Vill City of Villa Park*

and Recommendation R-1. Finding F-1: Aliso Viejo, Dana Point, Laguna Hills, and Villa Park were not in compliance with GASB Statement No. 45 regarding the authorization of a study to determine other post-employment benefit liabilities. Aliso Viejo, Dana Point, Laguna Hills, Laguna Woods, and Villa Park were not in compliance with the disclosure of post- employment benefits in the Notes Section of their Comprehensive Annual Financial Report for the FY 2012-13. Response: The City of Villa Park disagrees with this finding. Nothing was disclosed because OPEB was not expected to be material (per management and independent audit firm Mayer, Hoffman, McCann, P.C.) to Villa Park's statement of net position. GASB No. 45 states very clearly, if it's immaterial, none of the provisions of GASB 45 are required to be addressed in the financial statements for that entity. Recommendation R-1: The cities of Aliso Viejo, Dana Point, Laguna Hills, Villa Park and Laguna Woods should measure and disclose their liability in accordance with Governmental Accounting Standards Board Statement No. 45. (F.1.) Response: The recommendation has been implemented. In FY 2014-15, Villa Park obtained an OPEB actuarial valuation and it will be disclosed with GASB No. 45 in the Notes Section of their Comprehensive Annual Financial Report for the FY 2014-15. DIANA FASCENELLI, Mayor • GREG MILLS, Mayor Pro Tem RICK BARNETT, Councilman • ROBERT COLLACOTT, Councilman • BILL NELSON, Councilman Thank you for the Grand Jury's vigilance in maintaining open and transparent government; we appreciate the opportunity to respond to this Report. Sincerely, THE CITY OF VILLA PARK tescen Diana Fascenelli Mayor City Council C: