 23,615,821 21,684,421 19,782,739 17,830,357 15,883,959
3,940,626 4,746,865 4,551,821 4,180,188 3,925,026 3,658,194 3,244,564
14,129,072 20,805,982 19,064,000 17,504,233 15,857,713 14,172,163 12,639,395
$ 311,706,856 $ 345,978,081 $ 393,336,937 $ 440,309,964 $ 474,771,343 $ 488,912,924 $ 490,145,264
-187-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST FOUR FISCAL YEARS
Table 12-b
2009 2010 2011 2012
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. 09-13, as adopted August, 2009.
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 ,083,072,750 $ 7 ,580,931,277 $ 7 ,740,096,715 $ 7 ,685,372,199
2.5% 2.5% 2.5% 2.5%
2.5% of Total Taxable Assessed Base $ 177,076,819 $ 189,523,282 $ 193,502,418 $ 192,134,305
LESS Outstanding and New General Obligation Debt (2) (3)
Enterprise Funds' Debt - Bonds and Notes $ 23,198,631 $ 21,701,549 $ 20,215,504 $ 18,222,391
General Obligation Debt - Bonds and Notes 66,334,104 90,511,521 104,640,490 98,375,820
Total Outstanding and New General Obligation Debt $ 89,532,735 $ 112,213,070 $ 124,855,994 $ 116,598,211
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 87,544,084 $ 77,310,212 $ 68,646,424 $ 75,536,094
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) 47,091 48,650 47,899 47,798
$3,000 Per Capita $ 3,000 $ 3,000 $ 3,000 $ 3,000
$ 141,273,000 $ 145,950,000 $ 143,697,000 $ 143,394,000
LESS Outstanding and New General Obligation Debt (1) $ 89,532,735 $ 112,213,070 $ 124,855,994 $ 116,598,211
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 51,740,265 $ 33,736,930 $ 18,841,006 $ 26,795,789
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 August, 2009, as described in Note 9 F, Queen Anne’s County adopted Resolution No. 09-13, thereby establishing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. For comparative
purposes, this policy has been calculated retroactively for FY09 data, as well as for FY10 data.
This policy requires that the County’s Director of Budget and Finance take the following steps:
(a) prepare a five-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
(e) review and revise this Debt Policy as necessary, but no later than September 1, 2012.
-188-

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, 2012
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 941 1 8.23%
Chesapeake College 489 2 4.28%
Queen Anne's County Government 430 3 3.76%
S.E.W. Friel 275 4 2.41%
Paul Reed Smith Guitars 244 5 2.13%
Safeway 180 6 1.57%
River Plantation 175 7 1.53%
Genesis Healthcare 150 8 1.31%
Harris Seafood Company 150 9 1.31%
Acme Markets 149 10 1.30%
Total 3,183 27.83%
For the Fiscal Year Ended June 30, 2003
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 8 37 1 8.96%
Queen Anne's County Government 4 61 2 4.94%
S.E.W. Friel 2 75 3 2.95%
Chesapeake College 2 00 4 2.14%
Paul Reed Smith Guitars 1 77 5 1.90%
Delmarva Sash & Door, Inc. 1 50 6 1.61%
Sisk Mailing Service 1 45 7 1.55%
Conagra 1 31 8 1.40%
Tidewater Publishing Corp. 1 30 9 1.39%
United Shellfish Co, Inc. 6 5 10 0.70%
Total 2,571 27.54%
Source: Queen Anne's County Economic Development Office; Table 15.
-189-

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)
2003 42,000 $ 1,558,032,000 $ 37,096 3.50% 7 ,457
2004 43,350 1,582,275,000 3 6,500 3.10% 7 ,530
2005 44,392 1,601,707,752 3 6,081 3.50% 7 ,649
2006 45,450 1,114,661,250 2 4,525 3.50% 7 ,162
2007 46,241 1,861,755,142 4 0,262 3.50% 7 ,774
2008 47,886 2,009,392,332 4 1,962 4.00% 7 ,790
2009 47,091 2,113,538,262 4 4,882 6.70% 7 ,774
2010 48,650 1,721,674,850 3 5,389 6.50% 7 ,723
2011 47,899 1,722,448,040 3 5,960 7.00% 7 ,722
2012 47,798 1,672,547,616 3 4,992 6.60% 7 ,757
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: Maryland Department of Labor, Licensing, and Regulation - as of June.
