Review and file Fiscal Year 2022/23 Fourth Quarter Financial Update

Review and file Fiscal Year 2022/23 Fourth Quarter Financial Update.

None. 

The intent of the quarterly financial report is to provide the Commission with an update on how LAFCo performed financially in the previous quarter as compared to the adopted budget and to discuss any issues as appropriate. The practice was recommended during a previous audit as an additional safeguard to ensure sound financial management, given the small size of the LAFCo staff. In accordance with LAFCo Administrative Policies and Procedures, the Commission adopts the final budget and is authorized to make adjustments as appropriate.

The LAFCo FY 2022/23 budget was adopted on May 26, 2022. During the fourth quarter, LAFCo remained on track with regard to both revenue and expenditures.

REVENUES
LAFCo received 101.51% of its revenue budgeted, exceeding estimates in a few accounts: LAFCo fees exceeded the budget by $4,083 and investment earnings by $3,815. These unexpected revenues will decrease the amount of fund balance used to balance our budget. LAFCo's overall revenue came from the following sources: agency funding (85%), use of available fund balance (13%), and fees and investments (2%).
 
EXPENDITURES
LAFCo's total expenditures for the fiscal year ended at 88.21% of the total budget. Salaries and Benefits ended the fiscal year at 100% of budget, Services and Supplies closed at 65% of budget, and none of the appropriations for Contingency were used. A few accounts under Services and Supplies significantly exceeded appropriations during this fiscal year. Communications (510020) exceeded its appropriation by 1062.92%, due to a miscalculation by the County for courier services. General Services is aware of the issue and working on a correction. Utilities Internal Charge (510223) exceeded its total appropriation by 286.30%, due to a miscalculation by the County for water, sewer, and HVAC debt in the administration building. This has been an ongoing issue for the past two fiscal years. However, LAFCo will be given credit for this fiscal year and will be charged the correct amount in FY 2023/24. Professional & Specialist Service-Info Tech Services (510252), exceeded its total appropriation by 289.98%, mainly due to the services requested from the County's Geographic Information Systems (GIS) division for mapping work for several Municipal Service Reviews and Spheres of Influence Studies (MSR/SOI), and Record Management Services.

In Attachment B, the Yolo County Department of Financial Services (DFS) recorded a debit of $4,997 to investment earnings to comply with Government Accounting Standard Board (GASB) reporting requirements. However, it is a financial reporting adjustment only and is not considered an expense for budget purposes. Therefore, the adjustment was not included in the Budget Status Summary.
 
BUDGET REPORTS
The Budget Status Summary (Attachment A) is an easy-to-read summary of the budget. The General Ledger Report (Attachment B) shows all transactions, including both revenue and expenditure amounts. The General Ledger Report will look different from now on, as the County moved to the Infor CloudSuite financial system in July 2023.