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

Review and file Fiscal Year 2023/24 Fourth Quarter Financial Update.

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 fourth quarter, LAFCo remained on track with regard to both revenue and expenditures and closed the fiscal year "in the black".

REVENUES
LAFCo received 106% of its budgeted revenue, exceeding estimates in a few accounts: LAFCo fees exceeded the budget by $23,119 and investment earnings by $9,666. These unexpected revenues will decrease the amount of fund balance used to balance our budget. LAFCo's overall revenue came from the following sources: agency funding (83%), use of available fund balance (11%), and fees and investments (6%).
 
EXPENDITURES
LAFCo's total expenditures for the fiscal year ended at 86% of the total budget. Salaries and Benefits ended the fiscal year at 99% of budget, Services and Supplies closed at 56% of budget, and none of the appropriations for Contingency were used. A few accounts under Services and Supplies significantly exceeded appropriations during this fiscal year. Maintenance-Bldg Improvement (510071) exceeded its appropriation by 1,146%, due to County staff charging the wrong account to LAFCo for water, sewer, and HVAC debt for the administration building. Staff appropriated the $2,864 to account 540500-3005, as recommended in the County's Budget Instructions. Office Exp-Postage (510111) exceeded its total appropriation by 325% due to the postage needed for a public hearing notice and conducting authority protest proceedings notice for the PIRMI & Sports Park Reorganization to the City of Woodland (LAFCo #24-01). Most of the overage in this account will be charged back to the applicant.

In Attachment B, the Yolo County Department of Financial Services (DFS) recorded a debit of $2,836 on investment earnings to comply with Government Accounting Standard Board (GASB) reporting requirements. However, it is a financial reporting adjustment only and is not considered an expense for budget purposes. Therefore, the adjustment was not included in the Budget Status Summary.
 
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.