TO: Board of Supervisors
FROM: Tracy A. Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban - Accounting Manager
SUBJECT: Annual Comprehensive Financial Report and Single Audit for Fiscal Year Ending June 30, 2023
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, 2023. (No Fiscal Impact, Mandatory)
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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 (ACFR) presented to you today 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 the Auditor-Controller, Tracy Schulze, and County 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, including financial statements, 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 the County’s financial and statistical information. On January 12, 2024, 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 and rated on various criteria within 17 different areas of the report. The County has received the GFOA Certificate of Achievement for Excellence in Financial Reporting in each of the past eighteen years. Due to the size of the report, the ACFR will be made available to the public through the County’s website.
California Government Code Section 12410.5 and Code of Federal Regulations 2CFR 200.512 address the requirement of the County to compile and file a Single Audit Report - Schedule of Expenditures of Federal Awards (SEFA) with the State Controller and Federal Audit Clearinghouse. The SEFA is required for any governmental or non-profit entity that spends over $750,000 of federal funding in a single fiscal year, and requires additional audit testing and procedures to review the compliance and accurate reporting of each expenditure. The SEFA has been prepared based on federal guidelines and must be completed and accepted by the Board of Supervisors no later than March 31, 2024.
During fiscal year 2022-23, the County had expenditures of approximately $50.1 million in federal cash awards (including pass-through grants to sub-recipients), continued tracking $9.5 million in federal loan awards, and distributed $1.3 million in noncash assistance (nutrition assistance vouchers), for a total of approximately $60.9 in federal funding. The audit report presented today has an unmodified (clean) opinion from the County’s external auditors, Brown Armstrong Accountancy Corporation, and will be made available to the public through the County’s website.
Requested Action: Accept and file the reports.
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 |
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.