CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
BASIC FINANCIAL STATEMENTS
WITH
INDEPENDENT AUDITOR’S REPORT
AND
GOVERNMENT AUDITING STANDARDS REPORT
FOR THE YEAR ENDED
JUNE 30, 2022
CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
JUNE 30, 2022
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT .......................................................................................................... 1
BASIC FINANCIAL STATEMENTS
Balance Sheet ........................................................................................................................................... 5 Statement of Revenues, Expenditures and
Changes in Fund Balance ...................................................................................................................... 6 Notes to the Basic Financial Statements .................................................................................................. 7
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Sch edule – Measure P Fund ............................................................................ 14 Notes to the Budgetary Comparison Schedule ...................................................................................... 15
OTHER SUPPLEMENTARY INFORMATION:
Measure P Fund Ex penditure Plan ......................................................................................................... 18
OTHER INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards and the
Rules and Regulations of the Measure P Ordinance ........................................................................... 25
SCHEDULE OF FINDINGS AND QUESTIONED COSTS ........................................................................... 27
1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Fresno, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Measure P Fund of the City of Fresno, California (the City), as of and for the year en ded June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above pres ent fairly, in all material respects, the respective financial position of the Measure P Fund of the City of Fresno, California, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Ou r responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our ot her ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair pr esentation of the financial statements in accordance with accounting principles generally accepted in t he United States of Amer ica, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whethe r there are conditions or events, considered in the aggregate, that raise substant ial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statem ents as a whole are free from material misstatement, whether due to fraud or erro r, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assura nce but is not absolute assu rance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material
2 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misr epresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood t hat, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of ma terial misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures resp onsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditi ons or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings , and certain internal control-related matters that we identified during the audit.
Emphasis of Matter
As discussed in Note 1, the financial statements of t he Measure P Fund of the City of Fresno, are intended to present the financial position and the changes in financial position of the Measure P Fund of the City of Fresno.
They do not purport to, and do not present fairly the financ ial position of the City as of June 30, 2022, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be present ed to supplement the basic financial statements. Such missing information, although not a part of the basic fi nancial statements, is required by the Governmental Accounting Standards Board who consider s it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, econom ic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 14–15 be presented to supplement the bas ic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Boar d who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or hi storical context. We have applied certain limited procedures to the required s upplementary information in accordance with auditing standards generally accepted in the United States of Am erica, which consisted of inquiries of management about the methods of preparing the information and co mparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provid e us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opi nions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Measure P Expenditure Plan is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing
3 procedures applied in the audit of the basic financial statements and certain addition al procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basi c financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Measure P Expenditure Plan is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2022, on our consideration of the Measure P Fund of the City of Fresno’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financia l reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Clovis, California
December 7, 2022
4 THIS PAGE IS LEFT BLANK INTENTIONALLY.
The notes to the basic financial statements are an integral part of this statement. 5 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
BALANCE SHEET
JUNE 30, 2022
ASSETS
Cash and investments 23,633,568 $
Intergovernmental receivable 7,510,966
Interest receivable 78,195
Prepaid expenses 980,025
Total assets 32,202,754 $
LIABILITIES
Accounts payable 320,619 $
Accrued liabilities 215,398
Due to other City funds 12,360
Total liabilities 548,377
FUND BALANCES
Nonspendable 980,025
Restricted 30,674,352
Total fund balance 31,654,377
Total liabilities and fund balance 32,202,754 $
The notes to the basic financial statements are an integral part of this statement. 6 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2022
REVENUES
Taxes 43,124,530$
Use of money and property 125,017
Miscellaneous 14,357
Total revenues 43,263,904
EXPENDITURES
General government 392,478
Public ways and facilities 23,690
Culture and recreation 6,055,666
Capital outlay 5,128,379
Total expenditures 11,600,213
Excess (deficiency) of revenues
over (under) expenditures 31,663,691
OTHER FINANCING SOURCES (USES)
Transfers out to other City funds (9,314)
Total other financing sources (uses) (9,314)
Net change in fund balance 31,654,377
Fund balance (deficit) - beginning -
Fund balance (deficit) - ending 31,654,377$
CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
7 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The accompanying financial statements present only the M easure P Fund of the City of Fresno, California (the City) and are not intended to present fairly the financial position, and changes in financial position of the City with accounting principles generally accepted in the United States of America.
Fresno is located in the central part of California and is in the county seat of Fresno County. It is the 34th largest city in the United States and the fifth largest in Calif ornia. Fresno has a land area of 115.2 square miles and a population of approximately 546,770 within city limits.
