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  Regular-General Government   # 32.       
Board of Supervisors Financial Services  
Meeting Date: 01/14/2020  
Brief Title:    Receive Audited Financial Statements for Fiscal Year 2018-19
From: Chad Rinde, Chief Financial Officer, Financial Services
Staff Contact: Merilyn Tiriboyi, Accounting Manager, Financial Services, x8219
Supervisorial District Impact:

Subject
Receive and file the County's annual financial statements and independent auditor's report for fiscal year ended June 30, 2019. (No general fund impact) (Rinde)
Recommended Action
  1. Receive and file the County's annual financial statements for the fiscal year ended June 30, 2019, including the independent auditor's report; and
     
  2. Receive the Chief Financial Officer's summary report on the financial results for the fiscal year 2018-19 and financial trends.
Strategic Plan Goal(s)
Operational Excellence
Reason for Recommended Action/Background
The Board of Supervisors contracted with Lance, Soll & Lunhard, LLP (LSL) to conduct the annual audit of the county's financial statements for the fiscal year ended June 30, 2019. LSL has completed its work and issued its reports on December 20, 2019 as summarized below:
  • Yolo County Audit Communication Letter (Attachment A)
  • Yolo County Report on Internal Control and Schedule of Financial Statement Findings (Attachment B)
  • Yolo County Opinion Letter (Attachment C)
The County Financial Statements as of June 30, 2019 with the independent auditor's opinion, are included in Attachment D. 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 issuance of the county's financial statements is within six months of the fiscal year end and is deemed timely according to financial reporting best practices set by the Government Finance Officers Association (GFOA) and is consistent with the prior year. The county's comprehensive annual financial report has been submitted to the GFOA for consideration for its Certificate of Achievement for Excellence in Financial Reporting Program.

The auditors in their report on internal control reported several findings (of which the full condition and information related to the finding is described in Attachment B) related to the County's audit:
 
Finding Number Finding Description Severity
2019-001 Timely Bank Reconciliations Significant Deficiency
2019-002 Segregation of Duties within the Financial System Significant Deficiency
2019-003 Estimates used in calculation of Landfill Closure & Post-Closure Costs Significant Deficiency

The report shows the three findings above as a "Significant Deficiency;" however, none of the findings were deemed a "Material Weakness," which is a more severe condition.

The comprehensive annual financial report has been posted online and distributed to interested parties. The auditors are finalizing the Single Audit Report for the same fiscal year and this will be issued by the audit firm prior to the end of March 2020, and will be reported to the Board in April. Additional findings related to federal grant programs will be reported at that time.
Collaborations (including Board advisory groups and external partner agencies)

The Financial Oversight Committee received a status report on the progress of the audit directly from the independent auditors at its November 5, 2019 meeting and will receive a final update at the February and May 2020 meetings.

The Department of Financial Services is continuing to collaborate with the external auditor to complete the Single Audit (audit of federal funds) prior to the legal deadline of March 31, 2020.

Competitive Bid Process
Not Applicable
Attachments
Att. A. Yolo County Audit Communication Letter
Att. B. Report on Internal Control & Schedule of Financial Statement Findings
Att. C. Yolo County Opinion Letter
Att. D. CAFR 2019
Att. E. Presentation

Form Review
Inbox Reviewed By Date
Financial Services crinde 01/07/2020 08:37 AM
County Counsel Hope Welton 01/07/2020 08:50 AM
Form Started By: mtiriboyi Started On: 12/12/2019 10:54 AM
Final Approval Date: 01/07/2020

    

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