City of Corona
AU-C 260 Communication With
Those Charge With Governance
For the Year Ended June 30, 2022
December 7, 2022
2 CONTENTS
• Scope of Work
• Required Communications (AU-C 260)
• Overview of Financial Statements
• Key Pension and OPEB Information
• Audit Results
• Thank You!
12/7/2022
3 SCOPE OF WORK
12/7/2022
4 SCOPE OF WORK
• City’s Financial Statement Audit
• Housing Successor Compliance Audit
• Trip Reduction Special Revenue Fund Financial statements and Compliance Audit • Agreed-upon Procedures on Investments
• Agreed-upon Procedures on Appropriation Limit Schedules • Report on Internal Control over Financial Reporting and on Compliance in accordance with Government Auditing Standards (“GAS”)
12/7/2022
5 OUR RESPONSIBITY 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 • Considered internal control over financial reporting. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control
• Concluded there are no conditions or events that raise substantial doubt about the City’s ability to continues as a going concern.
• Communicate with those charged with governance
12/7/2022
6 Required Communications (AU-C 260)
12/7/2022
7 Required Communications (AU-C 260)
12/7/2022
• Ethics and Independence
• Complied with ALL relevant ethical requirements regarding independence • Significant Accounting Policies
• The City of Corona disclosed all significant accounting policies in Note 1 to the financial statements.
• Implementation of GASB 87 - Leases
• Significant Estimates
• Investment Fair Value
• Depreciation on Capital Assets
• Net Pension Liability
• Net OPEB Liability
8 Required Communications (AU-C 260)
12/7/2022
• Sensitive Disclosures
• Note 1 – Summary of Significant Accounting Policies
• Note 2 – Stewardship, Compliance and Accountability
• Note 13 – Pension Plan
• Note 14 – Other Postemployment Benefits (“OPEB”)
• Note 16 – Commitments and Contingencies
• Misstatements
• There were no uncorrected misstatements reported
9 Required Communications (AU-C 260)
12/7/2022
• 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.
10 OVERVIEW OF THE FINANCIAL
STATEMENTS
12/7/2022
11 City of Corona
Government-Wide Summary
As of June 30, 2022
12/7/2022
Governmmental Business-type
Activities Activities Total
Net Position:
Net investment in capital assets $ 774,605,000 $ 365,081,000 $ 1,139,686,000 Restricted 149,368,000 1,621,000 150,989,000
Unrestricted 52,931,000 (66,553,000) (13,622,000)
Total Net Position $ 976,904,000 $ 300,149,000 $ 1,277,053,000 12 City of Corona
Government-Wide Summary (Continued)
For the Year Ended June 30, 2022
11/30/2022
Gonernmental Business-type
Activities Activities Total
Expenses $ 178,822,000 $ 114,263,000 $ 293,085,000
Program Revenues 91,463,000 124,181,000 215,644,000
Net Cost of Services (87,359,000) 9,918,000 (77,441,000) General Revenues 163,978,000 (3,487,000) 160,491,000
Transfers 110,000 $ (110,000) $ -
Changes in Net Position $ 76,729,000 $ 6,321,000 $ 83,050,000 Tax revenue $ 157,875,000
Cost of Service to Tax Revenue 55%
13 City of Corona
General Fund Summary
Balance Sheet
As of June 30, 2022 and 2021
11/28/2022
2022 2021* Changes
Fund Balance:
Nonspendable $ 187,584,000 $ 192,433,000 $ (4,849,000)
Restricted 30,103,000 - 30,103,000
Committed 48,121,000 42,940,000 5,181,000
Assigned 55,140,000 60,053,000 (4,913,000)
Unassigned 222,000 - 222,000
Total Fund Balance $ 321,170,000 $ 295,426,000 $ 25,744,000 * As restated
14 City of Corona
General Fund Summary
Statement of Revenues, Expenditures,
and Changes in Fund Balance
For the Year Ended June 30, 2022 and 2021
11/28/2022
2022 2021 Changes
Revenues $ 191,622,000 $ 148,705,000 42,917,000
Less: Expenditures 390,754,000 154,124,000 (236,630,000) Revenues Over (Under) Expenditures (199,132,000) (5,419,000) (193,713,000) Other Financing Sources 224,876,000 993,000 223,883,000 Net Change in Fund Balance $ 25,744,000 $ (4,426,000) $ 30,170,000 15 City of Corona
Detailed Pension Plans
Measurement Date June 30, 2021 and 2020
12/15/2021
Miscellaneous Safety Police Safety Fire
Plan Plan Plan Total 2020
Total Pension Liability $ 391,955,000 $ 299,198,000 $ 196,177,000 $ 887,330,000 $ 854,289,000 Fiduciary Net Position 320,671,000 239,372,000 163,260,000 723,303,000 593,122,000 Net Pension Liability $ 71,284,000 $ 59,826,000 $ 32,917,000 $ 164,027,000 $ 261,167,000 Funding Ratio 81.81% 80.00% 83.22% 81.51% 69.43%
Contribution Made $ 126,732,000 $ 103,659,698 $ 60,685,514 $ 291,077,212 $ 33,919,657 2021
16 City of Corona
Other Postemployment Benefits (“OPEB”)
Measurement Date June 30, 2021 and 2020
12/7/2022
2021 2020
Plan Total OPEB Liability $ 153,409,000 $ 144,145,000
Plan Fiduciary Net Position 68,232,000 51,771,000
Net OPEB Liability $ 85,177,000 $ 92,374,000
Funding Ratio 44.48% 35.92%
Contribution Made $ 10,745,000 $ 10,490,000
17 AUDIT RESULTS
12/15/2021
18 Audit Results
12/7/2022
• 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
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