June 21, 2022
Finance Department
DATE: June 21, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Delmy Cuellar, Director of Finance
Jerry Chak, Accounting Manager
Subject:
City of Richmond Audited Reports for the Fiscal Year
Ended June 30, 2021
FINANCIAL IMPACT: None
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
The City is required by Charter Section 9d to have an
independent audit of its financial records performed
annually. For Fiscal Year 2020-2021, the City engaged
Badawi & Associates, an independent Certified Public
Accounting firm, to perform the Single Audit, Richmond
Joint Powers Financing Authority Report, and
Independent Accountant’s Report on Agreed-Upon
Procedures Applied to Appropriations Limit Schedule, for the fiscal year ended June 30, 2021.
RECOMMENDED ACTION:
RECEIVE Audited reports for Single Audit, Richmond
Joint Powers Financing Authority Report, and
Independent Accountant’s Report on Agreed-Upon
Procedures Applied to Appropriations Limit Schedule for Fiscal Year 2020-2021 – Finance Department (Delmy
Cuellar 510-620-6740).
AGENDA
REPORT
June 21, 2022
DISCUSSION:
Badawi and Associates, the City of Richmond’s external auditors have provided the reports mentioned below.
Single Audit Report:
The auditors’ responsibilities are to express an opinion on compliance for each of the City’s major federal programs. The auditors conducted an audit of compliance in accordance with financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States and the audit requirements of Tile 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). An audit includes examining, on a test basis, evidence about City’s compliance with those requirements and performance such other procedures as auditors consider necessary in the circumstances. The auditors’ opinions on the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the financial statements as a whole.
Richmond Joint Powers Financing Authority Report:
This report comprises the Authority’s basic component unit financial statement and Independent Auditor’s Report. The report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Independent Accountant’s Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule:
The auditors performed a procedure in which the City agreed on the Appropriations Limit Worksheet for the year ended June 30, 2021. These procedures are suggested by the League of California Cities and presented in the Article XIII-B Appropriations Limitation Uniform Guidelines, where performed solely to assist in meeting the requirements of Section 1.5 of Article XIII-B of the California constitution.
DOCUMENTS ATTACHED:
Attachment 1 – Single Audit Report for the year ending June 30, 2021 Attachment 2 – Richmond Joint Powers Financing Authority Basic Financial Statements and Independent Auditor’s Report for the year ended June 30, 2021 Attachment 3 – Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule For the year ending June 30, 2021