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Honorable City Council <br />City of Santa Ana <br />Page 2 <br />The other postemployment benefits (OPEB) expense and total OPEB liability, and <br />corresponding deferred outflows of resources and deferred inflows of resources for the <br />City's OPEB plan are based on an actuarial valuation provided by a third -party actuary. <br />• The claims liability for workers' compensation and general liabilities are based on certain <br />actuarial assumptions and methods prepared by an outside consultant. <br />We evaluated the key factors and assumptions used to develop these accounting estimates in <br />determining that it is reasonable in relation to the financial statements taken as a whole. <br />Financial statement disclosures <br />Certain financial statement disclosures are particularly sensitive because of their significance to <br />financial statement users. There were no particularly sensitive financial statement disclosures. <br />The financial statement disclosures are neutral, consistent, and clear. <br />Difficulties encountered in performing the audit <br />We encountered no significant difficulties in dealing with management in performing and completing our <br />audit. <br />Uncorrected misstatements <br />Professional standards require us to accumulate all misstatements identified during the audit, other <br />than those that are clearly trivial, and communicate them to the appropriate level of management. The <br />attached schedule summarizes uncorrected misstatements of the financial statements. Management <br />has determined that their effects are immaterial, both individually and in the aggregate, to the financial <br />statements taken as a whole. <br />Corrected misstatements <br />None of the misstatements detected as a result of audit procedures and corrected by management <br />were material, either individually or in the aggregate, to the financial statements taken as a whole. <br />Disagreements with management <br />For purposes of this letter, a disagreement with management is a financial accounting, reporting, or <br />auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial <br />statements or the auditors' report. No such disagreements arose during our audit. Management <br />representations <br />We have requested certain representations from management that are included in the management <br />representation letter dated December 8, 2021. <br />Management consultations with other independent accountants <br />In some cases, management may decide to consult with other accountants about auditing and <br />accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation <br />involves application of an accounting principle to the entity's financial statements or a determination of <br />the type of auditors' opinion that may be expressed on those statements, our professional standards <br />require the consulting accountant to check with us to determine that the consultant has all the relevant <br />facts. To our knowledge, there were no such consultations with other accountants. <br />