HomeMy WebLinkAbout2023-02-21 - Agenda Packet - Community Parks and Landscape Oversight Committee FEBRUARY 21, 2023
COMMUNITY PARKS & LANDSCAPE
CITIZENS’ OVERSIGHT COMMITTEE AGENDA
RANCHO CUCAMONGA CITY HALL, TRI-COMMUNITIES ROOM
10500 CIVIC CENTER DRIVE
RANCHO CUCAMONGA, CA 91730
A. CALL TO ORDER – 6:00 PM
A1. Pledge of Allegiance
A2. Roll Call
April McAllaster Matthew Parmental
Dave Terry Pascal Pangestu
Denise Garzaro Velma Gilbert
Lisa Morgan-Perales
B. PUBLIC COMMUNICATIONS
This is the time and place for the general public to address the Community Parks & Landscape
Citizens’ Oversight Committee on any item listed or not listed on the agenda. State law
prohibits the Committee from addressing any issue not previously included on the Agenda.
The Committee may receive testimony and set the matter for a subsequent meeting.
Comments are to be limited to five minutes per individual.
C. ITEM(S) FOR DISCUSSION
C1. Election of Committee Chair and Vice-Chair
C2. Consideration to adopt Regular Meeting Minutes of April 27, 2022
C3. Review and Discussion of Annual Independent Auditor’s Report with the City’s Auditors
C4. Review and Approval of Annual Written Report to the City Council
C5. Staff updates for the Committee
D. ADJOURNMENT
I, Melanie Morris, Executive Assistant of the City of Rancho Cucamonga, hereby certify under penalty
of perjury that a true, accurate copy of the foregoing agenda was posted on at least Seventy-Two (72)
hours prior to the meeting per Government Code Section 54954.2 at 10500 Civic Center Dr, Rancho
Cucamonga and on the City’s website.
Melanie Morris
Page 1
CITY OF RANCHO CUCAMONGA
April 27, 2022
COMMUNITY PARKS AND LANDSCAPE CITIZENS’ OVERSIGHT COMMITTEE
MEETING MINUTES
A. CALL TO ORDER – 7:01 PM
The Regular meeting of the Community Parks and Landscape Citizens’ Oversight Committee held
a meeting on was scheduled on Thursday, April 27, 2022, at the Rancho Cucamonga City Hall,
Tri-Communities Room, 10500 Civic Center Drive, Rancho Cucamonga, California.
A1. Pledge of Allegiance:
Finance Director Noah Daniels led the Pledge of Allegiance.
A2. Roll Call:
Present Committee Members: April McAllaster, Lisa Morgan-Perales, Velma Gilbert,
Pascal Pangestu, Mathew Parmental, and Denisee Garzaro.
Staff Present: Noah Daniels, Finance Director, Bill Wittkopf, Public Works Services
Director; and City Auditor – Kirk Hamblin, Audit Manager.
B. PUBLIC COMMUNICATIONS
B1. No public communications were made.
C. ITEM(S) OF DISCUSSION
C1. Oath of Office for Committee Members: Denise Garzaro, Pascal Pangestu, and
Matthew Parmental
Finance Director Noah Daniels introduced staff and Deputy Director of City Clerk
Services Patricia Bravo-Valdez. Committee Members Denise Garzaro, Pascal
Pangestu, and Mathew Parmental were sworn into office simultaneously. All Committee
Members agreed to accept the 4-year term.
C2. Election of Committee Chair and Vice-Chair
Committee Member Velma Gilbert nominated Denise Garzaro as Chair and Committee
Member Lisa Morgan-Perales seconded. Committee Member Denise Garzaro nominated
Velma Gilbert as Vice-Chair and Committee Member April McAllaster seconded.
Committee Member Denise Garzaro accepted the Chair and Committee Member Velma
Gilbert accepted the Vice-Chair and was unanimously approved.
C3. Approval of Minutes: February 10, 2021.
Committee Member Velma Gilbert motioned to approve the minutes from the meetings of
February 10, 2021. The motion was seconded by Committee Member April McAllaster
and was unanimously approved.
