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Page 3 of 7 appropriation limit for FY 2023/24 in June 2023. • The Auditors’ Communications Letter includes the auditors’ letter, addressed to the City, communicating their responsibilities in performing the audit and, if any, significant findings and issues detected during the audit. The report references the City of Pleasanton Management Representation Letter, addressed to the auditors, communicating management’s opinion of the City’s financial condition, internal controls, and adherence to laws and regulations. • The Independent Auditors’ Report on Internal Control includes a review of the City’s internal controls based on the audits of the ACFR, federal grants, and Measures B, BB, and F financial reports. If the auditor identifies deficiencies, they make recommendations to improve internal controls. • The Popular Annual Financial Report (PAFR) is a concise and simplified overview of the financial data contained in the ACFR. The GFOA established standards for the Popular Annual Financial Report in 1991 to encourage and assist state and local governments to extract information from their annual comprehensive financial report to produce financial reports specifically designed to be accessible and easily understandable to the public and other interested parties without a background in public finance. DISCUSSION ACFR Preparation Guidelines and Contents The City’s ACFR is prepared in accordance with the guidelines and standards established by the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). The ACFR includes the following major sections and information: Introductory Section • Letter of Transmittal – provides information about the City’s profile, economic conditions and outlook, and major initiatives and accomplishments. Financial Section (key section of the ACFR) • Independent Auditors’ Report – report card on the truth and fairness of the City’s financial statements. • Management’s Discussion and Analysis – provides an overview of the City’s activities and financial performance. • Basic Financial Statements – present the City’s financial results and conditions. The key reports include balance sheet, income statement, and cash flow statement. 1. Government-wide Financial Statements – provide a broad overview of the City’s finances, in a manner like private-sector businesses. 2. Fund Financial Statements – focus on near-term inflows and outflows of spendable resources. Useful information in determining what financial resources are available in the near future to finance the City’s programs. 3. Notes to Financial Statements – an integral part of the financial statements that Page 164 of 554