Item 5: Resolution on Receipt of FY12 URA Financial Report

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Action: Adoption of Resolution 1066 Acknowledging Receipt of the Annual Financial Report of the Urban Renewal Agency of the City of Eugene, Oregon, for the Fiscal Year Ended June 30, 2012 Meeting Date: January 14, 2013 Agenda Item Number: 5 Department: Central Services Staff Contact: Fionan Cronin www.eugene-or.gov Contact Telephone Number: 541-682-5394 ISSUE STATEMENT This is a resolution acknowledging receipt of the Annual Financial Report (Report) of the Urban Renewal Agency (Agency) of the City of Eugene for the fiscal year ended June 30, 2012. This resolution demonstrates compliance with ORS 297.465(2), which requires that a copy of the Agency’s financial report, containing a signed expression of opinion, be furnished to each member of the governing body. BACKGROUND Under Oregon Municipal Audit Law, the Agency is required each fiscal year to contract with an authorized accounting firm for the audit of its accounts and fiscal affairs (ORS 297.425). The regional firm of Isler CPA (auditors) has completed the audit of the Agency’s annual financial report for the fiscal year ended June 30, 2012, and issued an unqualified opinion on the basic financial statements. The key pages of the Report, which the council may wish to review, are pages 3 - 4 and pages 43 -44, where the two auditors' reports are found. In the first report, the auditors have issued a “clean opinion” on the Agency’s basic financial statement, indicating that the Agency has prepared these statements in conformity with generally accepted accounting principles (GAAP). GAAP for state and local governments is promulgated by the Governmental Accounting Standards Board to ensure consistency in accounting and comparability in financial reporting among state and local governments. A clean opinion is a fundamental financial goal for every government, as it represents the highest level of opinion a government can receive from its independent auditors. A clean opinion is an important indicator of sound financial management and creditworthiness to the citizens, other governmental jurisdictions (state and federal), credit rating agencies, investment bankers, bond holders, and other private sector entities. In the second report, the auditors address the Agency’s compliance with applicable provisions of Oregon Revised Statutes including, requirements related to debt, deposit of S:\CMO\2013 Council Agendas\M130114\S1301145.doc