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BARSTOW FIRE PROTECTION DISTRICT
Basic Financial Statements and Independent Auditors’ Report June 30, 2023
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 - Governmental Funds ..................................................................................................... 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 ..................................................................................................................... 34 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund ..................................................................................................... 35 Schedule of Proportionate Share of the Net Pension Liability ...................................................................... 36 Schedule of Plan Contributions – Pension .................................................................................................... 38 Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 40 Schedule of Contributions – OPEB ............................................................................................................... 42 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.................................................................. 44
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
To the Board Of Directors
Barstow Fire Protection District
City of Barstow, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, and the general fund of the Barstow Fire Protection District (the “District”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and the general fund of the District, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter Regarding Going Concern
The accompanying financial statements have been prepared assuming that the District will continue as a going concern. As discussed in Note 10 to the financial statements, the District has suffered recurring losses from operations and has a deficit fund balance of $3,668,043 in the General Fund and a deficit net position of $10,460,532 on the government-wide financial statements that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 10. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
To the Board Of Directors
Barstow Fire Protection District
City of Barstow, California
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison schedules for the General Fund, and the required pension and other postemployment benefits schedules, as listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 To the Board Of Directors
Barstow Fire Protection District
City of Barstow, California
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2023, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering District’s internal control over financial reporting and compliance.
Brea, California
December 28, 2023
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5 BARSTOW FIRE PROTECTION DISTRICT
Statement of Net Position
Governmental
Activities
Assets:
Cash and investments $ 888,739
Receivables:
Accounts 59,856
Leases 242,191
Capital assets not being depreciated/amortized 45,129
Capital assets, net of depreciation/amortization 475,435 Total Assets 1,711,350
Deferred Outflows of Resources:
Deferred employer pension contributions 1,321,109
Deferred employer OPEB contributions 64,217
Deferred outflow - pension 5,597,620
Deferred outflow - OPEB 355,479
Total Deferred Outflows of Resources 7,338,425
Liabilities:
Accounts payable 139,930
Accrued liabilities 164,391
Leases payable, due within one year 7,267
Due to other governments 4,317,392
Compensated absences, due within one year 104,856
Noncurrent liabilities:
Compensated absences, due in more than one year 157,284 Net pension liability 7,854,204
Net OPEB liability 3,288,280
Total Liabilities 16,033,604
Deferred Inflows of Resources:
Deferred inflow - pension 1,227,909
Deferred inflow - OPEB 1,889,013
Deferred inflow - leases 237,116
Total Deferred Inflows of Resources 3,354,038
Net Position:
Net investment in capital assets 513,297
Unrestricted (10,851,164)
Total Net Position $ (10,337,867)
June 30, 2023
See Notes to Financial Statements.
6 BARSTOW FIRE PROTECTION DISTRICT
Statement of Activities
Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Primary Government:
Governmental Activities:
Public safety $ 1,622,225 $ 4,015,047 $ 209,330 $ 2,602,152 - $ Total Governmental Activities 4,015,047 1,622,332 209,330 - 2,602,045 Total Primary Government $ 1,622,332 $ 4,015,047 $ 209,330 $ 2,602,045 - General Revenues:
Taxes:
Property taxes, levied for general purpose 5,823,748
Use of money and property 6,018
Total General Revenues 5,811,958
Change in Net Position 8,414,003
Net Position at Beginning of Year (18,751,870)
Net Position at End of Year (10,337,867) $
Program Revenues
See Notes to Financial Statements.
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8 BARSTOW FIRE PROTECTION DISTRICT
Balance Sheet
Governmental Funds
June 30, 2023
General
Assets:
Cash and investments $ 888,739
Receivables:
Accounts 59,856
Leases 242,191
Total Assets $ 1,190,786
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 139,930
Accrued liabilities 164,391
Due to City of Barstow 4,317,392
Total Liabilities 4,621,713
Deferred Inflows of Resources:
Leases 237,116
Total Deferred Inflows of Resources 237,116
Fund Balances:
Nonspendable:
Unassigned (3,668,043)
Total Fund Balances (3,668,043)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 1,190,786
See Notes to Financial Statements.
