To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, FINANCE DIRECTOR
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APPROVE THE ANNUAL AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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EXECUTIVE SUMMARY
The City’s independent auditors, CliftonLarsonAllen, LLP (CLA), have completed their annual audit of the City’s fiscal activities for the Fiscal Year ended June 30, 2024. The resulting reports are listed below. We are pleased to report that the City received an unmodified opinion, which is the best opinion the City can receive. This means that the auditor certifies that the City’s financial statements are fairly presented in all material respects and are in conformity with Generally Accepted Accounting Principles (GAAP) and Government Accounting Standards Board (GASB) requirements.
The annual audit reports are as follows:
• Annual Comprehensive Financial Report (ACFR)
• Inmate Trust Fund Financial Report
• Audit Communication Letter
• Single Audit
The City’s fiscal activities are discussed in detail in the Transmittal Letter and the Management’s Discussion and Analysis (MD&A) sections of the ACFR. The attached documents do not include the MD&A, as staff anticipates providing a draft including this information as supplemental attachment to the September 16, 2025 Agenda.
The Budget and Finance Commission reviewed the draft ACFR at its September 11, 2025 meeting. At the meeting, CLA’s Engagement Partner (the lead partner on the City’s audit) presented audit results and responded to questions. The Commission moved to receive and file the report with no comments.
On the afternoon of September 16, 2025, CLA’s representative will present the ACFR and overall audit results to the City’s Audit Committee and will respond to questions.
BACKGROUND
The ACFR reflects the financial position of the City and its component units. The primary purpose of the report, as defined by the City Charter, is to inform the Mayor and City Council of all financial and administrative activities of the previous fiscal year. The attached report is a draft. Staff plans to submit the final revised document as a supplemental attachment to the September 16, 2025 Agenda.
An audit is also required to obtain the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) and is often a requirement for grants or federal awards. The City has received this award for the past 31 years.
The Inmate Trust Fund Financial Statement is prepared and submitted as required by the state penal code. This fund accounts for the money received by the City from the telephone company for providing pay telephone service to City jail inmates. Monies received are to be used solely for the benefit of the inmates. Staff plans to include this report as a supplemental attachment to the September 16, 2025 Agenda.
The Audit Communication Letter summarizes significant changes in accounting practices required by newly applicable accounting standards, describes sensitive accounting estimates which the auditors found reasonable, lists the corrected misstatements identified during the audit, and makes other similar disclosures. Staff plans to include this report as a supplemental attachment to the September 16, 2025 Agenda.
The Single Audit Report is required for all federal and state funded programs. These programs are audited in conformity with the provisions of the Single Audit Act of 1984 and OMB Circular A-133, Audits of State and Local Governments. Staff anticipates completing this report by the end of the month.
Staff recommends the City Council approve the City’s Annual Audited Financial Reports for the Fiscal Year ended June 30, 2024.
COORDINATION
The reports have been coordinated with the City’s independent auditors and all City Departments.
FISCAL IMPACT
The total cost for this activity is included in the Financial Services Department’s annual operating budget and is part of the Department’s annual work program.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Letter - Audit Transmittal Letter
• Draft Report - Annual Comprehensive Financial Report (ACFR), Fiscal Year Ended June 30, 2024