HomeMy WebLinkAboutItem No. 11 PPP 11-13-2024 Administration Committee - 2024 ACFR & Davis Farr Audit Results REVISEDAnnual Comprehensive Financial Report (ACFR)
For the Year Ended June 30, 2024
Administration Committee
Presented by Ruth Zintzun, Finance Manager and Bryce Hockensmith, Accounting Supervisor
November 13, 2024
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Financial Cycle
2
July
Fiscal Year Budget
effective
November
Board consideration of ACFR and PAFR
April
Auditor interim field work
September
Auditor final field work
Ongoing
Monthly operating budget review
June
End of Fiscal Year
Quarterly
Financial reporting
2
FY 23/24 Budget vs Actuals
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Revenues
Expenses
$677M
3
CIP Expenditures
4
$262.3 Million
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Available Resources
5
$155.2 million decrease
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Debt Profile
6
Generated $23 million in savings by refunding bonds
Paid down $134 million of taxable debt
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ORANGE COUNTY SANITATION DISTRICT
Presentation of Audit Results
Fiscal Year Ended June 30, 2024
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Overview of Audit Approach
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Substantive testing of all material assets and liabilities using 3rd party confirmations and other procedures
Evaluation of internal controls for key accounting cycles and information systems
Analytical testing of revenues and expenditures with substantive testing when the change from the prior year was material
Compliance testing of investments, debt, and disbursements
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Audit Reports Issued
9
Annual Comprehensive Financial Report
Unmodified audit opinion
The financial statements and footnotes are presented fairly, in all material respects, in accordance with generally accepted accounting principles
Agreed Upon Procedures
Appropriations (GANN) Limit
Indemnity Agreement
Bond Comfort Letter
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Audit Results
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Government Auditing Standards Letter
No material instances of noncompliance
No significant deficiencies or material weaknesses in internal controls
Communication to Those in Governance
No material audit adjustments detected
Disclosure of significant accounting estimates:
Judgments concerning which capital project expenditures to capitalize
Actuarial calculations of pension and OPEB
Our audit is performed is accordance with Government Auditing Standards, which requires us to test for compliance with certain laws and regulations that we believe are direct and material
to the financial statements
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Audit Results
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Auditor Risk Assessment and Results
Accounting for capital projects
Accounting for issuance of new debt and related defeasance of debt
Unpredictability Test
Selected 10 significant vendor transactions/contracts
Tested for compliance with bidding and purchasing policies
No instances of noncompliance noted
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Upcoming Changes in Standards
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GASB 101: Compensated Absences – FY 24/25
GASB 102: Certain Risk Disclosures – FY 24/25
GASB 103: Financial Reporting Model Improvements – FY 25/26
Changes to Management’s Discussion & Analysis
Changes to Proprietary Fund reporting of operating & nonoperating activities
Risk Disclosures – increases disclosure about concentrations and constraints (imitations on raising revenue and spending)
Financial Reporting Model – Nonoperating: 1) subsidies received and provided 2) contributions to endowments 3) revenues/expenses related to financing 4) disposal of capital assets and
inventory 5) investment income/expense
Subsidies – resources received for which no goods/services are provided to the other party
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Questions or Comments?
13
Next Steps
Board consideration of ACFR and PAFR
14
Apply for industry awards
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