TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:January 14, 2025
SUBJECT: Financial Reports for Fiscal Year Ended June 30, 2024 RECOMMENDATION:
1. Receive and file financial reports.
2. Find that this action is not a project as defined under section 15378(b)(5) of the California Environmental Quality Act Guidelines.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. The financial impact consists of significant staff time to compile, prepare, and review financial reports, and approximately $73,780 in professional services for the City’s independent external auditors, which are included in the Adopted FY 2024-25 General Fund Budget.
BACKGROUND:
Comprehensive financial reporting is a recommended practice and, in some cases, required by federal and/or state law. The Finance Department, with the assistance of other departments, annually prepares several financial reports covering the past fiscal year, which begins on July 1 and ends on June 30. For Fiscal Year ended June 30, 2024, the financial reports prepared include:
1. City of Thousand Oaks Annual Comprehensive Financial Report (ACFR) and Transmittal Letter (Attachment #1)
2. Conejo Open Space Conservation Agency (COSCA) Annual Financial Report and Transmittal Letter (Attachment #2)
3. Single Audit Report (Attachment #3)
The City’s external auditors, Rogers, Anderson, Malody and Scott, LLP (RAMS), performed an interim audit in May 2024 and a final audit in October 2024 on the City’s ACFR and COSCA’s Annual Financial Report. City Council also received
Financial Reports for Fiscal Year Ended June 30, 2024
January 14, 2025
the Management Letter and Audit Committee Letter which are prepared by the City’s external auditors (Attachment #4) as well as the City’s Appropriations Limit Worksheet (Gann Limit Calculation) (Attachment #5).
DISCUSSION/ANALYSIS:
Financial Reports
Finance Department Accounting staff are responsible for accurately and timely accounting for all financial transactions involved in operating the City in accordance with Governmental Accounting Standards Board (GASB) requirements. This includes, but is not limited to, payroll, accounts payable, accounts receivable, capital assets, investments, and debt. For a city of approximately 123,000 residents and a FY 2023-24 Adopted Budget in the amount of $270.5 million, this equates to thousands of transactions annually. In order to make sound financial decisions, accurate and timely reporting of these transactions is necessary. The City’s external auditor offers assurance to the reader that the ACFR is fairly presented and complies with GASB requirements.
On December 23, 2024, the Finance Department delivered the financial reports for the Fiscal Year ended June 30, 2024, to City Council. The ACFR Report is also available on the City’s website at www.toaks.gov/financialinfo.
Finance/Audit Committee
The American Institute of Certified Public Accountant’s Statement on Auditing Standards 114 requires the auditor to communicate certain significant matters related to the audit to those charged with governance. The Finance/Audit Committee (Committee) met with RAMS on January 14, 2025. RAMS presented the Management and Audit Committee Letters, provided a summary of the results of the audit, and answered questions from the Committee.
Implementation of GASB Statements
Annually, GASB provides accounting guidance for governmental agencies with which the City is required to comply. For FY 2023-24, the City implemented GASB Statement No. 100, Accounting Changes and Error Corrections. This Statement is to enhance accounting and financial reporting requirements for accounting changes in error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.
Financial Reports for Fiscal Year Ended June 30, 2024
January 14, 2025
Summary of FY 2023-24 Financial Results
GASB requires governmental agencies to utilize fund basis accounting.
Governmental funds are accounted for utilizing a modified accrual basis of accounting and enterprise funds are accounted for utilizing a full accrual basis of accounting. Greater explanation of the measurement focus, basis of accounting, and financial statement presentation is included in the ACFR on pages 47-48.
General Fund – The General Fund is the City’s major discretionary fund in which revenues are not restricted to a specific purpose or function. In FY 2023-24, total revenues, including other financing sources, were $123.7 million, while total expenditures, including other financing uses, were $99.8 million. This equates to an increase in General Fund fund balance of $23.8 million. Additionally, the beginning fund balance was restated by $1.8 million due to a correction of a prior year error. Consequently, the revised beginning fund balance for the fiscal year was $183.0 million, leading to an ending fund balance of $206.8 million.
The table below compares FY 2023-24 General Fund revenues and other financing sources with the prior year. For more detailed information, including variance explanations, please refer to pages 14-17 of the ACFR.
