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ADMINISTRATIVE
COMMITTEE |
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1. |
REVIEW AND ACCEPT
INDEPENDENT AUDIT REPORT FOR FISCAL YEAR 2004-05 |
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Meeting
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February 15, 2006 |
Budgeted: |
N/A |
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From: |
David A.
Berger, |
Program/ |
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General
Manager |
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Prepared
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Cost Estimate: |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on February 15, 2006 and recommended ___________________. |
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CEQA Compliance: N/A |
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SUMMARY: Drafts of the Financial Statements and Independent Auditors’ Report (Exhibit 1-A), Board Disclosure Letter (Exhibit 1-B), and Management Letter (Exhibit 1-C) for the fiscal year ending June 30, 2005 have been received from the District’s external auditors, Hayashi & Wayland.
The auditors have issued a clean opinion on the financial statements. The statements show that revenues for the year totaled $3,935,593 and expenditures were $4,266,594, resulting in a deficit (use of reserves) of $331,001. This actual use of reserves compares to the budgeted amount of $930,000 which resulted in an additional carryover of $598,999 to fiscal year 2005-06 (see pages 8 and 9 of the audit statement for a more detailed breakdown of this $930,000 amount). Of that amount, $598,569 is a component of the general operating reserve. The updated amounts will be reflected in the mid-year budget adjustment document. This latest additional reserve carryover compares to the additional reserve carryover of $511,532 from fiscal year 2003-04. While that amount was incorporated into the mid-year budget review report for 2004-05, it was inadvertently not included in the projected reserve carryover to the 2005-06 adopted budget. Therefore, both of these amounts will have an unexpected, positive effect on the projected beginning reserve carryover to the 2006-07 budget.
The Management Letter addresses the positive resolution of three items recommended in the letter for the year ending June 30, 2004. No current year recommendations are noted.
The Administrative Committee reviewed the draft report and the related letters on February 15, 2006 with the District's auditors, Hayashi and Wayland. As a result of that review the committee recommended _____________________.
Following approval by the Board,
the report will be finalized and provided to
RECOMMENDATION: District staff recommends that the Board review and accept the Financial Statements and Independent Auditors’ Report for the year ending June 30, 2005. The Administrative Committee reviewed draft report February 15, 2006 and voted _ to _ to recommend ___________.
1-B Board Disclosure Letter
1-C Management Letter
U:\staff\word\committees\Admin\2006\20060215\01\item1.doc