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December 9, 2019, Meeting – Item 3 <br />EUGENE URBAN RENEWAL AGENCY <br />AGENDA ITEM SUMMARY <br />Action: A 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, 2019 Meeting Date: December 9, 2019 Agenda Item Number: 3 Department: Central Services Staff Contact: Finn Cronin <br />www.eugene-or.gov Contact Telephone Number: 541-682-5394 <br />ISSUE STATEMENT This is a 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, 2019. This resolution demonstrates compliance with Oregon Revised Statute 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. <br />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 has completed the audit of the Agency’s annual financial report for the fiscal year ended June 30, 2019, 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 43–44.In the first report, the auditors have issued an unmodified opinion on the Agency’s basicfinancial statements, indicating that the Agency has prepared the statements in conformity withgenerally accepted accounting principles. GAAP for state and local governments is promulgated bythe Governmental Accounting Standards Board to ensure consistency in accounting andcomparability in financial reporting among state and local governments. A clean opinion is afundamental financial goal for every government as it represents the highest level of opinion agovernment can receive from its independent auditors. A clean opinion is an important indicatorof sound financial management and creditworthiness to the citizens, other governmentaljurisdictions (state and federal), credit rating agencies, investment bankers, bond holders, andother private sector entities. For policy makers, a clean opinion means that the information in theAnnual 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, 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 <br />CC Agenda - Page 233