Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: 9A
Yountville Town Council Staff Report
DATE: December 3, 2024
TO: Mayor and Town Council
FROM: Celia King, Administrative Services Director
PREPARED BY: Celia King, Administrative Services Director
RECOMMENDATION
Receive the presentation of the Annual Comprehensive Financial Report (ACFR) for fiscal year ended June 30, 2024.
DISCUSSION/BACKGROUND
The Town has undergone the annual audit for Fiscal Year 2023/2024 and issued its Annual Comprehensive Financial Report (ACFR) for fiscal year ended June 30, 2024. The Town publishes the ACFR to fully disclose its financial information and to comply with state and federal requirements and bond covenants.
The ACFR for fiscal year ended June 30, 2024, represents the Town’s financial status as of that moment in time.
This report differs from the annual budget because instead of showing estimated numbers, it reflects the actual revenue and expenditure activity that occurred during the fiscal year, and the effects that activity had on fund balances.
The Town’s fiscal year begins July 1 and ends June 30 of each year. The financial audit and the preparation of the financial statements take place over several months, beginning just after the end of the fiscal year and continuing through the time the books are closed and the ACFR is published. Staff coordinate with the auditor to ensure that the work is completed accurately and timely.
The Town has contracted with Chavan & Associates to perform the annual independent audit of its financial statements. This firm’s expertise, efficiency, and communication with finance staff have allowed us to complete the audit and ACFR document by mid-November. The ACFR will be submitted to the Government Finance Officers Association (GFOA) for consideration of the annual Certificate of Achievement for Excellence in Financial Reporting by the end of December 2024.
ACFR OVERVIEW
The ACFR is comprised of four sections:
Introductory Section: provides general information on the government’s structure and the letter of transmittal.
Financial Section: contains the independent auditor’s report, management discussion and analysis, the basic financial statements, the fund financial statements and the notes to the financial statements.
The independent auditor’s report describes the scope of the audit and is where the auditor gives his opinion on the financial statements.
Management’s discussion and analysis provides a comprehensive overview and analysis of the financial statements, the Town’s financial position and the major activities that took place during the year.
The Governmental Accounting Standards Board (GASB) requires governmental entities to prepare financial statements using two different perspectives:
Government-Wide Financial Statements – The government-wide statements are prepared using a full accrual basis (like private sector) and are presented with totals for government type activities and business type activities. The Town’s business type activities are the water and wastewater utility enterprises; all other activities are reported as governmental activities, except for fiduciary funds. The government-wide statements present the overall financial picture of the Town’s net position and activities.
Fund Financial Statements – The fund financial statements are presented using the basis on which the Town keeps its accounting records and prepares its annual operating budget. Modified accrual accounting is used for all governmental funds and full accrual accounting is used for proprietary funds. The fund financial statements presented for the Town’s governmental funds are the balance sheet and the statement of revenues, expenditures, and changes in fund balances. The Town’s proprietary fund statements (water and wastewater enterprise funds) include the statement of net position, statement of revenues, expenses and changes in net position, and the statement of cash flows.
The notes to the financial statements provide detailed information to support the balances reported and disclose other relevant information regarding the Town’s financial position.
Supplemental Information Sections: include budgetary comparison schedules, schedule of funding progress for OPEB, combining statements and schedules, comparative enterprise funds statements and capital asset schedule.
Statistical Section: consists of four subsections providing financial trends information, revenue capacity information, debt capacity information, and demographic and economic history/trends and variables.
Sheldon Chavan, CPA, Managing Partner of Chavan & Associates will present an overview of the Annual Comprehensive Financial Report for fiscal year ended June 30, 2024, with a focus on newly implemented Government Accounting Standards Board (GASB) accounting and financial reporting statement number 87 (Leases) and 96 (Subscription-Based Information Technology Arrangements) and their impacts on the General Fund.
Please click this link to view the complete ACFR document.
ENVIRONMENTAL REVIEW
Exempt per California Environmental Act (CEQA) Guideline, Section 15061(b)(3)
FISCAL IMPACT
Is there a Fiscal Impact? No
Is it Currently Budgeted? Yes
Where is it Budgeted? Finance Accounting and Auditing Budget 01-1102-4220 Is it Mandatory or Discretionary? Mandatory
Is there a Staff Resource Impact? Yes
STRATEGIC PLAN GOAL
Is item Identified in Strategic Plan? Yes
If yes, Identify Strategic Goal and Objective. Responsible Fiscal Policy: The Town maintains its fiscal health through policies designed to maximize economic opportunities, manage expenses, and ensure prudent reserves.
Briefly Explain Relationship to Strategic Plan Goal and Objective. The results of the audit and ACFR provide the Town with a report on fiscal operations and conditions as well as outline any material findings that could compromise the Town's fiscal position. The best result to receive from an audit firm is an unmodified opinion.
ATTACHMENTS
1. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024