HomeMy WebLinkAbout2025 Seal Beach ACFR PresentationCity of Seal Beach
AU-C 260 Communication With Those Charge With Governance
For the Year Ended June 30, 2025
Presented by:
Sophia Kuo, CPA, MBA
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)
Required Communications (AU-C 260)
•Our Responsibility in Accordance with Professional Standards
•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.
4
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 101 - Compensated Absences.
•Implementation of GASB 102 - Certain Risk Disclosures.
•Significant Estimates
•Investment Fair Value
•Depreciation and amortization on Capital Assets
•Net Pension Liability
•Net OPEB Liability
5
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 13 – Commitments and Contingencies
•Note 14 – Individual Fund Disclosure
•Note 15 – Restatements
•Misstatements
•No material uncorrected misstatement
6
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.
7
8
OVERVIEW OF THE FINANCIAL
STATEMENTS
9
City of Seal BeachGovernment-Wide SummaryAs of June 30, 2025 and 2024
2024
2025 (as restated)Change30283028
Net Position:
Governmental-Activities 104,064,000$ 102,267,000$ 1,797,000$
Business-type Activities 46,555,000 46,144,000 411,000
Total Net Position 150,619,000 148,411,000 2,208,000
10
City of Seal BeachGovernment-Wide Summary (Continued)For the Year Ended June 30, 2025
Governmental
Activities
Business-Type
Activities Total
Program Expenses 54,562,000$ 9,018,000$ 63,580,000$
Program Revenues 14,555,000 8,836,000 23,391,000
Net Cost of Services (40,007,000) (182,000) (40,189,000)
General Revenues 41,804,000 593,000 42,397,000
Change in Net Position 1,797,000$ 411,000$ 2,208,000$
11
City of Seal BeachGeneral Fund SummaryFor the Year Ended June 30, 2025
Revenue 51,562,000$
Expenditures 46,877,000
Revenue over Expenditures 4,685,000
Net Other Financing Sources (Uses)(1,805,000)
Net Change in Fund Balance 2,880,000
Fund Balance at July 1, 2024 39,469,000
Fund Balance at June 30, 2025 42,349,000$
12
City of Seal BeachCalPERS Pension Plan
Misc Safety Total 2024
Total Pension Liability 59,326,000$ 113,169,000$ 172,495,000$ 165,989,000$
Fiduciary Net Position 41,544,000 79,383,000 120,927,000 113,520,000
Net Pension Liability 17,782,000$ 33,786,000$ 51,568,000$ 52,469,000$
Funding Ratio 70.03%70.15%70.10%68.39%
Contribution Made 2,031,000$ 4,644,000$ 6,675,000$ 6,078,000$
2025
13
City of Seal BeachOther Postemployment Benefits (“OPEB”)
2025 2024
Total OPEB Liability 11,403,000$ 11,553,000$
Fiduciary Net Position 8,861,000 7,834,000
Net OPEB Liability 2,542,000$ 3,719,000$
Funding Ratio 77.71%67.81%
Contribution Made 816,000$ 965,000$
14
AUDIT RESULTS
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
15
16
HQ - ORANGE COUNTY
6 Hutton Centre Drive
Suite 1200
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
1980 Festival Plaza Drive
Suite 300
Las Vegas, NV 89135
SACRAMENTO
1511 Corporate Way
Suite 220
Sacramento, CA 95831
PHOENIX
2 N. Central Avenue
Suite 1800
Phoenix, AZ 85004