HomeMy Public PortalAbout09_7G_LACMTA_AUDIT MTA (PROP A C MEASURE R M TDA) 3-2-21ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: March 2, 2021
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
Via: Susan Paragas, Administrative Services Director
By: Lee Ma, Accountant
SUBJECT: AUDIT REPORTS FOR PROPOSITION A, PROPOSITION C, MEASURE R,
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 AND MEASURE M
FOR FISCAL YEAR (FY) 2019-20
RECOMMENDATION:
The City Council is requested to receive and file FY 2019-20 Proposition A, Proposition
C, Measure R, Transportation Development Act Article 3 and Measure M Audit Reports.
BACKGROUND:
1.Effective July 1, 1982, Proposition A, passed by the electorate, increased the County
Sales Tax by one-half cent to provide for public transportation projects. Twenty-five
percent of these funds are allocated to municipalities based on population. Cities
have the year of receipt plus three additional years to expend the funds.
2.Effective November 6, 1990, Proposition C, again passed by the electorate,
increased the County Sales Tax by one-half cent to provide funds for public
transportation projects. Twenty percent of these funds are allocated to municipalities
based on population. Cities have the year of receipt plus three additional years to
expend the funds.
3.Effective November 4, 2008, Measure R, approved by the electorate, increased the
County Sales Tax by one-half cent to provide for public transportation projects.
Fifteen percent of these funds are allocated to municipalities based on a per capita
basis. Cities have the year of receipt plus three additional years to expend the funds.
4.Effective November 8, 2016, Measure M, approved by the electorate, increased the
County Sales Tax by one-half cent to provide for public transportation projects.
Seventeen percent of these funds are allocated to municipalities based on a per
capita basis. Cities have the year of receipt plus three additional years to expend
the funds.
AGENDA
ITEM 7.G.
City Council
March 2, 2021
Page 2 of 3
5. In September 2020, the firm of Simpson & Simpson LLP conducted field work for
the annual audits of Proposition A (Prop A), Proposition C (Prop C), Measure R
(Meas R), Transportation Development Act Article 3 (TDA) and Measure M (Meas
M). A separate audit of the City of Temple City’s Prop A, Prop C, Meas R, TDA and
Meas R is required on an annual basis by an independent audit firm (Simpson &
Simpson LLP) contracted and hired by the Los Angeles County Metropolitan
Transportation Authority.
6. On February 8, 2021, the City received the final audit (Attachment “A”) from Simpson
& Simpson LLP.
ANALYSIS:
The City is in compliance with all requirements of the Los Angeles County Metropolitan
Transportation Authority’s (LACMTA) Funding and Allocation Guidelines. In the auditor’s
opinion, the financial statements of Prop A, Prop C, Meas R, TDA and Meas M were
presented fairly and in accordance with accounting principles generally accepted in the
United States of America.
The following reports are presented for your review.
Proposition A
During FY 2019-20, the City received a total of $748,838 in revenues for Prop A funds
which include bus pass sales revenues of $27,365 and interest income of $17,770. The
total expenditures for FY 2019-20 were $1,253,695. The City of Temple City utilized Prop
A funds for the following items:
• Special Service Paratransit;
• Recreation Transit;
• Bus Shelter Maintenance;
• Bus Pass Subsidy;
• Portion of San Gabriel Valley Council of Governments Membership (60%);
• Direct Administration; and
• Proposition A Fund Exchange with Foothill Transit.
Proposition C
During FY 2019-20, the City received $611,390 of revenues for Prop C which also include
interest income of $27,667. FY 2019-20 expenditures for Prop C were $437,562 for the
Las Tunas Drive Resurfacing Project.
Measure R
The City received a total of $454,681 in revenues for Meas R funds which include interest
City Council
March 2, 2021
Page 3 of 3
income of $17,515. FY 2019-20 expenditures for Meas R were $12,229 for the Pavement
Management Street Resurfacing Project.
Transportation Development Act Article 3
TDA provides for construction of pedestrian and bicycle facilities including ADA
wheelchair ramps. FY 2019-20 expenditures for TDA were $32,023 for the Sidewalk and
Curb Ramps ADA Improvement Project and $23,000 for the Las Tunas Drive Resurfacing
Project. The City received the full reimbursable amount of $55,023 for these two projects.
Measure M
The City received a total of $504,834 in revenues for Meas M funds which also includes
interest income of $12,890. The expenditures for Meas M were $155,178 for the
Pavement Management Street Resurfacing Project in FY 2019-20.
Auditor Findings
The auditors identified three deficiencies in internal control. Two of the findings were
related to missed submission deadlines of required forms that were because of the timing
of an employee turnover. These responsibilities have now been re-assigned to another
employee who will ensure the deadlines are met.
The other finding is the City expenditures prior to the approval from LACMTA for the Prop
A Fund Exchange with Foothill Transit. The amount was subsequently approved by
LACMTA.
CITY STRATEGIC GOALS:
Receiving and filing the LACMTA audit report will further the City’s Strategic Goal to
promote Good Governance.
.
FISCAL IMPACT :
This agenda item does not have a fiscal impact on the FY 2020-21 City Budget.
