LSLCPAS.COM
January 23, 2026
To the Board of Directors
San Joaquin Council of Governments
Stockton, California
To the City Council
City of Manteca
Manteca, California
We have audited the 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, California, (the “City”) for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 1, 2024. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year 2023-2024 relating to the Funds.
We noted no transactions entered into by the Funds during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the Funds financial statements for Transit was:
Management’s estimate of the net pension liability based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
The completion of our audit was delayed as a result of turnover within the City and completion of financial statement audits performed by an external auditor for the City’s 2024 fiscal year.
To the Board of Directors To the City Council
San Joaquin Council of Governments City of Manteca
Stockton, California Manteca, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. The material misstatements detected as a result of audit procedures, corrected by management, are described in detail in our separately issued 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 dated January 23, 2026.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 23, 2026.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements relating to the Funds, or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors of the Funds. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the budgetary comparison schedules for the Transportation Development Act Fund and Measure K Fund, allocated for non-transit purposes, which are required supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
To the Board of Directors To the City Council
San Joaquin Council of Governments City of Manteca
Stockton, California Manteca, California
Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:
Fiscal Year 2024-2025
GASB Statement No. 101, Compensated Absences.
GASB Statement No. 102, Certain Risk Disclosures.
Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.
GASB Statement No. 104, Disclosure of Certain Capital Assets.
Future Projects
Comprehensive Project, Revenue and Expense Recognition.
Major Project, Going Concern Uncertainties and Severe Financial Stress.
Major Project, Infrastructure Assets.
Practice Issue, Classification of Nonfinancial Assets.
Practice Issue, Risks and Uncertainties Disclosures.
Practice Issue, Subsequent Events.
Restriction on Use
This information is intended solely for the information and use of the Board of Directors of the San Joaquin Council of Governments and the City Council and management of the City of Manteca and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Sacramento, California