HomeMy WebLinkAboutCC AG PKT 2009-01-12 #IAGENDA STAFF REPORT
DATE: January 12, 2009
TO: Honorable Mayor and Ciry Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, CPA
Director of Administrative Services
SUBJECT: JUNE 30, 2008 COMPREHENSIVE ANNUAL
FINANCIAL REPORT, MANAGEMENT LETTER TO
CITY COUNCIL, AND APPROPRIATIONS LIMIT
AGREED-UPON PROCEDURES
SUMMARY OF REQUEST:
Staff requests that the City Council receive and file the City of Seal Beach
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June
30, 2008, the Management Letter to the City Council (SAS 112), and the
Appropriations Limit Agreed-Upon Procedures. Staff also requests authorization
and approval to make the recommended designations of General Fund Balance
and establishment of a Vehicle Replacement Fund.
BACKGROUND:
The audit firm of Mayer Hoffmann McCann P.C., has completed the annual audit
of the City of Seal Beach for the fiscal year ended June 30, 2008. The audit was
conducted in accordance with generally accepted auditing standards and
included examining, on a test basis, evidence supporting the amounts and
disclosures to obtain reasonable assurance that the financial statements are free
of material misstatements. In the opinion of the auditors, the financial statements
fairly present, in all material respects, the financial position of the City of Seal
Beach at June 30, 2008.
Mayer Hoffman McCann also completed other annual reports as part of their
audit procedures such as the Management Letter to Council (SAS 112), and the
Appropriations Limit Agreed-Upon Procedures.
The CAFR for the fiscal year ended June 30, 2007 received the Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association (GFOA). The CAFR for the fiscal year ended June 30, 2008
Agenda Item
Page 2
has also been submitted to the Government Finance Officers Association for
award consideration.
At the end of the fiscal year, the General Fund had a fund balance of $33.4
million dollars. This following table represents the allocation of these funds:
General Fund
Reserves and Designations
Reserved:
Encumbrances $182,500
Unreserved:
Designated for:
Fiscal Policy 6,244,000
Economic Condition 1,750,000
City Clerk 79,160
Traffic Impact 3,172,982
Compensated
Absences 637,500
Labor Contracts 300,000
Undesignated 21.078.668
Total Fund Balance $33,444,810
Of the undesignated fund balance listed in the table above, additional
appropriations of $1.9 million have been approved by the City Council since June
30, 2008 leaving an undesignated fund balance in the General Fund of $19.1
million. Staff is requesting that the remaining undesignated fund balance of
$19.1 million be designated as follows:
Undesignated Fund Balance
June 30, 2008
Subsequent appropriations
Amount available
21,078,668
11,934.275)
19,144,393
Vehicle Replacement
Street Improvements
Storm Drains
Buildings
Pool
2,000,000
5,000,000
5,000,000
2,000,000
5,000,000
19,000,000
Page 3
As part of the request to designate General Fund Balance as listed above, staff is
also requesting approval to create a Vehicle Replacement Fund in the amount of
$2 million.
FINANCIAL IMPACT:
A transfer of $2 million will be made from the General Fund to the Vehicle
Replacement fund. All other designations will be brought back to City Council for
approval and appropriation at a later date.
RECOMMENDATION:
That the City Council receive and file the Comprehensive Annual Financial
Report of the City of Seal Beach, the Management Letter to the City Council and
the Appropriations Limit Agreed-Upon Procedures Report for the fiscal year
ended June 30, 2008. Authorize and approve the recommended designations of
fund balance and establishment of a vehicle replacement fund.
SUBMITTED BY:
`~wA
Robbeyn rd, CPA
Director of Administrative Services
Attachments:
NOTED AND APPROVED:
~~~
David Carma y, Ciry Manager
A. Comprehensive Annual Financial Report - FY 2007-08
B. Management Letter
C. Agreed Upon Procedures Report