To: AUDIT COMMITTEE
From: STEPHANIE MEYER, FINANCE DIRECTOR
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DISCUSSION AND POSSIBLE ACTION REGARDING THE ANNUAL 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. A CLA representative will present audit results to the members of the Audit Committee. The report includes a draft of the Annual Comprehensive Financial Report (ACFR) for the Audit Committee’s review and discussion, with additional reports anticipated as supplemental material prior to the meeting. Staff will also present the ACFR and additional listed reports to the City Council at the September 16, 2025 meeting.
• Annual Comprehensive Financial Report (ACFR)
• Inmate Trust Fund Financial Statement
• Audit Communication Letter
The City’s Single Audit Report for FY 2023-24 is also part of annual audit reports. This is in process, with estimated completion at the end of the month.
The CLA Engagement Partner (lead for the City’s audit) presented the draft ACFR report at the Budget and Finance Commission meeting on September 11, 2025 and responded to questions. The Commission moved to receive and file with no additional comments.
Staff will subsequently submit the ACFR to the Government Finance Officers Association (GFOA) for consideration in the Excellence in Financial Reporting program along with a request for extension of review based on the extraordinary circumstances contributing to the delay in finalizing the report: the introduction of a new audit firm and significant staff turnover.
BACKGROUND
The FY 2023-24 financial reports are briefly described below:
The ACFR is a comprehensive document reflecting the financial position of the City and its component units for the prior fiscal year. The primary purpose of this report, as defined by the City Charter, is to inform Mayor and City Council of all financial and administrative activities of the previous fiscal year.
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.
The Audit Communication Letter summarizes significant changes in accounting practices which were 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.
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 the OMB Circular A-133, Audits of State and Local Governments.
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 portion of the FY 2023-24 Adopted Budget and is part of the department’s annual work program.
ATTACHMENTS
1. Annual Comprehensive Financial Report (ACFR) for year ended June 30, 2024 (Draft)
2. PowerPoint Presentation
3. Inmate Trust Fund Financial Statement for year ended June 30, 2023
4. Audit Communication Letter