TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
title
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024.
end
RECOMMENDATION
Receive and file the City of Chino’s Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024.
body
FISCAL IMPACT
No fiscal impact.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
• Exemplary Leadership
|
Revenue: |
Expenditure: |
|
Transfer In: |
Transfer Out: |
BACKGROUND
The Annual Comprehensive Financial Report (ACFR) is a key financial document that provides a detailed review of the City’s financial condition, including audited financial statements, fund balances, and compliance with Government Accounting Standards Board (GASB) requirements. It serves as a critical resource for financial transparency, policy evaluation, and strategic decision-making.
As required by the California Government Code and in accordance with Generally Accepted Accounting Principles (GAAP), the City prepares the ACFR to ensure accountability and provide stakeholders-City leadership, residents, and investors-with a comprehensive assessment of municipal financial operations.
ISSUES/ANALYSIS
The Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 has been completed in compliance with Governmental Accounting Standards Board (GASB) guidelines and reflects the City's financial position as of June 30, 2024. The report provides a comprehensive assessment of the City's financial health. Here are the main sections:
• Transmittal Letter in the Introductory Section serves as an official communication from City staff to the Mayor and Members of the City Council, presenting the ACFR and summarizing the City's financial position.
• Independent Auditor’s Report (Page 1-4) The auditor states that the audit was conducted in accordance with Generally Accepted Auditing Standards (GAAS) and expresses an unmodified opinion, which means the financial statements fairly present the City's financial position and operations in accordance with GAAP.
• Management’s Discussion and Analysis (MD&A) (Page 5-23) Provides management’s narrative overview of financial highlights, budgetary trends, and significant changes affecting the City's financial health.
• Financial Statements (Page 25-52) Present the core financial data in two formats:
o Government-Wide Financial Statements - provide a broad, long-term view of the City's overall financial position. For example, long-term pension liabilities are included in the financial statements.
o Fund Financial Statements - provide a detailed view of the current year’s operation and short-term financial accountability within fund categories like the General Fund, the Enterprise Funds, Internal Service Funds, and Special Revenue Funds.
o Notes to the Financial Statements (Page 55-104) Supplements the financial statements with detailed explanations of accounting policies, required disclosures, fund balances, liabilities, and other financial disclosures essential for understanding the statements.
• Supplementary Information (Page 105-177) This section includes additional schedules that provide context for key financial data, such as pension and other post-employment benefits (OPEB) funding and budgetary comparisons for each fund.
• Statistical Section [Page 179-210] Presents 10-year historical financial data, demographic trends, and economic indicators that provide context for long-term fiscal planning.
The City of Chino has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) for its Annual Comprehensive Financial Report for the fiscal year ending June 30, 2023. This prestigious recognition reflects the City's commitment to financial transparency, accountability, and excellence in municipal reporting.
A digital copy of the ACFR is available on the City of Chino website at: www.cityofchino.org/223/Financial-Reports <http://www.cityofchino.org/223/Financial-Reports>.
Attachments - Annual Comprehensive Financial Report (ACFR) FY 23-24