AGENDA #6

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	Loris R. Colclough, Interim Finance Director
SUBJECT:	Comprehensive Annual Financial Report and Auditor’s Letter
DATE:	January 14, 2008

We are pleased to present the Town of Chapel Hill Comprehensive Annual Financial Report [(1.6MB PDF)] for the year ended June 30, 2007. The financial statements of the governmental and business activities, each major fund, and the aggregate remaining fund information was audited by Dixon Hughes PLLC, Certified Public Accountants and Advisors.  The auditors have expressed an unqualified opinion on the financial statements.

DISCUSSION

The auditors noted and commented on one finding in the Management Letter Memorandum [(PDF)] regarding a transfer in excess of appropriations from the Transit Fund to the Transit Grant Fund.  The transfer was necessitated to cover outstanding amounts due from federal and state reimbursements, chiefly for the construction of the new Town Operations Center and for the purchase of buses and technology.  Since the billed receivables were not received within 90 days of the fiscal year-end, the revenue amount was deferred under the Town’s modified accrual accounting guidelines.  All receivables were subsequently received.

Ms. LaVonne Montague, a representative of Dixon Hughes PLLC, will be available to make a brief presentation to the Council at the meeting.