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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. 5—k <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 2, 1996 <br /> SUBJECT: 1995-96 Comprehensive Annual Financial Report <br /> DEPARTMENT: Finance PUBLIC HEARING: YES: NO: X <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> CAFR and Single Audit Reports Ken Chavious, ext 2450 <br /> (under separate cover) TELEPHONE NUMBER: <br /> Hillsborough- 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To receive the Comprehensive Annual Financial Report(CAFR) and Single Audit Report <br /> for the fiscal year ended June 30, 1996. <br /> BACKGROUND: The CAFR covers all financial activity of the County for the 1995-96 fiscal year, <br /> and the Single Audit Report focuses on grant compliance for the same fiscal year. Both reports result <br /> from the annual audit of the County's financial records which occurred during the past several months. <br /> Presentation of these reports is necessary in order to fulfill the requirements set forth in Chapter 159- <br /> 34 of the North Carolina General Statutes. <br /> The results of the 1995-96 audit are very good. Undesignated fund balance in the General Fund as of <br /> June 30, 1996 has improved to 10.4% of 1995-96 expenditures, and 9.7% of 1996-97 original budget <br /> expenditures. Both these figures allow the County to surpass the 8% level established in our budget <br /> guidelines, as well as under North Carolina Local Government Commission recommendations. This <br /> increase also serves to strengthen the County's already solid financial condition. The auditors found <br /> no instances of material weakness in the County's internal controls, and therefore chose not to issue a <br /> Letter of Recommendation, which usually outlines processes or procedures requiring the County's <br /> attention or corrective action. <br /> Although there were several minor findings related to the Single Audit on grant compliance, staff is <br /> pleased with the overall results. Of the $9.9 million in grant funds received by the County, there was <br /> only $3,267 recognized as compliance issues -at this time, we do not expect there to be any repayment <br /> required.. These issues will not impact the continued receipt of grant funds in the areas identified. <br /> The County Finance Director will cover in more detail some of the highlights of the report and will be <br /> available to answer any questions along with representatives of the County's certified public <br /> accountants, Deloitte and Touche. <br /> RECOMMENDATION(S): The Manager recommends that the Board receive the report for <br /> information only. <br />