Santa Clara Stadium
Authority (the Authority)
Discussion with Those
Charged with Governance
Audit results for the year ending March 31, 2023
August 30, 2023
2© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent memb er firms affiliated with KPMG International Limited, a privat e English company limited by guarantee. All rights reserved.
Audit results required communications and other matters Matters to communicate Response
Outstanding matters as of August 30, 2023 Testing of a limited number of accounts, finalization of manger and partner sign offs, and receipt of management representations.
Significant unusual transactions No significant u nusual transactions identified during the audit.
Uncorrected audit misstatements No uncorrected misstatements identified during the audit.
Corrected audit misstatements No corrected misstatements identified during the audit.
Financial statement presentation and disclosure omissions No matters to communicate.
Auditors’ report We expect to issue an unmodified opinion on the financial statements to the Authority.
Changes to our risk assessment and planned audit strategy No matters to report.
Significant accounting policies and practices No matters to report. See slide 5.
Related parties Certain costs, primarily staff salaries and related costs, are charged to the Authority from the City of Santa Clara. Not considered a significant related party transaction.
Going concern No matters to report.
Subsequent events No matters to report.
3© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent memb er firms affiliated with KPMG International Limited, a privat e English company limited by guarantee. All rights reserved.
Audit results required communications and other matters Matters to communicate Response
Noncompliance with laws and regulations No matters to report.
Significant difficulties encountered during the audit No matters to report.
Significant findings or issues discussed, or the subject of correspondence with management No matters to report.
Management’s consultation with other accountants No matters to report.
Difficult or contentious matters for which the auditor consulted No matters to report.
Disagreements with management No matters to report.
Other significant matters No matters to report.
4© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent memb er firms affiliated with KPMG International Limited, a privat e English company limited by guarantee. All rights reserved.
Audit results required communications and other matters Illegal acts or fraud No actual or suspected fraud involving management, employees with significant roles in internal control, or where fraud results in a material misstatement in the financial statements were identified during the audit.
Written communications Engagement letter, management representation letter, including summary of uncorrected misstatements, internal control deficiency letter, and minutes representation letter to be distributed under separate covers.
Independence We hereby affirm that we are independent accountants with respect to the Authority under the relevant professional and regulatory standards.
Inquiries See slide 6.
Matters to communicate
5© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent memb er firms affiliated with KPMG International Limited, a privat e English company limited by guarantee. All rights reserved.
Significant accounting policies and practices
Description of significant accounting policies and practices Audit findings • Cash and cash equivalents and restricted cash
• Accounts Receivable
• Unearned revenue and revenue recognition
• Leases (GASB 87 adoption)
Qualitative aspects
• Refer to Note 2 of the financial statements for the detailed description of the significant accounting policies. Management has appropriately applied such policies to the Authority’s books and records as of and for the year ended March 31, 2023.
6© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent memb er firms affiliated with KPMG International Limited, a privat e English company limited by guarantee. All rights reserved.
Inquiries
Are those charged with governance aware of:
• Matters relevant to the audit, including, but not limited to, violations or possible violations of laws or regulations? • Any significant communications with regulators?
• Any developments in financial reporting, laws, accounting standards, corporate governance, and other related matters, and the effect of such developments on, for example, the overall presentation, structure, and content of the financial statements, including the following:
- The relevance, reliability, comparability, and understandability of the information presented in the financial statements - Whether all required information has been included in the financial statements, and whether such information has been appropriately classified, aggregated or disaggregated, and presented?
Do those charged with governance have knowledge of:
• Fraud, alleged fraud, or suspected fraud affecting the Company? - If so, have the instances been appropriately addressed and how have they been addressed? Additional inquiries:
• What are those charged with governance’s views about fraud risks in the Company? • Who is the appropriate person in the governance structure for communication of audit matters during the audit? • How are responsibilities allocated between management and those charged with governance? • What are the Company’s objectives and strategies and related business risks that may result in material misstatements? • Are there any areas that warrant particular attention during the audit and additional procedures to be undertaken? • What are those charged with governance’s attitudes, awareness, and actions concerning (a) the Company’s internal controls and their importance in the entity, including oversight of effectiveness of internal controls, and (b) detection of or possibility of fraud? • Have there been any actions taken based on previous communications with the auditor? • Has the Company entered into any significant unusual transactions? • Whether the entity is in compliance with other laws and regulations that have a material effect on the financial statements? • What are the other document(s) that comprise the annual report, and what is the planned manner and timing of issuance of such documents? • Have any subsequent events occurred that might affect the financial statements? kpmg.com/socialmedia
For additional information and audit committee resources, including National Audit Committee Peer Exchange series, a Quarterly webcast, and suggested publications, visit the KPMG Audit Committee Institute (ACI) at www.kpmg.com/ACIQuestions? This presentation to those charged with governance is intended solely for the information and use of those charged with governance and management and is not intended to be and should not be used by anyone other than these specified parties. This presentation is not intended for general use, circulation or publication and should not be published, circulated, reproduced or used for any purpose without our prior written permission in each specific instance.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. © 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.