Johnston County Audited Financial Statements for Fiscal Year ending 2023

10 COUNTY OF JOHNSTON Smithfield , North Carolina Financial Statements June 30 , 2023PageCOUNTY OF JOHNSTON , NORTH CAROLINA BOARD AND OFFICERS June 30 , 2023 BOARD OF COUNTY COMMISSIONERS RS Butch Lawter , Jr , Chairman Patrick E Harris , Vice - Chairman Tony Braswell Ted G Godwin Fred J Smith , Jr Richard D Braswell April Stephens OFFICERS County Manager Rick J Hester Finance Director J Chad McLamb , CPA Register of Deeds Craig Olive Tax Administrator Jocelyn Andrews Sheriff Steve BizzellPageCOUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s INDEPENDENT AUDITORS REPORT 1 - 3 MANAGEMENT’S DISCUSSION AND ANALYSIS 4 - 17 BASIC FINANCIAL STATEMENTS Government - wide Financial Statements Statement of Net Position 1 18 Statement of Activities 2 19 Fund Financial Statements Balance Sheet – Governmental Funds 3 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 3a 21 Statement of Revenues , Expenditures , and Changes in Fund Balances – Governmental Funds 4 22 Reconciliation of the Statement of Revenues , Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 4a 23 Statement of Revenues , Expenditures and Changes in Fund Balances – Budget And Actual – General Fund 5 24 Statement of Net Position – Proprietary Funds 6 25 Statement of Revenues , Expenses , and Changes in Fund Net Position – Proprietary Funds 7 26 Statement of Cash Flows – Proprietary Funds 8 - 9 27 - 28 Statement of Fiduciary Net Position – Fiduciary Funds 10 29 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 11 30 NOTES TO THE FINANCIAL STATEMENTS 31 - 96 REQUIRED SUPPLEMENTAL FINANCIAL DATA Schedule of Countys Proportionate Share of Net Pension Asset LGERS A - 1 97 Schedule of the ABC Boards Proportionate Share of Net Pension Liability LGERS A - 2 98 Schedule of the TDAs Proportionate Share of Net Pension Liability LGERS A - 3 99PageCOUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s REQUIRED SUPPLEMENTAL FINANCIAL DATA continued Schedule of the Airport Authoritys Proportionate Share of Net Pension Liability LGERS A - 4 100 Schedule of County Contributions LGERS A - 5 101 Schedule of ABC Board Contributions LGERS A - 6 102 Schedule of TDA Contributions LGERS A - 7 103 Schedule of Airport Authority Contributions LGERS A - 8 104 Schedule of the Countys Proportionate Share of the Net Pension Liability ROD A - 9 105 Schedule of County Contributions ROD A - 10 106 Schedule of Changes in Total Pension Liability – Law Enforcement Officers Special Separation Allowance A - 11 107 Schedule of Total Pension Liability as a Percentage of Covered Payroll – Law Enforcement Officers Special Separation Allowance A - 12 108 Schedule of Changes in the Total OPEB Liability and Related Ratios A - 13 109 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund - Schedule of Revenues , Expenditures and Changes in Fund B - 1 110 - 121 Balance - Budget and Actual Schedules of Revenues , Expenditures and Changes in Fund Balances – Budget B - 1a 122 and Actual - Revaluation Fund Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual - ARPA Coronavirus SLFRF Industrual Development Infrastructure B - 2 123 Combining Balance Sheet – Non - Major Governmental Funds C - 1 124 Combining Statement of Revenues , Expenditures , and Changes in C - 2 125 Fund Balances - Non - Major Governmental FundsPagePage pageNumber5COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Combining Balance Sheets – Non - Major Special Revenue Funds C - 3 126 Combining Statement of Revenues , Expenditures , and Changes in Fund Balances – Non - Major Special Revenue Funds C - 4 127 Schedules of Revenues , Expenditures and Changes in Fund Balances – Budget and Actual Moccasin Creek Drainage District - Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 5 128 Heritage Commission Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 6 129 Communication Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 7 130 Research Training Zone – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 8 131 Voluntary Ag District - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 9 132 Fines and Forfeitures – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 10 133 Representative Payee Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 11 134 Deed of Trust Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 12 135 Opiod Settlement Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual C - 13 136 Grant Fund - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP C - 14 137 Combining Balance Sheet - Non - Major Capital Projects Funds C - 15 138 Combining Statement of Revenues , Expenditures , and Changes in Fund Balances - - Non - Major Capital Projects Funds C - 16 139 Schedule of Revenues and Expenditures – Budget and Actual School Bond Fund - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP C - 17 140PagePage pageNumber6COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Industrial Development Infrastructure - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP C - 18 141 Public Safety Center Project - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP C - 19 142 Enterprise Funds Combining Statement of Net Position - Non - major Enterprise Funds D - 1 143 - 144 Combining Statement of Revenues , Expenses , and Changes in Net Position - Non major Enterprise Funds D - 2 145 Combining Statement of Cash Flows - Non - major Enterprise Funds D - 3 146 - 147 Administrative Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual Non - GAAP D - 4 148 Solid Waste Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual Non - GAAP D - 5 149 - 150 Phase 6a MSW Landfill Site Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 5a 151 Borrow Areas F1 and G1 – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 5b 152 Ph 4A MSWLF - Area 2 C & DLF Closure – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 5c 153 Water Fund – Schedule of Revenues , Expenditures and Changes in Fund Balance – Budget and Actual Non - GAAP D - 6 154 - 155 NCDOT Waterline Projects – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6a 156 WTP Efficiency Project – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6b 157 Post Clearwell Chemical Feed Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6c 158 NC 96 Economic Development Water Main Extension – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6d 159 Buffalo Road BPS & Transmission Main – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6e 160 385 West Transmission Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6f 161PagePage pageNumber7COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued White Memorial Church Road Water Main – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6g 162 Asbestos Cement Water Main Replacement – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6h 163 WTP Expansion Design Build – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6i 164 Smithfield North Booster Pump Station – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6j 165 WTP Construction Management & Maintenance – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 6k 166 Wastewater Treatment Fund – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7 167 - 168 Wastewater SDF Capital Reserve Fund – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7a 169 Buffalo WWPS Upgrade and Force Main Replacement – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7b 170 Pine Level Wastewater Pump Station Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7c 171 McGees Crossroads Sewer Consolidation Middle Creek Interceptor – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7d 172 Swift Creek Interceptor – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7e 173 WWTP 4MGD Expansion – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7f 174 East Clayton WWPS Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7g 175 Landfill Equalization & WWPS Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7h 176 Reedy Branch WWPS & FM – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7i 177 WWTP Flood Mitigation FEMA – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7j 178 Sewer Rehabilitation Sewer – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7k 179PagePage pageNumber8COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Olive Branch WWPS & FM Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7l 180 ECIA Transmission Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7m 181 Wilsons Mills WWPS Upgrades – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7n 182 Wastewater Hydraulic Modeling – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7o 183 Selma Flow Equalization & WWPS Facilities – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7p 184 Utility Capital Reimbursement EastField – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7q 185 16 Force Main to Buffalo WWPS – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7r 186 Nitrogen Nutrient Credit Acquisition – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7s 187 Four Oaks WWPS & Force Main – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7t 188 WWTP NPDES Permit Expansion – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7u 189 Neuse River WWPS – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7v 190 Duches Downs Gavity Sewer Outfall – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7w 191 WWTP 4 - 8 MGD Expansion – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7x 192 Austin Pond WWPS Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7y 193 WWTP Construction Management and Maintenance – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7z 194 Holt Lake FM & WWPS Upgrade – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7aa 195 210 WWTP Diversion Project – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 7bb 196PagePage pageNumber9COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Water District Funds – Combining Statement of Net Position D - 8 197 Water District SDF Capital Reserve Fund – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 8a 198 Buffalo Water District FY 18 Hydraulic Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 8b 199 Archer Lodge Water District 500,000 Gallon Elevated Storage Tank – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 8c 200 Ingrams WD 2018 Hydraulic Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 8d 201 McGees Water District Ph 1 & 2 - NC 210 WM Improvements – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 8e 202 Section 8 Housing Assistance Payments Fund – Project No NC 19 - V164 - 006 – Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP D - 9 203 Water Districts - Consolidating Information Statement of Net Position - Combined Water District Operating Fund E - 1 204 - 205 Schedule of Revenues and Expenditures - Combined Water District Operating Fund E - 2 206 - 207 Combining Statement of Fiduciary Assets and Liabilities – Custodial Funds F - 1 208 Combining Statement of Changes in Fiduciary Assets and Liabilities – Custodial Funds F - 2 209 OTHER SCHEDULES Schedule of Ad Valorem Taxes Receivable G - 1 210 Analysis of Current Tax G - 2 , G - 2a 211 - 212 Ten Largest Taxpayers G - 2b 213Page0COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2023 Exhibit s Page s COMPLIANCE SECTION Report On Internal Control Over Financial Reporting And On Compliance and Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards 214 - 215 Independent Auditors ’ Report on Compliance with Requirements Applicable to each Major Federal Program and Internal Control over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act 216 - 218 Independent Auditors ’ Report on Compliance with Requirements Applicable to each Major State Program and Internal Control over Compliance in Accordance with OMB Uniform Guidance and the State Single Audit Implementation Act 219 - 221 Schedule of Findings and Questioned Costs 222 - 225 Corrective Action Plan 226 Summary Schedule of Prior Audit Findings 227 Schedule of Expenditures of Federal and State Awards 228 - 232Page1Thompson , Price , Scott , Adams & Co , PA PO Box 398 1626 S Madison Street Whiteville , NC 28472 Telephone 910 642 - 2109 Fax 910 642 - 5958 Alan W Thompson , CPA R Bryon Scott , CPA Gregory S Adams , CPA INDEPENDENT AUDITORS ’ REPORT To the Board of County Commissioners County of Johnston Smithfield , North Carolina Report on the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities , the business - type activities , the aggregate discretely presented component units , each major fund , and the aggregate remaining fund information of the County of Johnston , North Carolina , as of and for the year ended June 30 , 2023 , and the related notes to the financial statements which collectively comprise the County of Johnstons basic financial statements as listed in the table of contents In our opinion , the financial statements referred to above present fairly , in all material respects , the respective financial position of the governmental activities , business - type activities , the discretely presented component unit , each major fund , and the aggregate remaining fund information of the County of Johnston , North Carolina as of June 30 , 2022 , and the respective changes in financial position and cash flows , where applicable , thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America We did not audit the financial statements of Johnston County ABC Board , which represent 228 percent , 1418 percent , and 7216 percent of the assets , net position , and revenues , respectively , of the aggregate discretely presented component units as of June 30 , 2023 , and the respective changes in financial position , and where applicable , cash flows thereof for the year then ended Those statements were audited by other auditors whose report thereon has been furnished to us , and our opinion , insofar as it relates to the amounts included for the Johnston County ABC Board , is based solely on the report of the other auditors Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America GAAS and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States Our responsibilities