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COMMUNITY PARKS AND LANDSCAPE CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES
APRIL 27, 2022
PAGE 2
C4. Overview of Committee Role and Special Districts
Finance Director Noah Daniels discussed the Committee’s role and responsibilities. He
held a presentation providing an overview of Special Districts. A discussion ensued
regarding the difference between the Special and General Benefits, Heritage Park
Equestrian Center, and the parks’ usage. Staff provided information to the Committee.
The Committee Members closed the item after the discussion.
C5. Review and Discussion of Annual Independent Auditors’ Report
City Auditor Hamblin provided information about the purpose of the letters and financial
report, the role of the auditor, audit procedures, and the audit results to the Committee.
A discussion ensued regarding the uses of funds and the purpose of specific accounts
and City Staff provided information to the specific questions. The Committee Members
closed the item after the discussion.
C6. Review and Approval of Annual Written Report to the City Council
A discussion concerning the draft report to City Council ensued. Vice-Chair Velma Gilbert
motioned to approve the Annual Report to the City Council. The motion was seconded by
Committee Member Lisa Morgan-Perales and was unanimously approved. Chair Denise
Garzaro agreed to present the report to the City Council
C7. Staff updates for the Committee
City Staff had no updates for the Committed.
D. ADJOURNMENT
Chair Denise Garzaro motioned to adjourn the meeting at 8:23 PM.
Respectfully submitted,
__________________________________
Denise Garzaro, Chair
Date: February 21, 2023
Page 3
Summary of the
Fiscal Year 2021/22
Statement of
Revenues,
Expenditure and
Changes in Fund
Balances for the
Districts
Page 4
Page 1 of 8
BACKGROUND:
Established by Resolution No. 19-075, the Community Parks and Landscape Citizens’ Oversight
Committee’s core purpose is to review the annual financial audit for certain Districts and report to
the City Council and the community. The Committee accomplishes this task by reviewing the
Statement of Revenues, Expenditures and Changes in Fund Balances with City staff and the
City’s independent auditors.
The purpose of an audit is for the auditor to provide an opinion on whether the financial statements
and disclosures are presented accurately and free from material misstatement. In other words,
the auditor’s purpose is to provide a degree of confidence in the financial statements. As the
basis for the auditor’s opinion, the auditor must obtain a high level of assurance that the financial
statements are free from material error by obtaining sufficient audit evidence. Audit evidence
includes both information in accounting records underlying the financial statements and other
information and is measured by quantity and quality.
The Committee has neither budgetary nor operational decision-making authority nor the authority
to allocate financial resources or direct staff.
ANALYSIS:
The City’s independent auditors, Lance Soll & Lunghard, LLP, have completed their annual audit
of the Districts’ financial statements. Attached you will find the following reports for your reference:
• The required Auditor's Communication with Those Charged with Governance – This letter
communicates the auditor's responsibilities and information regarding the audit
• Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters – This letter communicates the auditor's evaluation of the
City's internal controls over financial reporting.
• The Districts’ Statement of Revenues, Expenditures and Changes in Fund Balances for
the Fiscal Year Ended June 30, 2022 – This report provides detailed financial information
and disclosures that indicate the Districts’ financial condition. It covers the fiscal period
DATE: February 21, 2023
TO: Community Parks and Landscape Citizens’ Oversight Committee
FROM: Noah Daniels, Finance Director
BY: Kelly Guerra, Special Districts Analyst
SUBJECT: SUMMARY OF THE FISCAL YEAR 2021/22 STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE
DISTRICTS.
Page 5
Page 2 of 8
between July 1, 2021, to June 30, 2022. The City received an unqualified or "clean"
opinion on the presentation of its financial statements.
Staff Analysis: While the Committee is not directly involved with the audit or the examination of
accounting records, the Committee provides community oversight of the financial reporting
process and, at the meeting, is encouraged to engage in dialogue with the auditors and City staff
to learn more about the audit process and preparation of the financial reports. City staff has
provided the highlights of the operating results for each of the Districts for your information and
understanding of the Statement of Revenues, Expenditures and Changes in Fund Balances for
the Fiscal Year Ended June 30, 2022.
General Notes:
• The use of money and property category includes a temporary adjustment of investments
to fair value at the end of the fiscal year. The adjustment impacts all Districts but is more
noticeable in certain districts without rental and lease revenues. Accounting standards
require adjustment, and negative adjustments are common with rising interest rates due
to the City’s fixed-income portfolios. These fluctuations are unrealized as the City
generally holds investments until maturity.
