Orange County NC Website
ORANGE COUNTY ABC BOARD —AGENDA FORM <br /> Meeting Date: October 17, 2023 Agenda Item # 4 <br /> Regular Session X <br /> Closed Session_ <br /> Presenter/Information Contact: Ron McCoy <br /> Subject: Audited Financial Statements for Fiscal Year 2023 <br /> Attachment(s): <br /> 1. Attachment: Audit for Fiscal Year Ending 2023 (sent separately) <br /> 2. Attachment: Auditor's Letter, dated September 28, 2023 <br /> 3. Attachment: Statement of Revenues, Expenses and Changes in Net Assets (2023) <br /> PRESENTATION: Mason Barringer, auditor(DMJPS) <br /> Brief Summary/Explanations: <br /> The audit for the fiscal year ending 06/30/2023 was conducted by the auditing firm of <br /> Davenport, Marvin, Joyce, Price and Sprinkle (DMJPS) with Mason Barringer as lead auditor. The <br /> completion of the audit was delayed by late reporting of OPEB calculations performed by Cavanaugh <br /> MacDonald, the Board's long-time actuarial firm. However, DMJPS was able to submit the audit to <br /> the NC ABC Commission in time to comply with the mandatory 09/30 reporting deadline. <br /> Highlights: <br /> • Working capital (current assets less current liabilities) decreased by 14.18% over the <br /> prior year. Current assets ($7,777,839) decreased -$214,083 while current liabilities <br /> ($3,400,630) increased $508,963, due primarily to the allocated net pension liability <br /> (state retirement) ($1,413,742, +$1,050,280) (pages 4 & 10). <br /> • Approximately 11.5%of profits were expended for law enforcement(5%required)and <br /> 17.3% for alcohol education/rehabilitation 7%required)( (pages 4 &28) <br /> • Assets exceeded liabilities by $13,462,308, up from$12,256,768 in 2023 (page 5). <br /> • Sales revenues of$31,208,975, up 3.86% from 2022, were the highest in the Board's <br /> history(page 6). <br /> • Total bottles sold in 2023 (2,020,888) was up 49,366 (2.50%) (page 6). <br /> • The Board invested$1,851,306 in capital assets for the completion of the Mebane store <br /> and furniture,fixtures and equipment related to the Mebane and Southern Village stores <br /> (page 7). <br /> • Notes payable ($2,654,679) increased $486,280 (22.43%), due primarily to inventory <br /> growth related to the new stores (page 8). <br /> • Net position increased$1,205,540, down-$748,373 (38.30%) from the previous <br /> year's unusually high ($1,953,913) growth, due primarily to the Board's decisions to <br /> pay off the BB&T/Truist debt and finance only the money necessary to pay the <br /> builder for the construction of Store 004. All other expenses for Store 004 -furniture, <br /> fixtures, equipment, architect, engineering,permits etc.-were paid by the Board using <br /> retained earnings from previous fiscal years. (page 12). <br /> Page 1 of 7 pages <br />