DATE:
June 20, 2023
TO:
Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency Chair and Commission, Hesperia Housing Authority
Chair and Commission, Community Development Commission
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Director of Administrative Services
Anne M. Duke, Deputy Finance Director
SUBJECT:
Audit Services for Fiscal Year 2022-23
RECOMMENDED ACTION
It is recommended that the City of Hesperia, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, Hesperia Fire Protection District, and Hesperia Water District Council/Boards/Commissions enter into a Professional Services Agreement with the independent certified public accounting firm CliftonLarsonAllen (CLA) LLP, in the amount of $135,800 for performing the audit of the City and its component units, for the fiscal year ended June 30, 2023, as well as additional required State reporting for the year ended June 30, 2023.
BACKGROUND
CLA is the City’s current auditor and the firm has extensive experience in governmental auditing and a deep familiarity of the City’s accounting structure. The firm has a depth of knowledge that is supported by the nearly 2,900 Certified Public Accountants (CPA’s) employed by CLA, in 130 locations across the country, and has provided accounting and auditing services for over 60 years.
ISSUES/ANALYSIS
The firm of CliftonLarsonAllen (CLA) has expertise in the field of governmental accounting, and ensures the City’s financial statements are compliant with the lastest Government Accounting Standards Board (GASB) statements. One of the prominent GASB statements that is scheduled to take effect for the June 30, 2023 financial statements is Statement 96 Subscription – based Information Technology Arrangements, which establishes the criteria for reporting certain information technology software contracts that were not previously required.
Consistent with Government Code 12410.6(b), which established an auditor rotation requirement for local agencies, the lead auditor responsible for performing the City’s audit has transitioned to Kassie Radermacher, CPA, CFE. An agreement with CLA is recommended for the City’s fiscal year end June 30, 2023 audit and required State reporting.
FISCAL IMPACT
The proposed cost of performing the Fiscal Year (FY) 2022-23 audit and required State reporting is $135,800 as detailed below:
$ 81,940
Audit (includes the City of Hesperia and its component units, the Hesperia Fire Protection District, the Hesperia Water District, the Community Development Commission, and the Hesperia Housing Authority; also includes the Successor Agency to the Former Hesperia Community Redevelopment Agency) 14,840
Report Preparation
18,150
State Controller’s Office Reporting
20,870
Single Audit 1st through 5th major programs
$135,800
Total Audit/Reporting Costs
The cost of the audit and State reports will be allocated among the City and its component units based upon the size and complexity of each component unit. Adequate budget will be included within the FY 2023-24 Proposed Budget.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council, Chairman and Board Members Audit Services for FY 2022-23
June 20, 2023