2022 Annual Comprehensive Financial Report

disbursed to each participating state over an 18-year period according to an allocation agreement reached with all participating states. The majority of these funds are intended for opioid abatement and the distribution of the funds will be front loaded. North Carolina’ Memorandum of Agreement (MOA) between the state and local governments for the settlement funds allocates the funds as follows: • 15% directly to the State (“State Abatement Funds”) • 80% to abate funds established by Local Governments (‘Local Abatement Funds”) • 5% to a County Incentive Funds. The City received $130,492 as part of this settlement in Fiscal Year 2022. Per the terms of the MOA, the City created a special revenue fund, the Opioid Settlement Funds, to account for these funds. All funds are to be used for opioid abatement and remediation activities. Funds are unearned until expended. No funds have been expended as of June 30, 2022. The MOA offered the City two options of expending the funds. The City opted for Option A, which allows the City to fund one or more high-impact strategies from a list of evidence-based strategies to combat the opioid epidemic. I. Reimbursement for Pandemic-Related Expenditures In FY2020-2021, the American Rescue Plan Act (ARPA) established the Coronavirus State and Local Fiscal Recovery to support urgent COVID-19 response efforts and replace lost revenue for eligible state, local, territorial, and tribal governments. The City was allocated $59,430,051 of fiscal recovery funds to be paid in two equal installments. The first installment of $29,715,025.50 was received in June 2021and the second installment was received in June 2022. City Council has elected to use $2,577,157 in FY2022 and used $859,054 in FY2021 of the ARPA funding for revenue replacement. The $2,577,157 used for revenue replacement was transferred to the appropriate funds of the intended use of the funds. J. Interfund Receivables, Payables and Transfers The following is a schedule of interfund receivables and payables due to/from primary government and component units at June 30, 2022: 1. Internal Receivables/Payables:

Receivable by:

General Fund

$

54,500

Current Payable From: Internal Service Fund

Graphic Services

$

54,500

2. Due To/From Primary Government and Component Unit:

Receivable By: General Fund

$

950,909

Payable From: Component Unit - ABC Board

Internal receivables and payables were recorded due to timing lags in receipt of funds from outside parties. Current internal balances represent amounts advanced to the Graphic Services Fund ($54,500).

37aa