Control or area.

So as a result, no information is provided on the areas that were not examined.

So for the accountability audit, we utilized a risk-based approach during the planning procedures that we conducted.

And so included on the slide are the areas that we identified for further testing.

And while we're prepared to discuss each area with you today, we would just like to highlight some of the main areas for you.

So as I mentioned, during our planning procedures, we noted that there were some citizen concerns over payroll, compliance with land transfer, and compliance with the regional coalition of housing or the ARC program.

And so we selected these areas for further review and noted that most of the concerns were not substantiated.

However, we did have some minor recommendations related to payroll and then specifically with the executive sessions and ensuring that the reason for entering the executive session is for an allowable reason.

So additionally, with state law that requires that we review the city self-insurance program, which we are required to review every two years.

So this audit, we review the city's health and welfare, unemployment compensation, and workers' compensation, where we review the city's processes to ensure that those programs were in compliance.

And then lastly, you'll see here are the two areas that we review on an annual basis, which is the open public meetings where we review for compliance with minutes, meetings and executive session requirements, and then the financial condition where we review for any indication of financial distress.

So next, we'll walk you through our management letter over the annual report filing.

And before we begin, please note that management letters are not included in our audit reports but are referenced.

So while this is a public document, this item will not be published on our website.

So we've included a copy of the cover page, followed by the first page of the management letter on the slide.

And for your reference, you'll find the full version of this letter included in your exit packet on page 12.

And so just as a summary, uh state law requires the city to submit an annual report with accurate summarized financial information to the state auditor's office within 150 days after its fiscal year end.

So due to significant staff turnover, the city did not submit the required annual reports to our office timely for fiscal years 2022 and 2023.

So the city filed its annual reports 224 days and 317 days late, respectively.

So in this letter, we recommend the city establish internal controls to ensure on time financial reporting in accordance with state law.

And so before we wrap up our presentation, we have some a few additional items that we'd like to share.

So with our office's online financial finance intelligence tool or what we consider fit, you'll find the data you need to help your government make better business decisions and improve its financial position.

You'll find that this tool takes Redmond and other cities' financial data that was submitted to us as part of the annual filing report, and it transforms that data into easy to understand measures.

So evaluating the financial health of your local governments is also an important audit procedure and one that you can expect your auditors to perform during each audit.

So one of the ways our office reviews financial condition is through the use of this fit tool.

So while just a starting point in the audit process, our staff may inquire if there are any cautionary or concerning indicators for your government to better understand the important factors impacting your government's financial health.

And so here, if you'd like, uh feel free to scan the QR code to open up the page to save it for later, or if you'd like to start exploring now.

Uh so here on the slide are the fit results for for the city of Redmond.

Um first, it's important to note that having a particular financial health outlook in our fit tool uh does not necessarily indicate a financial stability or stress.

So indicators are designed to alert viewers to potential financial health concerns uh by comparing the ratios to our recommended thresholds.

So here you'll see the particular area for potential evaluation uh is related to fund 402, the UPB water wastewater fund.

Um it does show as one warning indicator, which uh if you dig deeper is related to the current ratio.

However, we did communicate this uh with the city, and it is actually uh data entry error on this on the city schedule.

So once the the data entry error has been corrected, uh you'll find that this warning indicator will disappear.

And so next here, I'll pass it off to Priscilla for our closing remarks.

Thanks, Angela.

So just a few things to bring to your attention to conclude our presentation.

The cost of our engagement is expected to be within the estimate previously provided.

And your next audit, which is the fiscal year 2024 audit has started in January 2026 this year.

That's this year, sorry.

It covers covers a one-year accountability financial statement and uh federal single audit.

And we expect the city's report to be published on our website in the next one to two weeks.

You can now sign up to receive email notifications on when report has been released, as well as other news articles, including resources our office publishes.

The sign-up link is provided in the exit packet.

Um, in addition, we'll also be sending you a customer service survey.

We encourage you SOLS, anyone else that participated in audit to complete this survey.

Uh, your feedback helps us improve our services and better meet your needs.

So please feel free to forward the survey on to others who may wish to uh um provide feedback as well.

And now I'll turn it back to Angela to close us out with some final thanks.

Thanks, Priscilla.

Um, so here we'd really we'd like to take a moment to thank uh Nita Hermoso, uh, Stephanie Wu uh is the soup finance supervisor, and Theretha Nara, the deputy finance director, um, but also all of the city staff that have been part of our um audit process.

We really appreciate their cooperation and assistance uh in providing the support, but also we just really like to thank the city for its ongoing commitment to building the relationship with the state auditor's office.

So this concludes our presentation to the city for the fiscal year 2022-2023 accountability audit results.

Uh, we just like to thank everyone for your time today and for your participation in this meeting.

And at this point, we'd like to open it up for any uh last comments or questions.

Thank you, Angela.

We really appreciate you and your team being here today.

Before we go to questions, I just want to confirm um, do you have additional information for us today on the 2024 financial audit entrance conference, or was that included in that last part of your uh your presentation here?

Uh no, we should have we will have a an additional uh PowerPoint presentation to go over the entrance.

Okay.