TITLE
Recommendation to receive and file the Proposition H Audit Report for the fiscal year ending September 30, 2010.
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 moneys 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 2010; the City received $3,548,514 of Prop H revenues;
2) Prop H expenditures during the fiscal year totaled $3,883,571. Expenditures were made for eligible costs as defined in the Municipal Code. However, since Prop H expenditures exceeded revenues received, there was a transfer from the General Fund in the amount of $382,915 to the Prop H Fund (SR 121);
3) The amount of unspent monies carried over into fiscal year 2011 was $198,138; 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 from June 1, 2007 through September 30, 2010, quarterly oil production in Long Beach has declined 8.5%, thereby reducing the amount of special oil tax revenues to the City. Given the volatility of oil, we encourage management to continue to monitor the revenue from this special tax.
Detailed information regarding the results discussed above is included in the attached report.
In conclusIon, we express our appreciation to employees of the Police Department, Fire Department and Department of Financial Ma...
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