HomeMy WebLinkAboutFiscal Year 2012/2013 Audit Close-Out AdjustmentsDept. ID FN 14-004 Page 1 of 2
Meeting Date: 4/7/2014
hooAdveb 7-0
CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 4/7/2014
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Fiscal Year 2012/13 Audit Close -Out Adjustments
Statement of Issue:
The Finance Department has completed the year-end closing process for Fiscal Year 2012/13,
which began on October 1, 2012, and ended on September 30, 2013. Final technical adjustments
need to be made to reconcile the budget with actual audited expenditures. City Council
authorization is requested to approve these final technical adjustments consistent with the audited
financial statements. There are sufficient revenues, available cash, and/or fund balances to
support the adjustments.
Financial Impact:
1. West Orange County Water Board Fund (508): $23,970.
2. Parking Structure — Bella Terra (711) $7,971; and Strand (712): $90,206.
3. Office of Traffic Safety — Grant Fund (972): $15,756.
Recommended Action:
Approve final adjustments to the Fiscal Year 2012/13 Revised Budget.
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
Final technical budget adjustments to the Fiscal Year 2012/13 Revised Budget are requested to
align appropriations in certain Funds with actual expenditures incurred through September 30,
2013, to match audited expenditure data.
As actual expenditures cannot exceed the appropriation amounts contained in the Revised Budget,
adjustments are required to ensure compliance with Generally Accepted Accounting Principles
(GAAP), Governmental Accounting Standards Board (GASB) and other regulatory, contractual or
legal requirements. Please note these appropriation increases are fully offset by commensurate
amounts of revenues, available cash or fund balances in each Fund.
1. West Orange County Water Board Fund (508): The West Orange County Water Board
(WOCWB) Fund is a fiduciary fund that accounts for the activities of the WOCWB, a joint
powers authority. An increase in budget appropriations totaling $23,970 is requested to
cover year-end accruals for expenditures related to Fiscal Year 2012-13.
Item 4. - 1 HB -42-
Dept. ID FN 14-004 Page 2 of 2
Meeting Date: 4/7/2014
2. Parking Structure — Bella Terra (711) and Strand (712) Funds: The Bella Terra and
Strand Parking Structure Funds are fiduciary funds that account for the activities related to
the maintenance and operations of the Bella Terra and the Strand parking structures. An
increase in budget appropriations totaling $98,177 is requested to cover year-end accruals
for expenditures related to Fiscal Year 2012-13.
3. Office of Traffic Safety - Grant (972): The City received grant funding from the California
Office of Traffic Safety to reimburse the City for certain costs associated with DUI
enforcement and selective traffic enforcement details. City Council authorization is
requested to utilize a total of $15,756 in General Fund revenue to fund previously incurred
expenses in administering this grant. This action is necessary to remove existing negative
fund balances in the grant fund for the year-end financial statement audit. There is sufficient
General Fund revenue to offset this grant -related expense.
The above referenced actions are necessary to finalize audit close-out activities for FY 2012/13.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Improve long-term financial sustainability.
Attachment(s):
1. Fiscal Year 2012/13 Audit Close -Out Adjustments.
HB -43- Item 4. - 2
ATTACHMENT 1
FY 2012/13 AUDIT CLOSE-OUT ADJUSTMENTS
Fund No.
Fund Name
Account
Appropriation
Department
100
General Fund
10070202,88210.972
$
15,756
Police
508
West Orange County Water Board
50885101.67650
$
23,970
Public Works
711
Parking Structure -Bella Terra
71180101.69450
$
7,971
Office of Business Development
712
Parking Structure -Strand
71280101.69450
$
90,206
Office of Business Development
$ 137,903
Item 4. - 3 xa -44-