City of San Ramon
FINANCE COMMITTEE
AGENDA
Sridhar Verose, Chair • Marisol Rubio, Vice Chair
City Hall - Large Conference Room, Second Floor
7000 Bollinger Canyon Road
Regular Meeting
4:30 PM
August 14, 2025
AGENDA QUESTIONS: PLEASE CALL THE ADMINISTRATIVE SERVICES DIRECTOR AT (925) 973-2576
1. CALL TO ORDER
2. PUBLIC COMMENT
At this time, members of the public are encouraged to address the Committee on any item not already included on the agenda. Comments should not exceed three (3) minutes. No Committee action can be taken at this meeting on issues raised during public comment.
3. APPROVAL OF MINUTES
3.1 Finance Committee - Regular Meeting - July 16, 2025
4. UNFINISHED BUSINESS
5. NEW BUSINESS
5.1 PARS Pension Stabilization Trust Statement for the Period Ending June 30, 2025 Staff Report by Jennifer Wakeman, Finance Director
5.2 SAS Communications for the FY25 Annual Comprehensive Financial Report Staff Report by Jennifer Wakeman, Finance Director
6. COMMITTEE MEMBER COMMENTS
7. ADJOURNMENT
The next Finance Committee Meeting is scheduled for September 11, 2025.
I hereby certify the agenda was posted 72 hours before the noted meeting. This agenda is posted in accordance with Government Code Section 54954.2(a). To make a request for disability-related accommodation to participate in the meeting, please contact the City Clerk’s Office 48 hours in advance of the meeting at 925-973-2539 or [email protected].
Dated: August 8, 2025
2 Finance Committee Meeting – August 14, 2025
ATTENDEE CONDUCT
There will be zero tolerance for any person addressing the Committee making profane, offensive and disruptive remarks, or engaging in loud, boisterous, or other disorderly conduct, that disrupts the orderly conduct of the public meeting. Specifically, it is important for all speakers to adhere to the following guidelines for participation in this meeting:
a. No profanity or obscenity
b. Refrain from personal threats or attacks.
c. Refrain from hateful epithets and demeaning language based on any person’s race, religion, sexual orientation, ethnicity, gender, or disability. d. Respect all people that are present.
At the discretion of the Committee Chair, a speaker may forfeit speaking time for any of the following reasons:
a. Exceeding the allotted time to speak;
b. Yelling, screaming, or other behavior that renders this Committee unable to continue the meeting;
c. Excessive profanity or slander; Specific threats or “fighting words” that incite violence; or
d. Speech that is outside the subject matter jurisdiction of the Committee or the specific agenda item in which you are speaking.
While the City of San Ramon ensures the First Amendment rights of its citizens, we do not accept nor endorse any offensive or hateful comments made during our meetings. The City of San Ramon celebrates the diversity of our community, and we strive to be a welcoming and open community for all.
MINUTES OF THE
CITY OF SAN RAMON FINANCE COMMITTEE
July 16, 2025
1. CALL TO ORDER
The meeting was called to order at 4:34 PM.
Attendee Name Title Status Arrived
Sridhar Verose Chair Present
Marisol Rubio Vice Chair Present
Also in attendance Steven Spedowfski, City Manager; Scott Koll, Assistant City Manager; Jennifer Wakeman, Finance Director; Michelle Joe, Finance Analyst; Adolfo Navarro, Accounting Specialist
2. PUBLIC COMMENT
3. APPROVAL OF MINUTES
3.1 Finance Committee - Regular Meeting - May 21, 2025 4:30 PM RESULT: ACCEPTED [UNANIMOUS]
AYES: Verose, Rubio
4. UNFINISHED BUSINESS
5. NEW BUSINESS
5.1 Draft Fiscal Year 2025-26 Statement of Investment Policy Staff Report by Jennifer Wakeman, Finance Director
The Finance Committee accepted the report and recommended forwarding to City Council for approval.
RESULT: RECOMMENDED
5.2 City of San Ramon Quarterly Investment Report for the Period Ending June 30, 2025
Report by Michelle Joe, Finance Analyst
Public Comment given expressed displeasure of having two meetings at the same time and asked questions of staff.
The Finance Committee accepted the report.
3.1 Packet Pg. 3
Minutes Acceptance: Minutes of Jul 16, 2025 4:30 PM (APPROVAL OF MINUTES) 2 Finance Committee Meeting – July 16, 2025
RESULT: ACCEPTED
6. COMMITTEE MEMBER COMMENTS
7. ADJOURNMENT
The meeting adjourned at 4:59 PM. The next Finance Committee Meeting is scheduled for August 14, 2025.
