REPORT TO THE CITY COUNCIL
DATE: June 2, 2016
FROM: MICHAEL LIMA, Finance Director/Controller
Finance Department
BY: KAREN M. BRADLEY, Assistant Finance Director/Controller
Finance Department
SUBJECT
Title
Submission and acceptance of the Restated City of Fresno Comprehensive Annual Financial Report (CAFR) and Comprehensive Annual Debt Report (CADR) for Fiscal Year 2015.
Body
RECOMMENDATION
Staff recommends that the City Council receive and accept the revised pages of the CAFR and the CADR for the fiscal year ended June 30, 2015.
EXECUTIVE SUMMARY
The Fiscal Year 2015 CAFR and the CADR were formally submitted and accepted by Council on March 17, 2016. Shortly after submission, it was determined that Water Fund (Water) expenses were overstated and Construction in Progress was understated by $8.85 million. Because Water's financial results are displayed or included in several CAFR fund/Citywide schedules and a CADR schedule, the discrepancy affected several pages of the CAFR and one page of the CADR. City staff proactively contacted the City's external audit firm and work began on making the necessary corrections to both documents.
The auditors performed required supplementary field work in order to verify that no additional modifications or disclosures were necessary to the CAFR. Their reissued Opinion on the CAFR remained unqualified or unmodified, but was updated to May 16, 2016. This continues to mean that there are no reservations concerning the financial statements and that the auditors belief that they are fairly presented.
BACKGROUND
All governmental or public entities are required under law to have the financial statements for the entity's fiscal year-end be audited. Once those statements are audited, many agencies (including the City of Fresno) release those statements in the form of a CAFR. Information from this document is used by City policy makers, citizens, investors, and external agencies to assess and determine the orga...
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