CITY OF ORANGE, CALIFORIA
AIR POLUTION REDUCTION FUND
JUNE 30, 2022
FINANCIAL STATEMENTS WITH REPORT
ON AUDIT BY INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
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CITY OF ORANGE, CALIFORNIA
AIR POLLUTION REDUCTION FUND
FINANCIAL STATEMENTS
WITH REPORT ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1
BASIC FINANCIAL STATEMENTS
GOVERNMENT - WIDE FINANCIAL STATEMENTS
Statement of Net Position .................................................................................................................... 4
Statement of Activities ......................................................................................................................... 5
FUND FINANCIAL STATEMENTS
Balance Sheet – Governmental Fund .................................................................................................. 6
Reconciliation of the Governmental Fund Balance
Sheet to the Statement of Net Position ...................................................................................... 7
Statement Of Revenues, Expenditures and Changes In
Fund Balance – Governmental Fund: ........................................................................................ 8
Reconciliation Of the Governmental Fund Statement Of
Revenues, Expenditures and Changes in Fund Balance
To The Statement of Activities ................................................................................................... 9
Notes to Financial Statements .............................................................................................................. 10
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule ........................................................................................................ 16
Note to Required Supplementary Information ................................................................................. 17
OTHER REPORT
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ................................................................................... 18
203 N. Brea Blvd., Suite 203
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3 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental
Activities
Assets:
Cash and investments 171,134$
Receivables:
Accounts 45,179
Accrued interest 131
Proportionate share of net pension asset 34,008
Total Assets 250,452
Deferred Outflows of Resources:
Proportionate share of pension deferrals 1,598
Proportionate share of OPEB deferrals 3,124
Total Deferred Outflows of Resources 4,722
Liabilities:
Accounts payable 2,146
Noncurrent liabilities:
Proportionate share of total OPEB liability 13,246
Total Liabilities 15,392
Deferred Inflows of Resources:
Proportionate share of pension deferrals 24,860
Proportionate share of OPEB deferrals 1,360
Total Deferred Inflows of Resources 26,220
Net Position:
Restricted for air pollution reduction projects 213,562 Total Net Position 213,562$
See accompanying notes to basic financial statements.
4 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Net (Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Governmental Activities:
General government 48,092$ -$ 177,224$ -$ 129,132$ Public safety 6,631 - - - (6,631) Total Governmental Activities 62,425$ -$ 177,224$ -$ 114,799 General Revenues:
Investment income (5,934)
Total General Revenues 1,770
Change in Net Position 116,569
Net Position at Beginning of Year 96,993
Net Position at End of Year 213,562$
Program Revenues
Functions/Programs
See accompanying notes to basic financial statements.
5 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
BALANCE SHEET - GOVERNMENTAL FUND
JUNE 30, 2022
Assets:
Cash and investments 171,134$
Receivables:
Accounts 45,179
Interest 131
Total Assets 216,444$
Liabilities and Fund Balance:
Liabilities:
Accounts payable 2,146$
Total Liabilities 2,146
Fund Balance:
Restricted for air pollution reduction projects 214,298 Total Fund Balances 214,298
Total Liabilities and Fund Balance 216,444$
See accompanying notes to basic financial statements.
6 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Fund Balance of Governmental Fund 214,298$
Deferred outflows of resources 1,598
Deferred inflows of resources (24,860)
Net pension liability 34,008
Deferred outflows of resources 3,124
Deferred inflows of resources (1,360)
Total OPEB liability (13,246)
Net Position of Governmental Activities 213,562$
Pension-related liabilities applicable to governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affects only the government-wide statements for governmental activities.
OPEB-related liabilities applicable to governmental activities are notdue and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the statement of net position as the changes in these amounts affects only the government-wide statements for governmental activities.
Amounts reported for governmental activities in the statement of net position are different because:
See accompanying notes to basic financial statements.
7 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUND
FOR THE YEAR ENDED JUNE 30, 2022
Revenues:
Intergovernmental 177,224$
Interest income (5,934)
Total Revenues 171,290
Expenditures:
Current:
General government 95,126
Public safety 6,631
Capital outlay 3,426
Total Expenditures 112,885
(Deficiency) of Revenues
(Under) Expenditures 58,405
Fund Balance at Beginning of Year 155,893
Fund Balance at End of Year 214,298$
See accompanying notes to basic financial statements.
8 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Net Change in Fund Balances - Governmental Fund 58,405$ 54,082
4,082
Change in Net Position of Governmental Activities 116,569$ Pension obligation reduction reported in the statement of activities does not result in the use of current financial resources and, therefore, is not reported as reduction of expenditures in the governmental fund.
OPEB obligation reduction reportedin the statement of activities does not result in the use of current financial resources and, therefore, is not reported as reductionof expenditures in the governmental fund.
Amounts reported for governmental activities in the statement of activities are different because:
See accompanying notes to basic financial statements.
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15 CITY OF ORANGE
AIR POLLUTION REDUCTION FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 155,893$ 155,893 $ 155,893 $ -$ Resources (Inflows):
Intergovernmental 170,700 170,700 177,224 6,524 Investment income 598 598 (5,934) (6,532) Amounts Available for Appropriation 327,191 327,191 327,183 (8) Charges to Appropriation (Outflow):
Salaries and benefits 51,076 51,076 31,494 19,582 Capital projects 85,000 91,327 3,426 87,901 Trip reduction program 48,197 48,197 52,670 (4,473) Professional costs 7,600 7,600 1,827 5,773 Printing costs 2,700 2,700 - 2,700 Bike team usage 10,000 10,000 6,631 3,369 Association dues 700 700 - 700 Training costs 900 900 - 900 Administrative and general overhead 16,839 16,839 16,837 2 Total Charges to Appropriations 223,012 229,339 112,885 116,454 Budgetary Fund Balance, June 30 104,179$ 97,852$ 214,298$ 116,446$ See accompanying note to required supplementary information. 16 &,7<2)25$1*(
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