CITY OF MANTECA
TRANSPORTATION DEVELOPMENT ACT AND
MEASURE K FUNDS
NON-TRANSIT PURPOSES AND
TRANSIT ENTERPRISE FUND
FOR THE YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’
REPORT, FUND FINANCIAL
STATEMENTS, REQUIRED
SUPPLEMENTARY INFORMATION,
AND COMPLIANCE REPORT
CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds
Non-Transit Purposes
and Transit Enterprise Fund
Independent Auditors’ Report, Fund Financial Statements, Required Supplementary Information,
and Compliance Report
For the Year Ended June 30, 2022
CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Independent Auditors’ Report, Fund Financial Statements, Required Supplementary Information,
and Compliance Report
For the Year Ended June 30, 2022
Table of Contents
Page
Number
INDEPENDENT AUDITORS’ REPORT....................................................................................................... 1 FUND FINANCIAL STATEMENTS:
Balance Sheet - Transportation Development Act and Measure K Funds - Non-Transit Purposes. ............................................................................................................................... 4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Transportation Development Act and Measure K Funds - Non-Transit Purposes. .......................................................... 5 Statement of Net Position - Transit Enterprise Fund ............................................................................... 6 Statement of Revenues, Expenses, and Changes in Net Position - Transit Enterprise Fund ............................................................................................................................. 7 Statement of Cash Flows - Transit Enterprise Fund. .............................................................................. 8 Notes to the Fund Financial Statements. ...................................................................................................... 9 REQUIRED SUPPLEMENTARY I NFORMATION:
Budgetary Comparison Schedule - Transportation Development Act Fund. ......................................... 17 Budgetary Comparison Schedule - Measure K Fund ............................................................................ 18 Notes to Required Supplementary Information. ......................................................................................... 19 OTHER REPORTS:
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Fund Financial Statements Performed in Accordance with Government Auditing Standards and the Transportation Development Act ......................................................................................... 21 Independent Auditors’ Report on State Compliance .......................................................................... 27
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act Fund and Measure K Fund, allocated for non-transit purposes, and the Transit Enterprise Fund (collectively “the Funds”) of the City of Manteca (the “City”), California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Funds basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Funds as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Funds and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 2, the financial statements present only the Funds and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control in relation to the Funds. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting 2 To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Summarized Comparative Information
We have previously audited the financial statements of the Funds for the year ended June 30, 2021, and expressed an unmodified audit opinion on those financial statements in our report dated March 18, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 2, 2025, on our consideration of the City’s internal control over financial reporting, as it relates to the Funds, and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance, as it relates to the Funds. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance as it relates to the Funds.
Sacramento, California
July 2, 2025
3 Transportation
Development Measure K
Act Fund Fund 2022 2021
ASSETS
Cash and cash equivalents $ 1,310,968 $ 9,518,507 $ 10,829,475 $ 11,100,031 Accounts receivable 5,126,702 514,918 5,641,620 6,691,720 Total assets $ 6,437,670 $ 10,033,425 $ 16,471,095 $ 17,791,751
LIABILITIES
Accounts payable $ 89,261 $ - $ 89,261 $ 861,688
Retainage payable - 23,032 23,032 -
Total liabilities 89,261 23,032 112,293 861,688
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 5,126,702 - 5,126,702 5,862,508
Total deferred inflows of resources 5,126,702 - 5,126,702 5,862,508
FUND BALANCES
