04101967 Regular Meeting - Laserfiche WebLink

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I Honorable Mayor, City Councilman, and City Manager -2- Capital outlay for utility and general fixed assets, less reimbursement of $105,733 from 1956 Bond Fund Retirement of Utility Fund revenue bonds DEFICIENCY OF CASH FOR BUDGETARY REQUIREMENTS Other cash provided from: Net increase in General Fund liabilities other than accounts payable Increase in Utility Fund current liabilities ($17,659) and customers' deposits ($2,678) Other uses of cash: Architects' fees treated Genera 1 Fund Increase in other Utility as deferred charge in $1,500 Fund assets 5.969 INCREASE IN COMBINED FUNDS CASH $ I Increase in Utility Fund cash Decrease in General Fund cash INCREASE IN COMBINED FUNDS CASH April 10, 1967 204.938 $ 70,001 77 .000 $ (6,999) 15,718 20.337 $ 29,056 7.469 21,587 $ $ 34,282 (12.695) 21 ,587 This combined statement shows that the City had $6,999 deficiency in cash to meet its total budgetary requirements and that a net increase in cash resulted by incurring additional debt. The statement does not show that the General Fund had incurred at December 31, 1966, an additional $22,655.96 in accounts payable which were treated as undistributed costs chargeable to 1967 budget, therefore not included in the above operating expenditures or other uses of cash. With our assistance since 1963 the City adopted a new chart of accounts and a system of budgetary accounting designed to provide management with monthly financial reports which compare actual revenues and expenditures with budgeted amounts. The value of this system has been greatly reduced by the City's change in fiscal closings, causing twelve-month budgets to run for periods of fifteen and eighteen months. Our audit reports have covered the year ended March 31, 1963; the period of fifteen months ended June 30, 1964; the year ended June 30, 1965; and the period of eighteen months ended December 31, 1966. And with the recent adoption of the new city charter, the fiscal year will end September 30, causing the next audit report to cover a period of nine months. These irregular fiscal periods make very difficult the accumulation and use of statistics for management guides. I The importance of the budget and comparative financial data and statistics cannot be over emphasized, and once the budget has been adopted it should be abandoned or changed only with good cause. A look at some figures relating to the City's budget for the year ended June 30, 1966, indicates wide variances in the General Fund between budgeted and actual amounts, as follows: