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Home My WebLink AboutAgenda - 01-22-2009 - 3dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 22, 2009 Action Agenda Item No. ~_ SUBJECT: Comprehensive Annual Financial Report for FY 2007-08 DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Comprehensive Annual Financial Report (To Be Provided Under Separate Cover) Gary Humphreys, 245-2453 PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2008. BACKGROUND: The CAFR reports on all financial activity of the County for the fiscal year July 1, 2007 through June 30, 2008. The financial report has been audited by McGladrey & Pullen, a firm of Certified Public Accountants that was selected through a Request for Proposals (RFP) process to perform the audit. The financial report and audit are required by Chapter 159- 34 of the North Carolina General Statutes. The County prepares a Comprehensive Annual Financial Report which meets the standards of the Government Finance Officers Association for submission to the Certificate of Achievement for Excellence in Financial Reporting. The County's CAFR has received this award for 26 consecutive fiscal years. The financial report for the SportsPlex required under the management contract is included in the financial statements of the County. The financial results for the fiscal year were very good showing a continued upward trend in operating balances. The County received an unqualified (good) audit opinion on the financial statements from the audit. The Financial Services Director and representatives of McGladrey & Pullen will cover highlights of the report and will be available to answer questions. FINANCIAL IMPACT: The financial report shows a continued improvement in the County's financial condition. The undesignated fund balance of the County's General Fund increased to 13.9% of expenditures and transfers out at the end of the fiscal year. This presents a sound financial position from which to weather coming financial uncertainties. RECOMMENDATION(S): The Manager recommends the Board of County Commissioners receive this report as information. n ~~ ~~ ORANGE COUNTY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2008 Board of County Commissioners January 22, 2009 3-~ FISCAL HIGHLIGHTS • General Fund Activity • Fund Balance Position • Debt Position • Solid Waste Landfill Fund • SportsPlex Enterprise Fund • Single Audit and Grants • Audit Results • Future Financial Challenges GENERAL FUND REVENUES AND TRANSFERS • REVENUES AND TRANSFERS OUT TOTAL $174.7 MILLION • INCREASE OF 3.0% OVER 2007 • LEADING SOURCES OF REVENUE Property Taxes Sales Taxes Intergovernmental Charges for Services 68.3 3.0% 10.0% 5.3 PROPERTY TAXES • ASSESSED VALUE $ 12.6 BILLION 2008 • INCREASE OF 2.0% OVER 2007 • 99.52% OF TOTAL COLLECTIONS TO ADJUSTED LEVY • REMAINS ONE OF THE STATE'S BEST GENERAL FUND EXPENDITURES AND TRANSFERS • EXPENDITURES AND TRANSFERS TOTALED $171.0 MILLION • INCREASE OF 6.2% OVER 2007 • LEADING EXPENDITURES INCLUDE EDUCATION 48.7% HUMAN SERVICES 20.5% PUBLIC SAFETY 9.6% $83.2 MILLION GENERAI. FUND DOLLARS FOR EDUCATION 45.7% of EXPENDITURES Current Expense Capital Debt Service Other $57.0 million $ 6.4 million $18.8 million $ I.0 million FUND BALANCE POSITION • $23.8 Million Undesignated as