CITY OF LAGUNA NIGUEL NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Laguna Niguel, California (the City) are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing accounting and financial reporting principles. The more significant of the City’s accounting policies are described below. Reporting A. Financial Entity The City wa s incorporated on December 1, 1989 under the general laws of the state of California and enjoys all the rights and privileges pertaining to such “General Law” cities. The City operates under a council- ides manager form of government and currently prov public safet street y, animal control, planning, building, code enforcement, engineering, and park maintenance, street lighting, parks and recreation programs, and general administrative services. ll fund types of the City (the primary government). The City This report includes a does any component units for the fiscal year ended June 30, 2024. Compone not include nt tities for which the City is considered to be financially accountable. Th units are en e City is considere s a d to be financially accountable for an organization if the City appoint voting majority of that or e City is able to impose its ganization’s governing body and th will on that ecific organization, or there is a potential for that organization to provide sp financial be also nefits to, or impose specific financial burdens on, the City. The City is considered t ependent (i.e., it o be financially accountable if that organization is fiscally d is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. B. Basis of Accounting, Measurement Focus, and Financial Statement Presentation ts of the City are organized on the basis of The accoun funds, each of which is a separate accounting entity. The operations of each fund are account considered ed for arate set of self-balancing accounts that comprise its assets, liabilities, with a sep fund nues, and expenditures or expenses, as appropriate. Fund accoun equity, reve ting segregates f unds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. Government-Wide Financial Statements The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental activities for the City. (37)