ATTACHMENT:
A.Annual Financial Report of Prop A, Prop C, Meas R, TDA and Meas M Funds
Simpson & Simpson, LLP
Certified Public Accountants
CITY OF TEMPLE CITY
ANNUAL FINANCIAL REPORT OF THE
PROPOSITION A LOCAL RETURN FUND
PROPOSITION C LOCAL RETURN FUND
MEASURE R LOCAL RETURN FUND
MEASURE M LOCAL RETURN FUND
TRANSPORTATION DEVELOPMENT ACT
ARTICLE 3 FUND
FOR THE FISCAL YEARS ENDED
JUNE 30, 2020 AND 2019
ATTACHMENT A
i
CITY OF TEMPLE CITY
TABLE OF CONTENTS
FINANCIAL SECTION PAGE
Independent Auditor’s Report 1
Proposition A Local Return Fund:
Financial Statements:
Balance Sheets 3
Statements of Revenues, Expenditures and Changes in Fund Balance 4
Supplementary Information:
Schedule of Expenditures – Actual and Metro Approved Project Budget 5
Schedule of Capital Assets 6
Proposition C Local Return Fund:
Financial Statements:
Balance Sheets 7
Statements of Revenues, Expenditures and Changes in Fund Balance 8
Supplementary Information:
Schedule of Expenditures –Actual and Metro Approved Project Budget 9
Schedule of Capital Assets 10
Measure R Local Return Fund:
Financial Statements:
Balance Sheets 11
Statements of Revenues, Expenditures and Changes in Fund Balance 12
Supplementary Information:
Schedule of Expenditures –Actual and Metro Approved Project Budget 13
Schedule of Capital Assets 14
Measure M Local Return Fund:
Financial Statements:
Balance Sheets 15
Statements of Revenues, Expenditures and Changes in Fund Balance 16
Supplementary Information:
Schedule of Expenditures – Actual and Metro Approved Project Budget 17
Schedule of Capital Assets 18
Transportation Development Act Article 3 Fund:
Financial Statements:
Balance Sheets 19
Statements of Revenues, Expenditures and Changes in Fund Balance 20
Supplementary Information:
Schedule of Transportation Development Act Allocation for Specific Projects 21
Notes to Financial Statements 22
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements 27
Performed in Accordance with Government Auditing Standards
ATTACHMENT A
ii
CITY OF TEMPLE CITY
TABLE OF CONTENTS
(Continued)
COMPLIANCE SECTION
Independent Auditor’s Report on Compliance 29
Compliance Matrix 32
Schedule of Findings and Recommendations 36
EXIT CONFERENCE 39
ATTACHMENT A
FINANCIAL SECTION
ATTACHMENT A
1
Independent Auditor’s Report
To the Honorable Members of the City Council of the
City of Temple City, California and the
Los Angeles County Metropolitan Transportation Authority
Report on the Financial Statements
We have audited the accompanying financial statements of the Proposition A Local Return Fund (PALRF),
Proposition C Local Return Fund (PCLRF), Measure R Local Return Fund (MRLRF), Measure M Local
Return Fund (MMLRF), and Transportation Development Act Article 3 Fund (TDAA3F) (collectively, the
Funds), of the City of Temple City, California (the City) as of and for the years ended June 30, 2020 and
2019, and the related notes to the financial statements, as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We conducted
our audits in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards,issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
U.S. BANK TOWER
633 WEST 5TH STREET, SUITE 3320
LOS ANGELES, CA 90071
___________________________________________________________________________________________________________________ (213) 736-6664 TELEPHONE
(213) 736-6692 FAX
www.simpsonandsimpsoncpas.com
SIMPSON & SIMPSON
CERTIFIED PUBLIC ACCOUNTANTS
FOUNDING PARTNERS
BRAINARD C. SIMPSON, CPA
MELBA W. SIMPSON, CPA
ATTACHMENT A
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the PALRF, PCLRF, MRLRF, MMLRFand TDAA3F of the City of Temple
City, California, as of June 30, 2020 and 2019, and the respective changes in their financial position for the
years then ended in accordance with accounting principles generally accepted in the United States of
America.
Emphasis of Matter
As discussed in Note 2, the financial statements present only the PALRF, PCLRF, MRLRF, MMLRF, and
TDAA3F of the City and do not purport to, and do not, present fairly the financial position of the City of
Temple City, California, as of June 30, 2020 and 2019, and the changes in its financial position for the years
then ended in conformity with accounting principles generally accepted in the United States of America.
Our opinion is not modified with respect to this matter.
Supplementary Information
Our audits were conducted for the purpose of forming opinions on each of the Funds’ financial statements.
The accompanying supplementary information as listed in the table of contents is presented for purposes of
additional analysis and is not a required part of the financial statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the Funds’ financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the Funds’ financial statements or
to the Funds’ financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplementary
information is fairly stated, in all material respects, in relation to each of the Funds’ financial statements as
a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have issued our report dated October 12, 2020, on
our consideration of the City’s internal control over the Funds’ financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over the Funds’ financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over the Funds’ financial reporting or on compliance. That report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the City’s internal control over the
Funds’ financial reporting and compliance.
Los Angeles, California
October 12, 2020
ATTACHMENT A
2020 2019
Cash and investments $ 1,433,938 $ 1,238,184
Prepaid expenditures 10,838 -
Other receivable 7,227 7,227
Total assets $ 1,452,003 $ 1,245,411
Liabilities
Accounts payable $ 775,495 $ 64,046
Total liabilities 775,495 64,046
Fund Balance
Restricted 676,508 1,181,365
Total fund balance 676,508 1,181,365
Total liabilities and fund balance $ 1,452,003 $ 1,245,411
LIABILITIES AND FUND BALANCE
CITY OF TEMPLE CITY
PROPOSITION A LOCAL RETURN FUND
BALANCE SHEETS
June 30
ASSETS
The accompanying notes are an integral part of the financial statements.
3
ATTACHMENT A
2020 2019
REVENUES
Proposition A $ 703,703 $ 730,549
Project generated revenue (Note 8)27,365 43,916
Interest income 17,770 14,103
Total revenues 748,838 788,568
EXPENDITURES
Various projects 1,253,695 497,638
Total expenditures 1,253,695 497,638
Excess (deficiency) of revenues over expenditures (504,857) 290,930
Fund balance at beginning of year 1,181,365 890,435
Fund balance at end of year $676,508 $1,181,365
For the Fiscal Years Ended June 30
PROPOSITION A LOCAL RETURN FUND
STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
CITY OF TEMPLE CITY
The accompanying notes are an integral part of the financial statements.
