Audited Financial Results for the Fiscal Year Ended June 30, 2012 - - PowerPoint PPT Presentation

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Audited Financial Results for the Fiscal Year Ended June 30, 2012 December 11, 2012

• 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

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CAFR Exhibit 1

Gover ernmen ental Busi siness ss Total Asse ssets 3, 3,839. 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 $ $

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Fund Balance as a percent of FY 2013 Revenues is 10.7% * Reflects encumbrances of $9.5 million

% 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 $

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$445.1 $473.7 $483.7 $477.1 $451.3 $421.8 $443.1 $479.1 $493.0 $481.8 $452.8 $423.1 $0 $100 $200 $300 $400 $500 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Revenues $ Million

Budget Actual

99₵ 89₵ 89₵ 89₵ 89₵ 89₵

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$70.0 $81.7 $79.8 $64.2 $65.2 $70.3 $67.5 $73.1 $68.1 $57.8 $65.9 $73.7 $0 $20 $40 $60 $80 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Revenues $ Million

Budget Actual

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$53.4 $55.7 $56.0 $51.1 $50.6 $53.0 $54.0 $54.1 $51.4 $50.3 $51.7 $53.4 $0 $10 $20 $30 $40 $50 $60 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Revenues $ Million

Budget Actual

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$23.0 $24.1 $23.9 $22.7 $25.1 $23.6 $23.0 $22.8 $24.4 $25.0 $0 $5 $10 $15 $20 $25 $30 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Revenues $ Million

Budget Actual

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$49.1 $48.7 $49.8 $48.2 $51.8 $48.1 $48.3 $48.4 $50.9 $53.3 $0 $10 $20 $30 $40 $50 $60 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Revenues $ Million

Budget Actual

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Hotel el R Room

• om T

Tax Restaur urant M Meal T l Tax

GF 2% $5.4 CBD TIF $0.5 TAP 1%/$1 $4.9 TIP 5% $14.1 SB $1 $0.1

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

GF 3.5% $33.9 TAP 0.5% $4.8 TIP 1.06% $10.2 OS 0.44% $4.3

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

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5.7% 3.8% 8.4% 3.8% 5.9% 5.1% 9.0% 10.9% 7.5% 7.8% 5.2% 3.0%

• 1.2%
• 1.4%

0.6%

• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Annual % Change from PY

Policy = 8-12% of Revenues

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$73.0 $96.6 $123.4 $10 103.4 4 $117.8 $92.7 $102.1 $113.0 $10 104.0 9.3% 11.1% 12.8% 10.1% 11.0% 8.9% 10.1% 11.9% 10.7%

0.0% 4.0% 8.0% 12.0% 16.0% $0 $50 $100 $150 $200

2004 2005 2006 2007 2008 2009 2010 2011 2012 % of Budgeted GF Revenue Dollars (Millions)

Unassigned GF Balance % of Budgeted GF Revenue

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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

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General Government 55.20% Agriculture Reserve Program 3.12% Storm Water 2.17% Water and Sewer 13.87% Schools 25.64%

Tota tal Debt Debt - $1.241B

• 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

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FY2013 Through November

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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 $

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1.6% 4.1% 9.0% 14.2% 26.5% 41.9% 45.2% 49.2% 55.4% 58.5% 78.5% 1.9% 4.1% 9.0% 13.5% 30.1% 10.8% 19.2% 28.0% 38.3% 45.9% 54.3% 62.0% 70.2% 77.4% 85.7% 93.4% 100.0% 10.8% 18.5% 26.6% 36.6% 44.1% 0% 20% 40% 60% 80% 100% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Percent of Total Expenditures Rev Trend % of FY13 Rev Budget Expenditure Trend % of FY13 Exp Budget

ACTUAL REVENUES = $291.5M ACTUAL EXPENDITURES = $449.7M

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 December Interim

Jan 22, 2013

 FY14 Budget Proposal

Mar 26, 2013

 FY14 Budget Adoption

May 7, 2013

Solutions. Character. Depth.

Audit Presentation City of Virginia Beach Virginia

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

• n 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.

Solutions. Character. Depth.

Audit Presentation City of Virginia Beach Virginia

December 11, 2012

The Firm of Choice.