HomeMy WebLinkAboutStaff Report 14984
City of Palo Alto (ID # 14984)
Finance Committee Staff Report
Meeting Date: 11/29/2022 Report Type:
City of Palo Alto Page 1
Title: Discussion and Recommendation to the City Council Accept the Macias
Gini & O’Connell’s (MGO) Audit of the City of Palo Alto’s Financial Statements
as of June 30, 2022
From: City Manager
Lead Department: City Auditor
Recommendation
The City Auditor recommends that the Finance Committee review and forward to the
City Council for approval the City of Palo Alto’s audited financial statements for the fiscal
year ended June 30, 2022 and the accompanying reports provided by Macias Gini &
O’Connell LLP.
Discussion
The City Charter requires that the City Council, through the City Auditor, engage an
independent public accounting firm to conduct the annual financial audit. The selected
firm reports the results of the audit, in writing, to the City Council. Ma cias Gini &
O’Connell LLP, a certified public accounting firm, conducted the audits of the City’s
financial statements for the fiscal year ended June 30, 2022.
The City Auditor is providing copies of the following financial statements and reports as
prepared by MGO:
• Auditor’s Report to the City Council (the “Management Letter”) – Attachment A
• Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise
Revenues and Expenses for the Years Ended December 31, 2021 and 2020 –
Attachment B
• Palo Alto Public Improvement Corporation Annual Financial Report for the Year
Ended June 30, 2022 – Attachment C
• Regional Water Quality Control Plant Independent Auditor’s Report and Financial
Statements for the Year Ended June 30, 2022 – Attachment D
• Independent Accountant’s Report on Applying Agreed-Upon Procedures Related
to the Article XIII-B Appropriations Limit for the Year Ended June 30, 2022 –
Attachment E
1
Packet Pg. 4
City of Palo Alto Page 2
Note that the final audit report, the Single Audit, will be completed and presented at a
subsequent meeting.
The Annual Comprehensive Financial Report (ACFR), a separate item on this agenda,
includes the following Independent Auditor’s report:
• Independent Auditor’s Reports on the Financial Statements (pgs. 1-3)
Macias Gini & O’Connell LLP issued a clean opinion on each audit report and reported
no findings within the Agreed-Upon Procedures report.
The City Auditor would like to express appreciation to Macias Gini & O’Connell LLC
Administrative Services Department staff for their hard work and cooperation during the
audit.
Attachments:
• Schedule A - Auditor's Report to the City Council
• Schedule B - Cable TV Franchise Auditor's Report
• Schedule C - Public Improvement Corporation Annual Financial Report
• Schedule D - Regional Water Quality Control Plant Auditor's Report
• Schedule E - GANN Limit Agreed Upon Procedures Report
1
Packet Pg. 5
1.a
Packet Pg. 6
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Table of Contents
Page
1.a
Packet Pg. 7
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Government Auditing Standards
deficiency in internal control
material weakness
Reasonably possible
Probable
1.a
Packet Pg. 8
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.a
Packet Pg. 9
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Accounting for Interest
Cost Incurred before the End of a Construction Period Omnibus 2020
Replacement of Interbank Offered Rates Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
1.a
Packet Pg. 10
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Plans – an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement
No 32 Omnibus 2022
Fair value of investments
Estimated allowance for losses on notes and loans receivable
Depreciation estimates for capital assets, including depreciation methods and useful lives
assigned to depreciable assets
Landfill post-closure liability.
Net pension and Other Postemployment Benefits (OPEB) liabilities, contributions, expenses, and
other related balances.
1.a
Packet Pg. 11
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Claims loss reserve.
Discount rate used for the calculation of lease liability and lease receivable
1.a
Packet Pg. 12
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Required Supplementary Information
Supplementary Information and Other Sections
1.a
Packet Pg. 13
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Other Information
Leases
1.a
Packet Pg. 14
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
A
-
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
t
o
t
h
e
C
i
t
y
C
o
u
n
c
i
l
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.b
Packet Pg. 15
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Table of Contents
Page
1.b
Packet Pg. 16
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Opinion
Basis for Opinion
Emphasis of a Matter
Management’s Responsibilities for the Financial Statements
1.b
Packet Pg. 17
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
Auditor’s Responsibilities for the Audit of the Financial Statements
Restriction on Use
1.b
Packet Pg. 18
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.b
Packet Pg. 19
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.b
Packet Pg. 20
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.b
Packet Pg. 21
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
B
-
C
a
b
l
e
T
V
F
r
a
n
c
h
i
s
e
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.c
Packet Pg. 22
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
Table of Contents
Page
1.c
Packet Pg. 23
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Opinions
Basis for Opinions
Responsibilities of Management for the Financial Statements
1.c
Packet Pg. 24
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
Auditor’s Responsibilities for the Audit of the Financial Statements
Required Supplementary Information
1.c
Packet Pg. 25
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local
Governments.
1.c
Packet Pg. 26
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 27
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 28
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 29
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 30
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 31
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
Government-wide Statements:
Fund Financial Statements:
Debt Service Fund
1.c
Packet Pg. 32
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
Restricted Net Position
Restricted Fund Balance
1.c
Packet Pg. 33
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
Leases
Accounting Changes and Error Corrections – An
Amendment of GASB Statement No. 62
1.c
Packet Pg. 34
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 35
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 36
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 37
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.c
Packet Pg. 38
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
C
-
P
u
b
l
i
c
I
m
p
r
o
v
e
m
e
n
t
C
o
r
p
o
r
a
t
i
o
n
A
n
n
u
a
l
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
1.d
Packet Pg. 39
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
Table of Contents
Page
1.d
Packet Pg. 40
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Opinion
Basis for Opinion
Emphasis of a Matter
Management’s Responsibilities for the Financial Statements
1.d
Packet Pg. 41
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
Auditor’s Responsibilities for the Audit of the Financial Statements
Restriction on Use
1.d
Packet Pg. 42
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.d
Packet Pg. 43
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.d
Packet Pg. 44
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.d
Packet Pg. 45
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.d
Packet Pg. 46
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.d
Packet Pg. 47
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.d
Packet Pg. 48
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
D
-
R
e
g
i
o
n
a
l
W
a
t
e
r
Q
u
a
l
i
t
y
C
o
n
t
r
o
l
P
l
a
n
t
A
u
d
i
t
o
r
'
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
1.e
Packet Pg. 49
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
E
-
G
A
N
N
L
i
m
i
t
A
g
r
e
e
d
U
p
o
n
P
r
o
c
e
d
u
r
e
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Agreed-upon Procedures Applied to the Appropriations Limit Prescribed by Article XIII-B of
the California Constitution
1.e
Packet Pg. 50
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
E
-
G
A
N
N
L
i
m
i
t
A
g
r
e
e
d
U
p
o
n
P
r
o
c
e
d
u
r
e
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.e
Packet Pg. 51
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
E
-
G
A
N
N
L
i
m
i
t
A
g
r
e
e
d
U
p
o
n
P
r
o
c
e
d
u
r
e
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)
1.e
Packet Pg. 52
At
t
a
c
h
m
e
n
t
:
S
c
h
e
d
u
l
e
E
-
G
A
N
N
L
i
m
i
t
A
g
r
e
e
d
U
p
o
n
P
r
o
c
e
d
u
r
e
s
R
e
p
o
r
t
(
1
4
9
8
4
:
M
G
O
A
u
d
i
t
o
f
t
h
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
s
o
f
J
u
n
e
3
0
,
2
0
2
2
)