Title
FY16-17 THIRD QUARTER FINANCIAL REPORT
Staff Contact and Presenter: Vicki Rios, Director, Budget and Finance
Staff Presenter: Lisette Camacho, Assistant Director, Budget and Finance
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Purpose and Policy Guidance
Recommendation
The purpose of this item is to provide Council with a FY16-17 Third Quarter Financial Report for the major operating funds; thus, providing information regarding the actual results of the city's revenue collections and expenditures through March 31, 2017, including budget to actual comparisons and an assessment of any foreseeable financial issues.
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Background
March 31, 2017 marks the end of the third quarter of the city's fiscal year. As part of the annual budget process, it is important to compare the actual financial results with the budgets and determine if adjustments to budgets or forecasts are necessary. Best financial practice calls for periodic analysis of the variances between the budget or forecast and the actual financial results. This variance analysis identifies any significant factors that may influence revenue collections and expenditure levels. The analysis also serves to improve future forecasts and identify any foreseeable financial issues so they can be proactively addressed.
Analysis
The attached report contains detailed results and analysis of the major operating funds. Overall, the results of the analysis for the major funds primarily show anticipated financial results for the fiscal year.
Staff will continue to monitor the actual results and prepare financial reports quarterly.
Previous Related Council Action
This analysis of revenues and expenditures is based on the budget for FY16-17 which was adopted by the Council on June 14, 2016.
A FY16-17 Mid-Year Financial Report was provided to Council on February 7, 2017.
A FY15-16 Mid-Year Financial Report was provided to Council on February 16, 2016 and a FY15-16 Third Quarter Financial Report was provided to Council on May 3, 2016.
A FY14-15 Mid-Year Financial Report was provided to Council on February 17, 2015 and a FY14-15 Third Quarter Financial Report was provided to Council on May 19, 2015.
A FY13-14 Mid-Year Financial Report was provided to the Council on March 4, 2014, a FY13-14 Third Quarter Financial Report was provided to the Council on May 20, 2014, and a FY13-14 Fourth Quarter Financial Report was provided to the Council on October 21, 2014.
Community Benefit/Public Involvement
The community benefit of a third quarter financial report is to provide solid financial analysis which compares actual results to the budget. This helps identify any significant factors that may influence revenue and expenditure levels, improves future forecasts and budgets, and identifies any foreseeable financial issues so they can be proactively addressed.
Budget and Financial Impacts
This report is for information purposes only.