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EUGENE URBAN RENEWAL AGENCY AGENDA ITEM SUMMARY Action: Resolution 1034 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, 2004 Meeting Date: January 24, 2005 Agenda Item Number: 3 Department: Central Services Staff Contact: Fionan Cronin www. cl. eugene, or. us Contact Telephone Number: 682-5394 ISSUE STATEMENT This is a resolution acknowledging receipt of the Annual Financial Report of the Urban Renewal Agency of the City of Eugene (Report) for the fiscal year ended June 30, 2004. 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 Urban Renewal 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 Grove, Mueller & Swank, P.C. (auditors) has completed the audit of the agency's annual financial report for the fiscal year ended June 30, 2004, and issued an unqualified opinion on the basic financial statements. The auditors conduct the audit of the agency's basic financial statements in accordance with generally accepted auditing standards and the Minimum Standards for Audit of Oregon Municipal Corporations. Management is responsible for the information contained in, and the preparation of, the agency' s financial statements. To effectively fulfill this responsibility and to contain the cost of auditor services, City staff devotes significant effort to the closing of accounting records, the preparation of schedules and audit workpapers, and the production of the basic financial statements. This also results in staff expertise being developed on specific financial and service issues that can then be used to assist departments and other pertinent parties. The key pages of the report, which the council may wish to review, are page 3 and pages 45-46, where two of the auditors' reports are found. In the first report, the auditors have issued a "clean opinion" on the agency' s basic financial statements, 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 (GASB) 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 L:\CMO\2005 Council Agendas\M050124\S0501243.doc