Restricted for street and road projects - 10,010,393 10,010,393 6,976,740 Restricted for pedestrian and bicycle facilities 1,221,707 - 1,221,707 4,090,815 Total fund balances 1,221,707 10,010,393 11,232,100 11,067,555 $ 6,437,670 $ 10,033,425 $ 16,471,095 $ 17,791,751
Total liabilities, deferred inflows of
resources and fund balances
Totals
CITY OF MANTECA, CALIFORNIA
Transportation Development Act and Measure K Funds
Non-Transit Purposes
Balance Sheet
June 30, 2022, with Comparative Totals
The accompanying notes are an integral part of these financial statements. 4 Transportation
Development Measure K
Act Fund Fund 2022 2021
REVENUES
Local Transportation Fund:
Streets and roads $ 659,536 $ - $ 659,536 $ -
Pedestrian and bicycle 76,270 - 76,270 -
Measure K Fund:
Local street repair - 1,852,058 1,852,058 1,776,660
Congestion relief - 1,826,646 1,826,646 4,113,354
Roadway safety - 301,498 301,498 354,000
Investment earnings (loss) (53,080) (138,533) (191,613) 41,928 Other revenues - - - -
Total revenues 682,726 3,841,669 4,524,395 6,285,942
EXPENDITURES
Capital projects - local street repair 3,551,834 775,391 4,327,225 7,428,526 Total expenditures 3,551,834 775,391 4,327,225 7,428,526 Net Change in Fund Balances (2,869,108) 3,066,278 197,170 (1,142,584) Beginning of Year, As Restated 4,090,815 6,944,115 11,034,930 12,210,139 Fund balances-ending $ 1,221,707 $ 10,010,393 $ 11,232,100 $ 11,067,555 Totals
CITY OF MANTECA, CALIFORNIA
Transportation Development Act and Measure K Funds
Non-Transit Purposes
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2022, with Comparative Totals The accompanying notes are an integral part of these financial statements. 5 2022 2021
ASSETS
Current Assets:
Cash and cash equivalents $ 105,409 $ -
Accounts receivable 3,577,791 3,176,574
Due from other funds 133,700 133,700
Total Current Assets 3,816,900 3,310,274
Noncurrent Assets:
Capital assets, not being depreciated 565,983 350,252
Capital assets, net of accumulated depreciation 7,431,785 7,498,466 Total Noncurrent Assets 7,997,768 7,848,718
Total assets $ 11,814,668 $ 11,158,992
LIABILITIES AND NET POSITION
Current Liabilities:
Accounts payable $ 116,342 $ 286,332
Refundable deposits 2,250 3,300
Unearned revenued - TDA advances 133,700 133,700
Due to other funds 1,097,456 286,579
Total Liabilities 1,349,748 709,911
Net Position:
Invested in capital assets 7,997,768 7,848,718
Restricted 2,467,152 2,600,363
Total Net Position 10,464,920 10,449,081
Total Liabilities and Net Position $ 11,814,668 $ 11,158,992 Transit Enterprise Fund
Statement of Net Position
June 30, 2022, with Comparative Totals
CITY OF MANTECA, CALIFORNIA
The accompanying notes are an integral part of these financial statements. 6 2022 2021
OPERATING REVENUES
Fares $ 26,256 $ 16,632
Coupon sales 9,457 5,987
Other 13,112 6,717
Total operating revenues 48,825 29,336
OPERATING EXPENSES
Operations and administration 2,621,372 2,378,473
Vehicle maintenance 10,210 -
Depreciation expense 657,327 657,328
Total operating expenses 3,288,909 3,035,801
Operating income (loss) (3,240,084) (3,006,465)
NONOPERATING REVENUES (EXPENSES)
Local transportation funds -Transit operating 1,392,737 1,283,585 Federal transit assistance funds 1,664,024 989,000
Proposition 1B (PTMISEA) 26,863 114,101
State of Good Repair (SGR) 97,182 106,069
Low Carbon Transit Operations Program (LCTOP) 50,728 18,915 Interest 24,389 8,383
Total nonoperating revenues (expenses) 3,255,923 2,520,053 Change in net position 15,839 (486,412)
Net position-beginning 10,449,081 10,935,493
Net position-ending $ 10,464,920 $ 10,449,081
CITY OF MANTECA, CALIFORNIA
Transit Enterprise Fund
Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2022, with Comparative Totals The accompanying notes are an integral part of these financial statements. 7 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,888,707 $ 1,904,474
Cash payments to suppliers for goods and services (2,802,622) (2,299,337) Net cash provided by (used for) operating activities 86,085 (394,863)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Federal transit assistance funds (1,577,075) (2,252,099) Local transportation funds - transit operating 1,392,737 1,283,585 Proposition 1B - PTMISEA 26,863 114,101
State of Good Repair (SGR) 97,182 106,069
Low Carbon Transit Operations Program (LCTOP) 50,728 18,915 Payments from other funds 810,877 286,579
Net cash provided by (used for) noncapital financing activities 801,312 (442,850)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (806,377) (325,008)
Net cash provided by (used for) capital and related financing activities (806,377) (325,008)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 24,389 8,383
Net cash provided by (used for) investing activities 24,389 8,383 Net increase (decrease) in cash and cash equivalents 105,409 (1,154,338) Cash and cash equivalents-beginning - 1,154,338
