HomeMy WebLinkAboutIAP - FY June 30, 2008 CITY OF PALM DESERT
FINANCE DEPARTMENT
Staff Report
REQUEST: RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS' REPORT ON
AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A
TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30,
2008
DATE: FEBRUARY 26, 2009
CONTENTS: INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON
PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION
FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Recommendation:
By Minute Motion, that the City Council receive and file the Independent Accountants'
Report on Agreed-Upon Procedures Performed on the Measure A Transportation
Fund for the Fiscal Year Ended June 30, 2008.
Backqround:
The Measure A Fund is a special revenue fund that was created to keep track of funds received by
the Riverside County Transportation Commission. In 1988, Riverside County voters approved a half
cent sales tax, known as Measure A, to fund a variety of highway improvements, local streets and
roads maintenance, commuter assistance and specialized transit projects.
Mayer Hoffman McCann PC, CPA, performed the procedures which were agreed to by the Riverside
County Transportation Commission, Riverside, California (RCTC) solely to assist RCTC with respect
to an evaluation of the City of Palm Desert's Measure A Transportation Fund and degree of the City's
compliance with RCTC requirements for the year ended June 30, 2008.
The Audit, Investment and Finance Committee received the Independent Accountants' Report at
their February 24, 2009 meeting, and it was recommended that the report for the fiscal year ended
June 30, 2008 be received and filed by the City Council.
Submitted by:
CITY COUIV'CILACTtON
APPROVF.D I)�NIF.n
RECEIVED� �� �- O�HI;R
Paul S. Gibson, Director of Finance/City Treasurer
MF.F.TING DATE -a�- �
Ap roved: AYES: ' �� �o �+rler't �
. � 1V'OF,S: ��6a�- ` ,
Ju ' cCarthy, Interi Manager ARSENT: N Cnc�
ABSTAIN: � �n�-
VF.RIFIF.D I3Y• � �-� r��
Original on File with City Clerk's Oi'�ce
�•\FinancP.\Niamh ClrtPaa\Ctaff RPnnrtc\An�lit Ctaff RPnnrtc�n(1R\ctf rnt anriit 7f1f1R MPacnre A rinrx
C!"i'lf�F PJ��.M DESE�iT,.CALfFU�tN�A'
_ _ Report on Agre�d Upon Pcocedure�
�4pp1���to the ;
Me��ure A L��al �tree#s and �oads Program
_ �ear �nded June 3p, 2t?08
_ _ _
_
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; (V�ayer �affman '1�IcCa�r� P�.
'. An Indepen�fent CPA Firm
23�11 Dupont Drive, Suite 20a
Irvine,Califom9a 92612
949-474-2020 ph
949-263-5520 fu
� www.mhm-pc.com
Board ofi Comrnissioners
Riverside County Transportation Commission
Riversitie, Ca{ifomia
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_ .1�1 �'E1���NT�►CCC�U�T1�►1� S' R�P F�T
�N APPLYIM��A���Ep��l� twf>`P�tQ��t�URES
llile have performe� th+e prt��durss enumera#ed belvw, which were a�reetl to by;the Riverside
�County Transport�tidn Comrt��ss�on (R�TC); sc�lsiy:tfl assist R�TC in determining whether the
Ci#�r af;Palrr� Deserk, Cal�#�mia ;��ity) was in,c�mplianc8;;with #�te Me�sure A Lacai Street and
Raa�is';Program gr,an# terrtts �ntl �n+d�tions for fhe year eride�i J�ne 30, 20fl�: The City's
managernerrt is. respons�ble for the a�counti�g, recotds, "fh�s agreed-upon procedures'
engagernent was �snducted in �cccirtlance with ett�statior� standards established ;by the
�4merican insti#ute af Cert�fied Public i�ccountants, The suff±cienc�r o�#i�e p�acedures is solety
the responsib�li#y of those part��s s�►ecified in #he r�port: Cansequentiy; we make no
repre�entati�n regard�ng the s�,�fif'�ciency ofi the proGedu��s d�:saribsd below either for the
purpase for which this �ep��t has�een�equested or f�r any oth'�r purpose,
The procedures perform�d and;fhe r�sults of.fhose procedures w�re as foltows;
1. ' ilVe'. reviewed the 99$9 Measu�'�, R �Qrd�nartice 88 1) campliance requirernents.
