Audit Communication Presentation
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Presentation of the City of Chandler Annual Financial Audit For the Fiscal Year Ended June 30, 2021 Presented by Corey Arvizu, Partner & Joshua Jumper, Manager January 27, 2022 • The City is required by City Charter and State Statute to issue an annual audited financial report, and federal law requires the City to undergo an annual single audit (A-133) of federal financial assistance. • Effective September 29, 2021, ARS §9-481(H), as amended by Laws 2021, Ch 427, §1, auditors must present audit results and any findings to the Council in a regular meeting without the use of a consent agenda within 90 days of audit completion. • ACFR posted online; at least 3 years reports. 2 Requirements • Verify management representations regarding finances • Demonstrate stewardship and accountability to: • Review compliance with certain laws and regulations • Governing body ultimately must ensure management fulfills its responsibility 3 • Federal agencies • Bond holders • IRS • Creditors • Citizens • Governing body • Grantors • State agencies Importance of the Audit Site visits in July, August, October, and November Various audit procedures performed remotely between site visits Audit reports issued in December & January Audit Process Engagement letter and initial planning of the audit began in April 4 • Audit communication to those charged with governance • Annual Comprehensive Financial Report (ACFR) • Single Audit Reporting Package • Report on internal control for audit under Government Auditing Standards • Report in internal control and compliance for federal awards as required • Agreed-upon procedures report for ADEQ landfill requirements • Agreed-upon procedures for p-card transactions • Annual expenditure limitation report 5 Audit Related Reports Issued Key Items from FY 2020-21 Unqualified (clean) audit opinion dated December 10, 2021 6 No internal control deficiencies noted COVID-19 related funding required significant attention and focus for audit team Increase to government- wide net position of $25,690,296 Approximately $14.5M spent in fiscal year 2021 • Communication to those charged with governance provided by the audit firm at the completion of the audit must include the following: • Engagement letter provided by the audit firm to management at the initiation of the audit • Management representation letter provided by management to the audit firm at the completion of the audit 7 Other Important Communication Questions? Audit Team Contacts: Corey Arvizu Engagement Partner (520) 903-6865 corey.arvizu@hm.cpa Joshua Jumper Audit Manager (623) 237-7952 joshua.jumper@hm.cpa 8 Approval of Resolution 5542 demonstrates compliance with ARS §9-481(H) and ARS §41-1494.