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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 18, 2007 <br />Action Agenda <br />Item No. ~_ <br />SUBJECT: Potential Impact of Statement of Auditing Standards (SAS) 112 <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Letter from Sharon Edmundson, Director <br />of Fiscal Management Local <br />Government Commission <br />INFORMATION CONTACT: <br />Ken Chavious, 245-2450 <br />PURPOSE: To receive a presentation from McGladrey and Pullen, the County's current audit <br />firm, on the potential impacts of the implementation of SAS 112. <br />BACKGROUND: During the presentation of the 2006 Comprehensive Annual Financial Report <br />last December, the auditors briefly mentioned some upcoming changes to the auditing <br />standards. The Local Government Commission (LGC) has since addressed some of the major <br />audit changes in a recent memorandum. The changes with most impact on the annual audit <br />process are related to SAS 112. The attached memorandum from Sharon Edmundson, <br />Director of Fiscal Management for the LGC, addresses in detail some of the issues surrounding <br />the implementation of SAS 112. <br />Representatives from the County's current audit firm, McGladrey and Pullen, will provide a brief <br />presentation of the new auditing standards that will include the major changes to the audit <br />process. Since the County's audit for the 2007 fiscal year is currently underway and not yet <br />complete, the auditor's presentation will focus only on the guidelines of the new auditing <br />standards. The County's Comprehensive Annual Financial Report will be presented at a later <br />date, and the SAS 112 impacts therein will be discussed at that time. <br />FINANCIAL IMPACT: None at this time. <br />RECOMMENDATION(S): The Manager recommends that the Board receive the presentation <br />as information. <br />