City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Saadiah Ryan, Finance Director
MEETING DATE: February 1, 2022
ITEM NO: 6.1
SUBJECT: Accept the City of Patterson’s 2020-21 Financial Audit Report. Accept the Single Audit 2020-21 Report. Accept the City of Patterson’s 2020-21 Transportation Development Act Funds Financial Audit Report. Accept the City of Patterson’s 2020-21 Abandoned Vehicle Abatement Program Financial Audit Report.
RECOMMENDATION
Accept the City of Patterson’s 2020-21 Financial Audit Report.
Accept the Single Audit 2020-21 Report.
Accept the City of Patterson’s 2020-21 Transportation Development Act Funds Financial Audit Report.
Accept the City of Patterson’s 2020-21 Abandoned Vehicle Abatement Program Financial Audit Report.
BACKGROUND
The City of Patterson publish financial statements presented in conformance with Generally Accepted Accounting Principles (GAAP). The financial statements were audited by the independent public accounting firm of The Pun Group, LLP, whose unmodified opinion is included within the financial section of the report. Unmodified opinion indicates that the financial statements present fairly the financial position of the City of Patterson as of June 30, 2021, and the results of operations, in accordance with generally accepted accounting principles. As part of the audit, The Pun Group, LLP also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, there is no instance non-compliance.
All non-Federal entities that expend $750,000 or more of Federal awards in a year are required to obtain an annual audit to comply with both the Single Audit Act Requirements and Federal Government’s Office of Management and Budget (OMB) standards. The Single Audit had been completed and the independent auditors have indicated that the City of Patterson has no instance noncompliance.
The City of Patterson’s 2020-21 financial report, 2020-21 Single Audit Report, 2020-21 Abandoned Vehicle Abatement Program financial report and 2020-21 Transportation Development Act Funds financial report are available on the City’s website and are attached to this staff report.
Representative of The Pun Group will be present to discuss the audit and answer questions.
ANALYSIS
The General Fund is the main unrestricted operating fund of the City of Patterson. On June 30, 2021, the City’s General Fund has a fund balance of $13.7 million, which included unassigned, available funds of approximately $6.5 million, assigned of $2.9 million, committed of $3.7 million, restricted of $360,000 and nonspendable $106,000. The available General Fund balance was more than the amount projected as the beginning balance in the adopted budget for FY 2020-21. This is due to higher actual than budgeted in property tax $319,000 sales tax $2.9 million and operation and maintenance expenditures is lower than budgeted $1.9 million.
Net Position in the City’s enterprise funds totaled approximately $43.0 million as of June 30, 2021, which was $394,000 lower than the ending balance in the prior fiscal year. Of the $43.0 million in net position, $37.0 million is invested in capital assets, $3.13 million restricted and $2.9 million unrestricted.
FISCAL IMPACT
Acceptance of this report does not affect the City’s budget or its financial condition. The report merely reflects an audit of the City’s financial records at June 30, 2021.