Marysville City Council
April 5, 2022

City of Marysville
Richardson & Company, LLP
Ingrid Sheipline
Auditor Presentation of 2021 Audit
Reports Issued
o Opinion on Audited Financial Statements
o Internal Control/Compliance Reports
o Required Communications Letter
o Management Letter
o Appropriation Limit Compliance
Audit Results and Observations
o Audit opinion unmodified (clean)
o Delays in completing audit due to
staffing
o Reduction in number of adjustments
during audit process
o Areas identified for improvement are in
process
Financial Statements Highlights
Governmental Activities (page 16)
(all funds, excluding Wastewater)
o Unrestricted net position -- $18.6 million
deficit
o Due to pension liability and pension
bonds of $15.8 million
o Pension liability decreased $14.3 million
reflecting pay-down from bonds
Financial Statements Highlights
(Continued)
General Fund balance (page 18)
o $900,000 is restricted for debt service
o $6.8 million unrestricted reserves
Financial Statements Highlights
(Continued)
General Fund Revenue/Expenditures
(page 20)
o Revenues exceeded expenses by $3.1
million
o Reflects $800,000 proceeds from sale
of golf course
o Sales taxes higher than expected by
$1.5 million
Financial Statements Highlights
(Continued)
Wastewater Fund (pages 22 and 23)
o Negative reserves of $361,000
o After pension liability and bonds of
$850,000
o Outstanding debt totals $14.9 million
o Net income of $9.8 million, including
$9.4 million write-off of Linda Water loan
Required Communications
o 60 adjustments during the audit process
o Improvement from 74 adjustments during 2019/20
audit
o Unfunded pension liability
• Decreased $14 million to $1 million
• Reflects additional contributions from pension
bonds of $14.7 million not reflected in actuarial
valuation until FY 20/21
• No significant changes to actuarial assumptions
Report on Internal Control
Controls over financial reporting and year-end
closing
o Unusually large number of audit adjustments
• Turnover in personnel
• Shortage of qualified support staff
o Develop more comprehensive year-end closing
procedures
o Timely account reconciliations to be completed
Report on Internal Control
(Continued)
Capital Asset Accounting
o Issues noted with values assigned to
capital assets
Recommendations noted in FY 20/21
o Incorrect population amount used in
appropriations limit
Most recommendations from past audits were
addressed
Prior year comments to be resolved
o Unreconciled differences in pooled cash
o Recording and reconciling capital asset additions
Management Letter