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HomeMy WebLinkAbout12.08.20 Final Fund Balance Report From:Gutierrez, Graciela To:Alpert, Bruce;Bennett, Robin;Clerk of the Board;Connelly, Bill;Cook, Holly;Lambert, Steve;Lucero, Debra; McCracken, Shari;Paulsen, Shaina;Pickett, Andy;Ring, Brian;Ritter, Tami;Rodas, Amalia;Sweeney, Kathleen; Teeter, Doug Cc:Jessee, Meegan Subject:Final Fund Balance Report Date:Tuesday, December 8, 2020 5:17:49 PM Attachments:Final Fund Balance Audited Report.docx image001.png Good evening, We have completed our field audit and are close to publishing the County CAFR. I am at the point in time when I am able to submit the final audited Fund Balance and adjustments. Please read the attached and let me know if I may provide additional information. Take care, Graciela Gutierrez Auditor-Controller’s Office Graciela Gutierrez, MPA Auditor-Controller (530)552-3599 COUNTYOFBUTTEE-MAILDISCLAIMER:Thise-mailandanyattachmenttheretomaycontain private,confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by other than the County of Butte or the intended recipient is strictly prohibited. If you are NOT the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto. OFFICE OF THE AUDITOR-CONTROLLER Graciela C. Gutierrez, Auditor-Controller 25 County Center Drive Ste. 120 T: 530.552.3600 buttecounty.net/auditor Oroville, California 95965 F: 530.538.7693 DATE: December 8, 2020 TO: Board of Supervisors, Chief Administrative Officer FROM: Graciela C. Gutierrez, Auditor-Controller SUBJECT: FY 2019-20 Audited Fund Balance and Contingency Adjustment Per Resolution 20-086, Resolution Adopting Appropriations For The Fiscal Year 2020-2021 County Budget the Auditor-Controller is requested to report all adjustments to appropriations needed to balance any fund to the Butte County Board of Supervisors. On September 29, 2020 I provided a report summarizing the unaudited fund balance for all governmental funds as of 6/30/20. The external auditors have completed their field work. I am happy to report after completing all closing accounting entries the Unassigned General Fund Balance closed out an additional $192,335 then initial reported for a total Unassigned General Fund Balance of $23,016,447. Starting General Fund Appropriation for Contingencies was increased by that same about for a starting General Fund Appropriation for Contingencies of $8,216,447. Fund 0142 CDBG came in $256,611 lower than projected, Fund 5124 Public Health – HPP came in $37,959 lower than projected and Fund 5125 Public Health – Proposition 56 Tobacco Use Prevention came in $13,541 lower than projected. As a result Fiscal Year 2020-21 Restricted Appropriations will be reduced in order to balance the funds. In addition to providing my final 2019-20 year end report to the Board I wanted to highlight an item in the CAFR. Typically, the Unassigned Fund Balance reported in the Budget is the same as the Unassigned Fund Balance reported in the CAFR, however that is not the case this year. This change is due to recent changes to the reporting requirements related to CARES Act funds. COVID-19 has brought many challenges. This is just an example of the impacts to the financial statements. The General Fund includes $6,813,638 of expenditures incurred as a result of COVID-19 as of 6/30/20. The CARES Act funded these expenditures through the State of California, but the State did not award these revenues to the County by 6/30, therefore the Governmental Accounting Standards Board (GASB) required revenue of these CARES Act funds to be reported in Fiscal Year 2020-21 in the CAFR. Although we have to comply with GASB for CAFR reporting for the purpose of the budget I believe it is more appropriate to match revenues to expenditures in the same period. For the purpose of the fund balances reported in the budget we have included the CARES Act funds spent in fiscal year 2019-20 and the revenue receipts to match for fiscal year 2019-20. I believe that this more accurately reflects the County’s finances.