DATE:
June 04, 2024
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, Assistant City Manager
Anne M. Duke, Deputy Finance Director
SUBJECT:
Audit Services for Fiscal Year 2023-24
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 not to exceed amount of $138,880, to perform the audit of the City and its component units, for the fiscal year end of June 30, 2024, as well as additional required State reporting for the year end of June 30, 2024.
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 GASB statements that is scheduled to take effect for the June 30, 2024 financial statements is Statement 100, Accounting Changes and Error Corrections, which enhances accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, and comparable information.
The City is in compliance with Government Code 12410.6(b), which established an auditor rotation requirement for local agencies, and the lead auditor responsible for performing the City’s audit is Kassie Radermacher, CPA, CFE. An agreement with CLA is recommended for the City’s fiscal year end June 30, 2024 audit and required State reporting.
CITY GOAL SUPPORTED BY THIS ITEM
Financial Health: Maintain a balanced budget and adequate reserves
FISCAL IMPACT
The proposed cost of performing the Fiscal Year (FY) 2023-24 audit and required State reporting is $138,880 as detailed below:
$84,400
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) 15,290
Report Preparation
18,700
State Controller’s Office Reporting
20,490
Single Audit 1st through 5th major programs
$138,880
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 2024-25 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 2023-24
June 04, 2024