4
ATTACHMENT A
Variance
Project Metro Favorable 2019
Code Project Name Budget Actual (Unfavorable) Actual
130-01 Special Service Paratransit $ - $ - $ - $ 266,631
130-05 Dial-A-Ride 525,000 349,542 175,458 -
140-02 Recreational Transit 55,000 29,879 25,121 61,873
170-04 Bus Shelter Maintenance 14,000 9,000 5,000 12,525
250-03 User-Side Subsidy 61,480 36,621 24,859 61,974
270-02 San Gabriel Valley Council of
Governments Membership 11,000 11,000 - 10,880
410-00 Proposition A Fund Exchange with
Foothill Transit (Note 9)750,000 750,000 - -
480-05 Direct Administration 73,255 67,653 5,602 83,755
$1,489,735 $1,253,695 $236,040 $497,638 Total expenditures
ACTUAL AND METRO APPROVED PROJECT BUDGET
For the Fiscal Year Ended June 30, 2020
(With Comparative Actual Amount for the Fiscal Year Ended June 30, 2019)
CITY OF TEMPLE CITY
PROPOSITION A LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES
2020
The accompanying notes are an integral part of the financial statements.
5
ATTACHMENT A
Date Balance Balance
Acquired Description 7/1/2019 Additions Deletions 6/30/2020
None $- $- $ - $-
Total $- $- $- $-
SCHEDULE OF CAPITAL ASSETS
June 30, 2020
CITY OF TEMPLE CITY
PROPOSITION A LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
The accompanying notes are an integral part of the financial statements.
6
ATTACHMENT A
2020 2019
Cash and investments $ 1,933,412 $ 1,759,584
Total assets $ 1,933,412 $ 1,759,584
Liabilities
Accounts payable $- $-
Total liabilities - -
Fund Balance
Restricted 1,933,412 1,759,584
Total fund balance 1,933,412 1,759,584
Total liabilities and fund balance $ 1,933,412 $ 1,759,584
PROPOSITION C LOCAL RETURN FUND
BALANCE SHEETS
CITY OF TEMPLE CITY
ASSETS
LIABILITIES AND FUND BALANCE
June 30
The accompanying notes are an integral part of the financial statements.
7
ATTACHMENT A
2020 2019
REVENUES
Proposition C $ 583,723 $ 605,970
Interest income 27,667 26,046
Total revenues 611,390 632,016
EXPENDITURES
Various projects 437,562 260,000
Total expenditures 437,562 260,000
173,828 372,016
Fund balance at beginning of year 1,759,584 1,387,568
Fund balance at end of year $1,933,412 $1,759,584
Excess of revenues over expenditures
CITY OF TEMPLE CITY
PROPOSITION C LOCAL RETURN FUND
STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Fiscal Years Ended June 30
The accompanying notes are an integral part of the financial statements.
8
ATTACHMENT A
Variance
Project Metro Favorable 2019
Code Project Name Budget Actual (Unfavorable) Actual
130-05 Dial-A-Ride $ - $ - $ - $ 260,000
440-01 Las Tunas Drive Resurfacing 1,200,000 437,562 762,438 -
$1,200,000 $437,562 $762,438 $260,000
(With Comparative Actual Amount for the Fiscal Year Ended June 30, 2019)
2020
Total expenditures
CITY OF TEMPLE CITY
PROPOSITION C LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES
ACTUAL AND METRO APPROVED PROJECT BUDGET
For the Fiscal Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
9
ATTACHMENT A
Date Balance Balance
Acquired Description 7/1/2019 Additions Deletions 6/30/2020
None $ - $ - $ - $ -
Total $- $- $- $-
SCHEDULE OF CAPITAL ASSETS
June 30, 2020
CITY OF TEMPLE CITY
PROPOSITION C LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
The accompanying notes are an integral part of the financial statements.
10
ATTACHMENT A
2020 2019
Cash and investments $ 1,485,561 $ 1,043,109
Total assets $ 1,485,561 $ 1,043,109
Liabilities
Accounts payable $- $-
Total liabilities --
Fund Balance
Restricted 1,485,561 1,043,109
Total fund balance 1,485,561 1,043,109
Total liabilities and fund balance $1,485,561 $1,043,109
LIABILITIES AND FUND BALANCE
CITY OF TEMPLE CITY
MEASURE R LOCAL RETURN FUND
BALANCE SHEETS
June 30
ASSETS
The accompanying notes are an integral part of the financial statements.
11
ATTACHMENT A
2020 2019
REVENUES
Measure R $ 437,166 $ 454,608
Interest income 17,515 12,531
Total revenues 454,681 467,139
EXPENDITURES
Pavement Management: Street Resurfacing 12,229 -
Total expenditures 12,229 -
Excess of revenues over expenditures 442,452 467,139
Fund balance at beginning of year 1,043,109 575,970
Fund balance at end of year $1,485,561 $1,043,109
CITY OF TEMPLE CITY
MEASURE R LOCAL RETURN FUND
STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Fiscal Years Ended June 30
The accompanying notes are an integral part of the financial statements.
12
ATTACHMENT A
Variance
Project Metro Favorable 2019
Code Project Name Budget Actual (Unfavorable) Actual
1.05 Pavement Management: Street
Resurfacing $750,000 $12,229 $737,771 $-
$ 750,000 $12,229 $737,771 $-
(With Comparative Actual Amount for the Fiscal Year Ended June 30, 2019)
2020
Total expenditures
CITY OF TEMPLE CITY
MEASURE R LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES
ACTUAL AND METRO APPROVED PROJECT BUDGET
For the Fiscal Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
13
ATTACHMENT A
Date Balance Balance
Acquired Description 7/1/2019 Additions Deletions 6/30/2020
None $ - $ - $ - $ -
Total $- $- $- $-
CITY OF TEMPLE CITY
MEASURE R LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF CAPITAL ASSETS
June 30, 2020
The accompanying notes are an integral part of the financial statements.
