9L Consent - Laserfiche WebLink

Home

CITY OF SAN LEANDRO NOTES TO BASIC FINANCIAL STATEMENTS For The Year Ended June 30, 2021 NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued) N.Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs – other than quoted prices included within level 1 that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. O.Property Held for Resale The City purchased property with the intent to resell the property to an income eligible first-time home buyer. The carrying value of the property as of June 30, 2021 is $382,668. P.Implementation of New Governmental Accounting Standards Board (GASB) Pronouncements Management adopted the provisions of the following Governmental Accounting Standards Board (GASB) Statements which became effective during the year ended June 30, 2021. In January 2017, GASB issued GASB Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The provisions of this Statement were implemented during fiscal year 2021. As part of the implementation of the Statement, it was determined that the Cherrywood Fund previously reported on the City’s financial statements as Agency Funds should be reported as a Custodial Funds. In addition, it was determined that the Deposit Fund should be recategorized as part of the General Fund, previously reports as an Agency Fund. Furthermore the PARS OPEB Trust fund is no longer reported as of July 1, 2020. Beginning net position of the Cherrywood Custodial Fund was restated and increased by $1,561,632. In August 2018, GASB issued GASB Statement No. 90, Majority Equity Interests – (an Amendment of GASB Statements No. 14 and No. 61). The objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The City does not have any Majority Equity Interests that are within the scope of GASB Statement No. 90. 51312