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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Barbara Whitehorn, Director of Finance & Management
Services
Department: Finance & Management Services
Subject: Receive and File the City’s Annual Comprehensive Financial Report for the Year Ended June 30, 2023 (All
Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file City’s Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2023.
Executive Summary
The purpose of this report is to present the City of San Bernardino's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023, to the Mayor and City Council. It provides an overview of the independent audit conducted by Rogers, Anderson, Malody and Scott, LLP (RAMS), highlighting the financial position of the City in accordance with Generally Accepted Accounting Principles (GAAP), and recommends receiving and filing the ACFR without any fiscal impact.
Background
Pursuant to California law, each year, the City has an independent audit conducted of its financial statements and related internal control procedures. The audit for the fiscal year ended June 30, 2023, has been completed and the Annual Financial Report issued by the City’s auditor, Rogers, Anderson, Malody and Scott, LLP (RAMS).
Discussion
One of the key aspects of any annual financial audit is the Independent Auditor’s Report, which is provided on page 1 of the Annual Comprehensive Financial Report (ACFR) (Attachment 1). The Independent Auditor’s Report provides its opinion on whether or not the financial statements fairly present, in all material respects, the 2 0
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respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of the end of the fiscal year, and the respective changes in financial position and cash flows, where applicable, in conformance with Generally Accepted Accounting Principles (GAAP).
The resulting “opinion letter” is either unqualified or qualified. The “opinion letter” received by the City for its financial statements for the period ended June 30, 2023, is unqualified, indicating that the financial statements fairly represent the City’s financial position in accordance with GAAP.
In addition to the Annual Comprehensive Financial Report (ACFR), the independent auditor issues other related documents, which are summarized below:
•Audit Overview Letter (Attachment 2)
Discusses the auditor’s responsibilities under Government Auditing Standards and any significant issues encountered during the audit that warrant disclosure.
Although the auditors identified significant risks: management’s override of internal controls over financial reporting, and revenue recognition, these risks are presumptive in most audits. The auditors also noted no matters of management override of controls or deviations from generally accepted accounting principles.
None of the misstatements detected as a result of the audit procedures and corrected by management were material, either individually or in aggregate, to the financial statements taken as a whole.
•Internal Control & Compliance Report (Attachment 3)
The Internal Control & Compliance Report identifies any material internal control deficiencies that impact the financial statements. The results of the tests performed by the City auditors did not identify any deficiencies in internal control that are required to be reported under Government Auditing Standards. In addition, the results of the Auditor’s tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
2021-2025 Strategic Targets and Goals
Receive and file the City’s Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2023, aligns with Key Target No. 1: Improved Operational and Financial Capacity.
Fiscal Impact
There is no fiscal impact associated with the receiving and filing the City’s Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2023. 2 0
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the City’s Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2023.
Attachments
Attachment 1 – City of San Bernardino Annual Comprehensive Financial Report (ACFR) for the Year Ended, June 30, 2023
Attachment 2 – Audit Overview Letter
Attachment 3 – Internal Control and Compliance Report
Ward:
All Wards
Synopsis of Previous Council Actions:
N/A