Comparison of General Fund Revenues and Other Financing Sources Fiscal Year 2023-24 Fiscal Year 2022-23
Variance Over/(Under) Last Year
1 Property tax 16,702,869$ 15,491,431$ 1,211,438$ 7.8% 13.5% 2 Property tax - in lieu of VLF 15,578,623 14,748,603 830,020 5.6% 12.6% 3 Sales tax 34,892,857 37,775,337 (2,882,480) -7.6% 28.2% 4 Transient occupancy tax 4,930,078 5,085,194 (155,116) -3.1% 4.0% 5 Franchise tax 7,531,986 7,521,634 10,352 0.1% 6.1%
6 Property transfer tac 1,066,904 1,017,343 49,561 4.9% 0.9% 7 Business tax 2,331,287 2,230,036 101,251 4.5% 1.9%
8 Other tax 809,565 612,334 197,231 32.2% 0.7%
9 Licenses and permits 5,940,634 6,145,538 (204,904) -3.3% 4.8% 10Fines and forfeitures 984,651 1,120,553 (135,902) -12.1% 0.8% 11Use of money & property 13,217,425 2,632,964 10,584,461 402.0% 10.8% 12Charges for services 8,366,403 8,724,801 (358,398) -4.1% 6.7% 13Intergovenmental revenue 7,268,825 817,526 6,451,299 789.1% 5.9% 14Other revenue * 2,077,250 3,474,640 (1,397,390) -40.2% 1.7% 15Other financing sources 1,967,652 2,215,291 (247,639) -11.2% 1.6% Total Revenues 123,667,009$ 109,613,225$ 14,053,784$ 12.8% 100.0% * Refer to pages 99-100 for explanation of prior year beginning balance restatement. % of Total
% of Increase/ (Decrease) Over Prior Year
Financial Reports for Fiscal Year Ended June 30, 2024
January 14, 2025
The table below compares FY 2023-24 General Fund expenditures with the prior fiscal year. For more detailed information, including variance explanations, please refer to pages 16-17 of the ACFR.
Comparison of General Fund Expenditures and Other Financing Uses FY 2023-24 FY 2022-23
Variance Increase/ (Decrease) from Prior FY
1General government $ 26,441,506 $ 25,025,519 1,415,987$ 5.7% 26.5% 2Public safety 33,539,450 32,476,743 1,062,707 3.3% 33.6% 3Transportation 12,718,157 11,925,689 792,468 6.6% 12.7% 4Community development 16,294,186 12,263,983 4,030,203 32.9% 16.3% 5Culture and leisure 2,045,865 1,915,038 130,827 6.8% 2.1% 6Capital outlay 7,264,307 2,340,540 4,923,767 210.4% 7.3% 7Other financing sources 1,540,348 6,820,025 (5,279,677) -77.4% 1.5% Total Expenditures 99,843,819$ 92,767,537$ 7,076,282$ 7.6% 100.0% % of Total
% of Increase/ (Decrease) from Prior FY
The City also accounts for other major funds, including the Library Fund, State Gas Tax Fund, Capital Improvements Fund, Thousand Oaks Housing Successor Fund, as well as non-major governmental funds. Highlights for these funds and explanation of variances can be found on pages 17-18 of the ACFR.
Enterprise Funds – Revenues, expenses, transfers out, and changes in net position for each enterprise fund are summarized below.
Fund Revenues Expenses Transfers Out
Changes in Net
Position
1 Water 30,318,474$ 28,027,003$ -$ 2,291,471$ 2 Wastewater 25,889,355 26,304,135 - (414,780)
3 Golf course 8,367,903 8,014,938 39,904 313,061
4 Transportation 8,466,790 8,804,171 - (337,381)
5 Solid Waste 3,256,391 1,660,963 250,000 1,345,428
6 Theatres 6,017,673 5,477,539 - 540,134
Highlights for enterprise funds can be found on pages 12-13, page 18, and pages 38-43 of the ACFR.
These annual reports focus on the financial condition of the City as of June 30, 2024; however, staff continues to closely monitor the economy and City revenues.
Appropriate and timely updates will be provided as necessary. The City is financially strong with continued proactive and prudent financial leadership.
Financial Reports for Fiscal Year Ended June 30, 2024
January 14, 2025
The City has been recognized by the Government Finance Officers Association for the past 36 years for Excellence in Financial Reporting for preparation of its ACFR. The achievement of this award is a testament to the hard work and dedication of the Accounting staff.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Elisa Quezada-Magaña, Accounting Manager
Attachments:
Attachment #1 – ACFR Transmittal Letter
Attachment #2 – COSCA Transmittal Letter
Attachment #3 – Single Audit Transmittal Letter
Attachment #4 – City of Thousand Oaks Auditor’s Management Letter and Auditor’s Committee Letter
Attachment #5 – Appropriations Limit Transmittal Letter FIN:330-50\eqm\H:\COMMON\Council\2025\Accounting\011425 Financial Reports FY 2023-24 staff report.docx