title
ACCEPT THE SINGLE AUDIT AND INDEPENDENT AUDITORS’ REPORTS AND THE REPORT ON INTERNAL CONTROLS FOR THE YEAR ENDED JUNE 30, 2021
recommended action
RECOMMENDATION
It is recommended that the City Council accept by motion the Single Audit and Independent Auditors’ Reports and the Report on Internal Control Related Matters Identified in the Audit for the year ended June 30, 2021.
body
Summary
Presented for the City Council’s review is the City of Stockton’s Single Audit and Independent Auditors’ Reports (Attachment A) for the year ended June 30, 2021. On September 12, 2022, the Audit Committee received, reviewed, and accepted these audit reports. The Single Audit report identifies no new findings or questioned costs. Staff recommends that Council adopt the motion as proposed.
DISCUSSION
Background
Single Audit
The Single Audit and Independent Auditors’ Reports (Attachment A) is an annual audit of federal awards or pass-through of federal awards to the City. The City’s expenditures of federal awards in Fiscal Year 2020-21 totaled $44.6 million. The Single Audit report identifies no new findings or questioned costs.
Internal Control Related Matters
The Report on Internal Controls provides a review of the City’s financial reporting systems and procedures that are used to ensure accurate financial statements. An internal control is designed to provide reasonable assurance that the City meets its objectives regarding the reliability of financial reporting, effectiveness, and efficiency of operations and compliance with applicable laws and regulations. The auditor considers the City’s internal control over financial reporting during the design of audit procedures for financial statements. The auditors do not express any opinion on the effectiveness of the City’s internal controls.
The auditors had no new findings in the report for the year ended June 30, 2021.
The auditors cleared two (2) findings from last year’s report:
• 2020-001 (Internal control) was related to expenditures being greater than the amount received in the preparation of the Schedule of Expenditures of Federal Awards for the Community Development Block Grants. Economic Development Department separated each grant award and recorded expenditures respective to each grant.
• 2020-002 (Internal Controls) was related to timely filing of Quarterly Performance Reports on the CDBG - Neighborhood Stabilization Program.
FINANCIAL SUMMARY
There is no financial impact associated with accepting this item.
Attachment A - 2021 Single Audit and Independent Auditors’ Reports