of 6/30/2008 • Undesignated Fund Balance Up $2.4 Million. • Undesignated Fund Balance 13.9% of 2008 Expenditures and Transfers • Exceeds LGC 8% Recommended Minimum • Positive Movement Toward Staff Recommended 15% Level Undesignated Fund Balance As A Percentage of General Fund Expenditures 18% 16% 14% 12% 10% 8% 6% 4% 2% 0°/ 0 o ~ 11.8% 0 10.5% 1 0 0.4% 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Year Ending Dollar Amount of General Fund Undesignated Fund Balance Shoum in Millions ofDollars $25 $20 $15 $10 $5 $0 1998 1999 2000 2001. 2002 2003 2004 2005 2006 2007 2008 Fiscal Year Ending DEBT POSITION • OUTSTANDING GENERAL FUND DEBT AT 6/30/08 $218.0 MILLION • NET DECREASE IN DEBT OF $153 MILLION • (NO NEW DEBT $ 15.3 RETIRED) • DEBT EVIDENCED BY BONDS ALTERNATIVE $130.3 MILLION $ 87.7 MILLION DEBT POLICY PARAMETERS • Debt Will Not Exceed 3% of Assessed Value - Actual Debt = 1.73% Debt Service Payments Will Not Exceed 15% of General Fund Expenditures and Transfers - Actual Pymts = 14.2% COUNTY CAPITAL PROJECT FUND County Capital project expenditures (mi~~ions) - Community College $3.2 - Justice Facility 7.9 - Central Senior Center 3.0 - Conservation Easements 2.3 - Homestead Aquatics 3•~ - Lands Legacy I •~ - Southern Park 2••~ - West 10 Soccer 1.5 - Other Projects 6.8 Total ~ $ 3 2.8 FUND BALANCE 6-30-08 $ 18.0 MILLION SCHOOL CAPITAL PROJECT FUND Chapel Hill Carrboro Schools - Morris Grove Elementary - Carrboro - Other Total Orange County Schools Total ~ i 8.2 3.6 2.9 $ 24.8 $ 1.7 $ 26.5 FUND BALANCE at 6-30-08 $ .5 MILLION Solid Waste Enterprise Fund • TOTAL REVENUES OF $8.3 MILLION • TOTAL EXPENDITURES OF $8.2 MILLION • $ .I MILLION REVENUES OVER EXPENDITURES • CASH AND INVESTMENTS OF $9.4 MILLION • CURRENT LIABILITIES OF $ I . I MILLION • VERY SOUND FINANCIAL CONDITION • SANITATION WHICH WAS MOVED TO THE ENTERPRISE FUND THIS FISCAL YEAR IS BEING RETURNED TO THE GENERAL FUND NEXT FISCAL YEAR. SPORTSPLEX • Net Assets at Year End of $45 I ,842 • Increase of $ 109,585 in net assets • Operating Revenue increased $ I ,68 I • Operating loss increased $91,984 • Audit Letter Recommended Improvements in Accounting Procedures SINGLE AUDIT AND GRANTS • $ I 12.0 MILLION FEDERAL AND STATE GRANT FUNDS • HEALTH AND HUMAN SERVICES FUNDS TOTAL $93.8 MILLION • HOUSING AND COMMUNITY DEVELOPMENT FUNDS $5.8 MILLION • SINGLE AUDIT COVERS BOTH FINANCIAL AND PROGRAM COMPLIANCE • NO QUESTIONED COSTS AUDIT RESULTS • "Unqualified Opinion" (GOOD) • Successful audit process • Continued Implementation of New GASB Requirements • Auditors Performed Additional SAS Requirements • Sound Financial Policies and Procedures • Findings, Recommendations And Responses. FUTURE FINANCIAL CONSIDERATIONS • Debt Issuance for County Campus, Remaining Parks and Open Space Bonds, Elementary I I, Efland Sewer, Tax System. • Additional General Fund Balance Appropriation needed for Capital Project Funds • Continue Searching For New Revenue Options • Pay and Classification Study • More Consideration to Internal Audit Function • Consideration of ways to reduce future OPEB liability. G O N E S K I I N r~ ~, ~r: .~: {. ~t ~X ; t {i~{ ~ M'-~~ r ~. ~ ~ ik i r ; ~., ,h k, ~~ ~ i. + ~ ~ a = ~ ~~~~4k ~ « ~ -FS ~' i ~ k '41c: ~ ~ . ~. r.t 4 ,e .~_ :a. ,~~r . ~~ ~.; y = st~~~~ ~- ZOOM ZOOM