CITY COUNCIL STAFF REPORT
Meeting Date:
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: Accept the Audited Annual Comprehensive Financial Report, Measure K Fund Report, and the Management Letter for the Fiscal Year Ended June 30, 2024
SYNOPSIS
On February 13, 2024, the Budget Committee reviewed the Annual Comprehensive Financial Report, Measure K Fund Report, and the Management Letter as of June 30, 2024, and recommends that the City Council receive and accept the report.
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, 2024.
Analysis
The Annual Comprehensive Annual Financial Report (ACFR) summarizes the City’s financial activities for fiscal year (FY) 2023/2024 and fund balances as of June 30, 2024. 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 2023/2024 is attached for the City Council to review and consideration for acceptance. The ACFR provides extensive and detailed financial information for the City during the fiscal year, an informative financial summary is already included in the ACFR’s transmittal letter (PP. i-iv), independent auditor’s report (PP. 1-3), and management’s discussion and analysis section (PP. 5-17). The Mayor did provide some minor corrections and clarifications to staff, none of the edits affect the financial statements and will be incorporated in the published online version.
MGO also prepares the Management Letter to the City Council. This report provides the auditors with an opportunity to determine any audit issues and/or areas needing improvement. In summary, the auditors had no material audit issues, findings, or disagreements with the City.
Finally, the Pleasant Hill Transactions and Use Tax (Measure K) Ordinance requires that an independent auditor complete an annual report on the funds collected and expended. Similar to the ACFR, the auditors have an unmodified opinion on the Measure K Fund Report, which is the highest possible rating.
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, Measure K Fund Report, and Management Letter for the fiscal year ended June 30, 2024, as recommended by the Budget Committee.
ALTERNATIVES TO RECOMMENDED ACTION
Do not accept the City of Pleasant Hill’s Annual Comprehensive Financial Report, Measure K Fund Report, and Management Letter for the fiscal year ended June 30, 2024, and provide direction to staff.
ATTACHMENT(S)
1. Annual Comprehensive Financial Report (ACFR) for June 30, 2024
2. Management Letter to the City of Pleasant Hill for June 30, 2024
3. Measure K Fund Report for June 30, 2024
Prepared by: Erick Cheung, Chief Finance Officer
Approved by: Ethan Bindernagel, City Manager