3.1 Packet Pg. 4
Minutes Acceptance: Minutes of Jul 16, 2025 4:30 PM (APPROVAL OF MINUTES)
FINANCE COMMITTEE STAFF REPORT
DATE: August 14, 2025
TO: Finance Committee/City Manager
FROM: Jennifer Wakeman, Finance Director
By: Jennifer Wakeman, Finance Director
SUBJECT: PARS Pension Stabilization Trust Statement for the Period Ending June 30, 2025
RECOMMENDED ACTION
Staff recommends that the Finance Committee review and accept the PARS Pension Stabilization Trust Statements for the quarter ended June 30, 2025.
BACKGROUND/DISCUSSION
Participation in the PARS Pension Stabilization Trust (PARS trust) was approved by City council on November 28, 2017, by Resolution No. 2017-128. The purpose of the PARS Trust is to prefund pension obligations to address unfunded liabilities and large variances in annual pension contributions. Before the PARS Trust was established, the City’s only option for reducing the unfunded pension liability was to commit additional funds to CalPERS. Unfortunately, these additional funds would be subject to the same market volatility risk and investment restrictions as the current CalPERS contributions and would not necessarily improve the plan’s overall funded status in the long run. Pre-funding the pension obligations through the PARS Trust versus CalPERS offers the following benefits:
• Provides local control and more flexibility in investment allocations compared to maintaining funds in a City-invested reserve or giving money to CalPERS to pay down unfunded liability
• Offers potential for higher investment returns
• Acts as a reserve fund to help the City pay for increasing CalPERS annual contribution requirements and helps mitigate General Fund budget spiking On April 1, 2025, the PARS Trust had a balance of $1,864,059. During this quarter, there were investment gains of $18,751 and expenses of $1,169, which left an ending balance of $1,881,641 at June 30, 2025.
FISCAL ANALYSIS
This item is for informational purposes only - no fiscal impact.
STEPS FOLLOWING APPROVAL
5.1 Packet Pg. 5
None
ATTACHMENT(S)
A: PARS Stmt - Apr 2025
B: PARS Stmt - May 2025
C: PARS Stmt - June 2025
5.1 Packet Pg. 6
CITY OF SAN RAMON
PARS Post-Employment Benefits Trust 4/1/2025 to 4/30/2025 Steven Spedowfski
City Manager
City of San Ramon
7000 Bollinger Canyon Rd.
San Ramon, CA 94583
Account Summary
Source 4/1/2025 Contributions Earnings Expenses Distributions Transfers 4/30/2025 PENSION 1002 $1,864,058.90 $0.00 $6,311.67 $388.35 $0.00 $0.00 $1,869,982.22 Totals $1,864,058.90 $0.00 $6,311.67 $388.35 $0.00 $0.00 $1,869,982.22 Investment Selection
Source
PENSION
Investment Objective
Source
PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years PENSION 0.34% 1.01% 6.03% 5.03% 5.77% - 3/14/2018
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
Account Report for the Period
Balance as of
Moderate - Strategic Blend
Balance as of
The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments.
Plan's Inception Date
5.1.a
Packet Pg. 7
Attachment: A: PARS Stmt - Apr 2025 (4767 : PARS Pension Stabilization Trust Statement - June 30, 2025)
5.1.b
Packet Pg. 8
Attachment: B: PARS Stmt - May 2025 (4767 : PARS Pension Stabilization Trust Statement - June 30, 2025)
CITY OF SAN RAMON
PARS Post-Employment Benefits Trust 6/1/2025 to 6/30/2025 Steven Spedowfski
City Manager
City of San Ramon
7000 Bollinger Canyon Rd.
San Ramon, CA 94583
Account Summary
Source 6/1/2025 Contributions Earnings Expenses Distributions Transfers 6/30/2025 PENSION 1002 $1,875,994.76 $0.00 $6,036.90 $390.83 $0.00 $0.00 $1,881,640.83 Totals $1,875,994.76 $0.00 $6,036.90 $390.83 $0.00 $0.00 $1,881,640.83 Investment Selection
Source
PENSION
Investment Objective
Source
PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years PENSION 0.32% 1.00% 4.51% 7.03% 5.00% - 3/14/2018
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
Account Report for the Period
Balance as of
Moderate - Strategic Blend
Balance as of
The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments.
