HomeMy Public PortalAbout09) 7F Audit ReportsCity Council
February 16, 2016
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basis by an independent audit firm (Vasquez & Company) contracted and hired by
the Los Angeles County Metropolitan Transportation Authority.
5. On January 21, 2016, the City received the final audit from Vasquez & Company.
ANALYSIS:
The City is in compliance with all requirements of the Los Angeles County Metropolitan
Transportation Authority's Funding and Allocation Guidelines. The following reports are
presented for your review.
Proposition A
During the FY 2014-15, the City received a total of $760,158 in revenues for Proposition
A funds which includes bus pass sales revenue of $123,290 and interest on income of
$1,047. The total expenditures for FY 2014-15 were $692,237. The City of Temple City
utilized Proposition 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%); and
• Direct Administration.
Proposition C
During the FY 2014-15, the City received $526,306 revenues for Proposition C which also
includes interest income of $41. The expenditure for Proposition C was $88,604 for the
Las Tunas Drive Improvement Project in FY 2014-15.
MeasureR
The City received a total of $396,551 in revenues for MeasureR funds which also includes
interest income of $914. There was no expenditure during FY 2014-15.
Transportation Development Act Article 3
Transportation Development Act Article 3 provides for construction of pedestrian and
bicycle facilities including ADA wheelchair ramps. Transportation Development Act Article
3 funds are placed on reserve in the Local Transportation Fund Account with the County
Auditor-Controller and are drawn down whenever the funds become eligible for a specific
project.
During the FY 2014-15, the City drew down $94,847 from the County Auditor-Controller
City Council
February 16, 2016
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in Transportation Development Act Article 3 Funds to cover for the Rosemead Boulevard
expenses for the prior fiscal year (FY 2013-14).
CITY STRATEGIC GOALS:
The City Council is requested to receive and file the Proposition A, Proposition C,
Measure R and Transportation Development Act Article 3 Audit Reports for the year
ending June 30, 2015 to further City's Strategic Goal to promote Good Governance.
FISCAL IMPACT:
This agenda item does not have a fiscal impact on the FY 2015-16 City Budget.
ATTACHMENT:
A. Annual Financial Report of Proposition A, Proposition C, Measure R and
Transportation Development Act Article 3 Funds
City of Temple City
Table of Contents
FINANCIAL SECTION
Report of Independent Auditors
Proposition A Local Return Fund:
Basic Financial Statements:
Balance Sheets
Statements of Revenues, Expenditures and Changes in Fund Balance
Supplementary Information:
Schedule of Expenditures-Actual and LACMTA Approved Project Budget
Schedule of Capital Assets
Proposition C Local Return Fund:
Basic Financial Statements:
Balance Sheets
Statements of Revenues, Expenditures and Changes in Fund Balance
Supplementary Information:
Schedule of Expenditures-Actual and LACMTA Approved Project Budget
Schedule of Capital Assets
Measure R Local Return Fund:
Basic Financial Statements:
Balance Sheets
Statements of Revenues, Expenditures and Changes in Fund Balance
Supplementary Information:
Schedule of Expenditures-Actual and LACMTA Approved Project Budget
Schedule of Capital Assets
Transportation Development Act Article 3 Fund:
Basic Financial Statements:
Balance Sheets
Statements of Revenues, Expenditures and Changes in Fund Balance
Supplementary Information:
Schedule of Transportation Development Act Allocation for Specific Projects
Notes to Funds Financial Statements
Report of Independent Auditors 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
COMPLIANCE SECTION
Report of Independent Auditors on Compliance
Compliance Matrix
EXIT CONFERENCE
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FINANCIAL SECTION
., Vasauez
fj. &ComPany LLP
Ce rtified Publi c Accoun ta n ts and Bus iness Consultan ts
Report of Independent Auditors
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
801 So uth Gra nd Ave., Su it e 400
Los Ange les, CA 90017
Ph. (213) 873 ·1700
Fax (213) 87 3-1 777
www.vasquezcp a .com
OFFI CE LOCATIO NS:
Los Angeles
Sacrame nto
San Diego
We have audited the accompanying financial statements of the Proposition A Local Return Fund ,
Proposition C Local Return Fund, Measure R Local Return Fund and the Transportation
Development Act Article 3 Fund (collectively , the Funds) of the City of Temple City, California (the
City) which comprise the Funds ' balance sheets as of June 30, 2015 and 2014, and the related
statements of revenues, expenditures and changes in fund balan ce for the years then ended, and
the rel ated notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair pre sentation of these financial statements in
acco rdance 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.