14
ATTACHMENT A
2020 2019
Cash and investments $ 1,093,879 $ 673,046
Due from Metro -41,376
Total assets $ 1,093,879 $ 714,422
Liabilities
Accounts payable $ 30,075 $ 274
Total liabilities 30,075 274
Fund Balance
Restricted 1,063,804 714,148
Total fund balance 1,063,804 714,148
Total liabilities and fund balance $1,093,879 $714,422
LIABILITIES AND FUND BALANCE
CITY OF TEMPLE CITY
MEASURE M LOCAL RETURN FUND
BALANCE SHEETS
June 30
ASSETS
The accompanying notes are an integral part of the financial statements.
15
ATTACHMENT A
2020 2019
REVENUES
Measure M $ 491,944 $ 512,161
Interest income 12,890 7,381
Total revenues 504,834 519,542
EXPENDITURES
Pavement Management: Street Resurfacing 155,178 3,605
Total expenditures 155,178 3,605
Excess of revenues over expenditures 349,656 515,937
Fund balance at beginning of year 714,148 198,211
Fund balance at end of year $1,063,804 $714,148
CITY OF TEMPLE CITY
MEASURE M LOCAL RETURN FUND
STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Fiscal Years Ended June 30
The accompanying notes are an integral part of the financial statements.
16
ATTACHMENT A
Variance
Project Metro Favorable 2019
Code Project Name Budget Actual (Unfavorable) Actual
1.05 Pavement Management: Street
Resurfacing $ 400,000 $ 155,178 $ 244,822 $ 3,605
1.05 Las Tunas Drive Resurfacing 400,000 - 400,000 -
$800,000 $155,178 $644,822 $3,605
2020
Total expenditures
CITY OF TEMPLE CITY
MEASURE M LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES
ACTUAL AND METRO APPROVED PROJECT BUDGET
For the Fiscal Year Ended June 30, 2020
(With Comparative Actual Amount for the Fiscal Year Ended June 30, 2019)
The accompanying notes are an integral part of the financial statements.
17
ATTACHMENT A
Date Balance Balance
Acquired Description 7/1/2019 Additions Deletions 6/30/2020
None $ - $ - $ - $ -
Total $- $- $- $-
CITY OF TEMPLE CITY
MEASURE M LOCAL RETURN FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF CAPITAL ASSETS
June 30, 2020
The accompanying notes are an integral part of the financial statements.
18
ATTACHMENT A
2020 2019
Due from Metro $ 55,023 $-
Total assets $ 55,023 $-
Liabilities
Due to General Fund $ 55,023 $-
Total liabilities 55,023 -
Fund Balance
Restricted - -
Total fund balance - -
Total liabilities and fund balance $ 55,023 $-
LIABILITIES AND FUND BALANCE
CITY OF TEMPLE CITY
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUND
(PURSUANT TO PUBLIC UTILITIES CODE SECTION 99234)
BALANCE SHEETS
June 30
ASSETS
The accompanying notes are an integral part of the financial statements.
19
ATTACHMENT A
2020 2019
REVENUES
TDA 3 $ 55,023 $-
Interest income - 1,006
Total revenues 55,023 1,006
EXPENDITURES
Various projects 55,023 -
Total expenditures 55,023 -
OTHER FINANCING USE
Funds returned to Metro - (63,357)
Total other financing use - (63,357)
- (62,351)
Fund balance at beginning of year - 62,351
Fund balance at end of year $- $-
CITY OF TEMPLE CITY
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUND
STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Fiscal Years Ended June 30
Deficiency of revenues under expenditures
and other financing use
The accompanying notes are an integral part of the financial statements.
20
ATTACHMENT A
Program Unexpended Project
Project Description Year Allocations Expenditures Allocations Status
Local allocations
2019-20 $32,023 $ 32,023 $- Completed
2019-20 23,000 23,000 - On-going
Total $55,023 $ 55,023 $-
Interest income -
Fund balance at beginning of year -
Fund balance at end of year $-
CITY OF TEMPLE CITY
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUND
SUPPLEMENTARY INFORMATION
SCHEDULE OF TRANSPORTATION DEVELOPMENT ACT
ALLOCATION FOR SPECIFIC PROJECTS
For the Fiscal Year Ended June 30, 2020
Las Tunas Drive Resurfacing
Project
Sidewalks and Curb Ramps ADA
Improvements
The accompanying notes are an integral part of the financial statements.
21
ATTACHMENT A
CITY OF TEMPLE CITY
NOTES TO FINANCIAL STATEMENTS
For the Fiscal Years Ended June 30, 2020 and 2019
22
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fund Accounting
The operations of the Proposition A Local Return Fund (PALRF), Proposition C Local Return Fund
(PCLRF), Measure R Local Return Fund (MRLRF), Measure M Local Return Fund (MMLRF), and
Transportation Development Act Article 3 Fund (TDAA3F) (collectively, the Funds) are accounted for in
separate sets of self-balancing accounts that comprise their assets, liabilities, fund balance, revenues and
expenditures.
PALRF and PCLRF represent 25% and 20%, respectively, of the ½ cent Proposition A and ½ cent
Proposition C sales taxes which are distributed to the jurisdictions within Los Angeles County based on
population and must be used exclusively for transportation related programs and projects.
MRLRF is derived from 15% of a county-wide ½ cent sales tax which is distributed to the jurisdictions
within Los Angeles County based on a per capita basis and must be used exclusively for transportation
purposes.
MMLRF is derived from 17% of a county-wide ½ cent sales tax which is distributed to the jurisdictions
within Los Angeles County based on a per capita basis and must be used exclusively for transportation
purposes.
