Agenda Packet 12-10-18 Meeting - Laserfiche WebLink

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December 10, 2018, Meeting – Item 2D EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Adoption of a Resolution Acknowledging Receipt of City of Eugene, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018 Meeting Date: December 10, 2018 Agenda Item Number: 2D Department: Central Services Staff Contact: Finn Cronin www.eugene-or.gov Contact Telephone Number: 541-682-5394 ISSUE STATEMENT This is a resolution acknowledging receipt of the City of Eugene, Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018. This resolution demonstrates compliance with ORS 297.465(2), which requires that a copy of the City’s CAFR, containing a signed expression of opinion, be furnished to each member of the governing body. The resolution is included as Attachment B. BACKGROUND Under Oregon Municipal Audit Law, the City 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 firm of Isler CPA (auditors) has completed the audit of the City of Eugene's financial statements for the fiscal year ended June 30, 2018, and issued an unmodified opinion (also known as a "clean opinion") on the basic financial statements. One of the most important components of the CAFR is the audit opinion. The auditors have issued two audit reports which can be found on pages 13-15 and pages 167-168 of the CAFR. In the first report, the auditors have issued an unmodified opinion on the City's basic financial statements, indicating that the City has prepared these statements in conformity with generally accepted accounting principles. 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. For policy makers, a clean opinion means that the information in the CAFR is accurate and reliable. In the second report, the auditors address the City’s compliance with applicable provisions of Oregon Revised Statutes including requirements related to debt, deposit of public funds, preparation and adoption of the budget, accounting records and related internal control structure, etc. In addition, the auditors also report if the City had any significant internal control weaknesses. The auditors noted that the City complied with all laws.