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Home My WebLink AboutAGENDA REPORT 2025 0305 CC REG ITEM 10ICITY OF MOORPARK, CALIFORNIA City Council Meeting of March 5, 2025 ACTION APPROVED STAFF RECOMMENDATION. (ROLL CALL VOTE: 4-0, COUNCILMEMBER DELGADO ABSENT) BY A. Hurtado. I. Consider Annual Comprehensive Financial Report (ACFR) and Other Audit Reports for Fiscal Year Ended (FYE) June 30, 2024. Staff Recommendation: Accept and file the Annual Comprehensive Financial Report and additional auditor reports for fiscal year ending June 30, 2024. (Staff: Hiromi Dever, Finance Director) (ROLL CALL VOTE REQUIRED) Item: 10.I. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Hiromi Dever, Finance Director DATE: 03/05/2025 Regular Meeting SUBJECT: Consider Annual Comprehensive Financial Report (ACFR) and Other Audit Reports for Fiscal Year Ended (FYE) June 30, 2024 SUMMARY The City’s independent auditor, Lance, Soll & Lunghard LLP (LSL), has completed their audit of the financial statements of the City and its component units for the fiscal year ending June 30, 2024. In connection with the audit, Finance staff, with the assistance of LSL and other City departments, has prepared the Annual Comprehensive Financial Report (ACFR) as well as other audit reports. The reports are described and presented herein for City Council approval. DISCUSSION State law requires all general-purpose local governments, within seven months of the close of each fiscal year, to publish a complete set of financial statements presented in conformity with generally accepted accounting standards as promulgated by the Government Accounting Standards Board (GASB). This report is commonly referred to as the Annual Comprehensive Financial Report (ACFR) and must be audited by an independent auditor using generally accepted government auditing standards. The ACFR includes disclosures designed to enable the reader to gain an understanding of the City’s financial matters and is provided to several government agencies and financial institutions in order to comply with various reporting, financial, and subsequent bond disclosure requirements. Within the ACFR, the overall financial picture of the City is presented on a government- wide basis. This is designed to provide readers with a broad overview of the City's finances. These statements show the June 30, 2024, fiscal year balances and overall results of operations for the period then ended, for all City funds. Presented separate from the government-wide statements, but included within the ACFR disclosures are the financial statements for fiduciary funds, including the Successor Agency to the Redevelopment Agency of the City of Moorpark (Successor Agency) and the Moorpark Watershed, Parks, Recreation and Conservation Authority. Item: 10.I. 530 Honorable City Council 03/05/2025 Regular Meeting Page 2 LSL has issued an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2024. An unmodified or “clean” opinion concludes that the financial statements are presented fairly in all material respects and contain no material misstatements. In connection with the City’s audit, LSL has also issued letters pertaining to their examination of the City’s internal controls and other findings. These letters are attached and describe LSL’s agreed upon procedures for establishing Appropriation Limits, describe the methodology and findings of the ACFR and outline any findings while measuring compliance with procedures. All LSL letters are attached for reference. The ACFR and the Housing Successor Fund Financial Statements are posted on the City’s website: http://www.MoorparkCA.gov Senate Bill 341 (SB 341) requires audited Financial Statements to be prepared for the Housing Successor Fund which LSL has also completed as part of their work and is attached. ENVIRONMENTAL COMPLIANCE This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT There is no financial impact associated with receiving the Annual Comprehensive Financial Reports. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Accept and file the Annual Comprehensive Financial Report (ACFR) and additional auditor reports for fiscal year ending June 30, 2024. Attachment 1: City of Moorpark ACFR for Fiscal Year Ended June 30, 2024 Attachment 2: Independent Auditors’ 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 Attachment 3: Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets Attachment 4: Audit Communication Letter Attachment 5: Housing Successor Fund Financial Statements 531 Improving and preserving the quality of life in Moorpark Fiscal Year Ended June 30, 2024 Annual Comprehensive Financial Report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¶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±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±&XVWRGLDO)XQGV &RPELQLQJ6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ±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ayor RENEE DELGADO Councilmember CHRIS BARRETT Councilmember TOM MEANS Councilmember DR. ANTONIO CASTRO Councilmember FINANCE DEPARTMENT | 323 Science Drive Moorpark, California 93021 )HEUXDU\ Honorable Mayor, Members of the City Council, and Citizens of the City of Moorpark: ,WLVRXUSOHDVXUHWRSUHVHQWWKH$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW$&)5RIWKH&LW\RI 0RRUSDUN&DOLIRUQLDWKH³&LW\´RU³0RRUSDUN´IRUWKHILVFDO\HDUHQGHG-XQH 6WDWHODZUHTXLUHVDOOJHQHUDOSXUSRVHORFDOJRYHUQPHQWVZLWKLQVHYHQPRQWKVRIWKHFORVHRI HDFKILVFDO\HDUWRSXEOLVKDFRPSOHWHVHWRIILQDQFLDOVWDWHPHQWVSUHVHQWHGLQFRQIRUPLW\ZLWK JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV *$$3 DV SURPXOJDWHGE\ WKH *RYHUQPHQW $FFRXQWLQJ 6WDQGDUGV %RDUG *$6% 7KH $&)5 IXUWKHU LQFOXGHV GLVFORVXUHV GHVLJQHG WR HQDEOHWKHUHDGHUWRJDLQDQXQGHUVWDQGLQJRIWKH&LW\¶VILQDQFLDOPDWWHUV &LW\ PDQDJHPHQW DVVXPHV IXOO UHVSRQVLELOLW\ IRU WKH FRPSOHWHQHVV DQG UHOLDELOLW\ RI WKH LQIRUPDWLRQFRQWDLQHGLQWKLVUHSRUWEDVHGXSRQDFRPSUHKHQVLYHIUDPHZRUNRILQWHUQDOFRQWUROV