HomeMy WebLinkAboutItem 5: URA Resolution Acknowledging Receipt of Annual Financial Report
EURA
UGENE RBAN ENEWAL GENCY
AIS
GENDA TEM UMMARY
Action: Resolution 1041 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, 2006
Meeting Date: January 8, 2007 Agenda Item Number: 5
Department: Central Services Staff Contact: Fionan Cronin
www.eugene-or.gov Contact Telephone Number: 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, 2006. 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 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, 2006, 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 Audits 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 Annual Financial Report. 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 the two 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
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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 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, 2006, and demonstrates the
agency’s compliance with the Policy.
OPTIONS
None.
AGENCY DIRECTOR’S RECOMMENDATION
The Agency Director recommends adoption of the resolution.
SUGGESTED MOTION
Move to adopt Resolution 1041 acknowledging receipt of the Annual Financial Report for the
Urban Renewal Agency of the City of Eugene for the fiscal year ended June 30, 2006.
ATTACHMENTS
A.Resolution
B.2006 Annual Financial 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, 2006
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, 2006, 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,
2006."
The foregoing resolution adopted the 8th day of January, 2007.
Director