The County reports financial information annually in its Annual Comprehensive Financial Report. The basic financial statements include both government-wide statements and fund financial statements. Government-wide statements focus on the County as a whole while fund financial statements focus on major and non-major funds. Fiduciary funds are only reported in the statements of fiduciary net position and changes in fiduciary net position. An out line of the basic fund structure for the County is shown below.

The County reports the following major governmental funds;

General Fund is the County’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Jail District Fund accounts for County jail operations and is funded by a ¼ cent County sales tax. The Jail Construction Fund accounts for construction of the new Yavapai County Justice Center.

Jail District Debt Service Fund accounts for the resources accumulated and payments made on the pledged revenue obligation for the construction of the new Yavapai County Justice Center.

American Rescue Plan Fund accounts for the resources of the Emergency Rental Assistance Program and the State and Local Fiscal Recovery Funds authorized by the American Rescue Plan Act of 2021 to mitigate the fiscal effects stemming from the public health emergency with respect to the Coronavirus Disease (COVID‐19).

Regional Road Fund accounts for road construction and maintenance of major regional roads and is funded by a portion of the ½ cent County sales tax and impact fees.

HURF Road Fund accounts for road maintenance and construction of nonmajor roads and is funded primarily by highway user revenue.

Capital Projects Fund accounts for major capital projects and is funded by a portion of the ½ cent County sales tax.

Capital Projects Debt Service Fund accounts for the resources accumulated and payments made on the revenue refunding obligation for the construction of court and juvenile detention buildings.

The County also reports the following fund types:

Fiduciary Funds consists of private‐purpose trust funds, which account for assets the County’s Public Fiduciary holds in trust for the benefit of various parties; and custodial funds, which account for other fiduciary activities, including pooled and non‐pooled assets the County Treasurer holds and invests on behalf of other governmental entities that are not held in trust and the County Treasurer’s receipt and distribution of taxes for other governmental entities.

The chart above summarizes the County's General Fund and Capital Reserve Fund balances for the last five years and the FY23 budget year. There are varying standards of what is an appropriate amount of fund balance to maintain for a “rainy” day. The Government Financial Officer’s Association (GFOA) recommends, as a best practice, a balance that is no less than two months (about 16.5%) of operating expenditures. As noted in the revenue section above, our most vulnerable resource is sales tax revenue so another recommendation would be to maintain a reserve balance that creates a comfortable safety net should sales tax revenues decline.

For Yavapai County, the increases in General Fund Balance are due primarily to large increases in sales tax revenue, reduction of expenditures, like vehicle purchases during the pandemic and numerous personnel vacancies creating General Fund dollars flowing to the bottom line. The County is in a good financial position which provides opportunity to fund key issues in the County such as compensation to improve retention.