Audited Financial Results for the Fiscal Year Ended June 30, 2013 - - PowerPoint PPT Presentation

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Audited Financial Results for the Fiscal Year Ended June 30, 2013 - - PowerPoint PPT Presentation

Oct 14, 2022 42 likes •365 views

Audited Financial Results for the Fiscal Year Ended June 30, 2013 December 10, 2013 1 Cherry Bekaert Comments FY 2013 Audited Financial Statements Implemented GASB Pronouncements Entity Wide Statements GASB 34 General Fund

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Audited Financial Results for the Fiscal Year Ended June 30, 2013 December 10, 2013

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 Cherry Bekaert Comments

  • FY 2013 Audited Financial Statements
  • Implemented GASB Pronouncements
  • Entity Wide Statements – GASB 34
  • General Fund
  • School Operating Fund
  • Water & Sewer Fund
  • Waste Management Fund
  • TIP Fund

 Debt – June 30, 2013  Fiscal Year 2014 – Through November 30, 2013

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Audit Presentation

City of Virginia Beach

December 10, 2013

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Overview

Overview of Auditors’ Opinion Required communication of significant audit matters Questions

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Auditors’ Opinion on the Financial Statements

Unmodified Opinion

  • Accounting principles generally accepted in the United States of

America

  • Material transactions or balances
  • Compliance with laws and regulations material to the financial

statements

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Required Communications

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.

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Required Communications

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.

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Required Communications

Our Responsibility under OMB A-133

  • We performed procedures in order to express an opinion on the

City of Virginia Beach’s compliance with requirements applicable to major Federal programs. Our opinion is unmodified.

  • 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.

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Required Communications

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

  • The City adopted GASBS Nos. 61, 63 and 65. All other existing

policies have been consistently applied.

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Required Communications

Estimates

  • These statements include estimates, including:
  • Allowance for Uncollectible Accounts
  • Other Post Employment Benefits liability
  • Claims Liability
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Required Communications

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.
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Audit Presentation The City of Virginia Beach

December 10, 2013

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 Cherry Bekaert Comments

  • FY 2013 Audited Financial Statements
  • Implemented GASB Pronouncements
  • Entity Wide Statements – GASB 34
  • General Fund
  • School Operating Fund
  • Water & Sewer Fund
  • Waste Management Fund
  • TIP Fund

 Debt – June 30, 2013  Fiscal Year 2014 – Through November 30, 2013

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  • No. 61, The Financial Reporting Entity
  • Modifies requirements for component units – e.g. VBDA
  • No. 63, Financial Reporting of Deferred Outflows of

Resources, Deferred Inflows of Resources, and Net Position

  • Assets + Deferred Outflows – Liabilities – Deferred Inflows = Net Position
  • No. 65, Items Previously Reported as Assets and

Liabilities

  • Debt issuance costs are now expenses when incurred

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CAFR Exhibit 1

Governmental Business Total Assets 3,858.4 $ 1,237.3 $ 5,095.7 $ Deferred Outflows of Resources 0.4 1.2 1.6 Liabilities (1,179.4) (291.9) (1,471.3) Deferred Inflows of Resources (7.0) (0.4) (7.4) Net Position: Net Investment in Capital Assets 2,428.2 790.1 3,218.3 Restricted 40.9 132.9 173.8 Unrestricted 203.3 23.2 226.5 Total Net Position 2,672.4 $ 946.2 $ 3,618.6 $

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Fund Balance as a percent of FY 2014 Revenues is 10.4% * Reflects encumbrances of $8.2 million

CAFR Exhibit 5

% of BUDGET ACTUAL VARIANCE Budget LOCAL 816.0 $ 818.4 $ 2.4 $ 0.3% STATE 145.8 143.4 (2.4)

  • 1.6%

FEDERAL 16.7 17.6 0.9 5.4% TOTAL REVENUES 978.5 $ 979.4 $ 0.9 $ 0.1% CITY 674.9 $ 651.2 $ 23.7 $ 3.5% SCHOOLS 357.7 338.9 18.8 2.5% TOTAL EXPENDITURES 1,032.6 $ 990.1 $ * 42.5 $ 4.1% REVENUES OVER (UNDER) (54.1) $ (10.7) $ 43.4 $ FUND BALANCE - JULY 1 191.2 LESS: RESERVATIONS (78.1) UNASSIGNED FUND BALANCE - JUNE 30 102.4 $

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99 99₵ 89 89₵ 89 89₵ 89 89₵ 89 89₵ 89 89₵

429.4 455.9 465.2 458.4 436.1 421.8 439.0 426.7 461.7 474.8 463.5 437.4 423.2 441.0

$0 $100 $200 $300 $400 $500 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

89 89₵ 99 99₵ 89 89₵ 95 95₵ 89 89₵ 89 89₵ 89 89₵

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70.0 81.7 79.8 64.2 65.2 70.3 79.0 67.5 73.1 68.1 57.8 65.9 73.7 74.7

$0 $20 $40 $60 $80 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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53.4 55.7 56.0 51.1 50.6 53.0 54.1 54.0 54.1 51.4 50.3 51.7 53.4 55.0

