CC 06-06-2023 Item No. 10. FY 2021-22 Annual Comprehensive Financial Report (ACFR _Supplemental Report1
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: June 6, 2023
Agenda Item #10
Subject
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental
reports.
Recommended Action
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related
supplemental reports
Background:
Staff’s responses to questions received from councilmember are shown in italics.
Q1: I think Director Alfaro said that the ACFR for FY 21-22 was delayed because the
auditors were unable to get some timely information from the County. For the next audit
period (FY 22-23), is it reasonable to expect the final report at least by January 2024?
(Vice Mayor Mohan)
Staff response:
When the City adopted the provisions of GASB 75 in 2017, the City elected a measurement date of
6/30/2017. This was because the City had elected to show its PARS trust as a fiduciary fund,
following then applicable guidance regarding the presentations of component units. As the PARS
trust was audited by other auditors (and still is today) and is substantially all of the accounting
activity for that fiduciary fund, that audit report was required to be completed before Crowe could
complete its audit of that fiduciary fund, as well as being required for the fiduciary net position
calculations by the City’s actuary under GASB 75. That PARS F/S normally wasn’t released
until later in the calendar year, so Crowe and the City had to wait for these documents from the
outside parties before the City could move to finalize the amounts in the fiduciary fund and Crowe
could complete our audit procedures.
With the adoption of GASB 84 in 2021, the City no longer presented the PARS trust as it no
longer met the accounting definitions of a fiduciary fund per GASB 84, but the information from
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the PARS audit was still needed for the City’s actuarial valuation and the auditing of the OPEB’s
plan’s fiduciary net position, which is used to calculate the City’s Net OPEB Asset/Liability that
is shown on the financial statements (and has been since the adoption of GASB 75). This is why
the audit report has not been issued sooner.
Additionally, in 2022 with the City’s adoption of GASB 87 (Leases), the City received the final
calculations from its provider in December 2022, which meant that the City had to review the
information received, make adoption AJEs (adjusting journal entries) to its general ledger and
then provide the final balances to Crowe so that the information could be audited.
Attachments Provided with Original Staff Report:
A. FY 2021-22 ACFR
B. FY 2021-22 Management Letter
C. FY 2021-22 SAS 114
D. FY 2021-22 Single Audit
E. FY 2021-22 GANN AUP Report
F. FY 2021-22 Investment AUP Report
G. FY 2021-22 Storm Drain AUP Report
H. Responses to ACFR Questions