Audited Financial Results for the Fiscal Year Ended June 30, 2012 December 11, 2012 1
FY 2012 Audited Financial Statements Entity Wide Statements – GASB 34 General Fund School Operating Fund Debt – June 30, 2012 Fiscal Year 2013 – Through November 30, 2012 Cherry, Bekaert & Holland Comments 2
Gover ernmen ental Busi siness ss Total Asse ssets $ $ 3,839. 3, 839.1 $ $ 1, 1,080. 080.1 $ $ 4, 4,919. 919.2 Liabilit itie ies (1, 1,276. 276.4) 4) (218. 218.6) 6) (1, 1,495. 495.0) 0) Net et Asset ets $ $ 2, 2,562. 562.7 $ $ 861. 861.5 $ $ 3, 3,424. 424.2 CAFR Exhibit 1 3
% of BUDGET ACTUAL VARIANCE Budget LOCAL $ 793.7 $ 801.8 $ 8.1 1.0% STATE 143.8 143.8 - 0.0% FEDERAL 21.8 21.0 (0.8) -3.7% TOTAL REVENUES $ 959.3 $ 966.6 $ 7.3 0.8% CITY $ 634.4 $ 619.3 $ 15.1 2.4% SCHOOLS 371.5 355.5 16.0 2.8% TOTAL EXPENDITURES $ 1,005.9 $ 974.8 * $ 31.1 3.1% REVENUES OVER (UNDER) $ (46.6) $ (8.2) $ 38.4 FUND BALANCE - JULY 1 189.8 LESS: RESERVATIONS (77.6) UNASSIGNED FUND BALANCE - JUNE 30 $ 104.0 Fund Balance as a percent of FY 2013 Revenues is 10.7% * Reflects encumbrances of $9.5 million 4
$493.0 $481.8 $483.7 $500 $479.1 $477.1 $473.7 $452.8 $451.3 $445.1 $443.1 $423.1 $421.8 $400 Revenues $ Million $300 $200 $100 99 ₵ 89 ₵ 89 ₵ 89 ₵ 89 ₵ 89 ₵ $0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Budget Actual 5
$81.7 $79.8 $80 $73.7 $73.1 $70.3 $70.0 $67.5 $68.1 $65.9 $65.2 $64.2 $57.8 $60 Revenues $ Million $40 $20 $0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Budget Actual 6
$60 $56.0 $55.7 $54.0 $54.1 $53.4 $53.4 $53.0 $51.4 $51.7 $51.1 $50.3 $50.6 $50 Revenues $ Million $40 $30 $20 $10 $0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Budget Actual 7
$30 $25.1 $25.0 $24.4 $25 $24.1 $23.9 $23.6 $23.0 $23.0 $22.8 $22.7 $20 Revenues $ Million $15 $10 $5 $0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Budget Actual 8
$60 $53.3 $51.8 $50.9 $49.8 $49.1 $50 $48.3 $48.1 $48.7 $48.4 $48.2 $40 Revenues $ Million $30 $20 $10 $0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Budget Actual 9
Hotel el R Room oom T Tax Restaur urant M Meal T l Tax SB $1 OS 0.44% $0.1 CBD TIF $4.3 $0.5 GF 2% $5.4 TIP 1.06% $10.2 TIP 5% $14.1 GF 3.5% $33.9 TAP 0.5% TAP $4.8 1%/$1 $4.9 GF 2% CBD TIF TAP 1%/$1 TIP 5% SB $1 GF 3.5% TAP 0.5% TIP 1.06% OS 0.44% 10
10.9% 10.0% 9.0% 8.4% 7.8% 8.0% 7.5% 5.9% 5.7% 6.0% 5.2% 5.1% 4.0% 3.0% 3.8% 3.8% 2.0% 0.6% 0.0% -1.2% -1.4% -2.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Annual % Change from PY 11
$200 16.0% 12.8% 11.9% 11.1% 11.0% $150 12.0% 10.7% 10.1% 10.1% % of Budgeted GF Revenue 9.3% 8.9% $123.4 Dollars (Millions) $117.8 $113.0 $100 8.0% $10 104.0 0 $10 103.4 4 $102.1 $96.6 $92.7 $73.0 $50 4.0% $0 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unassigned GF Balance % of Budgeted GF Revenue Policy = 8-12% of Revenues 12
Budget Actual Variance REVENUES: City $ 353.7 $ 353.7 $ - Local 3.1 4.3 1.2 School's Reserve & Other Funds 19.5 19.5 - Commonwealth 307.6 305.5 (2.1) Federal Government 16.6 13.6 (3.0) Total Revenues $ 700.5 $ 696.6 $ (3.9) EXPENDITURES $ (719.1) $ (699.2) * $ 19.9 Total Reversion to City $ 16.0 * Reflects encumbrances of $10.3 million 13
Tota tal Debt Debt - $1.241B Agriculture Reserve Program 3.12% General Government 55.20% Storm Water 2.17% Water and Sewer 13.87% Schools 25.64% 14
Fund Balance within Policy, lower than 2011 (10.7% FY12 vs 11.9% FY11) Reservations for FY13 operating budget include: City - $9.9M Schools - $11.2M Departments continue to manage their budgets Reductions in personnel have operating impacts Actual revenues were 0.8% over budget Recommend entire Fund Balance be maintained as reserve for FY2014 15
