Meeting Date:

December 11, 2017





David J. Stoldt,




General Manager

Line Item No.:



Prepared By:

Suresh Prasad

Cost Estimate:



General Counsel Review:N/A

Committee Recommendation: None.

CEQA Compliance:This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.


SUMMARY:A draft copy of the Districtís Comprehensive Annual Financial Report (CAFR) is provided for review. Draft of the Independent Auditorsí Report and Board Communication Letter (required communication letter from the Auditors to the Board) for the fiscal year ending June 30, 2017 has been received from the Districtís auditors, Hayashi & Wayland.The audit documents will also be posted on the Districtís website after it has been accepted by the Board.Hayashi & Wayland has been the District auditors since 1989.


This is the third year that the District has prepared a CAFR. A CAFR is a set of government financial statements comprising the financial report of a municipality that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). GASB provides standards for the content of a CAFR in its annually updated publication. A CAFR is compiled by the governmental accounting staff and audited by an external certified accounting firm utilizing GASB requirements. A CAFR is composed of three sections:


Introductory section Ė includes transmittal letter.

Financial section Ė includes the independent auditorís report and contains managementís discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.

Statistical section Ė includes additional financial, economic, and demographic information.


The auditors have issued a clean opinion on the Districtís CAFR.The audit did not identify any deficiencies in the internal control that the auditors consider to be material weaknesses.Representatives from Hayashi and Wayland will be available at the meeting to review the Board Disclosure Letter.


A Management Letter may be issued in conjunction with the Report to offer constructive suggestions for improvements on matters that came to the auditorsí attention in connection with the audit, however, such letter was not deemed necessary by Hayashi & Wayland in connection with the audit for this fiscal year.


The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended June30, 2016.This was the second year that the District has achieved this prestigious award.In order to be awarded a Certificate of Achievement, the District had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable program requirements.A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only.However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Programís requirements, and we will be submitting it to the GFOA to determine its eligibility for another certificate.


RECOMMENDATION:District staff recommends that the Board review and receive the Comprehensive Annual Financial Report for the year ending June 30, 2017.



15-A††† Comprehensive Annual Financial Report for FY 2016-2017 (Delivered Separately)

15-B††† Board Disclosure Letter (Delivered Separately)