• Decreased tree maintenance expenditures from Fiscal Year 2020/21 are due to the
windstorm in October 2020 and January 2021 and related cleanup.
Landscape Maintenance District #1 General City
Revenues 2022 2021 Change
Taxes 1,256,185$ 1,251,109$ 5,076$
Charges for services 19,612 10,326 9,286
Use of money and property (38,403) 26,907 (65,310)
General benefit equivalent 30,743 33,917 (3,174)
Contributions from other funds 34,380 3,548 30,832
Miscellaneous - 10,000 (10,000)
Total Revenues 1,302,517$ 1,335,807$ (33,290)$
Expenditures 2022 2021 Change
Personnel services 34,364$ 26,954$ 7,410$
Operations and maintenance 47,576 57,647 (10,071)
Contract services 505,623 499,640 5,983
Tree Maintenance 88,821 166,770 (77,949)
Utilities 349,057 380,228 (31,171)
Assessment administration 62,850 62,850 -
General overhead allocation 57,340 57,340 -
Capital outlay 15,259 91,806 (76,547)
Total Expenditures 1,160,890$ 1,343,235$ (182,345)$
Fiscal Year
Fiscal Year
• Revenues from assessments reported as taxes increased slightly for the current year,
from $1,251,109 to $1,256,185. The growth is due to new properties being annexed into
the District. As a note, the assessment rates for LMD 1 cannot be increased due to state
law without a voter-approved ballot measure.
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Page 3 of 8
• The City Council has approved a General Benefit Equivalent to subsidize operating
expenditures. For the Fiscal Year 2021/22, the subsidy was 3% of operational
expenditures.
• Utilities decreased by $31,171 due to a reduction in water consumption at the parks.
• Capital outlay includes $15,259 for design and construction documents related to an
inclusive playground at Beryl Park East.
Landscape Maintenance District #2 Victoria
Revenues 2022 2021 Change
Taxes 3,750,829$ 3,738,622$ 12,207$
Charges for services 1,298 191 1,107
Use of money and property (167,147) (6,799) (160,348)
General benefit contribution 274,756 288,082 (13,326)
Contributions from other funds - 8,744 (8,744)
Total Revenues 3,859,736$ 4,028,840$ (169,104)$
Expenditures 2022 2021 Change
Personnel services 703,497$ 872,442$ (168,945)$
Operations and maintenance 63,960 67,607 (3,647)
Contract services 1,275,981 1,316,545 (40,564)
Tree Maintenance 189,739 261,028 (71,289)
Utilities 954,253 865,041 89,212
Assessment administration 35,080 35,080 -
Interfund allocation 83,160 86,230 (3,070)
General overhead allocation 324,160 324,160 -
Capital outlay 607,184 99,450 507,734
Total Expenditures 4,237,014$ 3,927,583$ 309,431$
Fiscal Year
Fiscal Year
• Revenues from assessments reported as taxes are increased for the current year,
increasing from $3,738,622 to $3,750,829. The growth is due to new properties being
annexed into the District since assessment rates were unchanged for the Fiscal Year
2021/22.
• In the current year, the General Benefit Contribution, the legally required contribution for
general benefit, decreased by $13,326 due to lower operating expenditures. The legally
required contribution is 8.62% of operating expenditures.
• Utilities increased by $89,212 due to the refurbishment and maintenance of turf for youth
sports usage, which resumed in the Fiscal Year 2021/22.
• There is a multi-year capital project to replace landscaping with drought-tolerant
landscaping and hardscape. Renovations took place at Kenyon Way, north of Victoria
Park Lane, and on Lark Drive between Kenyon Way and Rochester Avenue.
