Agenda Packet 12-10-18 Meeting - REVISED

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December 10, 2018, Meeting – Item 3 EUGENE URBAN RENEWAL AGENCY AGENDA ITEM SUMMARY Action: Resolution Acknowledging Receipt of the Annual Financial Report of the Urban Renewal Agency of the City of Eugene for the Fiscal Year Ended June 30, 2018 Meeting Date: December 10, 2018 Agenda Item Number: 3 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 Annual Financial Report (Report) of the Urban Renewal Agency (Agency) of the City of Eugene for the fiscal year ended June 30, 2018. 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. The resolution is included as Attachment B. 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, 2018, and issued an unmodified opinion (also known as a "clean opinion") on the basic financial statements. The key components of the audit results are the two auditors' reports on pages 3-5 and pages 45-46. In the first report, the auditors have issued an unmodified on the Agency’s basic financial statements, indicating that the Agency has prepared the 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 Annual Financial Report is accurate and reliable. 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 public funds, prepara-tion and adoption of the budget, accounting records and related internal control structure, etc. The auditors noted that nothing came to their attention that caused them to believe that the Agency was not in compliance with state regulations. The auditors conduct the audit of the Agency’s basic