Audit Committee
November 30, 2022

1 Independent Auditor Presentation –
Audit of the Basic Financial Statements
For the fiscal year ended June 30, 2022
Audit Committee November 30, 2022
Amy L. Meyer, CPA
Partner
1 Agenda
 Background
 Audit Reports and Other Reports
 Results of Audit
 Key Financial Highlights
 Report on Memorandum on Internal Control (MOIC)
 Required Communications
 Results of Agreed Upon Procedures
2 11/30/22 Item #2
2 Background
 Maze & Associates – we are an independent CPA firm,
independent from the Cit y of Santa Clara and its
Component Units.
 Audit was conducted in accordance with auditing
standards generally accepted in the United States of
America and Government Auditing Standards issued by
the Comptroller General of the United States of America. 3 Audit Reports
 City (Annual Comprehensive Financial Report)
 Silicon Valley Power (Electric Enterprise Fund)
(Basic Financial Statements)
 Single Audit (federal award programs –
in process – due by 3/31/23)
4 3
Other Reports
 San Jose-Santa Clara Clean Water
Financing Authority –
Bond Compliance Letter
 Agreed Upon Procedures Reports:
Investment Policy Compliance
Gann Limit Calculation
5 Results of Audit – ACFR and SVP
 Independent Auditor’s Reports
 (pg 1 of ACFR and SVP)
Unmodified/clean opinions… fairly stated, in all
material respects…in conformity with accounting
principles generally accepted (GAAP) in the USA.
 Includes Emphasis of a Matter –
 Change in Accounting Principles –
Implementation of GASB Statement No. 87, Leases
6 4
Results of Audit – ACFR and SVP
(continued)
 Management’s Discussion and Analysis
(MD&A)
(page 5 of ACFR; page 4 of SVP)
Prepared by Finance Staff
Discusses significant activity for the fiscal year
7 Key Financial Highlights of ACFR
 Management’s Discussion and Analysis (page 5):
 Introduces the basic financial statements and provides an analytical overview of the City’s financial activities
 Basic Financial Statements (page 27)
 Includes the financial activities of the City, the Santa Clara Housing Authority, the Santa Clara Stadium Authority, the City of Santa Clara Sports and Open Space Authority, and the City of Santa Clara Public Facilities Financing Corporation (legally separate but are component units of the City)
 Notes to the Basic Financial Statements (page 60)
 An integral part of the ACFR that provides information on significant financial transactions of the City (i.e. Note 13 PERS, Note 16 Other Post Employment Benefits, Note 10 Long-term Debt)
8 5
Key Financial Highlights of ACFR
(continued)
 City Assets exceeded Liabilities by $2.2 billion in fiscal year 2021-22
 The City’s net position increased by $198 million when compared to the prior year
 Pension liabilities declined $151 million, but beware…  Outstanding long-term debt decreased by $33 million
(primarily due to timing of Stadium Authority debt
payments)
 General Fund’s fund balance equaled $141 million, a
decrease of $37 million from the prior year (assets of $334 million and liabilities and deferred inflows of resources of $193 million)
9 Key Financial Highlights of ACFR
(continued)
 General Fund – Fund Balance (pages 137-141)
10 Category Amount Description
Nonspendable $ 7 million Supplies, Inventory, Leases, Long Term Interfund Advances
Restricted 23 million Grants, Donations, Pension Rate Stabilization Committed 24 million Land Sale Reserve, Historical Preservation Assigned 10 million Encumbrances
Unassigned 77 million Budget Stabilization Reserve, Capital Project Reserve
Total $141 million
6 Report on Memorandum on
Internal Control and Required
Communications (MOIC)
 Three possible categories for comments:
Material Weakness
Significant Deficiency
Other Matters
11 Required Communications
 No Changes in Accounting Policies, other than:
 Implementation of GASBs 87 and 97
 Other GASBs –
 89 – no impact
 90 – no impact
 93 – no impact (will revise FY23 disclosures)
 99 – no significant impact
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Required Communications
(continued)
 Unusual Transactions, Controversial or Emerging Areas  Accounting Estimates
 Disclosures
 Difficulties Encountered in Performing the Audit – none  Corrected and Uncorrected Misstatements
 Disagreements with Management – none
13 Results of Agreed Upon Procedures
 Investment Policy Compliance
 No exceptions
 Gann Limit Calculation
 No exceptions
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QUESTIONS?
15 “We are in the business to help our clients succeed”