December 10, 2025
To the Honorable Mayor and City Council
City of Fresno, California
We have audited the financial statements of the Measure P Fund of the City of Fresno, California (the City), for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards , as well as certain informatio n related to the planned scope and timing of our audit. We have communicated such inform ation in our engagement letter previously provided to you.
Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of approp riate accounting policies. The significant accounting policies use d by the City are described in Note 1 to the financial statements . No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no tran sactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All si gnificant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to th e financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most se nsitive estimate affecting the Measure P Fund of the City’s financial statements was:
Management’s estimate of the intere st income (use of money and property) is based on Measure P Fund’s average daily cash balance, the City-wide total cash ba lance, and related published pooled interest rates for every month during the fiscal year ended June 30, 2025. We evaluated the methods, assumptions, and data used to develop the interest income al location in determining that it is re asonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of manageme nt. During the audit, we noted a trivial adjustment that was needed to reconcile opening fund balance to the prior year issued Measure P Fund financial statements, which management has recorded. No other corrected or uncorrected misstatements were noted during the audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 10, 2025.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about au diting and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consul tation involves application of an accounting principle to the Measure P Fund of the City’s financial statements or a determinatio n of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the cons ulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the applic ation of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors . However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
In our audit engagement letter previously provided to you, we communicated the following significant risks of material misstatement (significant risks) as part of our audit planning:
Management override of controls
Improper revenue recognition due to fraud
During the audit, we identified an additional significant risk:
Unallowable payments could be made from the Measure P Fund (nonconformance with Expenditure Plan) These risks were addressed within our audit procedures, and we have no findings to report related to these risks.
Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedule, whic h is required supplementary information (RSI) that supplements the basic financial statements. Our proc edures consisted of inquiries of management regarding the methods of preparing the information and comparing the inform ation 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the Measure P Expenditure Plan and the Measure P Expenditure Plan – Project Status reports, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appr opriate and complete in relation to our audit of the financia l statements. We compared and reconciled the supplementary info rmation to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the information and us e of the Honorable Mayor, City Council and management of the City of Fresno and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,