�llthough th� 20�9 h�l��sure`A (Ordmance 0� 4('f1) is not effe�ive`until July 'I; 2009,,
Western:�oun#y:�ur�tli+ctions;;�re requir�d to par#�crpate �r�th'e Tran�portation Unifam�
11A�tig�t�nn Fee°�i"W�II�j pragram,;which is �drr�inis#ered .by the.U�est�rn I�irrerside
C�unci# of Governrr►ents (tN'#�COG): ' `,
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Res�lt� N+a ex�ptrc�n��nrere:noted as a r�sult af c�ur proc,�dia+r�s ; .
2.' II'�e:��r��fne� t��r ��ty":� ��3p��'��! 'F�ve Ye�r C�p�t�l'tmproverr�ent P1an �C�P) from
>; i��'��C#ar the��ca�y�;�r er�ded ,�urt��o, 2�0� >;
R� �tc��x��#�or�s w�re;nr�#e�;�s a r�s+��t ot'aur�roc�lures.
3: We;ob��in�d a d�ta�i� �asneral l�d�g+sr arit� balance sh�p#f��� th� C4�y fr�r th�: �scal
y�ar ende:�1�lun��t}, 2008:
a. U�e �d�nt�fiec� #he amount ctf Measure /� cash and �n�restrnent� recorded-at
J��e 30,2flt�8; ` _
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Board'a#Comm�ssioners
Riverside County Tr�nsportatiar� �oiximission
Riverside, Califomia
F�es�alts:'The+Cityr r�corded 1Uleast�ce A cash and investments in:#he amount of
$'13;518;�35 as'af June`30, 2008:`
b. We ident�'ied amounts due from ather funds.
Resuits: Th�re were no amounts due f�om other funds as of.lune 30, 2008.
c. Vii�: identified reservations or dssignations of ending fund balance for the
Nleasu�e A a�tivity.
s It,�,:;. The;-��#y �as recorded. �he .foli�wing:,fund .balances related..#n
_ _ _ .
Measure:;A activ�#y as.of June 30�, 2fl08.
R�rv�d fa1'enr►umbrar�ces � �92,�74 .
' �e�+er�+��for coratanumg apPr�priat�ons 10;741,fi8G
Unr��erved 2�4 '782
T�t�l fiuntl ba�ianr,�. '' $���
d: �l1/e identi�ed fh��xtstence of any;re�ta�tement of Measure A funtl'balance and
in�uired o#mar��gement as to th�'reason f�r�ny restat�ment.
Ftesult�. 7`�e Cityr has not res#ated Measura A'fund b�l2�nce.
._
_ 4. We obtair�ed art�op�rattng st�tement fc�r Measure A activity for th� fiscat year ended
3une 3a, �OCi8�see �xhibit A;), �n�ludmg bratlget`amo�sn#$.
a, U1�e reviewed the r�:rr�nues in the�pe��ting st�tement:
i V�le�nquired of manag+���nt�s to what#und is us�tl to record Measure
A:rqver�u�s recei�r+ed frarni i�CT� for'tt�e fiscal ye�r +end�d June 30, '
�t3Q#�, arid �i��am+�r�t�d what the total revenue�s w�r�for#he fiscal year
, ,
,
_ �ntl�d Ju�e�t9, ��t�8 _ __
���',�,,,,,� fi�e;�ity �c��an#� fbr` �l+�asur+e ,� r�reriue recetved fr�rn
F���'� �� F�a�d ���; i�a��ur� �l �u��. T�+e ��ty,t�as re�arded tatai
��€+�n� �r� �t?�'� a�rtar�� � $3,�fl�1,�21 ft�r` th� #3sc�� �e�r'ent�eci June` _
��3, ��$
ti; 1t1�+� �t�#�iir�e� �i ii�r�� t�����s�rr�!� p�ym�r�fs;ma�t+�:fr+�m RCTC tc� the,
�C��y V��c���s�te� th�i�I�a�c�r�A r+evenue r��r�ed by th��ity to#he`
listmg �if;pa�r�°ii�nts m���r by F��T'�. _. ,
_
�,�,s '11V�td�en��r�t�#��follc�w�t�g ��ri�n�e b�twe�er► th�Measures A
r��r�n�r� r�ecflt�de�� by th�`���r i�ti corr�p�nsr�n`tc th� R�"t'C �4A�asure �i
�aym�nt s�he�lul�. , , , .
