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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 1, 1998 <br />Action Agenda <br />Item No. gip„ C, <br />SUBJECT: 1997-98 Comprehensive Annual Financial Report <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />BUDGET AMENDMENT: (Y/N) No <br />ATTACHMENT(S): <br />CAFR and Single Audit Reports <br />(Separate Cover) <br />INFORMATION CONTACT: <br />Ken Chavious Ext. 2453 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 227-2031 <br />PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) and Single Audit <br />Report for the fiscal year ended June 30, 1998. <br />BACKGROUND: The CAFR covers all financial activity of the County for the 97-98 fiscal year <br />and the Single Audit Report focuses on grant compliance for the same fiscal year. Both reports <br />result from and annual audit of the County's financial records which occurred during the past <br />several months. Presentation of these reports is necessary in order to fulfill the requirements set <br />forth in Chapter 159-34 of the North Carolina General Statutes. <br />The results of the 1998 audit were very good. Undesignated fund balance in the general fund <br />reflects an increase over the prior year. This increase places the County well above the Local <br />Government Commission's minimum recommendation of 8%. In addition, year-end fund balance <br />surpasses the levels established in our budget guidelines. The County's financial condition <br />continues to strengthen with this sound fund balance position. The auditors found no instances of <br />material weakness in the County's internal control structure and have issued a positive opinion on <br />our financial statements. The auditors issued a letter of recommendation citing two issues related to <br />staff procedures. These are isolated instances for which procedures are in place to prevent <br />reoccurrence. There were no findings or questioned costs related to the Single Audit. <br />The County Finance Director will cover in more detail some of the highlights of the report and will <br />be available to answer any questions along with representatives of the County's certified public <br />accounts, Deloitte & Touche. <br />RECOMMENDATION(S): The Manager recommends that the Board receive the report for <br />information only. <br />