Cash and cash equivalents-ending $ 105,409 $ -
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) $ (3,240,084) $ (3,006,465)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation 657,327 657,328
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 2,839,882 1,875,138 Increase (decrease) in refundable deposits (1,050) 90
Increase (decrease) in accounts payable (169,990) 79,046 Total Adjustments 3,326,169 2,611,602
Net cash provided by (used for) operating activities $ 86,085 $ (394,863)
CITY OF MANTECA, CALIFORNIA
Transit Enterprise Fund
Statement of Cash Flows
For the Year Ended June 30, 2022, with Comparative Totals The accompanying notes are an integral part of these financial statements. 8 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 1: ORGANIZATION
The City of Manteca (the City) receives funds under the provisions of the Transportation Development Act (TDA) from the San Joaquin County Local Transportation Fund (LTF) under Article 8, Section 99400(c). The City's Article 8 LTF funds are for the support of public transportation systems as defined in the TDA. The City's State Transit Assistance Bus Fund is used to account for TDA funds received by the City for public transportation, which is reflected in these financial statements of the City's Transit Enterprise Fund.
The City receives funds under the provisions of the TDA from the San Joaquin County LTF under Article 8, Section 99400(a) for local streets and roads projects, and Article 3, Section 99234 for pedestrian and bicycle facilities. The funds provided under Article 8 represent amounts available after the determination by the San Joaquin Council of Governments (SJCOG), the transportation planning agency administering TDA funds, of amounts needed for local streets and roads of the City. The funds provided under Article 3, Section 99234 represent amounts set aside to be allocated for pedestrian and bicycle facilities within the jurisdictions of San Joaquin County and represent up to 2% of the available funds countywide. The City's TDA Fund is used to account for these funds received by the City for non-transit purposes, which is reflected in these financial statements of the TDA Fund allocated for non-transit purposes.
The City also receives funds from an ordinance (Measure K) passed by San Joaquin County voters resulting in a sales tax increase of one-half of one percent for transportation improvements. SJCOG, acting as the Local Transportation Authority, oversees the collection and distribution of the sales tax in accordance with the twenty-year transportation expenditure plan. The plan calls for street repairs, safety and operational improvements on streets and roads, projects to reduce street and highway congestion, and the promotion of passenger rail and bus services as an alternative to travel by automobile. The City's Measure K Fund is used to account for these funds, which is reflected in the financial statements of the Measure K Fund.
The City provides transit service for senior and handicapped citizens of the City through both fixed-route and Dial-A-Ride transit services, which is reflected in the Transit Enterprise Fund.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The financial statements of the TDA Fund, Measure K Fund, and Transit Enterprise Fund of the City have been prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
B. Reporting Entity
The financial statements present only the TDA Fund, Measure K Fund, and Transit Enterprise Fund of the City and are not intended to present fairly the financial position of the City and the changes in its financial position or its cash flows in accordance with accounting principles generally accepted in the United States of America.
C. Fund Accounting
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. 9 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The TDA Fund and Measure K Fund are governmental funds specifically categorized as special revenue funds. Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
The Transit Enterprise Fund is a proprietary fund specifically categorized as an enterprise fund. Enterprise funds are used to account for activities similar to those found in the private sector. The City uses an enterprise fund to account for its transit operations.
D. Measurement Focus and Basis of Accounting
The TDA Fund and Measure K Fund are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available and expenditures are recognized when the fund liabilities are incurred. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City uses an availability period of 60 days. Revenues that are susceptible to accrual include LTF allocations and interest income.
