Annual Comprehensive Financial Report and Single Audit Report for the Year Ended June 30, 2024 — Goleta City Council, March 18, 2025 (part 2 of 2)

 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.
 The methods, data and significant assumptions used by us in making accounting estimates and their related disclosures, are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of the applicable financial reporting framework.  All 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.  We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements.  The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
 All component units, as well as joint ventures with an equity interest, if any, are included and other joint ventures 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.  Special items and extraordinary items 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.
 All required supplementary information is measured and presented within the prescribed guidelines.
 We have evaluated all of our lease and subscription agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements.  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.
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 With respect to preparation of the financial statements, 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, a process to monitor the system of internal controls.

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, meeting minutes, and other matters;  Additional information that you have requested from us for the purpose of the audit; and  Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
 A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report;
 A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor’s report.  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 information provided in electronic form are true representations of the original documents.  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 provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, and we believe that our use of the going concern basis of accounting is appropriate.
 We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
 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 entity’s financial statements communicated by employees, former employees, vendors, 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 entity’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 entity 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 entity is contingently liable.
 We have disclosed to you all nonexchange 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 Nonexchange Financial Guarantees , for those guarantees where it is more likely than not that the entity will make a payment on any guarantee. 232

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 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.
 Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
 The entity 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.

Use of a Specialist

 We agree with the findings of specialists in evaluating the entity’s net pension and net other post- employment benefit liabilities and related deferred amounts and have adequately considered the qualifications 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.

Cybersecurity

 There have been no cybersecurity breaches or other cyber events whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or otherwise considered when preparing the financial statements.

Supplementary Information in Relation to the Financial Statements as a Whole

With respect to supplementary information accompanying the financial statements:
 We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America.  We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America.  The methods of measurement or presentation have not changed from those used in the prior period.
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 We believe any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.  When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.
 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 entity of the supplementary information and the auditor’s report thereon.

Required Supplementary Information

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 believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.

Accounting Estimates and Related Disclosures
 The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware.
 We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.
 The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.
 The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
 We have obtained and applied appropriate specialized skills and expertise in making accounting estimates.
 We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial statements.

Luke Rioux, Finance Director

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ATTACHMENT 4:

Independent Accountant’s Report on Gann Spending Limit

235
735 E. Carneg ie Dr . Suit e I 00
San Bernardino . CA 92408
909 889 0871 T
909 889 5361 F
ramscpa . net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
A nny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS , ANDERSON , MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STAB ILITY . ACCURACY. TRUST.
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Independent Accountant’s Report
To the Honorable City Council
City of Goleta, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Goleta, California (the City) for the year ended June 30, 2024. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed- upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. 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 American Institute of Certified Public Accountants. 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, 2024.

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
January 7, 2025

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City of Goleta

APPROPRIATIONS LIMIT WORKSHEET
2023 – 2024

FISCAL YEAR
2023 - 2024
Change in California Per Capita Personal Income 4.44%
Change in the Population for the
City of Goleta 0.21%
Change in California Per Capita Personal Income
Converted to a Ratio 1.044400
Change in City of Goleta Population
Converted to a Ratio 1.002100
Calculation of Growth Factor (1.075500 x 1.001400) 1.046593 Fiscal Year 2022 - 2023 Limit 72,487,276$
Fiscal Year 2023 - 2024 Limit
($72,487,276 x 1.038134) 75,864,676$

APPROPRIATION LIMIT WORKSHEET

CITY OF GOLETA

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ATTACHMENT 5:

Single Audit Report for the Year Ended June 30, 2024
239

City of Goleta
Goleta, California

Single Audit Report on Federal Awards

Year Ended June 30, 2024

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CITY OF GOLETA

SINGLE AUDIT REPORT ON FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024

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 6

Notes to the Schedule of Expenditures of Federal Awards 7

Schedule of Findings and Questioned Costs 8

Summary Schedule of Prior Audit Findings 9

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735 E. Carneg ie Dr . Suit e I 00
San Bernardino . CA 92408
909 889 0871 T
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ROGERS , ANDERSON , MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STAB ILITY . ACCURACY. TRUST.

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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 Mayor and Members of the City Council
City of Goleta
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 (Government Auditing Standards), the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Goleta, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 20, 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 will not be prevented, or detected and corrected on a timely basis. We did not identify deficiencies that we consider to be material weaknesses. 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 determination of financial statement amounts. 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
December 20, 2024
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735 E. Carneg ie Dr . Suit e I 00
San Bernardino . CA 92408
909 889 0871 T
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ROGERS , ANDERSON , MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STAB ILITY . ACCURACY. TRUST.

