THE
PUN GROUP
ACCOUNTANTS & ADVISORS
CITY OF PLACENTIA 1
Presentation to the City Council
For the Fiscal Year Ended June 30, 2021
July 5, 2022
CONTENTS
• Scope of Work
• Required Communications (AU -C 260)
• Overview of Financial Statements
• Financial Indicators and Key Pension/OPEB Information • Audit Results
12 THE
PL!N GROUPfl
ACCOU NTA NTS& ADti15O KS
2 PUN GROUP
ACCOUNTANTS & ADy15Ra
SCOPE OF WORK
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3 SCOPE OF WORK
• Audit of the Annual Comprehensive Financial Report (CAFR) • Report on internal control over financial reporting and on compliance in accordance with Government Auditing Standards
• Uniform Guidance Single Audit
• Communication with Those Charged with Governance
NN GROUP
ACCOl1NTANTS & ADVISORS
REQUIRED COMMUNICATIONS (AU -C 260)
12 APC
uN GROUP
AC COU NTA NTS S A Uy15 Ra
Required Communications (AU -C 260)
NN GROISUP
ACCOUNTANTS & AOV O RS
• Independence
• We complied with ALL relevant requirements regarding independence • Significant Accounting Policies
• The City disclosed all significant accounting policies in Note 1 to the financial statements. • The City implemented GASB Statement No. 84, Fiduciary Activities • Significant Estimates
• Fair value on investments
• Depreciation on capital assets
• Actuarial calculation of net other postemployment benefit liability • Actuarial calculation of net pension liability
Required Communications (AU -C 260)
NN GROISUP
ACCOUNTANTS & AOV O RS
• Sensitive Disclosures
• Note 1 — Summary of Significant Accounting Policies
• Note 8 — Pension Plans
• Note 9 — Other Postemployment Benefits Plan
• Note 11 — Classification of Fund Balance
• Note 13 — Other Required Fund Disclosures
• Note 14 — Prior Period Adjustments
• Note 15 — Subsequent Events
• Misstatements
• There were no corrected or uncorrected misstatements reported. • Consultation with Other Accountants
• Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters.
O
Required Communications (AU -C 260)
NN GROISUP
ACCOUNTANTS & AOV O RS
• Significant Difficulties
• We encountered no significant difficulties in dealing with management. • Disagreements with Management
• We did not have any disagreements with management in terms of accounting treatments or audit procedures performed.
OVERVIEW OF THE FINANCIAL
STATEMENTS
12 APC
uN GROUP
AC COU NTA NTS S A Uy15 Ra
NN GROUP
ACCOl1NTANTS & ADVISORS
City of Placentia
Government -Wide Summary
Statement of Net Position
June 30, 2021
Assets
Deferred Outflows of Resources
Liabilities
Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Restricted
Unrestricted (deficit)
Total Net Position
Governmental
Activities
$ 145,192,586
57,149,618
156,758,497
6,329,504
86,061,117
21,455,621
(68,262,535)
$ 39,254,203
Business -Type
Activities
$ 9,543,313
2,076,895
2,852,163
186,687
8,220,855
360,503
$ 8,581,358
Total
$ 154,735,899
59,226,513
159,610,660
6,516,191
94,281,972
21,455,621
(67,902,032)
$ 47,835,561
NN GROUP
ACCOl1NTANTS & ADVISORS
Expenses
City of Placentia
Government -Wide Summary
Statement of Activities
For the Year Ended June 30, 2021
Governmental Business -Type
Activities Activities Total
$ (54,979,903) $ (1,922,137) $ (56,902,040)
Program Revenues
Charges for services 6,400,408 4,471,631 10,872,039
Operating grants and contributions 6,102,506 - 6,102,506 Capital grants and contributions 8,026,712 - 8,026,712
Total program revenues 20,529,626 4,471,631 25,001,257
Net Cost of Services (34,450,277) 2,549,494 (31,900,783) General Revenues - Taxes 37,856,465 - 37,856,465
General Revenues - Others 323,321 4,288 327,609
Transfers 38,667 (38,667)
Change in Net Position $ 3,768,176 $ 2,515,115 $ 6,283,291
City of Placentia
General Fund
