TITLE
Recommendation to receive and file the Proposition H Audit Report for the fiscal year ending September 30, 2012.
DISCUSSION
Pursuant to Long Beach Municipal Code Section 3.80.227, the Office of the City Auditor is charged with conducting an annual independent financial audit of Proposition H (Prop H) funds and providing a written report to the City Council.
The City Auditor conducts annual audits of Prop H funds to identify the following: the amount of special tax revenues collected during the fiscal year, the amount of special tax revenue expended on eligible costs during the fiscal year, the amount of unspent monies on deposit that were carried over into the current fiscal year, and the status of any projects and programs funded by the special tax revenues.
We determined the following as a result of our audit:
1) During fiscal year 2012, the City received $3,394,899 of Prop H revenues, a decrease of $33,109 from the prior year;
2) Prop H expenditures during the fiscal year totaled $3,072,940. Expenditures were made for eligible costs as defined in the Municipal Code;
3) The amount of unspent monies carried over into fiscal year 2013 increased to $959,748. In an effort to reduce the carry-over balance, Management budgeted a total of $800,000 of the $959,748 into FY 2013’s budget. Subsequent to the audit, Financial Management has developed a policy addressing how unspent Prop H funds are to be handled; and
4) Both the Police Department and the Fire Department intend to use their Prop H resources to continue funding certain designated public safety positions.
We also noted that since the inception of Prop H in June 2007 through September 30, 2012, annual oil production in Long Beach has decreased by 13%, thereby reducing the amount of special oil tax revenues to the City by 8%.
During FY 2012, production fell 2% resulting in 1% less Prop H revenue received by the City when compared to the prior year.
Detailed information regarding these res...
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