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Presentation of the City of Chandler Annual Financial Audit For the Fiscal Year Ended June 30, 2025 Presented by Joshua Jumper, Partner January 22, 2026 • The City is required by City Charter and State Statute to issue an annual audited financial report (ACFR), 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 5 years reports. 2 Requirements AICPA Statements on Auditing Standards (SAS) OMB Uniform Guidance 2 CFR 200 (UG) Governmental Accounting Stdrs. Board (GASB) Government Auditing Standards (GAS) v General Audit Standards v Working paper documentation v Risk assessments v Federal Compliance Audit v Auditing Standards particular to governmental entities v Independence standards and requirements v Financial Reporting Standards to Guide the Audit • 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 4 • Federal agencies • Bond holders • IRS • Creditors • Residents • 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 November- January Audit Process Engagement letter and initial planning of the audit began in May 5 • 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 on internal control and compliance for federal awards as required • Agreed-upon procedures report for ADEQ landfill requirements • HURF Accountant’s Report on Compliance • Annual Expenditure Limitation Report 6 Audit Related Reports Issued FY 2024-25 Audit Results Unmodified (clean) audit opinion dated November 26, 2025 7 No internal control deficiencies noted Single Audit reported $33 million of Federal expenditures; COVID-19 funding still remains a critical portion. Approximately $8.8M spent in fiscal year 2025 • 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 8 Other Important Communication Questions? Audit Team Contacts: Joshua Jumper Partner (623) 237-7952 joshua.jumper@hm.cpa 9 Approval of Resolution 5970 demonstrates compliance with ARS §9-481(H) and ARS §41-1494.