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.
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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
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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
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ORANGE COUNTY, NORTH CAROLINA
TABLE OF CONTENTS
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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
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Deloitte &
Touche
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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.
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October 6, 1999
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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 _
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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.
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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
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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.
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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.
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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
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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
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ORANGE COUNTY, NORTH CAROLINA
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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.
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II. Findings Related to the Audit of the General Purpose Financial Statements of Orange
County, North Carolina
No matters are reportable.
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III. Findings and Questioned Costs Related to the Audit of Federal and State Awards
No matters are reportable.
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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.
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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
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ORANGE COUNTY, NORTH CAROLINA
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED JUNE 30, 1999 (CONTINUED)
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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
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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
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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
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ORANGE COUNTY, NORTH CAROLINA
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SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED JUNE 30, 1999 (CONTINUED)
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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
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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
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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
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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
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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.
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