The Transit Enterprise Fund is presented in the City's Comprehensive Annual Financial Report (CAFR) as the Federal Transit Management Fund, a special revenue fund which is reported under the modified accrual basis of accounting, whereby revenues are recognized when they become measurable and available and expenditures are recognized when the fund liabilities are incurred. In accordance with Section 6667(b) of the TDA Statutes and California Codes of Regulations, Transit Funds should be classified as enterprise funds using the flow of economic resources management focus and the accrual basis of accounting, whereby revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
The Transit Enterprise Fund reports grant advances on its statement of net position. Grant advances for this fund arise when potential revenue, designated for a specific purpose, has been received prior to the eligibility requirements being met. In subsequent periods, when the eligibility requirements have been met, the liability for grant advances is removed from the statement of net position and revenue is recognized.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the Transit Enterprise Fund are passenger fares. Operating expenses include the cost of vehicle maintenance, administrative expenses, and depreciation on capital assets and equipment.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed.
E. Cash and Cash Equivalents
All City monies are invested in a cash and investments pool, whereby funds can spend cash at any time without prior notice or penalty. Therefore, for purposes of the statement of cash flows, all enterprise fund cash on hand and in the pool is considered cash and cash equivalents. 10 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Interfund Transactions
During the course of operations, numerous transactions occur between individual funds for funding purposes.
These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet.
G. Capital Assets
All purchased capital assets are valued at cost where historical cost records are available and at an estimated historical cost where no historical records exist.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.
Depreciation of all capital assets in the Transit Enterprise Fund is computed using the straight-line method over their estimated useful lives. Estimated useful lives of vehicles are 5 years.
H. Net Position/Fund Balance
The financial statements of the enterprise fund utilize a net position presentation. Net position is categorized as follows:
• Invested in Capital Assets - This category groups all capital assets into one component of net position.
Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category. • Restricted Net Position - This category presents amounts with external restrictions imposed by creditors, granters, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
• Unrestricted Net Position - This category represents net position of the City not restricted for any project or other purpose.
The City follows the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Accordingly, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent. As of June 30, 2022 the City reported the following:
• Restricted fund balance - amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitution provisions or enabling legislation.
The City does not have a minimum fund balance policy.
I. Grants
Grant revenues and receivables are recorded when eligibility requirements which have been imposed by the provider have been met. Grant sources include the Federal Transit Administration (FTA), State Transit Assistance (STA), and Local Transportation Fund (LTF). The LTF and STA were created by the State Legislature under the TDA.
11 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Risk Management
The City participates in various risk management programs, some of which relate to the TDA Fund and the Transit Enterprise Fund and are reported in the financial statements of the City. The risk management allocation is based on a percentage of each invoice from the Municipal Pooling Authority, based on a weighted allocation.
K. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from these estimates.
L. Comparative Data
Comparative totals for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in financial position and operations of the City TDA Fund and Measure K Fund, allocated for non-transit purposes, and Transit Enterprise Fund. Also, certain accounts presented in the prior year's data have been reclassified to be consistent with the current year's presentation.
M. Contingencies
The City receives funding for specific purposes that is subject to review and audit by the granting agencies funding source. Such audits could result in a request for reimbursement for expenditures disallowed under terms and conditions of the contracts. Management is of the opinion that no material liabilities will result from such potential audits.
The City is a party to claims and lawsuits arising in the ordinary course of business. The City's management and legal counsel are of the opinion that the ultimate liability, if any, arising from these claims will not have a material adverse impact on the financial position of the funds.
N. Reclassification
Certain reclassifications have been made to prior year balances to conform with current year presentation.
NOTE 3: CASH AND CASH EQUIVALENTS
Cash and cash equivalents balances for the City's TDA Fund, Measure K Fund, and Transit Enterprise Fund are held in the City's cash and investment pool. The City maintains a cash and investment pool in order to facilitate the management of cash. Interest is allocated to its various funds based upon average cash balances. Investments held in the City's cash management pool are available on demand to the City TDA Fund, Measure K Fund, and Transit Enterprise Fund and are stated at fair value. Information regarding categorization of investments can be found in the City's financial statements. 12 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 4: CAPITAL ASSETS
Capital assets and accumulated depreciation at June 30, 2022, are as follows:
Balances
June 30, 2021 Acquisitions Dispositions
Balances
June 30, 2022
$ 350,252 $ 215,731 $ 565,983 - $
350,252 215,731 - 565,983
2,054,274 551,758 2,606,032 -
9,191,139 38,888 9,230,027 -
11,245,413 590,646 11,836,059 -
(3,746,947) (657,327) (4,404,274) -
7,498,466 (66,681) 7,431,785 -
$ 7,848,718 $ 149,050 $ 7,997,768 - $
Capital assets, not being depreciated
Depreciation expense was $657,327 for the fiscal year ended June 30, 2022.
