CC 07-16-2024 Item No. 1. FY 2022-23 Annual Comprehensive Financial Report (ACFR)_Supplemental Report1
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: June 16, 2024
Agenda Item #1
Subject
Receive the FY 2022-23 Annual Comprehensive Financial Report (ACFR)
Recommended Action
Receive the FY 2022-23 Annual Comprehensive Financial Report (ACFR)
Background:
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: Please explain the reason for the late changes. (Councilmember Chao)
Staff Response: The reasons for the late changes are detailed in the staff report on page 3.
Q2: Please explain why the ACFR was posted last week to the federal website on 7/9/2024
prior to council approval. (Councilmember Chao)
Staff Response: According to Urban Futures Inc (UFI), the City’s Dissemination Agent, posting
draft ACFRs to the federal website is acceptable. Council approval of the ACFR is not required.
Q3: The ACFR is late per our debt agreement of a March 30 deadline. The only notice
provided by UFI was on March 30, stating that “The City anticipates the Audited Financial
Statements will be complete and available for posting no later than April 30, 2024.” We are
now July 15. Why wasn’t a supplemental message posted? (Councilmember Chao)
Staff Response: In accordance with the Continuing Disclosure Certificate for the 2020A Certificates
of Participation, the City, through UFI, posted a Failure to File Notice on March 30, 2024, when
the FY2023 ACFR was not yet available. At that time, it was anticipated by the City that the ACFR
would be completed by April 30, 2024. Although the ACFR was completed after that date, there is
no obligation to file additional notices updating this date.
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Q4: Why hasn’t UFI posted information about the CDTFA audit as this is a major material
change to the City’s finances? Being late impacts the City’s reputation and credit-
worthiness. (Councilmember Chao)
Staff Response: This question is not germane to the item under discussion. Additionally, according
to the City’s consultant, UFI, this year’s late submittal did not, and will not, impact the City’s
reputation and credit-worthiness.
Q5: Separately, the 2020 sales-tax income in the ACFR is incorrect and inflated by about
$10M. This is evidenced by comparing CDTFA records and rebates to Apple and Insight.
(Councilmember Chao)
Staff Response: This statement is not a question, is false, and is outside of the scope of the item
agendized for discussion.
Attachments Provided with Original Staff Report:
A – FY 22-23 ACFR