2023d ABC Board Minutes - Laserfiche WebLink

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ORANGE COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD (a component unit of Orange County Government) NOTES TO FINANCIAL STATEMENTS June 30,2023 and 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Principles Used in Determining the Scope of the Entity for Financial Reporting The Orange County Alcoholic Beverage Control Board ("the ABC Board"), a component unit of the Orange County Government, is a corporate body with powers outlined by North Carolina General Statutes ("NC G.S.") Chapter 1813-701. The local ABC Board may borrow money in accordance with NC G.S. 1813-702(b), and the City or County's governing body who appoints the ABC Board shall in no way be held responsible for the debts of the ABC Board. The ABC Board is required by NC G.S. to distribute its entire net income after deducting amounts required for law enforcement, education, and retaining proper working capital to the General Fund of the City and County, which represents a financial benefit to the City and County. Therefore, the ABC Board is reported as a discretely presented component unit in the City's and County's financial statements. B. Organizational History The ABC Board was established under Chapter 18 of the NC G.S. and implemented by a county-wide election held on February 3, 1959. A composite Board, consisting of the Orange County Board of Commissioners, the Orange County Board of Elections,and the Orange County Board of Health,three(3)appointed individuals to serve on the ABC Board with terms of three(3)years,two(2)years,and one year. The ABC Board, as provided by North Carolina Alcoholic Beverage Control laws, operates eight (8) retail liquor stores, and through contacts with the Orange County Sheriff's Department, Town of Chapel Hill Police Department, Town of Carrboro Police Department, Town of Hillsborough Police Department, and UNC Police Department, investigates violations of such laws. NC G.S. 18B- 805(c)(2)(3) requires that the ABC Board expend at least 5% of profits for Law Enforcement and at its for Alcoholic Education and Rehabilitation purposes. The ABC Board is also least 7% of same pro required to retain a sufficient amount of cash in its working capital that generally consists of two (2) weeks of average net sales. Mixed beverages for social establishments and restaurants in Orange County was authorized by a comity-wide vote on September 12, 1978. On April 17, 1979, the North Carolina General Assembly, in Session Laws Chapter 385,provided an act to expand the ABC Board from three(3) to five(5) members and provided that the members shall be appointed by the Board of Orange County Commissioners. i I� i i -15- i