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Home My WebLink About12132011 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 1 ~: 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 . ,: ~.' 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 _~_ 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 z - - -_.~. - 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 tz 6 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 14 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 ~: _ ., ..u.. 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 9 i -~ s ~~_ ~ . ~ r~.,> , ~ _.~ _ ~ ,1 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. 11 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. 12 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 13 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 14