Plan's Inception Date
5.1.c
Packet Pg. 9
Attachment: C: PARS Stmt - June 2025 (4767 : PARS Pension Stabilization Trust Statement - June 30, 2025)
FINANCE COMMITTEE STAFF REPORT
DATE: August 14, 2025
TO: Finance Committee/City Manager
FROM: Jennifer Wakeman, Finance Director
By: Jennifer Wakeman, Finance Director
SUBJECT: SAS Communications for the FY25 Annual Comprehensive Financial Report
RECOMMENDED ACTION
Staff recommends that the Finance Committee receive and accept the SAS communications for the FY25 Annual Comprehensive Financial Report.
BACKGROUND/DISCUSSION
To facilitate open and on-going discussions with the audit committee, AICPA Statement of Auditing Standards (SAS) 114, requires auditors to share specific information as part of the audit engagement. Under SAS 114, auditors are required to communicate the following:
• Auditors’ responsibility under generally accepted auditing standards • Critical accounting policies and practices used by the organization • Alternative accounting treatments within GAAP related to material items that have been discussed with management
• Other material written communications between the accounting firm and management • Significant findings from the audit
As the bulk of the audit fieldwork will be completed in October 2025, at this time the auditor will be speaking only to the first bulleted item. The remaining required communications items will be addressed when the audit is complete and a draft report is brought to the Finance Committee prior to review by the City Council.
Today’s presentation by the auditors will specifically address items such as the engagement team, deliverables and scope of the audit, areas of primary audit risk, responsibilities of auditor and management, independence, audit timing, and new accounting standards.
FISCAL ANALYSIS
This item is for informational purposes only - no fiscal impact.
STEPS FOLLOWING APPROVAL
None
ATTACHMENT(S)
5.2 Packet Pg. 10
FY25 Letter from Maze & Associates
FY25 Audit Engagement Letter
5.2 Packet Pg. 11
August 28, 2025
Finance Committee
City of San Ramon
7000 Bollinger Canyon Road
San Ramon, CA 94583
Dear Finance Committee Member,
We are engaged to audit of the City of San Ramon’s (City) basic financial statements for the year ended June 30, 2025. Professional standards require that we provide you with the following information related to our audit including audit scope, management representations, fraud risk considerations and audit timing. We have presented an overview of these topics below.
Our Responsibility under U.S. Generally Accepted Auditing Standards, Government Auditing Standards, and the Uniform Guidance
As stated in our audit engagement letter signed by the Finance Director dated May 16, 2025 (attached), including fiscal year ending June 30, 2025, our responsibility as described by professional standards is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.
As part of our audit, we will consider the internal control if the City. Such considerations are solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will also perform tests of the City’s compliance with certain provisions of laws, regulations, contracts and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit.
In planning and performing our audit, we will consider the City’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We will also consider internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test report on internal control over compliance in accordance with the Uniform Guidance.
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we will perform tests of its compliance with certain provisions of laws, regulations, contracts and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit.
5.2.a
Packet Pg. 12
Attachment: FY25 Letter from Maze & Associates (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial statements. Our responsibility with respect to management’s discussion and analysis and the pension and OPEB schedules, which supplements the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI will not be audited and, because of the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance, we will not express an opinion or provide any assurance on the RSI.
We have been engaged to report on the supplementary information, such as combining statements, individual fund statements and budgetary schedules, which accompany the financial statements but are not RSI. Our responsibility for this supplementary information, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have not been engaged to report on the introductory section and statistical section, which accompany the financial statements but are not RSI. Our responsibility with respect to this other information in documents containing the audited financial statements and auditor’s report does not extend beyond the financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information will not be audited and we will not express an opinion or provide any assurance on it.
Planned Scope and Other
The audit scope is included in the audit contract approved by City Council. It defines what an audit of the City’s financial statements is and discusses internal control, fraud considerations and management responsibilities for data contained in financial statements. It is the standard used when a financial statement audit is to be conducted. This letter is a clarification of the audit process contemplated in the contract we have entered into with the City pursuant to the Council’s approval.
Management Representations
We will request representations from management that data and assertions provided are complete and accurate. We rely primarily on our audit verification tests and procedures, however, management assertions and judgments unavoidably affect financial data.
Fraud Risk Considerations
Audit standards require us to have discussions with our clients to discuss both the potential for and any occurrences of fraud and the impact on financial statements. “Fraud” is defined as an intentional act that results in a material misstatement in financial statements that are subject to audit. In this case, fraud includes two concepts. The first is fraudulent financial reporting, including misapplication of accounting principles, the omission of data or disclosures, fictitious transactions or sham transactions and concealment of relevant data. The second concept is that of misappropriations of assets, including theft, its concealment and conversion to cash.
