a. Extension Service Parenting Resource grant application

Readers of this report are reminded that certain assets reported in agency funds are held in the name of the County and represent funds held for others in a fiduciary capacity and, as such, are not available for the general use of the County. The county commission is required to adopt an annual budget on or before October 1 of each year. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the County Commission and to give County departments definite guidelines for operations. The County is legally required to maintain budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) at the fund level. The County's budgetary policy includes provisions for maintaining reserves at an adequate level (7% to 10% of budgeted expenditures) for each separate fund. The County also requires officials to maintain budgetary control at the department level. Local Economy Cass County is home to the state's second largest university, North Dakota State University, with a student body of over 10,500. Also serving the region are another state university and a private college, both located across the river in Moorhead, Minnesota. The area is well known for quality health care services, with two major medical facilities, Dakota Clinic and the affiliated Innovis Hospital, and Meritcare Health System. These facilities serve a large area in both North Dakota and Minnesota, and have a combined daily patient volume of approximately 400 patients. Cass County is a regional trade center that draws from eastern North Dakota, western Minnesota, and central Canada. Taxable sales and purchases through the fourth quarter of 2005 were $2.2 billion, which represents a 4.1 percent increase from 2004. Sales have increased by an average 4 percent over the last ten years. Over the past ten years, the taxable valuation of the County has been growing at an average rate of over 7.0 percent, and the population, as noted above, has been growing at an average rate of 2.0 percent. The taxable valuation growth has occurred mainly in the service industry and in new home construction. These growth trends are expected to continue. Relevant Financial Policies Cash Manaaement Cash is pOOled for the purpose of increasing interest income through investment activities. Cash is primarily invested in demand deposits, money market accounts, and certificates of deposit. These amounts must be deposited in a financial institution situated and doing business within the state. The majority of County investments are short term. Risk Manaaement The County is self-insured for various types of risk including group medical employee benefits and unemployment insurance. Insurance liability reserves as of December 31, 2005 are considered adequate by management to cover the ultimate cost to defend or settle claims arising from these risks. 3