From the June 11, 2009 Miami Commission Meeting discussion of the 2008 Financial Statements. Ms.

. Gomez: Diana Gomez, Finance director. This is a discussion item in accordance with the financial integrity principles. I'll be presenting the comprehensive annual financial report for the year ended September 30, 2008, which was issued on March 30, 2009. The focus of this presentation is on the results of operation for fiscal year 2008, and this presentation will be limited to those actual results. The integrity ordinance also requires that the single audit and management letter be presented by the City's external auditors. The City's auditors are here and will answer any questions you have regarding the findings and recommendations. Okay. When we look at the financial statements, the City received an unqualified opinion or clean opinion for the fiscal year 2008 audit. The opinion -- this opinion is the highest level of assurance that the financial statements are free from material misstatement. The financial statements were issued - this year, the financial statements were issued on time. You recall in the previous several years we had been late in issuing the financial statements. However -- and that was due to a lack ofadequate personnel, as well as the financial systems implementation that we were dealing with. This year, though, we did -- we were able to issue timely because we were granted additional positions, as well as the system is operational. We have submitted our financial reports to the GFOA's (Government Finance Officers Association) Excellence in Reporting certificate program, and we are anticipating to receive that honor again this year. The unqualified opinion and the timely issuance of the financial statements assisted the City with maintaining its bond rating. We recently hosted all three agencies -- rating agencies, and they reaffirmed the City's bond ratings. All three noted -- all three of their aiding agencies noted strong financial management practices as a basis for maintaining the current rating. Additionally, we were able to sell the last series of the Homeland Defense bonds last -- a few weeks ago, and those bonds sold without insurance. That represented a -- an immediate cash savings of $670,000 to the City, and the interest rate was at 5.096. Okay. When looking -- when reviewing the financial statements -- we start at the fund level financial statements. Page 17 shows the statement of revenues, expenditures, and changes in fund balance. The focus for the purpose of this presentation is on the general fund only, as of September 30, 2008. For September 30, revenues totaled $472 million, which is down slightly from the prior year. Expenditures totaled 525 million; again, down slightly from the prior year. And transfers -other financing sources, transfers, in and out, total of 46 million, which was increased from the prior year. Fund balance decreased for fiscal year 2008 by 6.9 million. This decrease in fund balance was due primarily to expenditures in excess of original budgets. Decrease was offset by increasing transfers into the general fund from capital project funds, unused general fund contributions, public services tax, special revenue fund, and recovery of indirect costs from other special revenue funds and capital project funds. The ending fund balance for the general fund at September 30, 2008 was $93,577,448. When we look at the balance sheet, on page 15 of the CAFR (Certificate of Achievement in Excellence for Financial Reporting), again, the focus is on the general fund. Assets for the year total $162 million, which is decreased from the prior year mainly due to reduction in actual cash on hand at year end. Liabilities for the year totaled 68.4 million, which decreased from prior year mainly due to the reduction of accounts payable on hand at 9/30. The fund balance -- when you look at the fund balance, fund balance includes three sections, reserve fund balance, unreserved designated fund balance, and unreserved undesignated fund balance. Reserve fund balance includes amounts reserved for prepaid expenses and a Building Department reservation in the current year. This amount represents amounts collected in excess of expenditures which must be reserved and used for the Building Department operations in subsequent years. Unreserved undesignated fund balance total 44.6 million, which is available to meet future needs of the City. This amount also meets the financial integrity requirement, which is the 10 percent of the average three years of revenue set aside in unreserved undesignated fund balance. In unreserved designated fund balance, this amount includes also amounts that are available for subsequent years, and this -- I'm sorry.