HomeMy WebLinkAbout2009/01/27 Item 9
CITY COUNCIL &
REDEVELOPMENT AGENCY
AGENDA STATEMEN1,
~Vf=. CITY OF
~ (HULA VISTA
JANUARY 27, 2009, Item~.'
ITEM TITLE:
CONSIDERATION OF AUDITED FINANCIAL STATEMENTS FOR
FISCAL YEAR ENDED JUNE 30, 2008
DIRECTOR OF FINANCE/TREASURER~
CITY MANAGER
SUBMITTED BY:
REVIEWED BY:
SUMMARY
Presented for City Council and Redevelopment Agency inforn1ation and acceptance are the Audited
Financial Statements for the fiscal year ended June 30, 2008, as prepared by the independent audit
firm of Macias, Gini Cind O'Connell, LLP. The audit reports submitted for the City and Agency
have received unqualified (clean) opinions from the independent audit film.
4/5THS VOTE: YES D NO 0
A representative from Macias, Gini and O'Connell will be at the meeting to make a brief
presentation to the Audit Committee.
ENVIRONMENT AL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the
California Enviromnental Quality Act (CEQA) and has detern1ined that filing of the audited
financial statements is not a "Project" as defined under Section 15378 of the State CEQA
Guidelines because it will not result in a physical change to the envirom11ent; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA.
RECOMMENDATION
Council and Agency accept the fiscal year 2007/2008 Financial Statements.
BOARDS/COMMISSION RECOMMENDATION
Not applicable
DISCUSSION
Pursuant to the City Charter Section 1017, an annual audit is perforn1ed of the City's financial
records by an independent accounting finn. The reports are included as attachments. The
independent auditing finn of Macias, Gini and O'Connell, LLP has examined the general purpose
financial statements of the City of Chula Vista and the Redevelopment Agency and has issued their
opinion that those statements "present fairly, in all material respects, the financial position of the
City as of June 30, 2008 and the results of its operations and cash flows for the year then ended in
conformity with generally accepted accounting principles".
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January 27, 2009 Item q
Page 2 of2
The audit did not result in any material adjustments to previously reported year-end figures for the
General Fund. The General Fund available fund balance was verified to be $9.3 million as of June
30, 2008, a decrease of approximately $1.1 million from the prior year ending balance of $10.4
million. This reserve level represents 6.1 percent of the operating budget as compared to the
Council policy minimum target level of 8 percent.
The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Chula Vista for its
comprehensive annual financial repOlt for the fiscal year ended Jlme 30, 2007. In order to be
awarded a Celtificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfY both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to detennine its eligibility for another
certificate.
DECISION MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial, secretarial, manual,
or clerical 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.).
FISCAL IMP ACT
There is no fiscal impact to the City/Agency/Authority from this action. The contract for audit
services totaled $90,000 for the year reported.
A TT ACHMENTS
Attachment I-Fiscal Year 2007/2008 Comprehensive Annual Financial Report
Attachment 2- Fiscal Year 2007/2008 Redevelopment Agency, Basic Financial Statements and
Auditor's Report
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The attachments to this report will be delivered under separate cover.
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