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Home My WebLink AboutAgenda Bill Presenation 03/07/2011Presentation to the City Council March 7, 2011 Presented by: - Kenneth He Pun, CPA CL Caporicci X-Larson, Inc. A Subsidtarp of Alarcon LLP CerttJied Public Acgxnucinas 1 0 40 .Financtal'Statrem'- ent's mzfl-�It9 WE W fi A UX! C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants OAII frL Scope of Work Performed as Audited City's Financial Statements � Reviewed City's internal control policies and procedures Audited compliance requirements of major Federal Grant Programs, .laws and regulations. C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants et ixmfieuezwttcnmuuuuus 3 F. ,,Management- a * Present the Financial Statements in conformity with generally accepted accounting principles (GAAP)-' * Adopt sound accounting policies ■ Establish and maintain appropriate internal controls over financial reporting and compliance. °.Preventand d- - aA C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants it t erzoea rvouc na mniants 57 [A Obtain reasonable assurance that the financial statements are free of material misstatement . is Examine, on a test basis, evidence supporting amounts and disclosures * Assess accounting. rinciples, used; estimates., and evaluate the- overa financial nancial statem . ent presentation * Review internal control policies and procedures Express- an opinion on the financial statements C&L Capqricci & Larson, Inc. A SYb#diary of Marcum LLP Certified Public Accountants C&L Audit Ap-"roach C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants �i �engieunwucncnxuuurru A C&L Aud*t Approach V, Assessed the Accounting Principles Evaluated the Internal Controls .over Financial Reporting and Compliance Validated the Significant Account Balances to Supporting Documents Obtained Information Directly from Attorneys; Banks, Fiscal Agents and Others Reviewed the basis of Management's Estimates Reviewed the Financial Statements for Adherence to `OAAP Performed Year -over -Year Comparisons of Specific Account Balances C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP 7 Certified Public Accountants eCentjit'" MVIuncani W7113s C&L Caporicci & Larson, Inc. A Subsidiary ofMarcum LLP Certified Public Accountants u t eng1ty raatu tatnuuanrs Financial statements are fairly presented in all material respects Significant accounting policies have been consistently applied Estimates are reasonable Disclosures are properly reflected in the financial statements C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LL!' Certtfied Public Accountants s i LeruJera t-wou Ammmams Other.Results of the Audit Pi. No disagreements with. management No material errors or irregularities discovered . No fraudulent or inappropriate activities discovered CAI., Caporicci &&arson. Inc. A'Subsidiary qfMarcum LLP Certified Public Accountants et �,ert�runtatu'nccuuntuttta 10 -t I inancial Statu,-mments ' " 11 ■ Financial Section: m Independent Auditors' Report m Management's Discussion and Analysis (Unaudited). n Basic Financial Statements C&L Caporicci& Larson, Inc. A Subsidiary of Marcum UP Certified Public Accountants at txriqteamate Acco#miwus 12 al State m,ent Sections Statistical Section, (Unaudited) ♦ Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Statistics Operating Information C&L Caporicci & Larson, Inc. A ,Subsidiary of Marcum LLP Certified Pub/ic Accountarus ei Lernyeearuoac unnUuanu 13 City of Petaluma Summary Statements of Net Assets (Amounts in'Thousands of Dollars) As of June 30, Assets Current and other assets Nori-Current assets Total assets , Liabilities Current liabilities Non -Current liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted Unrestricted Total_ C& Caporicci & Larson, Inc. A ,Subsidiary of Marcum LLP Certified Public Accountants e+ -enywa n+nacAceutuuants 2010 2009 150,652 $ 153,946 437,764 436,795 588/416 590,741 41,178 213,020 254,198 202,470 75,875 55;873 $ 334,218 18,049 240,690 258,739' 196,783 . 