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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 Mayor and Member of 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, 2024.

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, 2024.

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.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with re levant 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. 244

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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 co ntracts 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 detec ting 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 cont rol. 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 ri sks 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 regardi ng 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 c ontrol 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 effect iveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those char ged with governance regarding, among other matters, the planned scope and timing of the audit and any signifi cant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exis ts when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncomp liance with a type of compliance requirement of a federal program on a timely basis. A material weak ness in internal control over compliance is a deficiency, or a combination of defic iencies, 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.

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Our consideration of internal c ontrol 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 over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over co mpliance 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 expres sing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on inter nal 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements.

We issued our report thereon, dated December 20, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for t he 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 bas ic 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 st atements 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 st andards generally accepted in the United States of America. 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
February 7, 2025 (except for our report on the Schedule of Expenditures of Federal Awards, for which the date is December 20, 2024)

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CITY OF GOLETA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2024
See accompanying notes to schedule of expenditures of federal awards. -6-

Federal Grantor / Assistance Program Amount
Pass-through Grantor / Listing Identification Federal Provided to Program Title Number Number Expenditures Subrecipient s U.S. Department of Housing & Urban Development
Direct Assistance:

CDBG-Entitlement Grants Cluster
Community Development Block Grant/Entitlement Grants 14.218 B-09-MC-06-0597 456,696 $ 41,407 $ Total Assistance Listing Number 14.218/ CDBG-Entitlement Grants Cluster 456,696 41,407 Total - U.S. Department of Housing and Urban Development 456,696 41,407 U.S. Department of Transportation
Pass-through from the State of California:

Highways & Bridge Projects 20.205 BPMPL-5481 (009) 3,593,032 - Federal-Aid Highway Program 20.205 HSIP Cycle 10 360,615 - Total Assistance Listing Number 20.205 3,953,647 -
Pedestrian and Bicycle Safety Program Grant 20.600 PS21045 28,954 - Total Assistance Listing Number 20.600 28,954 - Total - U.S. Department of Transportation 3,982,601 - U.S. Department of the Treasury
Direct assistance:

Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 4,057,630 - Total Assistance Listing Number 21.027 4,057,630 -
Total - U.S. Department of the Treasury 4,057,630 - U.S. Department of Homeland Security
Pass-through from the State of California Office of Emergency Service:

FEMA -Public Assistance Grant Program 97.036 FEMA-4683-DR-CA 48,384 - FEMA -Public Assistance Grant Program 97.036 FEMA 4482-DR-CA 77,739 - Total - Assistance Listing Number 97.036 126,123 - FEMA - Hazard Mitigation Grant Program 97.039 HMGP DR-4308-219-6R 2,032,748 - Total - Assistance Listing Number 97.039 2,032,748 - Total - U.S. Department of Homeland Security 2,158,871 - Total Expenditures of Federal Awards 10,655,798$ 41,407$

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CITY OF GOLETA

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2024

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(1)
Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of the City of Goleta (City) under programs of the federal government for the year ended June 30, 2024. The information on this Schedule is prepared in accordance with the requireme nts of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Co st Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows, where applicable, of the City.

(2) Basis of Accounting

The expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown of the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

(3) Subrecipients

The City passes certain federal awards rece ived from the U.S. Department of Housing and Urban Development. The City has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.

(4) De Minimis Indirect Cost Rate

The City did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

248

CITY OF GOLETA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2024

-8-

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

20.205
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
Highway Planning & Construction
249

CITY OF GOLETA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2024

-9-

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, 2024

-10-

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, 2024
City Council Meeting
March 18, 2025
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 2023/24  Single Audit is required for FY 2023/24, due to exceeding $750k threshold ($10.69 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
• Management’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, 2024:
Net position totaled $290.45 million
Increase of approximately $24.6 million or 9.3% from the prior fiscal year of $265.81 million. Overall total revenues from all sources equaled approximately $75.40 million Increase of approximately $24.2 million or 47.2% from the $51.21 million in revenues the previous fiscal year. The City’s overall total expenditures were $50.7 million for the fiscal year Decrease of approximately $1.07 million or 2.1% when compared to last fiscal year. General Fund Balance: Fund Balance:

Non-spendable:

Prepaid Items 92,635$
Committed 17,472,816
Assigned 20,366,170
Unassigned 6,862,572
Total Fund Balance 44,794,193$
258
Thank you!
7 259

Goleta City CouncilMarch 18, 2025

Goleta City Council
March 18, 2025