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<br />FUTURE FINANCIAL CONSIDERATIONS <br />• Further Solidify Debt Issuance Plans <br />• Review Of Financial Impacts of "Best Practices" <br />• GASB 451mplementation (OPEB) <br />• Carrboro High School Start up <br />• Continue to Improve Fund Balance Position <br />Finance Director, Post Audit <br />Colin Hill, Audit Manager with Cherry, Beckart and Holland, said that they gave a clean <br />opinion and the audit went smoothly. He thanked the Finance and Budget Departments. He <br />said that they have also issued a management letter and a SAS 61 letter. The management <br />letter contains recommendations concerning the internal control structure and policies in place <br />at the County. The SAS 61 letter is required by professional standards and details the duties as <br />the auditors. He described some of the changes of statistics and GASB statements. <br />Commissioner Nelson asked if the internal audit could be done in-house and Ken <br />Chavious said that at this time there is no internal audit function. The Revenue Department <br />does "internal audits" of those departments that collect money. He said that internal audit goes <br />way beyond that. He said that his recommendation is to start an internal audit function by <br />bringing in additional resources. <br />Commissioner Nelson asked about the undesignated fund balance and if there is a goal <br />for this. He also asked about the average of undesignated fund balances for North Carolina. <br />Ken Chavious said that the average far counties the size of Orange County is 17°~ of <br />expenditures. His experience has been that there has been flexibility in the 12-15% range. <br />Commissioner Foushee asked about the internal audit function and if this type of <br />department were established, how many people would comprise this department. Ken <br />Chavious said that it should be housed under the Manager's Office. It could start out very <br />slowly. <br />Commissioner Gordan said that she supports the internal audit function. <br />Commissioner Gordon said that the computer controls sound like a good idea. She <br />was also pleased to see that the Sportsplex had a favorable audit. <br />Chair Jacobs said that the Board would be discussing best practices for financials later <br />in the year. He wants everyone to know that Orange County pays strict attention to its financial <br />position and how it affects the ability and capacity in the future. <br />Commissioner Jacobs made reference to page 4 and the listing of debt issued in 2005- <br />2006. He said that on his calculation, the County spent 67% of its debt towards schools, which <br />is almost exactly the same as the policy of 68.32%. <br />8. Public Hearings <br />a. Piedmont Electric Membership Corporation [PEMC) Planned Development <br />iPD-OI) and Special Use Permit, Class A <br />The Board considered the Planning Board recommendations regarding the PEMC <br />request to amend its Planned Development -Office/Institution (PD-OI) zoning district and its <br />Class A Special Use Permit to permit the principal use of a 350-foot replacement tower at its <br />administrative and operations center located at 2500 NC Highway 86 South, Hillsborough. <br />