Item #05
Date: December 16, 2025
To: Mayor and City Council
From: Anissa Leung, Finance Director
Jim Schaad, City Manager
Subject: Approval of the City of Marysville Audited Financial Statements and Supplemental Information for Fiscal Year ended June 30, 2024
Recommendation:
Pass a Motion to approve the City of Marysville Audited Financial Statements and Supplemental Information for Fiscal Year Ended June 30, 2024, completed by Richardson & Company LLP, Certified Public Accountants.
Rationale for Recommendation:
The City is required to prepare and audit the financial statements for all financial transactions of all funds of the City for each fiscal year and on an annual basis. The audited financial statements are prepared to communicate the financial health of the agency with those charged with governance, state/federal oversight agencies, investors and the general public.
Background:
On January 3, 2023, Richardson & Company, LLP (Certified Public Accountant (CPA)) was hired by the City of Marysville to perform the City’s audits covering Fiscal Years 2022-23, 2023-24, 2024-25, 2025-26, and 2026-27. The audit work for Fiscal Year 2023-24 began in October of 2024. There were several obstacles and challenges in completing the City’s audit in a timely manner which included a change in directorship and staffing levels within the Finance Department. There was also a shortage of support staff and resources that could be dedicated to the year-end close-out during the audit process.
Discussion and Analysis
Richardson & Company, LLP completed the Audited Financial Statements and Supplemental Information for the City of Marysville for the year ending June 30, 2024, which included the following audit opinion:
“In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, 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…” However, their report identified two findings of internal control weaknesses related to financial closing and the year-end closing procedures and capital asset accounting. They also issued a Management Letter containing other areas where recommendations for improvement were made.
Item #05
With the consolidation of government-wide net position into one statement and other changes such as the exclusion of fiduciary funds, net position may now serve as a useful indicator of a government’s financial position. The focus of the City’s government funds is to provide information on near-term inflows, outflows, and balances of resources available to provide services and capital project construction. Unreserved fund balance may be a valuable measure of a government’s net spendable resources.
At the end of FY 2023-24, the City’s governmental funds reported a combined fund balance of $11.95 million. The City has an unassigned fund balance of $8.16 million. The remainder of the governmental ending fund balance of $3.79 million is non-spendable, committed, or restricted. It is not available for new spending because it has been designated to pay for prior year commitments and other specific requirements.
Alignment with City Council Goal(s):
Goal #1: Increase Financial Sustainability:
By completing the Audit, the City may more accurately build the following year’s budget, comply with State law, and provide a tool for investors to evaluate the City’s financial stability and investment-worthiness.
Fiscal Analysis:
There is no fiscal impact. For informational purposes only.
Attachments:
1) Audited Financial Statements
2) Appropriations Limit Testing Letter
3) Governance Letter
4) Management Letter