This item is on the Council's agenda to receive the Annual Comprehensive Financial Report for the fiscal year ending June 30, 2021 (Fiscal Year 2020-2021). The Financial Report includes the City's audited basic financial statements and the independent auditor's report. It also includes a narrative on the City’s financial activities known as the Management Discussion and Analysis and a statistical section pertaining to financial trends, revenue capacity, debt capacity, demographic and economic information and operating information.
State law requires that an independent certified public accountant annually examine the accounts and fiscal affairs of all municipal entities. The City retained Chavan and Associates, LLP to audit the City’s financial statements in accordance with auditing standards generally accepted in the United States, including financial auditing standards issued by the Comptroller General of the United States. The purpose of the audit is to determine if the City’s financial statements are misstated or misrepresented based on either fraud or error. Chavan and Associates, LLP, has issued an unmodified opinion that the financial statements for the year ended June 30, 2021, are fairly presented in conformity with generally accepted accounting principles (GAAP).
As part of the audit process, Chavan and Associates, LLP, also test the City’s internal controls over financial reporting and compliance and reports on the outcome of these tests (“findings”) as part of the Communication Letter. There are different categories of findings, including a material weakness, meaning that a deficiency or a combination of deficiencies, in internal controls exists and that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, detected or corrected on a timely basis. No material weaknesses or other findings were identified as part of the audit. Sheldon Chavan of Chavan and Associates LLP will give a presentation as part of the Council's January 2022 meeting.
The Financial Report uses guidelines issued by the Government Finance Officers Association of the United States and Canada (GFOA) as part of its Certificate of Achievement for Excellence in Financial Reporting Program. This program encourages state and local governments to prepare reports that exceed the minimum requirements of generally accepted accounting principles. The intent of the program is to produce a readable and efficiently organized document to promote greater public transparency and full disclosure of the City’s financial health. The City received Certificates of Achievements for the last three years and will seek a certificate for the fourth consecutive year.