TO: Napa Berryessa Resort Improvement District Board
FROM: Tracy Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban - Deputy Auditor-Controller
SUBJECT: Authorization to prepare necessary entries to close the financial books for the fiscal year ended June 30, 2025.
RECOMMENDATION
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Authorize preparation of the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2025. (Fiscal Impact: $343,255 Expense; Napa Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Auditor-Controller anticipates completing all the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2025 by Tuesday, September 30, 2025.
There are no changes requiring Board approval to the financial records for Napa Berryessa Resort Improvement District for the year ended June 30, 2025. In addition, there are no changes to fund balance commitments or restrictions – the district will maintain the fund balance commitment in the amount of $34,556 for FEMA/CalOES; and $72,151 due to the remaining excess insurance proceeds from 2020 LNU Fire Complex. Funds are restricted until the projects are fully audited and can be released.
However, on June 24, 2025, your board approved estimated amount of remaining budget and related contracts for continued projects to be carried forward in the following year. The item presented today is to ratify final amounts resulting from completing all accounting entries through June 30, 2025.
The three capital improvement projects to be completed in Fiscal Year 2025-26 or beyond are as follows:
Project 21071
The USDA Reserve Wastewater Treatment Plant project is the replacement of various short lived assets installed as part of the USDA funded wastewater treatment plant replacement project in 2012. Funded by depreciation reserves the funds are needed to procure services and supplies to complete work on the following: StormBLOX treatment unit transfer pump replacement; the StormBLOX treatment unit filter module replacement and; the Polymer feed system rehabilitation. The carryover appropriation amount is $53,326.
Project 21072
The USDA Reserve Water Treatment Plant project is the replacement of various short lived assets installed as part of the USDA funded wastewater treatment plant replacement project in 2012. Funded by depreciation reserves the funds are needed to procure supplies to complete work on the Roberts Filter blower rehabilitation. The carryover appropriations amount is $39,929. The re-encumbrance contract is Silverado Electric, LLC. (No.250269D) in the amount of $2,556.
Project 25046
The Supervisory Control and Data Acquisition (SCADA) Replacement Project was awarded on June 3, 2025. The project includes replacement of the SCADA program and associated hardware for the water and wastewater facilities. The carryover appropriation amount is $250,000. The re-encumbrance contract is Telestar Instruments, Inc. (No. 250410B) in the amount of $213,121.
In addition, projects 16022 and 16023 include a revenue carryforward for a total amount of $112,033, needed to maintain the depreciation reserve balance as required by the United States Department of Agriculture.
The attachment provides a summary of carryforwards revenues, expenditures and the remaining contract amounts by project.
Requested Action: Approve budget adjustment 25-1412, increasing appropriations for fiscal year 2025-26 by $343,255, for continued projects with remaining budget in the prior year.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
The requested adjustments will be funded by Napa Berryessa Resort Improvement District's available fund balance. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of these entries will enable the books to be properly closed in compliance with Generally Accepted Accounting Principles (GAAP) and with State accounting and budgeting practices and also align the Capital Improvement Project budgeting process with the County's budgeting process. |
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Is the general fund affected? |
No |
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Consequences if not approved: |
The Napa Berryessa Resort Improvement District would not be in compliance with Generally Accepted Accounting Principles (GAAP) or State accounting and budgeting practices. In addition, the current approved Capital Improvement Projects would not have the appropriations to complete the work committed. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.