HomeMy WebLinkAbout12/16/2008, 3 - COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 2007-08 council Mim
12/16/08
j acEnba uEpont '=Nub
CITY OF SAN LU I S O B I S P 0
FROM: Bill Statler, Director of Finance & Information Technology
Debbie Malicoat, Finance Manager
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 2007-08
RECOMMENDATION
Review and discuss the Comprehensive Annual Financial Report and ending financial results for
2007-08.
DISCUSSION
The accompanying Comprehensive Annual Financial Report (CAFR) has been prepared in order to
present the City's financial condition and results of operations for the fiscal year ended June 30,
2008, as well as to provide statistical information of general interest about the San Luis Obispo
community.
Financial Results Highlighted in the Report
Included in the document is the Transmittal Memorandum, which provides a comprehensive
analysis of the City's financial position as of June 30, 2008 as well as summaries of significant City
fiscal policies and practices. Key variances from projected ending balances for 2007-08 are
highlighted in the Transmittal Memorandum.
The Short Story: The audited financial results for the year are on target with the interim results
presented to the Council in September 2008. For the General Fund, financial results for the year
were slightly better than estimated on both the revenue and expenditure side: revenues and other
sources were 1% better than projected and expenditures (including encumbrances and
carryovers).were.underbudgetby 1%. - -
While overall General Fund revenues and sources were slightly better than budget estimates,
revenues from our top three General Fund sources — sales, property and transient occupancy
taxes—were $668,000 lower than budget estimates. As discussed with the Council as part of the
General Fiscal Outlook on November 20, 2008, in conjunction with further economic declines
since June 2008 and other adverse events, this translates into a very tough fiscal outlook for
2009-11, which would be much worse"but for" Measure Y revenues.
Independent Audit
As required by the City Charter, the financial statements have been audited by an independent
certified public accountant (Glenn, Burdette, Phillips & Bryson) and their letter expressing an
unqualified (favorable) opinion regarding the City's financial position is also included in the report
document.
3 - 1
I'
Comprehensive Annual Financial Report for 2007-08 Page 2
Report Organization
In accordance with generally accepted accounting principles for state and local governments, the
City's CAFR is organized into three major sections: introduction, financial reports and statistical
tables. The following is a brief summary of the contents of each of these.sections.
Introduction. The Transmittal Memorandum and other information of general interest are included
in this section, including: directory of officials and advisory bodies, organization chart, and awards
for excellence in financial reporting from the Government Finance Officers Association (GFOA)
and the California Society of Municipal Finance Officers(CSMFO).
Financial Reports. This section includes the primary financial statements of the City and is
organized into five major parts:
1. Auditors' opinion regarding the financial statements. (They have given the City a "clean
opinion, stating the financial statements fairly present the City's financial position in conformity
with generally accepted accounting principles.)
2. Management's discussion and analysis providing a narrative overview of the government-wide
financial activities.
3. The basic financial statements presenting the government-wide statements which combines the
activities of the major funds (General, Capital Outlay and all Enterprise Funds) into
governmental and business-type categories; the fund financial statements; and the notes to the
financial statements.
4. Required supplementary information presenting the General Fund actual results with both the
original and final adjusted budgets.
5. Other supplemental schedules and financial statements providing financial information for each
of the City's non-major governmental and agency funds. This includes_a financial schedule
presenting Measure Y revenues and uses in 2007-08.
Statistical Tables. This section provides demographic and financial tables showing current and
historical trend information for the City and is organized into six major parts:
1. Statistical overview. General information about the San Luis Obispo community.
2. General financial trends. Ten-year summary information on net assets, governmental
revenues and expenditures and fund balances.
3. Revenue capacity.Ten-year summary information on property and sales tax trends.
4. Debt capacity. Ten-year summary information on debt service requirements.
5. Economic and demographic trends. Ten-year summaries of taxable sales, building permits
and valuations,housing,population and other demographic trends.
6. .Operating information.Ten-year trend information on operating indicators by function.
3 - �
Comprehensive Annual Financial Report for 2007-08 Page 3
Recognition for Excellence in Financial Reporting
Beginning in fiscal year 1983-84, all of the City's CAFRs have been awarded the certificate of
achievement for excellence in financial reporting from the Government Finance Officers
Association of the United States and Canada (GFOA). This is a prestigious national award
recognizing our use of the highest standards in preparing our annual financial report. We believe
our current report continues to meet their program requirements, and we are submitting it to them to
determine its eligibility for another award.
ENCLOSURE
Comprehensive Annual Financial Report for 2007-08
G:Audit Folders/Audit 2007-08/CAFR/Council Agenda Report,2007-08
3 -3