Finance Committee
March 12, 2025

2/27/2025
1 RiversideCA.gov1
RiversideCA.gov
Finance CommitteeMarch 12, 2025Report from Outside Independent Auditors for Fiscal Year 2023-2024Finance Department RiversideCA.gov2
Government-Wide Financial Statements1
2 2/27/2025
2 RiversideCA.gov3
Asset & Deferred Outflows Liabilities & Deferred Inflows Net Position2019-20$5,021 $3,054 $1,9672020-21$4,712 $2,645 $2,0672021-22$4,983 $2,743 $2,2402022-23$5,066 $2,701 $2,3652023-24$5,255 $2,853 $2,402Government-WideStatement of Net Position(in millions) RiversideCA.gov4
Asset & DeferredOutflowsLiabilities & DeferredInflowsNet Position2019-20$2,088 $1,221 $8672020-21$1,940 $972 $9682021-22$2,110 $1,015 $1,0952022-23$2,174 $979 $1,1952023-24$2,229 $1,032 $1,197GOVERNMENTAL ACTIVITIESStatement of Net PositionGovernmental Activities and Business-Type Activities(in millions)Asset & DeferredOutflowsLiabilities & DeferredInflowsNet Position2019-20$2,933 $1,833 $1,1002020-21$2,772 $1,673 $1,0992021-22$2,873 $1,728 $1,1452022-23$2,892 $1,722 $1,1702023-24$3,026 $1,821 $1,205BUSINESS-TYPE ACTIVITIES3 4 2/27/2025
3 RiversideCA.gov5
GeneralRevenuesCharges forServicesOperatingGrants &ContributionsCapitalGrants &ContributionsTransfers Total2019-20$262 $38 $22 $20 $35 $3772020-21$276 $34 $64 $28 $35 $4372021-22$298 $41 $50 $39 $35 $4632022-23$333 $43 $59 $34 $25 $4942023-24$342 $48 $50 $31 $44 $515REVENUESStatement of ActivitiesGovernmental Activities(in millions)GeneralGovernmentPublicSafetyHighways &StreetsCulture &RecreationInterest &FiscalChargesTotal2019-20$64 $222 $47 $37 $13 $3832020-21$98 $219 $42 $38 $19 $4162021-22$67 $170 $41 $39 $20 $3372022-23$34 $240 $51 $51 $18 $3942023-24$108 $276 $55 $57 $17 $513EXPENSES RiversideCA.gov6
Fund Financial Statements5
6 2/27/2025
4 RiversideCA.gov7
Assets Liabilities & Deferred Inflows Net Position2019-20$173 $39 $1342020-21$202 $42 $1602021-22$281 $54 $2272022-23$307 $54 $2532023-24$346 $58 $288Balance SheetGeneral Fund *(in millions)* Includes Measure Z RiversideCA.gov8
Sales Tax Property Tax Other Taxes Charges for Services All Other Revenue Total2019-20$129 $71 $40 $15 $23 $2782020-21$150 $74 $42 $13 $22 $3012021-22$174 $78 $47 $15 $15 $3292022-23$178 $83 $50 $16 $25 $3522023-24$174 $89 $48 $14 $33 $358Statement of Revenues, Expenditures, and Changes in Fund BalanceGeneral Fund Revenues *(in millions)* Includes Measure Z 7 8
2/27/2025
5 RiversideCA.gov9
Statement of Revenues, Expenditures, and Changes in Fund BalanceGeneral Fund Expenditures *(in millions)* Includes Measure Z RiversideCA.gov10
GENERAL FUND & MEASURE Z FUND RESERVESMeasure Z FundGeneral Fund$5 M20% ($65.5 M)Beginning Reserve Balance $5 M20% ($72.2 M)Ending Reserve Balance – 06/30/2024aaMet Policy RequirementsN/A$60.2 MRestricted for Unfunded Accrued LiabilityN/A$60.8 MCommitted for Other Purposes$52.1M$0 MUnreserved Fund Balance9 10 2/27/2025
6 RiversideCA.gov11
Assets & Deferred Ouflows Liabilities & Deferred Inflows Net PositionElectric$1,414 $905 $509Water$758 $418 $340Sewer$655 $387 $268Refuse$35 $22 $13Proprietary FundsStatement of Net PositionElectric, Water, Sewer, and Refuse Funds(in millions) RiversideCA.gov12
RIVERSIDE PUBLIC UTILITIESUNDESIGNATED CASH RESERVESWaterElectric$39 M$138 MBeginning Reserve Balance – 07/01/2023$43 M$136 MEnding Reserve Balance – 06/30/2024$25 M$35 MAvailable Line of Credit (LOC)1$51 M$167 MMinimum Reserve Level – 06/30/2024$77 M$260 MMaximum Reserve Level – 06/30/2024aaMet Policy Requirements21The LOC provides flexibility and operating liquidity by enabling the Electric and Water Funds to reduce cash levels while maintaining compliancewith the RPU Cash Reserve Policy.2Electric and Water Fund’s undesignated reserve balances, combined with the respective LOC, are in compliance with RPU Cash Reserve Policyat 06/30/2024. The reserves are above target minimum, which is consistent with projections provided during the biennial budget and rate planproposal processes. 11 12
2/27/2025
7 RiversideCA.gov13
Popular Annual Financial Report (PAFR)
RiversideCA.gov14
•7th PAFR Award from GFOA for FY 2022-23•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•Published in Spanish and EnglishPOPULAR ANNUAL FINANCIAL REPORT (PAFR)13 14 2/27/2025
8 RiversideCA.gov15
External audit
RiversideCA.gov16
•Unmodified (clean) opinion•Governance Letter and Reports on Internal Controls–General Fund Revenue Recognition: Enhanced procedures to align recording of revenues based on 60-day availability policy–Water Fund Lease Receivables: Strengthened GASB 87 lease implementation with additional staff in FY 2023/24 –ARPA Reporting (Single Audit): Collaborated with the U.S. Department of Treasury to clarify and comply with reporting requirements for revenue replacement category Independent Auditors’ Report Highlights15 16 2/27/2025
9 RiversideCA.gov17
Future Item
RiversideCA.gov18
Governmental Accounting Standards Board (GASB) 101 – Compensated Absences―Changes in the way we account for paid leave earned by employees for time off, such as vacation leave, sick leave, holiday leave, or other types of paid off time.―Will be implemented for the June 23, 2025, financial statements.Future Item17 18 2/27/2025
10 RiversideCA.gov19
STRATEGIC PLAN ALIGNMENTHigh Performing Government –Enhance communication andcollaboration with community members, to improve transparency, buildpublic trust, and encourage shared decision-making.Cross-Cutting ThreadsCommunity TrustEquityFiscal ResponsibilityInnovationSustainability & Resiliency RiversideCA.gov20
That the Finance Committee receive, provide inputon, and forward to the City Council the annualfinancial audit reports for Fiscal Year 2023-2024.RECOMMENDATION19 20