HomeMy WebLinkAbout2006-02-14 - AGENDA REPORTS - ANNUAL FIN RPT (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 49
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
February 14, 2006
JUNE 30, 2005 COMPREHENSIVE ANNUAL FINANCIAL
REPORT, MANAGEMENT LETTER, AND AUDIT COMMITTEE
LETTER
Administrative Services
RECOMMENDED ACTION
City Council receive and approve Comprehensive Annual Financial Report, Management Letter,
and Audit Committee Letter for Fiscal Year Ended June 30, 2005.
BACKGROUND
The City's independent audit firm, Diehl, Evans and Company, has completed the City's annual
audit for fiscal year ending June 30, 2005. Diehl, Evans and Company 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. No significant findings were noted
as a result of the audit.
Based on the audit performed, Diehl, Evans and Company 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, 2005.
P„ i
The Management Letter is prepared as part of Diehl, Evans and Company's annual audit to
identify and communicate areas that are viewed as potential areas for improvement in the City's
Internal Controls. All items in the Letter are considered insignificant to affect the current audit.
Staff is currently working to improve these areas.
In accordance with professional standards, an Audit Committee Letter has been prepared by
Diehl, Evans and Company to provide specific information related to the audit scope and
performance. No items of concern were noted by the auditors.
ALTERNATIVE ACTIONS
No feasible alternative action has been identified by staff.
FISCAL IMPACT
None.
ATTACHMENTS
Comprehensive Annual Financial Report available in the City Clerk's Reading File
Management Letter available in the City Clerk's Reading File
Audit Committee Letter available in the City Clerk's Reading File