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ITEM: |
ACTION
ITEM |
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12. |
RECEIVE FISCAL YEAR 2022-2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT |
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Meeting
Date: |
February 12, 2024 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt, |
Program/ |
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General
Manager |
Line Item No.: |
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Prepared
By: |
Nishil
Bali |
Cost Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: This action does not constitute a project
as defined by the California Environmental Quality Act Guidelines Section
15378. |
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SUMMARY: A draft copy of the District’s Annual Comprehensive Financial Report (ACFR) is provided for review. Draft copies of the Independent Auditors’ Report and Board Communication Letter (required communication letter from the Auditors to the Board) for the fiscal year ending June 30, 2023, have been received from the District’s auditors, CliftonLarsonAllen (previously Hayashi & Wayland). The final audit will be posted on the District’s website after it has been accepted by the Board. CliftonLarsonAllen has been the District’s auditors since 1989.
This is the nineth year that the District has prepared an ACFR. An ACFR is a set of government financial statements comprising the financial report of a governmental agency that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). GASB provides standards for the content of an ACFR in its annually updated publication. The District’s ACFR is audited by an external certified accounting firm utilizing GASB requirements. An ACFR is composed of three sections:
Introductory section – includes the transmittal letter.
Financial section – includes the independent auditor’s report and contains management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.
Statistical section – includes additional financial, economic, and demographic information.
The auditors have issued an “unmodified opinion” on the District’s ACFR for Fiscal Year 2022-23. An unmodified opinion is the opinion where auditor expresses that the financial statements are fairly presented, in all material respects, in accordance with the generally accepted accounting principles in the United States. The audit did not identify any deficiencies in the internal control that the auditors consider to be material weaknesses. Representatives from CliftonLarsonAllen will be available at the meeting to review the Board Disclosure Letter.
A Management Letter may be issued in conjunction with the Report to offer constructive suggestions for improvements on matters that came to the auditors’ attention in connection with the audit, however, such a letter was not deemed necessary by CliftonLarsonAllen in connection with the audit for this fiscal year.
The
Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the District for its ACFR
for the fiscal year ended June 30, 2022.
This was the eighth year that the District has achieved this prestigious
award. In order to be awarded a
Certificate of Achievement, the District had to publish an easily readable and
efficiently organized ACFR that satisfied both generally accepted accounting
principles and applicable program requirements.
A Certificate of Achievement for Excellence in Financial Reporting is
valid for a period of one year only.
However, we believe that our current ACFR continues to meet the
Certificate of Achievement for Excellence in Financial Reporting Program’s
requirements, and we will be submitting it to the GFOA to determine its
eligibility for another certificate.
RECOMMENDATION: District staff recommends that the Board review and receive the Annual Comprehensive Financial Report for the year ending June 30, 2023.
12-A Draft Annual Comprehensive Financial Report for FY 2022-2023 (provided separately and posted as a Draft at https://www.mpwmd.net/who-we-are/board-of-directors/board-meeting-agendas/)
12-B Board Disclosure Letter (provided separately and posted as Draft at https://www.mpwmd.net/who-we-are/board-of-directors/board-meeting-agendas/)
U:\staff\Boardpacket\2024\02122024\Action
Items\12\Item-12.docx