Successor Agency to the
Redevelopment Agency of the City of Riverside
Independent Auditors’ Reports and Financial Statements
June 30, 2025
Prepared by the City of Riverside
Kristie Thomas, Chief Financial Officer
3900 Main Street, Riverside, California 92522 (951) 826-5660
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
PAGE
Independent Auditors' Report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 Financial Statements
Statement of Net Position/(Deficit)................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................4 Statement of Changes in Net Position/(Deficit)................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5 Notes to the Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................6 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................13 1 The Honorable Members of the Oversight Board
Successor Agency to the Redevelopment Agency of the City of Riverside Riverside, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement r esulting from f raud is h igher than for one resulting from error, a s fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if t here is a substantial l ikelihood that, individually or i n the aggregate, they would influence the judgment m ade by a reasonable user based on t he f inancial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit.
x Identify and assess the risks of material misstatement of the financial statements, whether due to f raud or e rror, and design and p erform a udit p rocedures responsive to t hose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of i nternal c ontrol r elevant t o the a udit i n order to d esign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Successor Agency’s internal control. Accordingly, no such opinion is expressed.
x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Successor Agency’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management’s discussion and analysis that a ccounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical c ontext. Our opinion on the basic financial statements is not affected by this missing information.
2 The Honorable Members of the Oversight Board
Successor Agency to the Redevelopment Agency of the City of Riverside Riverside, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December , 2025, on our consideration of the Successor Agency to the Redevelopment Agency of the City of Riverside ‘s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Successor Agency to the Redevelopment Agency of the City of Riverside ‘s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Successor Agency to the Redevelopment Agency of the City of Riverside‘s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
December , 2025
3 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
STATEMENT OF NET POSITION/(DEFICIT)
JUNE 30, 2025
(amounts expressed in thousands)
Assets:
Cash and investments $ 34,449
Cash and investments with fiscal agent 1,392
Receivables, net of allowance for uncollectible
Interest 208
Accounts 99
Intergovernmental 426
Notes 1,391
Deposits 2
Land and improvements held for resale 5,209
Capital assets:
Capital assets, not depreciated 185
Total assets 43,361
Liabilities:
Current liabilities:
Accounts payable 238
Retainage payable 12
Accrued interest 1,898
Long-term obligations 10,944
Noncurrent liabilities:
Advances from City of Riverside 1,098
Long-term obligations 130,024
Total liabilities 144,214
Deferred Inflows of Resources:
Deferred charges on refunding 384
Total deferred inflows of resources 384
Net Position:
Restricted for other governments (101,237)
Total net position $ (101,237)
The notes to financial statements are an integral part of this statement. 4 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
STATEMENT OF CHANGES IN NET POSITION/(DEFICIT)
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Additions:
Property taxes $ 14,402
Rental and investment income 892
Miscellaneous 112
Total additions 15,406
Deductions:
Professional services and other deductions 1,594
Redevelopment projects 760
Interest and fiscal charges 4,086
Gain/(loss) on sale of land held for resale 2
Total deductions 6,442
Changes in Net Position 8,964
Net Position:
Beginning of year (110,201)
End of year $ (101,237)
The notes to financial statements are an integral part of this statement. 5 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 1. Description of Reporting Entity and Summary of Significant Accounting Policies A. Reporting Entity
The Redevelopment Agency of the City of Riverside (Redevelopment Agency) was established in 1967 to provide affordable housing, revitalize communities, eliminate blight, and fuel economic growth through focused reinvestment of local funds back into local projects and programs that supported job growth and private investment.
There are six project areas throughout the City o f Riverside (City) including Arlington, Casa Blanca, merged Downtown/Airport, Industrial/Hunter Park/Northside, La Sierra/Arlanza, Magnolia Center, and University Corridor/Sycamore Canyon (Project Areas). Over the years, the Redevelopment Agency was active in implementing housing programs, business incentive programs, commercial improvement programs, planning and development of projects, capital improvement projects, and property acquisition in the Project Areas.
On June 29, 2011, Governor Brown signed Assembly Bill 1X 26 (AB 1X 26) eliminating redevelopment agencies throughout the state. On July 1 8, 2011, the California Redevelopment Association and the League of California Cities filed a lawsuit against the State of California (State) in response to the passage of AB 1X 26. On December 29, 2011, the California Supreme Court upheld AB 1X 26. T he bill provided that upon dissolution of the Redevelopment Agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government.