under these standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report We are required to be independent of the County of Johnston and to meet our other ethical responsibilities , in accordance with the relevant ethical requirements relating to our audit We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions The financial statements of Johnston County ABC Board and Tourism Development Authority were not audited in accordance with Governmental Auditing Standards Members American Institute of CPAs - NC Association of CPAs - AICPAs Private Companies Practice Section 1Page2Responsibilities of Management for the Audit of the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design , implementation , and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement , whether due to fraud or error In preparing the financial statements , management is required to evaluate whether there are conditions or events , considered in the aggregate , that raises substantial doubt about the County’s ability to continue as a going concern for the twelve months beyond the financial statement date , including any currently known information that may raise substantial doubt shortly thereafter Auditors Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement , whether due to fraud or error , and to issue an auditor’s report that includes our opinions Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect material statement when it exists The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error , as fraud may involve collusion , forgery , intentional omissions , misrepresentations , or the override of internal control Misstatements are considered material if there is a substantial likelihood that , individually or in the aggregate , they would influence the judgment made by a reasonable user based on the financial statements In performing an audit in accordance with GAAS and Governmental Auditing Standards , we • exercised professional judgement and maintained professional skepticism throughout the audit • identify and assess the risks of material misstatement of the financial statements , whether due to fraud or error , and design and perform audit procedures responsible to those risks Such procedures include examining , on a test basis , evidence regarding the amounts and disclosures in the financial statements • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the effectiveness of the County of Johnston’s internal control Accordingly , no such opinion is expressed • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluate the overall presentation of the financial statements • conclude whether , in our judgment , there are conditions or events , considered in the aggregate , that raise substantial doubt about the Countys ability to continue as a going concern for a reasonable period of time We are required to communicate with those charged with governance regarding among other matters , the planned scope and timing of the audit , significant audit findings , and certain internal control - related matters that we identified during the audit 2Page3Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Managements Discussion and Analysis , the Local Government Employees Retirement System Schedules of the Countys Proportionate Share of Net Pension Liability and County Contributions , pages 97 and 101 , the Local Government Employees ’ Retirement System Schedules of the Johnston County County Tourism Development Authority’s Proportionate Share of Net Pension Liability and County Contributions , pages 99 and 103 , and the Register of Deeds Supplemental Pension Fund schedules of the Countys Proportionate Share of the Net Pension Asset and County Contributions on pages 105 and 106 , and the Law Enforcement Officers Special Separation Allowance schedules of the Changes in Total Pension Liability and Total Pension Liability as a Percentage of Covered Payroll , pages 107 and 108 , and the Schedule of Changes in the Total OPEB Liability and Related Ratios , page 109 , be presented to supplement the basic financial statements Such information is the responsibility of management , 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 consists of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements responses to our inquiries , the basic financial statements , and other knowledge we obtained during our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the County of Johnston , North Carolina The combining and individual fund statements , budgetary schedules , other schedules , as well as the accompanying Schedule of Expenditures of Federal and State Awards , as required by Title 2 US Code of Federal Regulations CFR Part 200 , Uniform Administrative Requirements , Cost Principles , and Audit Requirements for Federal Awards are presented for purpose of additional analysis and are not a required part of the basic financial statements Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements 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 basic financial statements or to the basic financial statements themselves , and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us In our opinion , based on our audit , the procedures performed as described above , the combining and individual fund financial statements , budgetary schedules , other schedules , and the Schedule of Expenditures of Federal and State Awards are fairly stated , in all material respects , in relation to the basic financial statements as a whole Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December 19 , 2023 , on our consideration of the County of Johnstons 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 the 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 internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County of Johnstons internal control over financial reporting and compliance ______________________________________ Thompson , Price , Scott , Adams & Co , PA Whiteville , NC December 19 , 2023 3Page4JOHNSTON COUNTY , NORTH CAROLINA MANAGEMENT’S DISCUSSION AND ANALYSIS As management of Johnston County , we offer readers of Johnston County’s financial statements this narrative overview and analysis of the financial activities of Johnston County for the fiscal year ended June 30 , 2023 We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the County’s financial statements , which follow this narrative Financial Highlights ? The assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources of Johnston County’s primary government at the close of the fiscal year by 140,427,914 net position ? The primary government’s total net position increased by 77,844,551 , primarily due to increase in property tax , sales tax , and charges for services ? As of the close of the current fiscal year , Johnston County’s governmental funds reported combined ending fund balances of 266,014,934 , an increase of 13,947,407 in comparison with the prior year Approximately 1699 percent of this total amount , or 45,198,296 , is restricted or non - spendable ? At the end of the current fiscal year , legally available fund balance for the General Fund was 212,203,235 , or 6829 percent of total general fund expenditures for the fiscal year ? Johnston County’s total debt decreased by 12,027,631 during the current fiscal year includes premium on issuance as well The key factors in this decrease was due to debt service payments made for the year , with new debt in governmental activities only being issued for lease and IT liabilities Business - type activites did draw down an additional 32M of revolving loans ? Johnston Countys ratings were upgraded to Aaa by Moodys Investors Service and AAA by Standard and Poors rating services , the highest possible credit ratings The County maintained its water and sewer revenue bond ratings of Aa2 from Moodys Investors Service and AA + from Standard and Poors Rating Services Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Johnston County’s basic financial statements The County’s basic financial statements consist of three components ; 1 government - wide financial statements , 2 fund financial statements , and 3 notes to the financial statements see Figure 1 The basic financial statements present two different views of the County through the use of government - wide statements and fund financial statements In addition to the basic financial statements , this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of Johnston County 4Page5Required Components of Annual Financial Report Figure 1 Management’s Basic Discussion and Financial Analysis Statements Government - wide Notes to the Fund Financial Financial Statements Financial Statements Statements Summary Detail Basic Financial Statements The first two statements Exhibits 1 and 2 in the basic financial statements are the Government - wide Financial Statements They provide both short and long - term information about the County’s financial status The next statements Exhibits 3 through 11 are Fund Financial Statements These statements focus on the activities of the individual parts of the County’s government These statements provide more detail than the government - wide statements There are four parts to the Fund Financial Statements 1 the governmental funds statements ; 2 the budgetary comparison statements ; 3 the proprietary fund statements ; and 4 the fiduciary fund statements The next section of the basic financial statements is the notes The notes to the financial statements explain in detail some of the data contained in those statements After the notes , supplemental information is provided to show details about the County’s non - major governmental funds and internal service funds , all of which are added together in one column on the basic financial statements Budgetary information required by the General Statutes also can be found in this part of the statements Following the notes is the required supplemental information This section contains funding information about the County’s pension plans Government - wide Financial Statements The government - wide financial statements are designed to provide the reader with a broad overview of the County’s finances , similar in format to a financial statement of a private - sector business The government - wide statements provide short and long - term information about the County’s financial status as a whole The two government - wide statements report the County’s net position and how it has changed Net position is the difference between the County’s total assets and deferred outflows of resources and the total liabilities and deferred inflows of resources Measuring net position is one way to gauge the County’s financial condition 5Page6The government - wide statements are divided into three categories 1 governmental activities ; 2 business - type activities ; and 3 component units The governmental activities include most of the County’s basic services such as public safety , and general administration Property taxes and state and federal grant funds finance most of these activities The business - type activities are those that the County charges customers to provide These include the water and sewer and landfill services offered by Johnston County The final category is the component units Although legally separate from the County , the ABC Board is important to the County because the County is financially accountable for the Board by appointing its members and because the Board is required to distribute its profits to the County The County then distributes the profits among the County and municipalities in the County The County also reports the Tourism Development Authority and the Airport Authority as component units The government - wide financial statements are on Exhibits 1 and 2 of this report Fund Financial Statements The fund financial statements provide a more detailed look at the County’s most significant activities A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives Johnston County , like all other governmental entities , uses fund accounting to ensure and reflect compliance or non - compliance with finance - related legal requirements , such as the General Statutes or the County’s budget ordinance All of the funds of Johnston County can be divided into three categories governmental funds , proprietary funds , and fiduciary funds Governmental Funds – Governmental funds are used to account for those functions reported as governmental activities in the government - wide financial statements Most of the County’s basic services are accounted for in governmental funds These funds focus on how assets can readily be converted into cash flow in and out , and what monies are left at year - end that will be available for spending in the next year Governmental funds are reported using an accounting method called modified accrual accounting This method also has a current financial resources focus As a result , the governmental fund financial statements give the reader a detailed short - term view that helps him or her determine if there are more or less financial resources available to finance the County’s programs The relationship between governmental activities reported in the Statement of Net Position and the Statement of Activities and governmental funds is described in a reconciliation that is a part of the fund financial statements Johnston County adopts an annual budget for its General Fund , as required by the General Statutes The budget is a legally adopted document that incorporates input from the citizens of the County , the management of the County , and the decisions of the Board about which services to provide and how to pay for them It also authorizes the County to obtain funds from identified sources to finance these current period activities The budgetary statement provided for the General Fund demonstrates how well the County complied with the budget ordinance and whether or not the County succeeded in providing the services as planned when the budget was adopted The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format , language , and classifications as the legal budget document The