HomeMy WebLinkAboutStaff Report 14374
City of Palo Alto (ID # 14374)
City Council Staff Report
Meeting Date: 6/20/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Consent of the Macias Gini & O’Connell’s Single Audit Report for the
Year Ended June 30, 2021
From: City Manager
Lead Department: City Auditor
Recommendation
The Finance Committee, the Office of the City Auditor and Staff recommend that the
City Council consent to the audit reports for the fiscal year ended June 30, 2021
prepared by Macias Gini & O’Connell (“MGO”). These reports are collectively referred to
as the Single Audit.
1. Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements in
Accordance With Government Auditing Standards.
2. Independent Auditor’s Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on the Schedule of Federal
Awards Required by the Uniform Guidance.
Discussion
At the January 24, 2022 City Council Meeting, the City Council approved the following
audit reports prepared by MGO:
a) Auditor’s Report to the City Council (the “Management Letter”)
b) Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise
Revenues and Expenses for the years ended December 31, 2020 and 2019
c) Palo Alto Public Improvement Corporation (a component unit of the City of Palo
Alto) Annual Financial Report for the year ended June 30, 2021
d) Regional Water Quality Control Plant, Independent Auditor’s Report and Financial
Statements for the year ended June 30, 2021
e) Independent Accountant’s Report on Applying Agreed-Upon Procedures related
to the Article XIII-B Appropriations (GANN) Limit for the year ended June 30,
2021
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At that time, guidance necessary for the completion of the Single Audit had not yet
been released by Federal Office of Management and Budget. The Single Audit report
has since been completed, thus the recommended action within this report.
MGO reports the following within the Single Audit Report:
- Unmodified opinions as it pertains to both the Financial Statements and to
Federal Awards
- No material weaknesses or significant deficiencies in internal controls over
financial reporting or over major programs
- No findings or questioned costs
Stakeholder Engagement
This report has been prepared by the Office of the City Auditor in coordination with the
Administrative Services Department.
Environmental Review
Environmental Review is not applicable to this activity.
Attachments:
• FY 2021 City of Palo Alto Single Audit Report
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite750Walnut Creek, CA 94596
Government Auditing Standards
Government Auditing Standards
deficiency in internal control
material weakness
significant deficiency
Government Auditing Standards
Government Auditing
Standards
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite750Walnut Creek, CA 94596
OMB Compliance Supplement
Management’s Responsibility
Auditor’s Responsibility
Government Auditing Standards
Code of Federal Regulations Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
.
Opinion on Each Major Federal Program
deficiency in internal control over compliance
material weakness in internal control over compliance
significant deficiency in internal control over compliance