In accordance with audit standards, we met with management and asked:
a. Is management aware of known instances of fraud or allegations of suspected fraud? b. Are there areas management believes are “Susceptible to Fraud”? i. Areas presumed susceptible to fraud under audit standards:
i. Improper revenue recognition
ii. Management override of Internal Control
5.2.a
Packet Pg. 13
Attachment: FY25 Letter from Maze & Associates (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Audit Timing
We have met with City staff and agreed to the following schedule:
• The interim phase of the audit (internal control review and tests) was completed the week of June 9, 2025.
• The final phase of the audit (substantive tests and financial report preparation) is scheduled for the weeks of October 13 and 20, 2025.
• Our plan is to finalize the reports by the end of December.
Communicating the Audit Process
We discussed the above topics with staff and wish to provide you with an opportunity to participate in the audit process prior to its completion. We ask you to please respond to the following questions related to the City and its component units and if the answer to any question is “yes,” please provide an explanation:
a. Are you aware of any instances of fraud or allegations of suspected fraud? b. Are there any areas you believe are “Susceptible to Fraud”? c. Are you aware of any possible or actual noncompliance or waste or abuse of programs and controls?
d. Are you aware of any related-party transactions? (Transactions between the City or its component units and elected or appointed officials)
If you have any questions or concerns, please do not hesitate to contact me directly at [email protected] or call my office at (925) 228-2800.
Sincerely,
Vikki C. Rodriguez-Valerga, CPA
Audit Partner/Shareholder
Maze & Associates
5.2.a
Packet Pg. 14
Attachment: FY25 Letter from Maze & Associates (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) May 16, 2025
City of San Ramon
Attn: Jennifer Wakeman
Finance Director
7000 Bollinger Canyon Road
San Ramon, CA 94583
Dear Jennifer:
We are pleased to confirm our understanding of the services we are to provide for the City of San Ramon as of and for the year ended June 30, 2025.
Audit Scope and Objectives
The services we have been engaged to provide are outlined below, but we are also available to provide additional services at your request:
1. Audit of the Basic Financial Statements, and preparation of Memorandum on Internal Control, assistance with the preparation of the Annual Comprehensive Financial Report, and review of Management’s Discussion & Analysis.
2. Perform procedures and issue agreed upon procedures opinion to comply with GANN (Proposition 111 Appropriation) Limit increment requirements.
3. Testing one major program for compliance with the Single Audit Act and applicable laws and regulations and issuance of our report thereon (if required).
4. Tests of compliance for Metropolitan Transportation Commission/Transportation Development Act Programs and preparation of required reports (if required).
5. Preparation of the City’s Annual Report of Financial Transactions (Controller’s Report) and issuance of a compilation report. (See Compilation Attachment for Our Responsibilities and Your Responsibilities related to the compilation report)
Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis, to supplement the City’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
5.2.b
Packet Pg. 15
Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) If the City’s financial statements are accompanied by supplementary information other than RSI, we will subject the supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole, in a report combined with our auditor’s report on the financial statements.
In connection with our audit of the basic financial statements, we will read the other information accompanying the financial statements and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditor’s report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP; and report on the fairness of the accompanying supplementary information when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance, but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on:
• Internal control over financial reporting and compliance with the provisions of laws, regulations, contracts and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards.
• Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance).
Auditor’s Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of the accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit.
We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. Because the determination of waste and abuse is subjective, Governmental Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse.
5.2.b
Packet Pg. 16
Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, an unavoidable risk exists that some material misstatements or noncompliance may exist and not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors.
We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for a reasonable period of time.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of physical existence of inventories, and direct confirmation of cash, investments and certain other assets and liabilities by correspondence with selected customers, funding sources, creditors and financial institutions. We will also request written representations from your attorneys as part of the engagement, and they may bill the City for responding to this inquiry.
We may from time to time, and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers.
Our audit of the financial statements does not relieve you of your responsibilities.
Audit Procedures - Internal Control
We will obtain an understanding of the City and its environment, including the system of internal control, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance.
5.2.b
Packet Pg. 17
Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and the Council internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance.
Audit Procedures - Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the City has complied with federal statutes, regulations and the terms and conditions of federal awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each major program. For federal programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement, identifies as being subject to audit. The purpose of these procedures will be to express an opinion on the City’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.