Auditors' Responsibility
Our resp onsib ility is to ex press opinions on the se financial statements based on our audits. We
conducted our audits in accordance with auditing standards gen erally accepted in the United States
of America and the stan dards appli cable to financial audits contained in Gove rnme nt Auditing
Standards, issued by the Comptroller General of th e United States. Those standards require that we
plan and p erform the audits to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial sta tements. The pro cedures sele cted 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 purp ose of ex pressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we ex press no such opinion. An audit also
includ es 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 beli eve that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
1
ASSETS
Cash and investments
City of Temple City
Proposition A Local Return Fund
Balance Sheets
June 30
2015 2014
$ 860,359 $ 786,964
Total assets $ 860,359 $ 786,964
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable
Fund balance
Restricted
$
Total liabilities
Total fund balance
Total liabilities and fund balance $
See notes to financial statements.
3
68,832 $ 63,358
68,832 63,358
791,527 723 606
791,527 723,606
860,359 $ 786,964
City of Temple City
Proposition A Local Return Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
Revenues
Proposition A $
Project generated revenue
Investment income
Total revenues
Expenditures
Various projects
Total expenditures
Excess (deficiency) of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year $
See notes to financial statements.
4
Years ended June 30
2015 2014
635,821 $ 610,170
123,290 126,990
1,047 1,826
760,158 738,986
692,237 2,167,643
692,237 2,167,643
67,921 (1 ,428,657)
723,606 2,152,263
791,527 $ 723,606
Project
Code
130-01
140-02
170-04
250-03
270-02
380-11
48Q-05
City of Temple City
Proposition A Local Return Fund
Supplementary Information
Schedule of Expenditures-Actual and LACMTA Approved Project Budget
Year ended June 30, 2015
Actual for 2014
2015
LACMTA
Project Name Budget Actual
Special Service Paratransit $ 450,000 $ 413,602
Recreational Transit 42,000 41,134
Bus Shelter Maintenance 16,160 7,752
User-Side Subsidy 151,540 153,874
San Gabriel Valley Council of Governments
Membership 9,500 9,500
Rosemead Boulevard Improvement Project
Direct Administration 69,745 66,375
Total expenditures$ 738,945 $ 692,237
See report of independent auditors.
5
Variance
Positive 2014
(Negative) Actual
$ 36,398 $ 363,151
866 35,421
8,408 7,752
(2,334) 163,341
9,471
1,505,723
3 370 82,784
$ 46,708 $ 2,167,643
Balance
Date July 1,
City of Temple City
Proposition A Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2015
Balance
June 30,
Acquired Description 2014 Additions Deletions 2015
08/05/08 Form E350 Van $ 25,799 $
Total $ 25,799 $
See report of independent auditors.
6
- $ - $
25,799
- $ - $
25 799
ASSETS
Cash and investments
City of Temple City
Proposition C Local Return Fund
Balance Sheets
June 30
2015 2014
$ 101,305 $
Total assets $ 101,305 $
LIABILITIES AND FUND BALANCE
Liabilities
Due to General Fund
Fund balance
Restricted (Unassigned)
$
Total liabilities
Total fund balance
Total liabilities and fund balance $
See notes to financial statements.
7
$ 336,397
336,397
101,305 (336,397)
101,305 (336,397)
101,305 $
Project
Code
270-01
380-11
City of Temple City
Proposition C Local Return Fund
Supplementary Information
Schedule of Expenditures-Actual and LACMTA Approved Project Budget
Year ended June 30, 2015
Actual for 2014
2015
LACMTA
Project Name Budget Actual
Las Tunas Drive Improvement Project $ 175,000 $ 88,604
Rosemead Boulevard Improvement Project
Total expenditures$ 175,000 $ 88,604
See report of independent auditors.
9
Variance
Positive 2014
(Negative) Actual
$ 86,396 $ 88,548
789,651
$ 86,396 $ 878,199
Date
Acquired
None
Description
Balance
July 1,
2014
City of Temple City
Proposition C Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2015
Additions Deletions
Balance
June 30,
2015
$ ____ $ ____ $ ____ $ ___ _
Total $ $ $ $~~~~
See report of independent auditors.
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ASSETS
Cash and investments $
Total assets $
City of Temple City
Measure R Local Return Fund
Balance Sheets
June 30
2015 2014
917,812 $ 521,261
917,812 $ 521,261
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable
Fund balance
Restricted
$
Total liabilities
Total fund balance
Total liabilities and fund balance $
See notes to financial statements.
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$
917,812 521,261
917,812 521,261
917,812 $ 521,261
City of Temple City
Measure R Local Return Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
Revenues
MeasureR $
Investment income
Total revenues
Expenditures
Various projects
Total expenditures
Excess (deficiency) of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year $
See notes to financial statements.
