TITLE
Recommendation to receive and file the Proposition H Audit Report for the fiscal year ending September 30, 2015.
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 2015, the City received $3,784,796 of Prop H revenues, an increase of $100,868 or 3% over the prior year;
2) Prop H expenditures during the fiscal year totaled $3,724,902. Expenditures were $660,316 or 22% more compared to the prior year, and were made for eligible costs as defined in the Municipal Code
3) The amount of unspent monies carried over into fiscal year 2016 increased 5% from the prior fiscal year to $1,238,779 and was more than three times the reserve policy maximum of $400,000 for the fund. The FY 2016 Adopted Budget for Prop H includes the use of over $318,000 in reserve funds, which reduces the projected carryover by the end of FY 2016 to $920,555; however, this reserve balance is still more than double the policy maximum.
4) Both the Police Department and the Fire Department intend to use their Prop H resources to continue funding certain designated public safety positions.
Subsequent to the reporting period that ended on September 30, 2015, the price of oil per barrel significantly dropped. At the time of print, January 27, 2016, the price per barrel was $32.30. According to the Municipal Code,...
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