Finance Committee
January 12, 2022

Independent Auditor Presentation
For fiscal year ended June 30, 2021
City of San Leandro
Katherine Yuen, CPA
Partner
1 Background
Information
2 Maze & Associates
In business
since 1979
Municipal
auditor
since
1987
> 150
municipal
entities
Independent
3 Annual Audit
4 Audit of City’s financial statements
Agreed-upon procedures on the City’s Appropriation Limit calculation
Single Audit
Audits of Alameda CTC Measures B, BB and VRF Funds
Annual Timing
• June 2021
• Internal control environment Interim
• October 2021
• Verification of financial data Final
Grant Audits • November 2021
5 Standards
Auditing standards
generally
accepted in the
USA
Government
Auditing
Standards
Applicable grant
requirements
6 New Accounting Pronouncement
GASB 84 Fiduciary Activities
◼ Cherrywood Agency Fund
Cherrywood Custodial Fund
◼ Deposit Agency Fund
part of the General Fund
◼ PARS OPEB Trust Fund
no longer included in the City’s financial
statements
7 Audit Result
8 Results
◼ City’s Financial Audit
 Unmodified (i.e. Clean) Opinions
◼ Appropriation Limit calculation AUP
 No exception noted
◼ Single Audit
 Unmodified (i.e. Clean) Opinions
◼ Alameda CTC Measures
 Unmodified (i.e. Clean) Opinions
9 Overview of ACFR
10 Components of Report
Comprehensive Annual
Financial Report (ACFR)
Basic Financial Statements
(BFS)
Other components
11 12
High Level Summary
◼ Management’s Discussion and Analysis
◼ Note 9 Net Position and Fund Balances
◼ Statistical Section
13 Financial Results
14 Entity-wide vs. Fund Financial Statements
15 Entity-wide Level Fund Level
Current Assets
Long-Term Assets
Current Liabilities
Long-Term Liabilities
Equity Net Position Fund Balance
Entity-wide
Assets $506.6m (8.8% )
Deferred outflows $35.6m (7.9% )
Liabilities $343.4m(10.6% )
Deferred inflows $5.6m (-27.0% )
Net position $193m (7.2% )
16 Net Position
Net Investment in Capital
Assets ($186.2m, 96.4%)
Restricted ($51.6m, 26.7%)
Unrestricted (-$44.6m, -23.1%)
17 FY21 vs. FY20 (in millions)
18 Net Position at 6/30 FY21 FY20 Change
Net Investment in
capital assets
$186.1 $188.9 ($2.8)
Restricted $51.6 $64.5 ($12.9)
Unrestricted ($44.6) ($73.3) $28.7
Total $193.1 $180.1 $13.0
Financial Highlights – General Fund
◼ Fund Balance $83.7m
19 Nonspendable
$7.6m
Restricted
$50k
Assigned
$9.5m
Unassigned
$66.5m
Financial Highlights – General Fund
◼ Current year increase 19.2m
20 •$4.9m interfund transfer from the Capital Projects Fund •$1.2m one-time revenue sale of property
•Revenues $8.6m above final budget; expenditures
$7.4m below final budget:
•Improved sales tax and real property transfer tax revenues •Open purchase orders at year end
•Deferred purchases
•$1.7m set aside for police budget reallocation
Note 3 – Loans Receivable
21 Note 13 – Pension Plan
Miscellaneous Safety
◼ 6/30/21 $99.9m
◼ 6/30/20 $92.2m
◼ Increase mostly due to
interest on liability plus
service cost exceeding
projected earnings on
investments
22 Note 14 – OPEB
23 Memorandum on
Internal Control
and Required Communications
24 Memorandum on Internal Control (MOIC)
and Required Communications
25 MOIC
Control
Deficiency Other Matters
Control Deficiency
26 • The design or operation of a What? control
Who? • Management or employees
• In the normal course of
performing their assigned
functions
When?
• The prevention, detection or
correction of misstatements on a
timely basis
Does not allow
27 Control Deficiency
Reported on MOIC
Material
Weakness
Significant
Deficiency
FY 21 Audit
No Material
Weakness
No Significant
Deficiency
28 QUESTIONS?
29