2014 Annual Comprehensive Financial Report

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City of Louisville Notes to the Financial Statements December 31, 2014 Note 2: Stewardship, compliance, and accountability (continued) A. Budcgetary information (continued) On or before the first day of September, each department director submits to the City Manager the department's proposed budget for the next fiscal year. On or before the third Tuesday in October, the City Manager submits to the Council the proposed budget for the next fiscal year. Within fourteen days after receiving the proposed budget from the City Manager, City Council sets the date and time for at least one public hearing on the proposed budget. On or before December 15, the City Council adopts the budget by resolution. Encumbrances represent commitments related to unperformed contracts for goods and services. Encumbrance accounting — under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation — is utilized in all funds. Encumbrances outstanding at year-end are continued into the subsequent year. Encumbrances at year-end do not constitute expenditures or liabilities because the commitments will be re -appropriated during the subsequent year. B. Excess of expenditures over appropriations For the year ended December 31, 2014, total expenditures exceeded appropriations in the Urban Revitalization District Fund by $117,820 and the Solid Waste & Recycling Fund by $80,823. This may be a violation of Colorado State Statutes Note 3: Deposits and investments A. Cash and deposits As of December 31, 2014 the summary of the carrying values of deposits and investments is as follows: Petty Cash Deposits Investments (at fair value) $ 2,845 3,732,880 40, 563, 715 $ 44,299,440 The Colorado Public Deposit Protection Act ("PDPA") requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by State regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the aggregate uninsured deposits. The City has $641,840 of FDIC - insured deposits and $4,594,484 of collateralized deposits under PDPA as of December 31, 2014. 49