HomeMy WebLinkAboutAgenda - 12-02-1996 - 15b 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. 5—k
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 2, 1996
SUBJECT: 1995-96 Comprehensive Annual Financial Report
DEPARTMENT: Finance PUBLIC HEARING: YES: NO: X
ATTACHMENT(S): INFORMATION CONTACT:
CAFR and Single Audit Reports Ken Chavious, ext 2450
(under separate cover) TELEPHONE NUMBER:
Hillsborough- 732-8181
Chapel Hill - 968-4501
Mebane - 227-2031
Durham - 688-7331
PURPOSE: To receive the Comprehensive Annual Financial Report(CAFR) and Single Audit Report
for the fiscal year ended June 30, 1996.
BACKGROUND: The CAFR covers all financial activity of the County for the 1995-96 fiscal year,
and the Single Audit Report focuses on grant compliance for the same fiscal year. Both reports result
from the annual audit of the County's financial records which occurred during the past several months.
Presentation of these reports is necessary in order to fulfill the requirements set forth in Chapter 159-
34 of the North Carolina General Statutes.
The results of the 1995-96 audit are very good. Undesignated fund balance in the General Fund as of
June 30, 1996 has improved to 10.4% of 1995-96 expenditures, and 9.7% of 1996-97 original budget
expenditures. Both these figures allow the County to surpass the 8% level established in our budget
guidelines, as well as under North Carolina Local Government Commission recommendations. This
increase also serves to strengthen the County's already solid financial condition. The auditors found
no instances of material weakness in the County's internal controls, and therefore chose not to issue a
Letter of Recommendation, which usually outlines processes or procedures requiring the County's
attention or corrective action.
Although there were several minor findings related to the Single Audit on grant compliance, staff is
pleased with the overall results. Of the $9.9 million in grant funds received by the County, there was
only $3,267 recognized as compliance issues -at this time, we do not expect there to be any repayment
required.. These issues will not impact the continued receipt of grant funds in the areas identified.
The County Finance Director will cover in more detail some of the highlights of the report and will be
available to answer any questions along with representatives of the County's certified public
accountants, Deloitte and Touche.
RECOMMENDATION(S): The Manager recommends that the Board receive the report for
information only.