AgdaPkt 2003-01-13 - Laserfiche WebLink

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7.i -cl REPORT To the Honorable Mayor and City Council From the City Manager January 13, 2003 Subject Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2002 Recommendation Acknowledge receipt of and accept the Comprehensive Annual Financial Report for fiscal year ended June 30, 2002. Background The City's auditors, Maze and Associates, have completed their audit of the City's financial records and the City's Comprehensive Annual Financial Report (CAFR) for the 2001/02 fiscal year. This report (Attachment 1), which is prepared by the City's Finance Department, summarizes and presents the financial transactions for all funds and account groups of the City of Redwood City, the City of Redwood City Redevelopment Agency, and the Port of Redwood City for the fiscal year ended June 30, 2002. Moreover, this report also presents the financial position of the foregoing entities as of June 30, 2002. The financial statements and notes thereto have been prepared in accordance with the standards set forth by the Government Accounting Standards Board and the guidelines established by the Government Finance Officers Association of the United States and Canada. Through fiscal year ended June 30, 2001, the City prepared its Comprehensive Annual Financial Report under the previous reporting guidelines authorized by the Governmental Accounting Standards Board (GASB). In an effort to improve governmental financial reporting, enhance awareness of fiscal issues facing states and local governments, and recognize the importance of adequately maintaining infrastructure (streets, sidewalks, bridges, traffic signals, etc.), the GASB recently issued Statement 34 (GASB 34). GASB 34 radically changed the City's financial reporting format and the accounting procedures necessary to support the new financial reporting format beginning with fiscal year 2001/02. The new format presents the City's financial data from two perspectives: the entitv -wide oersoective and the fund level oersoective. At the entitv -wide level, the financial data is presented using the full accrual method of accounting. The most substantive change was derived from the requirement that the City depreciate all of its fixed assets including infrastructure assets. Prior to the implementation of GASB 34, the City only depreciated assets used in the enterprise funds (water, sewer, parking, and Port funds) and the internal services funds (equipment services and the internal services funds). Furthermore, the City did not previously reflect infrastructure assets in its records. GASB 34 dictates reporting of infrastructure placed in service after June 30, 1980. The historic cost of major infrastructure assets and the associated accumulated depreciation was determined and presented in the Comprehensive Annual Financial Report for fiscal year ended June 30, 2002.