TDAA3F is a Special Revenue Fund that accounts for the City’s share of the Transportation Development
Act Article 3 allocations which are legally restricted for specific purposes.
Basis of Accounting and Measurement Focus
PALRF, PCLRF, MRLRF, MMLRF, and TDAA3F are accounted for using the modified accrual basis of
accounting whereby revenues are recognized when they become both measurable and available to finance
expenditures of the current period and expenditures are generally recognized when the related fund
liabilities are incurred.
Special Revenue Funds are reported on the spending or “financial flow” measurement focus. This means
that generally only current assets, current liabilities and deferred inflows and outflows of resources are
included on their balance sheets. The statement of revenues, expenditures and changes in fund balance for
Special Revenue Funds generally present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
Budgets and Budgetary Accounting
The budgeted amounts presented in this report for comparison to the actual amounts are presented in
accordance with accounting principles generally accepted in the United States of America.
ATTACHMENT A
CITY OF TEMPLE CITY
NOTES TO FINANCIAL STATEMENTS
For the Fiscal Years Ended June 30, 2020 and 2019
(Continued)
23
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fair Value Measurement
In accordance with Government Accounting Standard Board (GASB) Statement No. 72, Fair Value
Measurement and Application, which became effective for the fiscal year ended June 30, 2016, the City
categorizes its fair value measurement within the fair value hierarchy that is based on the valuation inputs
used to measure the fair value of the investment. Level 1 inputs are quoted prices in active markets for
identical investments; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs. Accordingly, the City reports its investment at fair value and recognizes unrealized
gain (loss) on investments.
Refer to City’s 2020 Comprehensive Annual Financial Report for detailed disclosures regarding the City’s
investment policy and fair value measurement.
Fund Balance Reporting
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes
the fund balance classifications that comprise a hierarchy based primarily on the extent to which a
government is bound to observe constraints imposed upon the use of resources reported in governmental
funds.
The PALRF, PCLRF, MRLRF, MMLRF, and TDAA3F report the following fund balance classification as
of June 30, 2020:
imposed by
providers, such as creditors, or amounts constrained due to constitutional provisions or enabling
legislation. The uses of the funds’ remaining fund balances are restricted for projects approved by
Los Angeles County Metropolitan Transportation Authority (Metro).
Information regarding the fund balance reporting policy adopted by the City is described in Note 1 to the
City’s Comprehensive Annual Financial Report.
NOTE 2 – ANNUAL FINANCIAL STATEMENTS
The financial statements reflect only the financial position and results of operations of the PALRF, PCLRF,
MRLRF, MMLRF, and TDAA3F and their compliance with the Proposition A and Proposition C Local
Return Program Guidelines, Measure R Local Return Program Guidelines, Measure M Local Return
Program Guidelines, Transportation Development Act Article 3 and the Los Angeles County Metropolitan
Transportation Authority Funding and Allocation Guidelines for Transportation Development Act Article
3 Bicycle and Pedestrian Funds.
ATTACHMENT A
CITY OF TEMPLE CITY
NOTES TO FINANCIAL STATEMENTS
For the Fiscal Years Ended June 30, 2020 and 2019
(Continued)
24
NOTE 3 - PROPOSITION A AND PROPOSITION C LOCAL RETURN COMPLIANCE
REQUIREMENTS
In accordance with Proposition A and Proposition C Local Return Program Guidelines, funds received
pursuant to these guidelines may only be used for Proposition A and Proposition C Local Return approved
programs. See accompanying Compliance Matrix.
NOTE 4 – MEASURE R LOCAL RETURN COMPLIANCE REQUIREMENTS
In accordance with Measure R Local Return Program Guidelines, funds received pursuant to these
guidelines may only be used for Measure R Local Return approved programs. See accompanying
Compliance Matrix.
NOTE 5 – MEASURE M LOCAL RETURN COMPLIANCE REQUIREMENTS
On June 23, 2016, the Metro Board of Directors approved the Los Angeles County Traffic improvement
Plan Ordinance, known as Measure M. In accordance with Measure M Local Return Program Guidelines,
funds received pursuant to these guidelines may only be used for Measure M Local Return approved
programs. See accompanying Compliance Matrix.
NOTE 6 – TRANSPORTATION DEVELOPMENT ACT COMPLIANCE REQUIREMENTS
In accordance with Public Utilities Code Section 99234, funds received pursuant to this Code’s section may
only be used for activities relating to pedestrians and bicycle facilities. See accompanying Compliance
Matrix.
NOTE 7 – CASH AND INVESTMENTS
The PALRF, PCLRF, MRLRF, MMLRF, and TDAA3F’s cash and investment balances were pooled with
various other City funds for deposit and investment purposes. The share of each fund in the pooled cash
account was separately maintained and interest income was apportioned to the participating funds based on
the relationship of their average quarterly balances to the total of the pooled cash and investments.
NOTE 8 – PROJECT GENERATED REVENUE - PALRF
Project generated revenue for the years ended June 30, 2020 and 2019 consisted of the following:
2020 2019
Bus Pass Sales $ 27,365 $ 43,916
Total $ 27,365 $ 43,916
ATTACHMENT A
CITY OF TEMPLE CITY
NOTES TO FINANCIAL STATEMENTS
For the Fiscal Years Ended June 30, 2020 and 2019
(Continued)
25
NOTE 9 – PROPOSITION A FUND EXCHANGE WITH FOOTHILL TRANSIT - PALRF
In fiscal year 2020, the City entered into an agreement on May 19, 2020 with Foothill Transit to exchange
$1 of Proposition A Local Return Funds for every $.75 (or 75 cents) of General Fund. Accordingly, the
City received $562,500 of Foothill Transit’s General Funds on July 8, 2020 and assigned $750,000 of its
Proposition A Local Return Funds to Foothill Transit on July 7, 2020.