The City was incorporated in 1885. It operates under a charter and is governed by a directly elected strong mayor and a seven-member City Council. The City provides a full range of services to residents including police, fire, utilities, parks and public works.
On July 18, 2018, the City Clerk received an Initia tive Petition proposing the Fresno Clean and Safe Neighborhood Parks Tax (Measure P). On February 18, 202 1, the City Council certified Measure P as passed, and collection of the special sales tax began July 1, 2021, and the first deposits of the special sales tax were received in September 2021. The revenues generated by the Measure P use tax are allocated by the City on an annual basis with additional independent oversight prov ided by a new Parks, Recreation and Arts Commission (Commission) consisting of nine (9) members.
More information about the City can be found in the annual budget and ACFR, both of which are available on the City’s website, www.fresno.gov.
B. Measurement Focus
Governmental Fund Financial Statements
Governmental fund financial statements (i.e., balance sheet and statement of revenues, expenditures, and changes in fund balance) are reported using the curr ent 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. T he City considers property tax revenues, local taxes, licenses, interest, and other intergovernmental revenues to be available if they are collected within 60 days of the end of the current fiscal period. All other revenue items are considered to be measurable and available only when the City receives cash. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
The City uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts.
CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
8 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
Measure P Fund – The revenues generated by the Measure P us e tax are allocated by the City on an annual basis. Under the provisions set forth by the Fresno Clean and Safe Neighborhood Parks Tax Ordinance and expenditure purposes defined in the ballot measure, funds are received and expended through six separate categories.
1. Improving and Maintaining Safe, Clean Neighborhood Parks and Playgrounds.
2. New Neighborhood Parks; Senior and Youth Recreation Facilities.
3. Youth and Senior Recreation Programs; After School Programs; and Job Training for Youth and Veterans.
4. Expanded Access to Arts and Culture.
5. Safe Walking and Biking Trails; Street Beautif ication and Litter Removal; and the San Joaquin River Parkway.
6. Program implementation, planning and plan updates , program and project innovation, and audit and oversight support.
The City adopts annual appropriated budgets for its M easure P Fund. A budgetary comparison schedule has been provided for this fund to demonstrate compliance with the budget.
C. Basis of Accounting
The City uses the modified accrual basis of accounti ng in the governmental funds. In accordance with the provision of the Government Code and other statutory provisions, the City prepares and adopts a budget for each fiscal year. The City adopts annual budgets for the Me asure P Fund on the cash basis of accounting plus encumbrances. Expenditures, revenues, appropriations, estimated revenues and encumbrances are recorded in the applicable funds.
D. Assets, Liabilities and Net Position/Fund Balance
Cash and Investments
Cash for the Measure P Fund is pooled with the City’s cash and investments. Investment income is allocated to the Measure P Fund by the City Treasury based on its average daily cash balances. The City manages its pooled idle cash and investments under a formal invest ment policy that is adopted and reviewed by the City, and that follows the guidelines of the State of California Government Code.
CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
9 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities and Net Position/Fund Balance (Continued)
Capital Assets
Capital assets, which include property and equipmen t, are reported in the City of Fresno’s Annual Comprehensive Financial Report (ACFR). As Measure P is included as a Special Revenue fund of the City’s ACFR, these financial statements will only detail the rela ted capital outlay activity. See Note 3 for more information. Please refer to the City’s ACFR for more information regarding the Capital Asset Policy and related depreciation lives/methods.
Fund Balance
Fund Balance Classification
The governmental fund financial statem ents present fund balances based on cl assifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective government al funds can be spent. The classifications used in the governmental fund financial statements are as follows:
Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact.
Restricted – This classification includes amounts for whic h constraints have been placed on the use of the resources either (a) externally imposed by credit ors (such as through a debt covenant), grantors, contributors, or laws or regulations of other govern ments, or (b) imposed by law through constitutional provisions or enabling legislation.
Committed – This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council remove or change t he specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that ex isting resources have been specifically committed for use in satisfying those contractual requirements.
Assigned – This classification includes amounts that are co nstrained by the City’s intent to be used for a specific purpose but are neither rest ricted nor committed. This intent can be expressed by legislation or action of the City Council, the Mayor, or the City Manager, which legislation has delegated the authority to assign amounts for specific purposes.
Unassigned – This classification includes amounts that have not been assigned to other funds or restricted, committed or assigned to a specific purpose within the City.
The City would typically use restricted fund balances first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to deter the use of these other classified funds.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make esti mates and assumptions that affect certain reported amounts of assets and liabilities and di sclosure of contingent assets and liab ilities at the date of the financial statements and the reported amounts of revenues and exp enditures during the reporting period. Accordingly, actual results could differ from those estimates.
CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
10 NOTE 2 – CASH AND INVESTMENTS
Cash and investments are pooled within the City-wide Treasure r's Pool. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by the Treasury Invest ment Pool for the entire Treasury Investment Pool portfolio (in relation to the amortized cost of that portfo lio). The balance available for withdrawal is based on the accounting records maintained by the Treasury Invest ment Pool, which are recorded on an amortized cost basis. Income from the investment of pooled cash is allocated based upon the actual balance of the fund as a percentage of the total pooled cash balance. The City manages its pooled idle cash and investments under a formal investment policy that is adopted and reviewed by the City, and that follows the guidelines of the State of California Government Code.
City-wide information concerning cash and investments for the year ended June 30, 2022, including fair value hierarchy, authorized investments, depos it and investment risk, concentration of credit risk, interest rate risk, default credit risk, and custodial credit risk, may be f ound in the notes of the City's Annual Comprehensive Financial Report (ACFR), which is available on the City's website.
NOTE 3 – CAPITAL OUTLAY
The following is a summary of changes in capital outlay:
Balance Dispostions/ Balance
June 30, 2021 Additions Adjustments June 30, 2022
Capital Outlay:
Land - $ 4,410,850$ - $ 4,410,850$ Buildings - 100,000 - 100,000 Improvements - 509,528 - 509,528 Machinery and equipment - 65,238 - 65,238 Furniture and fixtures - 42,763 - 42,763 Total capital outlay - $ 5,128,379$ -$ 5,128,379$
See Note 1(d) for more information related to Measure P Capital Outlay.
CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
11 NOTE 4 – INTERFUND ACTIVITY
A. Due from/Due to Other Funds
Interfund receivable and payable balances arise from interfund transactions and are recorded by all funds affected in the period in which transactions are execut ed and are expected to be repaid shortly after the end of the fiscal year.
Activities within due from/due to other fund balances at June 30, 2022 are as follows:
Due From Due To
Measure P Fund - $ 12,360$
Total - $ 12,360$
B. Interfund Transfers
Interfund transfers consist of operating transfers from funds receiving rev enue through which the resources are to be expended. The Measure P Fund transferred $5,414 to the General Fund for the purpose of overhead allocation adjustments and $3,900 to the Debt Service Fund for its share of pension costs.
Interfund transfers for the year ended June 30, 2022 were as follows:
Transfers In Transfers Out
Measure P Fund - $ 9,314$
Total - $ 9,314$
12 THIS PAGE IS LEFT BLANK INTENTIONALLY.
13 REQUIRED SUPPLEMENTARY INFORMATION
14 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
BUDGETARY COMPARISON SCHEDULE – MEASURE P FUND
FOR THE YEAR ENDED JUNE 30, 2022
Actual Actual
Amounts Over Budget Amounts
Budgeted Amounts Budgetary (Under) To GAAP GAAP Variance with Original Final Basis Final Budget Reconciliation Basis Final Budget
REVENUES
Taxes 29,573,100$ 29,723,100 $ 35,613,564 $ 5,890,464 $ 7,510,966 $ 43,124,530 $ 13,401,430 $ Use of money and property - - 125,017 125,017 - 125,017 125,017 Miscellaneous - - 14,357 14,357 - 14,357 14,357 Other financing sources:
Transfers from other funds - 2,100 - (2,100) - - (2,100) Total revenues 29,573,100 29,725,200 35,752,938 6,027,738 7,510,966 43,263,904 13,538,704
EXPENDITURES
General government 1,043,200 1,043,200 882,259 (160,941) (489,781) 392,478 650,722 Public ways and facilities - 901,900 217,010 (684,890) (193,320) 23,690 878,210 Culture and recreation 10,476,200 12,656,900 6,313,823 (6,343,077) (258,157) 6,055,666 6,601,234 Capital outlay 10,652,800 10,958,100 4,622,639 (6,335,461) 505,740 5,128,379 5,829,721 Other financing uses:
Transfers to other funds - - 5,414 5,414 3,900 9,314 (9,314) Total expenditures 22,172,200 25,560,100 12,041,145 (13,518,955) (431,618) 11,609,527 13,950,573 Net change in fund balance 7,400,900$ 4,165,100 $ 23,711,793 $ 19,546,693 $ 7,942,584 31,654,377 27,489,277 $ Fund balance (deficit) - beginning -
Fund balance (deficit) - ending 31,654,377$
15 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
NOTES TO THE BUDGETARY COMPARISON SCHEDULE
JUNE 30, 2022
NOTE 1 – BUDGETARY INFORMATION
An annual nonappropriated budget, which establishes the to tal spending authority for the Measure P Fund, is adopted by the City Council just prior to the beginning of the City’s fiscal year. The City Council may authorize amendments to the budget during the year as deemed necessary. Budgeted amounts are reported as amended.