82,176 53,Q43 332,002, 14 iPetaluma Summary Statements of Activities and Changes in Net Assets (Amounts in Thousands of Dollars) For the years ended June 30, 2010 2009 Revenues Program revenues $ 50,189 $ 51,523 General revenues: Taxes 44,8.66 47;802 Other revenues 3,350 . 3,641 Total Revenues 98,405 102,966 Expenses Expenses, net 96,188 89,842 . Total Expenses 96,188 8.91842, Revenue over (under) expenses 2,217 13,124 Change in Net. Assets $ 2,217 $=13,124 C&L Caporicci & Larson, Inc. A Subsidiary of Maroon LLP Ccwt6ed Public Accountants If Cerujcea nroncnaUUMU S 15 Selected City Statistics C&L Caporicci & Larson, Inc. A Suhsidiury of Murcwn LLP Certified Public Accountants Oi i,rrty�run�oacncau�ntmrts 16 City"s Net Assets .Invested in Capital Assets., Net of Related Debt Restricted Net Assets Unrestricted Total Net .Assets C&L Capor'icci & Larson, Inc. ASubsidiary of Marc"" LLP CertifiedPublicAccountants I J Lerlylea ruvac'Icammiams $ 202,4701000 75,8751000 55.,873;000 3314,218;000 q1111P1 $ 196,783,000 �8211761000 5310431000 $ 332,00,21000 17 777E iota I Taxes Ratio L Caporicci & Larson, Inc. ASubsidiaty of Marcum LLP Certified Public Accountants $ 4 6, 0,00.1 0100 4418-1651000 .103% L 38 1,3181111 $ .4718,02lo1ft W-1 4 ene -'s G' ral Fund Ci iyka ty iotal Fu,nd',B'a',l,a,nc.. Unreserved, kindesignated Fund Bal-ance Total Expenditures Ratio of U-nrestricted Fund 'Balance toTotal Expenditures C 81 Caooricci & Larson, Inc. A Subsidiary of Marcum LLP Certified Pubic Accountants $ 11808,000 $ 21039100.0 $ 927,00;0 $ 11732,000 $ 33.149610'00 $ 351094,000 3% 5% 19 ,$ I: ttL ; C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants ®t cxmpeanwICACCOWIMIUs 20 Unfunded Liabilities C&-L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants A txrryteumotic.,waxuttams 2010 $ (91049,0,00) 2009 $ (61322,000) 21 Unfunded Liabilities CL Caporicci & Larson, Inc. A Subsidiary ofMarcum LLP Certified Public Accountants ei LenywanfOlICACCOlUltallIS 2010 2009 $ (28,343,000} $ (22,157,000) 22 ♦ Other Postemployment Benefits - Schedule of Funding Progress Unfunded Liabilities C&-L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified I Vbiic Accountants 21 yentJreammicnccountams 2010 (7,002,000) 2009 $ (61990,000) 23 New Pronouncements . &L Caporicci & Larson, Inc. A Subsidiary ofMarcum.LLP Certified Public Accountants � � i.erujieu ntoertturtuuumus 24 SAS No. 115., Communicating Internal Control Related Matters Identified in an Audit SAS No. 116, Interim Financial Information SAS No. 117, Com.pliance Audits SASNo, 118, Other -Information, in Documents. Containing Audited Financiat'Statements SAS No. 119, Supplementary Information in Relation to the Financial Statements as a Whole SAS No. 120, Required Sample Supplementary Information. C&L Caporicci & Larson, Inc. ASubsidiary ofAfarcuin UP Certified Public Accountants pi Lerloea "fvf?CACO)1uU"jS 25 * Four step Due Process * Exposure Draft in early 2011 * Some key Discussion, Points-: U Infunded portion of pension obligation is a liabiJity Use single actuarial method, entry age actuarial cost method Amprtization of, prior service costs and plan changes should be over service lives of emp1l0yees Considering "smoothing" methodology when unusualmarked movements occur Actuarial valuation at least biennially Caporicci & Larson, Inc. ASubsidiary of Marcum M-1 26 Cert$ed Public Accountants JASB Pronouncement In Process menda, tons for consideration C&L recom " t I Actuarial, -valuation or actuarial updates be provided on a,n an-nu,al ba'sIs Auditors may need to hire. Independent Actuaries State Retirement Systems, like CalPERS,, must provide current', -actuarial data GASB update its OPE.B.Standards, concurrently with its Pension Standards. C&L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified 1"t;bfic Accountants 27 ".o-wing C&L to Provide Audit Services C 0 if, iry of Petaluma Caporicci & Larson, Inc. ASubsidiary of Marcum LLP Certified Public Accountants 28