HomeMy WebLinkAboutCity Council Agenda Item No. 13T ~
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REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
ANA MEMBERS OF THE CITY COUNCIL
FROM: PAT KILROY
INTERIM CITY MANAGER
DATE: APRIL 10, 2012
SUBJECT: ANNUAL FINANCIAL REPORTS FOR THE FISCAL YEAR ENDING
JUNE 30, 2011
Background
The City's auditors completed their audit field work on March 12, 2012 for the fiscal year
ending June 34, 2411. This is the seventh year that the auditors, White Nelson Diehl
Evans LLP have performed the audit services for the City. The audit reports include the
City and its component units. The Lake Elsinore Redevelopment Agency financial
statements were presented to the Redevelopment Agency Board at the January 10,
2412 board meeting. The following annual reports are being presented:
• City of Lake Elsinore Comprehensive Annual Financial Report (CAFR)
• Lake Elsinore Public Financing Authority Component Unit Financial Statements
• Lake Elsinore Recreation Authority Component Unit. Financial Statements
• Appropriations Limit Worksheet No. 4 with Independent Accountant's Report on
Agreed-upon Procedures Applied to Appropriations Limit Worksheets
• Audit Communication Letter
• Report on Internal Controls (Management Letter}
The above reports are bound or included as separate letters and have been included
with this agenda separately. Separate staff reports were prepared for the Public
Financing Authority and Recreation Authority financial statements.
AGENDA ITEM NO.13
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Annual Financial Reports
April 10, 2012
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Discussion
Comprehensive Annual Financial Report {CAFR
The "Management's Discussion and Analysis." section on pages 3 to 14 of the
Comprehensive Annual Financial Report provides a narrative overview and analysis of
the financial activities of the all the entities and funds of the City of Lake Elsinore
combined for the fiscal year ended June 30, 2011.
The fund .balance of the General Fund, the chief operating fund of the City, was $10.8
million at June 30, 2011. This balance represents 46.5%~ of total General Fund
expenditures. The General Fund reserves are broken down as follows:
Unallocated Revenue $3,138,684
RDA Advance Reserve 2,000,000
Catastrophic Reserve 3,500,000
Budget Stabilization Reserve 2,149,.919 Total General Fund Balance 6-30-2011 1 Q ?88.603
Appropriations Limit Worksheet No. 6 With Independent Accountant's Report on
Agreed-upon Procedures Applied to Appropriations Limit Worksheet
The auditors performed agreed-upon procedures to ensure that the City's appropriation
limit calculations were correctly calculated and adopted in accordance with Article XIIIB
of the California Constitution and adopted by City Council. lUo exceptions were noted.
Audit Communication Letter
No significant exceptions were noted.
Report on lnterna/Controls (Management Letter)
During the audit, the auditors noted certain matters involving the internal control
structure and its operation that are typically communicated in a "management letter".
There were five items noted and the response of staff is included in the letter.
Fiscal Lmpact
There is no fiscal impact.
Recommendations
1. It is recommended that City Council receive and file these reports
Prepared by: James R. Riley
Director of Admi i rative Services
Approved by: Pat Kilroy
Interim City Manager
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