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�aard of C�rnmissioners `
Riverside Coun#y Transportation Commission
Riverside, Califvrnia
Measure A paymerits made by RCTC $2,89t?,083
: Measure A revenue recorded by City 2:451y091
Variance ��,`��
The components of this variance are as foilows:
Aliocations reta#ed to a prior period $68�,032
June 2048 aiioeation 248 040
_ _ . , . ,. . , . .. __
vari�nce ��� .99�
iii. V1le dat�rmined the; ar�n�unt af intere�t alio�ated to #he M�asure A
ac��ty;for tt�e;fiscat'year.ended June 30, 20C18.
F�:esuits: T�,�'C�ty �Il+�ca�ed in#et�s# �n #h� amount of �652,234'to the _
Nl±��sure A���vity fvr#h��isr.a!�r�ar er�ded.�u��3Q; 2�3C��:
' b. UVe rsvrew�d the exper�d�tur�s in fihe aperating`statement: `
i We mqu�red�f managemerti as to wha�fund is used ta reedrd It�leasure
A expenditures and wha# the#ntal expenditures wer�for the fscal year
entled ,l�ane 30, �008.
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__ _ t�`�staits: Th���ty acc�aur�ts for lUl+�asure A expendifures in Fund #213,
lrllea�ure�Fund The City has record�! tat;�il;Me�sure A expenditures
irt�he�rrt+�unt;c�f$�438,A�55 f+�r the;fisca�::ye�c�rtded �tur�e 30, 2�08.
,
ii aN� �ui�grne�ttally sele�#ed at Isast 2t�% of totaf Measure A
exper�dit�res;�'nr�+esting. '
e �lfs,; The'C��,r r�cord�s� IUl��isure A e�tpentlltures in tk�e ar»ount of
_ _ .$�38,��� 1��sek�cted�97,fi6�(22 2$'°I��far testi�tig,
;1 �or#h�e�c���d�t�res sel�ted �r�est�ng;v�+� cornpared tt�e;doliar:
arr�ca�nt 're����tl rti the '; generel ledg�r �t� the suppdrting
doc+am+�n�a�t��r��
R.,�I,�''Nc�e�rcepttt�t�S r��r�nnfeC�as a t'$sttl#;t�f t�w�;'prqce+�ure�.:
;
� F�r t�e�xp�ntlitt�res'sei�ct+e�d�ot f��trng; wt� Eeviewecl th� 5-Y��r
_ : CIF' �n�:n�at�l:��th�t`#h�:; t _ _
_
� �� �I��r��f were"included'�n the
5 Yea�C�i� ����a#h�r#I��y��%s#i��,�te�1��wabie co�ts:
;
`�ts : 7� e��d't#ur� ss�+�c;t+�ci fdr f���in� inrer� incfud�d in
t�e 5-y�?ar �1P and wer� a1lflw�ble r.�sts I�o exs�}�#i+�ns w�re
__ .
n�t�a�a re�ult�f�ur��rt�c�l�r+�s.
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;Baard o#Comm�ssioners
R"ruerside�aunty Tr�nsportation +Comrnrs�ion
Riverside, Gali#omia`
iii. We mqu�r�d nf management as to the nature of any transfers recorded
in the Nteasure A�und.
Re� Its: 'P�r �i�cussio�t,with managemer�t and review of the general
iedger,;#Mer�were no tr�ns#ers r�cr�rded for the fiscai year ended June
3D; 24�8:
iv. We inquired af managemen# as to the amour�t of indirect costs, if any,
included:in expentlitures.
R sult�, pet tliscussion with management ar�d rsview of the genefai
_ , _ _ .
I�dger,;#�ers w{ere no indire�t co�t� r�cafded.for#he fisca! year ended
.lune 3Q, �008:
5. ' W� cornpared th+� btadgeted e�pendrtures tb ���aal amounts and inqui�ed of
man�g+�m�r�t as;to the'natur�of sign�f�nt bud��t v�ri�n�e�'.
i�esults `Tl�� �ollt�w�ri� sci��tltale: �orr�p�res th� b�dget�d e�cpenditures to' actual
arrtountsr,
B�dget A u�l Varianc�e
GonStruction and maintenance $25�,.43� $43�,;�8:45� $2�,000.059
Totais . ��'4a�;� ����� $���
The variance in c+�nstruction and mamtenance wes dwe to pr�jects not being sta�ted
durtng th� aud�t.;pen�d dus to delays in �nv�ronrnental dncumen#at�on �nd apprav�l
fracn Ca1�r�r�s,. ,
6. illfe ob#air��d `a I�sf�ng 0'f JtJfESCIICtlbtl8 WFIfl p�rticipat+� ;in the. Western Cnunty o�
�oache!!ai'�all�ey�'UMF pr�gr�rns#rom RG'�C ;
a.` If th�Juri���a�n �s a: par���ip�nt i,n th� T'U�IIF prr��rarr�, we sel$cted at least
tusrr� tlxsl��rr�xn��tts f�r v��ic�a#ion �� ta;;t�� am��nt;r��nit��d to``1l�l�tC�3G �r
C���#'�e�1��►!'�lt��r�s�r�r��t�or�of Go�r�rr�r��ttt�{�'�A�),as a`pp[i�able.
f��u�s ' Th�a p��r���a� s�f��f,�d ;fc�t test�n�g t�rd��a#ed #h�r�'TUIU�� is coll�cted'.
