2022-01-19 City Council Item No. 12.1 ACFR Presentation FY Ending June 30, 2021 Presentation Regular MEETING - Additional Meeting MaterialsCity of Menifee
Menifee, California
Annual Comprehensive Financial Report
For the fiscal year ended June 30, 2021
Scott Manno, CPA, CGMA
Engagement Partner
January 19, 2022
Present the City’s financial position and results of its
operations fairly and in conformity with generally
accepted accounting principles
Adopt sound accounting policies
Provide reasonable accounting estimates
Establish and maintain internal controls
Prevent and detect fraud
2
City’s Responsibilities
Obtain reasonable, not absolute, assurance that the financial
statements are free of material misstatement
Examine, on a test basis, evidence supporting amounts and
disclosures
Assess accounting principles used, estimates made, and
evaluate the overall financial statement presentation
Review the City’s internal control policies and procedures
Express an opinion on the City’s financial statements
Communicate internal control (GAGAS letter) and required
communications (SAS 114 letter)
3
Auditor Responsibilities
Financial statements are fairly presented in all material
respects –Unmodified Opinion –highest level of
assurance
Significant accounting policies have been consistently
applied
Estimates are reasonable
Disclosures are properly reflected in the financial
statements
4
Auditor’s Opinion
No disagreements with management
No material errors or irregularities discovered
No significant accounting issues discovered
Implementation of Governmental Accounting Standards
Board Statement No. 84, Fiduciary Activities (GASB 84)
Obtained GFOA Award for Excellence in Financial
Reporting in prior years and applying again for
Award in 2022
5
Other Key Points
Thank you!
To the Citizens of Menifee
To the City Council and Management
To the Finance Department Team
6
City of Menifee
Fiscal Year Ending June 30, 2021
Financial Statements
Ann-Marie Etienne: Financial Services Manager
Wendy Preece: Deputy Finance Director
City Council Meeting January 19, 2022
Three Sections to the Financial
Statements
1.Introductory Section Provides general information about the City, its organizational
structure, leadership and economic condition;
2.Financial Section Includes the basic financial statements, notes to the basic
financial statements, management’s discussion and analysis
(MD&A), the report of the independent auditors and other
supplementary information;
3.Statistical Section Provides facts and figures about financial trends in the City,
revenue and debt capacity, demographic and economic
information and the operations of the City.
-1-
126 Individual Funds
General Fund (2)
1 General Fund with 21 Individual Departments
1 Measure DD General Fund
Internal Service Fund (3)
1 Information Technology
1 Fleet Services
1 Facility Maintenance
Special Revenue Funds (116)
30 Lighting, Landscape & Maintenance Districts (LLM&D) 1 Gas Tax
31 Development Impact Fee (DIF)1 Measure A
46 Community Facility Districts (CFD)1 Air Quality Mgmt. District (AQMD)
6 Community Service Areas (CSA)1 P.E.G.
3 Grant Funds (Grant Fund, CDBG Fund, SLESF Fund)1 SB 1 Road Maintenance
Capital Projects Fund (2)Debt Service Fund (1)
1 Capital Project 1 Debt Service
1 TUMF Fund
Fiduciary Funds (2)
1 Trust Fund
1 Veterans Memorial Fund -2-
Total Governmental Funds Revenue
$99,585,638
-3-
Intergovernmental = VLF,
Sheriff fees, State SB 90,
Gas Tax, Measure A,
WRCOG TUMF
reimbursements and Grants
Use of Money and Property
= Interest
Total Governmental Funds Revenue
ACFR page 17 -4-
Category FY 2020 FY 2021 Change % Change
44,111,372$ 49,468,537$ 5,357,165$ 12.14%
10,011,450 10,914,819 903,369 9.02%
16,762,108 19,146,908 2,384,800 14.23%
8,177,911 9,431,071 1,253,160 15.32%
1,805,179 63,611 (1,741,568) -96.48%
598,244 329,487 (268,757) -44.92%
5,559,177 9,600,934 4,041,757 72.70%
117,986 630,271 512,285 434.19%
87,143,427$ 99,585,638$ 12,442,211$ 14.28%Total revenues
Charges for Service
Fines & Forfeitures
Developer Participation
Miscellaneous
Use of Money & Property
Intergovernmental
Licenses and Permits
Taxes
Total Governmental Funds
Expenditures $77,265,419
-5-
Total Governmental Funds Expenditures
ACFR page 17 -6-
