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Receive the audit report of the First 5 Solano Children and Families Commission for the fiscal year ended June 30, 2025
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _ X_
DEPARTMENTAL RECOMMENDATION:
First 5 Solano recommends the Board of Supervisors receive the audit report of the First 5 Solano Children and Families Commission for the fiscal year ended June 30, 2025.
SUMMARY/DISCUSSION:
In accordance with Health & Safety Code Section 130150, First 5 Solano is required to conduct an annual audit of its functions and receive its audit report for the preceding fiscal year by November 1. The report must be filed with both the State Controller’s Office and First 5 California for inclusion in the State Commission’s consolidated report by October 31, 2025. The report has been filed in accordance.
First 5 Solano has contracted with Eide Bailey to conduct the Commission’s audit. The fiscal year 2024/25 Financial and Compliance Audit was conducted in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States, and state requirements contained in the Standards and Procedures for Audits of Local Entities Administering the California Children and Families Act.
As a result of the audit, three required reports were issued:
• Independent Auditor’s Report - Issued an unmodified (clean) opinion, indicating that the financial statements present fairly, in all material respects, the financial position of the Commission in conformity with generally accepted accounting principles (GAAP).
• Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters - No instances of noncompliance were identified.
• Independent Auditor’s Report on State Compliance - The audit disclosed one finding classified as a significant deficiency (a reduction from a prior-year material weakness).
Audit Finding:
2025-001 Procurement (Significant Deficiency, Instance of Noncompliance with State Compliance)
The audit identified that two of four contracts tested did not include the required sole-source justification documentation as outlined in County procurement policy.
• Cause: The Commission did not consistently follow procurement documentation requirements.
• Effect: Contracts were entered into without maintaining complete documentation supporting the sole-source justification.
• Recommendation: Strengthen procedures to ensure all procurement documentation, approvals, and steps are completed in accordance with Solano County’s contracting protocols.
• Management Response: Management agrees with the finding and will enhance internal controls and staff training to ensure all sole-source documentation is maintained in accordance with County policies.
The full audit report can be found in attachment A.
FINANCIAL IMPACT:
The acceptance of the audit report has no financial impact. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2025/26 Adopted Budget.
ALTERNATIVES:
The Board of Supervisors could elect not to receive the report as presented. This is not recommended, as it is legislatively required for the Board to receive the audit within two months of receipt of the audit.
OTHER AGENCY INVOLVEMENT:
The First 5 Solano Children and Families Commission received the audit on October 29, 2025.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION