TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
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Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025.
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RECOMMENDATION
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Receive and file the City of Chino’s Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025.
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FISCAL IMPACT
No fiscal impact.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further 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
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BACKGROUND
The Annual Comprehensive Financial Report (ACFR) is the City’s primary financial reporting document, providing a detailed and audited overview of the City’s financial condition. The ACFR includes financial statements, fund balances, and disclosures prepared in accordance with Governmental Accounting Standards Board (GASB) requirements. It serves as a critical tool for financial transparency, policy evaluation, and informed decision-making by City leadership, residents, and other stakeholders.
Pursuant to the California Government Code and in accordance with Generally Accepted Accounting Principles (GAAP), the City prepares the ACFR annually to ensure accountability and provide a comprehensive assessment of municipal financial operations.
ISSUES/ANALYSIS
The Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025 has been completed in compliance with Governmental Accounting Standards Board (GASB) guidelines and reflects the City’s financial position as of June 30, 2025. The ACFR presents a comprehensive assessment of the City’s overall financial health.
Key components of the report include:
• Transmittal Letter- Introductory Section (Pages i-vii): Provides official communication from City staff to the Mayor and City Council, summarizing the City’s financial condition and significant financial highlights for the fiscal year.
• GFOA Award (Page ix) The City of Chino was 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 ended June 30, 2024. This recognition reflects the City’s ongoing commitment to financial transparency, accountability, and excellence in municipal reporting. The City will again submit its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025, in pursuit of this distinguished award.
• Independent Auditor’s Report (Pages 1-4): The City’s independent auditors conducted the audit in accordance with Generally Accepted Auditing Standards (GAAS) and issued an unmodified (unqualified) opinion, which is the highest level of assurance an auditor can provide. An unmodified opinion indicates that the City’s financial statements are presented fairly, in all material respects, and in accordance with generally accepted accounting principles. In other words, the auditors found no material misstatements and concluded that the financial statements can be relied upon to accurately reflect the City’s financial position and results of operations.
• Management’s Discussion and Analysis (MD&A) (Pages 5-23): Provides management’s narrative overview of the City’s financial performance, including major financial highlights, budgetary trends, and significant factors impacting the City’s financial condition.
• Basic Financial Statements (Pages 25-52): Present the City’s core financial information in two formats:
o Government-Wide Financial Statements (Pages 29-31): Provide a broad, long-term perspective of the City’s overall financial position, including long-term obligations such as pension liabilities.
o Fund Financial Statements (Pages 33-52): Present a detailed view of current-year operations and short-term financial accountability across individual fund types. These include the Governmental Fund type such as General Fund and Special Revenue Funds; Proprietary Fund type such as the Enterprise and Internal Service Funds; and Fiduciary Fund type such as the Successor Agency.
• Notes to the Financial Statements (Pages 55-104): Provide detailed explanations of accounting policies, required disclosures, fund balances, liabilities, and other information necessary for a full understanding of the financial statements.
• Supplementary Information (Pages 105-177): Includes additional schedules that provide further context for key financial data, such as pension and other post-employment benefits (OPEB) funding, as well as budget-to-actual comparisons for each fund.
• Statistical Section (Pages 181-207): Presents ten-year historical financial, demographic, and economic data to support long-term financial analysis and fiscal planning.
The City of Chino was 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 ended June 30, 2024. This recognition reflects the City’s ongoing commitment to financial transparency, accountability, and excellence in municipal reporting. The City will again submit its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025, in pursuit of this distinguished award.
Staff, along with the City’s independent auditor, will present the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025, at the City Council meeting. The presentation will provide an overview of the City’s financial position, audit results, and key highlights from the report.
A digital copy of the ACFR is available on the City of Chino website at:
<https://www.cityofchino.org/223/Financial-Reports>
Attachment: June 30, 2025 Annual Comprehensive Financial Report (ACFR)