HomeMy Public PortalAbout12 December 1, 2004 Budget & Implementation70x0
RIVERSIDE COUNTY TRANSPORTA TION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
AUDIT AD HOC COMMITTEE
AGENDA
TIME: 1:30 p.m.
DATE: Wednesday, December 1, 2004
LOCATION: Conference Room B
Riverside County Transportation Commission
4080 Lemon Street, 3rd Floor
Riverside, California
1. FISCAL YEAR 2003-2004 Commission Audit Results
O vervie w
This item is for the Committee to:
1) Receive and file the Fiscal Year 2003-04 Comprehensive Annual
Financial Report;
2) Receive and file the Fiscal Year 2003-04 Local Transportation
Fund Audited Financial Statements;
3) Receive and file the Fiscal Year 2003-04 State Transit
Assistance Fund Audited Financial Statements;
4) Receive and file the Fiscal Year 2003-04 Compliance Report;
5) Receive and file the Fiscal Year 2003-04 Audit Results Report;
6) Receive and file the Fiscal Year 2003-04 Agreed -Upon
Procedures Report related to the Commuter Assistance Program
incentives;
7) Receive and file the Fiscal Year 2003-04 Agreed -Upon
Procedures Report related to the Appropriation Limit Calculation;
and
8) Forward to the Commission for final action.
RIVERSIDE COUNTY TRANSPORTA TION COMMISSION
DATE:
December 1, 2004
TO:
Audit Ad Hoc Committee
FROM:
Theresia Trevino, Chief Financial Officer
THROUGH:
Eric Haley, Executive Director
SUBJECT:
Fiscal Year 2003-2004 Commission Audit Results
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Receive and file the Fiscal Year 2003-04 Comprehensive Annual
Financial Report;
2) Receive and file the Fiscal Year 2003-04 Local Transportation Fund
Audited Financial Statements;
3) Receive and file the Fiscal Year 2003-04 State Transit Assistance
Fund Audited Financial Statements;
4) Receive and file the Fiscal Year 2003-04 Compliance Report;
5) Receive and file the Fiscal Year 2003-04 Audit Results Report;
6) Receive and file the Fiscal Year 2003-04 Agreed -Upon Procedures
Report related to the Commuter Assistance Program incentives;
7) Receive and file the Fiscal Year 2003-04 Agreed -Upon Procedures
Report related to the Appropriation Limit Calculation; and
8) Forward to the Commission for final action.
BACKGROUND INFORMATION:
In April 2003, McGladrey & Pullen LLP was selected to perform an audit of the
Commission's basic financial statements included in the Comprehensive Annual
Financial Report (CAFR), the Local Transportation Fund, the State Transit
Assistance Fund, and federal awards. Additionally, it was requested to perform
agreed -upon procedures related to the annual Appropriations Limit Calculation and
the Commuter Assistance Program incentives. The audits and agreed -upon
procedures for the fiscal year ended June 30, 2004 have been completed, and all
reports have been issued by McGladrey & Pullen.
The Commission's CAFR consists of three sections: introductory, financial, and
statistical. While the introductory and statistical sections were not audited by
McGladrey & Pullen, the financial section was audited by McGladrey & Pullen. The
Commission received an unqualified opinion on its basic financial statements from
McGladrey & Pullen, which is the highest form of assurance. The audit report also
includes an explanatory paragraph related to the change in classification of the
Local Transportation Fund from a fiduciary fund to a governmental fund, because
some of the assets in the fund could be used for the Commission's commuter rail
program. Limited procedures were performed related to the required supplementary
information, including Management's Discussion and Analysis; such information
was not audited. The other supplementary information was subject to the auditing
procedures applied in the audit of the basic financial statements, and, in the opinion
of the auditors, it is fairly stated in relation to the basic financial statements.
The basic financial statements reflect the new reporting model as required by the
Governmental Accounting Standards Board (GASB) Statement No. 34, Basic
Financial Statements —and Management's Discussion and Analysis —for State and
Local Governments. The new reporting model was implemented in Fiscal Year
2001-2002; this is the third consecutive year under the new reporting model. The
basic financial statements include government -wide financial statements and fund
financial statements. Additionally, Management's Discussion and Analysis is
required and provides a narrative overview and analysis of the Commission's
financial activities for the fiscal year. Financial highlights include net assets of
$215,606,433 at June 30, 2004, representing an increase of $72,594,229 from
the prior year, and governmental funds fund balances of $245,374,366 at June
30, 2004, representing an increase of $52,184,203 from the prior year.
The audit reports related to the separately issued financial statements of the Local
Transportation Fund and the State Transit Assistance Fund also reflect unqualified
opinions from McGladrey & Pullen. These financial statements are required to be
issued separately under the Transportation Development Act; however, they are
also included in the fund financial statements in the CAFR. These reports noted no
matters considered to be a material weakness in internal control and no instances
of noncompliance.
The Compliance Report, often referred to as the Single Audit Report, includes the
reports on compliance and internal control over financial reporting and over federal
awards. These reports noted no matters considered to be material weaknesses in
internal control and no instances of noncompliance.
A management letter which usually includes recommendations for improvements
and operational efficiencies related to internal control and other matters noted
during the audit was not issued, as McGladrey & Pullen did not have any
recommendations.
The Appropriations Limit Calculation and Commuter Assistance Program reports are
based on specific procedures agreed to by the Commission and other agencies.
The auditors noted no exceptions or findings related to the procedures performed.
Professional auditing standards require the auditors to communicate to the audit
committee, or an equivalent group, to ensure that it is provided with additional
information regarding the scope and results of the audit that may assist the group
in overseeing management's financial reporting and disclosure process. Such
required communications will be discussed with the Committee in a presentation by
McGladrey & Pullen.
Attachments: Fiscal Year Ended June 30, 2004 Comprehensive Annual Financial
Report
June 30, 2004 Local Transportation Fund Financial and Compliance
Report
June 30, 2004 State Transit Assistance Fund Financial Report
June 30, 2004 Compliance Report
June 30, 2004 Agreed -Upon Procedures Report on Appropriations
Limit Calculation
June 30, 2004 Agreed -Upon Procedures Report on Commuter
Assistance Program incentives
Communications to the Audit Ad Hoc Committee