Comprehensive Annual Financial Report - City of Cerritos

dI
nvDcOIN)mIDMMM
800Z LclI-916 (19c) :xvi. ico-o (g)
oclc-coLo6 viioiiiv ‘soiini• ocic xog oi
fl}JAV auwooi ciii )i2JhJ2D DIAID
December 2, 2010
Honorable Mayor, Members of the City Council, and Citizens of the City of Cerritos
It is our pleasure to present the Comprehensive Annual Financial Report (CAFR) of the City
of Cerritos (the City) for the fiscal year ended June 30, 2010.
This report consists of management’s representations concerning the finances of the City of
Cerritos. Management assumes the responsibility for the accuracy of the presented data,
the completeness and fairness of the presentation and all disclosures. To provide a
reasonable basis for making these representations, management has established a
comprehensive internal control framework that is designed both to protect the City’s assets
from loss, theft, or misuse and to compile sufficient reliable information for the preparation
of the City’s financial statements in conformity with generally accepted accounting principles
(GAAP). Because the costs of internal controls should not outweigh their benefits, internal
controls have been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatements.
The City’s financial statements have been audited by Caporicci & Larson, Inc., a subsidiary
of Marcum, LLP, a firm of certified public accountants. The auditors have issued an
unqualified opinion on these financial statements. Such an opinion states that the auditors
feel the City followed all accounting rules appropriately and that the financial reports are an
accurate representation of the City’s financial condition. Their report is located at the front
of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent
auditor’s report and provides a narrative introduction, overview, and analysis of the basic
financial statements. This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it.
Profile of the City of Cerritos
The City of Cerritos is located approximately 20 miles southeast of Los Angeles along the
border of Orange County. Beginning as an unincorporated area known for its strawberry
farms and dairy operations, the City experienced a major transformation into a more urban
environment beginning in the late 1960s. In 1973, a unique and innovative General Plan
was adopted, which has guided development in a master planned fashion to create a parklike
community with balanced development. Today the City is a progressive, affluent
community with a highly educated and ethnically diverse population.
The City is home to over 50,000 residents and several large business organizations.
Cerritos enjoys the distinction of being a large sales tax generator, resulting in significant
revenues to support City operations.
i