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Page 4 of 8
Landscape Maintenance District #4R Terra Vista
Revenues 2022 2021 Change
Taxes 2,805,344$ 2,797,950$ 7,394$
Charges for services 757 61 696
Use of money and property (271,471) (7,835) (263,636)
Miscellaneous - 5,132 (5,132)
Total Revenues 2,534,630$ 2,795,308$ (260,678)$
Expenditures 2022 2021 Change
Personnel services 894,263$ 946,670$ (52,407)$
Operations and maintenance 55,843 76,358 (20,515)
Contract services 536,778 552,170 (15,392)
Tree Maintenance 60,335 74,320 (13,985)
Utilities 441,957 473,423 (31,466)
Assessment administration 20,980 20,980 -
General overhead allocation 257,850 257,850 -
Capital outlay 425,671 176,143 249,528
Total Expenditures 2,693,677$ 2,577,914$ 115,763$
Fiscal Year
Fiscal Year
• Revenues from assessments reported as taxes are relatively unchanged for the current
year, increasing from $2,797,950 to $2,805,344. Assessment rates were unchanged from
the prior year and are below the maximum allowable assessment rate.
• Utilities decreased by $31,466 due to a reduction in water consumption at the parks.
• There is a multi-year capital project to replace landscaping with drought-tolerant
landscaping and hardscape. Renovations took place on the south side of Baseline Road
between Spruce Avenue and Milliken Avenue.
Page 8
Page 5 of 8
Landscape Maintenance District #6R Caryn Community
Revenues 2022 2021 Change
Taxes 558,911$ 539,014$ 19,897$
Use of money and property (30,602) (915) (29,687)
General benefit equivalent 31,266 40,532 (9,266)
Total Revenues 559,575$ 578,631$ (19,056)$
Expenditures 2022 2021 Change
Personnel services 22,067$ 18,886$ 3,181$
Operations and maintenance 7,014 5,135 1,879
Contract services 205,098 331,852 (126,754)
Tree Maintenance 41,347 67,980 (26,633)
Utilities 171,126 155,179 15,947
Assessment administration 6,680 6,680 -
General overhead allocation 40,790 40,790 -
Capital outlay 453 - 453
Total Expenditures 494,575$ 626,502$ (131,927)$
Fiscal Year
Fiscal Year
• Revenues from assessments, reported as taxes, increased for the current year, increasing
from $539,014 to $558,911. Assessment rates increased by 2.25% for the Fiscal Year
2021/22.
• The City Council has approved a General Benefit Equivalent to subsidize operating
expenditures. For the Fiscal Year 2021/22, the subsidy was 7% of operational
expenditures.
• Contract Services decreased by $126,754 due to the windstorms in Fiscal Year 2020/21
as landscaping contractors removed fallen trees.
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Page 6 of 8
Landscape Maintenance District #7 North Etiwanda
Revenues 2022 2021 Change
Taxes 950,978$ 950,482$ 496$
Charges for services 4,793 790 4,003
Use of money and property 33,724 56,167 (22,443)
Contributions from other funds - 376 (376)
Total Revenues 989,495$ 1,007,815$ (18,320)$
Expenditures 2022 2021 Change
Personnel services 197,038$ 207,008$ (9,970)$
Operations and maintenance 29,661 24,333 5,328
Contract services 416,224 400,822 15,402
Tree Maintenance 38,272 52,851 (14,579)
Utilities 376,054 308,700 67,354
Assessment administration 16,130 16,130 -
General overhead allocation 104,930 104,930 -
Capital outlay 1,359 - 1,359
Total Expenditures 1,179,668$ 1,114,774$ 64,894$
Fiscal Year
Fiscal Year
• Revenues from assessments reported as Taxes are relatively unchanged for the current
year, increasing from $950,482 to $950,978. As a note, the assessment rates for LMD 7
cannot be increased due to state law without a voter-approved ballot measure.
• Utilities increased by $67,354 due to the refurbishment and maintenance of turf for youth
sports usage, which resumed in the Fiscal Year 2021/22.
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Page 7 of 8
Street Lighting Maintenance District #2 Residential
Revenues 2022 2021 Change
Taxes 379,111$ 376,337$ 2,774$
Use of money and property (40,202) (14,367) (25,835)
General benefit equivalent 76,021 251,284 (175,263)
Contributions from other funds 18,510 1,900 16,610
Total Revenues 433,440$ 615,154$ (181,714)$
Expenditures 2022 2021 Change
Operations and maintenance 112,312$ 62,476$ 49,836$
Contract services 619 610 9
Utilities 320,711 284,656 36,055
Assessment administration 38,080 38,080 -
General overhead allocation 1,920 1,920 -
Debt service - 252,176 (252,176)
Total Expenditures 473,642$ 639,918$ (166,276)$
Fiscal Year
Fiscal Year
• Revenues from assessments reported as taxes are relatively unchanged for the current
year, increasing from $376,337 to $379,111. The growth is due to new properties being
annexed into the District. As a note, the assessment rates for SLD 2 cannot be increased
due to state law without a voter-approved ballot measure.
