Item 10 - Receive and File – Fiscal Year 2023-24 Annual Comprehensive Financial Report

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CITY OF SANTA ANA, CALIFORNIA AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 (7) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Measurement Focus and Basis of Accounting (Continued) AQMD’s financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. C. Budgetary Accounting The City and its component units' fiscal year begins on July 1 of each year and ends June 30 the following year. On or before the fifteenth of June of each year, the City Manager recommends and submits to the City Council a proposed budget for the ensuing fiscal year based on a detailed financial plan prepared by the heads of the various offices, agencies and departments of the City and its component units. The proposed budget is presented to the Council during a public hearing, A notice advertising the public hearing is published in a local publication in May and /or June. The public is given the opportunity to be heard at this hearing and City Council may make modifications to the proposed budget with an affirmative vote of a super majority (5). On or before the 30th day of June, the City Council meets to adopt the proposed budget, as amended by the affirmative vote of a supermajority (5) of the seven-member Council. In the event that a budget is not formally adopted by the 30th day of June, the City Charter requires City Council to adopt a budget no later than July 31. Upon final adoption, the budget becomes the authority for the various departments, agencies, and offices to expend appropriations, subject to controls established by the City Charter. At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by affirmative vote of at least two-thirds (5) of the members to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget. When appropriations are made to offices, departments, or agencies for more than one activity or program, "appropriations" are considered in the aggregate with respect to total expenditures authorized for that office, department or agency within each fund, limited to purposes for which the revenues of such funds are to be spent. The City Manager is authorized to make revisions among the items included in such appropriations if such revisions are necessary and proper. The legal level of budgetary control exists at the department and fund level. Council action is necessary for transfers between funds and departments. During the fiscal year, all budget and supplemental amendments were necessary and made in a legally permissible manner.