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<br /> <br />Finance Department <br /> <br />MEMORANDUM <br /> <br />To: <br /> <br />Board of County Commissioners <br />S B F . (~ . .. F' .D' <br />usan . earnngton, SSlstant mance rrector <br /> <br />From: <br /> <br />Date: <br /> <br />December 7, 2004 <br /> <br />Subject: <br /> <br />Departm.ent of State Treasurer Notification <br /> <br />.....................................-.........................~.........I <br /> <br />I have attached a letter from the State of North Carolina Department of State Treasurer <br />dated November 24, 2004. In the letter, it was mentioned that for the year ended June 30, <br />2004, two of the County's Special Revenue Funds (Capital Reserve Utility Special <br />Revenue Fund and the Sheriff's Department Special Revenue Fund) did not include a <br />budget. The following is our response to these issues: <br /> <br />The Capital Reserve Utility Special Revenue Fund was created during the fiscal year <br />ended June 30,2002. The fund was created to accumulate access fees charged to builders <br />so funds would be available in the future to construct needed water lines. Because it is <br />difficult, if not impossible, to estimate the amount of funds that would be collected in a <br />year, and the fact that we have no immediate plans to build water lines, we felt that we <br />should not have a budget in place until we planned to spend some of the funds. The fund <br />has not had a budget for three fiscal years. So, the :fu.p.dhas been through 3 independent <br />audit reviews and 3 State reviews and has never been questioned. I did askMr. Ren <br />Wiles, with the State why this has never been pointed out to us. Mr. Wiles informed me <br />that it was probably just missed. <br /> <br /> <br />The Sheriff's Department Special Revenue Fund is new for the fiscal year ended June 30, <br />2004. This fund is used to accumulate funds from Federal Forfeiture Sharing, and North <br />Carolina Substance Control. The County,has strIct Federal and State guidelines that <br />dictate what the money can be spent on. As with the Utility Capital ReserVe Fund, we <br />are unable to predict the amount of funds that the Federal and State Governments will be <br />sending to Cabarrus County in one year. If we would try to guess the amounts, wewould <br />constantly be presenting budget amendments to the Board of Commissioners to update <br />the budgets. Mr. Wiles asked that since we did not have a budget for the Sheriff's <br />Department Special Revenue Fund what controls did we have over the fund? As pointed <br />out above, the Federal and State guidelines gives the County specific things that can be <br /> <br />lJ <br /> <br />Finance Department <br />P.O. Box 707, Concord, NC 28026-0707 . 704-920-2104 . www.cabarruscounty.us <br /> <br />~~ <br />~~!r~ri~~q~mv <br /> <br />NORTH CAROLINA <br /> <br />r:..'1 <br />