FY 2020 FY 2021 Change % Change
9,981,475 13,962,912 3,981,437 39.89%
33,869,480 29,174,294 (4,695,186) -13.86%
5,196,946 5,377,780 180,834 3.48%
3,977,479 4,943,713 966,234 24.29%
20,997,861 7,041,057 (13,956,804) -66.47%
18,164,545 13,332,826 (4,831,719) -26.60%
Debt Service 1,615,485 3,432,837 1,817,352 112.50%
93,803,271$ 77,265,419$ (16,537,852)$ -17.63%
Public Safety
Category
General Government
Capital Outlays
Total Expenditures:
Engineering and Public Works
Community Development
Community Services
Governmental Fund Balances
-7-ACFR page 17
Fund Descriptions FY 2020 FY 2021 Change
General Fund (DD, ISF and Trust Fund)39,781,027 53,752,706 13,971,679
DIF Funds 31,434,728 36,188,644 4,753,916
Other Funds 7,504,080 9,319,645 1,815,565
CFD Funds 4,082,171 4,637,412 555,241
LLMD Funds 2,995,381 3,167,000 171,619
Internal Service Funds 1,825,049 2,459,216 634,167
CSA Funds (57,962) 599,853 657,815
Grant Funds 291,295 571,735 280,440
Totals 87,855,769$ 110,696,211$ 22,840,442$
Total General Fund Revenues
(Inclusive of DD, ISF and Trust Fund)
$72,714,713
Intergovernmental
= VLF, Sheriff
report and
repossession fees,
State SB 90
revenues
Use of Money and
Property = Interest
-8-
Total General Fund Revenue
(Inclusive of DD, ISF and Trust Fund)
ACFR page 17 -9-
Category FY 2020 FY 2021 Change % Change
43,230,255$ 49,445,591$ 6,215,336$ 14.38%
10,011,450 10,914,819 903,369 9.02%
7,246,904 7,843,701 596,797 8.24%
3,127,661 3,999,653 871,992 27.88%
852,864 67,691 (785,173) -92.06%
598,244 329,487 (268,757) -44.92%
117,986 113,771 (4,215) -3.57%
65,185,364$ 72,714,713$ 7,529,349$ 11.55%
Taxes
Licenses and Permits
Intergovernmental
Charges for Service
Use of Money & Property
Fines & Forfeitures
Miscellaneous
Total revenues
Total General Fund Expenditures
(Inclusive of DD, ISF and Trust Fund)
$55,895,128
-10-
Total General Fund Expenditures
(Inclusive of DD, ISF and Trust Fund)
ACFR pages 17 -11-
FY 2020 FY 2021 Change % Change
9,348,685$ 12,001,638$ 2,652,953$ 28.38%
33,199,921 29,134,252 (4,065,669) -12.25%
5,196,946 5,292,778 95,832 1.84%
1,993,991 2,022,847 28,856 1.45%
4,570,234 4,541,463 (28,771) -0.63%
4,479,632 2,902,150 (1,577,482) -35.21%
58,789,409$ 55,895,128$ (2,894,281)$ -4.92%
Capital Outlay
Total Expenditures:
Category
General Government
Public Safety
Community Development
Community Services
Engineering & Public Works
General Fund –Fund Balance (Inclusive of DD, ISF and Trust Fund)
-12-
FY 20/21 Revenues Adjusted Budget Actual Variance
Taxes 44,854,145 49,445,591 4,591,446
License & Permits 9,750,000 10,914,819 1,164,819
Intergovernmental 7,811,177 7,843,701 32,524
Charges for Service 3,619,912 3,999,653 379,741
Use of money 437,800 67,691 (370,109)
Fines & Forfeitures 384,922 329,487 (55,435)
Miscellaneous 119,315 113,771 (5,544)
Total ACFR Revenues 66,977,271$ 72,714,713$ 5,737,442$
Transfer In 4,490,410 4,576,614 86,204
Total Reveneus with Transfers 71,467,681$ 77,291,327$ 5,823,646$
FY 20/21 Expenditures Adjusted Budget Actual Variance
General Government 14,263,689 12,001,638 (2,262,051)
Public Safety 34,102,116 29,134,252 (4,967,864)
Community Development 7,501,557 5,292,778 (2,208,779)
Parks & Recreation 2,712,332 2,022,847 (689,485)
Engineering & Public Works 5,978,615 4,541,463 (1,437,152)
Capital Outlay 14,381,380 2,902,150 (11,479,230)
Total ACFR Expenditures 78,939,689$ 55,895,128$ (23,044,561)$
Transfers Out 6,797,575 6,797,575 -
Total Expenditures with Transfer 85,737,264$ 62,692,703$ (23,044,561)$
FY 20/21 Increase in Fund Balance:14,598,624$
ACFR page 17
Capital Assets
ACFR page 33 -13-
Asset Type FY 2020 FY 2021 Change
Land & Right of Way 21,673,056 23,698,907 2,025,851
Construction in Progress 30,818,727 29,616,165 (1,202,562)
Building, Equip. & Infrastructure 271,953,760 322,282,684 50,328,924
Less Accumulated Depreciation (86,658,705) (99,621,377) (12,962,672)
Totals 237,786,838$ 275,976,379$ 38,189,541$
Murrieta Road Resurfacing
McCall Blvd to Salt Creek
-14-
Ashdale Way Drainage Improvements
-15-
Scott Road/Murrieta Road
Traffic Signal
-16-
Ethanac Road/Sherman Road
Improvements
-17-
Hillpointe Community
Asphalt Overlay
-18-
Centennial Park Lighting
-19-
Award for Excellence in Financial Reporting
-20-
Questions?Thank You.