Item 4D: Resolution Acknowledging Receipt of FY07 CAFR

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4924 Acknowledging Receipt of the City of Eugene, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2007 Meeting Date: January 14, 2008 Agenda Item Number: 4D 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 City of Eugene, Comprehensive Annual Financial Report (CAFR) for the fiscal year which ended June 30, 2007. This resolution demonstrates compliance with ORS 297.465(2), which requires that a copy of the City’s CAFR, containing a signed expression of opinion, be furnished to each member of the governing body. BACKGROUND Under Oregon Municipal Audit Law, the City 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 firm of Isler CPA (auditors) has completed the audit of the City of Eugene's financial statements for the fiscal year which ended June 30, 2007 and issued an unqualified opinion on the basic financial statements. The auditors conduct the audit of the City's basic financial statements in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations. In addition, as a recipient of federal grants, the City is subject to the Federal Single Audit Act of 1984, which requires that the audit be conducted in accordance with Government Auditing Standards, issued by the Comptroller General of the United States and Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. These standards and OMB Circular A-133 require that the auditors plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement and whether the City complied with the laws and regulations pertaining to federally-funded programs. In addition to state and federal requirements, the City has bond covenants in connection with certain debt issuances which require that the City issue annual audited financial statements. Management is responsible for the information contained in, and the preparation of, the City'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 CAFR. 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. F:\CMO\2008 Council Agendas\M080114\S0801144D.doc