We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
We have reviewed, approved, and taken responsibility for the financial statements and related notes.
We have a process to track the status of audit findings and recommendations. We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
Significant assumptions we used in making accounting estimates, including those measured at fair value, are reasonable.
Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP. All component units are included and related organizations are properly disclosed. All funds and activities are properly classified.
All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.
All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. All interfund and intra-entity transactions and balances have been properly classified and reported.
Deposit and investment risks have been properly and fully disclosed. Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
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All required supplementary information is measured and presented within the prescribed guidelines.
With regard to investments and other instruments reported at fair value:
The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP.
There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.
With respect to nonattest services provided, we have performed the following:
Made all management decisions and performed all management functions; Assigned a competent individual to oversee the services; Evaluated the adequacy of the services performed;
Evaluated and accepted responsibility for the result of the service performed; and Established and maintained internal controls, including monitoring ongoing activities.
Information Provided
We have provided you with:
Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, and other matters;
Additional information that you have requested from us for the purpose of the audit; Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence.
We have provided to you our analysis of the City’s ability to continue as a going concern, including significant conditions and events present, and if necessary, our analysis of management’s plans, and our ability to achieve those plans. We have no reason to believe the City will not 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.
The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements.
All transactions have been recorded in the accounting records and are reflected in the financial statements.
We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. We have no knowledge of any fraud or suspected fraud that affects the City and involves:
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Management,
Employees who have significant roles in internal control, or Others where the fraud could have a material effect on the financial statements. We have no knowledge of any allegations of fraud or suspected fraud affecting the City’s financial statements communicated by employees, former employees, regulators, or others. We are not aware of any pending or threatened litigation, claims, and assessments whose effects should be considered when preparing the financial statements. We have disclosed to you the identity of the City’s related parties and all the related party relationships and transactions of which we are aware.
There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
We have disclosed to you all non-exchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Non-exchange Financial Guarantees, for those guarantees where it is more likely than not that the City will make a payment on any guarantee.
We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. There are no:
Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.
Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62.
Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62.
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Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updated on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. With respect to the City’s supplementary information:
We acknowledge our responsibility for the presentation of the supplementary information in accordance with U.S. GAAP.
We believe the supplementary information, including its form and content, is fairly presented in accordance with U.S. GAAP.
The methods of measurement and presentation of the supplementary information have not changed from those used in the prior period.
We have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information. We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor’s report thereon. With respect to the required supplementary information accompanying the financial statements:
We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.
We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP. The methods of measurement or presentation have not changed from those used in the prior period.
We have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances, line of credit, or similar arrangements have been properly disclosed.
With respect to the use of a specialist:
We agree with the findings of specialists in evaluating the City’s pension and other post- employment benefit liabilities and costs and have adequately considered the qualifications 230
of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.
We believe that the actuarial assumptions and methods used to measure pension and other postemployment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances.
We do not plan to make frequent amendments to the City’s pension or other postretirement benefit plans.
Single Audit
With respect to federal awards, we represent the following to you:
We are responsible for understanding and complying with, and have complied with, the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
We are responsible for the preparation and presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance We believe the schedule of expenditures of federal awards, including its form and content, is fairly presented in accordance with the Uniform Guidance The methods of measurement or presentation have not changed from those used in the prior period.
We are responsible for including the auditor’s report on the schedule of expenditures of federal awards in any document that contains the schedule and that indicates that the auditor has reported on such information.
We have identified and disclosed all of our government programs and related activities subject to the Uniform Guidance compliance audit.
We have notified you of federal awards and funding increments that were received before December 26, 2014 (if any) and differentiated those awards from awards and funding increments received on or after December 26, 2014, and subject to the audit requirements of the Uniform Guidance.
When the schedule of expenditures of federal awards is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards no later than the date of issuance by the entity of the schedule of expenditures of federal awards and the auditor’s report thereon.
We have, in accordance with the Uniform Guidance, identified in the schedule of expenditures of federal awards, expenditures made during the audit period for all awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, food commodities, direct appropriations, and other assistance.
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We have provided to you our interpretations of any compliance requirements that are subject to varying interpretations.
We have made available to you all federal awards (including amendments, if any) and any other correspondence relevant to federal programs and related activities that have taken place with federal agencies or pass-through entities.
We have received no requests from a federal agency to audit one or more specific programs as a major program.
We have identified and disclosed to you all amounts questioned and any known noncompliance with the direct and material compliance requirements of federal awards, including the results of other audits or program reviews, or stated that there was no such noncompliance. We also know of no instances of noncompliance with direct and material compliance requirements occurring subsequent to period covered by the auditor’s report. We have disclosed to you any communications from federal awarding agencies and pass- through entities concerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor’s report. We have made available to you all documentation related to compliance with the direct and material compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared (and are prepared on a basis consistent with the schedule of expenditures of federal awards).
