To: Honorable Mayor and Members of City Council
From: Donna Lee, Finance Director
Prepared By: Prapti Aryal, Deputy Finance Director
TITLE:
Title
Single Audit Report for Fiscal Year Ended June 30, 2025.
LABEL
RECOMMENDED ACTION:
Recommendation
Accept and file the City’s Single Audit Report for the Fiscal Year ended June 30, 2025.
Body
DISCUSSION:
The purpose of this item is to present the City’s Fiscal Year 2024-25 Single Audit Report for City Council receipt and acceptance. The City’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024-25 was previously accepted by the City Council on January 20, 2026. The Single Audit is a separate federally required audit that evaluates the City’s compliance with requirements associated with the expenditure of federal grant funds.
Federal regulations require local governments that expend $750,000 or more in federal awards during a fiscal year to undergo a Single Audit. The audit assesses compliance with applicable federal program requirements and includes testing of internal controls over compliance for major federal programs. The audit was conducted by Lance, Soll and Lunghard, LLP (LSL) in accordance with the Federal Single Audit Act Amendments of 1996 and Title 2 of the Code of Federal Regulations Part 200, Subpart F.
The attached Single Audit Report includes the Independent Auditor’s Report on Compliance for Major Federal Programs, Report on Internal Control Over Compliance, Schedule of Expenditures of Federal Awards (SEFA), and any related findings and corrective action plans.
The auditors issued an unmodified (“clean”) opinion on the City’s compliance for its major federal programs. The audit also identified two findings related to internal control over financial reporting. Staff have reviewed the findings and implemented corrective action measures including the recruitment of more experienced personnel, enhancements to policies and procedures, and additional staff training to strengthen internal controls and financial reporting processes. Additional details are included in ATCH 1.
FINANCIAL IMPACTS:
There is no direct fiscal impact associated with acceptance of the Single Audit Report.
CEQA:
The Finance Director has determined that the recommended action described in this agenda report is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Section 15060(c), as it is not a project subject to CEQA.
DOCUMENTS ATTACHED:
ATCH 1 - FY 2024-25 Single Audit Report
NOTIFICATION:
None.