Review and file the Yolo LAFCo Financial Statement for Fiscal Years ending 2023, 2022, and 2021

Review and file the Yolo LAFCo Financial Statement. This financial statement is in preparation for our upcoming audit of the last three fiscal years (2024, 2023 and 2022), which will occur this fall. 

Yolo LAFCo Administrative Policies and Procedures section 5.18 states, "LAFCo shall have financial audits performed on a three-year cycle (i.e. the auditor reviews the prior three fiscal years at one time). For those interim years when a formal audit has not yet been performed, staff from the County Department of Financial Services shall prepare a financial statement for Commission review following the close of the fiscal year". LAFCo has already contracted with Richardson & Company, LLP Certified Public Accountants to perform our audit this fall of fiscal years ending 2024, 2023 and 2022. 

There are no irregularities or issues to report in the financial statement. Even though the financial statement includes 2023, 2022 and 2021 information, the Commission reviewed and filed the 2022 financial statement last year and 2021 was included in our previous audit (i.e. these previous years are included in the presentation but are not new information). Staff can answer any questions about these reports if desired.

Statement of Net Position
The Statement of Net Position and the Statement of Activities present financial data on a full accrual basis and includes balances that affect the agency over the long-term. The additional account balances presented in the Statement of Net Position are as follows:

• Compensated absences – The balance in this account represents the estimated value of banked vacation hours that is subject to payout at the time of employee separation.
• Net pension liability – This balance is the difference between the present value of projected benefit payments and the assets set aside in a trust restricted to paying these benefits.
• Other Post-Employment Benefits (OPEB) liability – This balance is the difference between the present value of projected benefit payments and the assets set aside in a trust restricted to paying these benefits.
• Deferred inflows of resources and deferred outflow of resources for pension and OPEB are actuarial balances that arise from the differences between expected and actual experience, net difference between projected and actual earnings on plan investments, and from changes in plan assumptions. These balances are amortized over time to either pension or OPEB expenses.

The variance in these accounts from year-to-year can vary significantly due to changes in actuarial assumptions, plan changes, actual earnings on plan investments, demographic changes, etc.   

Governmental Fund Statements
The Governmental Funds statements (Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance on page 5) present financial data which focus on short-term balances.  These are the balances used for budget purposes. The overall fund balance remained consistent from 2022 to 2023.