Item 15 - Comprehensive Annual Financial Report for the Fiscal Year-Ended Jun 30, 2020

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Comprehensive Annual Financial Report for the Fiscal Year -Ended June 30, 2020 February 2, 2021 Page 2 with the reporting requirements of the Governmental Accounting Standards Board (GASB). The City's independent public accounting firm, CLA, audits the financial statements, reviews other financial items at the City's request, and issues reports. The Accounting Division is pleased to report that the City received an unmodified opinion commonly known as a clean opinion; which is considered the most favorable conclusion for the audit. The unmodified opinion indicates that the City's financial statements present fairly, in all material respects, the financial position of the City, changes in financial position, and cash flows for the fiscal year ended June 30, 2020 (Exhibit 1). The CAFR for the fiscal year ended June 30, 2020 is posted and available on the City's website (https://www.santa-ana.org/finance/comprehensive-annual-financial-reports- cafr-and-other-financial-reports) along with prior fiscal years. The report was submitted to the Government Finance Officer Association's Certificates of Achievement for Excellence in Financial Reporting Program. The award is the highest form of recognition in governmental accounting and financial reporting. The City has received this prestigious award for forty-two consecutive years. In addition to the audit opinion, CLA issued the following communication letters: Government Auditing_ Standards (GAS) Letter (Exhibit 2) Auditor's communication of reportable conditions based on their review of the City's internal controls over financial reporting and on compliance. The results of their review disclosed no instances of noncompliance for the fiscal year 2019-20. Audit Committee Letter (Exhibit 3) Formal communication from the auditor to the City Council; acting as the City's Audit Committee, which discloses information related to the audit, including but not limited to the City's accounting practices and implementation of new accounting rules and estimates. Audit of the City's Air Quality Management District (AQMD) Financial Statements (Exhibit Under Assembly Bill 2766 Chapter 1705 [California Health and Safety Code (CHSC) Sections 44220 through 442471 cities and counties receiving the AB 2766 funds are required to separately account for the revenue and to expend the revenue for air pollution reduction measures. The AQMD audit report reflects the City's compliance to such measures. The Accounting Division is pleased to report that the City received an unmodified opinion (clean) on the AQMD audit report and no compliance findings were noted.