HomeMy WebLinkAboutAgenda - 11-16-1993 - VII-A (2) 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. Vu-A
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 16, 1993
SUBJECT: 1992-93 Comprehensive Annual Financial Report
DEPARTMENT: Finance PUBLIC HEARING YES: NO: X
ATTACHMENT(S) : Financial Report INFORMATION CONTACT:
Management Letter Ken Chavious ext 2453
Single Audit Report TELEPHONE NUMBER-
Hillsborough - 732-8181
Submitted under separate cover Chapel Hill - 968-4501
Mebane - 227-2031
Durham - 688-7331
PURPOSE: To receive the Comprehensive Annual Financial Report for the
fiscal year ended June 30, 1993.
BACKGROUND: The Comprehensive Annual Financial Report covers all financial
activity of the County for the fiscal year 1992-93 . Presentation of this
report is necessary in order to fulfill the requirements set forth in
G.S. 159-34 of the North Carolina General Statutes. The County Finance
Director will make a brief presentation, 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
ORANGE COUNTY
HILLSBOROUGH
NORTH CAROLINA
AL/We/4 WC& &t.cil4elsed./76.2
November 11, 1993
Board of Commissioners
Orange County
Hillsborough, N.C.
We have reviewed the accompanying management letter from
Deloitte & Touche and were pleased to receive a letter which
reveals no material weaknesses in the County' s financial
affairs. We view this management letter as a positive one
which identifies only one area that should be strengthened.
Fixed Assets
Physical inventories of fixed assets are currently
being performed by staff within each department.
Computerized inventory listings are provided to each
department by the Purchasing and Central Services Department
for inventory verification annually. The audit finding
results from the lack of external monitoring of the
departmental verifications.
In order to correct this problem we will establish a
monitoring team to verify inventories presently taken by
departments. Departmental inventories may be monitored
annually, but each departmental inventory will be verified by
the monitoring team at least bi-annually.
New Pronouncements and Requirements
We propose that the GASH pronouncements and requirements
be discussed in detail during a work session or some other
similar setting. We will invite our audit firm in to discuss
financial reporting impacts, implementation chronology and
other related issues during this session.
AREA CODE (919) 732-8181 • 968 4501 • 688-7331 • 227-2031 • FAX (919) 644-3004
Ext 2300
We feel that the above steps are appropriate and will
address the items that the auditors have outlined. We will
be glad to discuss these steps with you at the November 16
meeting, or whenever you desire.
Sincerely,
ohn M. /LinV
• County Manager
Kenneth T. Chavious
Finance Director
/2/1/4-- 5
Deloitte &
Touche
Suite 1800,First Union Capitol Center Telephone:(919)546-8000
150 Fayetteville Street Mall Telex:4995716
P.O.Box 2778 Facsimile:(919)833-3276
Raleigh,North Carolina 27602-2778
September 24, 1993
The Board of County Commissioners
Orange County, North Carolina
•
In planning and performing our audit of the general purpose financial statements of Orange
County, North Carolina for the year ended June 30, 1993, we developed the following
recommendations concerning certain matters related to its internal control structure and certain
recommendations on other accounting adjustments and operating matters. Our comment and
principal recommendations are summarized below.
FIXED ASSETS
The County does not perform periodic physical inventories of fixed assets. Federal grant
requirements as well as proper internal control require the performance of fixed asset
inventories at least once every two years. The County should perform such physical inventory
on an annual basis.
NEW PRONOUNCEMENTS AND REQUIREMENTS
There are a number of pending accounting pronouncements and other regulatory actions which
will be significantly impacting local governments over the next several years. A number of
the pronouncements, while being effective in a future period, may require prior year
restatements of financial information. Accounting Standards issued by the Government
Accounting Standards Board (GASB) which may have significant impact include Statement
No 10. Accounting and Financial Reporting for Risk Financing and Related Insurance Issues,
Statement No 11, Measurement Focus and Basis of Accounting-Governmental Fund
Operating Statements and, Statement No. 12, Disclosure of Information on Postemployment
Benefits Other Than Pension Benefits by State and Local Governmental Employers. In
addition, Senate Bill 111 of the North Carolina Legislature has imposed a wide variety of new
operational and financial requirements on local governments' solid waste systems. These
requirements will necessitate new recordkeeping and cost measurement of solid waste
DeloitteTouche
Tohmatsu
International
The Board of Commissioners
Orange County, North Carolina
Page Two
programs. The Local Government Commission, in the North Carolina Department of State
Treasurer, has recommended that Enterprise Funds be used to provide the necessary
segregation and financial measurement of the solid waste operation.
Because of the extent of potential changes the above may represent, we recommend that the
County begin planning for these new requirements by analyzing those that apply and their
potential impact on the County Operations and financial reporting.
* * * * * * * * * *
This report is intended for the information and use of the Board of County Commissioners,
management and officials of federal and state agencies. However, this report is a matter of
public record and its distribution is not limited.
We will be pleased to discuss these comments with you, and if desired, to assist you in
implementing any of these suggestions.
Yours truly,