HomeMy WebLinkAboutAgenda - 11-18-2003-6aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTI~~N AGENDA ITEM ABSTRACT
Mei~ting Date: November 18, 2003
Action Agenda
Item No. -Gt
SUBJECT: 2002-2003 Comprehensive Annual Financial Report (CAFR)
DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
CAFR and Single Audit Report:>
(Under Separate Cover)
INFORMATION CONTACT:
Ken Chavious, ext 2453
TELEPHONE NUMBERS:
Hillsborough
Chapel Hill
Durham
Mebane
732-8181
968-4501
688-7331
336-227-2031
PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) and Single Audit
Report for the fiscal year ended Jurie 30, 2003.
BACKGROUND: The CAFR covers all financial activity of the County for the 2002-2003 fiscal
year and the Single Audit Report focuses on grant compliance for the same fiscal year. Both
reports result from an annual audit ~f the County's financial records, which occurred during the
past several months. The audit wa s performed by Cherry Bekaert & Holland, the firm of
independent Certified Public Accouintants. Presentation of these reports is necessary in order
to fulfill the requirements set forth iri Chapter 159-34 of the North Carolina General Statutes.
The results of the 2003 audit were ~rery good. 2003 marked the second year implementation of
Governmental Accounting Standards Board (GASB) statement 34. Undesignated fund balance
in the general fund at year-end was 10.4% of general fund expenditures. This amount exceeds
the Local Government Commission's recommended minimum of 8%. This percentage
represents a slight increase over 2001-2002 levels and reflects the commitment on the part of
management and the Board to insure that fund balance is sufficient to address cash flow issues
and unforeseen circumstances.
The auditors found no instances of material weakness in the County's internal control structure
and have issued an "unqualified" (good) opinion on our financial statements. In fact, there were
no material audit findings related to the audit of the CAFR or the single audit. The auditors did
however, make some minor recomrendations related to capital and information technology.
These recommendations along witl'~ responses are included in your reports. The County
Finance Director will cover in more letail some of the highlights of the report and will be
available to answer any questions ~~long with representatives of the County's certified public
accounts, Cherry, Bekaret & Holland.
FINANCIAL IMPACT: The County maintained sound financial condition at year-end.
RECOMMENDATION(S): The Mainager recommends that the Board receive the report for
information only.