CITY OF KYLE, TEXAS

Review & Acceptance of FY 2019 CAFR and Independent Auditors' Report

Article VIII, Section 8.13 of the City Charter requires that at the close of each fiscal year, an independent audit shall be made of all accounts of the City by a certified public accountant experienced in auditing cities.  The City Charter further requires that the audit shall be completed on or before March 30th of each year and upon acceptance of the audit, a summary thereof shall be published immediately in a newspaper of general circulation in the City and copies of the audit report shall be placed on file in the City Secretary's Office as a public record.

The City management is pleased to present the Comprehensive Annual Financial Report (CAFR) for the City of Kyle for fiscal year ended September 30, 2019.  

The Management's Discussion and Analysis (MD&A) section of the CAFR presents a narrative overview and analysis of the financial activities of the City of Kyle for the year ended September 30, 2019.  This analysis is intended to assist readers in focusing on key financial issues and changes in the City's financial position and to identify any significant variances from the approved budget.

It is important to consider the information presented in the Management's Discussion and Analysis (MD&A) section of the City's Comprehensive Annual Financial Report (CAFR) in conjunction with additional information that we have provided in the letter of transmittal, the financial statements, and the notes to the financial statements.

REPORT HIGHLIGHTS

• The City's independent auditors conducted their audit and examination of the City's financial statements and financial records in accordance with the auditing standards prescribed and accepted in the United States of America.

• The independent auditors, RSM US, LLP, Certified Public Accountants, issued an unqualified or "clean" Auditor's Report for the fiscal year ended September 30, 2019.  This is the highest level or the best type of an independent Auditors' Report that an independent auditor can issue on the financial statements of governmental entities in the United States of America.

• The independent Auditor's Report did not identify any audit findings or deficiencies concerning the City's financial transactions, financial records, financial controls, or in the City's accounting and financial reporting systems.

• Based on the independent auditor's examination and audit of the City's financial records, the audit report states "the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Kyle, Texas, as of September 30, 2019, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America."

• The City's Statement of Net Position for all funds for fiscal year ended September 30, 2019 reported $324.6 million in assets, $91.2 million in liabilities, and a net position totaling $233.4 million.

• The City's overall net position totaling $233.4 million as of September 30, 2019 is an increase of $28.6 million or 14.0 percent from the prior fiscal year.

• The ending fund balance in the City's General Fund at September 30, 2019 totaled $15.5 million.  This is a decrease of $3.9 million or 20.1 percent from the prior fiscal year.

• Revenue and transfers-in from all sources for the City's General Fund for fiscal year ended September 30, 2019 totaled $30.1 million (GAAP basis).

• Expenditures and transfers-out for the City's General Fund for fiscal year ended September 30, 2019 totaled $34.0 million for all government functions.

For complete transparency and inclusion of detailed financial information, a copy of the following documents are attached to this agenda item:

• City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2019.

• Independent Auditor's Report on the City's financial statements and financial records for the fiscal year ended September 30, 2019.

• Independent Auditor's Required Communication to City Council.

A complete copy of the City's Comprehensive Annual Financial Report (CAFR) and the Independent Auditor's Report for the fiscal year ended September 30, 2019 are also available on the City's Financial Services Department web page.