Review and file Fiscal Year 2023/24 First Quarter Financial Update

Review and file Fiscal Year 2023/24 First 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 2023/24 budget was adopted on May 25, 2023. During the first quarter, LAFCo remained on track with regard to both revenue and expenditures. 

REVENUES
At the end of the first quarter of FY 2023/24, LAFCo had received $496,901 (101.53%) of its expected revenues of $549,686. Fund balance has been used to balance most of the remainder of the budget (10.96%). LAFCo's most significant revenue source comes from local government agency payments. By the close of the first quarter, LAFCo had received 100% ($485,501) of its funds from the agencies. Revenue not anticipated in the budget and received during the first quarter included LAFCo fees of $11,400 (2.04%), which included processing fees for the following: $1,500 for the City of Woodland to Extend Services to APN 27-270-074 (LAF#23-04), a $4,900 deposit to process The Promenade Reorganization to the City of Davis (LAF#23-05), and a $5,000 deposit to process the Northeast Industrial Area Reorganization to the City of Woodland (LAF#23-06). Other minimal revenue not yet received includes investment earnings.

In Attachments B, the Yolo County Department of Financial Services (DFS) recorded an adjustment 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 a spendable revenue for budget purposes. Therefore, the adjustment was not included in the Budget Status Summary. Additionally, each year LAFCo uses some fund balance to balance its budget. The use of fund balance does not show up as new net income because it's already in our fund.

EXPENDITURES
During the first quarter of FY 2023/24, LAFCo expended $108,420 (19.72%) of its annual budgeted costs of $549,686. LAFCo expended $95,513.19 (22.65%) of its Salary and Benefits appropriation of $421,718. LAFCo expended $12,907.04 (13.17%) of its Services and Supplies appropriations of $97,968.

Attached Budget Reports
The Budget Status Summary (Attachment A) is a one-page summary of the budget. The General Ledger Report (Attachment B) shows a running balance of all transactions, including both revenue and expenditure amounts.