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HomeMy WebLinkAboutAgenda - 11-16-1999 - 10aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting-Date: November 16, 1999 Action Agenda Item No. ~ p _ Q SUBJECT: 1998-99 Comprehensive Annual Financial Report DEPARTMENT: Finance ATTACHMENT(S): CAFR Single Audit Report (to be distributed prior to meeting) PUBLIC HEARING: (Y/l~ No INFORMATION CONTACT: Ken Chavious, ext 2453 TELEPHONE NUMBERS: Hillsborough .732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) and Single Audit Report for the fiscal year ended June 30, 1999. BACKGROUND: The CAFR covers all financial activity of the County for the 98-99 fiscal year and the Single Audit Report focuses on grant compliance for the same fiscal year. Both reports result from and annual audit of the County's financial records which occurred during the past several months. 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 1999 audit were very good. Undesignated fund balance in the general fund reflects an increase over the prior year. This increase places the County well above the Local Government Commission's minimum recommendation of 8%. In addition, year-end fund balance surpasses the levels established in our budget. guidelines. The County's fmancial condition continues to strengthen with this sound fund balance position. The auditors found no instances of material weakness in the County's internal control structure and have issued a positive opinion on our financial statements. In fact, there were no audit findings or exceptions for this. year's audit. In addition there were no findings or questioned costs in the single audit. The County Finance Director will cover in more detail some of the highlights of the report and will be available to answer any questions along with representatives of the County's certified public accounts, Deloitte & Touche. FINANCIAL IMPACT: As mentioned above, the County's overall financial condition remains solid and reflects improvement over the previous year. This improvement enhances the County's creditworthiness which means lower interest rates on bonds and other fmancing mechanisms. RECOMMENDATION(S): The Manager recommends that the Board receive the report for information only. I• I~ !• I• I• I• Deloitte & Touche ~~ Orange County, North Carolina Schedule of Expenditures of Federal and State Awards for the Year Ended June 30, 1999 and Independent Auditors' Reports on Compliance and on Internal Control DeloitteTouche ~ Tohmatsu n u ~. I• I• I• I• G I• [7 Orange County, Noah Carolina Schedule of Expenditures of Federal and State Awards for the Year Ended June 30, 1999 and Independent Auditors' Reports on Compliance and on Internal Control I• It ORANGE COUNTY, NORTH CAROLINA TABLE OF CONTENTS PAGE I• ~~ ~• C7 I• I• I• I• Independent Auditors' Report on Compliance and on Internal Control over Financial Reporting Based Upon the Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1-2 Independent Auditors' Report on Compliance and Internal Control Over Compliance Applicable to Each Major Federal Award Program and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 and the State Single Audit Implementation Act 3-4 Independent Auditors' Report on Compliance and Internal Control Over Compliance Applicable to Each Major State Award Program in Accordance with OMB Circular A-133 and the State Single Audit Implementation Act 5-6 Schedule of Findings and Questioned Costs 7-8 Summary Schedule of Prior Year Audit Findings 9 Schedule of Expenditures of Federal and State Awards 10-16 Notes to Schedule of Expenditures of Federal and State Awards 17 I• n u I• ~• I~ ~• 1• 1• 1• 1• Deloitte & Touche ~\ Deloitte &Touche LLP Suite 1800 First Union Capitol Center 150 Fayetteville Street Mall P.O. Box 2778 Raleigh, North Carolina 27602-2778 Telephone: (919) 546-8000 Telex: 4995716 Facsimile: (919) 833-3276 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED UPON THE AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of County Commissioners Orange County, North Carolina We have audited the general purpose financial statements of Orange County, North Carolina, (the "County") as of and for the year ended June 30, 1999, and have issued our report thereon dated October 6, 1999. We did not audit the financial statements of the Orange County ABC Board. Those financial statements were audited by other auditors whose report thereon has been provided to us, and our opinion, insofar as it relates to the amounts included for the Orange County ABC Board is based solely on the report of the other auditors. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily DeloitteTouche Tohmatsu disclose all matters in the internal control over financial reporting that might be material weaknesses. We noted no matters involving the internal control over financial reporting and its operation that we ~ consider to be material weaknesses. This report is intended solely for the information and use of the Board of County Commissioners, management, federal awarding agencies, state funding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~~ ~~~ -~.~ w, T October 6, 1999 I• I• I• I• I• I• • -2- i• ~• ~• I• I• 1• 1• 1• 1• 1• Deloitte & Touche /\ Deloitte &Touche LLP Suite 1800 First Union Capitol Center 150 Fayetteville Street Mall P.O. Box 2778 Raleigh, North Carolina 27602-2778 Telephone: (919) 546-8000 Telex: 4995716 Facsimile: (919) 833-3276 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER COMPLIANCE APPLICABLE TO EACH MAJOR FEDERAL AWARD PROGRAM AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A-133 AND THE STATE SINGLE AUDIT IMPLEMENTATION ACT To the Board of County Commissioners Orange County, North Carolina Compliance We have audited the compliance of Orange County, North Carolina, (the "County") with the types of compliance requirements described in the U. S. Office of Management and Budget ("OMB") Circular A-133 Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that are applicable to each of its major federal programs for the year ended June 30, 1999. The County's major federal programs are identified in the Summary of Auditors' Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the County's management. Our responsibility is to express an opinion on the County's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and the State Single Audit Implementation Act. Those standards, OMB Circular A-133, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the County's compliance with those requirements. In our opinion, the County complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 1999. DeloitteTouche _ 3 _ • Tohmatsu Internal Control Over Compliance • The management of the County is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the County's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on ~ compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and the State Single Audit Implementation Act. • I• I• I• C7 I• I• Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal and State Awards We have audited the general purpose financial statements of Orange County, North Carolina as of and for the year ended June 30, 1999, and have issued our report thereon dated October 6, 1999. We did not audit the financial statements of the Orange County ABC Board. Those financial statements were audited by other auditors whose report thereon has been provided to us, and our opinion, insofar as it relates to the amounts included for the Orange County ABC Board is based solely on the report of the other auditors. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Expenditures of Federal and State Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and the State Single Audit Implementation Act and is not a required part of the general purpose financial statements. This schedule is the responsibility of the Management of the County. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects, in relation to the general purpose financial statements taken as a whole. This report is intended solely for the information and use of the Board of County Commissioners, management, federal awarding agencies, state funding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. October 6, 1999 • -4- i• ~• ~• I• I• 1• ~• ~• ~• ~• Deloitte & Touche /\ Deloitte &Touche LLP Suite 1800 First Union Capitol Center 150 Fayetteville Street Mall P.O. Box 2778 Raleigh, North Carolina 27602-2778 Telephone: (919) 546-8000 Telex: 4995716 Facsimile: (919) 833-3276 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER COMPLIANCE APPLICABLE TO EACH MAJOR STATE AWARD PROGRAM IN ACCORDANCE WITH OMB CIRCULAR A-133 AND THE STATE SINGLE AUDIT IMPLEMENTATION ACT To the Board of County Commissioners Orange County, North Carolina Compliance We have audited the compliance of Orange County, North Carolina (the "County") with the types of compliance requirements described in the U. S. Office of Management and Budget ("OMB") Circular A-133 Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that are applicable to each of its major State programs for the year ended June 30, 1999. The County's major State programs are identified in the Summary of Auditors' Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major State programs is the responsibility of the County's management. Our responsibility is to express an opinion on the County's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and the State Single Audit Implementation Act. Those standards, OMB Circular A-133 and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major State