Pursuant to City Council actions taken on March 15, 2011, and January 10, 2012, the City elected to serve as the Successor Agency t o the Redevelopment Agency o f the City o f Riverside (Successor Agency). The Successor Agency i s a separate legal entity, which serves as a custodian for the assets and liabilities of the dissolved Redevelopment Agency p ending distribution to the appropriate taxing entities after the payment of enforceable obligations. The activity o f the Successor Agency i s overseen by a n Oversight Board comprised of individuals appointed by v arious government agencies and the City o f Riverside as Successor Agency o f the former Redevelopment Agency. In 2018, the oversight was transferred to the Riverside Countywide Oversight Board, as a result of state legislation that consolidated all oversight boards of successor agencies. The Countywide Oversight Board was created to oversee the wind down activities of the various successor agencies in Riverside County.
In 1987, the Riverside Public Financing Authority (Authority), a non-profit corporation, was created as a joint-powers authority between the former Redevelopment Agency and the City to serve as a conduit for the issuance of bonds to fund improvements in various redevelopment project areas. The Authority has issued tax allocation bonds secured by l oan agreements between the former Redevelopment Agency a nd the Authority. These loan agreements are secured by a f irst pledge of and lien on a portion of property t ax revenues within the respective project areas.
Financial data of the Authority i s included in the activity o f the Successor Agency. Separate Authority f inancial statements may be obtained from the City's Finance Department, 3900 Main Street, Riverside, California 92522.
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The Successor Agency i s presented herein as a private-purpose trust fund and is reported using the economic resources measurement focus and the accrual basis of accounting.
Successor agencies will only b e allocated revenue in the amount that is necessary t o pay t he estimated annual installment payments on enforceable obligations of the former Redevelopment Agency u ntil all enforceable obligations of the former Redevelopment Agency have been paid in full and all assets have been liquidated. Such funds are paid from the Redevelopment Property Tax Trust Fund (RPTTF), which is administered by the County Auditor-Controller of the County o f Riverside (County A uditor-Controller). In January a nd June of each year, the County Auditor-Controller allocates revenue from the RPTTF to each successor agency for payments listed on the Recognized Obligation Payment Schedule (ROPS) for each six-month period. Property t axes are recognized as revenues in the year for which they are levied.
6 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 1. Description of Reporting Entity and Summary of Significant Accounting Policies C. Cash and Investments
The Successor Agency v alues its cash and investments in accordance with the provisions of Governmental Accounting Standards Board Statement No. 72 (GASB 72), Fair Value Measurement and Application, which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value.
The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach, or the income approach.
Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair market value. All highlight liquid investments (including restricted assets) with a maturity of 90 days or less when purchased are considered cash equivalent.
D. Restricted Cash and Investments
Certain proceeds of long-term indebtedness, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because their use is limited by a pplicable bond covenants.
E. Land and Improvements Held for Resale
Land and improvements held for resale were generally acquired for future development projects. The properties are carried at the lower of cost or net realizable value.
F. Long-Term Debt
Long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payables are reported net of the applicable bond premiums.
G. Deferred Inflows of Resources
The statement of fiduciary net position reports a separate section for deferred inflows of resources. Deferred inflows of resources represent inflows of resources (consumption of net assets) that apply t o future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time. The deferred amount on refunding is deferred and amortized over the life of the bonds using the effective interest method. The deferred amount on refunding is recorded as a deferred inflow of resources. The deferred amount related to leases is reported for the value of lease receivable payments to be recognized as inflows of resources in a systematic and rational manner over the term of the lease agreements.
H. Net Position
Net position represents the difference between assets and deferred outflows less liabilities and deferred inflows.
Restricted net position represents restricted assets less liabilities and deferred inflows related to those assets.
Restricted assets are recorded when there are limitations imposed on their use either through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Restricted resources are used first to fund appropriations.
I. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that can affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statements, and the reported amounts of revenue and expenditures. Specifically, the City has made certain estimates and assumptions relating to revenues due and expenditures incurred through fiscal year end and the valuation of property held for resale. Actual results may differ from those estimates and assumptions. 7 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 2. Cash and Investments
Cash and investments at fiscal year-end consists of the following:
Cash and investments $ 34,449
Cash and investments with fiscal agent 1,392
Total $ 35,841
The Successor Agency's cash and investments, except for cash and investments with fiscal agents, are invested in a pool managed by the Treasurer of the City. The Successor Agency does not own specific, identifiable investments of the pool. Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Citywide information concerning cash and investments, including authorized investments, concentration of credit risk, custodial credit risk, carrying amount, and market value of deposits and investments may be found in the notes of the City’s “Annual Comprehensive Financial Report” at https://riversideca.gov/finance/acfr.
A. Disclosures Relating to Fair Value Measurement and Application Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets, Quoted prices for identical or similar assets or liabilities in markets that are inactive, Inputs other than quoted prices that are observable for the asset or liability, Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the Successor Agency's own assumptions about the inputs market participants would use in pricing the asset or liability ( including assumptions about risk). The unobservable inputs are developed based on the best information available in the circumstances and may include the Successor Agency's own data.
The fair value of the Successor Agency's investments held by fiscal agent is comprised of money market funds and state investment pool which are not subject to fair value hierarchy p rescribed by G overnmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. 8 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 2. Cash and Investments
B. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s investment policy requires that the interest rate risk exposure be managed by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations .
Information about the sensitivity of the fair values of the Successor Agency's investments held by fiscal agent to market interest rate fluctuations is provided by t he following table that shows the distribution of the Successor Agency’s investments by maturity:
Remaining Maturity (in Months)
Total
12 Months
or Less
13 to 24
Months
25 to 60
Months
Money Market Funds $ 16 $ 16 $ - $ -
State Invesment Pool 1,376 1,376 - -
Total $ 1,392 $ 1,392 $ - $ -
C. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the actual rating as of year-end for each investment type:
Ratings as of Year End*
Total AAA A Unrated
Money Market Funds $ 16 $ 16 $ - $ -
State Invesment Pool 1,376 - - 1,376
Total $ 1,392 $ 16 $ - $ 1,376
*Fitch rating used with "-" and "+" removed for simplicity Note 3. Notes Receivable
Rehabilitation Notes Receivable
Notes receivable consist of $1,391 of rehabilitation loans. The loans were granted for a period of up to 55 years and bear interest at rates from 0 to 12 percent, which are secured by deeds of trust to individuals and businesses. 9 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 4. Long-Term Obligations
The following is a summary of changes in long-term obligations during the fiscal year:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Lease revenue bonds $ 4,296 $ 1,544 $ (4,296) $ 1,544 $ 121 Tax allocation bonds 147,714 - (12,208) 135,506 10,795
Direct borrowings:
Notes payable 3,918 - - 3,918 28
Total $ 155,928 $ 1,544 $ (16,504) $ 140,968 $ 10,944
Lease Revenue Bonds
Principal
Outstanding
$19,500 2024 Lease Revenue Bonds (Series A); 5.0%, due in annual installments from $1,725 to $2,610 through November 1, 2033. The net proceeds of the sale of the series 2024A Bonds were used to refund the 2012A Lease Revenue Refunding Bonds. The bonds are secured by lease payments on a portion of the City Hall Complex and the Lincoln Police Patrol Center. In the event of default, the Trustee may retain the Lease Agreement and hold the City liable for all Base Rental Payments on an annual basis. The rental payments may not be accelerated. Similar to the 2012A Bonds, the 2024A Bonds were distributed between Governmental Activities, Business-Type Activities, and Successor Agency to properly reflect their proportional share. The Successory Agency portion is $1,371. $ 1,371 Add: Unamortized bond premium 173
Total Lease Revenue Bonds $ 1,544
Remaining debt service will be paid by t he Successor Agency f rom future property t ax revenues. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 121 $ 66 $ 187
2027 131 59 190
2028 138 52 190
2029 145 45 190
2030 152 38 190
2031-2035 684 70 754
Premium 173 - 173
Total $ 1,544 $ 330 $ 1,874
10 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 4. Long-Term Obligations
The Successor Agency T ax Allocation Bonds are secured by t ax revenues deposited in the Redevelopment Property Tax Trust Fund for the Agency established and held by the County of Riverside Auditor-Controller pursuant to Section 34813(a)(2) of the Dissolution Act. Upon event of default, the principal due on the Bonds is subject to acceleration.
