Agenda 03-19-24; 8-a - Minutes - Laserfiche WebLink

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10 1 Slide #13 40* Orange County North Caraififra Audit Finding 3033-001 Reporting of Employee Costs to NCDHHS In our testing of employee casts charged to the Medicaid and SNAP programs,we noted four 141 total instances (three l31 out of forty l40)for Medicaid and one�1]out of forty X44]for SNAPI where the employee's day sheet (where time is tracked by service code in 6-minute increments)included more time than the employee's approved timesheet for the week.. No questioned casts noted. Management Points(Recommendations) Capitalization Thresholds for Right-to-Use Assets Over the last two[21 fiscal periods,the County was required to Implerneni the provisions of two ill new acCounting Standards(GASB Statement No.87,teoseS and GASB`tate Ment Na,96, Inform otiorl Techrricxrggy A,rorlgemenrsp that have significantly changed the way local governments ac€aunt for leasing aalvltles and Information technology(IT)contracts. These new standards have created a new class of asset that is recorded In the counrys statement of net posidon known as a rlghrto-use asset. Similar to capital assets,these right-to-use assets are capitalized and amorilaed over the life of the underlying agreelnentts]or and ilying assets useful life fwhlchever Is slrrsrtel. We recommend the County adopt a capitalization threshold for recording right-to--use assets In the same way that the County has a capltallzatlon threshold for recording tangible capital assets, Establishing a threshold will make It easler for the county to more efficlentiy evaluate agreements that could give rise to the recording of right-to-use assets and eliminate what could be time spent on items that are Immaterial to the Cr u nvys flrianclal statements. AurfiWs Nsaussk o it Artai`psls(A0,14) 2 done X.2023 3 Slide #14 >rr Orange County, North Caroitina Management Points(Recommendations) • Counter Reimbursement far Sales Taxes Paid During our testing of the amounts recelved by the County from the North Carollr►a Department of Revenue (NCDOM during the fiscal year ended lune 30,2923,we noted the County did not receive a relmbufsemern of sales taxes prevlously pall, Based on our dlscusslon with mariagement of the County,the NCDOR submittal Is noirnally a part of year-end processing that has been delayed such that the county has not recelved these funds ffom NCD-DR yet, Management Is In the process of preparing the application for relmbursement that Is required to be sent to NCD4R before the funds are released. Additionally,we have noted that managernent has Implemertetl adrl clonal Internal controls to ensure this Isnot overlooked during the annual closeout process In futwe fiscal Fears. • Accounting for Special Revenue Funds During our review of the CountVs firvancial statements,we noted the DSS Payee Fund did rot have any revenue or expenditure activityfor the Fiscal year under audit. Based onour review of the general ledger activity,it appears the County is still accounting for this fund as if it was still a custodial fund of the County where all amounts are received as cash and offsetwith a corresponding liability. With the change in accounting standard that was brought about by GASB Statement No.84,RdudoryAcrivives,this fund was reclassified to a special revenue fund in previous years and should be reflecting the inflows it receives during the fiscal year as revenues and conversely,the outflows as expenditures. Due to the fact that the activity for the fiscal year ended June 30,2023 was not material,an audit adjustment to reclassify the activity was not required. However,we recommend County staff implement additional internal controls or additional annual closeout procedures to the ensure the amounts are properly recorded in accordance with generally accepted accounting principlestGMPk AA'dar''s UlW=Ss m&Anafysfs(AD&A) 4 done 3t1,2023 5 6