CITY COUNCIL STAFF REPORT
Meeting Date: March 21, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: PRESENTATION OF THE AUDITED ANNUAL COMPREHENSIVE
FINANCIAL REPORT (ACFR) AND MEASURE K FUND REPORT FOR
THE FISCAL YEAR ENDED JUNE 30, 2021
SYNOPSIS
The Budget Committee reviewed the Annual Comprehensive Financial Report and the Management Letter as of June 30, 2021 on March 15, 2022 and is now presented for review and acceptance by the City Council.
DISCUSSION
Background
The City’s fiscal year operates from July 1 through June 30. The Annual Comprehensive Financial Report (ACFR) summarizes the City’s financial activities and fund balances as of June 30, 2021.
Analysis
Annual Comprehensive Financial Report (ACFR)
The Annual Comprehensive Annual Financial Report (ACFR) summarizes the City’s financial activities for fiscal year (FY) 2020/21 and fund balances as of June 30, 2021. The ACFR was prepared in accordance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). The financial statements contained within the ACFR were audited by Macias, Gini & O’Connell LLP (MGO), the City’s independent Certified Public Accountant, which issued an unmodified opinion - the highest possible rating.
The ACFR for FY 2020/21 is attached for your review and consideration for acceptance. The transmittal letter, independent auditor’s report, and management’s discussion and analysis section provide a good summary of the City’s financial activities during the year.
MGO also prepares the Management Letter to the City Council and this report provides the auditors an opportunity to inform on any audit issues and/or areas of improvement. In summary, the City had no material audit issues nor disagreements with the auditors. The auditors recommend changes to identify projects as construction-in-progress (CIP), and new projects (i.e.
Library project) or projects that extend the life of an asset be considered fixed assets. Other projects may be either repair and/or maintenance (i.e. damaged street curb) work and those should not added to fixed assets. The Finance Department will review the CIP projects to determine if they should be included with fixed assets in the future.
FISCAL IMPACT
None
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.
The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Accept the City of Pleasant Hill’s Annual Comprehensive Financial Report and Management Letter for the fiscal year ended June 30, 2021.
ALTERNATIVES TO RECOMMENDED ACTION
Do not accept the City of Pleasant Hill’s Annual Comprehensive Financial Report and Management Letter for the fiscal year ended June 30, 2021.
ATTACHMENT(S):
1. City of Pleasant Hill Annual Comprehensive Financial Report (ACFR) At Fiscal Year-End June 30, 2021
2. Management Letter to the City of Pleasant Hill for June 30, 2021 Prepared by: Erick Cheung, Finance Manager
Approved by: June Catalano, City Manager