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[cont'd] G. Assets,Liabilities,and Net Position[cont'd] Net Position Net position consists of the following: 1. Invested in capital assets, net of related debt — This component of net position consists of capital assets, including any restricted capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of invested in capital assets,net of related debt. Rather,that portion of the debt is included in the same net position component as the unspent proceeds. For the years ended June 30, 2023 and 2022, the ABC Board had $8,548,978 and $7,688,904 invested in capital assets,respectively. 2. Restricted for law enforcement—This applies only when the ABC Board employs its own ABC officer. 3. Restricted for capital improvements —NC G.S.18B-805(d) requires approval of the appointing authority to establish this account. 4. Restricted for working capital—North Carolina Alcoholic Beverage Control Commission Rule .0902("Rule .0902")defines working capital as the total of cash,investments, and inventory less all unsecured liabilities.An ABC board shall set its working capital requirements at not less than two (2) weeks of average gross sales of the last fiscal year or greater than three (3) months of average gross sales of the last fiscal year. Average gross sales means gross receipts from the sale of alcoholic beverages less distributions required by NC G.S.1813-805(b), (2), (3), and (4). For the years ended June 30,2023 and 2022, the ABC Board had$919,582 and $885,538 restricted for working capital,respectively. 5. Unrestricted net position—This component of net position consists of net positions that do not meet the definition of restricted or net investment in capital assets, net of related debt. For the years ended June 30, 2023 and 2022, the ABC Board had $3,993,748 and $3,682,326 in unrestricted net position,respectively. H. Income Taxes The ABC Board is a nonprofit governmental organization; accordingly, no income taxes have been provided for in the accompanying financial statements. I. Subsequent Events Management has evaluated subsequent events through September 28, 2023, the date the financial statements were available to be issued. -20-