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HomeMy WebLinkAbout2019-011-E Finance - Mauldin Jenkins amended audit contract DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 LGC-205 Amended AMENDMENT TO CONTRACT TO AUDIT ACCOUNTS Rev. 10/2018 Whereas Primary Government Unit Orange County,North Carolina and Discretely Presented Component Unit(DPCU) (if applicable) n/a and Auditor Mauldin&Jenkins,PLLC entered into a contract in which the Auditor agreed to audit the accounts of the Primary Government Unit and DPCU (if applicable) Fiscal Year Ending Audit Report Due Date for 06/30/18 and originally due on 12/01/18 hereby agree that it is now necessary that the contract be modified as follows. Original due date Modified due date ❑✓ Modification to due date: 12/01/18 12/04/18 ❑ Modification to fee: Original fee Modified fee EXPLANATION OF MODIFIED CONTRACT TERMS Please provide an explanation for the modification of terms. If the amendment is submitted to extend the due date, please indicate the steps the unit and auditor will take to prevent late filing of audits in subsequent years. By their signatures on the following pages, the Auditor, the Primary Government Unit, and the DPCU (if applicable), agree to these modified terms. Page 1 of 3 DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 LGC-205 Amended AMENDMENT TO CONTRACT TO AUDIT ACCOUNTS Rev. 10/2018 SIGNATURE PAGE AUDIT FIRM Audit Firm Mauldin&Jenkins,PLLC DocuSigned by: Authorized Firm Representative (typed or printed) Signatur EFS0BB3A18F494E4 bttJoel Black ... Date 12/28/2018 Email Address jmblack@mjcpa.com GOVERNMENTAL UNIT Governmental Unit Orange County,North Carolina Date Primary Government Unit Governing Board Approved Audit Contract(Ref:G.s.159-34(a)orG.s.115C-447(a)) 12/18/2018 Docu Sig ned by: Mayor/Chairperson (typed or printed) Signature pUAM_� Kd,, Penny Rich, Chair of County Commissioners F2964641C8E747E... Date Email Address 1/8/2019 prich@orangecountync.gov Chair of Audit Committee (typed or printed,or"NA") Signature n/a Date Email Address n/a GOVERNMENTAL UNIT— PRE-AUDIT CERTIFICATE *ONLY REQUIRED IF FEES ARE MODIFIED IN THE AMENDED CONTRACT* (Pre-audit certificate not required for charter schools or hospitals) Required by G.S. 159-28(al) or G.S. 115C-441(al) This instrument has been pre-audited in the manner required by The Local Government Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. DocuSigned by: Primary Governmental Unit Finance Officer Signature � Gary Donaldson, Chief Financial Officer 704E51S1ACC1409... Date of Pre-Audit Certificate Email Address 12/2 8/2 018 gdonaldson@orangecountync.gov Page 2 of 3 DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 LGC-205 Amended AMENDMENT TO CONTRACT TO AUDIT ACCOUNTS Rev. 10/2018 SIGNATURE PAGE— DPCU (complete only if applicable) DISCRETELY PRESENTED COMPONENT UNIT DPCU n/a Date DPCU Governing Board Approved Audit Contract (Ref:G.S. 159-34(a)or G.S. 115C-447(a)) DPCU Chairperson (typed or printed) Signature Date Email Address Chair of Audit Committee (typed or printed,or"NA") Signature Date Email Address DPCU — PRE-AUDIT CERTIFICATE *ONLY REQUIRED IF FEES ARE MODIFIED IN THE AMENDED CONTRACT* (Pre-audit certificate not required for charter schools or hospitals) Required by G.S. 159-28(al) or G.S. 115C-441(al) This instrument has been pre-audited in the manner required by The Local Government Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. DPCU Finance Officer (typed or printed) Signature Date of Pre-Audit Certificate Email Address Page 3 of 3 DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 11, 2018 Action Agenda Item No. 4-d SUBJECT: Presentation of Comprehensive Annual Financial Report for FYE 6/30/2018 and Approval of Audit Contract Extension DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: 1. GFOA Award for Excellence in Gary Donaldson, (919) 245-2453 Financial Reporting Paul Laughton, (919) 245-2152 2. PowerPoint Presentation - FY 2017-18 Financial Review UNDER SEPARATE COVER 3. Comprehensive Annual Financial Report, June 30, 2018— Hard Copy To Be Provided at the Meeting— CURRENTL Y AVAILABLE ELECTRONICALLY AT. http://www.co.orange.nc.us/732/Finan cial-Audit 4. PowerPoint Presentation-Mauldin & Jenkins— To Be Provided at the Meeting PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2018 and to approve an extension to the audit contract for Mauldin & Jenkins, PLLC. BACKGROUND: The CAFR reports on all financial activity of the County for the fiscal year July 1, 2017 through June 30, 2018. Mauldin and Jenkins, a firm of