Oxnard CAFR & Audit now ready- looks mostly better than last year

CAFR will be presented at 2-14-17 Council meeting, Fiscal Policy Task Force meeting held

By George Miller

Oxnard’s Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2015/2016 is now available. This is far sooner than last year’s and with far fewer problems, according to Oxnard’s auditors and CFO.  It was presented at the 2-8-17 Fiscal Poilicy Task Force meeting.The CAFR presentation is on the 2-14-17 City Council agenda

The City General Fund appears to be in better financial shape than last year. Audit “findings” or problems, and dollar value of errors, have significantly decreased, but many from last year remain unresolved. The General Fund is up from $46 to $53 million. Revenues were up, from $135M to $140MM, while expenses dropped from $122MM to $119MM. From the CAFR: 

Overall revenues and expenses were a bit different:

However, the financial conditions of utilities have all worsened, especially with deficits of $8MM in water and $4MM in wastewater, with reserves dangerously low. This is in part due to residents’ dissatisfaction with the utility rate rate setting process. The council held up on water and solid waste rate increases last year because of this. Voters elected to rescind the wastewater increase in November. A judge stayed that while the City and a panel of residents rework the process, which is governed by CA Proposition 218. This is currently being played out with the Wastewater rate setting process ongoing, with recommendations to City Council due soon. Solid waste and housing actually had surpluses. 

Here’s the CAFR agenda item for the 2-14-17 meeting:

K. REPORTS
  Finance Department
1. SUBJECT: Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2015-2016 (20/30/30)
RECOMMENDATION: For the City Council to receive and file the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2016, as recommended by the Fiscal Policy Task Force.
Legislative Body: CC Contact: Jim Throop Phone: 385-7475

The audit was presented by Eadie + Payne at the 2-8-17 Fiscal Policy Task Force meeting.  The City has not provided links or files of the presentation or the audit itself yet, so we cannot provide them to readers at this time, but will add them as soon as they are available to us.  AND HERE IT ISFPTF 2-8-17

Even though we have a qualified opinion, it wasn’t a bad audit- Eadie+Payne

Event video by Dan Pinedo … 

The audit contained “qualified” opinions (bad news) on Governmental Activities, Business type activities, Water Fund, Wastewater Fund, Environmental Resources Fund (trash) an the CDC- Successor Agency Private Purpose Trust Fund.  The City is in violation of bond covenants in the water and wastewater funds, mainly because it has inadequate reserves. There is uncertainty as to whether letters of credit will be renewed, which could trigger calls on the bonds and necessity of refinancing them under less favorable terms. City staff has so far been unable to provide proper reconciliations for notes receivable, capital assets, capital improvement plans, self insurance liabilities, net pension liabilities and other post-employment liabilities.  Some of this predates last year and has been quite difficult to reconstruct due to poor records and procedures in the past.

The report on the audit to the State Controller has already been submitted. We were told that the Single Audit would be released by moth-end.  It tuns out that the Housing Authority is being audited by a different company. Financial management expressed a desire to also have this by done by Eadie+Payne next year,

E+P will issue an internal controls report status, which will address the status of the 111 findings from last years’s audit. There are also 4-5 significant new findings. I think we heard that there were 53 findings on this audit, Checking to confirm.

 

 

Previous year’s CAFR: 

Comprehensive Annual Financial Report FY 2015-16

View File

Overall meeting agenda:

City Council Meeting February 14, 2017 – 05:00 PM Agenda

George Miller is Publisher of CitizensJournal.us and a “retired” operations management consultant residing in Oxnard

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