• The City Council has approved a General Benefit Equivalent to subsidize operations. In
the current year, the General Benefit Equivalent decreased by $175,263 due to a decrease
in operating expenditures.
• Contributions from other Funds increased by $16,610 due to the contribution provided by
the Empire Lakes Resort CFD for the development’s proportionate share of SLD 2
expenditures.
• Operations and maintenance increased by $49,836 due to new streetlight installations and
inventory purchases. This account fluctuates depending on street light replacements, net
of insurance recoveries.
• Utilities increased by $36,055 primarily due to electricity costs and rate increases from
Southern California Edison.
• The City General Fund advance for purchasing and retrofitting streetlights from Southern
California Edison has been placed into abeyance until adequate resources are available
in SLD 2 for operations.
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Page 8 of 8
Park and Recreation Improvement District #85
Revenues 2022 2021 Change
Taxes 1,163,122$ 1,163,371$ (249)$
Charges for services 34,998 14,947 20,051
Use of money and property 39,616 128,455 (88,839)
General benefit equivalent 71,829 49,147 22,682
Contributions from other funds 22,480 9,234 13,246
Miscellaneous 128 - 128
Total Revenues 1,332,173$ 1,365,154$ (32,981)$
Expenditures 2022 2021 Change
Personnel services 187,506$ 144,979$ 42,527$
Operations and maintenance 48,655 29,762 18,893$
Contract services 282,528 262,036 20,492
Tree Maintenance 20,490 26,102 (5,612)
Utilities 338,263 258,661 79,602
Assessment administration 144,590 144,590 -
General overhead allocation 54,780 54,780 -
Capital outlay 114,508 113,204 1,304
Total Expenditures 1,191,320$ 1,034,114$ 157,206$
Fiscal Year
Fiscal Year
• Revenues from assessments reported as taxes are relatively unchanged for the current
year, decreasing from $1,163,371 to $1,163,122. As a note, the assessment rates for PD-
85 cannot be increased due to state law without a voter-approved ballot measure.
• The City Council has approved a General Benefit Equivalent to subsidize operating
expenditures. For the Fiscal Year 2021/22, the subsidy was 3% of operational
expenditures.
• Utilities increased by $79,602 due to the refurbishment and maintenance of turf for youth
sports usage, which resumed in the Fiscal Year 2021/22.
• Capital Outlay expenditures include conceptual renderings and design plans for the
Heritage Park Bridge Replacement Project and the replacement of existing light fixtures
at Heritage Park.
Page 12
Audit
Communication
Letter
Page 13
203 N. Brea Blvd., Suite203 Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022
December 12, 2022
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
We have audited the statement of revenues, expenditures and changes in fund balances of Landscape
Maintenance Districts #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and
#7 North Etiwanda, Street Lighting Maintenance District #2 Residential, and Park and Recreation
Improvement District #85 (collectively, the Districts) of the City of Rancho Cucamonga, California (the City),
for the year ended June 30, 2022. Professional standards require that we provide you with information
about our responsibilities under generally accepted auditing standards, Government Auditing Standards
and the Uniform Guidance, as well as certain information related to the planned scope and timing
of our audit. We have communicated such information in our letter to the City Council of the
City of Rancho Cucamonga dated April 22, 2022. Professional standards also require that we communicate
to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Significant Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Districts are described in the notes to statement of revenues, expenditures
and changes in fund balances. No new accounting policies were adopted and the application of existing
policies was not changed during Fiscal Year 2021/22. We noted no transactions entered into by the Districts
during the year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
The statement of revenues, expenditures and changes in fund balances disclosures are neutral, consistent,
and clear.
Significant Unusual Transactions
Management is responsible for the policies and practices used to account for significant unusual
transactions. No significant unusual transactions have occurred during Fiscal Year 2021/22.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. No
misstatements were found.