The City’s budgetary process is based upon an account ing basis other than generally accepted accounting principles (GAAP). The results of operations (actual) are presented in the budget and actual comparison schedule in accordance with the budgetary process (Budget Basis) to provide a meaningful comparison with the budget, while the financial statements are presented using the GAAP basis.
One of the major differences between the Budget basis and GAAP basis is ti ming differences. Timing differences represent transactions that are accounted for in different periods for the Budget Basis as opposed to the GAAP basis of reporting. Revenues such as grant revenues recognized on a cash basis are unavailable for GAAP reporting, while various exp enditures, not recognized on a cash basis, have been accrued for GAAP reporting.
Please refer to the City's ACFR for more information regarding the City's budgetary process and development.
16 THIS PAGE IS LEFT BLANK INTENTIONALLY.
17 OTHER SUPPLEMENTARY INFORMATION
18 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
EXPENDITURE PLAN
JUNE 30, 2022
Made
Within Within Within Available
Constraint in Subpara. Paragraph Measure & Implied o r (Budgeted YTD Adjusted YTD Adjusted EXPENDITURE PLAN — FMC §7-1506(b) Measure % % % Stated FY22) Revenue Expenses (1) Improving and Maintaining Safe, Clean Neighborhood Parks and Playgrounds 46.000% 15,663,000$ 13,605,700 $ 19,902,381 $ 4,537,716 $ FMC §7-1508(e) (2) - Administration No more than 2.00% 313,260 - (C) for highest-need neighborhoods No less than 50.000% 7,831,500 7,528,432 2,145,874 (E) improving operations and maintenance of existing parks and facilities No less than 5,000,000 4,116,581 (2) New Neighborhood Parks; Senior and Youth Recreation Facilities 21.500% 7,320,750 6,345,600 9,303,917 4,643,612 FMC §7-1508(e) (2) - Administration No more than 2.00% 146,415 - - (C) for highest-need neighborhoods No less than 50.000% 3,660,375 6,345,600 4,618,456 (3) Youth and Senior Recreation Programs; After School Programs; and Job Training for Youth and Veterans 8.500% 2,894,250 2,513,700 3,666,071 2,257,941 FMC §7-1508(e) (2) - Administration No more than 2.00% 57,885 - - (C) job training or career development [as specified] No less than 50.000% 1,447,125 2,090,100 1,376,152 (4) Expanded Access to Arts and Culture 12.000% 4,086,000 150,000 5,193,865 37,500 FMC §7-1508(e) (2) - Administration No more than 2.00% 81,720 - - (5) Safe Walking and Biking Trails; Street Beautification and Litter Removal; and the San Joaquin River Parkway 11.250% 3,830,625 2,887,300 4,867,607 1,103,292 FMC §7-1508(e) (2) - Administration No more than 2.00% 76,613 96,858 (B) acquisition, development, improvement, restoration, operations, maintenance, or rehabilitation projects 47.000% 1,764,386 542,600 (C) operations and maintenance of trails No more than 20.000% 352,877 217,010 (D) prioritized for Class I and Class IV trails in the ATP No less than 25.000% 441,096 (E) operations and projects consistent with the San Joaquin River Parkway Master Plan 18.000% 675,722 (F) litter and debris removal, beautification and restoration of major streets and highways 35.000% 1,313,904 71,319 PROGRAM IMPLEMENTATION AND FISCAL CONTROLS — FMC §7-1508(e) (4) Program implementation, planning and plan updates, program and project innovation, and audit and oversight support 0.750% 255 ,375 57,800 324,620 178 TOTALS 100.00% 34,050,000$ 25,560,100 $ 43,258,461 $ 12,580,239 $ Reconciling Items:
Transfers out to other City funds 9,314
Audit adjustments (980,026)
Total reconciling items: (970,712)
ADJUSTED TOTALS 100.00% 34,050,000$ 25,560,100 $ 43,258,461 $ 11,609,527 $
19 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
EXPENDITURE PLAN – PROJECT STATUS
JUNE 30, 2022
EXPENDITURE PLAN — FMC §7-1506(b)
(1) Improving and Maintaining Safe, Clean Neighborhood Parks and Playgrounds Operating Projects
Section Name Project Name Total Budgeted Expended Balance Description of Program or Service / Status Parks & Rec Admin & Management 220,400$ 92,101 $ 128,299 $ PARCS Department administrative and management team leads the department in Measure P funded projects, programs, and services and ensures proper administration of Measure P funding.