Condensed Balance Sheets
June 30, 2021 and 2020
June 30, 2021 June 30, 2020 Change
Assets $ 24,196,969 $ 18,869,550 $ 5,327,419
Liabilities $ 2,904,888 $ 3,222,594 $ (317,706)
Deferred Inflows of Resources 1,061,610 1,680,505 (618,895) Fund Balance
Nonspendable 3,346,897 3,734,003 (387,106)
Restricted 556,084 555,258 826
Committed 6,433,605 5,810,898 622,707
Unassigned 9,893,885 3,866,292 6,027,593
Total Fund Balance 20,230,471 13,966,451 6,264,020
Total Liabilities and Fund
Balance $ 24,196,969 $ 18,869,550 $ 5,327,419
ACCOUNTANTS & ADVISORS
•
City of Placentia
General Fund
Condensed Statements of Revenues, Expenditures and Changes in Fund Balance For the Years Ended June 30, 2021 and 2020
Revenues
Expenditures
Revenues over Expenditures
Other Financing Sources and Uses
Transfers (Net)
Proceeds from sale of property
Proceeds from issuance of debt
Total other financing sources/uses
Change in Fund Balance
NN GROUP
ACCOUNTANTS & ADVISORS
2021 2020
$ 43,407,453 $ 41,557,041
Change
$ 1,850,412
(37,368,670) (44,474,766) (7,106,096)
6,038,783 (2,917,725) 8,956,508
(751,662)
976,899
225,237
$ 6,264,020 $ 3,617,214 $ 2,646,806
769,400
1,547,438
4,218,101
6,534,939
(1,521,062)
(1,547,438)
(3,241,202)
(6,309,702)
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NN GROUP
ACCOl1NTANTS & ADVISORS
City of Placentia
Governmental Activities
Net Cost of Services to Tax Revenues
For the Years Ended June 30, 2021 and 2020
2021 2020
Net Cost of Services $ 34,450,277 $ 27,996,123
Tax Revenues $ 37,856,465 $ 34,855,960
Ratio 91.00% 80.32%
•
NN GROUP
ACCOl1NTANTS & ADVISORS
City of Placentia
General Fund
Unassigned Fund Balance to Annual Expenditures
For the Years Ended June 30, 2021 and 2020
2021 2020
Unassigned Fund Balance $ 9,893,885 $ 3,866,292
Annual Expenditures 37,368,670 44,474,766
Ratio 26.48% 8.69%
NN GROUP
ACCOl1NTANTS & ADVISORS
GASB 68 — The Pension Standard
As of June 30, 2020 (Measurement Date)
Net Pension Liabilities @ 6.15%
Miscellaneous
Plan
$ 24,015,519
Safety
Plan
$ 42,901,251
Total
$ 66,916,770
Net Pension Liabilities @ 7.15%
$ 16,419,169
$ 29,467,303
$ 45,886,472
Net Pension Liabilities @ 8.15%
Plan's Proportionate Share of the
Fiduciary Net Position as a Percentage
of the Total Pension Liability
Prior year
$ 10,142,545
71.97%
73.01%
$ 18,443,478
70.21%
71.99%
$ 28,586,023
•
Total OPEB Liabilities @ 2.21% $ 31,325,826
NN CROUP
ACCOl1NTANTS & ADVISORS
GASB 75 — The OPEB Standard
As of June 30, 2020 (Measurement Date)
Total OPEB Liabilities @ 1.21%
OPEB
$ 36,542,459
Total OPEB Liabilities @ 3.21 % $ 27,203,607
Fiduciary Net Position as a Percentage
of the Total OPEB Liability 0.00%
PUN GROUP
AC COU NTA NTS & A EMS R.a
AUDIT RESULTS
r1
19 Audit Results
NN GROISUP
ACCOUNTANTS & AOV O RS
• Opinions
• Unmodified Opinions issued to all Opinion Units
• Financial statements are fairly presented in all material respects • Accounting policies have been consistently applied
• Estimates used are reasonable
• Disclosures are properly reflected in the financial statements
Single Audit
NN GROUP
ACCOUNTANTS & AOV ISO RS
• Total Expenditures of Federal Awards = $1,861,693
• Major Programs (94.42% of total federal expenditures) • 14.218 Community Development Block Grant = $1,027,735 • 21.019 Coronavirus Relief Fund = $730,012
No findings related to internal control or compliance.
No questioned costs.
•
Other Results
NN GROUP
ACCOUNTANTS & AOV ISO RS
• No disagreements with management
• No material weaknesses/significant deficiencies were identified in internal control over financial reporting or compliance
• No accounting issues
• No inappropriate activities were noted
•
TH
I'UFN GROUP
ACCOUNTANTS & ADVISORS
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