City of San LeandroIndependent Auditor’s PresentationFor Fiscal Year Ended June 30, 2025 David alvey, CPA
Partner
Finance Committee Meeting: January 28, 2026 Page 1
Background
Finance Committee Meeting: January 28, 2026 Page 2
Who We Are
Finance Committee Meeting: January 28, 2026 Page 3
Annual Audit
Services engaged for fiscal year ended June 30, 2025:
Audit of City’s basic financial statements
Appropriation Limit calculation agreed-upon-procedures (AUP) Compliance audit of Federal Awards (Single Audit)
County Measure (BB and F) Compliance Reports
Transportation Development Act (TDA) Compliance
Conducted according to auditing standards generally accepted in the USA, and Government Auditing Standards Finance Committee Meeting: January 28, 2026 Page 4
AUDIT Timing
Finance Committee Meeting: January 28, 2026 Page 5
Results
Finance Committee Meeting: January 28, 2026 Page 6
Annual Comprehensive Financial Report
Finance Committee Meeting: January 28, 2026 Page 7
Components of an Annual Comprehensive Financial Report
Basic Financial Statements:
Auditor’s Opinion
MD&A (written by management)
Statements
Footnotes
Other Components:
Transmittal Letter
Required Supplemental Information
Supplemental Information
Statistical Section
Finance Committee Meeting: January 28, 2026 Page 8
City once again received the GFOA award for its June 30, 2024 ACFR City submitted its June 30, 2025 ACFR
Finance Committee Meeting: January 28, 2026 Page 9
Entity-wide vs. Fund Financial Statements
Entity-wide Level
Fund Level
Current Assets
Long-Term Assets
Current Liabilities
Long-Term Liabilities
Equity
Net Position
Fund Balance
Finance Committee Meeting: January 28, 2026 Page 10
Implementation of GASB 101 – Compensated Absences
GASB 101 – Compensated Absences
Objective of this Statement is to unify the recognition and measurement of the liability for compensated absences that more appropriately reflects when a government incurs an obligation.
The City updated its calculation of the compensated absences liability to include an estimate of sick leave balances likely to be utilized, as well as certain payroll-related taxes on the liability.
Restatement was not deemed required as the additional liability was not considered material to warrant a prior period adjustment.
Finance Committee Meeting: January 28, 2026 Page 11
Entity (City)-wide
Finance Committee Meeting: January 28, 2026 Page 12
2025 vs. 2024
Net Position at 6/30
2024
2025
Change
Net Investment in capital assets
$193.0m
$215.4m
$22.4m
Restricted
$115.0m
$126.8m
$11.8m
Unrestricted
($17.8m)
($55.0m)
($37.2m)
Total
$290.2
$287.1m
($3.1m)
Finance Committee Meeting: January 28, 2026 Page 13
Financial Highlights – General Fund
Fund Balance $105.0m
$1.9m increase
Non-spendable: $5.9m (Advances and Loans)
Restricted: $35.6m (Pension Trust)
Committed: $683k (CDBG and Oakland Airport access license) Assigned: $1.2m
Unassigned: $61.7m
Finance Committee Meeting: January 28, 2026 Page 14
Other Highlights
- Section 115 Irrevocable Pension Trust – balance is $34.7m at 6/30/25 - Net Pension Liability decreased $235.7m to $231.2m
- Net Other Post Employment Benefits (OPEB) Liability decreased $1.1m to $25k Finance Committee Meeting: January 28, 2026 Page 15
Audit Process
Finance Committee Meeting: January 28, 2026 Page 16
Audit Process
Audit went very smooth
Timely: made the 12/31 ACFR deadline
Staff prepared on time and very responsive
Minimal post-closing adjustments
Open items on engagement:
Single Audit
Completion of Memorandum on Internal Control and Required Communications Finance Committee Meeting: January 28, 2026 Page 17
QUESTIONS?
Finance Committee Meeting: January 28, 2026 Page 1