2023d ABC Board Minutes - Laserfiche WebLink

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• . :--dmjps �.�. .• cpas + advisors MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the Orange County Alcoholic Beverage Control Board's ("the ABC Board") financial report represents our discussion and analysis of the financial performance of the ABC Board,as of,and for,the years ended June 30,2023 and 2022.This information should be read in conjunction with the audited financial statements included in this report. Financial Highlights • Working capital decrease of approximately 14.18%over the prior year. • Approximately 11.5%of profits was expended for law enforcement in the current year. • Approximately 17.3%of profits was expended for alcohol education and rehabilitation in the current year. Overview of the Financial Statements The audited financial statements of the ABC Board consist of three(3)components. They are as follows: • Management's Discussion and Analysis • Basic Financial Statements • Additional Information Required by the ABC Commission The Basic Financial Statements are prepared using the full accrual basis of accounting. They consist of three (3) statements.The first statement is the Statement of Net Position.Assets and liabilities are classified between current and noncurrent. This statement provides a summary of the ABC Board's investment in assets and obligations to creditors. Liquidity and financial flexibility can be evaluated using the information contained in this statement. The next statement is the Statement of Revenue, Expenses, and Changes in Net Position. This statement is used in evaluating whether the ABC Board has recovered all its cost through sales. Its information is used in determining credit worthiness. The final required statement is the Statement of Cash Flows. This statement reports cash inflows and outflows in the following categories:operating,investing,and financing activities.Based on this data,the user can determine the sources of cash,uses of cash,and change in cash. The notes to the financial statements provide more detailed information and should be read in conjunction with the statements. The ABC Commission requires some schedules,in addition to the information required by generally accepted accounting principles generally accepted in the United States of America. They include Schedule of Revenues and Expenses by Store, Schedule of Store Selling Expenses,Schedule of Warehouse and Delivery Expenses, Schedule of Administrative Expenses, Schedule of Nonoperating Income (Expense), Schedule of Law Enforcement Expenses, Schedule of Distributions of Profits, and a Schedule of Revenue and Expenditures—Budget and Actual. -4- DMJPS PLLC 1 888.873.2545 1 dnnJps.corn I be greater Member of CPAmerica,Inc.