Review and File Fiscal Year 2025/26 First Quarter Financial Update

Review and File Fiscal Year 2025/26 First Quarter Financial Update

The intent of the quarterly financial report is to provide the Commission with an update on LAFCo's financial performance during the prior quarter as compared to the adopted budget and to discuss any issues as appropriate. This 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 2025/26 budget was adopted on May 22, 2025. As of the end of the first quarter, LAFCo is on track with respect to both revenues and expenditures.

REVENUE
At the end of the first quarter of FY 2025/26, LAFCo has identified $689,741, representing approximately 99.8% of its total expected venue of $691,291. The remaining portion of the budget is funded through the use of fund balance, totaling $136,056, as adopted in the FY 2025/26 budget. LAFCo's primary revenue source continues to be local government agency payments, which have been received largely as anticipated early in the fiscal year. Additional revenue received during the first quarter that was not originally budgeted includes $1,450 in LAFCo fees related to service charges. Investment earnings have not yet been received and are expected to accrue later in the fiscal year.

EXPENDITURES
At the end of the first quarter of FY2025/26, LAFCo total expenditures were $132,623, representing approximately 19.2% of the adopted annual budget of $691,291. Salaries and benefits expenditures totaled $108,597, which is lower than anticipated largely due to reduced benefits costs. Staff has a question pending with the Department of Financial Services regarding an accrued payroll entry, which can be corrected at a future meeting if needed.

Services and supplies expenditures totaled $24,025, or approximately 20.0% of the annual services and supplies budget. Many services and supplies costs, including professional services, publications, training, and information technology expenses, are anticipated to occur later in the fiscal year.

BUDGET REPORTS
The Budget Status Summary (Attachment A) provides a high-level overview of budgeted and year-to-date revenues and expenditures. The General Ledger Report (Attachment B) provides a detailed listing of all transactions recorded to date, including both revenues and expenditures.