01-05-1993 - Comprehensive Annual Financial Report (CAFR)City of Wert Covina
Memorandum
TO City Council and City Manager
AGENDA
FROM : Finance Department
ITEM NO.-1
SUBJECT: COMPREHENSIVE ANNUAL DATE 1-5-93.
FINANCIAL REPORT (CAFR)
SUMMARY:
The. general purpose financial statements of the City of West Covina
have been prepared by the City' s Finance Department and audited by the
City's independent auditors. These financial statements and the
auditor's unqualified opinion are included in the City's CAFR.
BACKGROUND:
The Comprehensive Annual Financial Report for the year ended June 30,
1992, was prepared in accordance with generally accepted accounting
principles established by the Governmental Accounting Standards Board
and guidelines recommended by the. Governmental Finance Officers
Association of the United States and Canada. Thus, the report consist
of an introductory. section which familiarizes readers with the
organization and operations of the.City; a financial section, which
includes the unqualified opinion of our independent auditors, Moreland
and Associates, the general purpose financial statements, and required
supplementary information; and a statistical section, which includes
financial information; and a statistical section,. which includes
financial data that presents historical trends and other information
about the City.
Governmental Accounting Standards require. that the financial
information of all organizations that the City exercise significant
"oversight responsibility" be included in the City's general purpose
financial statements. Accordingly, the CAFR must include the
financial information of the City, the Redevelopment Agency of the
City of West Covina, the Parking Authority of the City of West Covina
and the City's share of the Los Angeles. County -West Covina Civic
Center Authority. Although these are legally separate entities, these
governmental organizations are to,a certain degree_ dependent on the
City or directly controlled by the City -Council.
ANALYSIS:
The City's financial position at June 30, 1992, as characterized by
its balance sheet, can be summarized as strong. Total assets
increased from $403.8 million to $411.3 million. Liabilities
increased by $1.3 million and municipal equity, has increased from
$181.4.million to $187.6 million.
Total revenues during the 1992 fiscal year for governmental,
proprietary and fiduciary fund types decreased,by $1,401,855 from.the
previous year. Sales tax at $10,400,453 continues to be the City's
largest single source of revenue with an increase of $987,142 (10.5%)
from the prior year. Use of money and property decreased $3,168,754
(32.8%) during fiscal year 1992 as a result of falling interest rates.
Other taxes increased $1.7 million mainly, due to improved sales tax
revenues. Miscellaneous revenues were lower in 1991-92 mostly because
the previous year reflected the return $0.8 million of F.A.U. monies
,to the Prop. "A" fund and a $0.5 million developer contribution.
Total expenditures during the 1992 fiscal year for governmental,
proprietary and fiduciary fund types decreased by $3,046,812. Capital
Projects expenditures declined $5.7 million from the prior year: when
there were significant land purchases for the Fashion Plaza Expansion
project. Internal Service Fund expenditures increased $1.5 million
due to higher self insurance costs for general liability and worker's
compensation.
City Council.
and City Manager
-2- January 5, 1993
FISCAL IMPACT:
Accepting this report has no direct fiscal impact on the City.
RECOMMENDATION:
It is recommended that the City Council receive and file the
Comprehensive Annual Financial Report of the City of West Covina.
Ba it Panas
City Controller
REVIEWED AND APPROVED:
Abrah W. Kon' sky
'OKFinaence Director