TranslateStaff Report 5.3
| Meeting Date: | October 2, 2019 |
|---|---|
| Agenda No.: | Item 5.3 |
| Agenda Item Title: | Commission Audit for Fiscal Years Ending June 30, 2018 and June 30, 2017 |
| Proposal: | Staff requests that the Commission review and accept the audit for Fiscal Years 2018 and 2017 |
| Environmental Determination: | Not a project under CEQA |
| Staff Contacts: | Carole Cooper |
Analysis
Background
Bi-annual audits of the Commission’s financial operations have been conducted since the Cortese-Knox-Hertzberg Local Governmental Reorganization Act of 2000 became law in 2001, and Sonoma LAFCO became independent. The audit division of the Sonoma County Auditor’s Office conducted the first several bi-annual audits. Subsequently, new interpretations of the public accountants’ code of ethics led staff to recommend a change to use of an outside Certified Public Accounting firm to conduct audits; independent audits have occurred since 2013.
Audit for Fiscal Years 2018 and 2017
As authorized by the Commission at its May 2019 meeting, R.J. Ricciardi, Inc., Certified Public Accountants, performed the audit of Commission financial operations for the two-year period from July 1, 2016 to June 30, 2018. Over the last several months, Commission staff and staff from the Sonoma County Auditor’s Office have worked diligently with representatives from the company to provide requested information and explanations associated with expenditures and revenues for the audited period. Staff wishes to acknowledge the work and efforts of Bobbi Lovold of the Auditor’s Office.
Attached, for Commissioners’ review and consideration are two documents received from the independent auditor. The Basic Financial Statement Report for Fiscal Years 2018 and 2017 states, on page 1, that the Commission’s financial statements were audited “in accordance with auditing standards generally accepted in the United States of America.”
The auditor also stated:
…the financial statements…present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Sonoma Local Agency Formation Commission, as of June 30, 2018 and 2017, and the respective changes in financial position for the years then ended….
No irregularities, misstatements, material weaknesses, or needed changes were noted..
The Commissioners and Management Report provides information, according to auditors’ professional standards, on the auditor’s responsibilities with regard to the audit and the company’s experience in performing the audit of Sonoma LAFCO.
Environmental Analysis
The California Environmental Quality Act (CEQA) Guidelines defines “project” as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment….”
Administrative activities and government fiscal activities, such as an audit, that do not involve a commitment to a specific project which may result in a potentially significant physical impact on the environment are not considered to be projects subject to CEQA. Audit of the Commission’s basic financial statements is not considered a project under CEQA.
Recommendation
Staff recommends that the Commission review and accept the financial audit of Sonoma LAFCO as conducted by R.J. Ricciardi, Inc., CPAs, for the fiscal years ending June 30, 2018 and June 30, 2017.
Alternatives to Recommendation
None
Attachments
- Sonoma Local Agency Formation Commission Basic Financial Statements for Fiscal Years Ending June 30, 2018 and 2017
- Sonoma Local Agency Formation Commission Commissioners and Management Report for Fiscal Years Ending June 30, 2018 and 2017