FY 2022 Annual
Comprehensive
Financial Report
(ACFR)
MARCH 30, 2023
2 MARCH 30, 2023 FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) What is the Annual Comprehensive Financial Report (ACFR)? A set of financial statements which conform to the accounting requirements established by the Governmental Accounting Standards Board (GASB)
The report must by audited by an independent auditor using generally accepted government auditing standards
2022 ACFR = Covers the fiscal year ended June 30, 2022 3 MARCH 30, 2023
Financial Highlights (amounts in thousands)
General
Fund All Funds
Total Revenues $407,557 $1,152,777
Total Expenses $374,375 $927,471
Total Assets $171,644 $4,869,028
Total Liabilities $43,779 $1,588,277
Net Positions as of June 30, 2021 $102,943 $2,605,916 Net Positions as of June 30, 2022 $104,691 $2,831,222 FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
4 MARCH 30, 2023
Auditor’s Responsibilities
Express an opinion on the financial statements – received the best opinion possible “unmodified”
Identity and assess risk of material misstatement – no misstatements Obtain understanding of internal controls – no significant deficiencies Evaluate appropriateness of accounting policies and presentation of financial statements – two financial statement findings FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
5 MARCH 30, 2023
New Accounting Standard(s)
Governmental Accounting Standards Board (GASB) Standard No. 87 “This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.”
FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
6 2022 Annual Comprehensive Financial Report (ACFR)
Audit Results, Findings & Recommendations
Type of Opinion Results
Financial Statements Unmodified
Federal Compliance Unmodified
Financial Statement Finding 2022-001 Internal Control Over Financial Reporting “During the audit, as discussed in Note 15 to the basic financial statements, the City restated its beginning net position/fund balance of the government-wide governmental activities, the governmental funds and the custodial funds, in order to correct the previously reported financial statements to comply with the GASB Statement No. 84, Fiduciary Activities, that was required to be implemented as of the year ended June 30, 2021. The governmental activities beginning net position was restated by $3.9 million.” Management Response
Prior to GASB 84, custodial funds were not required to be included with the fiduciary fund statements.
Staff has since corrected and included it with reporting in FY 2022. Staff will ensure that future GASB statements are implemented in the year in which they go into effect and will be proactive to ensure sufficient time to adequately implement statement changes in the future.
MARCH 30, 2023 FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) 7 2022 Annual Comprehensive Financial Report (ACFR)
Financial Statement Finding 2022-002 Internal Control Over Preparation of Schedule of Federal Awards “During our review of the Schedule of Expenditures of Federal Awards (“Schedule”) provided by the City, we noted the City federal expenditures for the Emergency Rental Assistance Program, passed through the State of California in the amount of $12,239,896 were excluded in the schedule. We also noted federal expenditures in the schedule for the State and Local Fiscal Recovery Fund were understated by $14,391,754.”
Management Response
Emergency Rental Assistance Program funds are Federal resources passed through the State. Staff designated spending as State resources and therefore incorrectly omitted them from the Schedule.
However, amounts were spent in accordance with program requirements. State and Local Fiscal Recovery Funds, though spent in accordance with program requirements, were similarly omitted from the Schedule by mistake. The City has created a Grants Management Unit in Finance to ensure proper expenditure tracking and accounting procedures, in addition to monitoring compliance with Uniform Guidance.
MARCH 30, 2023 FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) 8 MARCH 30, 2023
Questions
FY 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)