City Audit, Annual Financial Report demonstrate transparency, financial stability

Posted December 5th, 2012 in general by btownsend

On Monday, November 19th, Sikich LLP - the City’s auditors – presented the results of its work for 2012 and summarized the City’s Comprehensive Annual Financial Report (CAFR) for the City Council’s Government Operations Committee.

The auditor’s opinion was extremely favorable and cited several key factors that highlight the financial management of the City, including:

  1. full and complete cooperation from City officials and staff during the audit process,
  2. a comprehensive system of internal controls, and
  3. a new software system implemented in 2011 that improves accountability and oversight.

The audit disclosed no instances of noncompliance that are required to be reported. In addition, there were no deficiencies in internal control over compliance that are considered material weaknesses. As a result, the City received a “clean and unqualified” opinion from the auditors.

The Comprehensive Annual Financial Report (CAFR) contains the annual financial statements of the City. The City is required by State statute to publish externally-audited financial statements every year. The City is not required by law to produce a CAFR and, in doing so, the City goes above and beyond in the production of documents that share financial information with residents, businesses, and other stakeholders.

In 2011, the City of St. Charles received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting. This marks the 26th consecutive year that the City has received this award.

The 2012 CAFR of the City highlighted the following financial information:

  • Assets exceeded liabilities by $221 million as of April 30, 2012.
  • The City has $17 million in unrestricted Net Assets.
  • Revenue from Governmental Activities (the City’s basic services including public works, police, fire, streets, community development, and general administration) decreased by $300,000 for the year. Expenses for Governmental Activities decreased by $200,000.
  • For the City’s General Fund (the chief operating fund), a surplus of approximately $121,000 was realized in FY2011-2012.
  • The City of St. Charles has $290 million in capital assets (land, buildings, equipment, infrastructure, etc.).

Residents can rest assured that the City continues its practice of matching revenue and expenditure streams. Continued vigilance and management of expenditures will be employed to maintain the City’s good fiscal health.

You can view a complete copy of the Comprehensive Annual Financial Report on the City’s website here.

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