2021-05-04 CC Agenda Packet - ITEM #6 - PRESENTATION - Comprehensive FY EndCity of EL==�
Presentation _
Council
May 4, 2021
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Outline
• Scope of services for year ended September 30, 2020
• Auditor' opinion and reports
• Communication with those charged with governance
May 4, 2021
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Scope of Service
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■ Audit of the annual financial statements for the year ended September 30, 2020
in accordance with Generally Accepted (US) and Governmental Auditing
Standards
• Audit of federal grant expenditures under the Uniform Guidance (in process)
• Agreed -Upon -Procedures related to the City's calculation of the GANN limit
May 4, 2021
Auditors' Opinion
May 4, 2021
• Audit of financial statements for the year ended
September 30, 2020
• Management is responsible for preparation and fair
presentation of the financial statements
• Auditor's responsibility is to express opinions on the
financial statements
• Standards require that audit is planned and performed
to obtain reasonable assurance that financial
statements are free from material misstatement
• Audit evidence is sufficient and appropriate to provide
a basis of our audit opinions
■ Unmodified opinions for September 30, 2020
Management Letter
0 Material Weakness
— Material adjustments from audit
0 Water Fund Revenue and Unbilled Utility
Receivables
0 Significant Deficiencies
— Accounting Manual
— Bank Reconciliations
— Fund Balances
— Journal Entries
May 4, 2021
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Communication with Those Charged with
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Governance Y
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• The planned scope and timing of the September 30, 2020 audit was
communicated through the engagement letter dated June 8, 2020,
and planning letter dated June 18, 2020.
Management is responsible for the selection and use of appropriate
accounting policies, which are described in note 1 to the financial
statements.
Significant estimates reported in the financial statements include
the following:
— Required contributions, pension expense, net pension liability and - --
deferred outflows/inflows of resources of CAPERS and PARS defined
benefit pension plan
— OPEB expense, net OPEB liability and deferred outflows/inflows of
resources of CalPERS defined benefit pension plan _
— Claims payable liabilities - - - - -
May 4, 2021
Communication with Those Charged with
Governance
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• The most sensitive disclosures affecting the financial
statements are noted in the letter
• Difficulties during audit — none.
• Corrected misstatements are discussed in the letter
• No disagreements arose during the course of our audit.
• Representations related to audit obtained from
management in a letter dated March 29, 2021.
• To our knowledge, the City did not consult with other
accountants regarding auditing or accounting matters.
May 4, 2021
Nitin Patel, CPA
nitin.patel@claconnect.com
WEALTH ADVISORY I OUTSOURCING I AUDIT, TAX, AND CONSULTING
nvestment .jdvjsc)ry services are offered through Chfu nl --Allen Wralth Adv-- LLC w sFC registered inve,tmenl a fvrso,