NOTE 10 – TRANSPORTATION DEVELOPMENT ACT FUND REVENUE ALLOCATION
The revenue allocation for the years ended June 30, 2020 and 2019 consisted of the following:
2020 2019
FY 2015-16 allocation $ 23,034 $-
FY 2016-17 allocation 24,044 -
FY 2017-18 allocation 7,945 -
Total payment requested $ 55,023 $ -
NOTE 11 – TRANSPORTATION DEVELOPMENT ACT FUNDS RESERVED
In accordance with TDA Article 3 (SB821) Guidelines, funds not spent during the fiscal year have been
placed on reserve in the Local Transportation Fund (LTF) account with the County Auditor-Controller to
be drawn down whenever the funds become eligible for a specific project and an approved drawdown
request is received by Metro. As of June 30, 2020 and 2019, the City has funds on reserve as follows:
2020 2019
FY 2015-16 allocation $- $ 23,034
FY 2016-17 allocation
-24,044
FY 2017-18 allocation 15,857 23,802
FY 2018-19 allocation 24,676 24,676
FY 2019-20 allocation 26,199 -
Available reserve balance $ 66,732 $ 95,556
ATTACHMENT A
CITY OF TEMPLE CITY
NOTES TO FINANCIAL STATEMENTS
For the Fiscal Years Ended June 30, 2020 and 2019
(Continued)
26
NOTE 12 – SUBSEQUENT EVENTS
On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health
Emergency of International Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken
around the world to help mitigate the spread of the coronavirus include restrictions on travel, and
quarantines in certain areas, and forced closures for certain types of public places and businesses.
The coronavirus and actions taken to mitigate it have had and are expected to continue to have an adverse
impact on the economies and financial markets of many countries. To date, it is unknown how long these
conditions will last and what the complete financial effect will be to businesses and other affected
organizations, including local governmental entities.
The City has evaluated subsequent events through October 12, 2020, the date the financial statements were
available to be issued and concluded no other events have occurred that require disclosure or adjustments
to the financial statements.
ATTACHMENT A
27
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Honorable Members of the City Council of the
City of Temple City, California and the
Los Angeles County Metropolitan Transit Authority
We have audited, in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the Proposition A Local Return Fund,
Proposition C Local Return Fund, Measure R Local Return Fund, Measure M Local Return Fund, and
Transportation Development Act Article 3 Fund (collectively, the Funds) of the City of Temple City,
California (the City), as of and for the year ended June 30, 2020, and the related notes to the financial
statements, and have issued our report thereon dated October 12, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the Funds’ financial statements, we considered the City’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the Funds’ financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
U.S. BANK TOWER
633 WEST 5TH STREET, SUITE 3320
LOS ANGELES, CA 90071
___________________________________________________________________________________________________________________ (213) 736-6664 TELEPHONE
(213) 736-6692 FAX
www.simpsonandsimpsoncpas.com
SIMPSON & SIMPSON
CERTIFIED PUBLIC ACCOUNTANTS
FOUNDING PARTNERS
BRAINARD C. SIMPSON, CPA
MELBA W. SIMPSON, CPA
ATTACHMENT A
28
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s Proposition A Local Return Fund,
Proposition C Local Return Fund, Measure R Local Return Fund, Measure M Local Return Fund and
Transportation Development Act Article 3 Fund financial statements are free from material misstatement,
we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audits, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Los Angeles, California
October 12, 2020
ATTACHMENT A
COMPLIANCE SECTION
ATTACHMENT A
29
Independent Auditor’s Report on Compliance
To the Honorable Members of the City Council of the
City of Temple City, California and the
Los Angeles County Metropolitan Transit Authority
Report on Compliance
We have audited the compliance of the City of Temple City, California (the City) with the Proposition A
and Proposition C Local Return Guidelines, Measure R Local Return Guidelines, Measure M Local Return
Guidelines, Transportation Development Act Article 3, and the Los Angeles County Metropolitan
Transportation Authority’s Funding and Allocation Guidelines for the Transportation Development Act
Article 3 Bicycle and Pedestrian Funds (collectively, the Guidelines) for the year ended June 30, 2020.
Management’s Responsibility
Management is responsible for the City’s compliance with the Guidelines.
Auditor’s Responsibility
Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our
audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States, and the Guidelines referred to in the preceding paragraph.
Those standards and the Guidelines require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements referred to above that
could have a direct and material effect on Proposition A Local Return Program, Proposition C Local Return
Program, Measure R Local Return Program, Measure M Local Return Program, and Transportation
Development Act Article 3 Program occurred. An audit includes examining, on a test basis, evidence about
the City’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance with the Guidelines.
However, our audit does not provide a legal determination of the City’s compliance with the Guidelines.
Opinion on Each Local Return Program and Transportation Development Act Article 3
In our opinion, except as noted in the Compliance Matrix and the Schedule of Findings and
Recommendations, the City complied, in all material respects, with the compliance requirements of the
Guidelines for the year ended June 30, 2020.
U.S. BANK TOWER
633 WEST 5TH STREET, SUITE 3320
LOS ANGELES, CA 90071
___________________________________________________________________________________________________________________ (213) 736-6664 TELEPHONE
(213) 736-6692 FAX
www.simpsonandsimpsoncpas.com
SIMPSON & SIMPSON
CERTIFIED PUBLIC ACCOUNTANTS
FOUNDING PARTNERS
BRAINARD C. SIMPSON, CPA
MELBA W. SIMPSON, CPA
ATTACHMENT A
30
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be
reported in accordance with the Guidelines and which are described in the accompanying Schedule of
Findings and Recommendations as Finding Nos. 2020-001, 2020-002, 2020-003. Our opinion on each
local return program and Transportation Development Act Article 3 program is not modified with respect
to these matters.