statement shows four columns 1 the original budget as adopted by the board ; 2 the final budget as amended by the board ; 3 the actual resources , charges to appropriations , and ending balances in the General Fund ; and 4 the difference or variance between the final budget and the actual resources and charges Proprietary Funds – Johnston County has one kind of proprietary fund Enterprise Funds are used to report the same functions presented as business - type activities in the government - wide financial statements Johnston County uses enterprise funds to account for its water and sewer activity and for its landfill operations These funds are the same as those separate activities shown in the business - type activities in the Statement of Net Position and the Statement of Activities Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government Johnston County has five fiduciary funds , all of which are custodial funds 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 start on page 31 of this report Other Information – In addition to the basic financial statements and accompanying notes , this report includes certain required supplementary information concerning Johnston County’s progress in funding its obligation to provide pension benefits to its employees Required supplementary information can be found beginning on page 97 of this report 6Page7Government - Wide Financial Analysis As noted earlier , net position may serve over time as one useful indicator of a government’s financial condition The assets and deferred outflows of resources of Johnston County’s primary government exceeded its liabilities and deferred inflows of resources by 140,427,914 as of June 30 , 2023 The County’s net position increased by 77,844,551 for the fiscal year ended June 30 , 2023 Net position is reported in three categories Net investment in capital assets of 272,938,793 , restricted net position of 46,933,631 , and unrestricted net position of 179,444,510 Johnston County’s Net Position Figure 2 Governmental Business - type Activities Activities Total 2023 2022 2023 2022 2023 2022 Current and Other assists 317,899,506 300,944,727 128,586,055 156,919,224 446,485,561 457,863,951 Capital Assets 117,260,085 103,911,964 397,584,245 319,071,479 514,844,330 422,983,443 Total Assets 435,159,591 404,856,691 526,170,300 475,990,703 961,329,891 880,847,394 Total deferred outflows of resources 51,932,254 54,392,033 10,048,718 10,668,273 61,980,972 65,060,306 Long - term liabilities 424,690,947 493,594,018 239,752,550 219,931,296 664,443,497 713,525,314 Other liabilities 143,749,004 104,501,090 21,283,764 17,977,888 165,032,768 122,478,978 Total Liabilities 568,439,951 598,095,108 261,036,314 237,909,184 829,476,265 836,004,292 Total deferred inflows of resources 34,107,692 28,351,276 19,298,992 18,968,769 53,406,684 47,320,045 Net Position Net investment in capital assets 64,825,454 62,035,930 208,113,339 167,438,983 272,938,793 229,474,913 Restricted 45,708,902 54,509,569 1,224,729 1,297,621 46,933,631 55,807,190 Unrestricted 225,990,154 283,743,159 46,545,644 61,044,419 179,444,510 222,698,740 Total Net Position 115,455,798 167,197,660 255,883,712 229,781,023 140,427,914 62,583,363 The net investment in capital assets category is defined as the County’s investment in County owned capital assets eg land , buildings , machinery , and equipment , less any related debt still outstanding that was issued to acquire those items Johnston County uses these capital assets to provide services to citizens ; consequently , these assets are not available for future spending Although Johnston County’s net investment in capital assets is reported net of the outstanding related debt , the resources needed to repay that debt must be provided by other sources , since the capital assets cannot be used to liquidate these liabilities Another category of net position is restricted net position This represents resources that are subject to external restrictions on how they may be used The final category of net position is unrestricted net position This balance may be used to meet the government’s ongoing obligations to citizens and creditors Unrestricted net position deficit totaled 179,444,510 at June 30 , 2023 This deficit is a result of the situation described in the following paragraph As with many counties in the State of North Carolina , the County’s deficit in unrestricted net position is due primarily to the portion of the County’s outstanding debt incurred for use by the Johnston County Board of Education to construct , renovate and equip schools Under North Carolina law , the County is responsible for providing capital funding for the schools The County has chosen to meet its obligation to provide the schools capital funding by using a mixture of County funds and general obligation debt The assets funded by the County , however , are owned and utilized by the schools Since the County , as the issuing government , acquires no capital assets , the County has incurred a liability without a corresponding increase in assets At the end of the fiscal year , approximately 236,871,092 of the outstanding debt on the County’s financial statements was related to assets included in the public schools and community college financial statements However , since the majority of this school related debt is general obligation debt , it is collateralized by the full faith , credit , and taxing power of the County Accordingly , the County is authorized and required by State law to levy ad valorem taxes , without limit as to rate and amount , as may be necessary to pay the debt service on its general obligation bonds 7Page8The impact on unrestricted governmental net position of the inclusion of the school system debt without the corresponding assets was offset by the following positive factors Continued diligence in the collection of property taxes by maintaining a collection percentage of 9994 , resulted in a slight increase over ? last year’s collection rate of 9990 Due to increasing interest rates , interest revenue increased dramatically ? Continued low cost of debt due to the County’s high bond rating ? Johnston Countys Changes in Net Position Figure 3 Governmental Business - type Activities Activities Total 2023 2022 2023 2022 2023 2022 Revenues Program revenues Charges for services 33,123,388 34,777,110 71,267,098 65,828,537 104,390,486 100,605,647 Operating grants and contributions 27,677,727 36,112,605 5,828,462 5,455,468 33,506,189 41,568,073 Capital grants and contributions 2,878,379 2,610,000 12,335,708 14,250,808 15,214,087 16,860,808 General revenues - - Property taxes 191,800,383 177,598,015 - - 191,800,383 177,598,015 Other taxes 78,533,525 72,702,591 - - 78,533,525 72,702,591 Grants and contributions not - - restricted to specific programs 1,348,470 1,470,204 - - 1,348,470 1,470,204 Other 10,773,990 1,507,923 3,670,714 1,611,827 14,444,704 3,119,750 Total revenues 346,135,862 326,778,448 93,101,982 87,146,640 439,237,844 413,925,088 Expenses Administrative - - 1,457,786 1,394,112 1,457,786 1,394,112 