City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 6, 2024
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Fiscal Year 2022-2023 Audited Financial Statements & Management Report
RECOMMENDATION
It is recommended that the City Council and Agency Board accept the City and Successor Agency’s Audited Financial Statements and Management Report for Fiscal Year Ending June 30, 2023.
BACKGROUND
The State of California Government code (sections 25250 & 25253) require all general-purpose local government to issue an annual report on the financial position and activities of that government. The report must be presented in conformance with generally accepted accounting principles (GAAP) and must be audited by an independent firm of certified public accountants (CPA) in conformance with generally accepted auditing standards (GAGAS). The goal of the audit by an independent firm is to provide reasonable assurance that the accounting transactions, practices, and procedures result in fair presentation of the financial position of the organization. In addition, the audit provides the same type of assurance about management’s assertions about the adequacy of internal accounting controls to safeguard the assets of the entities.
REVIEW AND ANALYSIS
The independent auditor has rendered an unqualified audit opinion indicating that the City and Successor Agency are materially in compliance and has accounting records that properly reflect the financial position of those entities.
In addition to the audited financial statements, the auditors were required to perform what is called a Single Audit. This audit is required when the City has Federal Grant expenditures greater than $750,000.
AGENDA
ITEM
12 Explain Recommendation and How it Supports the Vision Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: The annual audit is important to make sure that the financial structure of the City is sound, and to identify any issues that might need correction. This is important because it is necessary to keep a close watch on the resources needed to carry out the Mission.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes _____No _____ NA
Explain: Please see explanation above for the Vision.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes ____ No ____NA
• Housing X Yes ____ No ____NA
• Recreation X Yes ____ No ____NA
• Environment X Yes ____ No ____NA
• Education X Yes ____ No ____NA
Explain: Please see explanation above.
ALTERNATIVES
There are no alternatives to the annual audit; they are required per State law.
BUDGET IMPACT
Please see attached audit.
CONCLUSION
It is recommended that the City Council and Agency Board accept the City and Successor Agency’s Audited Financial Statements and Management Report for Fiscal Year Ending June 30, 2023.
Attachments:
1. 2023 Gonzales Financial Statements
2. 2023 Gonzales Management Letter