(4) Source: Queen Anne's County Board of Education.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Number of Exempt Employees 3 3 3 3 3 5 3 5 3 6 3 1 29 29 26 26
Number of Full Time Employees 399 413 420 432 470 481 475 461 406 395
Number of Part Time Employees (FTE) 2 9 2 1 2 1 2 3 2 5 2 0 18 17 10 9
Total County Government Employees 461 467 476 490 531 532 522 507 442 430
NOTES:
Source: Queen Anne's County Finance Office.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST SIX FISCAL YEARS
Table 16
2007 2008 2009 2010 2011 2012
Governmental Activities:
General Government 90 90 89 87 77 74
Public Safety:
Police 49 53 52 50 49 53
Fire - Emergency Management Services 69 68 69 67 64 61
Corrections 37 38 42 42 41 42
Animal Services 11 11 8 8 10 10
Public Works 87 91 85 79 61 51
Health 1 1 1 1 1 1
Social Services 40 38 38 37 32 36
Parks (1) 39 40 38 38 20 20
Conservation of Natural Resources 3 3 3 3 3 3
Economic/Community Development 12 12 10 9 7 3
Total Governmental Activities 438 445 435 421 365 354
Business-Type Activities:
Sanitary District 47 46 45 45 44 45
Bay Bridge Airport 3 3 3 3 3 3
Recreation (1) - - - - 4 3
Public Landings 3 3 3 3 3 3
Property Management 5 4 7 7 7 4
Total Business-Type Activities 58 56 58 58 61 58
Component Unit:
Public Housing Authority 10 11 11 11 6 9
Total Full-Time County Employees 506 512 504 490 432 421
NOTES:
(1) Due to the County's reorganization, Parks and Recreation are reported separately starting in fiscal year 2011.
Only full-time County employees are represented in this Table; data relating to full-time equivalents
for part-time employees is not available at this time.
County employees include the Public Housing Authority but exclude other component units. Therefore,
no employees are listed for the Education or Library functions, which relate to the Board of Education
and the Queen Anne's County Free Library component units, respectively.
As data becomes available in future years, this Table will be updated to include data for up to ten fiscal years.
Source: Queen Anne's County Finance Office.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 219 295 272 256 235 23 40 35 27 99
Number of residential permits issued:
Single Family Permits 326 271 247 224 160 138 90 153 106 119
Multi Family Permits 36 - 1 - - - 13 28 4 20
Renovations and Additions Permits 678 745 680 608 541 539 324 304 295 207
Total residential permits issued 1,040 1,016 928 832 701 677 427 485 405 346
Public Safety:
Fire and Rescue:
Number of volunteer members 650 649 630 630 600 663 663 689 689 689
Police:
Uniformed Police Officers 47 50 49 49 49 53 54 54 55 59
Number of law violations:
Physical arrests 1,021 1,112 1,536 1,115 1,413 1,373 1,429 917 1,216 848
Traffic violations 2,322 4,363 5,307 4,962 5,310 5,745 8,276 6,183 5,760 5,818
Detention Center:
Detention Center Officers 29 32 30 31 33 35 37 39 40 38
Average yearly prison population 92 92 96 9 9 1 13 1 12 97 102 103 86
Public Works:
Wastewater Treated - Daily (mgd) 1.6 1.5 1.5 1.5 1.5 1.6 1.7 2.1 1.7 1.9
Education:
Number of Personnel
Teachers 458 459 479 496 501 522 528 533 530 537
Administrators 39 39 39 39 40 40 38 37 37 39
Support 303 302 321 318 327 338 338 336 310 300
Other 46 43 53 59 55 77 76 76 64 47
Number of Students 7,457 7,530 7,649 7,162 7,774 7,790 7,774 7,723 7,722 7,757
Number of High School Graduates N/A N/A N/A 514 563 560 590 562 566 598
NOTES:
N/A - Data not readily available, or not available in a manner consistent with this display.
Source: Various County departments.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 9 9 1 0 1 0 1 0 1 0 10 10 10 10
Equipment:
Engines 1 3 1 6 1 7 1 7 1 6 1 6 16 17 17 17
Tankers 8 7 7 7 9 9 9 9 9 9
Aerial Units 3 4 4 4 4 4 4 5 5 5
Rescue Units 5 5 5 5 5 6 6 7 7 7
Brush Units 7 7 7 7 8 8 8 8 8 8
Air Units (MD State Police) 8 8 1 1 1 3 3 - - -
Boats 5 5 5 5 3 1 1 5 5 5
Ambulance/Medic Units 1 5 1 5 1 5 1 8 2 0 1 6 16 17 17 17
Cars/Other 1 5 2 0 2 0 2 0 1 6 1 7 17 22 22 22
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 4 8 5 8 4 3 3 4 5 4 5 7 64 60 53 62
Other 2 1 6 1 5 2 6 1 5 7 13 17 21 3
Detention Center
Capacity 104 104 104 104 104 104 104 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 524 522 524 534 536 530 539 540 540 540
Unpaved (miles) 1 2 1 3 1 3 1 3 1 2 1 5 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 3 8 4 7 4 7 4 9 5 1 5 6 57 58 59 59
Water Treatment Plants 1 0 1 0 1 0 1 0 1 0 1 1 11 11 11 11
Booster Stations 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 9 7 105 105 107 109 114 116 117 118 118
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 2 8 2 9 2 9 2 9 2 9 3 1 31 31 31 31
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 3 3 3 3 3 3 4 4 4 4
Elementary Schools 7 7 8 8 8 8 8 8 8 8
Parks and Recreation:
Parks 2 4 2 4 2 4 2 8 2 9 3 2 33 33 33 33
Park Acreage 2,022 2,024 2,024 2,579 2,572 2,633 2,633 2,915 2,915 2,915
Public Landings 2 2 2 2 2 1 2 1 2 1 2 1 20 20 21 21
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
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The peaceful existence of life on the water.