Summary:
Comprehensive Annual Financial Report (CAFR)
We are pleased to submit to you the CAFR for fiscal year ended June 30, 2018. This report is prepared annually by the Finance Department and includes basic financial statements, combining fund financial statements, footnotes and other supplementary information. These financial statements have been prepared in accordance with accounting principals generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB).
The financial statements were audited by an independent firm of Certified Public Accountants, Heinfeld, Meech & Co., P.C., whose report is included within. The City received a clean audit opinion with no material misstatements. The audit satisfies Article VI, Section 7, of the City Charter, which requires an annual audit of all accounts of the City by an independent certified public accountant.
Responsibility for the accuracy of the information and the completeness and fairness of the presentations, including all disclosures, rests with the management of the City. We believe the information is accurate in all material respects and is presented in a manner which fairly sets forth the financial position and results of operations of the City. Furthermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City’s financial activity have been included.
Single Audit Report
The City is required to have an independent audit of Federal financial assistance received from Federal agencies, or passed through to the City by the State of Arizona or other governmental entities during the fiscal year (the “Single Audit”). The standards governing Single Audit engagements require the independent auditor to report on the government’s internal controls and compliance with legal requirements having a direct and material impact on major programs, with special emphasis on internal controls and compliance requirements involving the administration of major federal awards. The Single Audit Report from Heinfeld, Meech & Co., P.C. is a separately issued report, copies of which have been provided to Council. The City received a clean single audit report with no material noncompliance.
Management Letter
As part of the audit process, the auditors may also prepare a management letter to present their comments and recommendations for improvements to internal controls and operating efficiencies of the City. The auditors did not issue a management letter this year.
Auditor Communication to Governance Letter
Additionally, the auditors are required by professional standards to communicate certain information to “those charged with governance”. The attached Communication to Governance (previously known as Statement on Auditing Standards (SAS) 114 letter) is that communication. This letter: 1) communicates the responsibilities of the auditors and the City; 2) discusses the audit process; and 3) discusses any issues that may have arisen during the audit or as a result of the audit. There were no material issues that arose during the audit or as a result of the audit.