HomeMy WebLinkAbout12/11/2001, BUS 3 - COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 2000-01 ADcouncil M.figDn
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C I TY O F SAN LU I S O B I S P O
FROM: Bill Statler, Director of Finance Xd_�
Prepared By: Carolyn Dominguez, Accounting Manager
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 2000-01
CAO RECOMMENDATION
Review and discuss the Comprehensive Annual Financial Report and ending financial results for
2000-01.
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,
2001, 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, 2001 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 compare favorably with budget estimates in virtually all areas of our operations. For the
General Fund, the ending unreserved and undesignated fund balance is $8,548,100. This is 33% of
operating expenditures compared with the City's Financial Plan policy of 20%; and is $1.6 million
greater than projected. This favorable balance is due to positive results in both revenues and
expenditures: revenues were 3%higher than projected and expenditures 2%less than budgeted.
However, we need to be very cautious about what these results mean in the longer term in light of
recent adverse sales tax trends, local and national economic trends, the uncertain impacts of the
tragic events of September 11, 2001, and the very real possibility of State takeaways in balancing its
budget such as the vehicle license fee(VLF) backfill.
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 2001-03
Financial Plan. This includes appropriation changes we have already made that affect fund balance,
most notably emergency repairs to Foothill Bridge in the amount of$410,000.
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
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Council Agenda Report-Comprehensive Annual Financial Report for 2000-01
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unqualified (favorable) opinion regarding the Citys 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:
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 Government Finance Officers Association (GFOA) and the California Society of
Municipal Finance Officers (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:
1. Auditors'opinion regarding the financial statements.
2. General purpose financial statements, including notes thereto, which summarize the City's
financial position at the fund type level.
3. 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:
1. Statistical overview. General information about the San Luis Obispo community.
2. General financial trends. Ten-year summary information on governmental revenues and
expenditures.
3. Long-term indebtedness. Ten-year summary information on debt service requirements.
4. Economic and demographic trends. Ten-year summaries of 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. As noted in the report, no instances of non-
compliance or internal control weaknesses were identified, nor are there any report findings
requiring follow-up action by the City.
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Recognition for Financial Reporting Efforts
GFOA. Beginning in fiscal year 1983-84, all of the City's CAFRs have received GFOA certificate
of achievement for excellence in financial reporting. This is a prestigious national award
recognizing the use of high standards in preparing state and local government financial reports.
CSIVIFO. CSMFO has awarded a certificate of award of outstanding financial reporting to the City
for all 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 finance professionals 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 2000-01
G:Audit Folders/Audit 2000-01/Council Agenda Report 01
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