Building and improvements
Transit vehicles
Total capital assets, not being depreciated
Construction in progress
Capital assets being depreciated
Total capital assets
Capital assets, net of accumulated depreciation
Less: accumulated depreciation
Total capital assets, being depreciated
NOTE 5: GRANT ADVANCES
Transit Enterprise Fund 2022
TDA advances, beginning of year 133,700 $
TDA advances, end of year 133,700 $
NOTE 6: PUBLIC TRANSPORTATION MODERNIZATION, IMPROVEMENT, AND SERVICE
ENHANCEMENT ACCOUNT (PTMISEA)
PTMISEA
In November 2006, California voters passed a bond measure enacting the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Of the $19.925 billion of State general obligations bonds authorized, $4 billion was set aside by the State as instructed by the statute as the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA). These funds are available to the California Department of Transportation for intercity rail projects and to transit operators in California for rehabilitation, safety, or modernization improvements; capital service enhancements or expansions; new capital projects; bus rapid transit improvements; or for rolling stock procurement, rehabilitation, or replacement.
13 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 6: PUBLIC TRANSPORTATION MODERNIZATION, IMPROVEMENT, AND SERVICE
ENHANCEMENT ACCOUNT (PTMISEA) (CONTINUED)
Balance remaining at June 30, 2022 is composed of the following:
Amount
Balance available for draw - beginning of the year $ 252,397 Revenue:
Interest earned on PTMISEA deposits through June 30, 2022 1,021 Expenses:
Expenses (26,863)
Balance available for draw - end of the year $ 226,555
NOTE 7: STATE OF GOOD REPAIR (SGR)
The State of Good Repair & Accountability Act of 2017 was established to provide funds annually for aging infrastructure, investments in congested commute and freight corridors and to improve transit service. Caltrans is legislated to manage and administer the State of Good Repair (SGR) program. The State Controller’s Office publishes annually estimated funding according to population and farebox revenues. The State Controller’s Office issues quarterly payment to the San Joaquin Council of Governments who in turn pays the Regional Transit Authority for allocation to the jurisdictions. The 99313 portion of the allocations is allocated based on a Board approved allocation formula for the fiscal year. The 99314 portion is allocated based on the SCO formula. The funds are held with the County Treasurer, and jurisdictions are allowed to draw down from available funds on a reimbursement basis. Caltrans requests that the jurisdictions fully expend the SGR funds within a seven-year period.
Amounts held by the City and available for draw as of June 30, 2022, are composed of the following:
TDA Fund
Balance available for draw - beginning of the year 219,943$ Revenue:
SGR funds received 116,457
Expenses:
Expenses (97,182)
Balance available for draw - end of the year 239,218$
NOTE 8: LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP)
Annual audits of public transportation operators required under the Transportation Development Act (TDA), per PUC 99245, must include verification of receipt and appropriate expenditure of funds. Lead Agencies receiving LCTOP funds in a fiscal year for which a TDA audit is conducted must submit a copy of the audit to Caltrans by December 31st, six months after the close of the fiscal year (closes June 30) Caltrans will make the audits available to the Legislature and the State Controller’s Office (SCO) as needed. Lead agencies may request a 90-day extension from the December 31st deadline to March 31st. They must notify Caltrans in writing via e-mail. Project leads who fail to submit an expanded TDA audit documenting all LCTOP funding allocated to date will not receive future LCTOP allocations until the required document(s) have been submitted to Caltrans. 14 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Financial Statements
For the Year Ended June 30, 2022
NOTE 8: LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) (CONTINUED) Balance remaining at June 30, 2022 is composed of the following:
Amount
Balance available for draw - beginning of the year $ 34,715 Revenue:
LCTOP funds received 50,728
Expenses:
Expenses (6,407)
Balance available for draw - end of the year $ 79,036
NOTE 9: PRIOR PERIOD ADJUSTMENT
During the 2022 audit there was a correction made to the June 30, 2021 Measure K fund balance. The prior period adjustment to June 30, 2021 was made to correct an expenditure recognized in the wrong fiscal year. (A)
June 30, 2021 Correct
As Previously Expenditure June 30, 2021
Reported Recognized As Restated
Measure K Fund Balance 6,976,740 $ (32,625) $ 6,944,115 $ A. Correct Expenditure Recognized
Upon reviewing the Measure K expenditure balances, it was determined that an invoice amounting to $32,625 was reported in fiscal year 2022 but pertained to expenditures from fiscal year 2021. Consequently, a correction was made to accurately recognize the expenditure in the appropriate period.