Parks Planned Maintenance 1,345,900 1,164,044 181,856 Planned Maintenance includes maintaining and improving existing park locations, including operations and maintenance expenses such as personnel, utilities, and supplies/equipment for expanded guest services enabled by Measure P.
Parks Custodial Maintenance 535,900 551,248 (15,348) Custodial Maintenance includes maintaining and improving conditions at existing park locations through enhanced janitorial services, including repairs, personnel, and supply expenses.
COVID-19 Response 2,100 388 1,712 Personnel expenses for temporary employee providing disinfectant and sanitation services to ensure the health and safety of employees and the public.
After Schl, Rec & CommSvcs Adm 50,000 8,734 41,266 After School Program administration includes expenses associated with customer service, planning, and preparation of parks programming.
Neighborhood Parks & Centers 780,400 646,071 134,329 PARCS Department includes more than 80 park facilities located throughout the City, including neighborhood, pocket and regional parks and community centers. Amenities offered across facilities include athletic fields with lighting, swimming pools, splashpads, dog parks, BMX tra cks, skate parks, tennis courts, pickleball courts, futsal courts, basketball courts, picnic shelters, and play structures. The Department strives to provide safe and clean park facilities for all members of the community to enjoy. The PARCS Department Custodial Team and Park Attendants make this possible by providing customer service to the community, cleaning and sanitizing restrooms, removing litter from parks, opening gates for entry, submitting work orders for any broken or damaged equipment, reporting graffiti and pressure washing high traffic areas. Additionally, Park Attendants monitor high use park amenities such splash pads, tot lots and sports courts for safety and functionality.
Adult Sports 219,500 161,406 58,094 The Adult Sports Program offers year-round competitive and non-competitive sports for adults ages 18 and up including baseball, softball, flag football, basketball, and soccer.
Senior Citizens Program - 134 (134) Senior Programming provides specialized activities tailored to the unique needs and interests of Fresno’s senior population. Senior programming aims to improve quality of life in a safe and enjoyable environment through recreation and community-building. Programming is currently offered at seven sites: Inspiration, Lafayette, Mary Ella Brown, Mosqueda, Pinedale, Senior Citizens Village, and Ted C. Wills. Programing for seniors includes informational workshops, crafts, ceramics, exercise, billiards, and the opportunity to connect with other seniors in the area. Senior Recreation Programming is offered from 9:00 a.m. to 12:00 p.m.
Aquatics - 193 (193) Aquatics Programming runs from June through September at up to 18 locations throughout Fresno. Services provided include swim lessons, senior aerobics, junior lifeguards, and open recreational swim. October through May, the aquatics program offers Adult and Pediatric CPR, First Aid, AED certifications and Lifeguard Certification Courses to the community and PARCS employees.
Action Sports - 202 (202) Action Sports Programming occurs at the Woodward Park Bike Complex and include BMX Racing practices and competitive events. Additionally, skatepark and BMX facilities are included in action sports and are located at over 10 parks throughout the City of Fresno.
Polynesian Dance - 1,617 (1,617) Polynesian Dance is program offered through the neighborhood parks/community centers to provide the community an opportunity to learn and practice Polynesian Dance and Culture.
Community Science - 1,180 (1,180) Science Programming includes hands-on workshops at Highway City Science Center, mobile science workshops, family science night events, camps, and after school science programs. The Highway City Community Science Center serves to encourage curiosity and a love for science through hands-on learning, investigation, and exploration. The Highway City Community Science Workshops provide a variety of opportunities for kids ages 7 and up, to engage in STEM activities. Additionally, the mobile science unit allows PARCS to bring hands-on science to youth and families at parks, schools and special events citywide.
Youth Sports - 232 (232) Youth Sports Programming operates year-round. PARCS serves youth ages 3-6 and 7-12 and provides programming for basketball, indoor and outdoor soccer, t-ball, flag football, and various skills camps and clinics.
Contract After School - 332 (332) Sports Play Active Recreation for Kids (SPARK) After School Programming at up to 29 schools through a partnership with Fresno Unified School District as well as science programming at school sites. Charges to Measure P are expenses related to administrative delivery of the programs.
Graffiti 75,000 - 75,000 This program moved to another Department and thus no expenditures.
ONSCE Admin
15,000 9,448 5,552 Office of Neighborhood Safety and Community Engagement Program administration includes expenses related to equipment, supplies and training to allow for program delivery.
Youth Jobs - 928 (928) Description listed below.
Irrigation Charges 338,200 82,375 255,825 Irrigation charges include expenses associated with utility costs and repairs to maintain irrigation systems at existing parks.
