12132011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
AG E N~DA
• FY 2011 Audited Financial Statements
• Entity Wide Statements - GASB 34
• General Fund
• School Operating Fund
• TI F's
• Debt -June 30, 2011
• Fiscal Year 2012 -Through November 30, 2011
• Cherry, Bekaert & Holland Comments
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~: I
Statement of Net Assets -All City Funds
June 30, 2011
tin millions)
Governmental Business Total
Assets $ 3,783.3 $ 1,067.8 $ 4,851.1
Liabilities (1,245.2) (230.1) (1,475.3)
Net Assets $ 2,538.1 $ 837.7 $ 3,375.8
CAFR Exhibit 1
3
General Fund Budget to Actual at June 30, 2011
(in million s)
of
BUDGET ACTUAL VARIANCE Budget
LOCAL $ 826.4 $ 828.7 $ 2.3 0.3%
STATE 143.5 140.7 (2.8) -2.0%
FEDERAL 22.6 22.4 (0.2) -0.9%
TOTAL REVENUES $ 992.5 $ 991.8 $ (0.7) -0.1%
CITY $ 651.3 $ 629.4 $ 21.9 -3.4%
SCHOOLS 386.5 376.4 10.1 1.5%
TOTAL EXPENDITURES $ 1,037.8 $ 1,005.8 $ 32.0 3.1%
REVENUES OVER (UNDER) $ (45.3) $ (14.0) $ 31.3
FUND BALANCE -JULY 1 194.1
LESS: RESERVATIONS (67.1)
UNASSIGNED FUND BALANCE -JUNE 30 $ 113.0
Fund Balance as a percent of FY 2012 Reven ues is 11.89%
*Reflects encumbrances of $9.4 million a
2
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Real Estate Tax Revenues -General Fund
June 30, 2007 - 2011
($1.5M Over Budget)
sseo T
bar~.1 bae1.6
;475 I 5473.7 5477.1
4
S
Np ;450 I 5445.1
3 b443.1
I
;azs
;aoo
rr zoo7 Fr zoos Fr zoo9 Fr zolo
^BUdget ^AC[ual
5451.3 b452.8
Fr zoll
5
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rsonal Property Taxes -Local (excludes PPTRA)
June 30, 2007 - 2011
($782K Over Budget)
- -
sea
;60
f
gN
C ;40
C
;zo
;a
6
3
• • ~~~• n euue FY 2009 FY 2010 FY 2011
^Budge[ ^ACtual
ur ~
General Sales Taxes
June 30, 2007 - 2011
($1.1M Over Budget)
f60 j 556.0
I 555.7
' E53.4 554.0 f54.1 f51.4
f50
r4 f40
E
~ S30
c
C
f20 j
f10
f0 _.
FV 2007 FY 2008 FY 2009 FY 2010
^Budget oACtual '~
FY 2011
7
;25
S20
c
3 f15
E
M
c
f10
fs
Hotel Room Taxes -Total City
June 30, 2007 - 2011
($1.7M Over Budget)
tea a f2d.1 f23.9
8
4'
SO
FY 2007 FY 2008 FY 2009 FY 2010
^BUdget oACtual
. ~
---~-- -
'~~~ Restaurant Meal Taxes - Toi
June 30, 2007 - 2011
($2.7M Over Budget)
;so I ;az3 Sss.7 ;as.l ;as.l 548.7 ;48.3
;ao
s
;so
NyN I
C
}' ;20
6y ;lo
;° ____
ry zom Fr zoos Fr zoos
^BUdge[ ~ACtual
Fr 2010 Cy 2011
9
Unassigned General Fund Balance
200 -I - _. ~. - j _- 16.0%
12.8% ~I ~'
~ 17.9%
150---_-- i 11.0%
11.1% -
- I __-- -}
- ~ 12.0% ~
Y
10.1 % '~ ', 10.7 % ~
7 8.9% ~
I 8.8% 123.4
4
$103
A
100 ~- ,
6 5103.4 - $702
- $96
7 $113.0
8.0%
.
.