NOTE 10: SUBSEQUENT EVENTS
Subsequent events have been evaluated through July 2, 2025, the date these financial statements were available to be issued. The City did not identify any subsequent events that require disclosure. 15 REQUIRED SUPPLEMENTARY INFORMATION
16 Variance with
Original Final Actual Final Budget
Revenues:
Local Transportation Fund:
Streets and roads $ 2,775,000 $ 2,775,000 $ 659,536 $ (2,115,464) Pedestrian and bicycle - - 76,270 76,270
Investment earnings 49,780 49,780 (53,080) (102,860)
Total Revenues 2,824,780 2,824,780 682,726 (2,142,054)
Expenditures:
Capital projects - local street repair 1,737,381 3,990,075 3,551,834 438,241 Total Expenditures 1,737,381 3,990,075 3,551,834 438,241 Net Change in Fund Balances $ 1,087,399 $ (1,165,295) (2,869,108) $ (2,580,295) Fund Balances, Beginning of Year 4,090,815
Fund Balances, End of Year $ 1,221,707
Budgeted Amounts
CITY OF MANTECA, CALIFORNIA
Transporation Development Act Fund
Budgetary Comparison Schedule
For the Year Ended June 30, 2022
See Notes to the Required Supplementary Information.
17 Variance with
Original Final Actual Final Budget
Revenues:
Local street repair $ 1,466,650 $ 1,466,650 $ 1,852,058 $ 385,408 Congestion relief - - 1,826,646 1,826,646
Roadway safety - - 301,498 301,498
Bike and pedestrians - 1,500,000 - (1,500,000)
Investment earnings 33,900 33,900 (138,533) (172,433)
Total Revenues 1,500,550 3,000,550 3,841,669 841,119
Expenditures:
Capital projects - local street repair 5,063,356 9,001,324 775,391 8,225,933 Total Expenditures 5,063,356 9,001,324 775,391 8,225,933 Net Change in Fund Balances $ (3,562,806) $ (6,000,774) 3,066,278 $ (7,384,814) Fund Balances, Beginning of Year 6,944,115
Fund Balances, End of Year $ 10,010,393
CITY OF MANTECA, CALIFORNIA
Measure K Fund
Budgetary Comparison Schedule
For the Year Ended June 30, 2022
Budgeted Amounts
See Notes to the Required Supplementary Information.
18 CITY OF MANTECA, CALIFORNIA
Transportation Development Act
and Measure K Funds Non-Transit Purposes
and Transit Enterprise Fund
Notes to the Required Supplementary Information
For the Year Ended June 30, 2022
NOTE 1: BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the Transportation Development Act (TDA) Fund and the Measure K Fund. All appropriations lapse at year-end. The appropriate budget is prepared by department, function, and fund. The City Manager may make transfers of appropriations between departments within a fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. The legal level of budgetary control is the object level within a fund.
19 OTHER REPORTS
20 LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Development Act (“TDA”) Fund and Measure K Fund, allocated for non-transit purposes, and the Transit Enterprise Fund (collectively “the Funds”) of the City of Manteca, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated June 25, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control), as it relates to the Funds, as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control, as it relates to the Funds.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2022-001, 2022-002, and 2022-003 that we consider to be material weaknesses.
To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Funds’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings and responses as item 2022-003.
City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance, relating to the Funds, and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance relating to the Funds. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance, as it relates to the Funds. Accordingly, this communication is not suitable for any other purpose.
