Agenda - 11-18-2003-6a - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTI~~N AGENDA ITEM ABSTRACT Mei~ting Date: November 18, 2003 Action Agenda Item No. -Gt SUBJECT: 2002-2003 Comprehensive Annual Financial Report (CAFR) DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): CAFR and Single Audit Report:> (Under Separate Cover) INFORMATION CONTACT: Ken Chavious, ext 2453 TELEPHONE NUMBERS: Hillsborough Chapel Hill Durham Mebane 732-8181 968-4501 688-7331 336-227-2031 PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) and Single Audit Report for the fiscal year ended Jurie 30, 2003. BACKGROUND: The CAFR covers all financial activity of the County for the 2002-2003 fiscal year and the Single Audit Report focuses on grant compliance for the same fiscal year. Both reports result from an annual audit ~f the County's financial records, which occurred during the past several months. The audit wa s performed by Cherry Bekaert & Holland, the firm of independent Certified Public Accouintants. Presentation of these reports is necessary in order to fulfill the requirements set forth iri Chapter 159-34 of the North Carolina General Statutes. The results of the 2003 audit were ~rery good. 2003 marked the second year implementation of Governmental Accounting Standards Board (GASB) statement 34. Undesignated fund balance in the general fund at year-end was 10.4% of general fund expenditures. This amount exceeds the Local Government Commission's recommended minimum of 8%. This percentage represents a slight increase over 2001-2002 levels and reflects the commitment on the part of management and the Board to insure that fund balance is sufficient to address cash flow issues and unforeseen circumstances. The auditors found no instances of material weakness in the County's internal control structure and have issued an "unqualified" (good) opinion on our financial statements. In fact, there were no material audit findings related to the audit of the CAFR or the single audit. The auditors did however, make some minor recomrendations related to capital and information technology. These recommendations along witl'~ responses are included in your reports. The County Finance Director will cover in more letail some of the highlights of the report and will be available to answer any questions ~~long with representatives of the County's certified public accounts, Cherry, Bekaret & Holland.