TO: Board of Supervisors
FROM: Tracy Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban - Deputy Auditor-Controller
SUBJECT: Annual Comprehensive Financial Report and Single Audit Report for Fiscal Year Ending June 30, 2025
RECOMMENDATION
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Accept and file the Annual Comprehensive Financial Report (ACFR) and the Single Audit Report - Schedule of Expenditures of Federal Awards (SEFA), for fiscal year ended June 30, 2025.
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BACKGROUND
California Government Code Section 25250 addresses the requirements of the County to have an examination of the financial statements in accordance with generally accepted auditing standards. The Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025 is presented to you today and includes an unmodified (clean) opinion from the County’s external auditors, Brown Armstrong Accountancy Corporation.
The ACFR is organized with five main sections: (1) the Introductory Section, including the Transmittal Letter signed by Auditor-Controller, Tracy Schulze, and Chief Executive Officer, Ryan Alsop, (2) the Financial Section, including the Audit Opinion and Management's Discussion and Analysis (MD&A), (3) the required Basic Financial Statements Section and note disclosures, and required supplementary information, (4) the Supplementary Information Section on non-major funds, enterprise funds and internal service funds, and (5) the Statistical Section. The ACFR is an excellent resource for County’s financial and statistical information.
On January 15, 2026, the Auditor-Controller submitted the County's ACFR to the Government Finance Officers Association (GFOA) to participate in the Certificate of Achievement for Excellence In Financial Reporting Program. Each ACFR submitted to GFOA for consideration is reviewed by three independent reviewers and rated on various criteria within 17 different areas of the report including compliance with over 100 Governmental Accounting Standards required for transparent and accurate financial reporting. The County has received the GFOA Certificate of Achievement for Excellence in Financial Reporting in each of the past 20 years. Due to the size of the report, the report is not attached, but will be made available to the public through the County's website.
California Government Code Section 12410.5 and Federal Code of Regulations 2 CFR 200.512 address the requirements of the County to prepare and file a Single Audit Report with the State Controller and Federal Audit Clearinghouse. The Single Audit is required for any governmental or non-profit entity that spends $750,000 of federal funding in a single fiscal year (increases to $1,000,000 for fiscal year 2025-26) and is comprised of additional testing and procedures to review the compliance and accurate reporting of each expenditure. During the fiscal year, the County had expenditures of approximately $56.9 million in federal cash awards (including pass-throughs to subrecipients), continues tracking $9.1 million in federal loan awards, and distributed $1.8 million in non-cash assistance (nutrition assistance vouchers), for a total of approximately $67.8 million in federal funding.
The Single Audit has been prepared based on federal guidelines and must be completed and accepted by the Board of Supervisors no later than March 31, 2026. The Single Audit for fiscal year ended June 30, 2025 presented to you today has an unmodified (clean) opinion from the County’s external auditors, Brown Armstrong Accountancy Corporation. Additionally, there were no findings or questioned costs disclosed in the report for the audit year. A copy of this report is attached and will also be made available to the public through the County’s website.
Requested Action: Accept and file the Annual Comprehensive Financial Report (ACFR) and the Single Audit Report - Schedule of Expenditures of Federal Awards (SEFA), for fiscal year ended June 30, 2025.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
The County would not be in compliance with the California Constitution of Federal Regulations |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.