2023d ABC Board Minutes - Laserfiche WebLink

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ORANGE COUNTY ABC BOARD—AGENDA FORM Meeting Date: October 17, 2023 Agenda Item# 4 Regular Session X Closed Session Notes: • The format of the "Schedule of Revenue and Expenditures-Budget and Actual" (the year- end budget reconciliation) (page 51) does not allow for the inclusion of"outside" funding resources including capital funds received from debt service and fiends retained in prior fiscal years. As a result, the report shows a deficit of expenditures over revenues of -$663.148. The auditor addresses this issue in Note 2 ("Stewardship, Compliance and Accountability") (page21). The auditor mentions the outside financing received for the construction of the new Mebane store as well as the Board's decision to use retained funds from previous years to satisfy the outstanding debt on the Chapel Hill North store (page 21). The auditor further elaborates on this matter in Note 14 ("Notes Payable"), detailing the payoff of the BB&T/Truist loan using previously retained funds. • In previous years, the Board has voted to deposit unrestricted working capital retained/retained earnings/change in net position revenues from the previous year ($1,205,540 for fiscal year 2023) in a separate bank account, segregated from operational funds. Separating these funds allowed the Board to determine the availability of funds necessary to satisfy debt service and ongoing capital investments. Currently,a balance of$391,837 remains in this account(Roxboro Savings).As the Board is investigating new banking options, should the Board elect to segregate the 2023 retained earnings as usual,the relocation of these funds may be delayed until final banking decisions are made. Action Requested: 1. Review and discuss as needed. 2. Motion to approve the audited financial statements as prepared. 3. Discuss potential segregation of retained earnings from FY 2023. Vote as needed. Financial Impact: See Above Staff Recommendations/Comments: See Above. Page 2 of 7 pages