05-21-07 Item 2B1, 2006 Unaudited Financial Reports

Home Browse Search

~ ~~HILLS MEMORANDUM DATE: May 16, 2007 Agenda Item 2.B-I. TO: Honorable Mayor and City Council FROM: Sue Iverson, Finance Director~ SUBJECT: Unaudited 2006 Financial Reports/2006 Investment Portfolio BACKGROUND: Field work on the audit is complete; the financial statements are now being drafted with footnotes and being reviewed by the auditors. Work still remains to be done the government- wide statements. A presentation of the financial reports and audit findings will be done on the June 25, 2007 council meeting. DISCUSSION: Attached are the draft fund financial statements and investment portfolio. You will note that the Surface Water Management Fund has no "cash" reported on the balance sheet. This is because the fund has negative cash of ($24,617) as of December 31, 2006. There is a corresponding interfund payable in that amount in the liability section. This is a considerable improvement as the fund was some ($100,000) at the close of2005. The TCAAP Fund also shows no "cash" as of December 31, 2006 on the balance sheet. The corresponding interfund payable for this fund is ($64,922) as of December 31,2006. This resulted as the developer reimbursement was not received until 2007, after the PDA was signed. Please note the operating loss in the utility funds on Statement 7 . You will want to use the "Income (loss) before contributions and transfers" line when looking at performance as intergovernmental revenues such as MSA and taxes are received after the Operating income (loss) reporting line. RECOMMENDED ACTION: Staff will be available for questions or comments.