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HomeMy WebLinkAbout~Master - Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2023 RESOLUTION NO. 23-274 RESOLUTION APPROVING ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2023 FOR THE CITY OF AMES,IOWA WHEREAS, Iowa Code requires the City 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, governmental accounting regulations require that the statements contained in the ACFR use methods of accounting that do not completely match the method of recording transactions in the accounting software, which is primarily on a budgetary basis for tracking and control against the Council approved budget. An extensive effort 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. Because of this, the City produces this financial report only on an annual basis; and, WHEREAS, Eide Bailly LLP, Certified Public Accountants, has audited the City's financial statements as of and for the year ended June 30, 2022, and expressed its opinion on 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, 2022, 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 with the exception described below; and, WHEREAS, the auditor's report on the financial statements is an unmodified or "clean" opinion. There were no significant deficiencies, but there were material audit adjustments made. Those adjustments include changes to the capital asset list for construction in progress and the schedule of expenditures of federals awards(SEFA).Additional procedures and staff training have been implemented to prevent adjustments to these areas in the future; and, WHEREAS, the compliance section also reports a finding related to disbursements during year ended June 30, 2022, exceeding 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. Beginning in FY 2023, future bond fees will be included in the budget. There was also a finding related to the Annual Urban Renewal Report,where in one instance, the TIF debt balances did not reconcile to City records. Additional procedures and staff training have been implemented to assure completeness in the future; and, WHEREAS, also 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 came up during the audit. The letter confirms that there were no other issues to report related to the June 30, 2022, audit. It does include a statement related to the adjustments mentioned in the previous paragraph. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that resolution approving Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2023, is hereby approved. ADOPTED THIS 9th day of May, 2023. e4 W- 4/0�' i:��e Renee kall, City Clerk John A. Haila, Mayor Introduced by: Gartin Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 9th day of May, 2023.