Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
Year ended June 30, 2009
Major Features of City of Santa Monica's Government-wide and Fund Financial Statements
Fund Statements
Government-wide
Statements Governmental Funds Proprietary Funds Fiduciary Funds
Scope
Entire City gov ernment
(except fiduciary funds)
The ac tivies of the City that
are not proprietary or fiduciary,
such as police, fire, and library
Activities the City operates
similar to private businesses
such as the water and sewer
system , parking facilities and
bus line
Instances in which the City is the
trustee or agent for someone
else's resources
Required financial
statements
- Statem ent of net as sets - Balance sheet - Statement of net assets
- Statem ent of activities - Statement of revenues, - Statement of revenues,
expenditures, and changes expenses, and changes in
in fund balances
net assets
- Statement of cash flows
- Statement of fiduciary net
assets
- Statement of changes in
fiduciary net assets
Accounting basis
and measurem ent
focus
Acc rual accounting and
econom ic resourc es
foc us
Modified accrual accounting
and current financial
resources focus
Accrual accounting and
economic resources focus
Because the C ity only has
Agency funds, there is no
measurement focus.
Type of
asset/liability
information
All ass ets and liabilities,
both financial and
c apital, short term and
long-term
Only assets expected to be
us ed up and liabilities that
come due during the year or
soon thereafter; no capital
as sets or long-term debt
included
All assets and liabilities, both
financial and capital, and shortterm
and long-term
All assets and liabilities, both
short-term and long-term; the
City's fiduciary funds do not
currently contain capital assets,
although they can
Type of
inflow/outflow
information
All revenues and
expenses during year,
regardles s of when c as h
is rec eiv ed or paid
Rev enues for which cash is
received during or soon within
90 days of year end;
expenditures when goods or
serv ic es have been received
and payment is due
All revenues and expenses
during year, regardless of
when cash is received or paid
All revenues and expenses
during year, regardless of when
cash is received or paid
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 statements of a
private-sector business.
The statement of net assets presents information on all the City’s assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as 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 result in cash flows in future fiscal periods.
The government-wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include public safety (police and fire), streets, library,
cultural and recreation, parks, planning and zoning, housing and community development, and general
administrative support. The business-type activities of the City include water, wastewater, stormwater,
solid waste management, pier, civic auditorium, airport, special aviation services, cemetery, bus lines and
parking structures and lots.
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