HomeMy WebLinkAboutItem 3 - URA Receipt of CAFREUGENE 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
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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 agency was not in compliance with appropriate state regulations.
RELATED POLICY ISSUES
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, 2004, and demonstrates the agency's compliance with the policy.
OPTIONS
Not applicable.
AGENCY DIRECTOR'S RECOMMENDATION
The Agency Director recommends adoption of the proposed resolution.
SUGGESTED MOTION
Move to adopt Resolution 1034 acknowledging receipt of the Annual Financial Report for the Urban
Renewal Agency of the City of Eugene for the fiscal year ended June 30, 2004.
ATTACHMENTS
A. Resolution
B. Copy of the 2004 Report
FOR MORE INFORMATION
Staff Contact: Fionan Cronin
Telephone: 682-5394
Staff E-Mail: finn.j, cronin~ci, eugene, or. us
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ATTACHMENT A
RESOLUTION NO.
A RESOLUTION ACKNOWLEDGING THE RECEIPT
OF THE ANNUAL FINANCIAL REPORT OF THE
URBAN RENEWAL AGENCY OF THE CITY OF
EUGENE, FOR THE FISCAL YEAR ENDED JUNE 30,
2004
The Urban Renewal Agency of the City of Eugene finds that:
The firm of Grove, Mueller & Swank, P.C. has completed the audit of the
financial statements of the Urban Renewal Agency of the City of Eugene for the fiscal
year ended June 30, 2004, as required by ORS 297.425 and, pursuant to ORS 297.465,
reported to the Board on its findings.
NOW, THEREFORE,
BE IT RESOLVED by the Urban Renewal Agency of the City of Eugene, as
follows:
Section 1. That the Board hereby acknowledges that it has received the "Annual
Financial Report of the Urban Renewal Agency, a Component Unit of the City of
Eugene, for the Fiscal Year Ended June 30, 2004."
The foregoing resolution adopted the 24th day of January, 2005.
Director