General government 30,361,911 30,515,442 - - 30,361,911 30,515,442 Public safety 70,203,215 62,349,484 - - 70,203,215 62,349,484 Economic and physical 14,687,734 28,166,648 - - 14,687,734 28,166,648 development - Human services 51,348,784 50,793,577 - - 51,348,784 50,793,577 Cultural and recreation 967,824 721,805 - - 967,824 721,805 Education 117,167,062 106,135,563 - - 117,167,062 106,135,563 Interest on long - term debt 8,312,652 9,081,858 - - 8,312,652 9,081,858 Solid Waste - - 9,573,235 8,794,231 9,573,235 8,794,231 Water Districts - - 17,341,489 15,848,902 17,341,489 15,848,902 Water - - 23,223,716 20,229,511 23,223,716 20,229,511 Wastewater - - 11,877,063 12,124,394 11,877,063 12,124,394 Housing Assistance - - 4,870,822 4,645,143 4,870,822 4,645,143 Total expenses 293,049,182 287,764,377 68,344,111 63,036,293 361,393,293 350,800,670 Increase decrease in net position before transfers and special items 53,086,680 39,014,071 24,757,871 24,110,347 77,844,551 63,124,418 Transfers 1,344,818 2,256,313 1,344,818 2,256,313 - - Increase Decrease in net position after transfers and special items 51,741,862 36,757,758 26,102,689 26,366,660 77,844,551 63,124,418 Net position , beginning , restated 167,197,660 203,955,418 229,781,023 203,414,363 62,583,363 541,055 Net position , ending 115,455,798 167,197,660 255,883,712 229,781,023 140,427,914 62,583,363 8Page9Governmental activities Governmental activities increased the County’s net position by 51,741,862 Key elements of this change are as follows Total revenues increased 19,357,414 due to ? An increase of 14,202,368 in ad valorem property taxes ? An increase of 5,830,934 in other taxes which includes local option sales tax and Medicaid hold harmless receipts ? An increase in other revenue primarily interest income of 9,266,067 due to rising interest rates Expenses only increased by 5,284,805 , mainly due to increased expenses in public safety , human services , cultural and recreation and education , which was offset by decreases in general government , economic and physical development and interest ? The largest increase in expenses was in Education , with an increase of 11,031,499 This large increase was due primarily to school construction projects The County has been able to maintain a high tax collection rate of 9994 Business - type activities Business - type activities increased Johnston County’s net position by 26,102,689 Key elements of this increase are as follows Net position increased in the Water Fund 11,170,628 , in the Wastewater Fund 9,053,614 , in the Water District Fund 5,222,753 , and the non - major proprietary funds of 655,694 The County received 4,849,990 in system development fees during the year which were set aside in capital reserve funds ? Charges for services increased due to the growth of water and wastewater connections that Public Utilities provides for its citizens and in residential water sales The number of customers and service connections continue to grow from year to year Public Utilities ’ periodically monitors the impact of their fee structure each year and its impact on the associated revenue bonds In response , fees are adjusted to maintain the required debt coverage and to maintain consistency with cost of living impact Financial Analysis of the County’s Funds As noted earlier , Johnston County uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements Governmental Funds The focus of Johnston County’s governmental funds is to provide information on near - term inflows , outflows , and balances of usable resources Such information is useful in assessing Johnston County’s financing requirements Specifically , fund balance available for appropriation can be a useful measure of a government’s net resources available for spending at the end of the fiscal year The general fund is the chief operating fund of Johnston County At the end of the current fiscal year , Johnston Countys fund balance available in the General Fund was 212,203,235 while total fund balance reached 241,676,492 The governing body of Johnston County has determined that the county should maintain an available fund balance of 15 of general fund expenditures in case of unforeseen needs or opportunities , in addition to meeting the cash flow needs of the County The County currently has an available fund balance of 6829 of general fund expenditures , while total fund balance represents 7777 of that same amount The ARPA fund reflects funds received as part of the Coronavirus relief efforts Fund balance increased by 1,523,985 The County will recognize the unearned revenues in subsequent years At June 30 , 2023 , the governmental funds of Johnston County reported a combined fund balance of 266,014,934 , a 553 percent increase from last year The General Fund balance increased by 29,156,289 The increase in the Countys fund balance can be contributed to a few areas ? The tax collection percentage of the County continues to remain a strong point of its strengthening fund balance For 2023 , the County’s Tax Collection Rate was 9994 ? The revenue from the receipt of sales tax increased 95 The County’s sales tax collections continue to increase since legislation expanded the sales tax base ? The County also saw a significant increase in the collection of ad valorem taxes over the prior year The County saw an increase of ad valorem taxes by approximately 136 million from FY 22 to FY 23 This is a 77 increase that was caused by County growth as well as the increased valuation of home prices in the County ? Most importantly , this increase can also be contributed to the financial policies which the Board has adopted The Board , as well as senior management , continue to monitor the County’s activities and financial position for ways to improve not only the financial position of the County , but provide services in a more efficient manner The County also continuously monitors debt for opportunities to pay down or refinance for savings opportunities 9Page0General Fund Budgetary Highlights During the fiscal year , the County revised the budget on several occasions Generally , budget amendments fall into one of three categories 1 amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available ; 2 amendments made to recognize new funding amounts from external sources , such as Federal and State grants ; and 3 increases in appropriations that become necessary to maintain services Total amendments to the General Fund increased revenues by 35,185,581 The main reasons for these increases were ? COVID and pandemic related funds received by the federal and state governments that the County received and distributed in FY 23 ? Appropriations needed for construction of a new Public Safety Center pending receipt of bond funds Proprietary Funds The County of Johnston’s proprietary funds provide the same type of information found in the government - wide statements , but in more detail Unrestricted net position of the Water Fund amounted to 7,651,815 , the Wastewater Treatment Fund amounted to 6,941,0274 , the Water District Funds amounted to 