Landscape and Mowing Charges 1,365,700 647,235 718,465 Landscape and Mowing includes expenses associated with maintaining existing park green spaces and landscapes.
Special Project DPW Direct Charges - 2,450 (2,450) Expenses associated with improving landscaping, mowing and irrigation at existing parks.
Total Category 1 - Operating expenditures 4,948,100 3,370,318 1,577,782
20 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
EXPENDITURE PLAN – PROJECT STATUS
JUNE 30, 2022
(1) Improving and Maintaining Safe, Clean Neighborhood Parks and Playgrounds (CONTINUED) Capital Projects
Section Name Project Name Total Budgeted Expended Balance Description of Program or Service / Status Parks & Rec Capital Section Slurry Seal Various Parks 164,600$ - $ 164,600$ Planning Parks & Rec Capital Section Tot Lot Replacement - Var Pks 54,900 - 54,900 Underway Parks & Rec Capital Section Dickey Improvements II 20,800 15,336 5,464 Underway Parks & Rec Capital Section Pilibos Improvements-F19 17-3a 790,000 38,715 751,285 Underway Parks & Rec Capital Section Granny's Sec Light -F19 17-3a 101,900 40,622 61,278 Underway Parks & Rec Capital Section Len Ross Improvements 30,000 26,341 3,659 Complete pending final payment Parks & Rec Capital Section Maxie Parks HVAC Design 929,200 3,700 925,500 Underway Parks & Rec Capital Section Roeding Dog Park Reloc-F21CR24 498,800 49,548 449,252 Underway Parks & Rec Capital Section JSK Field Re-Seed-F21CR25 5,000 5,560 (560) Complete pending final payment Parks & Rec Capital Section Vinland Addtl Lighting-F21CR30 233,800 27,119 206,681 Complete pending final payment Parks & Rec Capital Section River Bottom Sec Upgrd-F21CR38 10,000 938 9,062 Planning Parks & Rec Capital Section Logan Shade Structure-F21CR39 100,000 83,350 16,650 Complete pending final payment Parks & Rec Capital Section Maxie Parks Mitigation-F21F4 10,000 8,582 1,418 Underway Parks & Rec Capital Section Logan Improvements-F21F31 243,800 70,007 173,793 Underway Parks & Rec Capital Section TCW Sr Ctr HVAC Replacement 16,000 9,502 6,498 Complete pending final payment Parks & Rec Capital Section Irrig Pump/Controller 259,400 17,084 242,316 Underway Parks & Rec Capital Section Prop68 Renovation Funding Gap 3,233,800 - 3,233,800 Not started Parks & Rec Capital Section Carryover -F21F13 1,136,900 265,225 871,675 Underway Parks & Rec Capital Section Granny Modular Removal 29,400 21,291 8,109 Complete pending final payment Parks & Rec Capital Section Quigley HVAC 32,600 - 32,600 Underway Parks & Rec Capital Section Pilibos Roof Replacement 28,700 28,700 - Complete pending final payment Parks & Rec Capital Section Lingo F21F13 150,000 5,910 144,090 Underway Parks & Rec Capital Section WPark Amphi Shade Structure 382,500 9,168 373,332 Underway Parks & Rec Capital Section Dickey Ctr Parking Lot Gate 79,200 3,711 75,489 Underway Parks & Rec Capital Section FRESNO BARRIOS CO F21F13 100,000 - 100,000 Not Started Parks & Rec Capital Section Mary Ella Brown Walk In UNIT 16,300 15,853 447 Underway Total Category 1 - Capital expenditures 8,657,600 746,262 7,911,338 Total Category 1 Expenditures 13,605,700 4,116,580 9,489,120 (2) New Neighborhood Parks; Senior and Youth Recreation Facilities Capital Projects
Section Name Project Name Total Budgeted Expended Balance Description of Program or Service / Status Parks & Rec Capital Section Milburn/Dakota Park-F19 17-3a 500 - 500 Underway Parks & Rec Capital Section South Tower CIP-F19 17-3a - - - Underway Parks & Rec Capital Section Bulldog/6th Building-F20 48,52 600,500 46,498 554,002 Underway Parks & Rec Capital Section Van Ness Triangle Park 130,000 11,843 118,157 Underway Parks & Rec Capital Section Citywide Senior Center 1,065,100 50,579 1,014,521 Underway Parks & Rec Capital Section El Dorado Park ACQ-F22M98&102 49,500 9,536 39,964 Underway Parks & Rec Capital Section Tower Theatre 4,500,000 4,500,000 - Complete Total Category 2 - Capital expenditures 6,345,600 4,618,456 1,727,144
21 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
EXPENDITURE PLAN – PROJECT STATUS
JUNE 30, 2022
(3) Youth and Senior Recreation Programs; After School Programs; and Job Training for Youth and Veterans Operating Projects
Section Name Project Name Total Budgeted Expended Balance Description of Program or Service / Status Neighborhood Parks & Centers 1,064,000$ 975,780 $ 88,220 $ After School Programming provides services that keep children and teens engaged. Programming occurs at 18 parks from 3:00 p.m. to 7:00 p.m. After School Programming includes arts and crafts, tournaments, cooking classes, outside games and sports, karate, break dancing, zumba, movie nights as well as educational components including homework help and tutoring, teen leadership development, mentoring, and community services projects.
