Review and file the Yolo LAFCo Financial Statement for Fiscal Year ending 2022 prepared by the Yolo County Department of Financial Services

Review and file the Yolo LAFCo Financial Statement for Fiscal Year ending 2022 prepared by the Yolo County Department of Financial Services (DFS).

None. LAFCo will pay DFS for its staff time (estimated at 3 hours total), which is included in our annual budget.

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's last audit cycle included fiscal years 2018/19, 2019/20, and 2020/21, and the next audit will be in 2024.

There are no irregularities or issues in the financial statements to report. Staff are available to 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 expense.

The variances to 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) present financial data on which focus on short-term balances.  These are the balances used for budget purposes.

Cash and investments decreased by $80,571 mostly due to expenditures exceeding revenue by $82,098 partly because of not increasing City and County contributions for the past two years.  The fiscal years 2022 and 2021 contributions were more than 6% less than the amount received in FY 2020.

Overall fund balance decreased by $82,098.  The decrease in fund balance is partly due to the use of fund balance instead of raising County and City’s annual contribution. FY 2022 total revenues of $404,713 was $9,818 less than the prior year due to a decrease in interest income of $5,498 and in 2021 LAFCo received $5,221 in COVID relief funds. Fiscal year 2022 expenditures were $42,311 higher than the previous year mostly due to increases in salaries and benefits, general administrative expenses, and legal expense, as follows:
 

	2022	2021	Increase
Salaries and benefits	$406,575	$391,111	$15,464
General and administrative	31,100	13,131	17,969[i]
Legal	14,883	7,176	7,707[ii]