program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the County's compliance with those requirements. In our opinion, the County complied, in all material respects, with the requirements referred to above that are applicable to each of its major State programs for the year ended June 30, 1999. DeloitteTouche _ 5 _ • Tohmatsu Internal Control Over Compliance ~ The management of the County is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to State programs. In planning and performing our audit, we considered the County's internal control over compliance with requirements that could have a direct and material effect on a major State program in order to determine our auditing procedures for the purpose of expressing our opinion on i compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and the State Single Audit Implementation Act. • I~ I• I• I• I• I• Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major State program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Board of County Commissioners, management, federal awarding agencies, state funding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. October 6, 1999 • -6- • r~ I• I• ~• I! I~ I• I• ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 1999 (CONTINUED) I. Summary of Auditors' Results A. The independent auditors' report on the financial statements expressed an unqualified opinion. B. Not applicable C. No instance of noncompliance considered material to the financial statements was disclosed by the audit. D. Not applicable E. The independent auditors' report on compliance with requirements applicable to major federal award programs expressed an unqualified opinion. F. The audit disclosed no findings required to be reported by OMB Circular A-133. G. The County's major federal programs were: Program Name CFDA# Food Stamps 10.561 Child Support Enforcement 93.563 Medicaid Title XIX 93.778 Medical Assistance Administration Adult Care Home Case Management Medical Transportation Carolina Access Long-Term Care Medicaid Reimbursement The County's major State programs were: Program Name CFDA# Temporary Assistance for Needy Families (TANF) 93.558 Medicaid Title XIX 93.778 Daycare CCDF 93.596 • -7- ORANGE COUNTY, NORTH CAROLINA • SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 1999 (CONCLUDED) H. A threshold of $1,134,445 was used to distinguish between Type A and Type B programs as • those terms are defined in OMB Circular A-133. I. The County did qualify as a low-risk auditee as that term is defined in OMB Circular A-133. ~• II. Findings Related to the Audit of the General Purpose Financial Statements of Orange County, North Carolina No matters are reportable. ~• I• I• I• I• I• III. Findings and Questioned Costs Related to the Audit of Federal and State Awards No matters are reportable. • -s- CJ I! 11 If It I• I, I• I• ORANGE COUNTY, NORTH CAROLINA SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 1999 There were no findings for the year ended June 30, 1998. I'! -9- s v n • i • • • ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONTINUED) Federal Grantor/Program Title U.S. Department of Treasury Direct Programs: Aging Action Retired Senior Volunteer Program Soil and Water Conservation Total U.S. Department of Treasury U.S. Department of Housing and Urban Development Direct Programs: Lower Income Housing Assistance: Section 8 Existing Section 8 Vouchers HOME Investment Partnerships Program Cooperative Fair Housing Assistance Program Passed-Through N.C. Department of Commerce - Small Cities Total U.S. Department of Housing and Urban Development U.S. Equal Employment Opportunity Commission Fixed Price Contract Supplies and Services Federal Expenditures CFDA Number a era a e oca 72.002 $ 38,635 $ $ 44,553 10.902 27,017 65,652 44,553 14.182 1,924,939 14.182 1,043,482 14.239 752,304 112,136 14.401 70,000 92,129 14.219 159,084 3,949,809 204,265 750100145 23,250 30,793 n - 10- • • • • • ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONTINUED) • ~ ~ ~ ~ Federal Grantor/Program Title U.S. Department of Justice -Office of Justice Programs Investigations Federal Emergency Management Agency Emergency Food and Shelter U.S. Department of Health and Human Services U.S. Department of Labor Passed-Through N.C. Department of Commerce - Work Force Development Grant U.S. Department of Health and Human Services Passed-Through N.C. Department of Health and Human Services or Triangle J. Council of Governments: Social Services Block Grant In-Home Services Family Planning Adult Daycare Program Integrity TANF/Work First Federal Expenditures CFDA Number a era a oca 16.571 $ 12,548 $ $ 83.523 1,804 93.561 48,369 126,637 93.667 88,436 68,068 93.667 251,825 401,337 93.667 527 406 93.667 9,275 3,975 20,761 93.667 43,910 33,797 93.558 1,567,933 