TO: Napa Berryessa Resort Improvement District Board
FROM: Tracy Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban -Accountant-Auditor Manager
SUBJECT: Authorization to prepare necessary entries to close the financial books for the fiscal year ended June 30, 2024.
RECOMMENDATION
title
Authorize preparation of the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2024. (Fiscal Impact: $259,930 Expense; Napa Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
body
BACKGROUND
The Auditor-Controller anticipates completing all the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2024 by Monday, September 30, 2024. Completing this process requires approval by the Napa Berryessa Resort Improvement District Board of the below entries and requires a 4/5 vote.
The requested actions for approval include:
1. Approve Budget Adjustment 24-1433, increasing appropriations by $259,930 in Fiscal Year 2024-25 for continued projects from Fiscal Year 2023-24. On June 25, 2024, your Board approved estimated amounts of remaining budget and related contracts to be carry forward into the following year. This item is to ratify final amounts resulting from completing all accounting entries through June 30, 2024. See Attachment A.
2. Maintain restriction of $34,556 for FEMA/CalOES. Funds are restricted until projects are fully audited and can be released.
3. Establish restriction of $74,959 due to the remaining excess insurance proceeds from the 2020 LNU Fire Complex, transferred from the General Fund Declared Emergency subdivision. Funds are being transferred after a successful completion of the post emergency audit. Funds are to remain restricted until a new construction project is established.
There are five capital improvement projects to be completed in Fiscal Year 2024-25:
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 $63,750.
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 $130,574.
Project 22017
The Wastewater Pond No. 2 has multiple slide planes within the southern bank cut. Sloughing is prevalent on the westernmost face with large earth quantities filling in a drainage ditch when soils become saturated in the winter. Around the mid-point of Pond No. 2 southern embankment a slide greater than 500 cubic yards in quantity has slumped into the wastewater storage pond. Project and evaluation began in fiscal year 2022 and construction planned to begin in fiscal year 2023. The carryover appropriations amount is $7,505.
Project 23032
The Woodhaven Court sewer lift station was destroyed in the August 2020 LNU Lighting Complex Fire, along with the residences on the street that relied on the lift station to transport sewage toward the wastewater treatment plant. The facility was deemed a total loss and the District received insurance proceeds to replace it.
The Woodhaven Lift Station Replacement Project will replace the station with a lift station of similar design and capacity, including site improvements and security. The carryover appropriation amount is $4,195.
Project 24013
In August 2020 the LNU Lighting Complex Fire burned through the community destroying critical elements of infrastructure needed to operate the water and wastewater facilities. Including the complete loss of an irrigation system spanning 60 acres in coverage to disposal of treated wastewater effluent. The newly designed wastewater disposal sprayfield system will encompass the entire District owned parcel yielding more surface area for land application, not be susceptible to iron corrosion, give more flexibility to apply water over subzones, and require much less maintenance and improve fire resiliency with a wider wet break line of defense. The carryover appropriation amount is $53,906. The re-encumbrance contracts are Brightview Landscape (No. 240213B) for $2,085 and Odell’s Pump (No. 240428D) in the amount of $28,711.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
Where is it budgeted? |
The requested adjustments will be funded by Napa Berryessa Resort Improvement District's available fund balance. |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
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. |
|
Is the general fund affected? |
No |
|
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.