9 BARSTOW FIRE PROTECTION DISTRICT
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Fund balances of governmental funds $ (3,668,043)
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. 520,564
Leases payable and compensated absences
that have not been included in the governmental fund activity:
Leases payable $ (7,267)
Compensated Absences (269,407) (262,140)
Employer contributions for pension were recorded as expenditures in the governmental funds. However, in the Government-Wide Financial Statements, these contributions are deferred. 1,321,109
Employer contributions for OPEB were recorded as expenditures in the governmental funds. However, in the Government-Wide Financial Statements, these contributions are deferred. 64,217
In the Government-Wide Financial Statements, certain differences between actuarial amounts and actual results for pension are deferred and amortized over a period of time, however these differences do not impact the Governmental Funds Balance Sheet:
Deferred outflows of resources - pension 5,597,620
Deferred outflows of resources - OPEB 355,479
Deferred inflows of resources - pension (1,227,909)
Deferred inflows of resources - OPEB (1,889,013) 2,836,177 Long-term liabilities are not due and payable in the current period and therefore they are not reported in the funds:
Net OPEB obligation (3,288,280)
Net pension liability (7,854,204) (11,142,484)
Net Position of Governmental Activities $ (10,337,867)
See Notes to Financial Statements.
10 BARSTOW FIRE PROTECTION DISTRICT
Statement of Revenues,
Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2023
General
Revenues:
Taxes $ 5,823,748
Licenses and permits 3,956
Intergovernmental 209,330
Contributions from City of Barstow 3,881,535
Use of money and property 6,018
Miscellaneous 129,556
Total Revenues 10,054,143
Expenditures:
Current - public safety
Salaries and benefits 6,400,913
Services and supplies 2,120,519
Capital outlay 188,949
Debt service:
Lease principal 17,808
Lease interest 107
Total Expenditures 8,728,296
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,325,847
Net Change in Fund Balances 1,325,847
Fund Balances
Beginning of year (4,993,890)
End of Year $ (3,668,043)
See Notes to Financial Statements.
11 BARSTOW FIRE PROTECTION 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, 2023
Net change in fund balances - total governmental funds 1,325,847 $ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. The activity is reconciled as follows:
Capital outlay $ 36,000
Depreciation (129,051) (165,051) $
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Proceeds from debt issuances are reported as a revenue in the governmental funds, but the issuance increases long-term liabilities in the statement of net position.
Lease principal 17,809
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 169,141
Employer contributions for pension were recorded as expenditures in the governmental funds. However,in the Government-Wide Financial Statements, these contributions are deferred. 7,521,996
Employer contributions for OPEB were recorded as expenditures in the governmental funds. However,in the Government-Wide Financial Statements, these contributions are deferred. (491,739)
Change in Net Position of Governmental Activities $ 8,414,003 See Notes to Financial Statements.
