City of Corona
AU-C 260 Communication With Those Charge With GovernanceFor the Year Ended June 30, 2023December 6, 2023 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 96 – Subscription Based Information Technology Arrangements • 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 17 – 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 CoronaGovernment-Wide SummaryAs of June 30, 2023 12/7/2022
Governmmental Business-type
Activities Activities Total
Net Position:
Net investment in capital assets 805,912,000 $ 371,608,000 $ 1,177,520,000 $ Restricted 155,876,000 1,434,000 157,310,000
Unrestricted 72,781,000 (44,212,000) 28,569,000
Total Net Position $ 328,830,000 1,034,569,000 $ 1,363,399,000 $ 12 City of CoronaGovernment-Wide Summary (Continued)For the Year Ended June 30, 2023 11/26/2023
Gonernmental Business-type
Activities Activities Total
Expenses 230,061,000 $ 116,131,000 $ 346,192,000 $
Program Revenues 93,244,000 141,371,000 234,615,000
Net Cost of Services 25,240,000 (136,817,000) (111,577,000) General Revenues 194,482,000 3,441,000 197,923,000
Changes in Net Position $ 28,681,000 57,665,000 $ 86,346,000 $ Tax revenue 157,875,000 $
Cost of Service to Tax Revenue 87%
13 City of CoronaGeneral Fund SummaryBalance SheetAs of June 30, 2023 and 2022 11/28/2022
2023 2022 Changes
Fund Balance:
Nonspendable 181,343,000 $ 187,584,000 $ (6,241,000) $ Restricted 35,429,000 30,103,000 5,326,000 Committed 52,916,000 48,121,000 4,795,000
Assigned 76,964,000 55,140,000 21,824,000
Unassigned 18,603,000 222,000 18,381,000
Total Fund Balance $ 321,170,000 365,255,000 $ 44,085,000 $ * As restated
14 City of CoronaGeneral Fund SummaryStatement of Revenues, Expenditures, and Changes in Fund Balance
For the Year Ended June 30, 2023 and 2022
11/28/2022
2023 2022 Changes
Revenues 220,485,000 $ 191,622,000 $ 28,863,000
Less: Expenditures 177,081,000 390,754,000 213,673,000
Revenues Over (Under) Expenditures 43,404,000 (199,132,000) 242,536,000 Other Financing Sources 681,000 224,876,000 (224,195,000) Net Change in Fund Balance $ 25,744,000 44,085,000 $ 18,341,000 $ 15 City of CoronaDetailed Pension PlansMeasurement Date June 30, 2022 and 2021 12/15/2021
Miscellaneous Safety Police Safety Fire
Plan Plan Plan Total 2021
Total Pension Liability 416,787,000 $ 329,324,000 $ 208,527,000 $ 954,638,000 $ 887,330,000 $ Fiduciary Net Position 398,724,000 307,831,000 196,647,000 903,202,000 723,303,000 Net Pension Liability $ 21,493,000 18,063,000 $ 11,880,000 $ 51,436,000 $ 164,027,000 $ Funding Ratio 95.67% 93.47% 94.30% 94.61% 81.51%Contribution Made in FY23 and FY22 3,762,000 $ 4,928,000 $ 2,979,000 $ 11,669,000 $ 291,077,000 $ 2022
16 City of CoronaOther Postemployment Benefits (“OPEB”)Measurement Date June 30, 2022 and 2021 12/7/2022
2022 2021
Plan Total OPEB Liability $ 153,409,000 155,068,000 $
Plan Fiduciary Net Position 61,086,000 68,232,000
Net OPEB Liability $ 85,177,000 93,982,000 $
Funding Ratio 39.39% 44.48%Contribution Made in FY23 and FY22 9,994,000 $ 10,745,000 $ 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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