137,983 357,259 • • • • • `, ~J ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONTINUED) Federal Grantor/Program Title '~. Department of Health and Human Services (Continue Passed-Through N.C. Department of Health and Human Services or Triangle J Council of Governments (Continued): Medical Assistance Administration Adult Care Home Case Management Medical Transportation Carolina Access Long-Term Care Medicaid Reimbursement IV-E Child Protective Services IV-E Optional Foster Care IV-B Psychological Services Adoptions Daycare CCDF Crisis Intervention Payments Adolescent Parenting Permanency Planning Health Choice Independent Living Federal Expenditures CFDA Number Federal State Local 93.778 $23,332,261 $11,071,499 $ 2,235,843 93.778 24,281 11,426 27,484 93.778 15,768 107,196 93.778 6,856 6,856 10,554 93.778 47,342 32,898 146,359 93.778 6,765 93.658 275,659 142,017 401,307 93.658 247,677 399,285 93.658 411,769 156,024 332,150 93.658 9,134 12,107 24,739 93.658 147,220 92,973 115,765 93.596 1,762,325 619,195 93.568 287,188 314,982 93.645 28,061 32,942 46,953 93.645 38,396 10,206 37,409 93.767 8,177 2,442 12,247 93.674 2,911 2,241 • - 12- • • • • r • • • ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONTINUED) Federal Grantor/Program Title U.S. Department of Health and Human Services (Continued) Passed-Through N.C. Department of Health and Human Services or Triangle J Council of Governments (Continued): Child Support Enforcement IV-D Maternal Health Child Health Child Service Coordinator Family Planning General Aid to Counties Health Promotion Breast and Cervical Cancer Immunization Action Aids Testing Aging IIIB Home and Community Care Total U.S. Department of Health and Human Services Federal Expenditures CFDA Number Federal State Local 93.563 $ 498,050 $ $ 59,838 93.994 59,028 261,593 93.994 54,396 26,792 359,799 93.994 49,300 11,564 269,729 93.217 98,234 24,558 544,174 93.991 9,618 46,957 320,011 93.991 13,785 12,725 117,484 93.919 21,606 93.283 16,856 93.132 31,000 137,382 93.044 233,317 419,262 29,698,886 12,455,139 7,585,414 -13- • • • ORANGE COUNTY, NORTH CAROLINA • • SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONTINUED) • • Federal Grantor/Program Title U.S. Department of Justice Passed-Through N.C. Department of Crime Control and Public Safety: COPS FAST Crisis Intervention Team Criminal Justice Partnership Program Underserved Victims of Sexual Violence Domestic Violence Total U.S. Department of Justice U.S. Department of Agriculture Passed-Through N.C. Department of Health and Human Services - Food Stamps U.S. Department of Transportation Passed-Through Triangle J Council of Governments - FederaUState General Transportation Passed-Through N.C. Department of Transportation: Section 18-G Rural Public Transportation Section 18Non-Urbanized Grant Total U.S. Department of Transportation Federal Expenditures CFDA Number a era a oca 16.574 $ 350,814 16.574 58,244 16.574 331,922 16.574 64,607 16.574 8,222 813,809 10.561 2,938,698 20.509 60,047 20.509 128,296 20.529 73,669 $ 161,037 24,000 14,463 199,500 279,444 90,779 193,958 11,436 296,173 -14- ~ ~ • • • • ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONTINUED) State Grantor/Program Title N.C. Department of Health and Human Services Division of Social Services - Smart Start Division of Youth Services - Community Based Alternatives Division of Health Services: Epidemiology Environmental Food and Lodging Home Visiting Grant Total N.C. Department of Health and Human Services N.C. Department of Transportation Elderly and Disabled Transportation Work First Total N.C. Department of Transportation • • ~ ~ State Expenditures Grant Number a era a oca $ $ 149,344 $ 563920 202,161 175,211 9945510068 26,160 115,933 9947510068 11,222 608,165 100,000 488,887 899,309 52,647 22,951 79,592 34,697 75,598 114,289 -15- ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 (CONCLUDED) State Grantor/Program Title N.C. Department of Cultural Resources State Arts Grant Division of State Library Passed-Through Hyconeechee Regional Library - State Aid to Public Libraries Total N.C. Department of Cultural Resources N.C. Department of Public Instruction State Public School Construction Bonds TOTAL EXPENDITURES OF FINANCIAL ASSISTANCE State Expenditures Grant Number Federal State Local 9910410 $ $ 27,258 $ 35,445 143,035 508,632 170,293 544,077 9,241,292 328,848 $37,814,837 $22,431,209 $10,653,302 -16- ~~ I• ORANGE COUNTY, NORTH CAROLINA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 1999 I A. Basis of Accounting s The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual basis of accounting. B. Revenues recognized under Child Support Enforcement, CFDA 93.563, include incentive payments ~ received from the federal grantor agency. ~• ~• n ~. ~ - 17-