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34 BARSTOW FIRE PROTECTION DISTRICT
Budgetrary Comparison Schedule
Barstow Fire Protection District General Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Resources (Inflows):
Taxes $ 4,964,950 4,964,950 $ 5,823,748 $ 858,798 $
Licenses and permits 1,000 2,351 3,956 1,605
Intergovernmental 102,000 209,353 209,330 (23)
Use of money and property 8,000 10,314 6,018 (4,296)
Miscellaneous - 5,294 129,556 124,262
Contributions from City of Barstow 3,725,746 4,001,023 3,881,535 (119,488) Amounts Available for Appropriations 8,801,696 9,193,285 10,054,143 860,858 Charges to Appropriation (Outflow):
Public safety
Salaries and benefits 6,151,700 7,116,131 6,400,913 715,218 Services and supplies 2,059,552 2,195,602 2,120,519 75,083 Capital outlay 231,000 210,800 188,949 21,851
Debt service:
Lease principal - - 17,808 (17,808)
Lease interest - - 107 (107)
Total Charges to Appropriations 8,442,252 9,522,533 8,728,296 794,237 Net Change in Fund Balance $ 359,444 $ (329,248) 1,325,847 $ 1,655,095 FUND BALANCE:
Beginning of year (4,993,890)
End of year $ (3,668,043)
35 BARSTOW FIRE PROTECTION DISTRICT
San Bernardino County Employees' Retirement Association (SBCERA) Schedule of Proportionate Share of the Net Pension Liability As of June 30, For the Last Ten Fiscal Years(1)
2023 2022 2021 2020
Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Proportion of the Net Pension Liability 0.338% 0.640% 0.421% 0.457% Proportionate Share of the Net Pension Liability $ 8,433,660 7,854,204 $ 16,891,227 $ $ 12,382,040 Covered Payroll $ 2,430,284 2,550,102 $ 2,045,831 $ $ 1,890,826 Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 308.00% 347.02% 825.64% 654.85% Plan Fiduciary Net Position $ 45,633,022 29,379,425 $ 33,270,269 $ $ 33,532,575 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 54.34% 84.40% 66.33% 73.03%
Notes to Schedule:
Changes of Assumptions: None
Benefit Changes: None
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.
36 2019 2018 2017 2016
6/30/2018 6/30/2017 6/30/2016 6/30/2015
0.498% 0.378% 0.518% 0.638%
$ 12,626,176 $ 9,958,070 $ 12,781,554 $ 12,395,608
$ 1,816,148 $ 1,776,774 $ 2,518,304 $ 2,036,785
695.22% 560.46% 507.55% 608.59%
$ 34,034,011 $ 24,486,977 $ 18,856,232 $ 20,207,792
72.94% 71.09% 76.86% 80.98%
37 BARSTOW FIRE PROTECTION DISTRICT
San Bernardino County Employees' Retirement Association (SBCERA) Schedule of Plan Contributions
As of June 30, For the Last Ten Fiscal Years(1)
2023 2022 2021 2020
Actuarially Determined Contribution $ 2,141,231 1,321,109 $ 2,029,361 $ $ 1,760,542 Contribution in Relation to the Actuarially Determined
Contribution (2,141,231) (1,321,109) (2,009,357) (1,760,542) Contribution Deficiency (Excess) $ - - $ 20,004 $ $ -
Covered-Employee Payroll 2,550,102 2,605,075 2,430,284 2,045,831 Contributions as a Percentage of Covered-Employee
Payroll 50.71% 83.97% 82.68% 86.06%
Note to Schedule:
Valuation Date: June 30, 2022
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry age normal cost method
Amortization method Level Percent of pay (2.75% payroll growth assumed) Remaining amortization period 20 years
Assets valuation method
Inflation 3.00% per year
Salary Increases
Investment rate of return
Retirement age 53 years
Mortality Pub-2010 Amount-Weighted Above-Median Mortality Table Market value of assets less unrecognized returns from each of the last five years.
2.75% inflation per year, plus real across-the-board salary increase of
0.50%, plus merit and promotion increases.
