Agenda - 08-16-2005-5r - Laserfiche WebLink

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• Over the last three year period reviewed JOCCA has received an 4 "unqualified" (GOOD) opinion of their financial statements. This means that the auditors detected no sign of material weakness in their financial operations. • The major source of funding for JOCCA is provided by government grants of approximately $1.5 million, Local funding, including the Chatham County contribution, for 2004-2005 was approximately $149,000, • Government grants of the magnitude received by JOCCA are subject to the "single audit" provisions, identical to the requirements of the County's grant funds, The audit requirements are detailed and relate to bath financial and grant compliance issues. • Far the three years reviewed there were no audit findings or exceptions, questioned costs or reportable conditions related to ,l000A's audit or single audit, Aside from the deficit, JOCCA's financial operations appear to be sound, After reviewing the previous audits, it is difficult to determine the reasoning behind the decision made by Chatham County to suspend funding, County staff has also confirmed that the towns of Chapel Hill, Hillsborough, and Carrbaro have each approved continued funding for JOCCA in their new budgets. Ms. Sanchez feels that Chatham County staff made the decision based on interim financial statements that fail to include all federal grant funding to be received by JOCCA. According to Ms, Sanchez, .IOCGA has plans to eliminate the deficit totally in 2005-2006 by making internal administrative adjustments. Elimination of the deficit will be mare challenging without funding from Chatham County, As mentioned above the JOCCA board will be scheduling an audience with the Chatham Commissioners to discuss the funding issues, As pertains to the County appropriation of $100,000 -currently in reserve pending acceptance of this report -County staff finds no financial cause to withhold funding to JOCCA , We recommend that their Fiscal Year 05-06 performance agreement with normal monitoring provisions be executed, and that quarterly payments be allowed to begin, County staff will remain attentive to JOCCA's financial situation and anticipate receipt of their Fiscal Year 05 audit due by the end of the calendar year, Please let us know if you have questions.