Adult Sports - 62 (62) Adult sports listed description listed above.
Senior Citizens Program 157,500 27,818 129,682 Senior Programming provides specialized activities tailored to the unique needs and interests of Fresno’s senior population. Senior programming aims to improve quality of life in a safe and enjoyable environment through recreation and community-building. Programming is currently offered at seven sites: Inspiration, Lafayette, Mary Ella Brown, Mosqueda, Pinedale, Senior Citizens Village, and Ted C. Wills. Programing for seniors includes informational workshops, crafts, ceramics, exercise, billiards, and the opportunity to connect with other seniors in the area. Senior Recreation Programming is offered from 9:00 a.m. to 12:00 p.m.
Aquatics 449,300 330,303 118,997 Aquatics Programming runs from June through September at up to 18 locations throughout Fresno. Services provided include swim lessons, senior aerobics, junior lifeguards, and open recreational swim. October through May, the aquatics program offers Adult and Pediatric CPR, First Aid, AED certifications and Lifeguard Certification Courses to the community and PARCS employees.
Action Sports 199,000 188,252 10,748 Action Sports Programming occurs at the Woodward Park Bike Complex and include BMX Racing practices and competitive events. Additionally, skatepark and BMX facilities are included in action sports and are located at over 10 parks throughout the City of Fresno.
Weekend Recreation & Fitness - 1,993 (1,993) Temporary employee personnel charges as part of the Park Attendant Program, which is also captured under Parks Custodial Maintenance and Neighborhood Parks & Centers. The Park Attendant Program provides staff onsight at existing parks to provide guest services, light janitorial, and provide presence to activate the park spaces and promote safety. This program improves existing park spaces.
Community Science 8,700 94,739 (86,039) Science Programming includes hands-on workshops at Highway City Science Center, mobile science workshops, family science night events, camps, and after school science programs. The Highway City Community Science Center serves to encourage curiosity and a love for science through hands-on learning, investigation, and exploration. The Highway City Community Science Workshops provide a variety of opportunities for kids ages 7 and up, to engage in STEM activities. Additionally, the mobile science unit allows PARCS to bring hands-on science to youth and families at parks, schools and special events citywide.
Youth Sports 155,000 65,710 89,290 Youth Sports Programming operates year-round. PARCS serves youth ages 3-6 and 7-12 and provides programming for basketball, indoor and outdoor soccer, t-ball, flag football, and various skills camps and clinics.
Camp Fresno Youth Recreation 100,000 104,633 (4,633) Camp Fresno Youth Recreation Programming is offered during the summer to youth for free 1 and 3 day camps.
Transportation is provided by the City and participants get a full experience of camp food, hikes, bond fires, story telling and making new friends. Programming also includes access to the outdoors, nature, as well as instruction in leadership, career readiness, civic engagement, and team building.
ONSCE Admin 240,200 235,252 4,948 Office of Neighborhood Safety and Community Engagement Programming facilitates community-wide collaborative efforts to prevent and mitigate violence. This is achieved by providing support for Fresno’s youth and families through job readiness programs, training opportunities, tutoring, tattoo removal, hospital-based intervention programs, and street outreach. The Programming brings together over 100 local service providers to provide wrap- around resources for youth and young adults including: substance abuse intervention, anger management, mental health, education, food, housing, mentoring, health services, activities, and other basic life skill needs and services.
The ONSCE team also facilitates Fresno Summer Nights. Fresno Summer Nights offers a series of late-night structured events aimed at reducing violence and gang-related activities in areas with past incidence of violence.
Youth Jobs 140,000
136,069 3,931 Youth with varying employment experience participate in a 7-week summer employment development program.
Participants are hired as City of Fresno PARCS employees and a earn a paycheck by supporting existing staff. At their job, youth assist in the completion of daily functions at parks and in community centers throughout Fresno.
