REPORT TO AUDIT COMMITTEE
SUBJECT
Title
Overview of the Draft Single Audit Report for Fiscal Year Ended June 30, 2018
Report
BACKGROUND
City Charter Section 1319 requires that an independent certified public accountant (CPA) audit the City's records and accounts on an annual basis. In compliance with the Charter, the City engaged the audit firm of Maze and Associates to perform an independent audit of the City's financial statements.
The City's annual financial statement audit also includes the federally mandated "Single Audit" which is designed to meet the special reporting requirements of federal granting agencies, specifically Office of Management and Budget (OMB) Uniform Guidance 2.CFR.200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (formerly OMB A-133). The standards governing Single Audit engagements require that agencies expending more than $750,000 in federal monies in a fiscal year have an independent audit not only on the fair presentation of the financial statements, but also on internal controls for compliance with the administrative requirements of federal awards.
DISCUSSION
The role of the Audit Committee (Committee) is to provide oversight of the City's financial reporting processes, internal controls, and independent auditors. Grace Zhang, Audit Partner, from Maze and Associates will present the audit results to the Committee. In addition, City staff will provide an overview of the Single Audit Report and address the results of the audit.
Attached is the Single Audit report for FY 2017-18. Maze and Associates identified Housing and Urban Development (HUD) - HOME Investments Partnership Program and Federal Emergency Management Agency (FEMA) - Assistance to Firefighters Grant as major programs to audit. As a result of the audit, one finding was reported in the Assistance to Firefighters Grant related to inventory requirements when purchasing equipment with federal funds. The Ci...
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