HomeMy WebLinkAbout16 Consideration of the Audited Financial Report for FY20
AGENDA ITEM #16
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MEETING DATE: June 2, 2021
TO: Board of Directors
FROM: Michael Salmon, CFO
SUBJECT: Consideration of the Audited Financial Report for FY20
APPROVED BY______________________________
Brian C. Wright, Interim General Manager
RECOMMENDATION:
Accept the final draft Audited Financial Reports for fiscal year ending December 31, 2020,
Consolidated and Primary Government Only.
BACKGROUND:
The District is required to have its financial records audited by independent auditors each
year. The Board is responsible for hiring auditors and the auditors present their findings and
report directly to the Board. In 2019, the Board extended the contract with the independent
auditing firm Moss Adams, LLP to perform the District’s audits for FY19 through FY21.
Moss Adams conducted the FY20 audit of the District’s financial records and resulting
financial statements. In November 2020, Moss Adams conducted initial assessments of the
financial data and internal controls. Then in March 2021, conducted final field work and in
April testing of the financial statement balances for the year 2020 and as of December 31,
2020. The result of the audit is reported in an opinion letter from Moss Adams. The draft
opinion letter for 2020 from Moss Adams is an “unmodified” or “clean” opinion on the financial
statements, which is the highest level of assurance an auditor can provide relative to the
fairness and accuracy of the financial statements being presented. The final draft opinion
letters and accompanying financial statements are presented herein as attachments.
In addition to the past 15+ years standard financial statements, Consolidated and Primary
Government Only, staff is actively drafting a Comprehensive Annual Financial Report (Annual
Report) in compliance with Governmental Financial Officers Association (GFOA) guidelines.
This Annual Report wraps the standard financial statements with an expanded introductory
section and behind the standard financials, robust statistical informational disclosures. Moss
Adams does not audit nor make an opinion on the additional information in the Annual Report,
but does review the information to ensure it does not conflict with the audited standard
financial statements. Staff anticipates issues of this new for District Annual Report by
6/30/2021.
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Moss Adams is scheduled today to present these results to the Board and will review the
comments related to internal control matters identified in their communications letter, also
attached.
1.05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient, and fiscally responsible manner.
1.05.030 Goals:
1.1. Conduct the District’s business in a legal, ethical, open, and transparent manner.
6.6. Develop appropriate financial procedures to assure responsible financial management
FISCAL IMPACT:
There is not direct financial impact by means of accepting this report.
ATTACHMENTS:
Attachment 1 – FY20 Auditor (Moss Adams) Communication Letter
Attachment 2 – Final Draft FY20 Auditor’s Report and Financial Statements, Consolidated
Attachment 3 – Final Draft FY20 Auditor’s Report and Financial Statements, Primary
Government Only