lsl 2014 audit results and financial analysis
TRANSCRIPT
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LANCE, SOLL & LUNGHARD, LLP
Orange County 714.672.0022
Temecula Valley 951.304.2728
Silicon Valley 408.573.6360
www.LSLCPAS.com
CITY OF CORONA
2014 FINANCIAL AND AUDIT RESULTS
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INTRODUCTIONS
Debbie Harper, CPA - PartnerLance, Soll, & Lunghard (LSL)
14+ years with LSL
Serve on State and National Specialty Committeesfor Local Governments
LSL has served local governments since 1929
3 office locations – Temecula Valley, Silicon Valley, and Orange County (serves City of Corona)
Full-service firm (tax, attestation, consulting)
Specialize in City Government across California
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o m Audit Results are provided in three letters:
1.Audit Communication Letter (SAS 114 – conclusion)a. Summarizes the audit interaction with Managementb. Changes and/or entries made to properly state the financials that were
significant and agreed to by Management during the course of our testingc. Changes in accounting principles or practices d. Significant transactionse. Implemented and upcoming accounting pronouncements.
2.Report on Internal Controls and Other Mattersa. Identifies any internal control deficiencies that we want to bring to your
attentionb. Identifies any compliance findings or other matters that we noted outside
the internal control deficiencies that we became aware of
3.Opinion Lettera. Identifies what our opinion coversb. Responsibilities of Management and Auditorsc. Our Opinion
2013-2014 AUDIT COMMUNICATION
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o m Fiscal Year 2013-2014 Audit Results were provided in these three letters:
1.Audit Communication Letter (SAS 114 – conclusion)a. No issues or difficulties with performing the auditb. No corrected or uncorrected misstatements notedc. No changes to the City’s accounting practices/principles d. Significant transaction this year related to the Extraordinary Item
• This was explained in Note 20 – Department of Finance is requiring Land Held for Resale to be transferred to the Successor Agency
e. No GASBs impacted the financial in the current yearf. New Pension GASB (#68) will have a impact in FY 14/15
2.Report on Internal Controls and Other Mattersa. No deficiencies to report
3.Opinion Lettera. Unmodified “clean” Opinion
2013-2014 AUDIT RESULTS
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FINANCIAL ANALYSIS
COMPARISION WITH OTHER CITIES•SIMILAR POPULATION
•SIMILAR SERVICES
COMPARISON FROM 2012-2013 TO 2013-2014
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o m Source: 2012-2013 Financial Data – GFOA Database
Net Position City-wideGovernmental Activities and Business-type Activities
897,600,470 932,351,000
202,803,803 189,397,000
Corona 2013-2014 Corona 2012-2013
Gov't Net Position
Bus-type NetPosition
Increase of $13.6 M
Decrease $34 M
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542,474,000
85,484,000
221,228,000
285,517,949
302,883,697
643,095,000
494,535,000
830,764,000
680,071,465
1,407,061,000
641,857,000
168,193,443
265,060,000
18,899,000
27,922,000
30,080,451
22,343,163
123,504,000
5,426,000
128,155,000
36,899,318
22,539,000
69,752,000
44,622,614
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
City of Corona
City of Daly City
City of Escondido
City of Fairfield
City of Fullerton
City of Garden Grove
City of Murrieta
City of Ontario
City of Orange
City of Oxnard
City of Temecula
City of Rialto
Total Net Investment in Capital Assets: Total Restricted Assets: Total Unrestricted: Data source: GFOA and CAFRs - 2012-2013
Net Position UseGovernmental Activities Only
0%20%
40%60%
80%100%
GA - Corona 2014
GA - Corona 2013
557,314,076
542,474,000
69,921,177
124,817,000
270,365,217
265,060,000
Governmental Activities Net Position 2012-2013 vs. 2013-2014
Total Net Investment in Capital Assets:Total Restricted Net PositionTotal Unrestricted:
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Net Position UseBusiness-type Activities Only Source: 2012-2013 Financial Data –
GFOA Database
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Pension Obligations Source: 2012-2013 Financial Data – GFOA Database
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OPEB Obligations
Source: 2012-2013 Financial Data – GFOA Database
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Total Long-term Debt – Citywide Analysis
Source: 2012-2013 Financial Data – GFOA Database
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Fiscal Health of General FundLiquidity Analysis Source: 2013 Financial Data – GFOA Database
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Fiscal Health of General FundLiquidity Analysis
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LOOKING TO 2014-2015
• We have starting our planning and interim review
• Week of April 17th on-site visit• No weaknesses in controls were noted• Finance is always discussing with us on possible recommendations to
further strengthen controls• We conduct City-wide random fraud interviews across all departments
and all levels
• Proactive actions taking place by Management
• Additional Scope of Services – 2014-2015• Review of Wire Transfer between Financial Institutions• Review of Bank Reconciliations• Review of Cash Receipts• Review of Vendor Contracts
• Additional Scope of Services – 2015-2016• Review of Investment Transaction• Fuel Inventory
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LANCE, SOLL & LUNGHARD, LLP Orange County 714.672.0022 / Temecula Valley 951.304.2728 / Silicon Valley 408.573.6360
www.LSLCPAS.com
Thank You