HomeMy WebLinkAbout12/08/1998, 5 - COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 1997-98 counck 12 - g - q g
j agenda REpoRt
CITY OF SAN LUIS O B I S P O
FROM: Bill Statler,Director of Finance
Prepared By: Carolyn Dominguez,Accounting Manager 2-6
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 1997-98
CAO RECOWIENDATION
Review and discuss the Comprehensive Annual Financial Report (CAFR) and ending financial
results for 1997-98.
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,
1998, 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 report document is the transmittal memorandum which provides a comprehensive
analysis of the City's financial position as of June 30, 1998 as well as summaries of significant City
fiscal policies and practices. Key variances from projected ending balances in the 1997-99
Financial Plan are highlighted in the transmittal memorandum. As noted in the transmittal
memorandum, ending balances are generally on target with projections, and they will be further
evaluated as part of the mid-year budget review where they can be placed in the context of other
revenue and expenditure trends since the adoption of the 1997-99 Financial Plan.
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.
Report Organization
In accordance with generally accepted accounting principles for state and local governments, the
City's CAFR is organized into four major sections as outlined in the Preface to the report:
introduction, financial reports, statistical tables, and single audit act report. The following is a brief
summary of the contents of each of these sections:
5-i
Council Agenda Report—Comprehensive Annual Financial Report for 1997-98
Page 2
Introduction. The transmittal memorandum and other items of general interest (directory of
officials and advisory bodies, organization chart, and awards for excellence in financial reporting
from the GFOA and CSMFO)are included in this section.
Financial Reports. This section includes the primary financial statements of the City, and is
organized into three major parts:
■ Auditors'opinion regarding the financial statements.
■ General purpose financial statements, including notes thereto, which summarize the City's
financial position at the fiord type level.
■ Supplemental financial statements which provide financial information for each of the
City's funds and account groups organized by generic fund type: Governmental Funds
(General, Special Revenue, Capital Project, and Debt Service), Enterprise Funds, Fiduciary
Funds,and General Fixed Assets.
Statistical Tables. This section provides demographic and financial tables which provide current
and historical trend information for the City and is organized into four major parts:
■ Statistical overview. General information about the San Luis Obispo community.
■ General financial trends. Ten year summary information on governmental revenues and
expenditures.
■ Long-term indebtedness. Ten year summary information on debt service requirements.
■ Economic and demographic trends. Ten year summary information on taxable sales,
building permits and valuations,housing,population, and other demographic trends.
Single Audit Act Report. This section presents required financial and compliance reports related
to federal grant programs administered by the City.
Recognition for Financial Reporting Efforts
GFOA. Beginning in fiscal year 1983-84, all of the City's CAFR's have received the Government
Finance Officers Association (GFOA) certificate of achievement for excellence in financial
reporting, which is a prestigious national award recognizing the use of high standards in preparing
state and local government financial reports.
CSMFO. The California Society of Municipal Finance Officers (CSMFO) has awarded a
certificate of award of outstanding financial reporting to the City for all of our CAFRs since 1990-
91.
Council Agenda Report—Comprehensive Annual Financial Report for 1997-98
Page 3
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. Participation in these programs has a
number of benefits beyond simply receiving recognition for our efforts: striving to meet program
standards and goals results in quality reporting; and comments received by reviewers are
incorporated into subsequent reports, resulting in continuous improvements in reporting the
financial results of our operations to elected officials, staff, interested parties such as bondholders
and credit agencies, and the public at-large.
ENCLOSURE
Comprehensive Annual Financial Report for 1997-98
5-3