ADMINISTRATIVE REPORT
MEETING DATE: March 25, 2026 AGENDA CATEGORY: Miscellaneous TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: March 17, 2026
SUBJECT: Audit Reports to be referred to Finance, Economic Development and Jobs Committee:
1. Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024.
2. Agreed Upon Conditions Report for the fiscal year ended June 30, 2024.
3. Auditor Communication with Those Charged with Governance (SAS 114 Letter) for fiscal year ended June 30, 2024.
4. Independent Auditors Report – Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan for the year ended June 30, 2024.
5. Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) of the City of Bakersfield for the fiscal year ended June 30, 2024.
6. Independent Auditors Report – Mechanics Bank Arena, Theater, Convention Center, Dignity Health Amphitheatre & Valley Children’s Ice Center for the fiscal year ended June 30, 2024.
7. Agreed Upon Procedures Report (Public Safety and Vital Services) for the fiscal year ended June 30, 2024.
RECOMMENDATION:
Staff recommends referral to the Finance, Economic Development and Jobs Committee
BACKGROUND:
1. The Annual Comprehensive Financial Report (ACFR), commonly referred to as the Annual Audit Report, represents the City’s financial statements as of June 30, 2024, and were audited by the accounting firm of Brown Armstrong Accountancy Corporation. The curre nt year audit opinion issued by the outside auditors was “unqualified,” which indicates that the City complied, in all material respects, with accounting principles generally accepted in the United States of America.
2. The Agreed Upon Conditions Report is designed to increase efficiency, internal controls and/or financial reporting and includes any reportable conditions noted during the Audit. A summary of the reported conditions are included in the report. The report also addresses conditions identified in the prior year which have all been resolved to the auditors’ satisfaction.
3. The SAS 114 Letter provides information about our auditors’ responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Stan dards, and the Unform Guidance, as well as certain information related to the planned scope and timing of the audit.
4. Contract requirements contained in City of Bakersfield Agreement 76 -153 as amended by Agreements 76-153(5), 76-153(4) 77-44, 85-197 and 92-106 apply to operations of the Bakersfield Subregional Wastewater Management Plan. The City’s compliance with contract requirements is audited on an annual basis. The current compliance report, used by the outside auditors, is
attached for your review and indicates that there were no audit findings.
5. Attached is a letter from the City’s independent auditors Brown Arms trong Accountancy Corporation indicating they have completed their annual review of the Appropriations Limit Worksheet prepared by the City in accordance with Section 1.5 of Article XIIIB of the California Constitution (GANN Limit). This annual review is p erformed by the auditors as part of their contract to provide auditing services to the City of Bakersfield. The agreed upon review procedures are substantially less in scope than an audit and therefore no audit opinion is expressed regarding the calculation.
6. Attached is the independent audit report for the Mechanics Bank Arena, Theater, Convention Center, Dignity Health Amphitheatre & Valley Children’s Ice Center, for the fiscal year ended June 30, 2024. This audit report presents the financial statements for this operational unit as of June 30, 2024. The management company (AEG) is required to submit an independent audit report of their operations to the City after the end of each fiscal year. This audit report was prepared by the accounting firm of Barbich, Hooper, King & Hoffman.
7. The Agreed Upon Procedures Report for the Public Safety and Vital Services measure is designed to increase efficiency, internal controls and/or financial reporting and includes any reportable conditions noted during the Audit. This report is a requirement per the guidelines stated in Resolution No. 089 -18 regarding the Public Safety and Vital Services measure. A summary of reported conditions is included in the report.
FISCAL IMPACT:
The act of accepting these reports and refer red to the committee will have no Fiscal Impact to the City General Fund.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
None.