Certified Public Accountants, audited the financial statements. The financial statements, audit and contract extension are required by Chapter 159-34 of the North Carolina General Statutes. The County prepares a Comprehensive Annual Financial Report (CAFR) that meets the standards set by the Government Finance Officers Association (GFOA). The CAFR is submitted to the GFOA in order to be awarded the Certificate of Achievement for Excellence in Financial Reporting. The financial report for the Orange County SportsPlex, as required under the management contract, is included in the County's CAFR. The County received an unmodified (clean) audit opinion on the financial statements received from the audit. The financial audit results indicate compliance with County financial policies. The Chief Financial Officer and representatives of Mauldin and Jenkins will cover highlights of the report and answer any questions. DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 2 The audit contract extension is required to accommodate Mauldin & Jenkins submittal of the audit report to the Local Government Commission on December 4, 2018. FINANCIAL IMPACT: The financial report indicates a sound financial position for Orange County. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board receive the Comprehensive Annual Financial Report as information and that the Board approve the audit contract extension per North Carolina General Statute. DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 3 Attachment 1 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Orange County North Carolina For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2017 3L44�- P, ;Of�a Executive Director/CEO DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Attachment 2 ORANGE COUNTY NORTH CAROLINA Fiscal Year 2017-18 Review and Summary Gary Donaldson, Chief Financial Officer December 11 , 2018 BOCC Regular Meeting DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 FY 2017- 18 Audited Reserves by Fund County Funds' Beginning of Fiscal Year End of Fiscal Yeai General Fund-Unassigned Fund Balance $ 34,527,885 $ 34,439,230 Article 46 Sales Tax Fund $ 3,267,750 $ 3,515,051 Community Development Fund $ 1,784,091 $ 1,777,410 Health and Dental Fund $ 2,159,028 $ 2,769,276 Housing Section 8 Fund $ 141,597 $ 166,439 Emergency Telephone Fund $ 682,821 $ 664,467 Fire District Tax Funds $ 1,154,712 $ 1,412,712 Visitors Bureau Fund $ 655,824 $ 766,785 Spay/Neuter Fund $ 62,771 $ 64,006 Solid Waste Enterprise Fund 2 $ 4,191,824 $ 7,050,502 S orts lex Enterprise Fund $ 3,579,805 $ 3,580,764 Efland Sewer Operating Fund $ 238,443 $ 297,387 Notes: 1) Beginning Year and Ending Year Reserves for these funds are the fund balances or accumulated amounts for working capital requirements. 2) The Solid Waste Enterprise Ending Reserve increase is a result of the implementation of GASB 74/75(OPEB reporting)and a related adjustment to the OPEB liability on the balance sheet of$2.6 million from the Solid Waste Fund to the Government-wide Fund.The Solid Waste Reserves increase is not due to Operating and/or Profit/Loss performance. ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Fund Balance Policy Compliance Unassigned Fund Balance as % of General Fund Expenditures 17.00% 16.84% 16.50% 16.23% 16.17% 16.00% 15.50% 15.00% FY 2015-16 FY 2016-17 FY 2017-18 Unassigned Fund Balance as Percent of General Fund Expenditures Fund Balance Policy Note: FY 2017-18 Unassigned Fund Balance of 16.23%= $34,439, 230 compared to 16% Policy=$33,951,266 ORANGE The .23% difference=$487,964 NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Debt Service Policy Compliance Debt Service as % of General Fund Revenues 15.00% 12.79% 12.78% 12.40% 10.00% 5.00% FY 2015-16 FY 2016-17 FY 2017-18 Debt Service as Percent of General Fund Revenues Debt Service Policy ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Investment Earnings Performance General Fund Investment Earnings $900,000 $800, $800,000 $700,000 $600,000 $500,000 $437,171 $400,000 $300,000 $200,000 $151,391 $100,000 $34,300 $29,976 $9,738 $15,886 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 20 ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Investment Earnings Performance Solid Waste Fund Investment Earnings $160,000 $140,000 $136,150 $120,000 $100,000 $80,000 $79,72 $60,000 $40,000 $25,317 $20,000 $10,001 $9,535 $2,939 $2,284 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 20 �1 ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Operating Funds Highlights ➢ Met Board County