Independent Auditor’s Report on Internal Cont
rol Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Air Quality
Improvement Special Revenue Fund Performed
in Accordance with
Government Auditing Standard
The Honorable
Mayor and
City Council
City of Garden Grove, California
We have audited, in accordance with the auditing standards generall y 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 City of Garden Grove, California (the City) including the Air Quality Improvement Special Revenue Fund (the Fund) of the City, as of and
for the year ended June 30, 20
2 4
, and the related notes to
the financial statements, which collectively comprise the City’s basic financial statements ,
and have
issued our
report thereon
dated
December
3 0
, 20
2 4
.
Report on
Internal Control over Financial Reporting
In planning and performing our audit of the Fund’s financial statements, we considered the City’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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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, t o 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 have not been identified.
Report on
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’ s Fund 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 determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in Assembly Bill 2766 Chapter 1705 [Health and Safety Code Sections 44220 through 44247] (the Guide). 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
.
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 City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards
and the Guide in considering the City’s internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
Irvine, California
December
3 0
,
202
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