214
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City'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.
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 in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Santa Ana, California
December 22, 2021
Item #13. Page 235
Meeting Date: 1/11/2022 / Packet Page #: 454
City of Glendora
Glendora, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures to
Investments
April 30, 2021
Item #13. Page 236
Meeting Date: 1/11/2022 / Packet Page #: 455
INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and the Members of City Council
of the City of Glendora
Glendora, California
We have performed the procedures enumerated below, which were agreed to by the management of the City of Glendora, California (the “City”) on the City’s investment report and compliance with the State of California (the “State”) regulations and the City’s investment policy as of April 30, 2021. The City’s management is responsible for the investments processes, activities, and the degree of compliance with the State’s regulations and the City’s investment policy. The sufficiency of these procedures is solely the responsibility of the City. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures and associated findings are as follows:
1. We obtained the City’s Investment Report (the “Report”) for the month ended April 30, 2021, and reconciled individual investments to supporting documentation obtained from the City staff.
Finding: No exceptions were noted as a result of our procedures.
2. We reconciled the Report to a listing of investments held by the third-party custodian for those investments held by a third-party custodian. The listing was obtained independently from the third-party custodian.
Finding: No exceptions were noted as a result of our procedures.
3. We reconciled the Report to statements obtained from the City for the investments in the State pools, passbook, and money market accounts.
Finding: No exceptions were noted as a result of our procedures.
4. For investments not listed on #2 and #3 above (such as investments held by fiscal agents for debt service), we reconciled the Report to the fiscal agent, trust or other appropriate statements provided by the City.
Finding: No exceptions were noted as a result of our procedures.
5. We confirmed that all investments listed on the Report at April 30, 2021, belong to the City.
Finding: No exceptions were noted as a result of our procedures.
6. We obtained and read the City’s investment policy in effect as of the date of the Report.
Finding: No exceptions were noted as a result of our procedures.
7. We compared the City’s investment policy with all provisions and applicable California Government Code Section 53601 as to type of investments, percent of portfolio, period to maturity and rating.
Finding: No exceptions were noted as a result of our procedures. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
Item #13. Page 237
Meeting Date: 1/11/2022 / Packet Page #: 456
To the Honorable Mayor and the Members of City Council
of the City of Glendora
Glendora, California
8. We compared the investments listed on the City’s Investment Report for the month of April 30, 2021, to the type of investments authorized by the City’s Investment Policy.
Finding: No exceptions were noted as a result of our procedures.
9. We inspected the City’s Treasurer’s Report for the month of April 30, 2021 on all information required by the Government Code Section 53646 and the timing requirements of Government Code Section 53645 as follows:
a. Submitted within 30 days following the end of the month. b. Included the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and monies held by the City.
c. Included those funds under management of contracted parties (fiscal agents, trustee, deferred compensation, plan administration, etc.)
d. Included market value (and source) as of the date of the Report for all securities held by the City or under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund.
e. Stated compliance of the portfolio to the investment policy of the City. f. Included a statement addressing the ability of the City to meet the pool’s expenditures requirements for the next six months.
Finding: No exceptions were noted as a result of our procedures.
10. We inspected the Report for any special characteristics of individual investments.
Finding: No exceptions were noted as a result of our procedures.
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the investments.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the City Council and the management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Santa Ana, California
July 14, 2021
Item #13. Page 238
Meeting Date: 1/11/2022 / Packet Page #: 457
Housing Authority of the
City of Glendora
Glendora, California
Housing Successor Compliance and
Independent Auditors’ Report
For the Year Ended June 30, 2021
Item #13. Page 239
Meeting Date: 1/11/2022 / Packet Page #: 458
Housing Authority of the City of Glendora
Table of Contents
Page
Independent Auditors’ Report:
Report on Compliance for the Housing Successor; Report on Internal Control Over Compliance; and Report on the Schedule of Excess Surplus ........................................................ 1 Schedule of Excess Surplus ........................................................................................................................................ 3 Item #13. Page 240
Meeting Date: 1/11/2022 / Packet Page #: 459
REPORT ON COMPLIANCE FOR THE HOUSING SUCCESSOR; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXCESS SURPLUS Independent Auditors’ Report
To the Honorable Mayor and the Members of the City Council of the City of Glendora
Glendora, California
Report on Compliance for the Housing Successor
We have audited the Housing Authority of the City of Glendora, as the Housing Successor to the former Glendora Community Redevelopment Agency’s (the “Housing Successor”) compliance with the type of compliance requirements described in the California Health and Safety Code sections applicable to the Redevelopment Agency’s Housing Successor for the year ended June 30, 2021.
Management’s Responsibility
Compliance with the requirements referred to above is the responsibility of the Housing Successor’s management.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Housing Successor’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in the Government Auditing Statements, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the Housing Successor occurred. An audit includes examining, on a test basis, evidence about the Housing Successor’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Housing Successor’s compliance with those requirements.
Opinion
In our opinion, the Housing Successor compiled, in all material respects, with the compliance requirements referred to above that are applicable to the Housing Successor for the year ended June 30, 2021. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
Item #13. Page 241
Meeting Date: 1/11/2022 / Packet Page #: 460
To the Honorable Mayor and the Members of the City Council of the City of Glendora
Glendora, California
2 Report on Internal Control Over Compliance
Management of the Housing Successor is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the Housing Successor’s internal control over compliance to determine the auditing procedures for the purpose of expressing an opinion on compliance, but not for the purpose of expressing an opinion of the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Housing Successor’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that a material noncompliance with a compliance requirement will not be prevented, or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of California Health and Safety Code Sections applicable to California Housing Successor Agencies. Accordingly, this communication is not suitable for any other purpose.
Report on the Schedule of Excess Surplus
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Glendora as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 22, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying the Schedule of Excess Surplus is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Excess Surplus is fairly stated in all material respects in relation to the basic financial statements as a whole.
Santa Ana, California
December 22, 2021
Item #13. Page 242
Meeting Date: 1/11/2022 / Packet Page #: 461
Housing Authority of the City of Glendora
Schedule of Excess Surplus
For the Year Ended June 30, 2021
3 Opening Fund Balance 6,949,435
Less: notes and loans receivables (4,707,574)
Available Housing Successor Funds 2,241,861
Limitation (greater of $1,000,000 or four years deposits) Aggregate amount deposited for last four years:
2019-2020 593,114
2018-2019 197,830
2017-2018 101,500
2016-2017 1,204,956
Total $ 2,097,400
Greater amount 2,097,400
Computed Excess Surplus $ 144,461
Housing Funds
All project Area
July 1, 2020
Item #13. Page 243
Meeting Date: 1/11/2022 / Packet Page #: 462