The copies of federal program financial reports provided to you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass- through entity, as applicable.
We have monitored subrecipients, as necessary, to determine if they have expended subawards in compliance with federal statutes, regulations, and the terms and conditions of the subaward and have met the other pass-through entity requirements of the Uniform Guidance.
We have considered the results of subrecipients’ audits and have made any necessary adjustments to our own books and records.
We have properly classified amounts claimed or used for matching in accordance with related guidelines in the Uniform Guidance, as applicable. We have charged costs to federal awards in accordance with applicable cost principles. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform Guidance, and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions.
We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective 232
actions taken from the end of the period covered by the compliance audit to the date of the auditor’s report.
The reporting package does not contain personally identifiable information. We have disclosed all contracts or other agreements with service organizations and disclosed to you all communications from these service organizations relating to noncompliance at the organizations.
We have reviewed, approved, and taken responsibility for the financial statements and related notes and an acknowledgment of the auditor’s role in the preparation of this information.
We have reviewed, approved, and taken responsibility for accrual adjustments and an acknowledgment of the auditor’s role in the preparation of the adjustments. We have disclosed to you the nature of any subsequent events that provide additional evidence with respect to conditions that existed at the end of the reporting period that affect noncompliance during the reporting period.
In addition:
We are responsible for understanding and complying with the requirements of federal statutes, regulations, and the terms and conditions of federal awards related to each of our federal programs and have identified and disclosed to you the federal statutes, regulations, and the terms and conditions of federal awards that are considered to have a direct and material effect on each major federal program; and we have complied with these direct and material compliance requirements.
We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance for federal programs that provide reasonable assurance that we are managing our federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award that could have a material effect on our federal programs. Also, no changes have been made in the internal control over compliance or other factors that might significantly affect internal control, including any corrective action taken by management with regard to significant deficiencies and material weaknesses in internal control over compliance, have occurred subsequent to the period covered by the auditor’s report. We are responsible for and have accurately completed the appropriate sections of the Data Collection Form and we are responsible for taking corrective action on audit findings of the compliance audit and have developed a corrective action plan that meets the requirements of the Uniform Guidance.
Signature:
Title:
Finance Director
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ATTACHMENT 4:
Independent Accountant’s Report on Gann Spending Limit
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Independent Accountant’s Report on
Agreed-Upon Procedures Applied to the
Appropriations Limit Worksheet
To the Honorable City Council
City of Goleta
Goleta, California
We have performed the procedures enumerated below (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) on the accompanying Appropriations Limit Worksheet for the year ended June 30, 2023. The City of Goleta’s (the City) management is responsible for the accompanying Appropriations Limit Worksheet for the year ended June 30, 2023.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities has agreed to and acknowledged that the procedures performed are appropriate to meet for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the
population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our
procedures.
2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.
Finding: No exceptions were noted as a result of our
procedures.
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3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2023. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management of the City of Goleta, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
San Bernardino, California
March 27, 2024
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FISCAL YEAR
2022 - 2023
Change in California Per Capita Personal Income 7.55%
Change in the Population for the
City of Goleta 0.14%
Change in California Per Capita Personal Income
Converted to a Ratio 1.075500
Change in City of Goleta Population
Converted to a Ratio 1.001400
Calculation of Growth Factor (1.075500 x 1.001400) 1.077006 Fiscal Year 2021 - 2022 Limit 67,304,450$
Fiscal Year 2022 - 2023 Limit
($67,304,450 x 1.077006) 72,487,296$
APPROPRIATION LIMIT WORKSHEET
CITY OF GOLETA
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ATTACHMENT 5:
Single Audit Report for the Year Ended June 30, 2023
238
City of Goleta
Goleta, California
Single Audit Report on Federal Awards
Year Ended June 30, 2023
239
CITY OF GOLETA
SINGLE AUDIT REPORT ON FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page
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
1 Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
3 Schedule of Expenditures of Federal Awards 7
Notes to the Schedule of Expenditures of Federal Awards 8
Schedule of Findings and Questioned Costs 9
Summary Schedule of Prior Audit Findings 11
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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
Independent Auditor's Report
To the Honorable City Council
City of Goleta, 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 statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Goleta (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 27, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, 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 possibility that a material misstatement of the entity’s financial statements w ill not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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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 internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
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.
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 part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
March 27, 2024
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REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER
COMPLIANCE; AND REPORT ON SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE
UNIFORM GUIDANCE
Independent Auditor's Report
To the Honorable City Council
City of Goleta, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Goleta’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
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We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards , and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards , and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 244
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Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or em ployees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control ov er compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon, dated March 27, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 and certain additional 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 basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.