FY2013 Through November 16
Annual YTD Budget Actual Variance Revenues Local (83.3% of budget) $ 807.8 $ 252.8 $ (555.0) State (15.0% of budget) 145.4 32.3 (113.1) Federal ( 1.7% of budget) 16.7 6.4 (10.3) Total Revenues $ 969.9 $ 291.5 $ (678.4) Expenditures City Operations $ 629.8 $ 287.6 $ 342.2 School Operations 389.0 162.1 226.9 Total Expenditures $ 1,018.8 $ 449.7 $ 569.1 Less Amounts Funded from Fund Balance Encumbrances/Carryforwards at 6/30/12 $ 9.5 City Capital Projects 18.2 City Operating Budget 21.2 Adjusted Expenditures $ 969.9 17
100.0% 100% 93.4% ACTUAL REVENUES = $291.5M 85.7% 80% 77.4% 78.5% ACTUAL EXPENDITURES = $449.7M 70.2% Percent of Total Expenditures 62.0% 60% 58.5% 54.3% 55.4% 45.9% 49.2% 45.2% 44.1% 38.3% 40% 41.9% 36.6% 30.1% 28.0% 26.5% 26.6% 19.2% 20% 18.5% 14.2% 10.8% 9.0% 10.8% 13.5% 4.1% 1.6% 9.0% 4.1% 0% 1.9% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Rev Trend % of FY13 Rev Budget Expenditure Trend % of FY13 Exp Budget 18
December Interim Jan 22, 2013 FY14 Budget Proposal Mar 26, 2013 FY14 Budget Adoption May 7, 2013 19
Audit Presentation City of Virginia Beach Solutions. Character. Virginia Depth. December 11, 2012 The Firm of Choice.
Overview of Auditors’ Opinion Required communication of significant audit matters Questions
Unqualified Opinion Accounting principles generally accepted in the United States of America Material transactions and balances Compliance with laws and regulations material to the financial statements
Our responsibility under generally accepted auditing standards: We assessed risk that the financial statements may contain a material misstatement, either intentional or unintentional We documented and considered internal controls to assist us with our audit approach, not for the purpose of providing assurance on those controls.
Our Responsibility under Government Auditing Standards (The Yellow Book) We reviewed and tested the City’s compliance with laws and regulations, noncompliance with which could have a material impact on the financial statements. We reviewed compliance with applicable laws and regulations identified in the Specifications for Audits of Counties, Cities and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia
Our Responsibility under OMB A-133 We performed procedures in order to express an opinion on the City’s compliance with requirements applicable to major Federal programs. Our opinion is unqualified. We performed tests of controls to assess the City’s ability to detect material noncompliance with program requirements, not to express an opinion on controls.
Independence In accordance with AICPA Rule 101, and the independence standards contained in Government Auditing Standards , we were, and continue to be, independent with respect to the City of Virginia Beach. Accounting Policies No new accounting policies adopted. No transactions that lacked authoritative consensus.
Estimates These statements include estimates, including: Allowance for doubtful accounts Other Post Employment Benefits liability Claims Liability
Significant Audit Findings There were no disagreements or difficulties in dealing with management. There were no misstatements individually or in the aggregate identified during our audit. There were no consultations with other accountants.
Audit Presentation City of Virginia Beach Solutions. Character. Virginia Depth. December 11, 2012 The Firm of Choice.
Recommend
More recommend
