Metro - File #: 2023-0109

• File #: 2023-0109
• Type: Informational Report
• Status: Agenda Ready
• File created: 2/14/2023
• In control: Independent Citizen’s Advisory and Oversight Committee
• On agenda: 3/13/2023
• Title: RECEIVE AND FILE the Independent Auditor's Report on: A. Schedules of Revenues and Expenditures for Proposition A and Proposition C Special Revenue Funds for the Fiscal Year ended June 30, 2022, completed by BCA Watson Rice, LLP (BCA); B. Compliance with Requirements Applicable to Proposition A and Proposition C Ordinances and Local Return Guidelines for the Fiscal Year ended June 30, 2022, completed by Vasquez & Company, LLP (Vasquez); and C. Compliance with Requirements Applicable to Proposition A and Proposition C Ordinances and Local Return Guidelines for the Fiscal Year ended June 30, 2022, completed by Simpson & Simpson, CPAs (Simpson).
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Audit, Evaluation and assessment, Financial Audit, Formula Allocation / Local Return, Guidelines, Informational Report, Local Returns, Proposition A, Proposition C

Meeting_Body

INDEPENDENT CITIZEN'S ADVISORY AND OVERSIGHT COMMITTEE
MARCH 13, 2023

Subject
SUBJECT: PROPOSITION A AND PROPOSITION C AUDITS OF FISCAL YEAR 2022

Action
ACTION: RECEIVE AND FILE


Heading
RECOMMENDATION

Title
RECEIVE AND FILE the Independent Auditor's Report on:

A. Schedules of Revenues and Expenditures for Proposition A and Proposition C Special Revenue Funds for the Fiscal Year ended June 30, 2022, completed by BCA Watson Rice, LLP (BCA);

B. Compliance with Requirements Applicable to Proposition A and Proposition C Ordinances and Local Return Guidelines for the Fiscal Year ended June 30, 2022, completed by Vasquez & Company, LLP (Vasquez); and

C. Compliance with Requirements Applicable to Proposition A and Proposition C Ordinances and Local Return Guidelines for the Fiscal Year ended June 30, 2022, completed by Simpson & Simpson, CPAs (Simpson).

Issue
ISSUE

In November of 1998, Los Angeles County voters passed the MTA Reform and Accountability Act of 1998. This Act requires the completion of an independent audit to determine compliance by LACMTA with the provisions of Propositions A and C since the effective dates of each ordinance through June 30, 1998, and then annual audits thereafter. The oversight process requires that an annual audit be conducted six months after the end of the fiscal year to determine compliance with the provisions of the Ordinances related to the receipt and expenditure of sales tax revenues during the fiscal year. The audit must be provided to the Oversight Committee so that the Oversight Committee can determine whether the LACMTA and local subrecipients have complied with the Proposition A and Proposition C requirements.

Discussion
DISCUSSION

The following summarizes the independent auditor's report on Schedules of Revenues and Expenditures for Proposition A and Proposition C Special Revenue Funds:

Management Audit Services (MAS) contracted with BCA to perform the independent audit of the LACMTA...