2023 Financial AuditPresented by:Brandon Young, CPA, PartnerJanuary 23, 2024 Your LSL Team
Christian Townes, CPAPartnerKeili GonzalezSupervisorBrandon Young, CPAPartner
Scope of Engagement•LSL has been engaged by the City of Vallejo to perform the following procedures:•Independentfinancial statement audit for the year ended June 30, 2023, in accordance with generally accepted auditing standards and Government Auditing Standards•Single audit over the federal award programs for the year ended June 30, 2023, in accordance with the federal Uniform Guidance.•Compliance audits on Measure P & Measure B/V•Audits on Housing Authority and Transportation Development Act (TDA) •Interim Fieldwork •May 2023•Examined internal controls•Provided feedback to management•Performed our audit risk assessment•Planned year-end audit procedures to respond to risk •Year-End Fieldwork•October/November 2023•Detailed testing of account balances and transactions•Compliance testing with laws, regulations, grant agreements, contracts & Measure P , B/V•Single Audit planning•Other procedures necessary to obtain sufficient, appropriate audit evidence Scope of Engagement
Results of Audit -ACFR•We issued an unmodified auditor’s opinion on the financial statements.•Financial statements are accurate and reliable as of June 30, 2023.•We issued the Report on Internal Control and Compliance•Noted 2 significant deficiencies in internal control.•AP Accrual•Inventory Valuation•No material weaknesses in internal control noted.•No material noncompliance with laws, regulations, grants, etc. noted.
Compilation of ACFR•Introductory Section•Transmittal Letter•Org Charts & GFOA Award•Financial Section•MD&A•Basic Statements•Footnotes•RSI & Supplementary Information•Statistical Section Results of Audit –Measure B/V, P•We issued an unmodified compliance opinion on the financial statements.•In all material respects City complied with compliance requirements referred to in specific Ordinances and expenditure direction approved by Council•We issued the Report on Internal Control ocerCompliance•No significant deficiencies in internal control noted•No material weaknesses in internal control noted.
Changes from Prior Year•During the fiscal year ended June 30, 2023, City changed accounting principles related to the accounting for subscription-based information technology arrangements (GASB 96).•GASB 96 requires that a subscription asset and subscription liability be recognized. This resulted in:•A subscription asset in the amount of $2,122,454, at June 30, 2023.•A subscription liability in the amount of $1,955,346, at June 30, 2023.
Financial Highlights•General Fund Balance
•Net position increased $35.6 million during the year to $374.4 million.•Capital assets decreased $8.8 million from the prior year.•Net pension liability increased $103.5 million from the prior year.•OPEB liability decreased $1.6 million from the prior year
Questions
[email protected]
CALIFORNIA: Brea | Santa Ana | Laguna Hills | SacramentoTEXAS: The Woodlands Special Events Sponsorship Grant Cycle 2023-24Shelee Loughmiller Community and Volunteer Coordinator City Manager’s Office Building a Vibrant, Safe, ProsperousVallejo Community•Special Events do not take a specific form but focus on highlighting the local area, enhancing economic activity and building collaboration and bonds within the community.•Community Celebrations are:•Free to the public•Have clearly defined success metrics and socio-economic impact.
Signature Events –Whole Community FocusedTraditionally, the City of Vallejo has contracted with event producers to deliver 4 annual events, described as “Signature Events”:1) 4thof July Parade2) Mad Hatter 4thof July Festival3) Waterfront Weekend4) Mad Hatter Holiday Parade and Festival
Cultural Events Celebrating Vallejo’s Diversity As the most diverse city in the USA, Vallejo honors the cultural heritage of our residents.Festivals supported in past years include:•Juneteenth•Pista Sa Nayon•PatriasFiesta/Dios De Los Muertos•7 Generations Intertribal PowWow•Kwanzaa 2023-24 Grant Applications•The grant application period opened on August 17, 2023, due no later than September 28, 2023 at 12:00pm.•Invitations to apply were emailed, and hard copies were sent to 49 event producers that pulled event permits in 2021 –2022.•Grant requirements are modeled on Best Practices in Fairfield, Walnut Creek, Atlanta, Chicago, and San Diego.•19 Applications were received, 16 organizations qualified and are recommended to receive a total of $202,000. 2023-24 Special Event Grant Award Recommendation
CONTACT(S)
Michael Malone, City [email protected] Loughmiller, Community & Volunteer [email protected]
UPDATE -PUBLIC SAFETY STAFFING EMERGENCY
Jason Ta, Interim Chief of PoliceJanuary 23, 2024
1 STATUS OF PHASES•Partially Implemented•Alarm Ordinance –awaiting direction from Council•“Condition Blue” in process–If the number of CFS pending reaches a pre-determined number, officers will only respond to priority 1 and high-level priority 2 calls•Highest Calls for Service (CFS) Phase #1 Service Model Reduction
2 -Alarm activation-Mental distress-Suspicious persons/vehicles-Trespassing-Traffic-related offenses Phase #2 Rotation of Officers to Patrol Shifts•CompletedPhase #3 Collapsing Traffic & Detective Divisions•Traffic Division collapsed ( July 2023)•Detectives are rotating to patrol weeklyPhase #4 Modifying Patrol Shifts to 12-hours or Another Staffing Model•VPOAnot voluntarily changing to 12-hour shifts 3 •VPOA has an executed MOU–Working on staffing models and possibilities–First meeting with the Sheriff’s Office was on December 4th–Next meeting will occur in early February Outside Assistance
4 CURRENT STAFFING NUMBERSTotal Sworn Staffing7272Modified Duty Officers22Off on Worker’s Comp.1011Sworn Working Full Duty6059 Anticipated Officers Resigning11Officers Starting /Final Offers015 Officers Working Patrol3231Supervisors Working Patrol (Sgts)55 1-9-24Current
RECRUITMENT & RETENTION(Stephanie Sifuentes, HR Director)Police Officer Applications 6 12147869891724
77 4821352201017
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01020304050607080
1/24/20241/7/202412/19/202312/12/202311/28/202311/14/202310/24/202310/10/20239/26/20239/12/20238/29/2023RecruitEntryLateral Current Lookback PeriodJan. 8th–Jan. 20th
Police Officer Backgrounds Since 7/13/2023
7 24
7 1 1
18 12
1 2
20 13
2 4
18 16
2 5
14 18
4 5
14 21
4 5
15 24
4 5
10 27
4 7
21 27
4 7
0 5
10 15
20 25
30 In processNon-SelectWithdrewHired9/26/202310/10/202310/24/202311/14/202311/28/202312/12/202312/19/20231/9/20241/23/2024 •6 Officers currently in police academies–4 will graduate in April 2024–1 will graduate in June 2024–1 will graduate in July 2024 Police Academy
8 Recruitment Efforts•WSTB (physical assessment) scheduled for 02/22/2024•Pellet B (written test) scheduled for 2/24/2024
CONTACT(S)
Jason Ta, Interim Chief of Police
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