43,779,702 , and the non - major proprietary funds amounted to 11,826,900 The total decrease in unrestricted net position amounted to 14,498,775 when compared to the prior year Other factors concerning the finances of these funds have already been addressed in the discussion of the County of Johnston’s business - type activities Capital Asset and Debt Administration Capital assets Johnston County’s capital assets for its governmental and business - type activities as of June 30 , 2023 , totals 514,844,330 net of accumulated depreciation amortization These assets include buildings , land , machinery and equipment , park facilities , vehicles , water lines and right to use assets Johnston County’s Capital Assets Figure 4 Governmental Business - type Activities Activities Total 2023 2022 2023 2022 2023 2022 Land 4,788,668 4,788,668 8 , 313,637 8 , 313,637 1 3,102,305 1 3,102,305 Other Improvements 1,229,537 1,464,350 - - 1 , 229,537 1 , 464,350 Buildings Plant and distribution systems 39,181,199 40,865,399 2 15,733,494 1 98,664,826 2 54,914,693 2 39,530,225 Equipment 3,717,524 3,310,804 5 , 843,219 6 , 754,825 9 , 560,743 1 0,065,629 Vehicles 3,971,270 4,002,321 1 , 562,944 5 , 534,214 5 , 571,514 Software 78,186 146,223 - - 7 8,186 1 46,223 Intangibles - - 2 5,512,843 2 5,021,191 2 5,512,843 2 5,021,191 Construction in Progress 62,502,944 49,334,199 1 40,188,481 7 8,747,807 2 02,691,425 1 28,082,006 Right to use assets 1,790,757 1,257,845 4 29,627 4 41,070 2 , 220,384 1 , 698,915 Total 117,260,085 105,169,809 3 97,584,245 3 17,943,356 5 14,844,330 4 24,682,358 Major capital asset transactions during the year include Water and Wastewater Improvements ? Sheriff Department Vehicles ? Emergency Services Equipment ? Continued construction of the Countys new Detention Center and Public Safety Center ? 10Page1Additional information on the County’s capital assets can be found in notes to the Financial Statements pages 44 - 50 Long - term Debt As of June 30 , 2023 , Johnston County had total bonded debt outstanding of 418,315,000 Of this , 221,095,000 is debt backed by the full faith and credit of the County or the Countys water districts The remainder of the Countys debt represents bonds secured solely by specificied revenue sources eg , revenue bonds or specified assets financed eg , limited obligation bonds Johnston County’s Outstanding Debt Figure 5 Governmental Business - type Activities Activities Total 2023 2022 2023 2022 2023 2022 General obligation bonds 178,805,000 203,515,000 4 2,290,000 4 4,725,000 2 21,095,000 2 48,240,000 Limited obligation bonds 77,475,000 82,760,000 6 9,675,000 7 4,985,000 1 47,150,000 1 57,745,000 Unamortized bond premium discounts 25,422,070 28,723,077 3 , 431,158 3 , 804,931 2 8,853,228 3 2,528,008 Clean water revolving loans - - 8 1,669,662 5 2,476,454 8 1,669,662 5 2,476,454 Installment purchase loans - - 9 , 830,000 1 0,375,000 9 , 830,000 1 0,375,000 Revenue Bonds - - 5 0,070,000 5 0,070,000 5 0,070,000 5 0,070,000 Lease Liabilities 1,001,098 1,215,691 1 02,197 2 08,505 1 , 103,295 1 , 424,196 IT Subscription Liabilities 756,466 - 3 03,376 - 1 , 059,842 - Total 283,459,634 316,213,768 2 57,371,393 2 36,644,890 5 40,831,027 5 52,858,658 Johnston County’s total debt decreased by 12,027,631 during the past fiscal year , primarily due to the repayment of debt service , offset by the issuance of water and sewer state revolving loans to finance the construction of the water and sewer system improvements , and the issuance of lease and IT subscription liabilities in accordance with GASB 87 and 96 As mentioned in the financial highlights section of this document , Johnston Countys ratings were upgraded from Aa1 to Aaa from Moodys Investor Services , and AAA from Standard and Poor’s Corporation This bond rating is a clear indication of the sound financial condition of Johnston County This achievement is a primary factor in keeping interest costs low on the County’s outstanding debt The State of North Carolina limits the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries The legal debt margin for Johnston County is 1,641,048,674 The County had general obligation refunding bonds authorized but unissued of 24,225,000 and general obligation school bonds authorized and unissued of 177,000,000 at June 30 , 2023 Additional information regarding Johnston County’s long - term debt can be found in the notes to the financial statements pages 69 - 92 Economic Factors and Next Year’s Budgets and Rates The County is the fastest growing county in the State according to the United States Department of Commerce , Bureau of the Census 2020 census data The County’s overall economy is diversified with a balance of industrial , commercial , and agriculture enterprises The production of pharmaceutical products , heavy equipment , and other products , along with durable goods assembly operations and distribution centers have provided relatively stable employment to County residents and have been the object of significant capital expenditures over the years The County’s estimated average labor force for calendar year 2022 was 108,081 The County’s estimated average unemployment rate for calendar year 2022 was 33 , as compared to the State’s estimated average unemployment rate of 37 for the same period The County’s average unemployment rate for the first six months of calendar year 2023 was 32 , as compared to the State’s average unemployment rate for the same period of 35 The western portion of the County has directly benefited from its proximity to 1 the Research Triangle Park , with over 6,900 acres of land set aside for research and research - oriented manufacturing activities , which includes more than 300 research and development facilities employing over 50,000 persons ; 2 regional employers in and around the City of Raleigh , the State’s capitol and a major urban center , which include private sector opportunities with Fortune 500 companies , federal and State government positions and expanding medical service careers ; and 3 numerous institutions of higher education including North Carolina State University in the City of Raleigh , The University of North Carolina in the Town of Chapel Hill , Duke University and North Carolina Central University in the City of Durham and East Carolina University in the City of Greenville 11Page2The County’s employment base includes approximately 10 of all biopharmaceutical jobs in the State The area southeast of the Town of Clayton is home to two large international pharmaceutical companies , as well as a special purpose Research and Training Zone “ RTZ ” , which is an economic development and training district created through special legislation that supports the special needs of the local pharmaceutical industries The RTZ includes a 30,000 square - foot workforce development center , an educational and technical skills training center that concentrates on life sciences programming , business training , and workforce development in biotechnology and other sciences In September 2018 , a 13 million renovation of the