DATE: May 4, 2022
DEPARTMENT: FINANCE DEPARTMENT
FROM: Mark Roberts, Director of Finance
TITLE: AUDITED BASIC FINANCIAL STATEMENTS AND SINGLE AUDIT REPORT ON FEDERAL FUNDED PROGRAMS FOR THE YEAR ENDED JUNE 30, 2021 RECOMMENDED MOTION:
A motion to accept the audited Basic Financial Statements and Single Audit Report on federal funded programs for fiscal year ended June 30, 2021.
RECOMMENDATION:
Staff recommends that City Council accept the audited Basic Financial Statements and Single Audit Report on federal funded programs for fiscal year ended June 30, 2021.
DISCUSSION:
Audited Basic Financial Statements
The Finance Department is pleased to present the audited financial statements for the fiscal year ended June 30, 2021. The transmittal letter in the Basic Financial Statements beginning on page “i” and the Management Discussion and Analysis beginning on page F-5 provide an overview of the City’s financial activities for the fiscal year.
McGilloway, Ray, Brown & Kaufman, the City Council's independent auditor, has completed its annual audit of City affairs. Its Independent Auditors Opinion Report is included in the Basic Financial Statements on page F-1 and is a unmodified (“clean”) audit opinion stating, “In our opinion, the financial statements... present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021.” Single Audit Report on Federal Funded Programs
The Finance Department is also pleased to present the Single Audit Report of federal funded programs for the fiscal year ended June 30, 2021. The report includes a summary of the federal financial awards, internal control, compliance and schedule of findings and questioned costs for the fiscal year ending June 30, 2021.
McGilloway, Ray, Brown & Kaufman has completed its annual audit of City of Salinas compliance requirements. During the audit, they noted it noted four instances of non-compliance which are explained in the single audit report, beginning on page 13.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
DEPARTMENTAL COORDINATION:
The audited financial statements and single audit represent the work of all departments of the City.
FISCAL AND SUSTAINABILITY IMPACT:
Costs associated with the audit are included in the City’s fiscal year 2022 budget.
ATTACHMENTS:
Basic Financial Statements
Single Audit Report on Federal Funded Programs
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