ODESSA WATER DISTRICT
JUNE 30, 2021
BASIC FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS’ REPORT
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ODESSA WATER DISTRICT
BASIC FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT FOR YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1 BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Position .......................................................................................................... 6 Statement of Activities ............................................................................................................... 7 Fund Financial Statements:
Balance Sheet ............................................................................................................................ 9 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................... 10 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................ 11 Reconciliation of the Government Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ....................................................................................................... 12 Notes to Basic Financial Statements .............................................................................................. 14
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Basis of Accounting ....................................................................................................... 22 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund ...................................................................................... 23 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................................... 24
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5 ODESSA WATER DISTRICT
STATEMENT OF NET POSITION
Governmental
Activities
Assets:
Capital assets not being depreciated $ 85,000
Total Assets 85,000
Liabilities:
Current Liabilities
Due to City of Barstow 47,011
Noncurrent liabilities:
Due to Barstow Successor Agency 45,462
Total Liabilities 92,473
Net Position:
Net investment in capital assets 39,538
Unrestricted (47,011)
Total Net Position $ (7,473)
JUNE 30, 2021
See Notes to Financial Statements.
6 ODESSA WATER DISTRICT
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net (Expense)
Revenue and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Primary Government:
Governmental Activities:
Public works $ 4,070 $ - $ - $ - $ (4,070)
Total Governmental Activities 4,070 - - - (4,070)
Total Primary Government $ 4,070 $ - $ - $ - (4,070)
Change in Net Position (4,070)
Net Position at Beginning of Year (3,403)
Net Position at End of Year $ (7,473)
Program Revenues
See Notes to Financial Statements.
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8 ODESSA WATER DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
General Fund
Assets:
Cash and investments $ -
Total Assets $ -
Liabilities and Fund Balances
Liabilities:
Due to City of Barstow $ 47,011
Due to Successor Agency 45,462
Total Liabilities 92,473
Fund Balances:
Unassigned (92,473)
Total Fund Balances (92,473)
Total Liabilities and Fund Balances $ -
See Notes to Financial Statements.
9 ODESSA WATER DISTRICT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund balances of governmental funds $ (92,473)
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 85,000
Net Position of Governmental Activities $ (7,473)
See Notes to Financial Statements.
10 ODESSA WATER DISTRICT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
General Fund
Expenditures:
Public Works
Fees and Services $ 4,070
Total Expenditures 4,070
Net Change in Fund Balances (4,070)
Fund Balances
Beginning of year (88,403)
End of Year $ (92,473)
See Notes to Financial Statements.
11 ODESSA WATER DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net change in fund balances - total governmental funds $ (4,070) There were no reconciling differences for fiscal year ended June 30, 2021 for the district - Change in Net Position of Governmental Activities $ (4,070) See Notes to Financial Statements.
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23 Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Odessa Water District
City of Barstow, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the general fund information of the Odessa Water District (the District), a component unit of the City of Barstow, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated December 17, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
To the Board of Directors
Odessa Water District
City of Barstow, California
District’s Response to Findings
The District’s response to the findings identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Brea, California
December 17, 2021
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