Report to Mayor and City Council
Tuesday, March 07, 2017
Discussion
SUBJECT:
Title
COMPREHENSIVE ANNUAL FINANCIAL REPORT DATED JUNE 30, 2016
Body
I. SUMMARY
The City's independent financial statement auditor, White Nelson Diehl Evans, has completed the audit for FY15-16. The purpose of this report is to provide an overview of the audit and financial results.
II. RECOMMENDATION
Recommendation
RECEIVE and FILE this staff report.
Body
III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
The City retained White Nelson Diehl Evans (WNDE), an independent firm of Certified Public Accountants to perform the financial statement audit for the fiscal year ended June 30, 2016. The auditor has issued a clean opinion. This means the auditor has found the financial statements to be presented fairly, in all material respects, the financial position and activities of the City and its component units.
The Comprehensive Annual Financial Report (CAFR) is available on the City's website and at City Hall for viewing. Each City Council Member has received a separate bound copy of the report with the distribution of this agenda.
The General Fund is the primary operating fund of the City. The following is a summary of FY15-16 estimates vs. FY15-16 actual numbers.
Actual revenue was $71,991 less than estimated (0.1%).
Operating expenditures were approximately $0.9 million less than estimated. However, an additional $8 million of expenditures were accrued for various litigation settlements ($0.5 million) and the Colony Cove mobile home park rent control case ($7.5 million), which the City is aggressively defending in appellate court. The $0.9 million favorable operating variance offset the additional $8 million of expenditures, resulting in a net unfavorable expenditure variance of $7.1 million.
The FY15-16 estimates included an assumption that the restricted monies accounted for in the General Fund would be transferred to the ...
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