�nd r�t�ti�tetl f�'�W��, �� r�quir+�d
�;> �� n�►�ec! �he #atal �rr�c�+�nt c�f TUlVI�� fees coll�ect�tl a�d �emitted dr�nng tt�e
:
_ _ _ _ fiscal year :
F�s�'`; The;tt�#�I arnour� c�f` TU�'I� f�es coilec#�tl �rid r�mitteci dur�ng the
�st.�!y+�r w��'����,��3. ,
7. V'Ve�bta�n�d th� rnaint�en���o#����t(��E3;��s�y���r re�ir�m�r�t trom ��TC.
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Board of Commissian�ers
Riverside County Transportation Commission
R�verside, Cali�csrnia
a: V1te obfained a copy of schedule 3 from the annual Street Report.
Resul#s: i�to exceptions were noted as a resuit of our procedures.
b. We cornpared the atnount of discretionary funds sper�t per the Street Repart to
the MC3E base requirement.
Results: No exceptions were noted as a resuit of our procedures.
c. Usin� #he priar years' report, we added any current year MOE excess or
_ _ _ ded�t�ted any:current year MO� defic��n.cy.tc�;#h��riQr.year cacryov�r. __ __ .
�esulfs Mt�E act�vity is summarize�i as foAows:
; M+4E excess at July 1,'2�U7 $94,533.8�6
; ��rrrent y�ar ioc�� discretionary e�cpenditures> 18,52'1,121
L,e� ttilJOE base;y+ear requir�ement 9t�4.7�98
Ex�ess 1�l0►E fvr;fscal`ye�r ended June 30, 2bC38 '17,616,323
M0� excess at June 30, �008 $ 12. 179
a�����
We v►rere not engaged #o, and.:�id n�t, r;�:ndu+ct,an audit, the.objective of v�hich would be the _
_ expr�ss�on of an opm�on:;crn th�; a�+countirrg re�orcis: Accc�rdit�tgly., we dd not express �uch an _ _
op�nion H�d w� per�arr'�ed add�tioi�al proce�ur�s; other m�tt+ers might have corne to our
att�ntior� th�it wauld fiave'be��r�por�ed�c�you
This reporE is �ntended sol�ly#or t�e inf�rmation and �se of#h� Board of Commissioners af the
Riversids�ounfy Transporta#ion Cornrnission and is not inten��c!to be and should not be used
by anyone ot�er ttian this�p+��if�l partyr: ;
,��.�.� �'.��!;�..... �,�
� �r� ~
]rv�r,�,'c�lifiorni� ;
�C�'�':t�"I��r�+�i �{��}�
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EKHIBIT A
Ci'1"Y t,�F.PALM DE�ERT, GAL.IF�RNIA
5ummary�:o#Revenues and Expendit�ares
Y�ar Ende�d June 30, 2008
(Unawdited)
Budget Actual Variance
Revenues:
1lfieasure A $ 2,850,000 $ 2,451,091 $ (398,909)
_ Fteimtiursements from:other:agencies . �.. . ._. 356;781 _ _ 256,781 _
In#erest 2�q;d00 .; . 55�;�34 . 412,2�
`Mis�eltaneou� 1p�,t�t,1D: 4E3;2�5 {59,785)
TQt�I fE3Y@J�UBS.' 3,99:�3,t3�0: 3�40Q,321 ;21�,.3�1
Expen��tures
'Construct�an and maintenan�e; 25,�438��1� 438;45� 25;DOfl,059
Total expenc�itures 25,�38,5�4 ` 43�;4�5 25,000,05�
Excess ���ficiency� of revenues�v�r
( ) P , _ ) 9fi4;866_ $ 25;21 Q,38�
under ex enditures $ (22,248,514 $ 2,
No#e. The abov$numb�rs were#.ak$n�tirect�y.from the�nat�cial records.o#the City of Palm
, ,
' �esert and were na#aus�it�d, '
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