($3,650,344)
$9,406,018
$9,403,714
1,695,909
$34,991,414
Net Carryover: $1,465,097
Financial Policy: 18,565,193
Economic Uncertainty: 4,000,000
Total $24,030,290
Adjusted Unassigned: $10,961,124
Water Wastewater
Unrestricted Net Position: $8,631,950 $17,126,824 Financial Policy Reserve: $4,613,907 $966,396 CIP Reserve: 4,082,460 12,266,753
Total Reserves: $8,696,367 $13,233,149
Adjusted Unrestricted*: ($64,417) $3,893,675
$24,287,677
$81.2 Million
CalPERS Discount Rate: 6.8%
-6.1%
5.8%
$14,386,505
: 10,853,922
$3,532,583
2024 Financial Audit
Presented by:
Kelly Telford, CPA, Partner
February 13, 2025
Your LSL Management Team
Calvin Kunkel, CPA
Manager
Justin Shaefer
Senior
Christian Townes,
CPA
Partner
Ryan Domino, CPA
Concurring Partner
Scope of Engagement
LSL has been engaged by the City of Manhattan Beach to perform the financial statement audit for the year ended June 30, 2024, in accordance with generally accepted auditing standards and Government Auditing Standards.
• Interim Fieldwork
• May 28 – May 31,2024
• Examined internal controls
• Provided feedback to
management
• Performed our audit risk
assessment
• Planned year-end audit
procedures to respond to risk
• Year-End Fieldwork
• October 28 – November 8, 2024
• Detailed testing of account
balances and transactions
• Compliance testing with laws,
regulations, grant agreements,
contracts
• Other procedures necessary to
obtain sufficient, appropriate
audit evidence
Scope of Engagement
Results of Audit
• We issued an unmodified auditor’s opinion on the financial statements.
• Financial statements are accurate and reliable as of June 30, 2024. • We issued the Report on Internal Control and Compliance • No opinion is expressed on the internal controls.
• One material weakness reported surrounding financial reporting; no significant deficiencies noted.
• No material noncompliance with laws, regulations, grants, etc. noted. • Material weaknesses or significant deficiencies may exist that were not identified.
Results of Audit
Audit Communication Letter (SAS 114 – conclusion)
• We had no difficulties conducting our audit.
• We had no disagreements with management about application of accounting principles.
• We determined that all estimates used by management in preparing the financial statements were reasonable.
• We identified no fraud, waste, or abuse during the fiscal year ended June 30, 2024.
Financial Highlights
• Net position decreased $380 thousand during the year to $244.9 million. • Unrestricted net position represented 58.2% of operating expenses and 1.7% of total net position.
• Prior period adjustment within governmental activities and business-type activities, primarily to correct capital asset activity. • Capital assets increased $23.4 million or 9.3% from the prior year. • Long-term debts increased $4.6 million or 3.3% from the prior year. • Net pension liability increased $8.5 million from the prior year. • OPEB liability decreased $3.7 million from the prior year.
Questions
Thank you!
Contact Information
Christian Townes, CPA
Partner, Government Services
[email protected]
www.lslcpas.com
[email protected]
CALIFORNIA: Brea | Irvine | Laguna Hills | Sacramento TEXAS: The Woodlands