Audit Committee
November 27, 2023

Independent Auditor Presentation –
Audit of the Basic Financial Statements
For the fiscal year ended June 30, 2023
Audit Committee November 27, 2023
Grace Zhang, CPA
Audit 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 Background
 Maze & Associates – we are an independent CPA firm,
independent from the City 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 3/31/24)
4 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. 96, SBITA
6 Results of Audit – ACFR and SVP
(continued)
 Management’s Discussion and Analysis
(MD&A)
(page 5 of ACFR; page 5 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 28)
 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 59)
 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 Key Financial Highlights of ACFR
(continued)
 City Assets exceeded Liabilities by $2.3 billion in FY23  The City’s net position increased by $141 million
 Pension liabilities increased $214 million (change of the assumption and the discount rate)
 Outstanding long-term debt decreased by $52 million ($46 million repayment in enterprise funds)
 General Fund’s fund balance equaled $153 million, a $12 million increase
9 Key Financial Highlights of ACFR
(continued)
 General Fund – Fund Balance (Note 18 page 140)
10 DescriptionAmountCategory
Supplies, Inventory, Leases$3.4 millionNonspendable
Grants, Donations, Pension Rate Stabilization24.7 millionRestricted Land Sale Reserve, Historical Preservation18.6 millionCommitted Encumbrances13.9 millionAssigned
Budget Stabilization Reserve, Capital Project
Reserve

92.8 millionUnassigned
$153.3 millionTotal
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 96
12 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
14 QUESTIONS?
15 “We are in the business to help our clients succeed”