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File Number: 23-220 Auditors’ Communication with Those Charged with Governance Professional auditing standards require the auditors to communicate in writing to management and those charged with governance. Maze and Associates has issued the Memorandum on Internal Control and Required Communications, and the memorandum is attached to this report for your review. Maze considers the City’s internal controls over financial reporting as a basis for designing the audit procedures. At the conclusion of the audit, the firm does express an opinion on the effectiveness of the internal controls. Maze reported one “significant deficiency” in internal controls related to the Finance Department- “Due to the significant transition and turnover within the Finance Department during the year, particularly in high level positions, there was significant strain on the City accounting staff’s ability to ensure all accounting were fully analyzed, and closing entries were complete prior to proving the general ledger for the audit. As a result, there were a significant number of post-closing entries after the audit had commenced.” Management responded to this sole deficiency stating, “The Finance Department is making progress on filling management positions in a challenging environment…” and has “contracted with staffing agencies to bring in temporary staff to fill the void where possible.” Conclusion In summary, Maze found the general-purpose financial statements present fairly the City’s financial position as of June 30, 2022. This is the highest-level opinion that can be rendered by the auditors. This opinion assures that the City's financial statements are in conformity with generally accepted accounting principles in the United States, an opinion rendered on all the City's funds. Other statements such as the Measure B/BB reports also meet the compliance requirements. The City was awarded the Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year ended June 30, 2021, by the Government Finance Officers Association of the United States and Canada (GFOA). The City has applied for the award for the 2022-2023 ACFR, and staff believes it continues to meet the stringent standards of the GFOA Awards program. REVIEW BY CITY COUNCIL FINANCE COMMITTEE The City Council Finance Committee reviewed the audited financial statements, including the Annual Comprehensive Financial Report for the City of San Leandro, on April 26, 2023. The Finance Committee unanimously recommends the financial statement and audit reports to the City Council for acceptance. ATTACHMENTS ·Attachment A: Resolution ·Attachment B: Annual Comprehensive Financial Report ·Attachment C: Measure B Compliance Audit ·Attachment D: Measure BB Compliance Audit ·Attachment E: Measure F/Vehicle License Fee Compliance Audit ·Attachment F: Report regarding Appropriations Limit Calculation for 2022-23 ·Attachment G: Memorandum on Internal Control Page 3 City of San Leandro Printed on 5/10/2023