center was completed The renovation allows more hands - on lab training and simulation opportunities and will improve how skilled employees are trained for regional bio - manufacturing industries The County and four neighboring counties including Edgecombe , Nash , Pitt and Wilson , being home to major global biopharmaceutical manufacturing facilities , formed the BioPharma Crescent consortium to help companies locate or expand operations within close proximity to the Research Triangle Park BioPharma Crescent partners , including the NC Biotechnology Center , understand the unique land use and utility requirement for biotech manufacturing , are active in workforce development programs , and participate in incentive grants for new and expanding companies The BioPharma Crescent consortium’s collective colleges , universities , and biopharma - specific training network can provide local businesses with a highly - educated and well - trained network The largest manufacturing employer in the County currently is Grifols Therapeutics Inc “ Grifols ” , an international manufacturer of blood plasma related products for a variety of applications , employing approximately 1,850 The blood plasma facility has been in operation since 1981 and is the primary Grifols manufacturing facility In November 2017 , Grifols received recognition as one of the 500 best companies to work for by Forbes Magazine Grifols ’ facilities and operations at its complex near Clayton include a 155,000 square - foot , 370 million North Fractionation Facility “ NFF ” that opened in 2014 , created an additional 200 jobs , and is the world’s largest , as well as one of the most technologically advanced plasma fractionation facilities The NFF was named the 2014 Facility of the Year for Project Execution by the International Society for Pharmaceutical Engineering Grifols also completed construction in 2017 of a new approximately 225 million , three - story , 100,000 square - foot office building that houses 400 employees , as well as a new approximately 75 million , 59,000 square - foot warehouse In addition , a 210 million expansion was announced in 2016 which includes a 90 million , 82,550 square - foot fractionation plant adjacent to the NFF and a 120 million , 150,000 square - foot purification and filling facility for the production of intravenous immunoglobulin and factor VIII products The two facilities together created approximately 250 new jobs The purification and filling facility is the world’s first filling plant of intravenous immunoglobulins in flexible packaging In June 2020 , Grifols announced it will invest approximately 3516 million to build a specialized blood plasma fractionation facility and logistics center at its campus near Clayton in response to growing global demand for its medicines The expansion is expected to create approximately 300 additional jobs from 2024 to 2028 with an average salary of 69,032 In December 2017 , Grifols purchased an additional 467 acres adjacent to its site near Clayton for future site expansion In June 2021 , Grifols signed a memorandum of understanding stating its intention to donate nearly 100 acres of land to Johnston Community College and the Town of Clayton The land is located at the intersection of Highway 70 and Highway 42 East near its Clayton campus As a leader in humanitarian efforts , Grifols has partnered with the Republic of Liberia and constructed a dedicated processing facility at its complex near Clayton to explore an innovative approach to combat the Ebola virus Since the COVID - 19 pandemic began , Grifols has had more than 25 research initiatives to treat different states of COVID - 19 including 1 developing molecular and immunological diagnostic tests for the diagnosis and screening of COVID - 19 to facilitate early detection of the infection , 2 applying its knowledge and expertise in producing immunoglobulins to manufacture a specific anti - SARS - CoV - 2 hyperimmune globulin at its Clayton campus to combat two different stages of COVID - 19 , 3 conducting clinical trials evaluating the safety , efficacy and tolerability of the intravenously administered anti - SARS - CoV - 2 hyperimmune globulin , 4 carrying out several clinical trials to evaluate the safety and efficacy of convalescent plasma for direct transfusion , 5 collecting plasma from recovered COVID - 19 patients for use in developing potential treatments , using its network of donation centers the largest global network , and 6 joining a coalition of world - class medical and research institutions , blood centers , life - science companies , philanthropic organizations and COVID - 19 survivor groups that has come together to mobilize tens of thousands of people in the US who have recovered from COVID - 19 to donate their plasma Novo Nordisk Pharmaceutical Industries “ Novo Nordisk ” , the world’s largest supplier of insulin products , opened its facility in the Clayton area in 1993 , and currently employs over 1,200 people at its Diabetes Finished Products “ DFP ” manufacturing facility The DFP facility is responsible for the formulation , filling , inspection , assembly and packaging of diabetes and obesity medicines , which are marketed in North America , Europe , New Zealand and Australia Novo Nordisk has expanded its operation in the Clayton area several times over the years An approximately 102 million expansion was completed in recent years which created approximately 110 new jobs 12Page3Novo Nordisk recently completed construction of a new approximately 2 billion , 825,000 square - foot bio - processing facility for Diabetes Active Pharmaceutical Ingredients “ DAPI ” adjacent to its original site in the Clayton area The new facility created approximately 690 jobs with an average annual salary of approximately 68,420 The DAPI facility is one of only two in the world for Novo Nordisk the first outside of Denmark and will ensure production capacity for diabetes care products in the US for the decade ahead Novo Nordisk’s manufacturing facilities in the Clayton area are the company’s first insulin producing facility in the US and the company expects to double production of its diabetes drugs over the next decade Once current plans are realized , approximately 25 of the world’s insulin manufacturing will take place at the company’s facilities in the Clayton area In February 2018 , Novo Nordisk announced plans for a 65 million expansion of the existing DFP facility in the County , which is expected to result in the creation of approximately 25 jobs Another 22 million expansion for the DFP facility was announced in December 2018 creating approximately 22 jobs In September 2022 , the County Board of Commissioners approved incentive support for Novo Nordisk’s commitment to invest millions of dollars and add hundreds of new jobs through a series of expansions that will happen over the next 12 years This was the fifth expansion announcement since 2010 Novo Nordisk recently purchased approximately 104 acres adjacent to its complex in the County for future potential expansio