The City’s responses to the noncompliance findings identified in our audit are described in the
accompanying Schedule of Findings and Recommendations. The City’s responses were not subjected to
the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
responses.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the Guidelines referred to above. In planning and performing our audit of compliance, we
considered the City’s internal control over compliance to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing an opinion on compliance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we
do not express an opinion on the effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance under the Guidelines on a timely basis. A
material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material noncompliance
under the Guidelines will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with the Guidelines that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that we consider to be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However, we
did identify deficiencies in internal control over compliance described in the accompanying Schedule of
Findings and Recommendations as Finding Nos. 2020-002 and 2020-003 that we consider to be significant
deficiencies.
The City’s responses to the internal control over compliance findings identified in our audit are described
in the accompanying Schedule of Findings and Recommendations. The City’s responses were not subjected
to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on
the responses.
ATTACHMENT A
31
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the
Guidelines. Accordingly, this report is not suitable for any other purpose.
Los Angeles, California
October 12, 2020
ATTACHMENT A
CITY OF TEMPLE CITY
COMPLIANCE MATRIX
Year Ended June 30, 2020
32
Compliance Requirement In Compliance Questioned
Costs
If no, provide details
and management
response.
Yes No N/A
A. Proposition A and Proposition C Local Return Funds
1. Uses the State Controller’s Uniform System of
Accounts and Records.
X None
2. Timely use of funds.X None
3. Funds expended were approved and have not
been substituted for property tax.
X None See Finding No. 2020-
001 on Schedule of
Findings and
Recommendations.
4. Expenditures that exceeded 25% of approved
project budget have approved amended project
Description Form (Form A).
X None
5. Administrative expenses are within the 20% cap
of the total annual Local Return Expenditures.
X None
6. All on-going and carryover projects were
reported in Form B.
X None
7. Annual Project Summary Report (Form B) was
submitted on time.
X None
8. Annual Expenditure Report (Form C) was
submitted on time.
X None
9. Cash or cash equivalents are maintained.X None
10. Accounting procedures, record keeping and
documentation are adequate.
X None
11. Pavement Management System (PMS) is in place
and being used for Street Maintenance or
Improvement Projects Expenditures.
X None
12. Local Return Account is credited for
reimbursable expenditures.
X None
13. Self-Certification was completed and submitted
for Intelligent Transportation Systems projects or
elements.
X None
14. Signed Assurances and Understandings form was
on file.
X None
15. Recreational transit form was submitted on time. X None
ATTACHMENT A
CITY OF TEMPLE CITY
COMPLIANCE MATRIX
Year Ended June 30, 2020
(Continued)
33
Compliance Requirement In Compliance Questioned
Costs
If no, provide details
and management
response.
Yes No N/A
B. Measure R Local Return Fund
1. Funds were expended for transportation
purposes.
X None
2. Funds were used to augment, not supplant,
existing local revenues being used for
transportation purposes unless there is a funding
shortfall.
X None
3. Signed Assurances and Understandings form
was on file.
X None
4. Separate Measure R Local Return Account was
established.
X None
5. Revenues received including allocations, project
generated revenues and interest income was
properly credited to the Measure R Local Return
Account.
X None
6. Funds were expended with Metro’s approval. X None
7. Expenditure Plan (Form One) was submitted on
time.
X None See Finding No. 2020-
002 on Schedule of
Findings and
Recommendations.
8. Expenditure Report (Form Two) was submitted
on time.
X None
9. Timely use of funds.X None
10. Administrative expenditures are within the 20%
cap.
X None
11. Fund exchanges were approved by Metro.X None
12. A separate account was established for Capital
reserve funds and Capital reserve was approved
by Metro.
X None
13. Recreational transit form was submitted on
time.
X None
ATTACHMENT A
CITY OF TEMPLE CITY
COMPLIANCE MATRIX
Year Ended June 30, 2020
(Continued)
34
Compliance Requirement In Compliance Questioned
Costs
If no, provide details
and management
response.
Yes No N/A
C. Measure M Local Return Fund
1. Funds were expended for transportation
purposes.
X None
2. Funds were used to augment, not supplant
existing local revenues being used for
transportation purposes unless there is a fund
shortfall.
X None
3. Signed Assurances and Understandings was on
file.
X None
4.Separate Measure M Local Return Account was
established.
X None
5. Revenue received including allocations, project
generated revenues and interest income was
properly credited to the Measure M Local
Return Account.
X None
6. Funds were expended with Metro’s approval. X None
7. Expenditure Plan (Form M-One) was submitted
on time.
X None See Finding No. 2020-
003 on Schedule of
Findings and
Recommendations.
8. Expenditure Report (Form M-Two) was
submitted on time.
X None
9. Timely use of funds.X None
10. Administrative expenses are within the 20%
cap.
X None
11. Fund exchanges were approved by Metro.X None
12. A separate account was established for Capital
reserve funds and Capital reserve was approved
by Metro.
X None
13. Recreational transit form was submitted timely.X None
ATTACHMENT A
CITY OF TEMPLE CITY
COMPLIANCE MATRIX
Year Ended June 30, 2020
(Continued)
35
Compliance Requirement In Compliance Questioned
Costs
If no, provide details
and management
response.
Yes No N/A
D. Transportation Development Act Article 3 Fund
1. Timely use of funds.X None
2. Expenditures were incurred for activities relating
to pedestrian and bicycle facilities and amenities.
X None
ATTACHMENT A
CITY OF TEMPLE CITY
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
Year Ended June 30, 2020
36
PALRF: Finding No. 2020-001
Compliance
Reference
According to Proposition A and Proposition C Local Return Guidelines, Section I (C),
Project Description Form (Form A): Jurisdictions shall submit for approval a Project
Description Form prior to the expenditure of funds."
