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Explanation of Reports



City of Willoughby Hills
Explanation of Monthly Financial Reports to City Council


Bank Reconciliation Reports

The Bank Reconciliation Reports are provided to demonstrate the that the City’s books (i.e. the reports detailed below) reconcile the to the amount of cash and investments that the City has either deposited into its bank accounts, deposited with another agency or is kept on hand at the end of the reporting period.  There are two reports included in the monthly report to City Council.  They are:

  1. Cash Reconciliation – The reconciliation of the cash and investments recorded on the City’s books, as detailed in the MTD Bank Report, to the amount reported by the various financial institutions where the City maintains accounts.
  2. MTD Bank Report – A listing of the activity recorded on the City’s books of the various bank, investment and deposit accounts maintained by the City.  The grand total of this report, as shown in the final column of the report, should be equal to the grand total of the Unexpended or Cash Balance of the various fund reports.

The Cash Reconciliation is comprised of the following columns:

  1. Bank – The name of the financial institution where the account is located.
  2. Description – The name assigned to the account by the City when the account was opened. 
  3. Account No. – The account number assigned to the account by the financial institution.
  4. Bank Balance – The actual amount credited to the account by the financial institution at the end of the reporting period; i.e. the amount that appears on the bank statement.
  5. Deposit in Transit – Amounts of moneys received by the City and deposited into the bank account by the end of the reporting period that have not been credited to the account by the financial institution by the end of the reporting period.
  6. Cash On Hand – Amounts of moneys received by the City which were not deposited into the bank account by the end of the reporting period.
  7. Outstanding Checks – The total value of all checks issued by the City prior to the end of the reporting period that have not been presented to the financial institutions for payment by the payees by the end of the reporting period.
  8. Accrued Payroll Liabilities – Amounts recorded in the City’s books as expenses for which payment has not been issued by the end of the reporting period because the due date for the expense is after the close of the reporting period.  This item is generally comprised of employer’s pension, Medicare and FICA expenses.
  9. Adjustments – Corrections to the account balances resulting from actions by the financial institutions that do not affect the amounts recorded in the City’s records.
  10. Adjusted Balance – The account balance as it appears in the City’s books.  This balance should be equal to the amount listed for the account in the MTD Bank Report for the reporting period.  This column is equal to the bank balance plus or minus the adjustments detailed above, unless there are unrecorded corrections necessary to properly state the City’s financial activity for the month. 

The MTD Bank Report is comprised of the following columns:

  1. Bank – The number assigned to the bank account in the City’s records.
  2. Description – The name assigned to the account by the City.
  3. Begin Month Balance – The account balance on the City’s books at the end of the last month/beginning of the current month.
  4. MTD Deposit – The amount recorded by the City as being deposited to the account during the reporting period.
  5. MTD Withdrawal – Cash withdrawals (normally checks written) during the reporting period.
  6. MTD Transfers In – Cash deposits electronically transferred into the account from other City accounts.  The most common transfer that the City makes is transferring cash from its Operating Account to its Payroll Account.
  7. MTD Transfers Out – Cash electronically transferred from the account to other City accounts.  The most common transfer that the City makes is transferring cash from its Operating Account to its Payroll Account.  As a rule, bank transfers in must always be equal to bank transfers out.
  8. Balance – The account balance at the end of the month per the City’s books.  This column is equal to the Beginning Month Balance plus or minus the items described above.  The grand total of this column must be equal to the total of the Adjusted Balance column on the Cash Reconciliation report, the Unexpended Balance of the MTD and YTD Fund Reports and the Cash Balance column of the Fund Balance Change Analysis.

Fund Reports

The Fund Reports summarize the complete financial activity of the City, on a fund by fund basis.  There are three fund reports currently included in the monthly report to City Council.  They are:

  1. YTD Fund Report – This report summarizes the year-to-date activity of each fund.  This is a standard CMI report that is produced by the financial system.
  2. MTD Fund Report - This report summarizes the monthly activity of each fund.  It begins with the cash fund balance at the start of the month (this column will always be the same as the prior month’s Unexpended Balance Column in the YTD Fund Report) and that month’s cash receipts and disbursements.   The final two columns of this report, Encumbrances and Unencumbered balance, will be identical to the same two columns on the YTD Fund Report for that month.  This is a standard CMI report that is produced by the financial system.
  3. Fund Balance Change Analysis for the Month Ended XX, YYYY – This is a more readable YTD Fund Report that was created by the Finance Department in Excel.    It is divided into two sections, active and in-active funds.  This report presents both MTD and YTD information in a single report.  The amounts listed in each column reconcile back to the MTD and YTD Fund reports.

