DATE: January 22, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR ENDING JUNE 30, 2024
RECOMMENDATION
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Staff recommends that the City Council accept the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024.
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BACKGROUND AND ANALYSIS
The Annual Comprehensive Financial Report (ACFR) is a set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). It must be audited by an independent auditor using generally accepted government auditing standards. The City's independent auditor, Lance, Soll & Lunghard, LLP, has reviewed and provided an unqualified opinion on the accuracy of the City's financial statements.
On December 19, 2006, the Auditing Standards Board (ASB), the senior technical committee designated by the American Institute of Certified Public Accounts (AICPA) to issue auditing, attestation and quality control statements, standards and guidance to Certified Public Accounts for non-public company audits, issued the Statement of Auditing Standards (SAS) No. 114. SAS No. 114 emphasizes the importance of two-way communication between the independent auditors and those responsible for overseeing the direction of the organization as a whole (Charged with Governance) as well as the people responsible for the financial reports, policies, objectives and decision-making (Management). This SAS provides guidelines to the auditors as to which matters should be communicated to those charged with governance and management. As part of the two-way communication with the governing body, the ACFR is submitted to the City Council via the formalized agenda process.
"Net position" represents the simplest test of financial health for the City, indicating the excess (or deficit...
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