HomeMy WebLinkAboutAgenda - 11-16-2004-7bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 16, 2004
Action Agenda
Item No. ~- b
SUBJECT: 2003-2004 Comprehensive Annual Financial Report (CAFR)
DEPARTMENT: Finance PUBIC HEARING: (Y/N) No
ATTACHMENT(S):
CAFR and Single Audit Reports
(Provided under Separate Cover)
INFORMATION CONTACT:
Ken Chavious, ext 2453
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) and Single Audit
Report far the fiscal year ended June 30, 2004.
BACKGROUND: The CAFR covers all financial activity of the County for the 2003-2004 fiscal
year and the Single Audit Report focuses on grant compliance for the same fiscal year, Both
reports result from an annual audit of the County s financial records, which occurred during the
past several months. The audit was performed by Cherry Bekaert & Holland, a firm of
independent Certified Public Accountants. 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 2004 audit were very good. 2004 marked the third year implementation of
Governmental Accounting Standards Board (GASB) statement 34. In addition, the auditors
were required to implement Standards of Auditing Services (SAS) 99 which involved a more
intense consideration of fraud in the County's financial reporting. Eddie Burke of Cherry,
Bekaert & Holland will discuss this briefly with the Board, The auditors found no instances of
material weakness in the County's internal control structure and have issued an "unqualified"
(goad) opinion on our financial statements. In fact, there were only minor audit findings related
to the audit of the CAFR and single audit of grants. A letter is included that outlines
recommendations made by the auditor along with a letter of response from the County Finance
Director, The County Finance Director will cover in more detail some of the highlights of the
report and will be available along with representatives of the Cherry, Bekaert & Holland to
answer any questions.
FINANCIAL IMPACT: The County maintained good financial condition at year-end and is
currently considering opportunities for further improvement of fund balance position,
RECOMMENDATION(S): The Manager recommends that the Board receive the Report for
information only.