Agreed-Upon Procedures
The City agrees to the procedures related to the Appropriations Limit Worksheet (Worksheet) for the year ended June 30, 2025, as suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, and will acknowledge that the procedures to be performed are appropriate for the intended purpose of the engagement, which is to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. Our engagement to apply agreed-upon procedures to the Worksheet will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we obtain your written agreement to the procedures to be applied and your acknowledgement that those procedures are appropriate for the intended purpose of the engagement. The agreement and acknowledgement are contained within this letter. A refusal to provide such agreement and acknowledgement will result in our withdrawal from the engagement. We make no representation that the procedures we will perform are appropriate for the intended purpose of the engagement or for any other purpose.
Because the agreed-upon procedures do not constitute an examination or review, we will not express an opinion or conclusion on the Worksheet. In addition, we have no obligation to perform any procedures beyond those to which you agree.
We will issue a written report upon completion of our engagement that lists the procedures performed and our findings. Our report will be addressed to the City. If we encounter restrictions in performing our procedures, we will discuss the matter with you. If we determine the restrictions are appropriate, we will disclose the restrictions in our report. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
There may exist circumstances that, in our professional judgement, will require we withdraw from the engagement. Such circumstances include the following:
• You refuse to provide written agreement to the procedures and acknowledge that they are appropriate for the intended purpose of the engagement.
• You fail to provide requested written representations, or we conclude that there is sufficient doubt about the competence, integrity, ethical values or diligence of those providing the written representations, or we conclude that the written representations provided are otherwise not reliable.
5.2.b
Packet Pg. 18
Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) • We determine that the description of the procedures performed or the corresponding findings are misleading in the circumstances of the engagement.
• We determine that restrictions on the performance of procedures are not appropriate.
An agreed-upon procedures engagement is not designed to detect instances of fraud or noncompliance with laws or regulations; however, should any such matters come to our attention, we will communicate them in accordance with professional standards and applicable law. In addition, if, in connection with this engagement, matters come to our attention that contradict that the Worksheet is in accordance with Article XIIIB of the California Constitution, we will communicate such matters to you.
You agree to the procedures to be performed and acknowledge that they are appropriate for the intended purpose of the engagement.
You are responsible for the Worksheet and that it is in accordance with Article XIIIB of the California Constitution. In addition, you are responsible for providing us with (1) access to all information of which you are aware that is relevant to the performance of the agreed-upon procedures on the subject matter, (2) additional information that we may request for the purpose of performing the agreed-upon procedures, and (3) unrestricted access to persons within the entity from whom we determine it necessary to obtain evidence relating to performing those procedures.
At the conclusion of our engagement, we will require certain written representations in the form of a representation letter from management that, among other things, will confirm management’s responsibility for the presentation of the Worksheet in accordance with Article XIIIB of the California Constitution.
Responsibilities of Management for the Financial Statements and Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responsibility for (1) designing, implementing, establishing and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. Management is also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, and all accompanying information in conformity with GAAP; and for compliance with applicable laws and regulations (including federal statutes) and the provisions of contracts and grant agreements (including award agreements). Management’s responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information.
Management is also responsible for making drafts of financial statements, schedule of expenditures of federal awards, all financial records and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers) and for the evaluation of whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for the 12 months after the financial statement date or shortly thereafter (for example, within an additional three months if currently known). Management is also responsible for providing us with (1) access to all information of which management is aware is relevant to the preparation and fair presentation of the financial statements, including identification of all related parties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional information that we may request for the purpose of the audit; and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. We understand that the City will provide us with the Closing Checklist information required for our audit and that the City is responsible for the accuracy and completeness of that information. At the conclusion of our audit, we will require certain written representations from management about responsibilities for the financial statements; schedule of expenditures of federal awards; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and related matters.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Management’s responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit as a whole.
Management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the City involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Management’s responsibilities include informing us of its knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, grantors, regulators, or others. In addition, management is responsible for identifying and ensuring that it complies with applicable laws, regulations, contracts, agreements and grants. Management is also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts and grant agreements that we report. Additionally, as required by the Uniform Guidance, it is management’s responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan. The summary schedule of prior audit findings must be made available for our review.
With regard to including the auditor’s report in an exempt offering document, you agree that the aforementioned auditor’s report, or reference to Maze & Associates, will not be included in any such offering document without our prior permission or consent. Any agreement to perform work in connection with an exempt offering document, including an agreement to provide permission or consent will be a separate engagement. With regard to an exempt offering document with which Maze & Associates is not involved, you agree to clearly indicate in the exempt offering document that Maze & Associates is not involved with the contents of such offering document.
