MEETING DATE:
JANUARY 27, 2015
SUBJECT:
Title
FISCAL YEAR 2013-14 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
Body
Recommendation
Recommendation
Note and file the City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2014 along with the independent auditors' letter to the City Council regarding audit results.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme (If not applicable, please state not applicable below)
Good Governance
Relevant Department Goal (If not applicable, please state not applicable below)
Maintain Fiscal Health of the City
Introduction
The Comprehensive Annual Financial Report (CAFR) communicates the City's financial condition and activity for the fiscal year ended June 30, 2014. Overall, the City's operations show signs of stability, a result of prudent and sound management practices and efforts of the City of San Marcos.
The independent auditor's unmodified (clean) report provides the assurance that the CAFR, and audited information within, present fairly the City's financial position for the fiscal year ended June 30, 2014. As required by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA), the independent auditors issued a letter to the City Council communicating audit findings and other matters.
The City has received a clean audit report for many years. The City also has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers' Association of the United States and Canada for the FY 2012-13 CAFR for the 17th consecutive time since the City began participating in the program (FY1996-97). Staff anticipates that the current CAFR also conforms to the Certificate of Achievement Program requirements.
Discussion
At the end of each fiscal year, financial statements are prepared by the City and audited by independent auditors who are contracted through a competitive procurement process. The City's independent audit firm for both the CAFR and the Single Audit was Rogers, Anderson, Malody & Scott, LLP.
Comprehensive Annual Financial Report (CAFR)
The CAFR is used to communicate the City's financial condition and activity in a transparent and organized manner. In addition, the CAFR presents historical and comparative information that can be useful to City staff, elected officials, and external users, such as debt rating agencies, businesses, other public agencies and the City's residents. The most recent CAFR (see Attachment A) and several prior year reports are available on the City's website at: http://www.san-marcos.net.
Auditors follow audit industry standards established by the AICPA. These standards require auditors to provide an opinion on specific areas of the City's financial statements based on observations, inquiries, testing of transactions and analysis. An unmodified (clean) opinion communicates to users that the financial statements are fairly presented and that the information used in the report is reliable. The City received an unmodified (clean) opinion on the CAFR for the fiscal year ended June 30, 2014. The City has always received clean audit reports in past years.
Summary of Audit Results
The Auditing Standards Board of the AICPA requires the independent auditors to communicate significant audit findings to those charged with governance. The independent auditors have issued a letter to the City Council dated January 22, 2015 to comply with these requirements (see Attachment B).
Fiscal Impact
Not applicable
Attachment(s)
A - Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2014
B - Letter to the City Council on Summary of Audit Results dated January 22, 2015
Submitted by: Laura Rocha, Finance Director
Approved by: Jack Griffin, City Manager