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AAT <br /> 19 <br /> Orange County, North Carolina <br /> Management Points (Recommendations) <br /> • County Reimbursement for Sales Taxes Paid <br /> During our testing of the amounts received by the County from the North Carolina Department of Revenue <br /> (NCDOR) during the fiscal year ended June 30, 2023, we noted the County did not receive a reimbursement of sales <br /> taxes previously paid. Based on our discussion with management of the County, the NCDOR submittal is normally a <br /> part of year-end processing that has been delayed such that the County has not received these funds from NCDOR <br /> yet. Management is in the process of preparing the application for reimbursement that is required to be sent to <br /> NCDOR before the funds are released. Additionally, we have noted that management has implemented additional <br /> internal controls to ensure this is not overlooked during the annual closeout process in future fiscal years. <br /> • Accounting for Special Revenue Funds <br /> During our review of the County's financial statements, we noted the DSS Payee Fund did not have any revenue or <br /> expenditure activity for the fiscal year under audit. Based on our review of the general ledger activity, it appears the <br /> County is still accounting for this fund as if it was still a custodial fund of the County where all amounts are received <br /> as cash and offset with a corresponding liability. With the change in accounting standard that was brought about by <br /> GASB Statement No. 84, Fiduciary Activities, this fund was reclassified to a special revenue fund in previous years and <br /> should be reflecting the inflows it receives during the fiscal year as revenues and conversely, the outflows as <br /> expenditures. Due to the fact that the activity for the fiscal year ended June 30, 2023, was not material, an audit <br /> adjustment to reclassify the activity was not required. However, we recommend County staff implement additional <br /> internal controls or additional annual closeout procedures to the ensure the amounts are properly recorded in <br /> accordance with generally accepted accounting principles (GAAP). <br /> Auditor's Discussion &Analysis (AD&A) Going Further. <br /> June 30, 2023 <br />