To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
SUBJECT:
title
Outstanding Financial Transactions
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive the staff report and provide direction as needed; and
2. Authorize the Auditor-Controller (AC) to post all remaining financial transaction in FY 2019-20 prior to closing of the fiscal year.
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SOURCE OF FUNDING:
Numerous County Funds
DISCUSSION:
On Nov. 23, 2020, staff brought your Board a report on a number of financial concerns surrounding outstanding financial transactions. Staff followed that report with a budget update on Jan. 26, 2021. Both of these reports detailed the below items reported as outstanding and today's report provides an update following recent developments.
Outstanding Item #1: Closing of FY 2019-20
In the normal course of business, the county's books are closed by the Auditor-Controller (AC) following a reasonable period of time after the end of a given fiscal year (June 30). Closing the books means that all financial transactions have been properly recorded and accounted for in the county's accounting system. After the fiscal year is closed, the county's financial statements are prepared. Then, independent auditors audit these financial statements, as required by law.
In the past, closing the fiscal year was completed in September or early October, approximately 3 months after the end of the prior fiscal year. Through the Nov. 23 report, your Board heard from the Auditor-Controller on year-end closing and she at that point indicated that the year would close on Dec. 18. This did not happen.
Update:
On Feb. 11, 2021, the AC sent fiscal staff an email informing them of a decision to close the fiscal year 2019-20 "as is" while using prior period adjustments to address outstanding financial transactions in FY 2020-21. As of Feb. 19, the closing had not been finalized.
This decision has long-term ...
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