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1 RiversideCA.gov
City Council
MARCH 14, 2023
Report from Outside Independent
Auditors for Fiscal Year 2021-2022
Finance Department
RiversideCA.gov
2 Government-Wide
Financial Statements
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3 Asset & Deferred Outflows Liabilities & Deferred Inflows Net Position 2017‐18 $4,427 $2,506 $1,921
2018‐19 $4,586 $2,623 $1,963
2019‐20 $5,021 $3,054 $1,967
2020‐21 $4,712 $2,645 $2,067
2021‐22 $4,983 $2,743 $2,240
Government-Wide
Statement of Net Position
(in millions)
RiversideCA.gov
4 Asset & Deferred
Outflows
Liabilities & Deferred
Inflows Net Position
2017‐18 $1,729 $888 $841
2018‐19 $1,746 $873 $873
2019‐20 $2,088 $1,221 $867
2020‐21 $1,940 $972 $968
2021‐22 $2,110 $1,015 $1,095
GOVERNMENTAL ACTIVITIES
Statement of Net Position
Governmental Activities and Business-Type Activities
(in millions)
Asset & Deferred
Outflows
Liabilities & Deferred
Inflows Net Position
2017‐18 $2,698 $1,618 $1,080
2018‐19 $2,840 $1,750 $1,090
2019‐20 $2,933 $1,833 $1,100
2020‐21 $2,772 $1,673 $1,099
2021‐22 $2,873 $1,728 $1,145
BUSINESS ‐TYPE ACTIVITIES
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5 General
Revenues
Charges for
Services
Operating
Grants &
Contributions
Capital
Grants &
Contributions
Transfers Total
2017‐18 $233 $38 $23 $18 $41 $353
2018‐19 $248 $45 $24 $28 $37 $382
2019‐20 $262 $38 $22 $20 $35 $377
2020‐21 $276 $34 $64 $28 $35 $437
2021‐22 $298 $41 $50 $39 $35 $463
REVENUES
Statement of Activities
Governmental Activities
(in millions)
General
Government
Public
Safety
Highways &
Streets
Culture &
Recreation
Interest &
Fiscal
Charges
Total
2017‐18 $45 $217 $43 $38 $12 $355
2018‐19 $51 $202 $44 $31 $10 $338
2019‐20 $64 $222 $47 $37 $13 $383
2020‐21 $98 $219 $42 $38 $19 $416
2021‐22 $67 $170 $41 $39 $20 $337
EXPENSES
RiversideCA.gov
6 Fund Financial
Statements
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7 Assets Liabilities & Deferred Inflows Net Position
2017‐18 $127 $37 $90
2018‐19 $162 $41 $121
2019‐20 $173 $39 $134
2020‐21 $202 $42 $160
2021‐22 $281 $54 $227
Balance Sheet
General Fund *
(in millions)
* Includes Measure Z
RiversideCA.gov
8 Sales Tax Property Tax Other Taxes Charges for Services All Other Revenue Total 2017‐18 $120 $64 $39 $17 $31 $271
2018‐19 $131 $70 $40 $16 $23 $280
2019‐20 $129 $71 $40 $15 $23 $278
2020‐21 $150 $74 $42 $13 $22 $301
2021‐22 $174 $78 $47 $15 $15 $329
Statement of Revenues, Expenditures, and Changes
in Fund Balance
General Fund Revenues *
(in millions)
* Includes Measure Z
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9 Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Expenditures *
(in millions)
* Includes Measure Z
RiversideCA.gov
10 GENERAL FUND & MEASURE Z FUND RESERVES
General
Fund
Measure
Z Fund
Beginning Reserve Balance 20% ($57.4 M) $5 M
Ending Reserve Balance – 06/30/2022 20% ($61.0 M) $5 M
Met Policy Requirements
Restricted for Unfunded Accrued Liability $19.4 M N/A
Committed for Other Purposes $16.8 M N/A
Unreserved Fund Balance $28.8 M $41.1 M
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11 Assets & Deferred Ouflows Liabilities & Deferred Inflows Net Position Electric $1,323 $817 $506
Water $693 $371 $322
Sewer $660 $414 $246
Refuse $27 $23 $4
Proprietary Funds
Statement of Net Position
Electric, Water, Sewer, and Refuse Funds
(in millions)
RiversideCA.gov
12 RIVERSIDE PUBLIC UTILITIES
UNDESIGNATED CASH RESERVES
Electric Water
Beginning Reserve Balance – 07/01/2021 $177 M $34 M
Ending Reserve Balance – 06/30/2022 $161 M $39 M
Available Line of Credit (LOC)
1 $ 35 M $25 M
Minimum Reserve Level – 06/30/2022 $142 M $44 M
Maximum Reserve Level – 06/30/2022 $224 M $68 M
Met Policy Requirements
2
1 LOC provides flexibility and operating liquidity similar to cash reserve allowing the Water Fund to maintain compliance with RPU Cash Reserve Policy. 2 Water Fund’s undesignated reserve balance combined with LOC in compliance with RPU Cash Reserve Policy, at 6/30/2022 is above target minimum, which is consistent with projections provided during the biennial budget and rate plan proposal processes. 11 12
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13 What’s New This
Year
RiversideCA.gov
14 • Received our 5th PAFR Award from GFOA for FY 2020-21 • Extracted information from the ACFR and PAFR is
unaudited
• Designed to be easily understandable to the general
public
• Intended for those without a background in public
finance
• Spanish Version (New!)
POPULAR ANNUAL FINANCIAL REPORT (PAFR)
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15 1. CaseWare
– New software solution to streamline financial preparation reporting process
– Prepared ACFR, Water, and Electric Financial Statements – Other Reporting Possibilities: Monthly and Quarterly Financial Statements, Successor Agency, Special Transit, PAFR, Single Audit, State Controller Reports, NTD Reports, Budget Book, and many more.
Three Major Project Implementations
RiversideCA.gov
16 2. Implementation of GASB Statement No. 87, Leases
‒ 274 GASB 87 Leases
‒ 111 Landlord Leases
‒ Lease Receivable and Deferred Inflow of Resources
‒ 163 Tenant Leases
‒ Right-to-Use Asset and Lease Liability
Three Major Project Implementations
(continued)
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17 3. LeaseQuery – Lease Management and Reporting
Software
‒ 440 total leases
‒ 274 GASB 87 leases
‒ 166 Non-GASB 87 leases
‒ 109 Airport month-to-month leases
Three Major Project Implementations
(continued)
RiversideCA.gov
18 Future Items
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19 New GASB Implementation in FY 2022-2023
― GASB Statement No. 96, Subscription-Based Information Technology Arrangements – Will utilize LeaseQuery
Request for Proposal (RFP) For Audit Services FY 2023-2024 ― 2022-2023 Final contract year with LSL
Future Items
RiversideCA.gov
20 STRATEGIC PLAN ALIGNMENT
High Performing Government - Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making.
Cross-Cutting Threads
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
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21 That the City Council:
1) Receive the annual audit reports from external
independent auditor, Lance, Soll & Lunhgard, LLP on
the City of Riverside financial results for Fiscal Year 2021-2022 as required by the Riverside City Charter;
and
2) Reappoint Lance, Soll & Lunghard, LLP to serve as the City’s independent auditor to conduct the annual
audit for Fiscal Year 2022-2023.
RECOMMENDATIONS
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