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LANCE, SOLL & LUNGHARD, LLP

Orange County 714.672.0022

Temecula Valley 951.304.2728

Silicon Valley 408.573.6360

www.LSLCPAS.com

CITY OF CORONA

2014 FINANCIAL AND AUDIT RESULTS

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INTRODUCTIONS

Debbie Harper, CPA - PartnerLance, Soll, & Lunghard (LSL)

14+ years with LSL

Serve on State and National Specialty Committeesfor Local Governments

LSL has served local governments since 1929

3 office locations – Temecula Valley, Silicon Valley, and Orange County (serves City of Corona)

Full-service firm (tax, attestation, consulting)

Specialize in City Government across California

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1.Audit Communication Letter (SAS 114 – conclusion)a. Summarizes the audit interaction with Managementb. Changes and/or entries made to properly state the financials that were

significant and agreed to by Management during the course of our testingc. Changes in accounting principles or practices d. Significant transactionse. Implemented and upcoming accounting pronouncements.

2.Report on Internal Controls and Other Mattersa. Identifies any internal control deficiencies that we want to bring to your

attentionb. Identifies any compliance findings or other matters that we noted outside

the internal control deficiencies that we became aware of

3.Opinion Lettera. Identifies what our opinion coversb. Responsibilities of Management and Auditorsc. Our Opinion

2013-2014 AUDIT COMMUNICATION

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1.Audit Communication Letter (SAS 114 – conclusion)a. No issues or difficulties with performing the auditb. No corrected or uncorrected misstatements notedc. No changes to the City’s accounting practices/principles d. Significant transaction this year related to the Extraordinary Item

• This was explained in Note 20 – Department of Finance is requiring Land Held for Resale to be transferred to the Successor Agency

e. No GASBs impacted the financial in the current yearf. New Pension GASB (#68) will have a impact in FY 14/15

2.Report on Internal Controls and Other Mattersa. No deficiencies to report

3.Opinion Lettera. Unmodified “clean” Opinion

2013-2014 AUDIT RESULTS

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FINANCIAL ANALYSIS

COMPARISION WITH OTHER CITIES•SIMILAR POPULATION

•SIMILAR SERVICES

COMPARISON FROM 2012-2013 TO 2013-2014

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Net Position City-wideGovernmental Activities and Business-type Activities

897,600,470 932,351,000

202,803,803 189,397,000

Corona 2013-2014 Corona 2012-2013

Gov't Net Position

Bus-type NetPosition

Increase of $13.6 M

Decrease $34 M

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542,474,000

85,484,000

221,228,000

285,517,949

302,883,697

643,095,000

494,535,000

830,764,000

680,071,465

1,407,061,000

641,857,000

168,193,443

265,060,000

18,899,000

27,922,000

30,080,451

22,343,163

123,504,000

5,426,000

128,155,000

36,899,318

22,539,000

69,752,000

44,622,614

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

City of Corona

City of Daly City

City of Escondido

City of Fairfield

City of Fullerton

City of Garden Grove

City of Murrieta

City of Ontario

City of Orange

City of Oxnard

City of Temecula

City of Rialto

Total Net Investment in Capital Assets: Total Restricted Assets: Total Unrestricted: Data source: GFOA and CAFRs - 2012-2013

Net Position UseGovernmental Activities Only

0%20%

40%60%

80%100%

GA - Corona 2014

GA - Corona 2013

557,314,076

542,474,000

69,921,177

124,817,000

270,365,217

265,060,000

Governmental Activities Net Position 2012-2013 vs. 2013-2014

Total Net Investment in Capital Assets:Total Restricted Net PositionTotal Unrestricted:

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Net Position UseBusiness-type Activities Only Source: 2012-2013 Financial Data –

GFOA Database

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Pension Obligations Source: 2012-2013 Financial Data – GFOA Database

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OPEB Obligations

Source: 2012-2013 Financial Data – GFOA Database

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Total Long-term Debt – Citywide Analysis

Source: 2012-2013 Financial Data – GFOA Database

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Fiscal Health of General FundLiquidity Analysis Source: 2013 Financial Data – GFOA Database

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Fiscal Health of General FundLiquidity Analysis

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LOOKING TO 2014-2015

• We have starting our planning and interim review

• Week of April 17th on-site visit• No weaknesses in controls were noted• Finance is always discussing with us on possible recommendations to

further strengthen controls• We conduct City-wide random fraud interviews across all departments

and all levels

• Proactive actions taking place by Management

• Additional Scope of Services – 2014-2015• Review of Wire Transfer between Financial Institutions• Review of Bank Reconciliations• Review of Cash Receipts• Review of Vendor Contracts

• Additional Scope of Services – 2015-2016• Review of Investment Transaction• Fuel Inventory

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LANCE, SOLL & LUNGHARD, LLP Orange County 714.672.0022 / Temecula Valley 951.304.2728 / Silicon Valley 408.573.6360

www.LSLCPAS.com

Thank You