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 first quarter, LAFCo is on track for both revenue and expenditure. 

REVENUE
At the end of the first quarter of FY 2024/25, LAFCo had received $560,485 (82.9%) of its expected revenue of $675,962. Fund balance has been used to balance most of the remainder of the budget (16.5%). LAFCo's most significant revenue source comes from local government agency payments. By the close of the first quarter, LAFCo had received 99.3% of its funds from the agencies. Additional revenue not anticipated in the budget and received during the first quarter included $8,250 for review of the City of Woodland annexations. Other minimal revenue not yet received includes investment earnings.

EXPENDITURE
LAFCo total expenditures during the first quarter of FY 2024/25 were $109,254 (18.73%) of the annual budgeted costs of $675,962. LAFCo expended $94,347 (16.68%) under Salaries and Benefits and $14,907 (17.45%) 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. However, the funds are there in a different account. Therefore, LAFCo remains on track for the Salaries and Benefits category overall. Staff will schedule an item later this fiscal year to approve a budget adjustment. 

LAFCo expended $14,907.31 (17.45%) 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.

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.