Condition The City incurred expenditures prior to receiving approval from LACMTA for
PALRF's Project Code 410-00, Proposition A Fund Exchange with Foothill Transit,
in the amount of $750,000. However, the project was subsequently approved on
September 29, 2020.
Cause Due to miscommunication amongst the staff, the City mistakenly did not submit a
request for budget approval from LACMTA for PALRF’s Proposition A Fund
Exchange with Foothill Transit.
Effect The City did not comply with the Guidelines when expenditures for PALRF project
are incurred prior to LACMTA's approval.
Recommendation We recommend that the City establish procedures to ensure that it obtains approval
from LACMTA prior to implementing any Proposition A and Proposition C Local
Return projects.
Management’s
Response
Moving forward, the City will ensure that the necessary forms are submitted and
official approvals from LACMTA are acquired before expending PALRF funds on
any projects.
Finding Corrected
During the Audit
LACMTA Program Manager granted retroactive approval of the said expenditures on
September 29, 2020. No follow-up is required.
ATTACHMENT A
CITY OF TEMPLE CITY
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
Year Ended June 30, 2020
(Continued)
37
MRLRF: Finding No. 2020-002
Compliance
Reference
According to Measure R Local Return Guidelines, Section B (II.1),Expenditure Plan
(Form One): “Jurisdictions shall submit to LACMTA an Expenditure Plan, annually,
on or before August 1st of each fiscal year.”
Condition The City did not meet the August 1, 2019 deadline for submission of Form One.
However, the City submitted the Form One on August 16, 2019.
This is a repeat finding from the prior fiscal year.
Cause The former Director of Parks and Recreation who was responsible for the submission
of the reports has since retired from the City. As a result, the submission of the form
was overlooked.
Effect Because the City’s Form One was not submitted timely, the City did not comply with
the Measure R Local Return Guidelines.
Recommendation We recommend that the City establish procedures to ensure that the Form One is
properly prepared and submitted before the due date of August 1st so that the City’s
expenditures of the Measure R Local Return Funds will be in accordance with
LACMTA’s approval and the Guidelines. Furthermore, we recommend the City to
retain a confirmation of receipt by LACMTA to indicate the form was submitted in a
timely manner.
Management’s
Response
The new Director of Parks and Recreation has now taken charge to ensure the
necessary forms are submitted by the reporting deadlines.
Finding Corrected
During the Audit
The City subsequently submitted the Form One on August 16, 2019. No follow-up is
required.
ATTACHMENT A
CITY OF TEMPLE CITY
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
Year Ended June 30, 2020
(Continued)
38
MMLRF: Finding No. 2020-003
Compliance
Reference
According to Measure M Local Return Guidelines, Reporting Requirements Section
XXV, Expenditure Plan (Form M-One), “To maintain legal eligibility and meet
Measure M LR Program compliance requirements, Jurisdictions shall submit to Metro
an Expenditure Plan (Form M-One), annually, by August 1 of each year.”
Condition The City did not meet the August 1, 2019 deadline for submission of Form M-One.
However, the City submitted the Form M-One on August 16, 2019.
This is a repeat finding from the prior fiscal year.
Cause The former Director of Parks and Recreation who was responsible for the submission
of the reports has since retired from the City. As a result, the submission of the form
was overlooked.
Effect Because the City’s Form M-One was not submitted timely, the City did not comply
with the Measure M Local Return Guidelines.
Recommendation We recommend that the City establish procedures to ensure that the Form M-One is
properly prepared and submitted before the due date of August 1st so that the City’s
expenditures of the Measure M Local Return Funds will be in accordance with
LACMTA’s approval and the Guidelines. Furthermore, we recommend the City to
retain a confirmation of receipt by LACMTA to indicate the form was submitted in a
timely manner.
Management’s
Response
The new Director of Parks and Recreation has now taken charge to ensure the
necessary forms are submitted by the reporting deadlines.
Finding Corrected
During the Audit
The City subsequently submitted the Form M-One on August 16, 2019. No follow-up
is required.
ATTACHMENT A
EXIT CONFERENCE
ATTACHMENT A
39
CITY OF TEMPLE CITY
PROPOSITION A LOCAL RETURN FUND, PROPOSITION C LOCAL RETURN FUND,
MEASURE R LOCAL RETURN FUND, MEASURE M LOCAL RETURN FUND, AND
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUND
EXIT CONFERENCE
June 30, 2020
An exit conference was held on November 24, 2020, with the City of Temple City. Those in attendance
were:
Simpson & Simpson Representative:
John Longoria, Auditor
City’s Representative:
Lee Ma, Accountant
Matters Discussed:
Results of the audit disclosed two (2) significant deficiencies and three (3) non-
compliance issues with Metro Guidelines.
A copy of this report was forwarded to the following City representative(s) for their comments
prior to the issuance of the final report:
Lee Ma, Accountant
ATTACHMENT A
Simpson & Simpson, LLP
633 West 5th Street, Suite 3320
Los Angeles, CA 90071
RE: CITY OF TEMPLE CITY ANNUAL FINANCIAL REPORT OF THE PROPOSITION A LOCAL
RETURN FUND, PROPOSITION C LOCAL RETURN FUND, MEASURE R LOCAL RETURN
FUND, MEASURE M LOCAL RETURN FUND, AND TRANSPORTATION DEVELOPMENT
ACT ARTICLE 3 FUND FOR THE FISCAL YEARS ENDED JUNE 30, 2020 AND 2019
I have received the annual financial report of the Proposition A Local Return Fund, Proposition C Local
Return Fund, Measure R Local Return Fund, Measure M Local Return Fund, and Transportation
Development Act Article 3 Fund for the years ended June 30, 2020 and 2019 for the City of Temple City
and agree with the contents of the report except as indicated below:
(Attach additional pages if necessary)
Very truly yours,
_____________________________
Name
_____________________________
Title
_____________________________
Date
ATTACHMENT A