Victorville City Council
March 1, 2022

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WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor February 22, 2022
City of Victorville
June 30, 2021
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Outline
• Scope of Services
• Independent Auditors’ Report
• Report on Internal Control
• Communication to Those Charged with Governance
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Scope of Services
• Audit of the annual financial statements for the
year ended June 30, 2021 in accordance with
Generally Accepted (US) and Government Auditing
Standards
– City of Victorville (City) and blended component
units:
◊ Southern California Logistics Airport Authority (SCLAA) ◊ Victorville Water District (Water District)
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Independent Auditors’ Report
• Audit of the financial statements for the year ended
June 30, 2021
• Management is responsible for preparation and fair
presentation of the financial statements and for
internal controls over those financial statements
• Auditors’ responsibility is to express opinions on the financial statements
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Independent Auditors’ Report
• Standards require that the audit is planned and
performed to obtain reasonable assurance that
financial statements are free from material
misstatement
• Audit evidence is sufficient and appropriate to
provide a basis for our audit opinions
• Unmodified opinions for the City, SCLAA, and Water
District for the year ended June 30, 2021
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Independent Auditors’ Report
• Emphasis of Matter
– The City implemented GASB Statement No. 84, Fiduciary Activities
◊ Previously reported Deposit and Foxborough Rail fiduciary funds were reclassified to special revenue funds with a portion of the deposit fiduciary fund reclassified to the General Fund since these activities no longer meet the definition of fiduciary activities.
◊ The impact is reflected in Note 23 to the financial statements, which shows a restatement of beginning fund balance and net position.
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Report on Internal Control
• Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
• Material Weaknesses:
– Pension Amounts
– Capital Assets
– Grants Receivable and Unavailable Revenue
• Significant Deficiencies:
– Update the SCLAA Loan agreement
– Prepaid Water Connection Fees
• Noncompliance:
– None noted
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Communication to Those Charged with
Governance
• The planned scope and timing of the June 30, 2021
audit was communicated to the City in a planning
meeting
• Management is responsible for the selection and
use of appropriate accounting policies, which are
described in Note 1 to the financial statements
• The City implemented GASB Statement No. 84
• Management has selected and applied other
significant accounting policies appropriately and
consistently
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Communication to Those Charged with
Governance
• Significant estimates are reported in the financial
statements
• Corrected and uncorrected misstatements
• Representations related to the audit were obtained
from management
• To our knowledge, the City did not consult with
other accountants regarding auditing or accounting
matters
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