The URL can be used to link to this page

Home My WebLink AboutACFR 2024 Seal Beach PresentationCity of Seal Beach AU-C 260 Communication With Those Charge With Governance For the Year Ended June 30, 2024 Presented by: Frances Kuo, CPA, CGMA Engagement Partner 2 CONTENTS •Required Communications (AU-C 260) •Overview of Financial Statements •Key Pension and OPEB Information •Audit Results 2/24/2025 3 Required Communications (AU-C 260) 2/24/2025 4 •Our Responsibility in Accordance with Professional Standards 2/24/2025 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 5 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 100 - Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 •Significant Estimates •Investment Fair Value •Depreciation and amortization on Capital Assets •Net Pension Liability •Net OPEB Liability 2/24/2025 6 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 •Note 15 – Prior Period Adjustments •Misstatements •No material uncorrected misstatement 2/24/2025 7 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. 2/24/2025 8 OVERVIEW OF THE FINANCIAL STATEMENTS 2/24/2025 9 City of Seal BeachGovernment-Wide SummaryAs of June 30, 2024 and 2023 2023 2024 (as restated)Change30283028 Net Position: Governmental-Activities 100,459,000$ 95,310,000$ 5,149,000$ Business-type Activities 43,533,000 44,901,000 (1,368,000) Total Net Position 143,992,000 140,211,000 3,781,000 2/24/2025 10 City of Seal BeachGovernment-Wide Summary (Continued)For the Year Ended June 30, 2024 Governmental Activities Business-Type Activities Total Program Expenses 49,498,000$ 10,481,000$ 59,979,000$ Program Revenues 13,499,000 8,712,000 22,211,000 Net Cost of Services (35,999,000) (1,769,000) (37,768,000) General Revenues 41,148,000 401,000 41,549,000 Change in Net Position 5,149,000$ (1,368,000)$ 3,781,000$ 2/24/2025 11 City of Seal BeachGeneral Fund SummaryFor the Year Ended June 30, 2024 Revenue 50,338,000$ Expenditures 44,151,000 Revenue over Expenditures 6,187,000 Net Transfers (4,305,000) Net Change in Fund Balance 1,882,000 Fund Balance at July 1, 2023, as restated 37,587,000 Fund Balance at June 30, 2024 39,469,000$ 2/24/2025 12 City of Seal BeachCalPERS Pension Plan Misc Safety Total 2023 Total Pension Liability 57,305,000$ 108,684,000$ 165,989,000$ 159,733,000$ Fiduciary Net Position 39,480,000 74,040,000 113,520,000 110,428,000 Net Pension Liability 17,825,000$ 34,644,000$ 52,469,000$ 49,305,000$ Funding Ratio 68.89%68.12%68.39%69.13% Contribution Made 1,782,000$ 4,296,000$ 6,078,000$ 5,647,000$ 2024 2/24/2025 13 City of Seal BeachOther Postemployment Benefits (“OPEB”) 2/24/2025 2024 2023 Total OPEB Liability 11,553,000$ 13,421,000$ Fiduciary Net Position 7,834,000 7,130,000 Net OPEB Liability 3,719,000$ 6,291,000$ Funding Ratio 67.81%53.13% Contribution Made 965,000$ 981,000$ 14 AUDIT RESULTS 2/24/2025 15 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 2/24/2025 HQ - ORANGE COUNTY 200 E. Sandpointe Avenue Suite 600 Santa Ana, CA 92707 SAN DIEGO 4660 La Jolla Village Dr. Suite 100 San Diego CA 92122 BAY AREA 2121 North California Blvd. Suite 290 Walnut Creek, CA 94596 LAS VEGAS 1050 Indigo Drive Suite 110 Las Vegas, NV 89145 PHOENIX 4742 North 24th Street Suite 300 Phoenix, AZ 85016 HQ - ORANGE COUNTY 200 E. Sandpointe Avenue Suite 600 Santa Ana, CA 92707 SAN DIEGO 4660 La Jolla Village Drive Suite 100 San Diego, CA 92122 SACRAMENTO 1511 Corporate Way Suite 220 Sacramento, CA 95831 LAS VEGAS 1980 Festival Plaza Drive Suite 300 Las Vegas, NV 89134 PHOENIX 2 N. Central Avenue Suite 1800 Phoenix, AZ 85004 WALNUT CREEK 2121 North California Boulevard Suite 290 Walnut Creek, CA 94596