1. Annual Financial Reports The City of San Gabriel desires financial statements for the City to be prepared by the independent auditor and to be fully compliant with all applicable GASB statements. The audit firm will perform an audit of all funds of the City. The audit will be conducted in accordance with auditing standards as specified in section IV(B). The Annual Financial Reports will be prepared and word processed by the audit firm, including Government-wide Financial Statements, Fund Financial Statements, note disclosures, required supplementary information (RSI), and combining financial statements. The audit firm will render its auditor’s report on the basic financial statements, which will include both Government-wide Financial Statements and Fund Financial Statements. The audit firm will also apply limited audit procedures to Management’s Discussion and Analysis (MD&A) and required supplementary information (RSI) pertaining to the General Fund and each major fund of the City. 2. Annual Comprehensive Financial Report (ACFR) The City prepares an Annual Comprehensive Financial Report and has received the Government Finance Officers Association (GFOA) “Certificate of Achievement of Excellence in Financial Reporting” award for Outstanding Financial Reporting for the past 34 years and maintaining receipt of this award is a high priority for the City. 3. Single Audit The audit firm will perform a single audit on the expenditures of federal grants in accordance with U.S. Office of Management and Budget Grant Guidance/Super Circular and render the appropriate audit reports on Internal Control over Financial Reporting based upon the audit of the City’s financial statements in accordance with government auditing standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, Internal Control over Compliance, and on the Schedule of Expenditures of Federal Awards. The single audit report will include the appropriate schedule of expenditures of federal awards, footnotes, findings, and questioned costs, including reportable conditions and material weaknesses, and follow up on prior audit findings where required. The City did not have federal grants in excess of $750,000 in 2023-24 and therefore, did not prepare a Single Audit Report. 4. Appropriations Limit The audit firm shall perform agreed-upon procedures pertaining to the City’s Article XIII B Limit (Appropriations Limit) and render a letter annually to the City regarding compliance. 5. GASB Reporting for Pension The audit firm shall prepare accounting and reporting schedules to comply with all provisions of GASB reporting requirements, including but not limited to the following: a. Proportionate share of net pension liability, NPL sensitivity, and deferral amounts; b. All employer-specific deferrals and associated amortization schedule; c. Adjustments to pension expense for the difference in proportions due to CalPERS methodology; d. Net Pension expense, with employer-specific amounts; e. All actuarial amounts required forthe note disclosure and RSI; f. All calculations and journal entries. 6. GASB Reporting for OPEB The City contracts with an actuarial firm to prepare OPEB reporting amounts and journal entries. The audit firm shall review these reports and journal entries and shall prepare the note disclosures and RSI.
