AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

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. .... . . . .. ... . .. . blended in .the City's finimcial. st:at~ments .in: acco~dance ~ith Gove~melitalLl\ccou~tlng.:StaDciaTd~. Board Statem.ent : . No. 14. .. . . . ..'. . . . . FINANCIAL INFORMATION: Accounting System aDd Budgetary Control. , .; :..: The .City's accounting records for governmental. operations are maintained on a modified accrual basis, with .the : revenues being recorded.when both.measurttble and available, and expenditures being recorded when the:services or ,goods: are received ,iltld,the.liabilities are incurred.. AccOunting records for the' City's enterprises .are maintained , ' on the,accrual basis. .. . . . . ., .. . . . . , In developing and modif)rj~g the City's .accounting system. consideration is, given :to :.ihe adequacy of internal. . accounting . controls. Internal accounting hontrols are,:designed. to provide reasonable~ but rlOt absolute. ass~rance:. : regarding:. . . . . . . . :. . . . . . . Jhe 'saj:eguarding of assets ~g:ainst lossfrom unauthorized use or.4isposition, and. . . . . .. . . . . . The reliability of financial records for preparing ijnanciaI statements and Illaintairiing .accouniability for.. :assets;. ...., The concept of reasonable assurance rec6gnizes that: .. . ' . The cost. of a.conlToLshoul~: not exceed the bene~ts.likety to be derived, and :.. .. The ev~hiati,on ,of-costs and :benefits. requires.estinla~es. a.n~..jlldgments by management. All 'internal ~cintro.1 evaluations occur. .WithiQ' the above .framework~.: :..We. beli~ve..th~t.::all;~f the City's internal . , accounting ,contTolsadequately :Safeguard. assets and .provide reasonable .,aSsurance of proper .recording of financial . transaction~. i;. . . . . .. ,: :..: ': .. ,. ..' ';' .'.:' '. : . .' . Budgetary.'controlis maintain~d; at the :progTam level by ~nc~m~ring.;estih1~ted p~rchase:am.ounts..prior to..the release of purchase orders to vendors. Purchase orders that result i~ an overrun of budget balances are not released until additional appropriations are made available..' Open encumbrances are retXU1ed:'as reservations of fund: . . . balance 'at year,..end. ; . . . . The. indepel;1d~nt aud~t of ' the financial. statements ~f. the. City. :of Red~ood . City w~ part :of a broader, federally mandated '''sl11,gJe audit"'.,designed to meet :tbe special needs of federal ~tor.agencies.: The standards. governing single audit en.gagements requ"ire the independent auditor to report nof only on. the fair presentat.ion:of the financial . statemen.ts. but also: on the audited :govemment's internal controls :and. compl~ance wi,th . legal :"requirements,-:With special emphasis on internal c:ontrolsand legal requirements involving the administration of federal awards. These. .. . repo.rts are available in. the City of Re(h~ood City.'s separately issued, single. alldit report:, As. a r~ipi~n( of ftxl~ral.st~~~. and ro~n~ finarlcial .assistance/the. City, is .also reSponsible for ensuring thai an adequate internal control structure is in place to ensure compliance with applicable)a\\'.s:,8Ild regUlations related to those programs. This intettud. control :strtictuTl~; .is' subject to. periodic cval~~tion: by. management and the intemal . audit staff of the government. ,.. ... . . ., :As:demo~strated. by.. tbe staiemtmts and schedules included :in;th:~: .financi~l sec~ion ofthis:.rep.~rt, the. City of Redwood City continues to meet its responsibility for so~nd! fit:tancial managemeTlt. .' . . . . . FACTORS AFFECTIN<; FINA.NCIAL CONDITION Local'EcoDomy . , ., ..1:. . . Thel"Ocal economy is showing mixed . indiCators of' activity.. . .~n. the positive side~ countywide employment . increased 2.8% from 360,500 jobs .as ..of J\ine .2007 to.. 37(>,400jobs as.of June 2008. The county unemploymem rate was 4.8% as o{June 2008., ;. .. ' ., .. ..:. . : ! ; . .; jj . ,- '.i; .:' ...... . .. : :. .. 'I .. ..