Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer Budget and Audit Committee Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00110 February 1, 2022 Consent Item 03
Title: Fiscal Year 2020/21 Independent Accountants’ Report on the Appropriation Limit Calculation
Location: Citywide
Recommendation: Receive and file
Contact: Osvaldo Lopez, Finance Manager, (916) 808-4740, [email protected] ; Emily Combs, Director, (916) 808-7914, [email protected] , Department of Finance
Presenter: None
Attachments:
1-Description/Analysis
2-2021 City of Sacramento GANN Limit
File ID: 2022-00110 Consent Item 03
February 1, 2022
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City of Sacramento
Description/Analysis
Issue Detail: Section 1.5 of Article XIII B of the California Constitution requires that local governments engage their auditors to apply certain agreed-upon procedures to the appropriation limit data compiled by the local government. The City’s appropriations limit calculation agreed-upon procedures have been conducted to confirm that the City is meeting the requirements for the fiscal year ending June 30, 2021.
Policy Considerations: This report is consistent with the City’s fiscal transparency and accountability principles.
Economic Impacts: None.
Environmental Considerations: Not applicable.
California Environmental Quality Act (CEQA): This action is not a ‘project’ subject to CEQA because it involves only organizational or administrative activities that will not result in direct or indirect physical changes in the environment (14 Cal. Code Regs. § 15378(b)(5)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Compliance with Section 1.5 of Article XIII B of the California Constitution requires that the annual calculation of the appropriations limit be reviewed as part of an annual financial audit.
The public accounting firm Macias Gini & O’Connell, LLP, has performed the agreed-upon procedures in accordance with attestation standards established by the American Institute of Certified Public Accountants.
Financial Considerations: The total appropriations shall not exceed the appropriations limit of the City for the prior year adjusted for the change in the cost of living and the change in population. The review conducted by Macias Gini & O’Connell, LLP has confirmed that the City has not exceeded this limit.
Local Business Enterprise (LBE): Not applicable.
CITY OF SACRAMENTO, CALIFORNIA
Inde
pendent Accountant’s Report on Applying Agreed-
Upon Procedures Related to the Article
XIII-B Appropriations Limit Calculation
Fo
r the Fiscal Year Ended June 30, 2021
www.mgocpa.com
Macias Gini & O’Connell LLP
500 Capitol Mall, Suite 2200
Sacramento, CA 95814
1 Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B
Appropriations Limit Calculation
To t
he Honorable Mayor and
Members of the City Council
City of Sacramento, California
We
have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Sacramento, California (City) for the fiscal year ended June 30, 2021. The City’s management is responsible for the Appropriations Limit Worksheet for the year ended June 30, 2021.
Th
e City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in evaluating the appropriations limit calculation in accordance with the requirements of Section 1.5 of Article XIII -B of the California Constitution . The procedures are recommended by the California Committee on Municipal Accounting (CCMA), as presented in the CCMA publication titled Agreed -Upon Procedures Applied to the Appropriations Limit Prescribed by Article XIII-B of the California Constitution . The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The
procedures performed and our findings are as follows:
1. We o bt
ained the completed worksheets setting forth the calculations necessary to establish the City’s appropriations limit and compared the 2020 -21 limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by a resolution of the C ity Council. We also compared the population and inflation factors included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.
Findi
ng: No exceptions were noted as a result of our procedures.
2. For
the accompanying Appropriations Limit Worksheet, we added the appropriations limit for the fiscal year ended June 30, 2020, to the annual adjustment amount, and compared the resu lting amount to the appropriations limit for the fiscal year ended June 30, 2021.
Findi
ng: No exceptions were noted as a result of our procedures.
3. We
compared the current year information presented in the accompanying Appropriations Limit Worksheet to the worksheets described in procedure No. 1 above.
Findi
ng: No exceptions were noted as a result of our procedures.
2 4. We agreed the appropriations limit for the fiscal year ended June 30, 2020, presented in the accompanying Appropriations Limit Worksheet to the appropriations limit for the fiscal year ended June 30, 2020, adopted by the City Council.
Findi
ng: No exceptions were noted as a result of our procedures.
We wer
e engaged by the City to perform this agreed- upon procedures engagement and conducted our engagement in accordance with attestation standards established by the A merican Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the appropriations limit calculation for the fiscal year ended June 30, 2021. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution.
We a
re required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
Th
is report is intended solely for the information and use of the Mayor, City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Sacr
amento, California
December 15, 2021
CITY OF SACRAMENTO
Appropriations Limit Worksheet
For the Fiscal Year Ended June 30, 2021
(Amount in Thousands)
3 Appropriations Limit for the fiscal year ended June 30, 2020, as adopted $ 849,122 Ad
justment factors:
Population factor – growth of the population within 1.0113 the City of Sacramento
Inflation factor – growth in California’s per capita personal income 1.0373 Total adjustment factor (rounded) 1.0490
Annual adjustment amount 41,625
Appropriations Limit for the fiscal year ended June 30, 2021, as adopted $ 890,747 Note: The population factor above has been rounded.