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Home My WebLink About96.Item 4 PPP Admin Committee 11-08-2017_CAFRPresenter: Lina Hsiao Accounting Supervisor Comprehensive Annual Financial Report For the Year Ended June 30, 2017 Comprehensive Annual Financial Report (CAFR) •Important to bond rating agencies and investors •Meets GFOA’s Excellence Award Standard •Fully explains the financial operations of OCSD •Prepared for the 24rd consecutive year Financial Measurements Change inCash and Investments Change in Cost Change in Net Position Financial Position Available Spending Resources Financial Performance Net Position Increased $122.7 Million (in thousands)PercentageIncrease Increase(Decrease)(Decrease) Assets Current & Other Assets $600,066 $ 609,676 $ (9,610)-1.6% Capital Assets, Net 2,603,458 2,569,440 34,018 1.3% Deferred Outflows 74,510 90,762 (16,252)-17.9% Total Assets/Def. Outflows $3,278,034 $3,269,878 $ 8,156 0.2% Liabilities Current Liabilities $99,376 $ 102,319 $ (2,943)-2.9% Noncurrent Liabilities 1,107,765 1,225,948 (118,186)-9.6% Deferred Inflows 29,671 23,039 6,632 28.8% Total Liab./Def. Inflows $1,236,809 $ 1,351,306 $ (114,497) -8.5% Net Position Net Investment in Capital Assets $1,504,898 $ 1,429,269 $ 75,629 5.3% Unrestricted 536,327 489,303 47,024 9.6% Total Net Position $2,041,225 $ 1,918,572 $ 122,653 6.4% 2017 2016 Net Position Increased $122.7 Million Over the Prior Year +156.7 M Increase in Prior Year Change in Net Pos. +6.8 M Reverse Prior Year Restatement (GASB 73) +10.3 M Increase in Non-operating Revenues -2.1 M Decrease in Service Charges & Fees -1.6 M Decrease in CFCC +3.2 M Decrease in Operating Expense -44.8 M Increase in Non-operating Expense -5.8 M Increase in Depreciation & Amort. $122.7 M Increase in Net Position over the Prior Year Source of Funds Use of Funds $1,919 M $2,041 M$1,701 M $1,822 M $1,762 M FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 Change in Net Position –Last 5 Years +$103.7 M +$121.6 M -$60.5 M +$156.7 M +$122.7 M Cash and Investments Decreased $33.7 Million Cash Provided by: $195.3 M Net Proceeds from Debt Issuance (Refunding) 98.8 M Net Operating Activities 88.0 M Property Tax Revenues 15.9 M CFCC Fees 7.9 M Interest Received 4.3 M SARI Line Project Reimbursements -4.6 M Unrealized Loss on Investments $ 405.6 M Cash Provided Cash and Investments Decreased$33.7 Million (cont’d)Cash Used by: $212.5 M Debt Retirement (Refunded) 104.5 M Net Capital Outlay 47.1 M Debt Interest Payments 35.6 M Debt Principal Payments 38.8 M Sewer Service Transfer and Other Obligation 0.8 M Debt Issuance Costs $ 439.3 M Cash Used $405.6 M Cash Provided -$439.3 M Cash Used = $33.7 M Decr. Under (Over) Budget Actual Budget Personnel Cost $89,289,800 $91,604,774 $(2,314,974)-2.6% Contr. & Prof. Svc.28,799,250 27,239,977 1,559,273 5.4% Materials & Supplies 16,148,250 14,863,560 1,284,690 8.0% Repairs & Maint.16,722,411 14,797,760 1,924,651 11.5% Utilities 6,842,240 6,118,857 723,383 10.6% Other 7,736,599 6,314,237 1,422,362 18.4% Cost Allocation (19,182,030)(20,137,574)955,544 -5.0% Total Oper. Expense $146,356,520 $140,801,591 $5,554,929 3.8% Collection, Treatment and Disposal Cost –Comparison of Budget to Actual For the Year Ended June 30, 2017 Operating Cost Under (Over) Budget Explanation Salaries & Wages $(2,314,974)Higher than anticipated changes in salaries and lower retirements. Repairs & Maint.1,924,651 Unanticipated decreases in repair materials, services, and agreements. Utilities 723,383 New operating strategy implemented and decreased activities and outfall pumping. Other 1,422,362 Lower than anticipated training and furniture and fixture spending. Subtotal Under Budget $1,755,422 Collection, Treatment and Disposal Cost – Comparison of Budget to Actual (cont’d) For the Year Ended June 30, 2017 Collection, Treatment & Disposal Costs = $140.8 Million Decrease of $0.6M or 0.4% from the prior year: •Salaries and Benefits decreased $1.4 M, or 1.5% The decrease is primarily due to lower Retirement Benefit costs. •Cost allocation increased $0.8 M, or 4.0% Cost allocation out to the capital improvement program (CIP) increased as a result of the increase in the overall CIP and indirect costs used to support Operations. Collection, Treatment & Disposal Costs = $140.8 Million (cont’d) •Repair Materials & Services increased $1.8 M, or 13.8% The increase is primarily due to a retro adjustment payment to IRWD for Harvard Avenue Trunk Sewer (HATS) and an increase in repair materials purchases. •Contractual Services increased $0.7 M, or 2.9% The increase is due to an increases in Security Services , services for the Civil Assets Management Program (CAMP), and Temporary Services due to position vacancies and additional staffing needs. The increase somewhat is offset by a saving of renegotiation of composting contract rates. •Materials and Supplies decreased $1.0 M, or 6.3% The decreases are mainly brought about by chemical process optimization and a decrease in unit costs, offset by an increase of purchases for tools and equipment from the prior year. Cost Per Million Gallons Cost Per Million Gallons has Leveled Out since Reaching Full Secondary Treatment Standards and Providing the Most Optimum Treated Water for GWRS Auditor’s Report Unmodified opinion on Financial Statements No report on Internal Controls as no material weaknesses or significant deficiencies were uncovered. Questions?