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6.A. - Page 49 of 52 <br />REQUIRED COMMUNICATIONS <br />To the Honorable Mayor and Members of City Council <br />of the City of Redwood City <br />Redwood City, California <br />[)/A� M ACZTE <br />We have audited the basic financial statements of the City of Redwood City for the fiscal year ended June <br />30, 2019. Professional standards require that we communicate to you the following information related to <br />our audit under generally accepted auditing standards, Government Auditing Standards and the Uniform <br />Guidance. <br />Significant Audit Findings <br />Accounting Policies <br />Management is responsible for the selection and use of appropriate accounting policies. The significant <br />accounting policies used by the City are described in Note 1 of the basic financial statements. No new <br />accounting policies were adopted, and the application of existing policies was not changed during the <br />fiscal year. <br />The following pronouncements became effective, but did not have a material effect on the financial <br />statements: <br />GASB 83 — Certain Asset Retirement Obligations <br />GASB 88 — Certain Disclosure Related to Debt, including Direct Borrowings and <br />Direct Placements <br />Unusual Transactions, Controversial or Emerging Areas <br />We noted no transactions entered by the City during the fiscal year for which there is a lack of <br />authoritative guidance or consensus. All significant transactions have been recognized in the financial <br />statements in the proper period. <br />Accounting Estimates <br />Accounting estimates are an integral part of the financial statements prepared by management and are <br />based on management's knowledge and experience about past and current events and assumptions about <br />future events. Certain accounting estimates are particularly sensitive because of their significance to the <br />financial statements and because of the possibility that future events affecting them may differ <br />significantly from those expected. The most sensitive estimate(s) affecting the City's financial statements <br />were: <br />Estimated Net Pension Liabilities and Pension -Related Deferred Outflows and Inflows of <br />Resources: Management's estimate of the net pension assets and liabilities and deferred <br />outflows/inflows of resources are disclosed in Note 9 of the basic financial statements and are <br />based on actuarial studies determined by a consultant, which are based on the experience of the <br />City. We evaluated the key factors and assumptions used to develop the estimate and determined <br />that it is reasonable in relation to the basic financial statements taken as a whole. <br />Accountancy Corporation <br />3478 Buskirk Avenue, Suite 215 <br />Pleasant Hill, CA 94523 <br />T 925.930.0902 <br />F 925.930.0135 <br />E maze@mazeassociates.com <br />w mazeassociates.com <br />55 <br />