Sacramento, California
July 2, 2025
22 To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
SCHEDULE OF FINDINGS AND RESPONSES
Reference Number
2022-001 – Segregation of Duties
Evaluation of Finding
Material Weakness
Condition
Through performing an evaluation over internal controls related to manual journal entries, we noted that journal entries are prepared, reviewed, and approved by the same individual.
Criteria
Government auditing standards, as stipulated by the Generally Accepted Government Auditing Standards (GAGAS), require internal controls to be robust and designed to ensure segregation of duties. These standards aim to reduce the risk of fraud, errors, and inefficiencies by mandating adequate oversight and proper procedural checks.
Cause of Condition
High turnover within the City led to inadequate segregation of duties, reflecting ongoing challenges in internal control.
Effect or Potential Effect of Condition
The identified deficiencies may lead to an increased risk of fraud due to inadequate segregation of duties.
Recommendation
To effectively address the identified internal control deficiencies, we suggest ensuring segregation of duties by assigning distinct individuals responsible for the preparation, review, and approval of journal entries.
Repeat Finding
Yes, City of Manteca’s TDA fiscal year 2020-2021 report finding #2021-001.
Management Response
The City agrees with the finding. Staff turnover has made this difficult; however, critical positions that were vacant within the department have been filled, which has helped alleviate some of these issues. Staff will establish procedures for journal entry approval.
23 To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED)
Reference Number
2022-002 – Accounts Payable Accrual Omission
Evaluation of Finding
Material Weakness
Condition
During our audit procedures, we identified a material weakness in the internal controls over financial reporting.
Specifically, material expenses were improperly excluded from accounts payable, resulting in a material audit adjustment of $102,105 to properly record accounts payable as of June 30, 2022.
Criteria
Government auditing standards require entities to establish and maintain internal controls to ensure that financial statements are accurate and complete. According to these standards, all expenses incurred should be recognized in the period in which they are incurred and properly recorded at year-end.
Cause of Condition
The deficiency was primarily caused by the City’s high turnover, which led to inadequate procedures and oversight within the accounts payable. Specifically, there was insufficient review and reconciliation of invoices received near the year-end, resulting in the exclusion of material expenses from the accounts payable ledger.
Effect or Potential Effect of Condition
The improper exclusion of material expenses from accounts payable has several adverse effects:
• Financial statements do not accurately reflect the entity’s financial position, resulting in misleading information to stakeholders.
• Increased risk of non-compliance with regulatory requirements and financial reporting standards. • Potential financial discrepancies that could affect the entity’s creditworthiness and relationships with vendors.
Recommendation
To address this material weakness, we recommend the following actions:
• Implement a robust review process to ensure all invoices received near the year-end are properly recorded in the accounts payable.
• Establish clear procedures for the timely reconciliation of accounts payable to ensure completeness and accuracy.
• Provide training to staff involved in the accounts payable process on the importance of accurate and timely recording of expenses.
• We believe that these measures will help in mitigating the risk of material misstatements and enhancing the reliability of financial reporting.
Repeat Finding
Yes, City of Manteca’s TDA fiscal year 2020-2021 report finding #2021-002. 24 To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED)
Management Response
The City agrees with the finding. The City is working to establish a new approval process and documenting the approval process. This will be implemented during FY 25.
Reference Number
2022-003 – Submission of City’s TDA Financial Statements Evaluation of Finding
Material Weakness and Material Noncompliance
Condition
The City did not submit its financial statements under the Transportation Development Act (TDA) by the required deadline of December 31st following the current fiscal year end, or no later than March 31st following the fiscal year end with an extension. The financial statements were submitted significantly past these deadlines.
Criteria
According to the Transportation Development Act, financial statements must be submitted:
• By December 31st following the end of the current fiscal year • Or no later than March 31st following the end of the current fiscal year with an extension These criteria ensure timely reporting and compliance with regulatory standards.
Cause of Condition
The late submission of the City's financial statements was due to high employee turnover and the absence of documented policies regarding financial reporting requirements. As new staff joined the City, the lack of clear guidelines and procedures led to delays in finalizing the financial statements.
