Victorville City Council
April 18, 2023

©2020 CliftonLarsonAllen LLP
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor City of Victorville
June 30, 2022
©2020 CliftonLarsonAllen LLP
Create Opportunities
Outline
• Scope of Services
• Independent Auditors’ Report
• Report on Internal Control
• Communication to Those Charged with Governance
©2020 CliftonLarsonAllen LLP
Create Opportunities
Scope of Services
• Audit of the annual financial statements for the
year ended June 30, 2022 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)
©2020 CliftonLarsonAllen LLP
Create Opportunities
Independent Auditors’ Report
• Audit of the financial statements for the year ended
June 30, 2022
• Unmodified opinion for the City for the year ended
June 30, 2022
• We conducted our audit in accordance with
auditing standards generally accepted in the United
States of America (GAAS) and Government Auditing
Standards (GAS)
• Audit evidence is sufficient and appropriate to
provide a basis for our audit opinions
©2020 CliftonLarsonAllen LLP
Create Opportunities
Independent Auditors’ Report
• Management is responsible for preparation and fair
presentation of the financial statements and for
internal controls over those financial statements
• Auditors’ objective is to obtain reasonable
assurance about whether the financial statements,
as a whole, are free from material misstatement
and to issue a report with this opinion
©2020 CliftonLarsonAllen LLP
Create Opportunities
Independent Auditors’ Report
• An audit in accordance with GAAS and GAS
includes:
– Maintaining professional skepticism
– Identifying and assessing risks of material misstatement of the financial statements
– Obtain an understanding of internal control in order to design audit procedures that are appropriate in the
circumstances
– Evaluate appropriateness of accounting policies used and significant accounting estimates made by management
– Evaluate overall presentation of the financial statements ©2020 CliftonLarsonAllen LLP
Create Opportunities
Independent Auditors’ Report
• Emphasis of Matters
– The City implemented GASB Statement No. 87, Leases
◊ City is lessee: lease liability and intangible right-to-use lease asset
◊ City is lessor: lease receivable and deferred inflow of resources ©2020 CliftonLarsonAllen LLP
Create Opportunities
Independent Auditors’ Report
• Emphasis of Matters
– Restatement due to correction of errors (Note 23):
◊ SCLAA:
• $8.2 million capital expenses not capitalized in the prior year • $201 thousand of depreciation expense for those assets • $756 thousand liability for rental credits due to tenants for capital improvements made and contributed to the Airport
• $78 thousand for revenue recorded twice for a receivable ◊ Electric Utility Enterprise Fund:
• $592 thousand to remove revenue recognized for funds received that must be returned to ratepayers if not utilized, which should have been recorded as unearned revenue
©2020 CliftonLarsonAllen LLP
Create Opportunities
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
• Noncompliance:
– None noted
©2020 CliftonLarsonAllen LLP
Create Opportunities
Communication to Those Charged with
Governance
• The planned scope and timing of the June 30, 2022
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. 87
• Management has selected and applied other
significant accounting policies appropriately and
consistently
©2020 CliftonLarsonAllen LLP
Create Opportunities
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
©2020 CliftonLarsonAllen LLP
CLAconnect.com
12