Comprehensive Annual Financial Report 2020

More documents

Recommendations

Info

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Red Oak, Texas’ basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 10, 2021, on our consideration of the City of Red Oak, Texas’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Red Oak, Texas’ internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Red Oak, Texas’ internal control over financial reporting and compliance. Waco, Texas May 10, 2021 2
MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Red Oak, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found preceding this report. FINANCIAL HIGHLIGHTS • On a government-wide basis, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $36,773,822 (Net Position). Of this amount, $8,943,287 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. • On a government-wide basis, the City's total net position increased by $13,862,795. This increase is attributable largely to capital grants and contributions of $3.5 million and the sale of land held for sale in the Industrial Development Corporation in the amount of $7.5 million. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $39,493,996. Approximately 10.5% of this total amount, $4,154,178 is unassigned and available for use at the City's discretion. • At the end of the current fiscal year, unreserved fund balance for the General Fund was $4,154,178 or 32.2% of the total General Fund expenditures. • The City's outstanding debt increased by $6,137,690 or 14.5% during the current fiscal year due to the issuance of bonds for various capital improvements, primarily including construction and resurfacing of roads, park improvements, and purchase and improvements for municipal buildings. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City's assets, deferred outflows, liabilities and deferred inflows, with the difference between these reported as Net Position. Over time, increases or decreases in Net Position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's Net Position changed during the most recent fiscal year. All changes in Net Position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). 3
Page 1 and 2: City of Red Oak, Texas Comprehensiv
Page 3 and 4: Required Supplementary Information
Page 5 and 6: THIS PAGE LEFT BLANK INTENTIONALLY
Page 9 and 10: THE CITY The City of Red Oak (the
Page 11 and 12: INDUSTRY During 2020, Compass Datac
Page 13 and 14: In order to be awarded a Certificat
Page 15 and 16: Government Finance Officers Associa
Page 24 and 25: Both of the government-wide financi
Page 26 and 27: Changes in Net Position Governmenta
Page 28 and 29: Governmental Activities Business-ty
Page 30 and 31: Capital Projects Capital project fu
Page 34 and 35: CITY OF RED OAK, TEXAS STATEMENT OF
Page 36 and 37: CITY OF RED OAK, TEXAS BALANCE SHEE
Page 42 and 43: CITY OF RED OAK, TEXAS RECONCILIATI
Page 48 and 49: Governmental fund financial stateme
Page 50 and 51: The costs of normal maintenance and
Page 52 and 53: Committed fund balance includes fun
Page 54 and 55: V. CAPITAL ASSETS Capital asset act
Page 56 and 57: VII. LONG-TERM DEBT Long-term debt
Page 58 and 59: Bonds payable currently outstanding
Page 60 and 61: Revenue Bonds - Governmental Activi
Page 62 and 63: The actuarial assumptions were deve
Page 64 and 65: The City reported $384,378 as defer
Page 66 and 67: OPEB Expense, Deferred Outflows, an
Page 70 and 71: CITY OF RED OAK, TEXAS SCHEDULE OF
Page 72 and 73:
THIS PAGE LEFT BLANK INTENTIONALLY
Page 74 and 75:
CITY OF RED OAK, TEXAS SCHEDULE OF
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
CITY OF RED OAK, TEXAS COMBINING BA
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
CITY OF RED OAK, TEXAS NET POSITION
Page 92 and 93:
CITY OF RED OAK, TEXAS CHANGES IN N
Page 94 and 95:
CITY OF RED OAK, TEXAS CHANGES IN N
Page 96 and 97:
CITY OF RED OAK, TEXAS FUND BALANCE
Page 98 and 99:
CITY OF RED OAK, TEXAS CHANGES IN F
Page 100 and 101:
CITY OF RED OAK, TEXAS ASSESSED VAL
Page 102 and 103:
CITY OF RED OAK, TEXAS DIRECT AND O
Page 104 and 105:
Page 106 and 107:
CITY OF RED OAK, TEXAS RATIOS OF GE
Page 108 and 109:
Page 110 and 111:
CITY OF RED OAK, TEXAS RATIOS OF GE
Page 112 and 113:
CITY OF RED OAK, TEXAS DIRECT AND O
Page 114 and 115:
CITY OF RED OAK, TEXAS PLEDGE-REVEN
Page 116 and 117:
Page 118 and 119:
CITY OF RED OAK, TEXAS FULL-TIME EQ
Page 120 and 121:
CITY OF RED OAK, TEXAS OPERATING IN
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Compliance and Other Matters As par
Page 128:
show all

Comprehensive Annual Financial Report 2020

Create successful ePaper yourself

Delete template?

Save as template?