CITY OF SALINAS
Presentation to the Finance CommitteeFor the Fiscal Year Ended June 30, 2025February 3, 2026
CONTENTS
Required Communications (AU-C 260)
Audit Responsibilities
Overview of Financial Statements
Audit Results
REQUIRED COMMUNICATIONS (AU-C 260)
Required Communications (AU-C 260)
Independence
We complied with ALL relevant requirements regarding independence Significant Accounting Policies
The City disclosed all significant accounting policies in Note 2 to the financial statements.
The City implemented GASB Statement No. 101, Compensated Absences and GASB Statement No. 102, Certain Risk Disclosures Significant Estimates
Fair market value on investments
Depreciation/amortization on capital assets
Proportional share of joint ownership for investment in joint venture (CSD only) Liability for unused sick leave / “more likely than not” amount Net pension liability actuarial inputs
Net other postemployment benefit liability actuarial inputs
Required Communications (AU-C 260)
Sensitive Disclosures
Note 1 – Summary of Significant Accounting Policies
Note 2 – Stewardship, Compliance, and Accountability
Note 12 – Long-Term Debt
Note 16 – Retirement Programs
Note 17 – Other Post-Employment Benefits (OPEB)
Note 18 – Net Position and Fund Balances
Note 19 – Other Required Disclosures
Note 22 – Changes to or within the Financial Reporting Entity Misstatements
There were no uncorrected misstatements reported.
Consultation with Other Accountants
There were no consultations with other accountants regarding audit-related matters.
Required Communications (AU-C 260)
Significant Difficulties
We encountered no significant difficulties in dealing with management.
Disagreements with Management
We did not have any disagreements with management in terms of accounting treatments or audit procedures performed.
Non-Authoritative Guidance
We did not come across any instances where transactions occurred that did not have authoritative guidance.
AUDIT RESPONSIBILITIES
MANAGEMENT’S RESPONSIBILITIES
Responsible for the financial statements
Present the financial statements in accordance with accounting principles generally accepted in the United States of America (US GAAP) Adopt sound accounting policies
Establish and maintain internal controls over financial reporting and compliance Provide evidence supporting the amounts and disclosures in the financial statements Fair presentation of financial statements that are free from material misstatements, whether due to fraud or error Prevent and detect fraud
AUDITORS’ RESPONSIBILITIES
Perform the audit in conformity with Auditing Standards Generally Accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States Communicate with “Those Charged with Governance”
Assess audit risk of internal control over financial reporting Determine the fairness of the presentation of the financial statements Render an opinion on the financial statements
Issue recommendations to management, if any
OVERVIEW OF THE FINANCIAL STATEMENTS
City of SalinasGovernment-WideCondensed Statement of Net Position – Governmental ActivitiesJune 30, 2025 and 2024
City of SalinasGovernment-WideCondensed Statement of Net Position – Business-Type ActivitiesJune 30, 2025 and 2024
City of SalinasGovernment-Wide SummaryStatement of Activities – Governmental Activities For the Years Ended June 30, 2025 and 2024
City of SalinasGovernment-Wide SummaryStatement of Activities – Business-Type Activities For the Years Ended June 30, 2025 and 2024
City of SalinasGeneral FundCondensed Balance SheetsJune 30, 2025 and 2024
City of SalinasGeneral FundCondensed Statement of Revenues, Expenditures and Changes in Fund Balance For the Years Ended June 30, 2025 and 2024
AUDIT RESULTS
Audit Results
Opinions
Unmodified Opinions issued to All Opinion Units
Financial statements are fairly presented in all material respects Accounting policies have been consistently applied
Estimates used are reasonable
Disclosures are properly reflected in the financial statements
Other Results
No disagreements with management were noted
No material weaknesses or significant deficiencies were identified in internal control over financial reporting and/or compliance (2025 federal Single Audit issuance still pending – no findings anticipated) No inappropriate activities or fraud, waste, or abuse were noted No accounting issues were noted where there was a lack of authoritative guidance
Thank you!