INDEPENDENT AUDITOR’S REPORT FY 2013/2014

Meeting Date: November 13, 2014

Agenda Item #11

Note from TheGardeningSnail: Parts of this page were prepared by running a PDF Image Document through a program which converts image to text. My apologies for any Textual Gremlins that may have slipped in.

CITY OF LIVINGSTON

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

JUNE 30, 2014

TABLE OF CONTENTS

INDEPENDENT AUDITOR’S REPORT

BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements

Statement of Net Position

Statement of Activities

Fund Financial Statements

Balance Sheet – Governmental Funds

Reconciliation of Total Governmental Fund Balance to the Statement of Net Position

Statement of Revenue, Expenditures and Changes in Fund Balance – Governmental Funds

Reconciliation of Statement of Revenue, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities

Statement of Net Position – Proprietary Funds

Statement of Revenue, Expenses and Changes in Fund Net Position – Proprietary Funds

Statement of Cash Flows – Proprietary Funds

Statement of Fiduciary Net Position -Private Purpose Trust Fund

Statement of Changes in Fiduciary Net Position -Private Purpose Trust Fund Notes to Financial Statements

Required Supplementary Information

Budgetary Comparison Schedule – General Fund

Budgetary Comparison Schedule -Maintenance Districts Fund Supplemental Only Information

Combining Balance Sheet -Nonmajor Governmental Funds

Combining Statement of Revenue, Expenditures and

Changes in Fund Balance -Nonmajor Governmental Funds

Comb1ning Balance Sheet -Nonmajor Special Revenue Funds Combining Statement of Revenue, Expenditures and

Changes in Fund Balance -Nonmajor Special Revenue Funds

Combining Balance Sheet -Nonmajor Capital Projects Funds Combining Statement of Revenue, Expenditures and

Changes in Fund Balance -Nonmajor Capital Projects Funds

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings

BRYANT L. JOLLEY

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CERTIFIED PUBLIC ACCOUNTANTS Bryant L.Jolley C.P.A

Ryan P.Jolley C.P.A. Darryl L. Smith C.P.A. Travis B. Evenson

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and City Council City of Livingston, California

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Livingston, California, (the City) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements tha are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or enor. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Livingston, California, as of June 30, 2014, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 36 and 37 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential pait of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Information

Our audit was conducted for the purpose of forming .opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nomnajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including cdmparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 29, 2014, on our consideration of the City of Livingston’s internal control over finai1cial repmiing and on our tests of its compliance with ce1tain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial rep01ting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Livingston’s internal control over financial reporting and compliance.

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