Management Letter
For Fiscal Year Ended June 30, 2024
City of Fairfield, California
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1 To the Management of City of Fairfield
Fairfield, California
I
n planning and performing our audit of the financial statements of the City of Fairfield, California (the City), as of and for the year ended June 30, 2024, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
D
uring our audit we became aware of deficiencies in internal control other than significant deficiencies and material weaknesses that are opportunities for strengthening internal controls and operating efficiency. The observations and recommendations are summarized below. This letter does not affect our report dated December 12, 2024, on the financial statements of the City.
W
e will review the status of these comments during our next audit engagement. We will be pleased to discuss these items in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.
C
URRENT YEAR OBSERVATIONS AND RECOMMENDATIONS
C
ontracts
O
bservation:
O
ur audit procedures identified a vendor which the City has contracted with for on-call welding services for a period of five years. The contract did not include a maximum to be paid under the contract, nor did it include a pricing structure for services during the term of the agreement. Without a maximum price to be paid under the contract, the authority for authorizing the contract under the City’s procurement policy is unclear.
R
ecommendation:
W
e recommend that the City incorporate maximum amounts to be paid into all contracts and include pricing structures, where applicable, for services to be provided.
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 2 Management’s Response:
T
he City has internally set limits on contracts as well as all purchases are limited by budget within the financial system. The city will consider this recommendation as we move forward with our purchasing policy update.
W
e would be pleased to discuss these comments and recommendations with you at any time.
T
his report is intended solely for the information and use of the City Council, Audit Committee, management, and others within the City and is not intended to be and should not be used by anyone other than these specified parties.
S
acramento, California
December 12, 2024