Each of the Fund Reports includes the following columns:

  1. Beginning Balance – This is equal to the cash balance of each fund at the start of the report’s reporting period.
  2. Receipts – This is equal to the fund’s receipts for that reporting period.  The amounts listed in this column for each fund as well as the overall total can be traced to the MTD and YTD Columns in the MTD/YTD Revenue Report.
  3. Expenses – This is equal to the fund’s expenditures for that reporting period.  The amounts listed in this column for each fund as well as the overall total can be traced to the MTD and YTD Columns in the Combined MTD/YTD Expense ReportThe expenditures listed in these two reports are expenditures that were made by the City during the reporting period against both the Current Year Budget and any purchase orders that were carried over from prior budget years.
  4. Unexpended Balance – This is the unexpended cash balance of each fund at the end of the reporting period.  It is equal to the Beginning Balance plus Receipts minus Expenses.  The total balance of this column will reconcile to the total amount listed in the Adjusted Balance column of the bank reconciliation.  This column will be identical on all three fund reports.
  5. Encumbrances – This is equal to the total balance of all open purchase orders at the end of the reporting period for all budget years.  This column will be the same on all three fund reports.  The amounts shown in this column can be traced to the Combined MTD/YTD Expense Report
  6. Unencumbered Balance – This is equal to the amount of cash available to expend at the end of the report’s reporting period.  It is equal to the Unexpended Balance minus the Encumbrance columns.

Revenue Reports

The MTD/YTD Revenue Report lists the total receipts collected by the City during the reporting period.  The report lists all revenue sources for each of the City’s funds as well as the grand total for all funds.  The report contains the following information:

  1. Account – The account number assigned to the revenue source.  The format of the account numbers is XXX.XXX.XXXXX.  The format is explained as follows:
  • First three digits – The number assigned to the fund.
    • 110 – always the General Fund
    • 2XX – All Special Revenue Funds will begin with a 2
    • 3XX – All Debt Service Funds will begin with a 3
    • 4XX – All Capital Project Funds will begin with a 4
    • 6XX – All Enterprise Funds will begin with a 6
    • 8XX – All Trust or Agency Funds will begin with an 8
  • Middle three digits – represent the department.  Department Numbers follow this general format:
    • 000 -  Unassigned
    • 110 – City Administration
    • 120 – Mayor’s Court
    • 230 – Police Department – Uniform
    • 235 – Police Department – Dispatch
    • 240 – Fire Department
    • 350 – Service Department
    • 460 – Recreation Department
    • 465 – Community Center
    • 570 – Building and Planning Department
  • Final five digits – The detail account number assigned to the revenue source. 
    • Revenue accounts always will begin with a four (4). 
    • Expenditure accounts will always begin with a five (5).
  1. Description – The name of the account.
  2. Estimated Revenue – The amount that the City has estimated that it will receive from this source of revenue.
  3. MTD Receipts – The amount of revenue credited to the account during the reporting month.
  4. YTD Receipts – The amount of revenue credited to the account since January 1st of the reporting year.
  5. Unc Balance – The difference between the amount of estimated revenue and the total amount received during the year.  The formula for this column is Estimated Revenue minus YTD Receipts.
  6. % Collected – The percentage of Estimated Revenue collected since January 1st.  The formula for this column is equal to YTD Receipts divided by Estimated Revenue.

Expenditure Reports

These reports summarize the City’s use of its financial resources during the reporting year.  There are three expenditure reports currently included in the monthly report to City Council.  They are:

  1. Current MTD/YTD Expense Report – This report accounts for City expenditures on a fund by fund basis, broken out by account, that are charged to the City’s current year operating budget.
  2. Prior MTD/YTD Expense Report – This report accounts for City expenditures on a fund by fund basis, broken out by account that were originally charged to an earlier budget year but not expended during that calendar year.  Only purchase commitments that were properly encumbered (i.e. an open purchase order) on December 31st of the previous budget year are accounted for in this report.  These commitments reduced the City’s fund balance available for expenditure during the current year.
  3. Combined Expense Report – This report accounts for all City expenditures, regardless of the budget year that the expenditure was originally charge to, on a fund by fund basis, broken out by account.  This report is equal to the combined total of the Current and Prior MTD/YTD Expense Reports.

