Meeting_Body
MEASURE R INDEPENDENT TAXPAYERS
OVERSIGHT COMMITTEE
NOVEMBER 4, 2020
Subject
SUBJECT: MEASURE R ORDINANCE AND LOCAL RETURN COMPARATIVE ANALYSIS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
Receive and file comparative analysis on the Independent Auditor’s findings on Compliance with Requirements Applicable to Measure R Ordinance and Measure R Local Return Guidelines for the last four years.
Issue
ISSUE
The Measure R Oversight Committee requested that we provide a comparative analysis on the auditor’s findings for the previous four years. This report is provided to fulfill this request for Fiscal Year 2016 - 2019.
Discussion
DISCUSSION
Metro contracted with two firms to conduct the audits for the reporting period which were Vasquez & Company, LLP (Vasquez) and Simpson & Simpson. The auditors have found that the cities and county generally complied with the requirements applicable to the Measure R Local Return Guidelines, with the exception of the City of Compton for FY 2016 and FY 2018 and the City of South El Monte in FY 2019. The auditors found a compliance rate of:
• 97% for FY 2016;
• 96% for FY 2017;
• 97% for FY 2018; and
• 97% for FY 2019.
The table below shows a summary of the findings by compliance area:
|
Compliance Area |
FY 2016 |
FY 2017 |
FY 2018 |
FY 2019 |
|
Funds were expended with LACMTA’s approval |
8 |
10 |
11 |
6 |
|
Expenditure Report (Form 2) was submitted on time |
6 |
2 |
1 |
7 |
|
Expenditure Plan (Form 1) was submitted on time |
3 |
15 |
8 |
5 |
|
Funds were expended for transportation purposes |
8 |
4 |
3 |
4 |
|
Admin Expenditures are within the 20% cap |
3 |
N/A |
1 |
NA |
|
Recreational Transit form was not submitted on time. |
1 |
N/A |
N/A |
1 |
|
Timely Use of Funds |
N/A |
1 |
3 |
N/A |
|
Accounting procedures, record keeping and documentation are adequate |
N/A |
N/A |
1 |
N/A |
|
Total Findings per Fiscal Year |
29 |
32 |
28 |
23 |
Resolution of the deficiencies is discussed in another item within this agenda titled Measure R Local Return Compliance Status.
Next_Steps
NEXT STEPS
Management Audit Services will follow-up on the corrective actions as outlined in the Vasquez and Simpson and Simpson Independent Auditor’s Reports on Compliance with Requirements Applicable to Measure R Ordinance and Measure R Local Return Guidelines to ensure implementation and compliance.
Prepared by: Monica Del Toro, Audit Support Manager, (213) 922-7494
Lauren Choi, Sr. Director, Audit (Interim), (213) 922-3926
Reviewed by: Shalonda Baldwin, Chief Auditor (Interim), (213) 418-3265