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6.B. - Page 52 of 55 <br />Estimated Net OPEB Liabilities: Management's estimate of the net OPEB Liabilities is disclosed <br />in Note 9 of the basic financial statements and is based on actuarial study determined by a <br />consultant, which is based on the experience of the City. We evaluated the key factors and <br />assumptions used to develop the estimate and determined that it is reasonable in relation to the <br />basic financial statements taken as a whole. <br />Estimated Fair Value of Investments: As of June 30, 2020, the City held approximately $388.0 <br />million of cash and investments as measured by fair value as disclosed in Note 2 to the financial <br />statements. Fair value is essentially market pricing in effect as of June 30, 2020. These fair <br />values are not required to be adjusted for changes in general market conditions occurring <br />subsequent to June 30, 2020. <br />Estimate of Depreciation: Management's estimate of the depreciation is based on useful lives <br />determined by management. These useful lives have been determined by management based on <br />the expected useful life of assets as disclosed in Note 1J of the basic financial statements. We <br />evaluated the key factors and assumptions used to develop the depreciation estimate and <br />determined that it is reasonable in relation to the basic financial statements taken as a whole. <br />Estimate of Compensated Absences: Accrued compensated absences which are comprised of <br />accrued vacation, holiday, and certain other compensating time is estimated using accumulated <br />unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note <br />lE of the basic financial statements. We evaluated the key factors and assumptions used to <br />develop the accrued compensated absences and determined that it is reasonable in relation to the <br />basic financial statements taken as a whole. <br />Estimated Claims Liabilities: Management's estimate of the claim's liabilities payable is <br />disclosed in Note 13 of the basic financial statements and is based on an actuarial study <br />determined by a consultant and the claims experience of the City. We evaluated the key factors <br />and assumptions used to develop the estimate and determined that it is reasonable in relation to <br />the basic financial statements taken as a whole. <br />Disclosures <br />The financial statement disclosures are neutral, consistent, and clear. <br />Difficulties Encountered in Performing the Audit <br />We encountered no significant difficulties in dealing with management in performing and completing our <br />audit. <br />Corrected and Uncorrected Misstatements <br />Professional standards require us to accumulate all known and likely misstatements identified during the <br />audit, other than those that are clearly trivial, and communicate them to the appropriate level of <br />management. Management has corrected all such misstatements. In addition, none of the misstatements <br />detected as a result of audit procedures and corrected by management were material, either individually or <br />in the aggregate, to each opinion unit's financial statements taken as a whole. <br />Professional standards require us to accumulate all known and likely uncorrected misstatements identified <br />during the audit, other than those that are trivial, and communicate them to the appropriate level of <br />management. We have no such misstatements to report to the City Council. <br />109 <br />