TITLE
Recommendation to receive and file the Comprehensive Annual Financial Report (CAFR) and Separately Issued Financial Statements for the Fiscal Year Ended September 30, 2014. (Citywide)
DISCUSSION
Comprehensive Annual Financial Report
The Comprehensive Annual Financial Report (CAFR), prepared by the Department of Financial Management, contains audited financial information on all City funds for the fiscal year ended September 30, 2014 (FY 14), in accordance with generally accepted accounting principles. In accordance with Section 302(e) of the City Charter, the CAFR is submitted annually to the City Council. It is important to note that the CAFR is designed to report historical financial information only and is not designed to report financial projections or budgetary priorities.
We are pleased to report that the Independent Auditor's Report, found on page 1, concluded that the City's financial statements present fairly, in all material respects, the financial position of the City and its related cash flow and budgetary information. The audit was conducted by KPMG LLP, a certified public accounting firm, under contract with the City Auditor.
The CAFR provides Basic Financial Statements that combine all of the City's assets and liabilities in one consolidated statement. Total City net position as shown on page 23 of the CAFR, were $5.2 billion as of September 30, 2014, which included $4.6 billion for enterprise operations such as the Harbor Fund, Water Fund and Tidelands Fund. Net assets increased by $338.3 million from FY 13. Most of these funds represent the City's investment in its facilities and infrastructure or are restricted by federal or state law and are not available for discretionary use.
Separately Issued Financial Reports and Statements
In addition to the CAFR, certain City funds, joint powers authorities, and other subsidiary entities are also required to submit audited annual financial statements under separate cover, including the Harbor Department, the Water Department, and the Los Cerritos Wetlands Authority. These separate reports are enclosed and are issued annually to meet distinct legal and financial requirements. The annual financial report for the Long Beach Transit, a discretely presented component unit of the City, is also included.
Finally, as a result of the professionalism and dedication of the Department of Financial Management, the Harbor Department and the Water Department, as well as finance professionals throughout the City, the CAFR and the separately issued financial reports of the Harbor and Water Departments, have been awarded the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for their fiscal year 2013 annual financial reports. The receipt of the Certificate of Achievement attests to the City's desire to be fully accountable to our citizens. In addition, this recognition can be viewed as a positive factor by credit rating agencies.
TIMING CONSIDERATIONS
Action on this item is not time critical.
FISCAL IMPACT
There is no fiscal impact associated with this action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
STEPHEN W. HANNAH
CITY CONTROLLER
APPROVED:
PATRICK H. WEST
CITY MANAGER