Orange County NC Website
Browse       Search
May 16, 2017 <br /> Orange County has therefore adopted a policy that requires management to maintain an <br /> unassigned balance as follows: <br /> 1. The County will strive to maintain an unassigned fund balance in the General Fund of 16% <br /> percent of budgeted general fund operating expenditures each fiscal year. The amount of <br /> unassigned fund balance maintained during each fiscal year should not fall below 8% <br /> percent of budgeted general fund operating expenditures, as recommended by the North <br /> Carolina Local Government Commission. <br /> 2. To the extent that the General Fund unassigned fund balance exceeds 16% percent, the <br /> balances may be utilized to fund capital expenditures or pay down outstanding County <br /> debt. <br /> 3. The County's budget and revenue spending policy provides for programs with multiple <br /> revenue sources. The Financial Services Director will use resources in the following <br /> hierarchy: bond proceeds, Federal funds, State funds, local non-county funds, county <br /> funds. For purposes of fund balance classification, expenditures are to be spent from <br /> restricted fund balance first, followed in-order by committed fund balance, assigned fund <br /> balance, and lastly, unassigned fund balance. The Financial Services Director has the <br /> authority to deviate from this policy if it is in the best interest of the County with Board of <br /> County Commissioner's approval. <br /> 4. Management is expected to manage the budget so that revenue shortfalls and expenditure <br /> increases do not impact the County's total unassigned fund balance. If a catastrophic <br /> economic event occurs that requires a 10% or more deviation from total budgeted revenues <br /> or expenditures, then unassigned fund balance can be reduced by action from the Board of <br /> County Commissioners; the Board also will adopt a plan of action to return spendable fund <br /> balance to the required level. <br /> Enterprise Funds - (Solid Waste, Efland Sewer, and the Orange County Sportsplex) — The <br /> County will strive to maintain unrestricted net assets greater than 8% of total operating <br /> revenues at fiscal year-end, net of any donated assets recognized, to provide reserves for <br /> operations and future capital improvements. <br /> Restrictions, reservations, and designations of Net Assets for Enterprise Funds <br /> For external reporting purposes, net assets will be reported as restricted or unrestricted in <br /> accordance with GAAP. For internal purposes, net assets will be reserved or designated as <br /> follows: <br /> 1. Encumbered balances to continue existing projects are designated. <br /> 2. Designations for funding of planned projects in a future period to reduce the financial <br /> demands placed upon a subsequent budget. <br /> Internal Service Funds — Dental Insurance Fund - total net assets shall maintain a positive <br /> balance to illustrate the internal nature of recovery fees for services performed in self-insuring <br /> employees of the County. Additionally, the net assets of the fund will demonstrate adequate <br /> funding for incurred, but not reported claims. <br /> 213 <br />