Management is also responsible for identifying all federal awards received and understanding and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal awards (including notes and noncash assistance received, and COVID-19-related concepts, such as lost revenues, if applicable) in conformity with the Uniform Guidance. Management agrees to include our report on the schedule of expenditures of federal awards in any document that contains and indicates that we have reported on the schedule of expenditures of federal awards. Management also agrees to include the audited financial statements with any presentation of the schedule of expenditures of federal awards that includes our report thereon.
Management’s responsibilities include acknowledging to us in the written representation letter that: (1) you are responsible for presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance; (2) you believe the schedule of expenditures of federal awards, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal awards.
Management is also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with GAAP. Management agrees to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information.
Management also agrees to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Management’s responsibilities include acknowledging to us in the representation letter that: (1) management is responsible for presentation of the supplementary information in accordance with GAAP; (2) that management believes the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) management has disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Management is responsible for establishing and maintaining of a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Scope and Objective section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits or other studies. Management is also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information.
With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.
In connection with this engagement, we may communicate with you or others via email transmission. As emails can be intercepted and read, disclosed, or otherwise communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, including any consequential, incidental, direct, indirect or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.
Other Services
We will also assist in preparing the financial statements, schedule of expenditures of federal awards, and related notes in conformity with GAAP and the Uniform Guidance based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statements, schedule of expenditures of federal awards, and the related notes services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management’s responsibilities.
Management agrees to assume all management responsibilities relating to the financial statements, schedule of expenditures of federal awards, related notes, and any other nonaudit services we provide. Management will be required to acknowledge in the management representation letter our assistance with the preparation of the financial statements, schedule of expenditures of federal awards and related notes and any other nonaudit services we provide and that you have reviewed and approved the financial statements, schedule of expenditures of federal awards and related notes and any other nonaudit services we provide prior to their issuance and have accepted responsibility for them. Further, management agrees to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.
Engagement Administration, Fees, and Other
At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management’s responsibility to electronically submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditor’s reports, and corrective action plan) along with the Data Collection Form to the Federal Audit Clearinghouse. We will coordinate with you the electronic submission and certification. If applicable, we will provide copies of our report to you to include with the reporting package you will submit to pass-through entities.
The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ reports or nine months after the end of the audit period.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) We will provide copies of our reports to the City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection.
The audit documentation for this engagement is our property and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a federal agency providing direct or indirect funding, or the U.S.
Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Maze & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies.
We will retain audit documentation for this engagement for seven years after the report release date pursuant to state regulations. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.
As an attest client, we cannot retain your documents on your behalf. This is in accordance with ET 1.295.143 of the AICPA Code of Professional Conduct. The City is responsible for maintaining its own data and records.
SharePoint/OneDrive are used solely to transmit data or as a method of exchanging information and is not intended to store the City’s information. The City is responsible for downloading any deliverables and other records from the SharePoint/OneDrive that it wishes to retain for its own records at the completion of the engagement. For multi-year engagements, such downloading should occur annually.
Upon completion of the engagement, data and other content will either be removed from SharePoint/OneDrive or become unavailable to the City within a reasonable timeframe (generally one week after issuance of our report). For multi-year engagements, completion of the engagement occurs when the deliverables are completed for that year.
We expect to begin our audit in June 2025 and to issue our reports no later than December 31, 2025. Vikki Rodriguez is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them.
To ensure that Maze & Associates’ independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.
Our fees for these services are billed based on our contract with the City. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if the City’s account becomes thirty days or more overdue and may not be resumed until the City’s account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination.
These fees are based on anticipated cooperation from City personnel, the completion of schedules and data requested on our Checklists by City personnel, preparation of audit confirmations we request by City personnel, location of any documents selected by us for testing, and the assumption that there will be no unexpected increases in work scope, such as new Single Audit Act major programs, new debt issues, etc., or delays which are beyond our control, as discussed on the Fees Attachment to this letter. If significant additional time is necessary, we will discuss it with City management and arrive at a new fee before we incur any additional costs.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) We understand you will provide us with basic workspace sufficient to accommodate the audit team assigned to your audit. We understand the basic workspace will be equipped with a telephone and direct Internet access, preferably a temporary network outside of your network, a public IP address and a wired connection. We understand you will also provide us with access to a fax machine and read only access to your general ledger system.
You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter.
Our most recent peer review report accompanies this letter.
Reporting
We will issue a written report upon completion of our audit of the City’s financial statements, which, if the financial statements include information other than RSI and supplemental information, will also address other information in accordance with AU-C 720, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports. Our reports will be addressed to the City Council. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasisof-matter or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with City management in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or may withdraw from this engagement.
