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HomeMy WebLinkAbout5.12 Appointments to the City Council 2025 Ad-Hoc Audit Review Committee STAFF REPORT CITY COUNCIL Page 1 of 2 Agenda Item 5.12 DATE: July 15, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Appointments to the City Council 2025 Ad-Hoc Audit Review Committee Prepared by: Wendy Lam, Accounting Manager EXECUTIVE SUMMARY: The City’s independent auditor, Badawi and Associates, ha s commenced the field work necessary to complete the Annual Comprehensive Financial Report for year ending June 30, 2025. The City Council will consider the establishment of an Ad-Hoc Committee consisting of two members of the City Council who will review the audit process and final report with the auditors. STAFF RECOMMENDATION: Confirm the Mayor’s recommendation, which includes her own appointment along with Councilmember John Morada, to the 2025 Ad-Hoc Audit Review Committee. FINANCIAL IMPACT: The cost of the audit was included in the Fiscal Year 2025-26 adopted budget. DESCRIPTION: The independent auditors from the firm Badawi and Associates are required to follow protocols established by the Governmental Auditing Standards Board and issue their directives in documents referenced as the Statement on Accounting Standards, which are applicable to both private and governmental entities. These standards require that the auditors communicate directly with those charged with governance. The Ad-Hoc Audit Review Committee, consisting of two members of the City Council appointed by the Mayor, is established each year for this purpose. After the Committee has had an opportunity to review and discuss the report with the auditors, Staff will prepare an agenda item for action by the entire City Council at a future meeting. Last year, the Committee was composed of former Mayor Michael McCorriston and former 234 Page 2 of 2 Councilmember Janine Thalblum. Mayor Hu has recommended her own appointment along with Councilmember John Morada to the 2025 Ad-Hoc Audit Review Committee. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: None. 235