SOUTHWEST COMMUNITIES FINANCING AUTHORITY – JPA ANIMAL SHELTER
STAFF REPORT
DATE: February 2, 2017
SUBJECT: 6A) SCFA Audited Financial Statements for the period ended June 30, 2015; 6B) AFV Audited Financial Statements for the period ended June 30, 2015; 6C) Credit Enhancement Fund Balance; and 6D) Contingency / Reserve Fund Balance
AGENDA ITEM NUMBERS: 6A, 6B, 6C and 6D
RECOMMENDED MOTION: Receive and File.
REPORT:
6A) SCFA Audited Financial Statements: The attached Independent Audit, prepared by Brown Armstrong CPAs, is for the period ending June 30, 2016. There were no significant findings or difficulties encountered with this audit.
6B) AFV Audited Financial Statements: The attached Independent Audit, prepared by Prudhomme Associates CPAs, is for the period ending June 30, 2016 (with comparative totals for 2015). There were no significant findings. Changes in AFV’s net assets and its cash flows for the years then ended were found to be in conformity with accounting principles generally accepted in the United States of America.
6C) Credit Enhancement Fund Balance: The Credit enhancement Fee was approved by the Riverside County Board of Supervisors on February 6, 2007 along with the Third Amendment to the SCFA JPA agreement, which added Wildomar as a participating city. The intent of the Credit Enhancement Fee collected from member agencies is to satisfy annual lease payments in the event a member city fails to make its payment(s) to the County. On September 9, 2010 the SCFA Board of Directors approved Wildomar’s proposal to join the SCFA which included loaning the Credit Enhancement Fee collected by the County from member agencies to Wildomar for two years. Wildomar received the Credit Enhancement loan for two years. The attached provides an accounting of the Credit Enhancement Fund Balance to date.
6D) Contingency/Reserve Fund Balance: The Contingency Fund was established by the SCFA Board of Directors on March 7, 2012 for purposes of having cash available to pay SCFA and animal shelter unexpected repairs and fees up to $5,000 with Program Administrator approval, $5,001 - $15,000 with Executive Management Committee (EMC) approval, or $15,000 - $25,000 with Board of Directors Approval. The Contingency Reserve Fund is monitored by AFV through its Revenue/Expense Allocation (form is attached under Section 8 of this agenda packet). The County maintains the fund for JPA purposes as mentioned above; however only County funds have been deposited to this fund. AFV holds all credits identified on the Expense/Revenue Allocation Form.