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HomeMy WebLinkAbout2001-06-30 - AGENDA REPORTS - COMPREHENSIVE ANNUAL FIN RPT (2)CITY OF SANTA CI.ARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval Item to be presented by: Steve Stark DATE: November 27, 2001 SUBJECT: JUNE 30, 2001 COMPREHENSIVE ANNUAL FINANCIAL REPORT DEPARTMENT: Administrative Services RECOMMENDED ACTION Receive Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2001. BACKGROUND The City's independent audit firm, Moreland & Associates, has completed the City's annual audit for fiscal year ending June 30, 2001. Moreland & Associates conducted the audit in accordance with generally accepted auditing standards, whereby an audit plan was prepared and followed to obtain reasonable assurance that the City's financial statements were free from material misstatements. The audit included a review, on a test basis, of documents supporting the amounts and disclosures in the financial statements. The audit also included assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. Based on the audit performed, Moreland & Associates issued an unqualified audit opinion letter. This opinion reflects the best level of opinion an organization can receive on its financial statements. This letter is identified as the "Independent Auditors' Report" in the City's Comprehensive Annual Financial Report for FYE June 30, 2001. ALTERNATIVE ACTION No feasible alternative action has been identified by staff. FISCAL IMPACT None. ATTACHMENTS Audited Opinion Letter, dated September 25, 2001 (Comprehensive Annual Financial Report, Year Ended June 30, 2001 (Available in the City Clerk's reading file.) � ' Agenda Item SS:DS:hds, councilACAFR,.p.A.doc '� pl ��� g September 25, 2001 The Honorable City Council of the City of Santa Clarita, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of Santa Clarita, California as of and for the year ended June 30, 2001, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Santa Clarita management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Santa Clarita as of June 30, 2001, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Notes 18 and lh to the financial statements, the City of Santa Clarita changed its method of accounting for certain revenues and capital contributions. In accordance with Government Auditing Standards, we have also issued our report dated September 25, 2001 on our consideration of the City of Santa Clarita's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Santa Clarita taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplemental information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects, in relation to the general purpose financial statements taken as a whole. The statistical information listed in the table of contents was not audited by us and, accordingly, we do not express an opinion thereon.