12-09-2019 BPU RPT 11 - Laserfiche WebLink

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VV A T E R E N E R G y I I F F RIVERSIDE PUBLIC UTILITIES id& Board Memorandum P U B L T C U T T L T T I E S BOARD OF PUBLIC UTILITIES DATE: DECEMBER 9,2019 ITEM NO: 11 SUBJECT: RIVERSIDE PUBLIC UTILITIES 2019 FINANCIAL REPORT ISSUE: Receive and file the 2019 Riverside Public Utilities Financial Report for the fiscal year ending June 30, 2019. RECOMMENDATION: That the Board of Public Utilities receive and file the Riverside Public Utilities 2019 Financial Report for the fiscal year ending June 30, 2019. BACKGROUND: An independent audit is performed each year of the City of Riverside and its related entities' financial statements. On June 4, 2019, the City Council approved a five-year term with Lance, Soll & Lunghard to serve as independent external auditors for annual financial statements. Per Riverside Public Utilities (RPU) fiscal policy adopted by the Board of Public Utilities (Board) on May 23, 2016 and City Council on July 26, 2016, RPU shall prepare annual full -accrual financial statements, including the Management's Discussion and Analysis and the accompanying Notes to the Financial Statements. DISCUSSION: The City's independent auditor, Lance, Soll & Lunghard, LLP has completed the Fiscal Year 2018-19 annual audit of RPU's financial statements. The auditors provided an unmodified, or clean, opinion that RPU's financial statements are presented fairly and in conformity with generally accepted accounting principles. This clean audit opinion supports the fact that RPU observed compliance with generally accepted accounting principles and statutory requirements. Additionally, RPU had no audit findings or instances of material weaknesses or significant deficiencies identified during the audit process. Reserve Policy Compliance The Riverside Public Utilities Cash Reserve Policy provides a defined level of unrestricted undesignated reserves in both the Electric and Water Utility for strategic purposes to mitigate risk and maintain financial stability.