HomeMy WebLinkAboutAgenda - 11-19-2001-6cORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Gate: November 19, 2007
Actlon Agentla
Ilam NO. ~-G
SUBJECT: 2000.2001 Com prehensive Annual Financial Repod
DEPARTMENT: Finance PUBLIC HEARING: (VIN) No
ATTACHMENT(S): INFORMATION CONTACT:
CAFR and Single Audlt Reports Ken Chavlous, ext 2453
(Under Separate Gover)
TELEPHONE NUMBERS:
Hillsborough ]321181
Chapel HIII 8881661
Durham 688d33T
PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR)and Single AUtlil
Report for the fiscal year entletl June 30, 2001.
BACKGROUND: Every threeto five yeare, County staff goes through the process of soliciting,
reviewing, antl evaluating proposals for flnanclal autlitservices. StafF most recently contluctetl
that process in Spring 2001, antl the Boats subsequently approvetl a cantrac[ with the film of
Cherry, Bekeart & Holland to perform the County's autlR services forthe fiscal year ending June
30,2001.
Cherry, Bekaert 8 Holland has recenty completetl the Counlys Comprehensive Annual
Financial Report (CAFR) antl Single Audi[ Report far FY 2000-01. The CAFR covers all financial
adlv6y of [he County far the 2ppp-2001 foal year antl the Single Autlit Repod focuses on
grenl compliance for the same fiscal year. Both reports result from en annual autlit of the
CounNafinantielrecoka, which occunetl tludng the pas[several months. Presentation of
these reports is necessary In omen [o fulfill the requirements set forth in Chapter 159-34 of the
North Carolina General Statutes.
In atltli8an, the firm hae performetl a preliminary assessment of steps the County will neetl to
take to Implement Govemmenial accounting BtantlaMS BoaN (GASB) Statemenl34. The
BoaN will recall fromtliscussions last spring that GASB 34 will oblige local governments
throughcut the Unitetl Staten b repod their financial actiNfies acwNing to a format that looks
more Ilke the way the accounbng far a private corporetbn wpultl be presanmtl_ County staff
antl certifietl public accountants from Cheny, Bakaed 8 Hollantl will attentl this meeting to
present the reportsantl respontl m questions that Commissioners may have regarding either
the autltl or GABB 34 implementation.
The results of the 2001 audit were very good. Undeaigneted fund balance in the general fund
remains strong at $13.5 million, which represents about 12.2%of General Funtl expenditures.
This level of funtl balance is well above the Local Government Commission's minimum
rewmmentlation of B%. In adddion, year-end fund. balance suryasses the levels established in
the County's butlget guitlelines. The COUnlys financial condhlon remains strong with this sound
fund balance posidon. The eutlRors found no Instances of materiel weakness in [he County's
internal control structure and have issued a positive opinion on the County's financial
statements. In fact, there were only minor recommendations relatetl to the audit of the CAFR
and no fintlings or questioned costs related la the Single Autlit Report. The County Finance
Director will cover in more detail same of the highlights oFthe report antl will be available to
answer any questions.
FINANCIAL IMPACT:.AS mentioned above, the County's overall fnencisl mnditlon remains
solid. This strong financial contlition serve~bmalnrsln the County's crediMrotlhiness antl to
enhance the County's ability to manage unforeseen events and to take advantage of
unforeseen oppodunities. The annual audit waa covered by footle approprlatetl In [he 2001-02
butlget. Likewise, the approvetl budget lnclutletl funding in the amount of $25,000 to cover [he
GASB 34 neetls esaeasmen[. Staff estimates that the actual cost of that walk will be
approximately $15,000. The remaining $10,000 can be used to help offset [he additional cost
of actual GAGB 34 implementation during the remaintler of FY 2000102. Cheny Bekaert is
tleveloping a cost estimate and proposetl engagement letter for full implementation of the
GASB 34 requirements. Accomplishing thetgroundwork during the ceming months vdll position
the County to make a smooth transition to the GASB 34 requirements for the autlit that will
begin next summer. Staff expects to rams back to the BoaN at a future meeting to request
appropriation at any atltlitional funds [hat may be needed to fully Implement GASB 34.
RECOMMENDATION(S): The Manager recommends that [he BOaN receive the reportfor
infoimaticn only.