Finance Committee
November 12, 2024

City of Menifee
FY2023/24 AUDIT PROCESS PRESENTATION
FOR THE YEAR ENDED JUNE 30, 2024
PRESENTED BY: ROGERS, ANDERSON, MALODY & SCOTT , LLP
NOVEMBER 12, 2024
City of Menifee
Audit objective
◦ Express opinions on management’s financial
statements
◦ After gathering and evaluating sufficient, appropriate audit evidence, provide:
◦ Reasonable assurance, not absolute, the financial statements are free of material misstatement
◦ Opinions as to whether the financial statements are fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles
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City of Menifee
Audit standards followed:
◦ Generally Accepted Auditing Standards (GAAS)
◦ Generally Accepted Government Auditing Standards (GAGAS) ◦ Uniform Guidance – Single Audit
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City of Menifee
Responsibilities
◦ Management:
◦ Financial statements
◦ Complete accurate financial records
◦ Comprehensive framework of internal control, including controls to prevent and detect fraud
◦ Governing body:
◦ Fiduciary
◦ Ensure management fulfills obligations for internal control and financial reporting
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City of Menifee
◦ Auditor responsibilities:
◦ Obtain reasonable assurance that the financial statements are free of material misstatement
◦ Examine, on a test basis, evidence supporting amounts and disclosures
◦ Assess accounting principles used, estimates made and evaluate the overall financial statement presentation.
◦ Express opinions on the City’s financial statements
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City of Menifee
◦ Audit process:
◦ Update understanding of the City and review controls over various transaction cycles (inquiries, inspect documents, perform walkthroughs, etc.)
◦ Conduct detailed audit of financial records
◦ Inspect relevant documentation (bank statements, invoices, cash receipts, etc.)
◦ Inquire about various or unusual transactions and events, if any ◦ Confirm cash and investment balances
◦ Perform analytical procedures (looking for significant variances or unusual transaction; comparing to budgeted amounts, etc.) ◦ Use Data Analytics on cash disbursements
◦ Read minutes of board meetings
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City of Menifee
Final opinion over financial statements:
◦ Unmodified (highest level of assurance)
◦ Financial statements are fairly presented in all material respects ◦ Significant accounting policies have been consistently applied ◦ Estimates are reasonable
◦ Disclosures are properly reflected
◦ Other required reporting
◦ GAGAS report on internal control (Yellow Book)
◦ SAS 114 – Communications with those charged with governance ◦ Uniform Guidance (Single Audit)
◦ GANN Limit – Appropriations AUP report
◦ Report on material weaknesses and/or significant deficiencies -6-
City of Menifee
Questions?
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