Tax Allocation Bonds
Principal
Outstanding
$62,980 Subordinate Tax Allocation Refunding Bonds (2014 Series A and B). The bonds were issued to refund certain obligations of the former Redevelopment Agency. Interest is due semi-annually on March 1 and September 1, commencing March 1, 2015. Principal is due in annual installments from $160 to $4,745 through September 1, 2034. The rate of interest varies from 0.6% to 5% per annum. $ 18,890
$114,815 Tax Allocation Refunding Bonds (2018 Series A and B). The bonds were issued to refund the 2007 Riverside Public Financing Authority R edevelopment Agency T ax Allocation Bonds (Series A, B, C and D). Principal is payable in annual installments from $140 to $9,180 through September 1, 2037. The rate of interest varies from 3.125% to 5% per annum. The refunding transaction resulted in a total net present value savings of $20,000. 103,225
Subtotal 122,115
Add: Unamortized bond premium 13,391
Total Tax Allocation Bonds $ 135,506
Remaining debt service will be paid by t he Successor Agency f rom future property t ax revenues. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 10,795 $ 5,392 $ 16,187
2027 11,135 4,844 15,979
2028 10,230 4,317 14,547
2029 10,785 3,799 14,584
2030 10,430 3,269 13,699
2031-2035 44,385 9,725 54,110
2036-2040 24,355 1,372 25,727
Premium 13,391 - 13,391
Total $ 135,506 $ 32,718 $ 168,224
11 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 4. Long-Term Obligations
These notes payable have been issued to promote development and expansion within the City’s redevelopment areas.
Direct Borrowings: Notes Payable
Principal
Outstanding
Pepsi Cola Bottling Company of Los Angeles, 10.5%, payable in net annual installments of $341, subject to recording of completion. Interest accrues on the outstanding note balance upon issuance of the Certificate of Completion. Principal and interest on the note are payable solely from Project Property Tax Increment. Payments start upon the time sufficient increment is generated in one year to pay t he annual principal and interest on the note.
Upon 25 years from the first anniversary d ate of the certificate of completion, all unpaid principal together with any accrued interest will be forgiven. $ 2,987 Smith’s Food and Drug Centers Inc., 6% payable in variable installments, subject to payment of annual Community Facilities District assessment. The note is secured under a developer agreement 931
Total Notes Payable $ 3,918
Remaining debt service will be paid by t he Successor Agency f rom future property t ax revenues. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 28 $ 314 $ 342
2027 31 311 342
2028 34 307 341
2029 38 304 342
2030 42 300 342
2031-2035 286 1,423 1,709
2036-2040 471 1,238 1,709
2041-2045 777 933 1,710
2046-2050 2,211 430 2,641
Total $ 3,918 $ 5,560 $ 9,478
Note 5. Advances from the City of Riverside
The former Redevelopment Agency had entered into various arrangements with the City. The State of California, Department of Finance had concluded that certain loans were not enforceable obligations, which would have resulted in the repayment of only 8 0 percent of the loans. The City s ued the State of California, Department of Finance and in July 2013, a Sacramento County Superior Court ruled that the loans are enforceable obligations and therefore must be repaid in full. The outstanding Advance from the City of Riverside at June 30, 2025 was $1,098, which is related to the Riverside Golf Course acquisition. The Advance from the City of Riverside will be paid with future property tax revenues.
Note 6. Net Position/(Deficit)
The deficit in the Successor Agency Trust Fund will be reduced over the years as the related debt is paid-off with funds received from the Redevelopment Property Tax Trust Fund (RPTTF), which is administered by the County Auditor-Controller.
12 13
Honorable Members of the Oversight Board
Successor Agency of the Redevelopment Agency
of the City of Riverside
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Successor Agency’s financial statements are free from material m isstatement, we performed tests of i ts compliance with c ertain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on t he financial statements. H owever, 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 m atters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The p urpose of this r eport is solely to describe the scope of o ur t esting o f internal c ontrol and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal c ontrol o r on compliance. This r eport i s an i ntegral p art of a n audit p erformed i n accordance with Government A uditing Standards in c onsidering the entity’s i nternal c ontrol and compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Irvine, California
December , 2025
14