HomeMy WebLinkAbout12/13/1999, 6 - COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 1998-99 Council M. gD-ia
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CITY OF SAN LUIS OB ISP,0
FROM: Bill Statler, Director of Finance I/r�
Prepared By: Carolyn Dominguez,Accounting Manager(►�
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 1998-99
CAO RECOMMENDATION
Review and discuss the. Comprehensive Annual Financial Report and ending financial results for
1998-99.
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,
1999, 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, 1999 as well as summaries of significant City fiscal
policies and practices. Key variances from projected ending balances in the 1999-01 Financial Plan
are highlighted in the transmittal. memorandum. As noted in the transmittal memorandum, ending
balances are generally on target with projections. The General Fund finished the year $1.3 million
better than anticipated. About half of this is due to favorable revenues,which were 2.5%better than
projected; and about half is due to expenditure savings, which were 2.7% less than budgeted.
These variances 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 1999-01
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:
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introduction, financial reports, statistical tables and single audit act report. The following is a brief
summary of the contents of each of these sections:
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 four 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.
M Required supplementary information on the City's Year 2000 readiness.
■ Supplemental financial statements which provide financial information for each of the
City's fiords 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
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excellence in financial reporting, which is a prestigious national award recognizing_ the use
of high standards-in preparing state and local government financial reports. '
® CSMIF0. The California Society of Municipal Finance Officers (CSMFO) has awarded a
certificate:of award of outstanding financial reporting to the City forall of our CAFRs since
1990-91.
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. For example,by striving to
meet program standards and goals, we produce better-reports. Additionally, as part of the review
process, we receive comments for improvement from other.municipal financeprofessionals who
review our reports from a"fresh"perspective. We believe this results in continuous 'improvements
in reporting our financial results to elected officials, staff and other interested parties such as
bondholders,credit agencies and the public at-large.
ENCLOSURE
Comprehensive Annual Financial Report for 1998-99
G:Audit FoldeWAudit_99/Councii Agenda Report 99
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