HomeMy WebLinkAbout1998-01-13; City Council; 14518; 1996-97 ANNUAL FINANCIAL REPORTS€ -’ ‘I Q R 9 CITY OF CARLSBAD - AGE DA BILL
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I MTG. 01-13-98 1996-97 ANNUAL FINANCIAL REPORTS
DEPT. FINANCE
CITY ATTY,
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RECOMMENDED ACTION:
Accept the 1996-97 City of Carlsbad Comprehensive Annual Financial Report (CAFR), the
Audit Report, the Federal Asset Forfeiture Audit Report and the Independent Auditors’ Rep
Agreed-Upon Procedures Applied to Appropriations Limit Worksheets.
ITEM EXPLANATION:
Each year an independent auditor examines the City’s financial records. In fiscal year
Conrad & Associates completed its fifth year as the City’s outside auditor. The audit process
several months of on-site examination, testing, and reconciliation of investments, bank St;
accounting records, warrants issued, payroll records, appropriations, fixed assets, revet-
expenditures. The end result is an opinion on the fairness of the presentation of the finar
within the reports. As in the past, this year we received an unqualified opinion on all of 01
reports. The City CAFR has received awards for excellence from the California Society of I
Finance Officers (CSFMO) in the past, and we believe that our current report continues to cc
the Certificate of Achievement Program requirements.
The CAFR includes all entities for which the City exercises oversight responsibility which inch
is not limited to, the authority to govern, manage, approve budgets and assume fiscal respl
Using this definition as a guide, the 1996-97 CAFR includes the financial transactions of the
legal entities:
The City of Carlsbad
The Carlsbad Municipal Water District
The City of Carlsbad Public Improvement Corporation
The Carlsbad Redevelopment Agency
Due to various legal requirements and managerial needs, separate financial statements are I
for some of the above entities. These have been previously distributed to the respective g
bodies and additional copies are on file with the City Clerk and the Finance Department.
Financial Summary as of June 30.1997
The reports show the financial condition of the City at June 30, 1997. The combined assets o
of Carlsbad are $467 million, with fixed assets comprising 40% and cash and investments a
the total. Total City expenditures were $93.6 million, an increase of $7 million from 1995-96.
expended higher funds because of increased capital project expenditures, increased staf
consulting costs related to the higher level of development activity, increased public safety e)
Harmony Grove fire expenses, fee supported recreational activities, and increased \
Compensation reserves.
Combined City revenues totaled $133.4 million, up $28 million over 1995-96. The major facto1
revenue gain are increased residential and commercial development, corresponding develo
for future capital construction, a higher number of sewer and water customers resulting ir
demand, and a growing economy.
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4. Page 2 of Agenda Bill # * 9
General Fund undesignated reserves increased by $5 million due to higher than anticipated r
Special revenue undesignated reserves increased $4.5 million reflecting increased revenues,
expenditures and lower reserved fund balances. Capital projects undesignated reserves eqL
million and will be spent on projects in future years.
Working capital in the internal service funds (information systems, fleet management, and in
decreased $658,000. This decrease is primarily due to the fact that during the year, th
Insurance Fund credited $1 million back to participating departments for overcharges in
years.
Additional information regarding the City’s operations and achievements for 1996-97 can be
in the CAFR Letter of Transmittal.
FISCAL IMPACT:
The CAFR and the additional financial reports present the financial condition of the City a
related entities as of June 30, 1997. With the changing economic situation, the financial con
of the City also changes. In order to maintain a good understanding of the City’s complex fin;
.picture, financial updates are given to Council on a quarterly and as-needed basis.
EXHIBITS:
Audit reports are on file with the City Clerk and Finance Department:
I. Comprehensive Annual Financial Report for the fiscal year ended June 30, 1997.
2. Single Audit Report on Federal Assistance Programs for fiscal year ended June 30, 1997.
3. Federal Asset Forfeiture Audit Report for fiscal year ended June 30, 1997.
4. Independent Auditors’ Report on Agreed-Upon Procedures Applied to Appropriations
Worksheets.