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 2024/25 budget was adopted on May 23, 2024. During the third quarter, LAFCo is on track for both revenues and expenditures. 

REVENUE
At the end of the third quarter of FY 2024/25, LAFCo had received $683,044 (101.1%) of its expected revenue of $675,962 with the addition of $5,791 of investment earnings. 

EXPENDITURE
LAFCo total expenditures during the third quarter of FY 2024/25 were $354,574 (52.4%) of the annual budget costs of $675,962. LAFCo expended $318,058 (56.2%) under Salaries and Benefits and $36,517 (42.8%) under Services and Supplies.

Regarding Salaries and Benefits accounts, in-lieu health insurance payments are being charged to Health Insurance (account 501130) while funding was allocated to Other Employee Benefits (account 501190) per County budget instructions. So the Health Insurance account appears over budget, while the funds are there in a different account. Therefore, LAFCo remains on track for the Salaries and Benefits category overall.

LAFCo expended $36,517 (42.8%) of its Services and Supplies allocation of $85,421. Insurance - Public Liability (510051) has exceeded its budget due to an unanticipated supplemental fee from YCPARMIA (Yolo County Public Agency Risk Management Insurance Authority, our local risk management pool), which passed along higher premiums from the California Joint Powers Risk Management Authority to recover several years when claims were paid for other agencies that exceeded what the premiums covered.

Maintenance-Bldg Improvement (510071) exceeded its appropriation by 1,158% because LAFCo's share of the debt payment for water, sewer, and HVAC debt for the administration building is not being charged to the account per County budget instructions. This has been resolved for next year's budget. Also, as discussed in the last budget update, the advertising for the new LAFCo position was incorrectly charged to Office Expense (510110) which caused this account to go over budget. The advertising charge of $499 will be moved to Publication and Legal Notices (510106). This will result in Office Expenses remaining below budget and Publication and Legal Notices being 119% of its budget.

BUDGET REPORTS
The Budget Status Summary (Attachment A) is an easy-to-read summary of the budget. The General Ledger Report (Attachment B) shows a running balance of all transactions, including both revenue and expenditure amounts. Staff will continue to monitor the budget and schedule an item at the end of this fiscal year to approve a budget adjustment, if needed.