1 CITY COUNCIL STAFF REPORT
Meeting: January 17, 2023
Subject
Consider the Monthly Treasurer's Report for October 2022 Recommended Action
Receive the report.
Discussion
Background
California Government Code Section 41004 states:
Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.
The City's Municipal Code Section 2.24.030 Monthly Reports states:
The Treasurer shall make monthly reports which conform to the requirements of Go
vernment Code Section 41004. Said reports shall be delivered to the City Co
uncil, the City Manager and made available for review by such other persons wh
o may so request.
Lastly, the City's Municipal Code Section 2.88.100 Duties –Powers–Responsibilities lists one of the powers and function s of the Audit Committee is " to review the monthly Treasurer's report."
Per the referenced code provisions, a Treasurer's Report (report and accounting of all receipts, disbursements, a nd fund balances) shall be submitted to the Audit Committee and City Council every month. Staff have previously included accounts payable reports with the treasurers reports following recommendation by a subcommittee and approval by council. These reports are not required under government code section 41004. Treasurers Reports were emailed to City Council and Audit Committee members to comply with the reporting requirement of 41004. Audit Committee will review the accounts payable reports for November and December at their January meeting.
2 Cash vs. A ccrual Basis Accounting
Cash and accrual basis accounting differ in the timing when revenues and expenses are recognized and recorded. Cash basis accounting recognizes revenues when payment is received and expenses when payment is paid. Accrual basis accounting recognizes revenues when they are earned (but not necessarily received) and expenses when they are incurred (but not necessarily paid).
R
eceipts, disbursements, and cash balance are measured on a cash basis. The cash balance shows the total cash and investments i n the City 's accounts. The ending balance is the beginning balance plus receipts minus disbursements . Journal adjustments generally include transactions recorded in other systems and imported into New World, Council - approved budget adjustments, quarterly Cost Allocatio n Plan (CAP) charges, and quarterly interest earnings.
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venues, expenditures, and fund balance are measured on an accrual basis. As a result, the amount in fund balance does not mean the City has that much cash on hand. Instead, fund balance is the difference between assets and liabilities . The ending balance is the beginning balance plus revenues minus expenditures.
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reasurer's Report
The report provides an update on the City's cash and fund balances for October 2022. The report is as of November 21, 2022.
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eceipts, Disbursements, and Cash Balance
The City's General Fund ending cash and investment balance was $ 103.9 million, a decrease of $1.6 million from the prior month. Receipts were $5.9 million, disbursements were $(7.6) million, and journal adjustments were $(45,493) for the month.
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he City's total ending cash and investment balance was $213.7 million, a decrease of $3.4 million from the prior month . Receipts were $ 6.3 m illion, disbursements were $( 10.1) million, and journal adjustments were $0.4 million for the month.
I
n October 2022, the journal adjustments included the following:
• Parks and Recreation transactions imported from ActiveNet into New World • Workers’ Compensation transactions
• Quarterly interest transactions for LAIF
F
und Balance/Net Position
The City's General Fund ending fund balance was $ 89.1 million, decreasing by $ 1.7 million from the prior month due to revenues of $3. 2 million and expenditures of $ 4.9 million.
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he City's total ending fund balance was $195.5 million, decreasing by $3.6 million from the prior month due to revenues of $4.0 million and expenditures of $7.6 million.
3 Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
_____________________________________
Prepared by: __________________
Thomas Leung
Budget Manager
Reviewed by: __________________
Kristina Alfaro
Director of Administrative Services
Approved for Submission by: __________________
Pamela Wu
City Manager
Attachments:
A – Report of City-wide Receipts, Disbursements, and Cash Balances October 2022 B –
Report of City-wid
e Fund Balances/Net Position October 2022