City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00333 4/18/2023 Consent Item 5.
Fiscal Year 2021/22 Independent Accountants’ Report on the Appropriation Limit Calculation File ID: 2023-00333
Location: Citywide.
Recommendation: Receive and file.
Contact: Osvaldo Lopez, Finance Manager, (916) 808-4740, [email protected]; Leyne Milstein, Assistant City Manager, (916) 808-8491, [email protected], Department of Finance.
Presenter: None.
Attachments:
1-Description/Analysis
2-2022 City of Sacramento GANN Limit
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, 2022.
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
File ID: 2023-00333 4/18/2023 Consent Item 5.
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, CALIFORNIAIndependent Accountants Report on Applying Agreed-Upon Procedures Related to the ArticleXIII-B Appropriations Limit CalculationFor the Fiscal Year Ended June 30, 2022 www.mgocpa.com500 Capitol Mall, Suite 2200Sacramento, CA 958141 Independent Accountants Report on Applying Agreed-UponProcedures Related to the Article XIII-B Appropriations Limit CalculationTo the Honorable Mayor andMembers of the City Council City of Sacramento, CaliforniaWe 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, 2022. The Citys management is responsible for the Appropriations Limit Worksheet for the fiscal year ended June 30, 2022.The 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 theCCMA 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 and the associated findings are as follows: 1. We obtained the completed worksheets setting forth the calculations necessary to establish the Citys appropriations limit and compared the 2021-22 limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by a resolution ofthe City 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.Finding: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, 2021, to the annual adjustment amount, and compared the resulting amount to the appropriations limit for the fiscal year ended June 30, 2022.Finding: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.Finding:No exceptions were noted as a result of our procedures. 2 4. We agreed the appropriations limit for the fiscal year ended June 30, 2021, presented in the accompanying Appropriations Limit Worksheet to the appropriations limit for the fiscal year ended June 30, 2021, adopted by the City Council.Finding:No exceptions were noted as a result of our procedures.We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, 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, 2022. 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 are 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.
Sacramento, CaliforniaDecember 19, 2022
CITY OF SACRAMENTOAppropriations Limit WorksheetFor the Fiscal Year Ended June 30, 2022(Amounts in Thousands) 3 Appropriations Limit for the fiscal year ended June 30, 2021, as adopted $ 890,747Adjustment factors:Population factorgrowth of the population within the City of Sacramento 1.0040Inflation factorgrowth in Californias per capita personal income 1.0573Total adjustment factor (rounded) 1.0615Annual adjustment amount 54,807Appropriations Limit for the fiscal year ended June 30, 2022, as adopted $ 945,554Note: The population factor above has been rounded.