HomeMy WebLinkAboutComp Annual Financial Report°~uTr~° BUTTE COUNTY ADMINISTRATION
0 0 25 COIJNTY CENTER DRNE, SUITE 200
° ° OROVILLE, CALIFORNIA 95965.3380
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PAUL HAIiA€
Chief AdEninish~aEi~e pfI'icer
January 22, 2013
David A. Houser
Butte County Auditor-Controller
25 County Center Drive, Suite 120
4roville, CA 95965
MEMBERS OF TFIE BOARD
BILL CONNELLY
LARRY WAIIL
MAUREEIV KIRK
STEVE LAMBERT
DOUG TEETER
Subject: Comprehensive Annual Financial Report for Fiscal Year Ending June 30, 2012
Dear Dave,
The Comprehensive Annual Financial Statement (CAFR) for the fiscal year ending June
30, 2012 was issued on your behalf by Galling, LLP, on Friday, December 21, 2012.
The document was issued electronically as the "Final CAFR;" not a draft version.
During our review of the CAFR, the following discrepancies were noted:
Management's Discussion and Analysis, page 8, Government Funds, bullet four,
Assigned fund balance
The current sentence reads "$5,059 represents $3,500 set aside for emergency
reserves and $1,559 as a reserve for contingencies." Assigned fund balance should be
$5,844, representing $5,000 for emergency reserves and $844 for contingencies. The
$1,559 contingency number is the same number in the 2011 CAFR. (dollar amounts are
expressed in thousands)
Managemen#'s Discussion and Analysis, page 72, VI! Fiscal Outlook -
The first section reads "...a General Fund overall emergency reserve level ofi $4,500.
This emergency reserve consists of General Reserve for $3,500 and an Appropriation
for Contingency of $1,000." The sentence should read "...a General Fund overall
emergency reserve level of $9,748. This emergency reserve consists of General
Reserve for $5,000 and an Appropriation for Contingency of $4,748." The $1,000 cited
is the Appropriation for Contingency of the Road Fund, no# the General Fund. (dollar
amounts are expressed in thousands)
~c . Bos, ~
Notes to fhe Basic Financial Statements, page 59, Footnote 8, Restricted Net
Assets /Fund Balances: Fund Balances -Assigned:
Emergency reserve should be 5,000,000, not 3,500,000. Contingencies should be
843,971, not 1,559,485. This is also shown in summary form on page 17. These
discrepancies impact the resulting calculation for Unassigned Fund Balance.
Notes to the Basic Financial Statements, page fig, Footnote 9, County Employee
Retirement Plan Defined Benefit Pe,.,.
_ ( ,,,,,,,, nsion Plant' - ~-
Under Funding Policy, the retirement rates are the same as in the 2011 CAFR. The
rates were not updated for the 2012 CAFR. Rather than "10.268%", the note should
read 11.215% for non-safety employees. Rather than "15.726%", the note should read
19.696% for safety employees.
These discrepancies, in my opinion, are significant enough that they must be addressed
so that the reader of our CAFR can get a good understanding of the County's financial
position. If you concur that the aforementioned discrepancies are the result of reporting
errors, then please prepare a revised CAFR or an addendum to the CAFR to make the
appropriate corrections. If you believe that the discrepancies are not a reflection of
errors, but rather the result of misinterpretation, then please provide a written
clarification that we can share with readers of the CAFR.
Respectf submitted,
~ /
Paul J. Hahn
Chief Administrative Officer
County of utte
cc: ~ Members, Board of Supervisors
Elba Zuniga, Partner, Gallina LLP
Sandy Sup, Audit Manager, Gallina LLP
Letter to David A. Houser - 1122113 - CoFnprehensive Annual Fiuancial Report Page 2