Agenda 12-06-21; 6-b - Approval of an Allocation Framework for the FY2020-21 Financial Results

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 6, 2021 Action Agenda Item No. 6-b SUBJECT: Approval of an Allocation Framework for the FY2020-21 Financial Results DEPARTMENT: County Manager ATTACHMENT(S): INFORMATION CONTACT: Update on FY2020-21 Year End Financial Results Travis Myren, 919-245-2308 Gary Donaldson, 919-245-2453 Rebecca Crawford, 919-245-2152 PURPOSE: To approve an allocation framework for the FY2020-21 financial results which resulted in a total net positive financial positon of approximately $12 million, with the approved framework to be codified in a budget amendment for consideration at a future meeting. BACKGROUND: This abstract provides a high level summary of the attached Update on FY2020-21 Year End Financial Results report which provides a more detailed discussion of the sources and proposed uses of the County's positive net financial positon ending on June 30, 2021. The results of the FY2020-21 financial audit will show positive results in two areas. On an operating basis, the audit will show a surplus of approximately $8.9 million before transfers. Of that amount, approximately $8 million is available for a mid-year budget adjustment. In addition, the fund balance reconciliation contained in the audit will show $4 million in available one time resources resulting from a decrease in the fund balance appropriation used to balance the FY2020-21 Budget compared to the smaller amount appropriated to balance the FY2021-22 Budget. The positive operating results relied on revenue collections that exceeded budgeted expectations and intentional expenditure restrictions that limited expenditures to below budgeted amounts. Some of these variances are expected to be recurring or ongoing while others are non-recurring or one time occurrences.