City Council Minutes 2015 08 04 - Laserfiche WebLink

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City Council Meeting Minutes August 4, 2015 Page 4 of 11 Comprehensive Annual Financial Report, the opinion letter, and responded to the Council's questions. David DeZutter, Eide Bailly LLP, explained they are the independent auditors appointed by the Council to audit the City's books. He thanked Finance Director Watson and his staff for preparing the CAFR and noted Louisville is one of their most well prepared financial clients. In 2015, the auditors conducted a financial statement audit and issued an unmodified opinion ( "clean" opinion) of the City's 2014 financial statements. This is an official statement of the financial position and the operations of the City for 2014. The City's financial position remained strong. The General Fund revenue and expenditures combined for a positive $2 Million variance, which means revenues were above the budget and expenditures were below the budget. At the end of 2014 there was $3.6 Million in the General Fund balance. Council budgeted to move money to the Capital Projects Budget, which brought the fund down. The results of their review of the operation controls did not identify any material weaknesses or significant deficiencies in the City's accounting internal control structure. In 2014 the City received over $500,000 from federal financial assistance most of it from FEMA related to the golf course construction. This required a separate A -133 audit to ensure those dollars were received and dispersed according to federal guidelines. The result of the audit revealed there was not any compliance or internal control findings related to the expenditures of those federal funds. Mr. DeZutter reported the CAFR was presented to the Finance Committee in June. He noted there were not any changes made, or any disagreements with staff over any accounting issues or presentations. He stated the CAFR contains high level financials, detailed financials and footnotes. There is also a statistical report, which provides ten years of information for comparative purposes. The compliance section is in the last part of the CAFR, which contains the unmodified (clean) opinions. COUNCIL COMMENTS Council member Keany stated the Finance Committee reviewed the report and met with Mr. DeZutter and Finance Director Watson. They asked a few questions, but had no concerns. The Finance Committee recommended the City Council accept the report. Council member Stolzmann recommended members of the public may be interested in the statistical section, which has a lot of information. She stated for the next budget cycle, the Council would benefit by reviewing the statistical section and in particular, the tax revenue by source chart. It clarifies where the City's revenue comes from. Mayor Muckle thanked Finance Director Watson and his staff for their work on the CAFR.