Effect or Potential Effect of Condition
The late submission of financial statements can have several negative impacts, including:
• Misleading information being provided to stakeholders • Increased risk of non-compliance with regulatory requirements and financial reporting standards • Potential financial discrepancies affecting the City's relationships with vendors and granting agencies • Loss of public trust and confidence in the City's financial management 25 To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
Recommendation
To address this material weakness and noncompliance, we recommend the following actions:
• Develop and implement comprehensive documented policies and procedures for financial reporting to provide clear guidelines for staff
• Ensure that all City positions involved in financial reporting are adequately staffed with qualified personnel • Provide regular training for staff to familiarize them with the newly established policies and procedures • Establish a robust review process to track adherence to documented policies and ensure timely and accurate submission of financial statements
• Regular monitoring and follow-up on the progress of financial statement preparation to ensure timely completion
We believe that these measures will help mitigate the risk of late submissions and enhance the reliability of the City's financial reporting under the Transportation Development Act.
Repeat Finding
Yes, See City of Manteca’s TDA fiscal year 2020-2021 report finding #2021-003.
Management Response
Staff continues to evaluate processes and procedures to ensure a more timely and accurate close. Staff turnover has made this difficult; however, critical positions that were vacant within the department have been filled, which has helped alleviate some of these issues. Current staff ultimately understands the critical need for an annual yearend close schedule to ensure that closing entries are done in a timely manner. Staff has compiled a comprehensive and detailed year-end close schedule that assigns roles/responsibilities and timeframes for closing entries, annual filings, information gathering, etc. In addition, the audits have been scheduled and staff is working diligently to ensure these audits are completed on time.
26 LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON STATE COMPLIANCE
To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the Members of the City Council
City of Manteca
Manteca, California
Report on Compliance with Transportation Development Act and Measure K Requirements Opinion on Transportation Development Act and Measure K Compliance We have audited the City of Manteca, California (the “City”)’s compliance with Transportation Development Act (“TDA”) and Measure K requirements that funds allocated to and received by the City were expended in conformance with applicable statutes, rules, and regulations of the TDA and Measure K; and the allocation instructions and resolutions of the San Joaquin Council of Governments as required by Section 6666 and 6667 of Title 21, Division 3, Chapter 2, Article 5.5 of the California Code of Regulations (Code of Regulations) during the year ending June 30, 2022.
In our opinion, the City, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the Transportation Development Act Fund (TDA) and Measure K Fund, allocated for non-transit purposes, and the Transit Enterprise Fund (collectively the “Funds”) of the City for the year ended June 30, 2022.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the applicable statutes, rules, and regulations of the TDA and Measure K; and the allocation instructions and resolutions of the San Joaquin Council of Governments as required by the Code of Regulations. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of TDA and Measure K requirements applicable to the City’s Funds.
To the Board of Directors To the City Council
San Joaquin Council of Governments City of Manteca
Stockton, California Manteca, California
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS; Government Auditing Standards; the applicable statutes, rules, and regulations of the TDA and Measure K; and the allocation instructions and resolutions of the San Joaquin Council of Governments as required by the Code of Regulations will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the TDA and Measure K requirements that funds allocated to and received by the City were expended in conformance with applicable statutes, rules, and regulations of the TDA and Measure K; and the allocation instructions and resolutions of the San Joaquin Council of Governments as required by the Code of Regulations.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, the applicable statutes, rules, and regulations of the TDA and Measure K; and the allocation instructions and resolutions of the San Joaquin Council of Governments as required by the Code of Regulations, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit, as it relates to the Funds, in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the applicable statutes, rules, and regulations of the TDA and Measure K; and the allocation instructions and resolutions of the San Joaquin Council of Governments as required by the Code of Regulations, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be reported in accordance with the Code of Regulations, and which is described in the accompanying schedule of findings and questioned costs as item 2022-003.
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance finding identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. 28 To the Board of Directors To the City Council
San Joaquin Council of Governments City of Manteca
Stockton, California Manteca, California
Purpose of this Report
The purpose of this report on compliance is solely to describe the scope of our testing of compliance and the results of that testing. Accordingly, this report is not suitable for any other purpose.
Sacramento, California
July 2, 2025
29