Policies; Unassigned Fund Balance and D, Service Limit; ➢ AAA Bond Rating Affirmation by all 3 Rating Agencies citing Favorable Budget versus Actuals Performance and Reserve L ➢ Refinanced Existing Debt and Achieved $2 million in savings the life of the Debt obligations; ➢ Reduced General Fund subsidy to Solid Waste Fund from $1 $1 .5 million; ➢ Doubled Investment Earnings through timely investment of ce higher interest rate environment three successive fiscal years ➢ Decommissioned structurally imbalanced Vehicle Replaceme Fund in Budget Amendment #10; and ➢ Implemented GASB 74 and 75 for Other Post-Employment BE (OPEB); with no adverse impact on Financial Statements; ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Capital Funds Highlights ➢ Spring Installment Purchase Financing: $7.5 million include Northern Campus acquisition; Government Services Annex relocation of Electrical and HVAC; School Facilities and Buildi Sheriff Dodge Chargers; 3 Emergency Services Ambulances; Animal Services Truck; 1 Solid Waste Truck and 1 Compactc Equipment; IT improvements; and Affordable Housing Land Banking. ➢ General Obligation Bonds: $64.4 million for Chapel Hill Higr School; $15.9 million Orange County Schools Mechanical Sy: Site acquisition, Roofing and Safety improvements; $5.9 milli( Two-thirds bonds for both School Districts; and $2.5 million fo Affordable Housing Bonds for CASA, Empowerment and Hab Humanity Projects. ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Financial Management Monitoring • Monthly and Quarterly Finance Reviews of all F • Budget versus Actual Variance Analyses comps with Prior Year • Financial Analysis Distinguishing Timing versus Performance Variances • Updating Economic indicators and trends in ne, Long-Term Financial Model • Regular Communication and Collaboration with Departments to monitor and improve Financial Results ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Internal Control Key Performance Indica Key Performance Indicators Objective Expenditure Recognition/Cost % of Invoices Not Paid in 30 Days Control % of Purchasing Cards Not Reconciled in 30 Days Authorized Expenditures Revenue Recognition; Accurate Revenues Not Timely Recorded Financial Reporting ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 Next: Independent Auditors Presentatior ORANGE NORTH ( DocuSign Envelope ID: ED487F6F-CC82-456D-AD07-A924ACB3D343 A ��0 CERTIFICATE OF LIABILITY INSURANCE DATE(M 08/22//2018 Y) 018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Brenda Durham NAME: PointeNorth Insurance Group,LLC PAHi�NNo Ext: (770)858-7540 C,No): (770)858-7545 PO Box 724728 E-MAIL bdurham@pointenorthins.com ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# Atlanta GA 31139 INSURERA: Cincinnati Insurance Company 10677 INSURED INSURER B: The Hartford-Rated by Multiple Companies 00914 Mauldin&Jenkins,LLC INSURER C: 200 Galleria Parkway SE INSURER D: Suite 1700 INSURER E: Atlanta GA 30339-5946 INSURER F: COVERAGES CERTIFICATE NUMBER: 2018/2019 Master REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TR INSD WVD POLICY NUMBER POLICY EFF POLICY EXP LIMITS TYPE OF INSURANCE (MM/DD/YYYY) (MM/DD/YYYY) X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 DAMAGE To_7CLAIMS-MADE � OCCUR PREM SES Ea occurrence)l $ 2,000,000 MED EXP(Any one person) $ 5,000 A Y ECP0258054 07/01/2018 07/01/2019 PERSONAL&ADV INJURY $ 2,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4,000,000 X POLICY ❑ PRO ❑ LOC PRODUCTS-COMP/OP AGG $ 4,000,000 JECT OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000.000 (Ea accident) ANYAUTO BODILY INJURY(Per person) $ A OWNED SCHEDULED ECP0258054 07/01/2018 07/01/2019 BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED �/ NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY /� AUTOS ONLY (Per accident) X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 11,000,000 A EXCESS LIAB CLAIMS-MADE EXS0262115 07/01/2018 07/01/2019 AGGREGATE $ 11,000,000 DED I X1 RETENTION $ 0 $ WORKERS COMPENSATION X STATUTE EORH AND EMPLOYERS'LIABILITY Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ 500,000 B OFFICER/MEMBER EXCLUDED? ❑ NIA 20WECAI5405 08/31/2018 08/31/2019 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 500,000 If yes,describe under 500,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,NOTICE WILL BE DELIVERED IN Orange County North Carolina ACCORDANCE WITH THE POLICY PROVISIONS. 200 South Cameron Street AUTHORIZED REPRESENTATIVE Hillsborough NC 27278 W' g Z� ©1988-2015 ACORD CORPORATION. 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