Agenda - 12-03-2001-8f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 3, 2001 Action Agenda Item No. $-f SUBJECT: Govemmental Accounting Standaks Boats (GASB)Btatement 34 mpementatlOn DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Ken Chavious, 245-2453 Engagement Lefler TELEPHONE NUMBERS: Hillsborough ]32$181 Chapel Hill 908.4501 Durham 688-]331 Mebane 338-22]-2031 PURPOSE: To wnslder hiring the Countys autlttors, Cherry, eekaert 8 Hollantl, tp assist County staff with the accounting work required kr the implementation of GA58 aatement 34 BACKGROUND: Last June, Me Board approvetl a contract with Cherry, Bekaert 8 Hollantl to pertomi both the annual audit and a neetls assessment to determine procotlures requietl in oNer for the County to implement GASB Statement 34 accounting antl Onancisl reporting requirements. During the presentation of the Annual Financial Report at the November 19, 2001 BoeM meetlng, the County Finance Director informetl the Boats the[ the eudltprs hetl completed [he GA$B 34 neetls assessment in conlunction with the Countys autla. The Finance Direcbr also mentioned 5hal County ateff hetl met with tM1e autlitors to tliswss the procetlures associated with the implementation of this new accounting inhiative antl that a report on the eeeociatetl vests woultl be provided at a future Boats meeting. As the BoeM Is now aware, GASB 39 is an accounting requirement that will oblige local governments throughout the United Stetea b report their fnandal activttles accouning to a format that looks more like the way the aaounting for a private corporation woultl be presented. I[ was tlirt:ctetl by the Govemmental Accounting StandaMs BoeM, but rip footling was provltled to affected entltles to meet its expanded repcdin9 requirements. The Finance Director has received the attached engagement letter from Cherry, Bekaert 8 Hollantl that outlines the assistance to be provitletl b Ne County in this major a~nunting undetlaking. Sfaff has reviawetl the engagement letter antl is in agreemerH the[the procetlures ou[linetl ere ell necessary for the full and complete implementation of GASB 34. It is important to note that these proc~uree are not all that is required and that staff will perform a number of acwunting pmcadurea assocated with the implementation.