$92.7 ~
$73.0
$63.1
so
-
a.o%
o _ I o.o%
2003 2004 2008 2006 2007 2008 2009 2010 2011
®Unassigned GF Balance ~ % of Budgeted GF Revenue
Policy = 8-12% of Revenues
to
5
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- - -_.~. -
ool Operating Fund -Revenues & Expenditures
For the Fiscal Year Ended June 30, 2011
(in millions)
Budeet Actual Variance
REVENUES:
City $ 325.0 $ 325.0 $ -
Local 3.1 3.2 0.1
School's Reserve & Other Funds 13.7 13.6 (0.1)
Commonwealth 299.6 301.1 1.5
Federal Government* 24.2 23.2 (].0)
Total Revenues $ 665.6 $ 666.1 $ 0.5
EXPENDITURES $ (681.4) $ (672.2) ** $ 9.2
Total Reversion to City q,7
' Includes $7.5 million ro ARRA Funding for Basic Sclaol Aid
*' Reflects encumbrances of$15.3 million
tt
ax Increment Financing Special Revenue Funds
For the Fiscal Year Ended June 30, 2011
(in millions)
Sand- Lynnhaven
bridge Mall CBD South
Revenues:
Real Estate Taxes $ 7.9 $ 1.8 $ 5.3
CBD Hotel Tax - - 0.5
Total Revenues $ 7.9 $ 1.8 $ 5.8
Expenditures $ - $ 1.8 $ -
Debt Service - - 5.5
Transfers to Gen Fund 8.0 - -
Total Expenditures $ 8.0 $ 1.8 $ 5.5
Excess of Revenues
Over Expenditures $ (0.1) $ 0.0 $ 0.3
Fund Balance -July 1 8.9 1.1 1.8
Fund Balance -June 30 8.8 1.1 2.1
CAFR Exhibits 15/16
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Outstanding Debt by Purpose as of June 30, 2011
Total Debt - $1.2486
Agriculture Resen~e
Program
3.08
General Goverumeut~
54.48
Storm N'ater
~j~'~---- 2.27
Water and Sewer
'~ l_ 14.36
Schools
25.81
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7
t
,._ -
FY 2012 General Fund Revenues & Expenditures
Compared to Budget Thru November 30, 2011
(in millions)
Revenues
Local (80.6% ofbudget)
State (17.1 %ofbudget)
Federal ( 2.3 % ofbudget)
Total Revenues
Annual YTD
13udeet Actual Variance
$ 767.4 $ 215.5 $ (551.9)
1623 30.8 (131.5)
21.3 8.3 (13.5)
$ 951.5 $ 254.6 $ (696.9)
E xpenditurc s/Encumbrances
City Operations
City Capital Projects
School Operatons
Schools Capital Projects
Total Expenditures/Encumbrances
Less Amounts Funded from Fund Balance
Outstanding Encmnbrance at 6/30/11
Approved Carryover Requests
City Capital Projects
City Operating Budget
Adjusted Expenditures/Encumbrances
$ 599.8 $ 281.8 $ 318.0
35.5 14.8 20.7
354.1 147.5 206.6
4.1 1.7 2.4
$ 993.5 $ 445.8 $ 547.7
$ 8.0
1.4
26.4
6.2
$ 951.5
76
8
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FY 2012 YTD Gen Fund Revenues & Expenditures
Compared to Historic Trend At November 30, 2011
2DD% - _ _
~~:.•,
ACTUAL REVENUES = $254.6M I ,"s.
eo% . _ __ __-_
ACTUAL EXPENDITURES=$445.8M a ~ 73.3%
54.8
45.2°..
49.2 °/.
~ 40% ~, r 7° 44.9 % 45.2
- 40.8
37.7
d :x.;...
Sc% 26.8% 25.5°%,
ri.o"~.
20% -__ _. 19.1% _ _-_.
14.6
9.9 % 9 3" 133%
1.7 % 4 % .9•/.
Sul Auq Sep Oc[ Nov Dec Tan Feb Mar Apr May ]un
~Rw Trend t%of F}"12 Rev Budges -~-Expenditure Trend -x-'h. of F}~12 Exp Budget
17
N EXT STEPS
• December Interim
• FY13 Budget Proposal
• FY13 Budget Adoption
Jan 24, 2012
Mar 27, 2012
May 8, 2012
18
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AUDIT PRESENTATION
CITY OF VIRGINIA BEACH
VIRGINIA
DECEMBER 13, 2011
. .. _ _ ' '
`.
Government Services
Overview
•Overview of Auditors' Opinion
•Required communication of significant
audit matters
• Questions
~.,~~.~, Sem~K
io
Auditors' Opinion on the Financial Statements
•Unqualified Opinion
•Accounting principles generally accepted in the United
States of America
•Material transactions and balances
•Compliance with laws and regulations material to the
financial statements
Required Communications
•Our responsibility under generally accepted
auditing standards:
•We assessed risk that the financial statements may
contain a material misstatement, either intentional or
unintentional
•We documented and considered internal controls to assist
us with our audit approach, not for the purpose of
providing assurance on those controls.
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Required Communicati
• Our Responsibility under Government Auditing
Standards (The Yellow Book)
•We reviewed and tested the City's compliance with laws
and regulations, noncompliance with which could have a
material impact on the financial statements.
•We reviewed compliance with applicable laws and
regulations identified in the Specifications for Audits of
Counties, Cities and Towns issued by the Auditor of
Public Accounts of the Commonwealth of Virginia
RegUlred Communications
• Our Responsibility under OMB A-133
•We performed procedures in order to express an opinion
on the City's compliance with requirements applicable to
major Federal programs. Our opinion is unqualified.
•We performed tests of controls to assess the City's ability
to detect material noncompliance with program
requirements, not to express an opinion on controls.
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Required Communications
•Independence
•In accordance with AICPA Rule 101, and the
independence standards contained in Government
Auditing Standards, we were, and continue to be,
independent with respect to the City of Virginia Beach.
•Accounting Policies
•The City implemented GASB 54, Fund Balance
reporting, in the current year.
•No transactions that lacked authoritative consensus.
Required Communications
•Estimates
•These statements include estimates, including:
•Allowance for doubtful accounts
•Other Post Employment Benefits liability
•Claims Liability
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Required Communications
•Significant Audit Findings
•There were no disagreements or difficulties in dealing with
management.
•There were no misstatements individually or in the aggregate
identified during our audit.
•There were no consultations with other accountants.
%:~
AUDIT PRESENTATION
CITY OF VIRGINIA BEACH
VIRGINIA
l ~;~ .
DECEMBER 13, 2011
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