$0 $10 $20 $30 $40 $50 $60 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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40.8 45.0 43.2 40.6 40.8 41.3 42.4 39.9 41.8 41.0 38.1 41.3 41.1 44.2 $0 $10 $20 $30 $40 $50

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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23.6 23.7 22.0 20.1 19.3 20.8 21.6 19.7 20.3 19.5

$0 $5 $10 $15 $20 $25 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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23.0 24.1 23.9 22.7 25.1 25.4 23.6 23.0 22.8 24.4 25.0 26.0

$0 $5 $10 $15 $20 $25 $30 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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49.1 48.7 49.8 48.2 51.8 55.1 48.1 48.3 48.4 50.9 53.3 55.1

$0 $10 $20 $30 $40 $50 $60 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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Hot Hotel R l Room T

  • om Tax

Restaurant Meal T estaurant Meal Tax

GF 2% $5.8 CBD TIF $0.5 TAP 1%/$1 $5.0 TIP 5% $14.6 SB $1 $0.1

GF 2% CBD TIF TAP 1%/$1 TIP 5% SB $1

GF 3.5% $35.1 TAP 0.5% $5.0 TIP 1.06% $10.6 OS 0.44% $4.4

GF 3.5% TAP 0.5% TIP 1.06% OS 0.44%

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137.9 144.7 156.7 159.3 143.5 143.8 145.8 138.1 142.4 157.3 156.1 140.7 143.8 143.4

$0 $25 $50 $75 $100 $125 $150 $175 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenues $ Million Budget Actual

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Policy = 8-12% of Revenues

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$73.0 $96.6 $123.4 $103.4 $117.8 $92.7 $102.1 $113.0 $104.0 $102.4

9.3% 11.1% 12.8% 10.1% 11.0% 8.9% 10.1% 11.9% 10.7% 10.4%

0.0% 4.0% 8.0% 12.0% 16.0% $0 $50 $100 $150 $200 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

% of Budgeted GF Revenue Dollars (Millions)

Unassigned GF Balance % of Budgeted GF Revenue

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Budget Actual Variance REVENUES: City 388.9 $ 388.9 $

  • $

Local 2.7 3.1 0.4 School's Reserve & Other Funds 11.7 11.7

  • Commonwealth

310.1 307.4 (2.7) Federal Government 17.1 20.9 3.8 Total Revenues 730.5 $ 732.0 $ 1.5 $ EXPENDITURES (740.6) $ (723.3) $ * 17.3 $ Total Reversion to City 18.8 $

* Reflects encumbrances of $5.4 million

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Budget Actual Diff Charges for Services 60.1 $ 62.2 $ 2.1 $ Sale of Water 48.1 46.5 (1.6) Other 4.6 7.8 3.2 Total Revenues 112.8 $ 116.5 $ 3.7 $ Water Services Contract 27.8 $ 26.0 $ 1.8 $ Operating Expenses 58.2 51.9 6.3 Debt Service 19.0 13.9 5.1 Transfers to CIP 13.3 13.3 0.0 Total Expenditures 118.3 $ 105.1 $ 13.2 $ Net Change in Position 11.4 $

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Budget Actual Diff Charges for Services 26.6 $ 26.6 $ (0.0) $ Transfer from Gen Fund 14.8 14.8 0.0 Other 0.1 0.1 0.0 Total Revenues 41.5 $ 41.5 $ 0.0 $ Program Support 1.0 $ 1.0 $ 0.0 $ Waste Disposal 21.4 18.7 2.7 Waste Collection 12.5 12.2 0.3 Yard Debris/Hazardous Waste 1.9 2.0 (0.0) Recycling 4.6 4.6 (0.1) Transfers to City Garage 0.1 0.1 0.0 Total Expenditures 41.5 $ 38.6 $ 2.9 $ Net Change in Fund Balance 2.9 $

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Budget Actual Diff Hotel Room Tax 14.3 $ 14.6 $ 0.3 $ Restaurant Meal Tax 10.6 10.6 (0.0) Amusement Tax 5.8 5.5 (0.3) Cigarette Tax 0.9 0.9 (0.0) Transfer from Gen Fund 0.3 0.3 0.0 Other 1.5 1.6 0.1 Total Revenues 33.4 $ 33.5 $ 0.1 $ Debt Service 26.2 $ 26.1 $ 0.1 $ SGA Special Events 3.5 3.4 0.1 Operating Expenses 2.0 1.6 0.4 Transfer to Sandbridge SSD 2.3 2.4 (0.1) Transfer to Gen Fund 2.0 2.0 0.0 Total Expenditures 36.0 $ 35.5 $ 0.5 $ Net Change in Fund Balance (2.0) $

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General Government 54.62% Agriculture Reserve Program 3.42% Storm Water 2.13% Water and Sewer 13.70% Schools 26.13%

Total Debt - tal Debt - $1.204B 204B

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  • Fund Balance within Policy, lower than 2012
  • (10.4% FY13 vs 10.7% FY12)
  • Reservations for FY14 operating budget include:
  • Schools - $3.1M
  • Sequestration - $9.9M
  • FY14 CIP Budget - $24.4M
  • School Reversion - $18.8M
  • Departments continue to manage their budgets
  • Reductions in personnel have operating impacts
  • Actual revenues were 0.1% over budget

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