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EXHIBIT 2 <br />CliftonLarsonAllen LLP <br />. CLAconnect.com <br />INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER <br />FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS <br />BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED <br />IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS <br />Honorable City Council <br />City of Santa Ana <br />Santa Ana, California <br />We have audited, in accordance with the auditing standards generally accepted in the United States of <br />America and the standards applicable to financial audits contained in Government Auditing Standards <br />issued by the Comptroller General of the United States, the financial statements of the governmental <br />activities, business -type activities, each major fund, and the aggregate remaining fund information of <br />the City of Santa Ana (the City), as of and for the year ended June 30, 2021, and the related notes to <br />the financial statements, which collectively comprise City's basic financial statements, and have issued <br />our report thereon dated December 8, 2021. <br />Internal Control Over Financial Reporting <br />In planning and performing our audit of the financial statements, we considered the City's internal <br />control over financial reporting (internal control) as a basis for designing audit procedures that are <br />appropriate in the circumstances for the purpose of expressing our opinions on the financial <br />statements, but not for the purpose of expressing an opinion on the effectiveness of City's internal <br />control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. <br />A deficiency in internal control exists when the design or operation of a control does not allow <br />management or employees, in the normal course of performing their assigned functions, to prevent, or <br />detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a <br />combination of deficiencies, in internal control such that there is a reasonable possibility that a material <br />misstatement of the entity's financial statements will not be prevented or detected and corrected on a <br />timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control <br />that is less severe than a material weakness, yet important enough to merit attention by those charged <br />with governance. <br />Our consideration of internal control was for the limited purpose described in the first paragraph of this <br />section and was not designed to identify all deficiencies in internal control that might be material <br />weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any <br />deficiencies in internal control that we consider to be material weaknesses. However, material <br />weaknesses may exist that have not been identified. <br />A member of CLA is an independent member of Nexia International, a leading, global network of independent <br />Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. <br />International <br />