Participants also attend paid employment training workshops that are aligned with youth development principles and infused with life skill education. Workshops provide structured, incremental guidance to help develop the non- cognitive skills that a work environment cannot provide. Workshops also include team building recreation activities to demonstrate services PARCS offers the community, engage participants, and promote a sense of community among peers.
Total Category 3 - Operating expenditures 2,513,700
2,160,611 353,089
Total Category 3 Expenditures 2,513,700 2,160,611 353,089
22 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
EXPENDITURE PLAN – PROJECT STATUS
JUNE 30, 2022
(4) Expanded Access to Arts and Culture
Capital Projects
Section Name Project Name Total Budgeted Expended Balance Description of Program or Service / Status Parks & Rec Capital Section Cultural Arts Plan 150,000$ 37,500 $ 112,500 $ Underway Total Category 4 - Capital expenditures 150,000 37,500 112,500 (5) Safe Walking and Biking Trails; Street Beautification and Litter Removal; and the San Joaquin River Parkway Dept of Public Utilities-Solid Waste Beautify Fresno 985,400 882,081 103,319 An initiative directed to clean and beautify the city through the elimination of trash, graffiti, and blight, and the creation of community-based beautification projects
Public Works Projects Public Works Projects 1,901,900 217,019 1,684,881 Public Works Projects Total Category 5 - Operating expenditures 2,887,300 1,099,100 1,788,200 PROGRAM IMPLEMENTATION AND FISCAL CONTROLS — FMC §7-1508(e) (6) Program implementation, planning and plan updates, program and project innovation, and audit and oversight support Operating Projects
Program implementation Administrative tasks 57,800 178 57,622 Administrative tasks Total Category 6 - Operating expenditures 57,800 178 57,622 TOTALS 25,560,100 12,032,425 13,527,675 Reconciling Items:
Year-end City accruals 544,507
Transfers out to other City funds 9,314
Audit adjustments (980,026)
Other reconciling items 3,307
Total reconciling items: (422,898)
ADJUSTED TOTALS 25,560,100$ 11,609,527 $ 13,527,675 $
23 OTHER INDEPENDENT AUDITOR’S REPORT
24 THIS PAGE IS LEFT BLANK INTENTIONALLY.
25 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND THE
RULES AND REGULATIONS OF THE MEASURE P ORDINANCE
To the Honorable Mayor and City Council
City of Fresno, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial st atements of the Measure P Fund of the City of Fresno, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic fi nancial statements and have is sued our report thereon dated December 7, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions 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.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibilit y that a material misstatement of the City’s financial statements will not be prevented, or detect ed and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficienc ies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in inte rnal control that might be material weaknesses or significant deficiencies and therefore, material weakness es or significant deficiencies may exist that were not identified. We identified a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2022-001 that we consider to be a material weakness.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
26 City of Fresno’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the ac companying schedule of findings and questioned costs.
The City’s response was not subjected to the other audi ting procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City ’s internal control or on compliance. This report is an integral par t of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and co mpliance. Accordingly, this communication is not suitable for any other purpose.
Clovis, California
December 7, 2022
27 CITY OF FRESNO, CALIFORNIA
MEASURE P FUND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting
Material weakness(es) identified? X Yes No
Significant deficiency(ies) identified -
not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No
SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2022-001 – Financial Close and Reporting Process (Material Weakness)
Condition: The City did not properly record prepaid expenses and expenses during the year-end closing process. We identified this error during our audit and proposed the necessary accounting entry to correct the balances of the related accounts. Management agrees with our adjustment and will post the entry, so the City’s trial balance reconciles to the issued financial statements.
Criteria: A strong system of internal controls and managemen t review requires that general ledger account balances be properly reconciled to a subsidiary ledger or other adequate supporting documentation on a periodic basis, as well as during the year-end financi al close process. Management is responsible for maintaining accounting records in accordance with acco unting principles generally accepted in the United States of America (U.S. GAAP).
Cause: Internal controls over the year-end financial repo rting process were not properly designed and were not placed in operation.
Effect: As a result of this condition, prepaid expenses and expenses were initially misstated.
Recommendation: The City should enhance its year-end financi al close procedures to include the additional steps necessary to ensure proper reconciliation and reporti ng of all significant account balances, in addition to ensuring there are supporting schedules to support those balances.
Response: We agree with the recommend ation. Staff, including Finance and Fleet, have implemented additional procedures and controls to properly revi ew and record billings near year-end. The additional processes will be embedded into year-end closing tasks an nually including updating the status of the prior year on ordered equipment, two-party review of pre-billings, and two-party review of the journal to record appropriate adjusting tracking journal and the due to/due from between Fleet Internal Service Fund and other City funds.