CITY OF HERCULES
1 Presentation to the City CouncilFor the Fiscal Year Ended June 30, 2025 January 27, 2026
Contents
Scope of Work
Required Communications (AU-C 260)
Overview of Financial Statements and Financial Indicators Key Pensions and Other Postemployment Benefits Information Financial Audit Results
Scope Of Work
Scope Of Work
Audit of the Annual Comprehensive Financial Report
Audit of the Hercules Wastewater Fund
Report on internal control over financial reporting and on compliance in accordance with Government Auditing Standards Agreed Upon Procedures:
GANN Limit
Measure B – Transactions and Use Tax Revenues
Measure N – Utility Users Tax Rate Revenues
Required Communications (AU-C 260)
Required Communications (AU-C 260)
Ethics and Independence
Complied with ALL relevant ethical requirements regarding independence Significant Accounting Policies
The District disclosed all significant accounting policies in Note 1 to the financial statements.
Significant Estimates
Investment fair value
Depreciation and amortization on capital assets
Net pension liability
Net other postemployment benefits (“OPEB”) liability
Compensated absences (GASB No. 101)
Required Communications (AU-C 260)
Sensitive Disclosures
Note 1 - Summary of Significant Accounting Policies
Note 8 – Retirement Plans
Note 10 – Other Postemployment Benefits
Note 12 – Commitments and Contingencies
Note 14 – Stewardship, Compliance, and Accountability
Note 17 – Restatement
Misstatements
There were no material uncorrected misstatement.
Required Communications (AU-C 260)
Consultation with Other Accountants
Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters.
Significant Difficulties
We encountered no significant difficulties in dealing with management.
Disagreement with Management
We did not have any disagreement with management in terms of accounting treatments nor audit procedures performed.
Overview Of The Financial Statements and Financial Indicators
City of HerculesGovernment-Wide Statement of Net PositionJune 30, 2025
City of HerculesGovernment-Wide Statement of ActivitiesFor the Year Ended June 30, 2025
City of HerculesGovernmental ActivitiesCost of Services to Tax Revenues For the Years Ended June 30, 2025 and 2024
City of HerculesGeneral Fund SummaryFund BalanceJune 30, 2025 and 2024
City of HerculesGeneral Fund SummaryRevenues, Expenditures and Changes in Fund Balance For the Years Ended June 30, 2025 and 2024
City of HerculesGeneral FundUnassigned Fund Balance to Annual Expenditures For the Years Ended June 30, 2025 and 2024
Key Pension and OPEB Information
Net Pension Liability – Misc. Plan
Net Pension Liability – Safety Plan
Net Pension Liability – PEHMCA Plan
Net Pension Liability – SOMAR Plan
Financial Audit Results
Audit Results
Financial Statements
Unmodified Opinion
Financial Statements are fairly presented in all material respects Significant accounting policies have been consistently applied Estimates are reasonable
Disclosures are properly reflected in the financial statements Agreed Upon Procedures – GANN, Measure B, and Measure N No exceptions were noted
Other Results
No disagreements with management
No material weaknesses in internal controls over financial reporting were reported No accounting issues
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