The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will state that (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control and compliance. The Uniform Guidance report on internal control over compliance will state that the purpose of the report on internal control over compliance is solely to describe the scope of testing of internal control over compliance and results of that testing based on the requirements of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose.
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We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign and return a full copy of this letter to us.
Maze & Associates
RESPONSE:
This letter correctly sets forth the understanding of the City.
By: _______________________________________
Title: __Finance Director________________________
Date: ___6/6/25_______________________________
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) City of San Ramon
Engagement Letter
Fees Attachment
June 30, 2025
Our fees for the work described in the attached engagement letter will be as follows, unless they are adjusted for one or more of the items below.
Item Fees
City Audit, ACFR, and Related Reports $60,800
Gann Limit Agreed Upon Procedures 1,000
Single Audit Act Report
(per tested program) 5,600
MTC/TDA Audit (per tested project) 2,500
Annual Report of Financial Transactions to
the State Controller 3,000
Total $72,900
2025 Fees – Our fees are based on our proposal dated March 31, 2023.
Our price includes “print to PDF” versions of all reports issued. Due to the significant increase in the cost of paper products, our price also includes up to 10 bound copies of each report, except for the ACFR. If you require additional bound copies, we will provide a cost estimate before proceeding.
Web-Ready PDFs of Reports – print to PDF copies of the above reports are provided at no charge. These report copies are high quality, but do not include any bookmarks or hyperlinks and the file sizes may be large, depending on the length of the report. If you would like a higher quality PDF file with bookmarks and hyperlinks in the table of contents, we have listed the option below. Please contact us if you would like us to prepare the following option for your report, or if you’d like a quote for the preparation of a file for another type of report. In addition, should you decide on the Web PDF option, please let us know at least a week in advance.
1. WEB PDF Annual Comprehensive Financial Report - $875 Additional Services - The above fees are for audit and assurance services described in the accompanying engagement letter. They do not include fees for assisting with closing the books nor providing other accounting services. Should the City require assistance beyond audit services we will provide a cost estimate before proceeding.
Report Finalization - Our fee is based on our understanding that all information and materials necessary to finalize all our reports will be provided to us before we complete our year-end fieldwork in your offices. In the case of Annual Comprehensive Financial Reports, this includes all the materials and information required to print the Annual Comprehensive Financial Report. As in the past, we will provide final drafts of all our reports before we leave your offices. We will schedule a Final Changes Meeting with you for a date no more than two weeks after we complete our fieldwork. At that meeting, we will finalize all reports for printing. After that date, report changes you make and changes required because information was not received timely will be billed at our normal hourly rates.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Post-Closing Client Adjusting Entries - The first step in our year-end audit is the preparation of financial statement drafts from your final closing trial balance. That means any entries you make after handing us your closing trial balance must be handled as audit adjustments, or in extreme cases, by re-inputting the entire trial balance, even if the amounts are immaterial. If you make such entries and the amounts are in fact immaterial, we will bill you for the costs of the adjustments or re-input at our normal hourly rates.
Recurring Audit Adjustments - Each year we include the prior year’s adjusting entries as new steps in our Closing Checklist, so that you can incorporate these entries in your closing. If we are required to continue to make these same adjustments as part of this year’s audit, we will bill for this service at our normal hourly rates.
Annual Comprehensive Financial Report Printing - As a convenience, we can send your Annual Comprehensive Financial Report to a printer we use locally. We do not charge for delivering camera-ready print masters to any printer of your choice and delivering the Annual Comprehensive Financial Reports or BFS to you.
However, we will bill you for any additional time spent on the Annual Comprehensive Financial Report printing at our normal hourly rates. This includes changes after the report goes to the printer, obtaining, reviewing and / or delivering printer’s proofs, etc.
We can also help with Annual Comprehensive Financial Report design, including covers, tabs, dividers, color choices, bindings, organization charts, maps, etc. We will estimate these costs for you before proceeding.
Single Audit Act - Additional programs will each cost $5,600 in 2025, unless there are other factors which add to that program’s cost; in that case, we will provide a cost estimate before proceeding.
Grant Programs Requiring Separate Audit - Grant programs requiring separate audits represent a significant increase in work scope, and fees for these audits vary based on the grant requirements. If you wish us to determine and identify which programs are subject to audit, we will bill you for that time at our normal hourly rates.
