TITLE
Recommendation to receive and file the Proposition H Audit Report for fiscal year ending September 30, 2008.
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 amount of tax revenues collected, determine whether funds were expended on purposes set forth in the Municipal Code, report on the status of any projects and programs funded by Prop H, and report the amount of unspent monies on deposit that were carried-over into the current fiscal year.
Our audit reveals that the City received $3,677,451 of Prop H revenues during FY 2008. Since the end of FY08, the price of oil has continued its dramatic fall, from a monthly average of $133.93 in July 2008 to a monthly average of $41.02 in December 2008. If the price of oil stagnates or continues to fall, future Prop H funds could decrease due to decreased production or cease for months in which the per barrel price falls below $20.
Our audit also notes that there was $3,401,137 in combined Prop H expenditures by the Police and Fire Departments during the fiscal year. Detailed information regarding these expenditures and planned future uses for Prop H funds are included in the attached report.
In conclusion, we express our appreciation to employees of the Police Department, Fire Department and Department of Financial Management for providing their time, information, and cooperation during the audit process.
TIMING CONSIDERATIONS
Action by the City Council is. not time sensitive.
FISCAL IMPACT
Approving this action would have no fiscal impact.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LAURA L. DOUD
CITY AUDITOR