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HomeMy WebLinkAboutStudy Session #2 - Supplemental Communication - PowerPoint cFY 2016/17 Financial Results Audit and Year End Overview May 7, 2018 Presented by the Finance Department f Tl FY 2016/ 17 Audit Results Auditing firm of Davis Farr LLP audited the City's financial statements and internal controls FY 2016/1 7 Comprehensive Annual Financial Report (CAFR) received an Unmodified (Clean) Audit Opinion The City's CAFR is award winning - has received the Government Finance Officers Association's (GFOA) Excellence in Financial Reporting Award for 31 years Audit Results Reports issued: Comprehensive Annual Financial Report Issued ''unmodified'' opinion on March 29, 2018 SAS 114 Letter: Auditor Communications SAS 115 Letter: Internal Control Recommendations Appropriations Limit Agreed -Upon Procedures AQMD Report Reports in progress Single Audit Report 3 Internal Controls Evaluated controls over key accounting cycles: Billing and Cash Receipting > Purchasing and Cash Disbursements > Payroll > Banking > Grant Management Recommendation related to a grant accrual audit adjustment Recommendation to continue to evaluate strategies to improve the City's net position Areas of Audit Focus in FY 16/17 Pension Obligations Confirmed loans receivable with outside parties Testing of New Utility Billing System Testing of Capital Asset activities Upcoming Audit Testing of offsite cash receipting at Main St. Parking Lot Testing of Federal Highway Planning Grant October 1, 2017 to June 30, 2018 audit Interim audit has been scheduled for July 2018 City will implement GASB 75: Other Post Employment Benefits Unfunded liability (or asset) will be recorded in the financial statements (similar to pension) 6 FY 2016/17 Performance (Audited) Government -Wide Highlights: All Funds *Lone Term Oblip-ation Reflects GASB 68 recording of Net Pension Liability of $426.7 million General Fund FY 2016/17 Revenue/Expenditures Total Revenues $217.9 Total I'venditures Transfers In 214.6 0 Transfers Out Fund Balance Beginning of Year (6.1) 6-2.8 Prior Period Adjustment 0.9 Fund Balanc'+e' eginning R a" 63.7 Fund Balance End of Year $61.2 5/7/2018