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HomeMy WebLinkAboutItem 4: Adoption of URA Annual Financial Report EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Action: Resolution 1037 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, 2005 Meeting Date: January 9, 2006 Agenda Item Number: 4 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, 2005. 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, 2005, 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 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 L:\CMO\2006 Council Agendas\M060109\S0601094.doc 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, 2005, and demonstrates the agency’s compliance with the policy. OPTIONS Not applicable. AGENCY DIRECTOR’S RECOMMENDATION The Agency Director recommends adoption of the Resolution. SUGGESTED MOTION Move to adopt Resolution 1037 acknowledging receipt of the Annual Financial Report for the Urban Renewal Agency of the City of Eugene for the fiscal year ended June 30, 2005. ATTACHMENTS A. Resolution B. Copy of the 2005 Report FOR MORE INFORMATION Staff Contact: Fionan Cronin Telephone: 682-5394 Staff E-Mail: finn.j.cronin@ci.eugene.or.us L:\CMO\2006 Council Agendas\M060109\S0601094.doc 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, 2005 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, 2005, 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, 2005." The foregoing resolution adopted the 9th day of January, 2006. Director ATTACHMENT B A copy of the Urban Renewal Agency Annual Financial Report is scheduled to be available online after January 16, 2006. For more information, contact Council Coordinator Lynda Rose at 682-5017.