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HomeMy WebLinkAbout~Master - approving Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2021 RESOLUTION NO. 22-505 RESOLUTION APPROVING ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2021 FOR THE CITY OF AMES,IOWA WHEREAS, the City is required by Iowa Code to publish a complete set of audited financial statements presented in conformity with generally accepted accounting principles. These financial statements,referred to as the annual comprehensive financial report(ACFR), serve many purposes including the following: 1) Provide information needed for both financial decision- making and the assessment of financial stewardship; 2) Lend insight into the financial health of the City; 3) Preserve public and investor trust through financial transparency; 4) Demonstrate compliance with public decisions concerning the raising and spending of public monies; 5) Demonstrate the extent to which operating objectives are met efficiently and effectively, using all resources available for that purpose, and whether it can continue to do so and; 6) Demonstrate compliance with finance-related legal and contractual provisions; and WHEREAS,government finance uses Fund Accounting to organize and present data about financial resources to show the fact that certain resources have been segregated for specific activities or objectives in accordance with special regulations, restrictions, or limitations. The constraints on how financial resources can be used are either imposed externally (grantors and creditors) or internally through the budget adopted by the City Council. An extensive amount of time is required to close out the accounting records and make the numerous adjusting entries that are required to convert to the accounting basis required for the ACFR; and, WHEREAS, Eide Bailly LLP, Certified Public Accountants, has audited the City's financial statements as of and for the year ended June 30,2021,and expressed its opinion regarding these statements based on the audit. In the auditor's opinion,the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America; and, WHEREAS, the auditor's report on the financial statements is an unmodified, or "clean," opinion. There were no significant deficiencies and one material weakness identified in relation to the process for determining revenue recognition. The one weakness identified was related to Federal Emergency Management Agency(FEMA)money received in FY 2020/21,prior to a grant agreement being in place (in FY 2021/22). Therefore, money received should have been deferred for FY 2020/21 and recognized instead in FY 2021/22. This also affected the City's Schedule of Expenditures of Federal Awards; and, WHEREAS, the auditor's report on internal control over major programs is also unmodified. There were no material weaknesses or significant deficiencies noted, and no noncompliance material to the financial statements noted; and, WHEREAS, the compliance section reports a finding related to disbursements during FY 2020/21: the disbursements exceeded the amounts budgeted in the debt service function. This was due to an unusually large amount of refunding bonds, resulting in charges more than expected. Future bond fees, beginning in FY 2022/23, will be included in the budget; and, WHEREAS, included with the report is the management letter that discloses any findings, difficulties in performing the audit, misstatements, disagreements with management, and other issues that arose during the audit. The letter confirms there were no other issues to report related to the FY 2020/21 audit. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2021, is hereby approved. ADOPTED THIS 27th day of September, 2022. e4 W- ico_� Renee kall, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Beatty-Hansen Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 271h day of September, 2022.