Item 4D: Resolution Acknowledging Receipt of CAFR

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The key pages of the CAFR which the council may wish to review are pages 11-12 and pages 151-152, where two of the auditors' reports are found. In the first report, the auditors have issued a "clean opinion" on the City's basic financial statements, indicating that the City 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 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 state that nothing came to their attention that caused them to believe that the City was not in compliance with appropriate state and federal regulations. Two additional reports, beginning on page 155, specifically address compliance with Federal laws, regulations, contracts and grants, and indicate that the auditors found no material instances of the City's noncompliance with these requirements, nor were there any findings or questioned costs noted in relation to Federal awards made to the City. For fiscal year 2006 audits, the auditors have submitted a memo to the governing body for each of their clients that addresses any concerns or findings they encountered in such audit-related areas as fraud, accounting estimates and policies. Their memo addressing these issues is attached and it states that there were no concerns that required communication to the council. RELATED CITY POLICIES Policy B.1 of the City's Financial Management Goals and Policies states that "The City will maintain an accounting and financial reporting system that allows reporting in conformance with Generally Accepted Accounting Principles and Oregon Local Budget Law and will issue a Comprehensive Annual Financial Report each fiscal year." This action signifies formal completion of this process for the fiscal year ended June 30,2006, and demonstrates the council's compliance with the policy. COUNCIL OPTIONS None. CITY MANAGER'S RECOMMENDATION The City Manager recommends adoption of the resolution. SUGGESTED MOTION Move to adopt Resolution 4899 acknowledging receipt of the Comprehensive Annual Financial Report (CAFR) for the City of Eugene for the fiscal year ended June 30,2006. LICMOl2007 Council Agendas1M0701081S0701084D.doc