To: Honorable Mayor and Members of City Council
From: Rajneil Prasad, Finance Director
Prepared By: Paul Phangureh, Deputy Finance Director
TITLE:
Title
Annual Comprehensive Financial Report and Other Audit Reports for Fiscal Year Ended June 30, 2024.
LABEL
RECOMMENDED ACTION:
Recommendation
Accept and file the City’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024.
Provide direction to staff to return to a future Council meeting regarding the allocation of the available General Fund unassigned fund balance.
Body
DISCUSSION:
The following reports are included with this communication:
• Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024 including PowerPoint presentation
• Auditors’ Communication Letter (AU-C260)
• Independent Accountants’ Report on Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit for the year ended June 30, 2024 (GANN Limit)
The City Charter requires that the City Council engage an independent certified public accounting firm to conduct an annual financial audit of the City. Lance, Soll and Lunghard (LSL), LLP, a certified public accounting firm, conducted the audit of the City’s financial statements for the fiscal year ended June 30, 2024. The City received an unmodified (clean) opinion on the ACFR. The ACFR conforms to generally accepted accounting principles and the latest applicable Governmental Accounting Standards Board (GASB) Statements. This report continues to reflect the financial stability and proper accounting practices of the City. In addition, the 2023 ACFR received the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence in Financial Reporting. GFOA awarded this certificate to the City for the 10th consecutive year, and it is included in the 2024 ACFR.
The California State Constitution Article XIII-B Appropriations Limit places limits on the growth of expenditures for publicly funded programs. The Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit for the year ended June 30, 2024 was performed to assist the City in meeting the requirements of Section 1.5 of the Article XIII-B which requires the annual calculation of the appropriations limit to be reviewed as part of an annual financial audit. There were no findings included in this year's GANN Limit report.
The audited financials show that the City has an available unassigned fund balance of approximately $5.3 million for the fiscal year. City staff recommend allocating these funds to address various needs, including:
• Setting aside funds for the 4th of July event
• Covering utility rate increases
• Homeless Services Kennedy Park and Vehicle Code Changes
• Supporting the Fuller Park CIP project
• Implementing the recently negotiated labor MOU’s
• Transferring the remaining balance to the 115 Trust
FINANCIAL IMPACTS:
There is no fiscal impact as a result of accepting these informational reports.
CEQA:
The Finance Director has determined that the recommended action described in this agenda report is not subject to CEQA, pursuant to CEQA guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - FY23-24 Annual Comprehensive Financial Report (ACFR)
ATCH 2 - FY23-24 AU-C260 Letter
ATCH 3 - FY23-24 ACFR PowerPoint
ATCH 4 - FY23-24 GANN Limit AUP
NOTIFICATION:
None.