The Current MTD/YTD Expense Report contains the following information:

  1. Account – The account number assigned to the expenditure source.  The format of the account numbers is XXX.XXX.XXXXX.  The format is explained as follows:
  • First three digits – The number assigned to the fund.
    • 110 – always the General Fund
    • 2XX – All Special Revenue Funds will begin with a 2
    • 3XX – All Debt Service Funds will begin with a 3
    • 4XX – All Capital Project Funds will begin with a 4
    • 6XX – All Enterprise Funds will begin with a 6
    • 8XX – All Trust or Agency Funds will begin with an 8
  • Middle three digits – represent the department.  Department Numbers follow this general format:
    • 000 -  Unassigned
    • 110 – City Administration
    • 120 – Mayor’s Court
    • 230 – Police Department – Uniform
    • 235 – Police Department – Dispatch
    • 240 – Fire Department
    • 350 – Service Department
    • 460 – Recreation Department
    • 465 – Community Center
    • 570 – Building and Planning Department
  • Final five digits – The detail account number assigned to the revenue source. 
    • Revenue accounts always will begin with a four (4). 
    • Expenditure accounts will always begin with a five (5).
  1. Description – The name of the account.
  2. Revised Appropriation – The amount that the City has estimated that it will expend from this expenditure account.
  3. MTD Expense – The amount of expenditure from this account during the reporting month.
  4. YTD Expense – The Total amount of expended from this account since January 1st of the reporting year.
  5. Unexpended – The difference between the account's Revised Appropriation and the total amount expended from the account during the year.  The formula for this column is Revised Appropriation minus YTD Expense.
  6. Encumbrance – The total of open purchase commitments (i.e. open purchase orders) charged to this account but not yet paid in cash as of the end of the reporting period.
  7. Unencumbered – The amount of the account’s Revised Appropriation remaining after deducting YTD Expenses and Encumbrances.  The formula for this column is Unexpended minus Encumbrance.
  8. % Used – The percentage of the Revised Appropriation expended or encumbered since January 1st.  The formula for this column is equal to YTD Expenses plus Encumbrances divided by the Revised Appropriation.

The Prior MTD/YTD Expense Report contains the following information:

  1. Account and Description – The same explanation as the Current MTD/YTD Report.  See above.
  2. Revised Prior - The total of the open purchase commitments that existed on the last day (December 31st) of the previous budget year.  These purchase orders may only be used for the purpose that they were originally authorized for in the prior budget year.  Neither the amount nor the description of a prior year purchase order may be revised in a future budget year.
  3. Prior MTD Expense - The amount of expenditure from this account during the reporting month that was charged to prior budget year purchase orders.
  4. Prior YTD Expense - The amount of expenditure from this account since the first day of the current budget year (January 1st) that has been charged to prior budget year purchase orders.
  5. Prior Encumbrance – The unexpended balance of prior year purchase commitments as of the end of the reporting period.
  6. Prior Excess – The unexpended balance of prior year purchased commitments that have been permanently closed.  This amount is not available for expenditure by the department.  Since it is a prior year budget commitment, the open balance of the closed commitment is returned to the available fund balance for re-appropriation by City Council for any purpose.  For example, if a purchase order was issued in a prior budget year for $100 and the item purchased cost $95 which is paid during the current budget year, the prior excess is $5.  Rather than becoming available to the department for expenditure in the current budget year, the $5 is returned directly to the available fund balance of the fund in question.  In order for this $5 to be expended by the department, it must be re-appropriated by City Council.

The Combined MTD/YTD Expense Report is a combination of the Current and Prior MTD/YTD Expense reports.  The columns are the combined total of the columns of the two reports described above.

Purchase Order Reports

City Council is provided with a purchase order register reports listing the purchase orders that the City issued during the reporting period.  The PO Register Includes the following information:

  1. PO Number – The number assigned to the purchase order by the City’s financial system.   The first two letters of the PO Number indicate the type of purchase order.
    • RG – Regular Purchase Order
    • BL – Blanket Purchase Order
    • CT – Contract Purchase Order
  2. Date – The date that the purchase order was issued.
  3. Vendor Number – The number assigned to the vendor for tracking purposes.
  4. Vendor Name – The name of the vendor that the City is doing business with.
  5. Purpose – A short description of the goods or services that the PO is authorizing.
  6. Fund – The City fund or funds that the purchase order will be accounted for in.
  7. Original Encumbrance – The total requested amount that the purchase order was originally issued for.
  8. Amount – The amount that the purchase order is currently authorized for, if encumbrance amount has been revised (i.e. increased or decreased) since the original issuance of the purchase order. 

 


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