ITEM:		ACTION ITEM
12.	RECEIVE FISCAL YEAR 2019-2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Meeting Date:			December 14, 2020	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: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

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, 2020 has been received from the District’s auditors, Hayashi & Wayland. The final 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 sixth 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 an “unmodified opinion” on the District’s CAFR. An unmodified opinion is the opinion where auditor expresses that the financial statements, in all material respects, are fairly presented in accordance with accounting principles generally accepted in the United States. 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 Board Disclosure 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.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended June30, 2019. This was the fifth year that the District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the District had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we will be submitting it to the GFOA to determine its eligibility for another certificate.

RECOMMENDATION: District staff recommends that the Board review and receive the Comprehensive Annual Financial Report for the year ending June 30, 2020.

EXHIBITS

12-A Comprehensive Annual Financial Report for FY 2019-2020

12-B Board Disclosure Letter

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