ITEM:		ACTION ITEM
24.	RECEIVE FISCAL YEAR 2014-2015 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT
Meeting Date:			December 14, 2015	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Suresh Prasad	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: None.
CEQA Compliance: N/A

SUMMARY: A draft copy of the District’s Comprehensive Annual Financial Report (CAFR) is provided for review. Draft of the Independent Auditors’ Report and Board Communication Letter (required communication letter from the Auditors to the Board) for the fiscal year ending June 30, 2015 has been received from the District’s auditors, Hayashi & Wayland. The audit documents will also be posted on the District’s website after it has been accepted by the Board. Hayashi & Wayland has been the District auditors since 1989.

This is the first year that the District has prepared a CAFR. A CAFR is a set of government financial statements comprising the financial report of a municipality that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). GASB provides standards for the content of a CAFR in its annually updated publication. A CAFR is compiled by the governmental accounting staff and audited by an external certified accounting firm utilizing GASB requirements. A CAFR is composed of three sections:

Introductory section – includes transmittal letter.

Financial section – includes the independent auditor’s report and contains management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.

Statistical section – includes additional financial, economic, and demographic information.

The auditors have issued a clean opinion on the District’s CAFR. The audit did not identify any deficiencies in the internal control that the auditors consider to be material weaknesses. Representatives from Hayashi and Wayland will be available at the meeting to review the Independent Auditors’ Report and the Board Communication Letter.

A Management Letter may be issued in conjunction with the Report to offer constructive suggestions for improvements on matters that came to the auditors’ attention in connection with the audit, however, such letter was not deemed necessary by Hayashi & Wayland in connection with the audit for this fiscal year.

RECOMMENDATION: District staff recommends that the Board review and receive the Financial Statements and Independent Auditors’ Report for the year ending June 30, 2015.

EXHIBITS

24-A Comprehensive Annual Financial Report for FY 2014-2015 and Independent Auditors’ Report (will be provided separately)

24-B Board Communication Letter (will be provided separately)

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