7.25% net of pension plan investment expense, including inflation. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown. 38 2019 2018 2017 2016
$ 1,625,725 $ 1,704,307 $ 1,258,947 $ 1,407,336
(1,625,725) (1,704,307) (1,258,947) (1,407,336)
$ - - $ - $ $ -
1,890,826 1,816,148 1,776,774 2,518,304
85.98% 93.84% 70.86% 55.88%
39 BARSTOW FIRE PROTECTION DISTRICT
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years(1)
2023 2022 2021
Measurement Date 6/30/2022 6/30/2021 6/30/2020
Changes in Total OPEB Liability
Service cost $ 573,551 633,234 $ 544,393 $
Interest on the total OPEB liability 109,198 127,973 111,849 Plan experience (705,883) - -
Changes in assumptions (1,437,109) 208,292 72,167
Changes in benefit terms - - -
Benefit payments (45,608) (33,966) (19,568)
Net change in total OPEB liability (740,285) 169,967 708,841 Total OPEB liability - beginning 4,353,123 4,183,156 3,474,315 Total OPEB liability - ending (a) 3,612,838 4,353,123 4,183,156 Plan Fiduciary Net Position
Contribution - employer 45,608 33,966 19,568
Net investment income (50,191) 80,880 10,045
Benefit payments (45,608) (33,966) (19,568)
Administrative expense (95) (111) (139)
Net change in plan fiduciary net position (50,286) 80,769 9,906 Plan fiduciary net position - beginning 374,844 294,075 284,169 Plan fiduciary net position - ending (b) 324,558 374,844 294,075 Net OPEB Liability/(Assets) - ending (a) - (b) $ 3,288,280 $ 3,978,279 $ 3,889,081 Plan fiduciary net position as a percentage of the total OPEB liability 8.98% 8.61% 7.03% Covered-employee payroll $ 4,005,521 $ 3,624,974 $ 2,045,831 Net OPEB liability as a percentage of covered-employee payroll 82.09% 109.75% 190.10% Notes to Schedule:
Changes of Assumptions: The discount rate decreased from 2.20% to 4.10% in measurement period 2021-22. (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 40 2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
$ 90,956 $ 86,320 $ 90,934
29,157 26,317 21,440
124,887 - -
52,128 13,302 (50,934)
2,355,457 - -
(14,200) (12,072) (12,099)
2,638,385 113,867 49,341
835,930 722,063 672,722
3,474,315 835,930 722,063
14,200 12,072 12,099
16,415 19,778 23,752
(14,200) (12,072) (12,099)
57 (461) (121)
16,472 19,317 23,631
267,697 248,380 224,749
284,169 267,697 248,380
$ 3,190,146 $ 568,233 $ 473,683
8.18% 32.02% 34.40%
$ 2,758,300 $ 2,611,101 $ 2,537,528
115.66% 21.76% 18.67%
41 BARSTOW FIRE PROTECTION DISTRICT
Schedule of Contributions - OPEB
As of June 30, For the Last Ten Fiscal Years(1)
2023 2022 2021
$ 408,795 $ 376,137 $ 366,074
45,608 64,217 33,966
$ 330,529 344,578 $ $ 332,108
$ 4,005,521 4,272,131 $ $ 3,624,974
1.50% 1.14% 0.94%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Valuation Date 6/30/2022
Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Market value
Inflation 2.50%
Payroll Growth
3% per annum, in
aggregate
Investment Rate of Return 4.10%
Healthcare cost-trend rates
Retirement Age
Mortality MacLeod Watts Scale 2022 applied generationally Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Entry Age Normal
Level percent of pay
5.8% in 2023, fluctuating to 3.9% by 2076
45 to 65 years
*Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2023 were from the June 30, 2022 actuarial valuation.
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 42 2020 2019 2018
$ 335,358 $ 64,738 $ 62,732
19,568 14,200 12,072
$ 315,790 $ 50,538 $ 50,660
$ 2,045,831 $ 2,758,300 $ 2,611,101
0.96% 0.51% 0.46%
43 1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
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The Woodlands, TX 77380
(936) 828-4587
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Sacramento, CA 95833
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Laguna Hills, CA 92653
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www.lslcpas.com
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
Barstow Fire Protection 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 Barstow Fire Protection District, a component unit of the City of Barstow, as of and for the year ended June 30, 2023, 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 28, 2023.
Report on 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 or significant deficiencies may exist that were not identified.
Report on 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
Barstow Fire Protection District
City of Barstow, California
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 28, 2023
45