Changes in City Personnel - Our experience is that changes and /or reductions in Finance Department staff can have a pronounced impact on costs of performing the audit. If such changes occur, we will meet with you to assess their impact and arrive at a new fee before we begin the next phase of our work. However, we reserve the right to revisit this subject at the conclusion of the audit, based on your actual performance and our actual costs.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) City of San Ramon
Engagement Letter
Compilation Attachment
June 30, 2025
The services we have been engaged to provide are outlined below. • Prepare and Electronically File the following Reports for the City:
o Annual Report of Financial Transactions for the City
We will prepare and electronically file the Annual Financial Transactions Report(s) for the year ended June 30, 2025 in accordance with the requirements of Government Code Section 53891 and the California State Controller’s Office’s Cities or Special Districts, as applicable, Financial Transactions Report Instructions for the year ended June 30, 2025 and perform a compilation engagement with respect to the Financial Transactions Report. City staff will provide us with a detailed trial balance and any supporting general ledger reports or schedules required to prepare the Report(s).
The supplementary information accompanying the Report(s), including the U.S. Bureau of the Census Survey and any others required by the California State Controller’s Office, will be presented for purposes of additional analysis. Such supplementary information is the responsibility of management and will not be subject to our compilation engagement.
Our Responsibilities
The objective of our engagement is to1. prepare the Report(s) in accordance with the format prescribed by the California State Controller’s Office based on information provided by you and is not intended to be a presentation in accordance with accounting principles generally accepted in the United States of America based on information provided by you, and
2. apply accounting and financial reporting expertise to assist you in the presentation of the Report(s) without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the Report(s) in order for them to be in accordance with the format prescribed by the California State Controller’s Office.
We will conduct our compilation engagement in accordance with Statements on Standards for Accounting and Review Services (SSARS) promulgated by the Accounting and Review Services Committee of the AICPA and comply with applicable professional standards, including the AICPA's Code of Professional Conduct, and its ethical principles of integrity, objectivity, professional competence, and due care, when performing the preparation and electronic filing of the Report(s), and performing the compilation engagement.
We are not required to, and will not, verify the accuracy or completeness of the information you will provide to us for the engagement or otherwise gather evidence for the purpose of expressing an opinion or a conclusion.
Accordingly, we will not express an opinion, a conclusion, nor provide any assurance on the Report(s).
Our engagement cannot be relied upon to identify or disclose any Report misstatements, including those caused by fraud or error, or to identify or disclose any wrongdoing within the entity or noncompliance with laws and regulations.
We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities since taking such action would impair our independence.
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report) Your Responsibilities
The engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to prepare the Report(s) in accordance with the format prescribed by the California State Controller’s Office and assist you in the presentation of the Report(s) in accordance with the format prescribed by the California State Controller’s Office. You have the following overall responsibilities that are fundamental to our undertaking the engagement in accordance with SSARS:
1. The selection of the format prescribed by the California State Controller’s Office as the financial reporting framework to be applied in the preparation of the Report(s).
2. The preparation and fair presentation of the Report(s) in accordance with the format prescribed by the California State Controller’s Office.
3. The design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the Report(s) that are free from material misstatement, whether due to fraud or error.
4. The prevention and detection of fraud.
5. To ensure that the City complies with the laws and regulations applicable to its activities.
6. The accuracy and completeness of the records, documents, explanations, and other information, including significant judgments, you provide to us for the engagement.
7. To provide us witha. access to all information of which you are aware that is relevant to the fair presentation of the Report(s), such as records, documentation, and other matters. b. additional information that we may request from you for the purpose of the compilation engagement.
c. unrestricted access to persons within the City of whom we determine it necessary to make inquiries.
You are also responsible for all management decisions and responsibilities and for designating an individual with suitable skills, knowledge, and experience to oversee our preparation and electronic filing of your Report(s). You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services.
Our Report
As part of our engagement, we will issue a report that will state that we did not audit or review the Report(s) and that, accordingly, we do not express an opinion, a conclusion, or provide any assurance on it(them). There may be circumstances in which the Report(s) differ from the expected form and content. If, for any reason, we are unable to complete the compilation of your Report(s), we will not issue a report on such Report(s) as a result of this engagement.
Our report will disclose that the Report(s) are presented in a prescribed form in accordance with the requirements of the California State Controller’s Office and are not intended to be a presentation in accordance with accounting principles generally accepted in the United States of America.
You agree to include our accountant's compilation report in any document containing the Report(s) that indicates we have performed a compilation engagement on such Report(s) and, prior to inclusion of the report, to obtain our permission to do so.
Grace Zhang is the engagement partner and is responsible for supervising the compilation portion of the engagement and signing the report or authorizing another individual to sign it.
5.2.b
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report)
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report)
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Attachment: FY25 Audit Engagement Letter (4784 : SAS Communications for the FY25 Annual Comprehensive Financial Report)