RECOMMENDED ACTION

City Council approve:

1. The Component Unit Financial Statements and the Redevelopment Agency State Controller

Report for fiscal year ending June 30, 2011.

2. The Comprehensive Annual Financial Report (CAFR) and Audit Committee Letter for fiscal

year ending June 30, 2011.

BACKGROUND

The City's independent audit firm, Caporicci & Larson, Inc., has completed the City's and Agency's annual audit for fiscal year ending June 30, 2011. Caporicci & Larson, Inc., conducted the audit in accordance with generally accepted auditing standards, whereby an audit plan was prepared and followed to obtain reasonable assurance the City's and Agency's financial statements were free from material misstatements. The audit included a review, on a test basis, of documents supporting the amounts and disclosures in the financial statements. The audit also included assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. No significant findings were noted as a result of the audit.

In previous years, the Redevelopment Agency of the City of Santa Clarita approved the audit of the Redevelopment Agency financial statements and State Controller Report. With the dissolution of the Redevelopment Agency, Council will approve these financial statements and State Controller Report in its capacity as the Successor Agency of the Redevelopment Agency of the City of Santa Clarita.

The Comprehensive Annual Financial Report reflects the City's strong financial condition with continued growth of the General Fund balance.

Based on the audit performed, Caporicci & Larson, Inc., issued an unqualified "clean" audit opinion letter. The opinion reflects the best level an organization can receive on its financial statements. The letter is identified as the "Independent Auditor's Report" in the City's CAFR for fiscal year ending June 30, 2011.

In accordance with professional standards, an Audit Committee Letter has been prepared by Caporicci & Larson, Inc., to provide specific information related to the audit scope and performance. No items of concern were noted by the auditors.

ALTERNATIVE ACTIONS

No feasible alternative action has been identified by staff.

FISCAL IMPACT

None.

ATTACHMENTS

RDA Financial Statements FY10-11 - available in the City Clerk's Reading File
RDA State Controller's Report FY10-11 - available in the City Clerk's Reading File
FY 2010-11 Comprehensive Annual Financial Report - available in the City Clerk's Reading File
Audit Committee Letter FY10-11 - available in the City Clerk's Reading File