SRTA FY 2024 25 Communication with Governance DRAFT

This document is a draft from the Shasta Regional Transportation Agency (SRTA) Board of Directors to SRTA's management and Board. It talks about an audit of the SRTA's financial statements for the year ending June 30, 2025. An independent auditor did the audit to make sure the financial statements were fair and followed accounting rules. The auditor found some big risks, like following federal and state grant rules, recognizing revenue, and making sure managers didn't ignore controls. The audit also looked at SRTA's accounting policies and estimates, especially those for pensions and other post-employment benefits (OPEB). The auditor did not find any unusual transactions or sensitive estimates that needed special attention. There were no disagreements with management during the audit, and all mistakes found were fixed. However, the auditor found a big mistake in the previous year's financial statements about how fund balances were classified. This led to a qualified opinion on the audit report because the accounting system could not balance each fund's accounts. The report is only for the Board and management.