DATE:
April 4, 2023
TO:
Mayor and Council Members
Chair and Commission, Community Development Commission
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Water District
Chair and Board Members, Hesperia Fire Protection District FROM:
Nils Bentsen, City Manager
BY:
Casey Brooksher, Director of Administrative Services
Anne M. Duke, Deputy Finance Director
SUBJECT:
Audited Financial Statements for Fiscal Year Ended June 30, 2022
RECOMMENDED ACTION
It is recommended that the City Council, Community Development Commission, Hesperia Housing Authority Board, Hesperia Water District Board, and Hesperia Fire Protection District Board receive and file the audited Financial Statements for the Fiscal Year Ended June 30, 2022.
BACKGROUND
City governments that receive Federal funding in excess of $750,000 in a fiscal year are required by Federal law (Office of Management and Budget [OMB] Circular A-133) to be audited. In addition, the bond documents for the City’s debt require annual audits of the City’s financial transactions.
ISSUES/ANALYSIS
The City’s independent auditor, CliftonLarsonAllen LLP (CLA) performed the audit for Fiscal Year 2021-22.
The documents that comprise the Financial Statements, commonly referred to as the Audit for the City, are as follows:
City of Hesperia–Annual Comprehensive Financial Report – June 30, 2022 Single Audit of Federally Assisted Grant Programs – June 30, 2022 Community Development Commission–Component Unit Financial Statements – June 30, 2022 Hesperia Housing Authority–Component Unit Financial Statements – June 30, 2022 Hesperia Water District–Component Unit Financial Statements – June 30, 2022 Hesperia Fire Protection District–Component Unit Financial Statements – June 30, 2022 The Hesperia Housing Authority Component Unit Financial Statement was distributed on December 20, 2022 in compliance with State requirements. The Annual Comprehensive Financial Report (ACFR), along with the Component Unit Financial Statements for the Hesperia Water District, the Community Development Commission, and the Hesperia Fire Protection District were distributed on December 21, 2022. Finally, the Single Audit of Federally Assisted Grant Programs was distributed on March 27, 2023. Public copies of all the above-referenced documents are available in the City Clerk’s Office and have been posted on the City’s website.
An audit finding was noted related to a parcel of land that was purchased in 1990. Through a physical site review performed by City staff of all properties held by the City, along with a reconciliation of City owned properties to the County’s parcel land records, City staff discovered that one parcel which was purchased in 1990 had been recorded as an expenditure and should have been recorded as land held for resale. As a result, staff put procedures in place for reviewing land expenditure accounts on an annual basis, evaluating each transaction for the proper reviews and County parcel reconciliations will be conducted at a minimum of every five years as verification that all have been captured properly.
As a matter of information, the City was awarded the Certificate of Achievement for Outstanding Financial Reporting for Fiscal Year 2020-21 by the Government Finance Officers’ Association (GFOA). That was the twentieth consecutive year the City has earned this prestigious award.
FISCAL IMPACT
None.
ALTERNATIVES
Provide alternative direction to staff.
ATTACHMENTS
The reports listed below were previously submitted to the Council (#1, #2, #4, and #5 on December 21, 2022, #3 on December 20, 2022, and #6 on March 27, 2023). Public copies are available in the City Clerk’s Office and have been posted on the City’s website:
June 30, 2022 Annual Comprehensive Financial Report
June 30, 2022 Component Unit Financial Statements for the Community Development Commission June 30, 2022 Component Unit Financial Statements for the Hesperia Housing Authority June 30, 2022 Component Unit Financial Statements for the Hesperia Water District June 30, 2022 Component Unit Financial Statements for the Hesperia Fire Protection District June 30, 2022 Single Audit of Federally Assisted Grant Programs City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and City Council
Audited Financial Statements for Fiscal Year Ended June 30, 2022 April 4, 2023