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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 13, 2008 <br />Action Agenda <br />Item No. _Z? <br />SUBJECT: Review of Capital Project Funds <br />-- DEPARTMENT: Finance PUBLIC HEARING: (Y /N) No <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Gary Humphreys, 245 -2453 <br />PURPOSE: To discuss issues related to the School and County Capital Project Funds. <br />BACKGROUND: In preparation for year end reconciliation, a review of the School and County <br />capital project funds revealed a difference in budgeted and actual revenues. The analysis was <br />limited to the information available in the MUNIS financial system which was implemented <br />during FY 2003. <br />In general, the differences in budgeted and actual revenues exist because: <br />1. Differences existing prior to the transition from the financial legacy system to MUNIS <br />business system in 2003 were never corrected; <br />2. Proceeds from past debt financings were set aside in an unallocated account or line item <br />instead of being allocated to specific projects; <br />3. Grant monies were budgeted and not awarded /received; <br />4. Total expenditures exceeded the project budget by varying amounts; <br />5. Specific projects were budgeted but monies were never transferred from the General <br />Fund; or <br />6. Bond monies to be issued are already budgeted but the revenue is not yet received. <br />The following are examples of recent projects with revenue shortfalls for which fund balance <br />transfers from the General Fund will need to be made to close out the projects. <br />Gravelly Hill Middle School is budgeted at $23,162,566. One of the budgeted revenue sources, <br />sales tax reimbursement is less than the budgeted amount. This is because implementation of <br />the process enabling sales tax to be reimbursed occurred later in the project than estimated <br />reducing the amount which could be claimed. An additional $149,180 would need to be <br />allocated to make up the revenue shortfall. There is a remaining unspent budget $13,417 which <br />could offset this amount if the project can be closed with no further expenditures. <br />