TITLE
Recommendation to receive and file the Proposition H Audit Report for the fiscal year ending September 30, 2022.
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 (FY), the amount of special tax revenue expended on eligible costs during the fiscal year, the amount of unspent monies 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 FY 2022, the City received $2,879,394 of Prop H revenues, a decrease of $101,307 or 3.40% from the prior year.
2. Prop H expenditures during FY 2022 totaled $2,877,138. Expenditures were $128,239 or 4.27% less compared to the prior year and were made for eligible costs as defined in the Municipal Code.
3. During FY 2022, the amount of unspent monies carried over decreased 3% from the prior fiscal year to $171,213. This amount aligns with the reserve policy's established reserve range of $150,000 to $400,000 for the fund. The projected carryover by the end of FY 2023 is expected to remain the same.
4. In FY 2023, the Fire Department intends to use their Prop H resources to continue funding public safety positions. The Police Department will use its funds to support staffing of the Mental Health Evaluation Teams.
Detailed information regarding these results is included in the attached report.
In conclusion, we express our appreciation to employees of the Police Department, Fire Department, and the Department of Financial Management for providing their time, information, and cooperation during the audit process.
TIMING CONSIDERATIONS
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