Page 14
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or
the auditor’s report. We are pleased to report that no such disagreements arose during the course of our
audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 12, 2022.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the Districts’ statement of revenues, expenditures and changes in fund
balances or a determination of the type of auditor’s opinion that may be expressed on those statements,
our professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues Discussed with Management
We generally discuss a variety of matters, including the significant events or transactions that occurred
during the year, business conditions affecting the Districts and business plans and strategies that may affect
the risks of material misstatements, the application of accounting principles and auditing standards, with
management each year prior to retention as the City’s auditors. However, these discussions occurred in
the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for
Fiscal Year 2021/22 audit:
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans.
The following GASB pronouncements are effective in the following fiscal years’ audits and should be
reviewed for proper implementation by management:
Fiscal Year 2022/23
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangement.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
Page 15
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Fiscal Year 2023/24
GASB Statement No. 99, Omnibus 2022.
GASB Statement No. 100, Accounting Changes and Error Corrections.
Fiscal Year 2024/25
GASB Statement No. 101, Compensated Absences.
Restriction on Use
This information is intended solely for the use of the Community Parks and Landscape Citizens' Oversight
Committee and management of the Districts and is not intended to be, and should not be, used by anyone
other than these specified parties.
Very truly yours,
Brea, California
Page 16
Statement of
Revenues,
Expenditures and
Changes in Fund
Balances for the
Districts for the
Year Ended
June 30, 2022
Page 17
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203 N. Brea Blvd., Suite203 Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022
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#6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING MAINTENANCE DISTRICT #2 RESIDENTIAL,
AND PARK AND RECREATION IMPROVEMENT DISTRICT #85
CITY OF RANCHO CUCAMONGA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes 1,256,185$ 3,750,829$ 2,805,344$ 558,911$
Charges for services 19,612 1,298 757 -
Use of money and property (38,403) (167,147) (271,471) (30,602)
Contributions from General Fund:
General benefit contribution - 274,756 - -
General benefit equivalent 30,743 - - 31,266
Contributions from other funds 34,380 - - -
Miscellaneous - - - -
Total Revenues 1,302,517 3,859,736 2,534,630 559,575
Expenditures:
Personnel services 34,364 703,497 894,263 22,067
Operating costs:
Operations and maintenance 47,576 63,960 55,843 7,014
Contract services 505,623 1,275,981 536,778 205,098
Tree maintenance 88,821 189,739 60,335 41,347
Utilities 349,057 954,253 441,957 171,126
Assessment administration 62,850 35,080 20,980 6,680
Interfund allocation - 83,160 - -
General overhead allocation 57,340 324,160 257,850 40,790
Capital outlay 15,259 607,184 425,671 453
Total Expenditures 1,160,890 4,237,014 2,693,677 494,575
Net Change in Fund Balances 141,627 (377,278) (159,047) 65,000
Fund Balances, Beginning of Year 1,814,906 4,650,840 7,542,694 723,298
Fund Balances, End of Year 1,956,533$ 4,273,562$ 7,383,647$ 788,298$
Landscape
Maintenance
District #1
General City
Landscape
Maintenance
District #4R
Terra Vista
Landscape
Maintenance
District #6R
Caryn
Community
Landscape
Maintenance
District #2
Victoria
See Notes to Statement of Revenues, Expenditures and Changes in Fund Balances.
3
Page 22
#6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING MAINTENANCE DISTRICT #2 RESIDENTIAL,
AND PARK AND RECREATION IMPROVEMENT DISTRICT #85
CITY OF RANCHO CUCAMONGA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes 950,978$ 379,111$ 1,163,122$
Charges for services 4,793 - 34,998
Use of money and property 33,724 (40,202) 39,616
Contributions from General Fund:
General benefit contribution - - -
General benefit equivalent - 76,021 71,829
Contributions from other funds - 18,510 22,480
Miscellaneous - - 128
Total Revenues 989,495 433,440 1,332,173
Expenditures:
Personnel services 197,038 - 187,506
Operating costs:
Operations and maintenance 29,661 112,312 48,655
Contract services 416,224 619 282,528
Tree maintenance 38,272 - 20,490
Utilities 376,054 320,711 338,263
Assessment administration 16,130 38,080 144,590
Interfund allocation - - -
General overhead allocation 104,930 1,920 54,780
Capital outlay 1,359 - 114,508
Total Expenditures 1,179,668 473,642 1,191,320
Net Change in Fund Balances (190,173) (40,202) 140,853
as originally reported 1,313,429 1,018,032 3,191,388
Fund Balances, End of Year 1,123,256$ 977,830$ 3,332,241$
Street Lighting
Maintenance
District #2
Residential
Park and
Recreation
Improvement
District #85
Landscape
Maintenance
District #7
North Etiwanda
See Notes to Statement of Revenues, Expenditures and Changes in Fund Balances.
