HomeMy WebLinkAbout2013/02/05 Item 09CITY COUNCIL
AGENDA STATEMENT
~`~~ CITY OF
CHULAVISTA
FEBRUARY 5, 2013 Item
ITEM TITLE: CONSIDERATION OF AUDITED FINANCIAL
STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2012
SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER ~~
REVIEWED BY: CITY MANAGER c~T ~ ~S
ASSISTANT CITY MANA ERA j-
4/STHS VOTE: YES ~ NO ~X
SUMMARY
Presented for City Council information and acceptance are the Audited Financial Statements
for the fiscal year ended June 30, 2012, as prepared by the independent audit firm of Pun &
McGeady, LLC. The audit report submitted for the City has received an unqualified (clean)
opinion from the independent audit firm.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for
compliance with the California Environmental Quality Act (CEQA) and has determined
that filing of the audited financial statement is not a "Project" as defined under Section
153'18 of the State CEQA Guidelines because it will not result in a physical change to the
environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines
the actions proposed are not subject to CEQA
RECOMMENDATION
That Council accept the fiscal year 2011-2012 Financial Statements
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
Pursuant to the City Charter Section 1017, an annual audit is performed of the City's
financial records by an independent accounting fine. The report is included as an
attachment. The firm of Pun &McGeady, LLC (formerly Caporicci & Larson, LLC) has
examined the general purpose financial statements of the City of Chula Vista and has issued
their opinion that those statements "present fairly, in all material respects, the respective
financial position of the govenunental activities, the business-type activities, each major
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FEBRUARY 5, 2013 Item
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fund, and the aggregate remainuig fund information of the City as of June 3Q 2012 and the
respective changes in financial position, and where applicable, cash flows thereof for the
year then ended in conformity with accounting principles generally accepted in the United
States of America".
The audit did not result in any material adjustments to previously reported year-end figures
for the General Fund. The General Fund unassigned fund balance was verified to be $12.0
million as of June 30, 2012. Unassigned fund balance is the portion of fund balance. that is
available for appropriation.
The $12.0 million unassigned fund balance is an increase over the $11.9 million unassigned
fund balance reported for the prior year. Included in the $12.0 million unassigned fund
balance, is $0.1 million in the Fire Equipment Lease Fund which is classified as a general-
fund type of fund. The unassigned fluid balance for the City's General Fund ($11.9 million)
represents 9.5 percent of the 2012-13 fiscal year operating budget as compared to the
Council policy minimum target level of 15 percent.
In order to form a basis for their opinion, Pun & McGeady, LLC, evaluated the internal
control procedures of the City and found no reportable conditions.
This was Pun & McGeady's fourth yeaz serving as the City's auditors. The audit firm was
very professional and efficient in their work, and provided insights and ideas that were
incorporated into the City's Consolidated Annual Financial Report (CAFR), provided as
Attachment 1.
DECISION MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial in nature and
does not require the City Council members to make' or participate in making a
governmental decision, pursuant to California Code of Regulations section 18702.4(a).
Consequently, this item does not present a conflict under the Political Reform Act (Cal.
Gov't Code § 87100, et seq:). Staff is not independently aware, nor has'staff been
informed by any City Council member, of any other fact that may constitute a basis for a
decision maker conflict of interest in this matter.
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact to the City from this action. The contract for audit services totaled
$112,348 for the yeaz reported. Funding for this contract was included in the fiscal year
2012-13 budget.
ONGOING FISCAL IMPACT
There is no fiscal impact in future years.
ATTACHMENTS
Fiscal Year 2011-12 Comprehensive Annual Financial Report
Prepared by: Phillip Davis, Assistant Dzrector, Finance Department
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