Receive presentation and file the County's annual financial statements and independent auditor's report for the fiscal year ending June 30, 2022. (No general fund impact) (Rinde/Alves)

The Board of Supervisors contracted with Lance, Soll & Lunghard, LLP (LSL) to conduct the annual audit of the county's financial statements for the fiscal year ended June 30, 2022. LSL has completed its work and issued its reports on February 9, 2023 as summarized below:

The auditors opine that the financial statements are presented fairly, in all material respects, in accordance with generally accepted accounting principles. This represents a clean (unmodified) audit opinion, which is invaluable to the users of our financial statements.

The auditors also review the County's internal controls as part of the performance of their financial audit and where observed will provide findings and recommendations that can range from Material Weakness (most severe), Significant Deficiency (moderate severity), and Deficiency (least severe). During the performance of the audit, one recommendation was noted as follows. 

The issuance of the County's financial statements was within eight months of the end of the fiscal year, which included a 60-day extension. This is deemed timely according to financial reporting best practices set by the Government Finance Officers Association (GFOA). The County's ACFR has been submitted to the GFOA for consideration for its Certificate of Achievement for Excellence in Financial Reporting Program. The County recently received its fifth consecutive award for excellence in Financial Reporting for the prior year ACFR for June 30, 2021 (Attachment E). The Annual Comprehensive Financial Report as of June 30, 2022 has been posted online and distributed to interested parties. As part of the Board item, staff will present on highlights of the County's fiscal condition as contained in the ACFR.

The external auditors will begin field work for the Single Audit Report on March 13 for the same fiscal year and that report is scheduled to be issued by the audit firm March 31, 2023, and will be reported to the Board in April. Any findings related to federal grant programs will also be reported at that time.

The Financial Oversight Committee received a status update on the Yolo County Annual Comprehensive Financial Report directly from the independent auditors at its November 10, 2022 meeting and a final update on the audit results at the February 15, 2023 meeting.

The Department of Financial Services continues to collaborate with the external auditor to complete the Single Audit (audit of federal funds) prior to the legal deadline of March 31, 2023.

Not Applicable.