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1 <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br /> FINANCE and ADMINISTRATIVE SERVICES <br /> Gary Donaldson,CTP,Chief Financial Officer I gdonaldson@orangecountync.gov I PO Box 8181,Hillsborough,NC 27278 1 919.245.2453 <br /> MEMORANDUM <br /> To: Board of County Commissioners <br /> From: Gary Donaldson, Chief Financial Officer <br /> Date: May 20, 2025 <br /> Re: Financial Report-Third Quarter FY2024-25 <br /> This Third Quarter Financial Report focuses on County Intergovernmental revenues in view of the Federal <br /> Administration position regarding grant funding to US State and Local governments. Staff has held ongoing <br /> meetings with all departments that receive Federal and State funding throughout the third quarter. As of March <br /> 31, 2025, none of the County's budgeted grants have been identified for Federal cancellation (As of the <br /> publication date of May 20, 2025, additional developments have emerged, including discussions regarding <br /> potential adjustments to programs including Medicaid and Food and Nutrition Services (FNS). These discussions <br /> are being closely monitored and will be reported as formal guidance is issued.) Through the end of the third <br /> quarter General Fund revenues are 84% of the budget. This revenue metric is consistent with historical budget <br /> versus actual percentages. Furthermore, spending is in line with 66% of budget with historical trends, with a <br /> projection of breakeven General Fund financial results. <br /> Staff began a more rigorous review of intergovernmental revenues at the start of the new Federal <br /> administration to ascertain risk. The table on page 3 summarizes County programs that may be at risk. It is <br /> important to note that there have been no formal Federal cancellation notifications. The North Carolina <br /> Department of Health and Human Services (NCDHHS) did alert all NC counties of a delay in Federal fund draws. <br /> Note: Previous delays have occurred but then funds were subsequently remitted several business days later. <br /> This type of delay is likely attributed to Federal staffing levels. <br /> The County's Community Development Fund is being monitored closely. All the affected County grant <br /> departments and staff are alerting the Manager's Office and Finance. The other consideration pertains to <br /> current and forecasted economic conditions based on recent U.S. tariff policy. The following economic data and <br /> links provides insight from two leading North Carolina economists. <br /> 1 <br />