HomeMy WebLinkAboutACFR Audit PresentationCity of Seal Beach
Annual Comprehensive Financial Report
AU-C 260 Communication With
Those Charged With Governance
For the Year Ended June 30, 2023
February 12, 2024
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CONTENTS
• Required Communications (AU-C 260)
• Overview of Financial Statements
• Key Pension and OPEB Information
• Audit Results
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Required Communications (AU-C 260)
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•Our Responsibility in Accordance with Professional Standards
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Required Communications (AU-C 260)
• Form and express an opinion about whether the financial statements that have been
prepared by management with your oversight are presented fairly, in all material respects,
in accordance with accounting principles generally accepted in the United States of
America
• Plan and perform the audit to obtain “reasonable” assurance (not “absolute” assurance)
about whether the financial statements are free of material misstatements
• Consider internal control over financial reporting. Such considerations are solely for the
purpose of determining our audit procedures and not to provide any assurance concerning
such internal control
• Conclude there are no conditions or events that raise substantial doubt about the City’s
ability to continue as a going concern.
• Communicate with those charged with governance
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Required Communications (AU-C 260)
•Ethics and Independence
• Complied with ALL relevant ethical requirements regarding independence
•Significant Accounting Policies
• The City of Seal Beach disclosed all significant accounting policies in Note 1 to the financial
statements.
• Implementation of GASB 96 - Subscription-Based Information Technology Arrangements
•Significant Estimates
• Investment Fair Value
• Depreciation and amortization on Capital Assets
• Net Pension Liability
• Net OPEB Liability
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Required Communications (AU-C 260)
•Sensitive Disclosures
• Note 1 – Summary of Significant Accounting Policies
• Note 9 – Defined Benefit Pension Plans
• Note 10 – Other Postemployment Benefits (“OPEB”) Plan
• Note 14 – Individual Fund Disclosure
•Misstatements
• No material uncorrected misstatement
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Required Communications (AU-C 260)
•Consultation with Other Accountants
• Management informed us that, and to our knowledge, there were no consultations with
other accountants regarding auditing and other matters.
•Significant Difficulties
• We encountered no significant difficulties in dealing with management.
•Disagreement with Management
• We did not have any disagreement with management in terms of accounting treatments nor
audit procedures performed.
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OVERVIEW OF THE FINANCIAL
STATEMENTS
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City of Seal BeachGovernment-Wide SummaryAs of June 30, 2023 and 2022
2023 2022 Change30283028
Total Net Position 96,905,000$ 83,196,000$ 13,709,000$
Governmental Activities
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City of Seal BeachGovernment-Wide Summary (Continued)As of June 30, 2023 and 2022
2023 2022 Change30283028
Total Net Position 44,667,000$ 44,522,000$ 145,000$
Business-Type Activities
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City of Seal BeachGovernment-Wide Summary (Continued)For the Years Ended June 30, 2023 and 2022
2023 2022 Change
Program Expenses 37,465,000$ 49,699,000$ (12,234,000)$
Program Revenues 12,828,000 17,561,000 (4,733,000)
Net Cost of Services (24,637,000) (32,138,000) 7,501,000
General Revenues and Transfers 38,347,000 32,312,000 6,035,000
Change in Net Position 13,710,000$ 174,000$ 13,536,000$
Governmental Activities
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City of Seal BeachGovernment-Wide Summary (Continued)For the Years Ended June 30, 2023 and 2022
2023 2022 Change
Expenses 7,544,000$ 8,387,000$ (843,000)$
Program revenues 8,132,000 8,257,000 (125,000)
Net Cost of Services 588,000 (130,000) 718,000
General Revenues and Tansfers (444,000) (516,000) 72,000
Change in Net Position 144,000$ (646,000)$ 790,000$
Business-Type Activities
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City of Seal BeachGeneral Fund SummaryFor the Year Ended June 30, 2023
Revenue 46,256,000$
Expenditures 41,239,000
Revenue over Expenditures 5,017,000
Net Transfers (2,041,000)
Net Change in Fund Balance 2,976,000
Fund Balance at July 1, 2022 34,349,000
Fund Balance at June 30, 2023 37,325,000$
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City of Seal BeachCalPERS Pension Plan
Misc Safety 2023 2022
Total Pension Liability 55,349,000$ 104,384,000$ 159,733,000$ 151,159,000$
Fiduciary Net Position 38,532,000 71,896,000 110,428,000 123,279,000
Net Pension Liability 16,817,000$ 32,488,000$ 49,305,000$ 27,880,000$
Funding Ratio 69.62% 68.88% 69.13% 81.56%
Contribution Made 1,731,000$ 3,916,000$ 5,647,000$ 5,219,000$
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City of Seal BeachOther Postemployment Benefits (“OPEB”)
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2023 2022
Total OPEB Liability 13,421,000$ 12,510,000$
Fiduciary Net Position 7,130,000 7,958,000
Net OPEB Liability 6,291,000$ 4,552,000$
Funding Ratio 53.13% 63.61%
Contribution Made 981,000$ 990,000$
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AUDIT RESULTS
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Audit Results
•Financial Statements
• Unmodified opinion
• Financial Statements are fairly presented in all material respects
• Significant accounting policies have been consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the financial statements
•AU-C 265, Communicating Internal Control Related Matters Identified in an
Audit
• None Reported
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