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Odessa Water 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 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 55,152
Noncurrent liabilities:
Due to Barstow Successor Agency 45,461
Total Liabilities 100,613
Net Position:
Net investment in capital assets 39,539
Unrestricted (55,152)
Total Net Position $ (15,613)
June 30, 2023
See Notes to Financial Statements.
6 ODESSA WATER DISTRICT
Statement of Activities
Year Ended June 30, 2023
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 (11,543)
Net Position at End of Year $ (15,613)
Program Revenues
See Notes to Financial Statements.
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8 ODESSA WATER DISTRICT
Balance Sheet
Governmental Funds
June 30, 2023
General Fund
Liabilities and Fund Balances
Liabilities:
Due to City of Barstow $ 55,152
Due to Successor Agency 45,461
Total Liabilities 100,613
Fund Balances:
Unassigned (100,613)
Total Fund Balances (100,613)
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, 2023
Fund balances of governmental funds $ (100,613)
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 $ (15,613)
See Notes to Financial Statements.
10 ODESSA WATER DISTRICT
Statement of Revenues,
Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2023
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 (96,543)
End of Year $ (100,613)
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, 2023
Net change in fund balances - total governmental funds $ (4,070) Change in Net Position of Governmental Activities $ (4,070) See Notes to Financial Statements.
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21 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 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 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, 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
Odessa Water 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
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