Summary:
The City is required by A.R.S. §9-481 and Article VI, Section 7, of the City Charter to have an annual audit performed by an independent certified public accounting firm. The annual audit also meets the Continuing Disclosure Requirements for the City's outstanding bond obligations.
We are pleased to submit the following financial reports and auditor's communication to Council for consideration and acceptance:
Comprehensive Annual Financial Report (CAFR)
The CAFR includes basic financial statements, combining fund financial statements, footnotes and other supplementary information.
The City received a clean audit opinion with no material misstatements. The independent auditors’ report on the financial statements expresses an opinion that the basic financial statements present fairly, in all material respects, the financial position and results of operations of the District in conformity with U.S. generally accepted accounting principles.
Responsibility for the accuracy of the information and the completeness and fairness of the presentations, including all disclosures, rests with City management. 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.
The CAFR is required to be filed with the Auditor General and posted on the Municipal Securities Rule Making Board's website as well as the City's website.
Single Audit Report (to be issued by auditors in January 2021)
All non-Federal entities that expend $750,000 or more of Federal awards in a year are required to obtain an annual audit in accordance with the Single Audit Act Amendments of 1996, OMB Uniform Guidance Subpart F, and Government Auditing Standards. The standards governing Single Audit engagements require the independent auditor to provide a separately issued Single Audit 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. Because of delays in the OMB federal guidelines on submission of the report, the Single Audit Report will not be issued by the auditors until January 2021. The City is expected to receive a clean single audit report with no material noncompliance.
The Single Audit Report is filed with the Federal Audit Clearinghouse.
Auditor Communication to Governance Letter
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.