Orange County's independent auditors presented a clean, unmodified opinion on the county’s financial statements for the year ended Dec. 31, 2024, and finance staff summarized major revenue and expenditure variances that drove a larger‑than‑expected addition to fund balance.

Audit results: Melissa, the auditors’ engagement partner, said the audit obtained reasonable assurance and identified no fraud, significant difficulties or disagreement with management. The county received the Government Finance Officers Association certificate of achievement for excellence in financial reporting for 2023, the auditor said.

Key financial points: the county budgeted to receive about $806 million in revenue but recorded approximately $781.6 million, largely because several grant budgets rolled and will be spent in later years. Final expenditures were about $746 million, producing roughly $25–$46 million in favorable variance compared with the adopted budget. The net result was an increase to general‑fund balance rather than the use of fund balance that had been budgeted.

Drivers: auditors and county staff said savings were widespread across functions—general government, public safety, health and social services—with salary and benefit vacancy savings and delayed contractual activity accounting for much of the underspending. Grant rollover work was especially notable in health, transportation and federal public‑safety grants.

Sales tax and interest: finance staff reported sales tax receipts were under the plan for the month and year‑to‑date (the meeting noted July results were 6.23% below plan for the month and roughly $6.1 million under plan year‑to‑date). However, interest and investment income remained a meaningful revenue contributor in 2024 compared with prior years.

What it means: auditors emphasized the county's strong fund‑balance position in absolute terms (unassigned fund balance and total fund balance percentages were presented) while noting grant timing and program spending will affect near‑term results. Legislators asked for clarifications on distribution of sales tax to municipalities and asked finance staff to continue monthly reporting.

Ending: the audit presentation closed with auditors urging continued monitoring of grant rollovers and continued attention to vacancy management; finance staff said they will continue monthly updates to the legislature.