Audit Communication Presentation

City of Chandler — Regular Meeting (2023-01-26)

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Presentation of the City of Chandler
Annual Financial Audit
For the Fiscal Year Ended June 30, 2022
Presented by Corey Arvizu, Partner & Joshua Jumper, Manager 
January 26, 2023

• 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
• Annual expenditure limitation report
5
Audit Related Reports Issued

Key Items from FY 2021-22
Unmodified (clean) 
audit opinion dated 
December 16, 2022
6
No internal control 
deficiencies noted
COVID-19 related funding 
required significant 
attention and focus for 
audit team
Implementation of 
GASB 87 related to 
leases
Approximately $25.8M 
spent in fiscal year 2022

• Communication to those charged with 
governance provided by the audit firm at 
the completion of the audit also includes 
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 5661 
demonstrates compliance 
with ARS §9-481(H) and 
ARS §41-1494.