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<br /> <br />ITEM NO. 1 <br />STAFF REPORT <br /> <br /> <br />DATE: FEBRUARY 21, 2023 <br />TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS <br />FROM: BILL SMITH, CITY MANAGER <br />PREPARED BY: STACEY DABBS, FINANCE DIRECTOR <br />SUBJECT: RECEIVE AND FILE THE FY2021-22 ANNUAL COMPREHENSIVE <br />ANNUAL FINANCIAL REPORT (ACFR) AND RELATED REPORTS. <br />RECOMMENDED ACTION <br /> <br />Staff recommends that the City Council take the following action: <br /> <br />Receive and file the FY2021-22 Annual Comprehensive Financial Report (ACFR), the GAS <br />Letter, Management Letter, GANN Limit Report, and the Communication with those in charge <br />of governance (exit letter). <br /> <br />BACKGROUND <br /> <br />Currently, the firm of CliftonLarsonAllen, LLP, (“CLA”) performs the annual financial audit of <br />the City of Colton. This audit is required to be performed in accordance with Generally <br />Accepted Accounting Standards and Government Auditing Standards. At the conclusion of the <br />audit test work, the audit firm issues an opinion as to the fairness of presentation of the financial <br />position of City activities. The City of Colton received an unmodified, or “clean,” opinion on its <br />basic financial statements. In addition, the audit firm is also required to issue reports related to <br />internal controls, as well as communicate with the Council on certain matters regarding how the <br />audit was planned and conducted. All aforementioned reports are attached with the exception of <br />the Single Audit, which is still in progress. <br /> <br />ISSUES/ANALYSIS <br /> <br />The scope of the annual audit is to compile the City’s Annual Comprehensive Financial Report <br />(ACFR) and the Single Audit, as well as to identify matters that should be addressed by the City <br />in order to strengthen internal controls and ensure accuracy in financial reporting. The audit <br />1 <br />Packet Pg. 7