4
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Page 28
Independent
Auditors’ Report
on Internal Control
Over Financial
Reporting and on
Compliance and
Other Matters
Page 29
203 N. Brea Blvd., Suite203 Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022
INDEPENDENT AUDITORS’ 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
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
We have audited, in accordance with the 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, the statement of revenues, expenditures and
changes in fund balances of Landscape Maintenance Districts #1 General City, #2 Victoria,
#4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting Maintenance District
#2 Residential, and Park and Recreation Improvement District #85 (collectively, the Districts), of the
City of Rancho Cucamonga, California (the City), for the year ended June 30, 2022, and the related notes
to statement of revenues, expenditures and changes in fund balances, and have issued our report thereon
December 12, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial
statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Ls~ .... •••• ••
~ '"'Wf'";1,,n,M,-miw,nf I 1heAssoctatt-011ofAd\-1sory ?;ff PrimeGlobal nadAu•w><;oqBm"
Page 30
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control
or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Brea, California
December 12, 2022
Ls~ .... •••• ••
Page 31
Report to the
City Council
Page 32
Page 1 of 2
RECOMMENDATION:
It is recommended that the City Council receive and file this report.
BACKGROUND:
Established by Resolution 19-075, the Community Parks and Landscape Citizens’ Oversight
Committee is made up of members of the public that reside and own property within Landscape
Maintenance Districts #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and
#7 North Etiwanda, Street Lighting District #2 Residential, and Park and Recreation Improvement
District #85 (collectively “the Districts”), and do not serve on any other standing City Commission
or Committee. The primary purpose of the Committee is to review the annual audit after it is
prepared and report the results of its review to the City Council and the community on an annual
basis.
The Committee doesn’t have budgetary, operational decision-making authority, nor the authority
to allocate financial resources or direct staff.
ANALYSIS:
At our meeting on February 21, 2023, Noah Daniels, Finance Director, and Frank North, Audit
Manager of Lance, Soll & Lunghard, LLP, provided an overview of the audit for the Districts for
the Fiscal Year 2021/22. The reports generated by the audit include:
• Audit Communication Letter
• Independent Auditors’ Report on Statement of Revenues, Expenditures, and Changes in
Fund Balances
• Independent Auditors’ Report on Internal Control Over Financial Reporting
By law, each District accounts for its revenue and expenditures in its funds. The auditor reviewed
their work, and a discussion was held regarding the audit process and how the City ensures that
funds collected for maintenance and operations are spent to benefit each District. The auditors
and City Finance staff confirmed that the revenues received have been expended appropriately
on maintenance, operations, and capital improvements in each District.
DATE: TBD
TO: Mayor and Members of the City Council
FROM: Community Parks and Landscape Citizens’ Oversight Committee
BY: Noah Daniels, Finance Director
SUBJECT: Summary Of Review Of Results Of Annual Independent Audit Concerning The
Fiscal Year 2021/22 Expenditures In Landscape Maintenance Districts #1
General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, And #7 North
Etiwanda, Street Lighting District #2 Residential, and Park and Recreation
Improvement District #85. (CITY)
Page 33
Page 2 of 2
We appreciate the opportunity to serve our community on this Committee. If you have any
questions regarding our annual meeting, members of the Committee will be present at the City
Council meeting to present this report and discuss those questions with you.
FISCAL IMPACT:
There is no fiscal impact.
COUNCIL GOAL ADDRESSED:
This item addresses the City Council’s core value of actively seeking and respectfully considering
all public input.
ATTACHMENTS:
Attachment 1 – Audit Communication Letter
Attachment 2 – Statement of Revenues, Expenditures and Changes in Fund Balances for the
Districts for the year ended June 30, 2022.
Attachment 3 – Independent Auditors’ Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters
Page 34