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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee June 28, 2011MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, June 28, 2011 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:05 a.m. 11. ROLL CALL Present: Absent: Jean Benson, Mayor David Erwin, City Attorney Luis Espinoza, Asst. Finance Director Paul Gibson, Finance Director Thomas Jeffrey, Deputy City Treasurer Patricia Kent, Committee Member Justin McCarthy, ACM/Redevelopment Robert A. Spiegel, Mayor Pro Tempore Susan Marie Weber, Committee Member (10:07 a.m.) John Wohlmuth, City Manager Also Present: CITY COUNCIL ACTION Anthony Hernandez, Senior Financial A OVF.D DENIED Niamh Ortega, Recording Secretary RECEIVED °+- Fi le OTHER Veronica Tapia, Redevelopment Accountant Derek White, Desert Willow Golf Resort MEETING DAT AYES: Ffnerhl,,Rari)(K, III. ORAL COMMUNICATIONS NOES: ABSENT: LCRC ABSTAIN: _ None. VERIFIED I3Y: D tC_ c IV. APPROVAL OF MINUTES Original on File with City Cler 's Office A. MINUTES OF THE REGULAR MEETING OF MAY 24, 2011 MOTION was made by Member Spiegel and seconded by Member Erwin to adopt and approve in their entirety the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on May 24, 2011. Motion unanimously approved. GARnanceWiamh Ortega\Investment Committee\2011\Minutes 062811.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 28. 2011 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR MAY 2011 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended May 31, 2011 was approximately $219.7 million. Interest earnings were approximately $125,000. Yield -to -maturity was approximately 0.71%. The book value of the Redevelopment Agency Portfolio for the period ended May 31, 2011 was approximately $241.4 million. Interest earnings were approximately $120,000. Yield -to -maturity was approximately 0.62%. MOTION was made by Member Spiegel and seconded by Member Erwin to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for May 2011 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR MAY 2011 MOTION was made by Member Spiegel seconded by Member Erwin to receive and file the Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), Riverside County Investment Pool, and Rabobank Investment Pool statements for May 2011 as presented. Motion unanimously approved. C. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR MAY 2011 Chairman Gibson presented the City's report. He indicated that transient occupancy tax is up, while other funds are maintaining at budgeted amounts. Ms. Tapia reported that cumulative revenue is approximately $49 million, and expenditures are $32 million. Year-to-date revenue is at $107 million, and expenditures are $113 million. MOTION was made by Member Erwin and seconded by Member Wohlmuth to receive and file the City and Redevelopment Agency financial reports for May 2011 as presented. Motion unanimously approved. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 28. 2011 D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR MAY 2011 The Water Resources Control Board tenant improvements are complete, although the conference room still needs to be furnished. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Parkview Professional Office Buildings financial reports for May 2011 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR APRIL 2011 Mr. White reported that May was a good month for Food & Beverage, reporting $233,000 versus a budget of $193,000, and ahead of prior year by $60,000. Overall revenue was $797,000 versus a budget of $753,000 and $831,000 prior year. Payroll was $421,000 versus a budget of $401,000. Expenditures were $298,000 versus a budget of $258,000. The majority of overages were related to water expenses and a change from capital lease to operational lease for the golf carts. MOTION was made by Member Erwin and seconded by Member Spiegel to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for May 2011 as presented. Motion unanimously approved. F. INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND MOTION was made by member Erwin and seconded by Member Wohlmuth to recommend that the City Council receive and file the Independent Accountants' Report on Agreed -upon Procedures performed on the Measure A Transportation Fund. Motion unanimously approved. G. COMMITTEE APPROVAL TO FOREGO AN AUDIT OF THE CITY'S CASH AND INVESTMENTS IN FISCAL YEAR 2011 Mr. Gibson reported that due to a lack of activity, no audit is necessary this year. MOTION was made by Member Spiegel and seconded by Member Erwin to forego an audit of the City's cash and investments in Fiscal Year 2011. Motion unanimously approved. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 28 2011 H. REVIEW OF AUDIT GUIDELINES AND AUTHORIZATION FOR 'DIEHL EVANS & COMPANY LLP TO BEGIN WORK ON AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2011 (This item was added to the agenda by motion made by Member Erwin, seconded by Member Spiegel, and unanimously approved.) Mr. Gibson welcomed Mr. Nitin Patel, CPA of Diehl, Evans & Company, LLP and reminded the Committee that Diehl, Evans had been approved to perform the audit for the fiscal year ending June 30, 2011. Mr. Patel outlined the responsibilities of the auditors, and the scope and timing of the audit. As in previous years, Diehl, Evans & Company, LLP will prepare three reports as follows: 1) City and Desert Willow; 2) Redevelopment Agency and Housing; and 3) Palm Desert Recreational Facilities Corporation. Interim fieldwork will begin July 18, 2011 at the City of Palm Desert and Desert Willow. Final fieldwork for the Housing Authority in Lodi will take place on August 29, for PDRFC and Desert Willow on September 6, and on September 12 for the City and Redevelopment Agency. The final report will be issued to the Committee and City Council by January 2012. MOTION was made by Member Erwin and seconded by member Spiegel to accept the audit guidelines and authorize Diehl, Evans & Company, LLP to begin work on the audit for the fiscal year ending June 30, 2011. Motion unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS None. 4 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 28 2011 IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:43 a.m. to the next scheduled meeting of July 26, 2011. Niamh Ortega, Rec ding Secretary 5