HVWDEOLVKHGIRUWKDWSXUSRVH%HFDXVHWKHFRVWRILQWHUQDOFRQWUROVKRXOGQRWH[FHHGDQWLFLSDWHG 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)RUWKH<HDU(QGHG-XQH 9DULDQFHZLWK )LQDO%XGJHW $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH 5(9(18(6 8VHRIPRQH\DQGSURSHUW\ 0DLQWHQDQFHDVVHVVPHQWV 0LVFHOODQHRXV 7RWDOUHYHQXHV (;3(1',785(6 3XEOLFVDIHW\ 3XEOLFVHUYLFHV 3DUNVDQGUHFUHDWLRQ &DSLWDORXWOD\ 7RWDOH[SHQGLWXUHV ([FHVVGHILFLHQF\RIUHYHQXHV RYHUXQGHUH[SHQGLWXUHV 27+(5),1$1&,1*6285&(686(6 7UDQVIHULQ 7RWDORWKHUILQDQFLQJVRXUFHVXVHV 1HWFKDQJHLQIXQGEDODQFHV )XQGEDODQFHVEHJLQQLQJ )XQGEDODQFHVHQGLQJ 105 661 CITY OF MOORPARK, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Endowment For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Charges for services 3,317,107$ 668,071$ -$ (668,071)$ Use of money and property 364,000 424,000 526,347 102,347 Total revenues 3,681,107 1,092,071 526,347 (565,724) EXPENDITURES Public services 20,001 26,501 390 26,111 Capital outlay 610,446 693,352 79,867 613,485 Total expenditures 630,447 719,853 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Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. ATTACHMENT 2 711 To the Honorable Mayor and Members of the City Council City of Moorpark, California Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, California February 18, 2025 712 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS To the Honorable Mayor and Members of the City Council City of Moorpark, California We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Moorpark, California, for the year ended June 30, 2024. These procedures are the responsibility of the City, which were agreed to by the City of Moorpark and the League of California Cities (as presented in the publication entitled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City of Moorpark in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City of Moorpark's management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation). The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of recomputing the Appropriations Limit Worksheet No. 6 (or other alternative computation). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures performed and our findings were as follows: 1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by line D, ratio of change and compared the resulting amount to line E, this year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above. Finding: No exceptions were noted as a result of our procedures. 4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year. Finding: No exceptions were noted as a result of our procedures. ATTACHMENT 3 713 To the Honorable Mayor and Members of the City Council City of Moorpark, California We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information of the City Council and management of the City of Moorpark and is not intended to be, and should not be, used by anyone other than these specified parties. Brea, California May 13, 2024 714 CITY OF MOORPARK 2023-2024 APPROPRIATIONS LIMIT CALCULATION A. 2022-2023 APPROPRIATIONS LIMIT: $ 47,311,913 B. 2023-2024 CHANGE IN PER CAPITA PERSONAL INCOME: 4.44% C. 2023-2024 CHANGE IN POPULATION: -0.65% D. RATIO OF CHANGE (1.0444 x 0.9935) x 1.00376114 E. 2023-2024 APPROPRIATIONS LIMIT: $ 49,091,380 ($47,311,913 x 1.0376114) 715 LSLCPAS.COM February 18, 2025 To the Honorable Mayor and Members of the City Council City of Moorpark, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Moorpark, (the “City”) for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 18, 2025. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year ended June 30, 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were: Management’s estimates of the net pension liability, net other postemployment benefits liability are based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the net pension liability, other postemployment benefits in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the course of our audit. ATTACHMENT 4 716 To the Honorable Mayor and Members of the City Council City of Moorpark, California Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February 18, 2025. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the general fund and major special revenue funds, and the required pension and other postemployment benefits schedules, which are required supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 717 To the Honorable Mayor and Members of the City Council City of Moorpark, California Future GASB Pronouncements The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management: Fiscal Year 2024-2025 GASB Statement No. 101, Compensated Absences. GASB Statement No. 102, Certain Risk Disclosures. Fiscal Year 2025-2026 GASB Statement No. 103, Financial Reporting Model Improvements. GASB Statement No. 104, Disclosure of Certain Capital Assets. Future Projects Comprehensive Project, Revenue and Expense Recognition. Major Project, Going Concern Uncertainties and Severe Financial Stress. Major Project, Infrastructure Assets. Practice Issue, Classification of Nonfinancial Assets. Practice Issue, Risks and Uncertainties Disclosures. Practice Issue, Subsequent Events. Restriction on Use This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. 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6,307,482$ 6,257,145$ Less Unavailable Amounts: Land held for resale (6,316,148)$ (6,316,148)$ (6,316,148) (6,316,148) Available Housing Successor Funds (8,666) (59,003) Limitation (greater of $1,000,000 or four years deposits) Aggregate amount deposited for last four years: 2023 - 2024 N/A 20,100$ 2022 - 2023 12,722$ 12,722 2021 - 2022 27,374 27,374 2020 - 2021 17,620 17,620 2019 - 2020 26,570 N/A Total 84,286$ 77,816$ Base Limitation 1,000,000$ 1,000,000$ Greater amount 1,000,000 1,000,000 Computed Excess/Surplus None None Low and Moderate All Project Area July 1, 2024 Low and Moderate All Project Area July 1, 2023 Housing Funds Housing Funds 16 737