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In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
San Bernardino, California
March 27, 2024
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CITY OF GOLETA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2023
See accompanying notes to schedule of expenditures of federal awards. -7-
Federal Grantor / Assistance Program Amount
Pass-through Grantor / Listing Identification Federal Provided to Program Title Number Number Expenditures Subrecipient s U.S. Department of Transportation
Passed through the State of California, Department of Transportation:
Highway Planning and Construction
Highways & Bridge Projects 20.205 BPMPL-5481 (009) 599,721 $ - $ Passed through the State of California Office of Traffic Safety:
State and Community Highway Safety
Pedestrian and Bicycle Safety Program Grant 20.600 PS21045 (565) - Total - U.S. Department of Transportation 599,156 - U.S. Department of Homeland Security
Passed through the State of California, Department of Homeland Security:
Office of Emergency Service
Disaster Grants - Public Assistance
FEMA - Hazard Mitigation Grant Program 97.039 HMGP 70-0700-0-1-999 1,270,296 - Total - U.S. Department of Homeland Security 1,270,296 - U.S. Department of Housing and Urban Development
Direct assitance:
CDBG-Entitlement Grants Cluster
Community Development Block Grant/Entitlement Grants 14.218 B-09-MC-06-0597 209,949 35,967 Total - U.S. Department of Housing and Urban Development 209,949 35,967 U.S. Department of the Treasury
Passed through the State of California, Department the Treasury:
Coronavirus State and Local Fiscal Recovery Funds
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 825,000 - Total - U.S. Department of the Treasury 825,000 - Total Expenditures of Federal Awards 2,904,401$ 35,967 $
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CITY OF GOLETA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2023
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(1) Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the City of Goleta (the City) under federal programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
(2) Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the federal program. The City did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
(3) Sub-recipients
Of the federal expenditures presented in the schedule, the City provided federal awards to sub-recipients for the Community Development Block Grant (Assistance Listing No. 14.218) in the amount of $35,967. 248
CITY OF GOLETA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2023
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SECTION I: SUMMARY OF AUDITOR'S RESULTS
Financial Statements
accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported Noncompliance material to financial
statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported Type of auditor's report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that
are required to be reported in
accordance with section 2CFR
200.516(a)? Yes X No
Identification of major federal programs:
AL Number
21.027
97.039
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? Yes X No
Name of Federal Programs
Type of report the auditor issued on whether the financial statements audited were prepared in Coronavirus State and Local Fiscal Recovery Funds
FEMA - Hazard Mitigation Grant Program
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CITY OF GOLETA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2023
-10-
SECTION II: FINANCIAL STATEMENT FINDINGS
No matters to report.
SECTION III. FEDERAL AWARD FINDINGS
No matters to report.
250
CITY OF GOLETA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2023
-11-
CURRENT STATUS OF PRIOR YEAR FINDINGS:
No matters to report.
251
ATTACHMENT 6:
Presentation
252
Annual Comprehensive
Financial Report (ACFR) for
the Year Ended
June 30, 2023
City Council Meeting
April 16, 2024
253
Presentation Outline
ACFR Background
ACFR Reporting Model
ACFR Financial Highlights
Certificates of Achievement
Auditors Communication and Summary Results
2 254
ACFR Background
Annual audit required; contract with independent CPA firm Annual financial report prepared in accordance with nationally recognized accounting principles and financial reporting standards Communicates and presents the financial condition and results of operations of the City as a whole and for individual funds
“Comprehensive” because it includes information not required by financial reporting regulations
Received an unmodified (“clean”) opinion for FY 2022/23 Single Audit is required for FY 2022/23, due to exceeding $750k threshold ($2.9 million)
3 255
ACFR Reporting Model
4 INTRODUCTORY SECTION
FINANCIAL SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
AUDITED FINANCIAL STATEMENTS
Government-Wide (Full Accrual)
Governmental Activities
(No Business-Type Activities or Fiduciary Funds)
Fund
Governmental (Modified Accrual)
Fiduciary (Full Accrual)
(No Proprietary Funds)
Notes to the Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
256
• Transmittal Letter
• Principal City Officials
• Organizational Structure
• Certificate of Achievement
ACFR Reporting Model
5 The ACFR is organized in three major sections: Introductory, Financial and Statistical:
Introductory Section
• Independent Auditor’s Report
• M
anagement’s Discussion and Analysis
• Government-Wide and Fund Financial Statements
• Notes to the Financial Statements
• Required Supplementary Information
• Combining Financial Statements and Schedules
• Selected financial trends and demographic information Statistical Section
Financial Section
257
ACFR Financial Highlights
6 Financial Condition of the City at June 30, 2023:
Net position totaled $265.81 million
Decrease of approximately $629,000 or 0.2% from the prior fiscal year of $266.44 million. Overall total revenues from all sources equaled approximately $51.21 million Decrease of approximately $1.48 million or 2.8% from the $52.70 million in revenues the previous fiscal year. The City’s overall total expenditures were $51.84 million for the fiscal year Increase of approximately $10.66 million or 25.9% when compared to last fiscal year. General Fund Balance:
258