1 Vernice Hankins
From: Tricia Crane <[email protected]>
Sent: Monday, April 10, 2023 10:27 PM
To: councilmtgitems; Gleam Davis; Oscar de la Torre; Lana Negrete; Christine Parra; Phil Brock; Jesse Zwick; Caroline Torosis
Subject: Council Agenda item 5-C (2) - Annual Comprehensive Financial Report to the Audit Subcommittee
EXTERNAL
To: City Council
From: Tricia Crane
Re: Council meeting Agenda item 5-C (2) - Presentation of the Annual Comprehensive Financial Report (ACFR) to the Audit Subcommittee
April 11, 2023
Dear Council Members,
I strongly urge you to vote to accept in full the recommendations of the Audit Subcommittee regarding the need for increased disclosure and transparency of the Notes Receivable.
In the March 22, 2023 Audit Subcommittee meeting, there was a discussion that the existing Annual Comprehensive Financial Report disclosures omit at least $177 million in Notes Receivable that are in place but that have been written off, with allowances equal to the entire value of the notes.
This seems to be of significance since it was discussed in the meeting that the current financial statement disclosures total $208 million. Even the existing disclosure is confusing since they show only the amounts net of write-offs. The total amount of the notes is not disclosed.
Given the significance of the value of the existing loans, both disclosed and not disclosed, and the anticipated increase in this kind of activity in the future, I request that the Council give direction that these financial transactions be made much more transparent and accessible to the public as outlined by the recommendations of the Audit Subcommittee.
Respectfully,
Tricia Crane
Item 5.C
04/11/23
1 of 1 Item 5.C
04/11/23