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SEAL BEACH REDEVELOPMENT AGENCY FINANCIAL STATEMENTS JUNE 30, 2001 Agenda Item Name Paul Yost John Larson Shawn Boyd Patricia Campbell William Doane John B. Bahorski Quinn Barrow Joanne M.Yeo SEAL BEACH REDEVELOPMENT AGENCY JUNE 30, 2001 GOVERNING BOARD Chairperson Vice Chairperson AGENCY OFFICIALS Term Expires 2002 2004 2002 2004 2002 Interim Executive Director City /Agency Attorney Secretary SEAL BEACH REDEVELOPMENT AGENCY TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS' REPORT Financial Audit Report 1 Compliance Audit Report 3 FINANCIAL STATEMENTS Exhibit A - Combined Balance Sheet - All Fund Types and Account Groups 5 Exhibit B - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 6 Exhibit C - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types - Budget and Actual 7 Notes to Financial Statements a SUPPLEMENTARY SCHEDULES Schedule 1 - Combining Project Area Balance Sheet - All Debt Service and Capital Projects Funds 20 Schedule 2 - Combining Project Area Statement of Revenues, Expenditures and Changes in Fund Balances - AII Debt Service and Capital Projects Funds 21 Schedule 3 - Combining Project Area Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Debt Service and Capital Projects Funds 23 Schedule 4 - Computation of Low and Moderate Income Housing Funds Excess /Surplus 25 LL!;LL fie 203 North Brea ao ulevard Sufte 203 6 Brea, CA 92821 -4056 ghaW (714) 672 -0022 LLP Fax (714) 672 -0331 CER71FIE0 PUBLIC ACCOUNTANTS W'A .ISICPas.com LMMIr:WRr M►IMa Bmndon W. Bumowe Donald L. PeAer Michael K. Chu David E. Hale aa�rc DonMtl G. ia. Richard K. Kikuchi Reared Robert C. Lance Richard C. Solt Freal J. Li,Bherd, Jr. Governing Board Seal Beach Redevelopment Agency Seal Beach, CA 90270 INDEPENDENT AUDITORS' REPORT We have audited the component unit financial statements of the Seal Beach Redevelopment Agency as of and for the year ended June 30, 2001 as listed in the accompanying table of contents. These component unit financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these component unit financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the component unit financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the component unit financial statements referred to above present fairly, in all material respects, the financial position of the Seal Beach Redevelopment Agency at June 30, 2001, and the results of its operations for the year then ended in conformity with generally accepted accounting principles and the accounting systems prescribed by the State Controller's Office and State regulations governing redevelopment agencies. MEMBER CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Shc s L. hard LLP CEMM1RED gIOtIC�CCOIm'Ox�6 Governing Board Seal Beach Redevelopment Agency Seal Beach, CA 90270 In accordance with Government Auditing Standards, we have also issued our report dated September 20, 2001 on our consideration of the Seal Beach Redevelopment Agency's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the component unit financial statements taken as a whole. The supplemental schedules listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the component unit financial statements of the Seal Beach Redevelopment Agency. Such information has been subjected to the auditing procedures applied in the audit of the component unit financial statements and, in our opinion, is fairly presented in all material respects in relation to the component unit financial statements taken as a whole. September 20, 2001 Lance 203 IN Brea Boulevarddi Suite 203 .� & Brea, CA 92821 -4056 Lunghard 714) 6714) 67 LLP Fax (714) 672 -0331 CERTIFIED PUBLIC ACCOUNTANTS wwW.lslcpas.com pMMItEIMMT 19SFI1K BrerMOa W. Dun. DonelE L Parker Michael K. Chu David E. Hale mcun. n Donald G. Slater Richard K. Kikuchi Retired Rowe C. lance RIeMPIC. Soil Governing Board Fred nc M LanaKara, Jr. � Seal Beach Redevelopment Agency Seal Beach, CA 90270 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards We have audited the financial statements of Seal Beach Redevelopment Agency as of and for the year ended June 30, 2001, and have issued our report thereon dated September 20, 2001. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the financial statements of the Seal Beach Redevelopment Agency are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance that is required to be reported under Government Auditing Standards. The Agency was required to adopt a five -year implementation plan by December 31, 1999. This was not done as of the date of this report. MEMBER CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Lw ce S-11 6 Wngh rd LLP cEan�,[o aveuc acrou+r�vrs Governing Board Seal Beach Redevelopment Agency Seal Beach, CA 90270 Internal Control Over Financial Reporting In planning and performing our audit, we considered the Seal Beach Redevelopment Agency's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. We noted other matters involving internal control over financial reporting that we have reported to the management of Seal Beach Redevelopment Agency in a separate letter dated September 20, 2001. 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