PPT ACFR Alamo Heights FY21

1. City of Alamo Heights, Texas
Annual Comprehensive Financial Report
Fiscal Year Ended September 30, 2021

2. What’s in the ACFR
• Introduction
• Transmittal Letter from the City Manager
• GFOA Certificate of Achievement Award for Excellence in Financial
Reporting for the Fiscal Year Ended September 30, 2020 (prior year
report)
• Independent Auditor’s Report
• Management Discussion and Analysis
• Government-Wide and Fund Financial Statements
• Notes to the Financial Statements
• Required Supplementary Information
• Other Supplementary Information
• Combining & Individual Financial Statements
• Statistical Tables

3. Independent Auditor’s Report
• Audit standards to follow
• Generally Accepted Auditing Standards
• Purpose
• To form an independent opinion on whether the financial
statements are presented in accordance with Generally Accepted
Accounting Principles (GAAP).
• Independent opinion on the financial statements
• Audit is “unmodified”
• This is the best opinion that can be given for an independent audit.
It means we have no modifying statements in our opinion letter.

4. Management Discussion and Analysis
• Financial Highlights
• Overview of the Financial Statements
• Government-Wide Financial Analysis
• Financial Analysis of the City’s Funds
• Budgetary Highlights
• Capital Assets and Debt
• Requests for Information

5. Financial Highlights
• Government-Wide Financial Statements
• Assets of the City exceeded its liabilities (Net Position) by $22.9
million at September 30, 2021.
• Governmental Activities - $12.4 million
• Business-type Activities - $10.5 million
• Net Position increased by $2.5 million from 2020.
• Governmental Activities - $1.75 million
• Increase in sales taxes and property tax
• Business-type Activities - $750 thousand
• Includes budgeted transfer of $70 thousand to General Fund

6. Financial Highlights (Continued)
• Fund Financial Statements
Governmental Funds:
• The General Fund’s fund balance at the end of the 2021 fiscal
year was $5.85 million, an increase of $117 thousand from 2020.
• Unassigned fund balance was $5.77 million
• Approximately 7 months operating reserve
• The combined fund balance for all funds was $23.87 million, an
increase by $15.35 million from 2020.
• The City’s fund balances at September 30, 2021 were as follows
• Restricted - $13.8 million
• Committed and assigned- $3.2 million and $1.0 million for City
projects

7. Financial Highlights (Continued)
• Fund Financial Statements (Continued)
Proprietary Fund:
• Water fund net position increased $750 thousand to $10.5
million.
• Unrestricted Net Position was $2.5 million
• At September 30, 2021 the City had working capital of $2.9
million for the utility operations; an increase of $900 thousand
from prior year’s working capital ratio.
• Almost 9 months operating reserves of working capital

8. Letter on Conduct of Audit
• Accounting Policies
• Accounting Estimates and Disclosures
• Difficulties in Performing the Audit
• Misstatements
• Disagreements
• Management Representations
• Consultations with other Independent Accountants
• Compliance with the Public Funds Investment Act
• Comments and Recommendation Regarding Internal
Control and Operations

9. Comments and Recommendation Regarding
Internal Control and Operations
• Accounts Payable and Disbursements
• Finance Director has access to:
• Edit master vendor file
• Approve purchase orders
• Initiate printing of checks
• Sign checks
• Authorizing checks for payment only requires one signature
• Recommendation
• City review its procedures over A/P and disbursements and
segregate the duties mentioned above to improve controls over
the check disbursement process

10. 855-587-4450
www.abipcpa.com
Michael Del Toro, CPA
Audit Partner
mdeltoro@abipcpa.com
Jeremy Barbatto, CPA
Audit Manager
jbarbatto@abipcpa.com
210-341-2581