12
Years ended June 30
2015 2014
395,637 $ 377,714
914 777
396,551 378,491
799,456
799,456
396,551 (420,965)
521,261 942,226
917,812 $ 521,261
City of Temple City
Measure R Local Return Fund
Supplementary Information
Schedule of Expenditures-Actual and LACMTA Approved Project Budget
Year ended June 30, 2015
Actual for 2014
2015
Variance
Project LACMTA Positive 2014
Code Project Name Budget Actual (Negative) Actual
01-001 Rosemead Boulevard Improvement Project $ -$ ____ _:__
Total expenditures$ -$~~~~;.
See report of independent auditors.
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$ - $ 799456
$ - $ 799,456
Date
Acquired
None
Description
Balance
July 1,
2014
City of Temple City
Measure R Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2015
Additions Deletions
Balance
June 30,
2015
$ ____ $ ____ $ ____ $ ___ _
Total $ $ $ $~~~~
See reporl of independent auditors.
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ASSETS
Due from LACMTA
City of Temple City
Transportation Development Act Article 3 Fund
Balance Sheets
Pursuant to Public Utilities Code Section 99234
June 30
2015 2014
$ 705 $ 15,403
Total assets $ 705 $ 15,403
LIABILITIES AND FUND BALANCE
Liabilities
Cash overdraft
Due to General Fund
Fund balance
Unassigned
$
Total liabilities
Total fund balance
Total liabilities and fund balance $
See notes to financial statements.
15
705 $
104,085
705 104,085
(88,682)
(88,682)
705 $ 15,403
City of Temple City
Transportation Development Act Article 3 Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
Pursuant to Public Utilities Code Section 99234
Revenues
Intergovernmental Allocations:
Article 3 $
Total revenues
Expenditures
Construction/Maintenance
Total expenditures
Excess (deficiency) of revenues over expenditures
Unassigned fund balance at beginning of year
Unassigned fund balance at end of year $
See notes to financial statements.
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Years ended June 30
2015 2014
94,847 $ 15,403
94,847 15,403
6,165 103,935
6,165 103,935
88,682 (88,532)
(88,682) (150)
- $
(88,682)
NOTE 1
NOTE2
City of Temple City
Notes to Funds Financial Statements
Years ended June 30, 2015 and 2014
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) 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 % cent
Proposition A and % 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 % 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.
Transportation Development Act Article 3 Fund (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
PALRF, PCLRF, MRLRF 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.
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.
Unrealized Gain (Loss) on Investments
In accordance with GASB Statement No. 31, Accounting and Financial Reporting
for Certain Investments and External Investment Pools, local governments are
required to use fair value (instead of amortized costs) for financial reporting
purposes. As a result of such implementation, the City recognizes the unrealized
gain (loss) on investments.
ANNUAL FINANCIAL STATEMENTS
The financial statements reflect only the financial position and results of operations
of the PALRF, PCLRF, MRLRF and TDAA3F, and do not purport to, and do not
present fairly the City's financial position as of June 30, 2015 and 2014, and the
changes in its financial position for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
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NOTE3
NOTE4
NOTES
NOTES
City of Temple City
Notes to Funds Financial Statements
Years ended June 30, 2015 and 2014
PROPOSITION A AND PROPOSITION C LOCAL RETURN COMPLIANCE
REQUIREMENTS
The Proposition A Ordinance requires that Local Return (LR) funds be used
exclusively to benefit public transit. Expenditures related to fixed route and
paratransit services, Transportation Demand Management, Transportation
Systems Management and fare subsidy programs that exclusively benefit transit
are all eligible uses of Proposition A LR funds. Proposition A LR funds may also be
traded with other Jurisdictions in exchange for general or other funds.
The Proposition C Ordinance directs that LR funds also be used to benefit public
transit, as described above, but provides an expanded list of eligible project
expenditures including Congestion Management Programs, bikeways and bike
lanes, street improvements supporting public transit service, and Pavement
Management System projects. Proposition C LR funds cannot be traded.
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.
MEASURE R LOCAL RETURN COMPLIANCE REQUIREMENTS
The Measure R Ordinance specifies that LR funds are used exclusively for
transportation purposes.
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.
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.
CASH AND INVESTMENTS
The PALRF, PCLRF, MRLRF and TDAA3F 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 monthly balances to the total of the pooled cash and
investments.
Please refer to the City's Comprehensive Annual Financial Report (CAFR) for a full
description of risks relating to cash and investments.
19
NOTE7
NOTES
NOTE9
NOTE10
PROJECT GENERATED REVENUE
City of Temple City
Notes to Funds Financial Statements
Years ended June 30, 2015 and 2014
PALRF's project generated revenue for the years ended June 30, 2015 and 2014
represents bus pass sales amounting to $123,290 and $126,990, respectively.
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUND REVENUE
ALLOCATION
The revenue allocation for the years ended June 30, 2015 and 2014 consisted of
the following:
2015 2014
FY 2009/10 reserve $ -$ 15,403
FY 201 0/11 reserve 14,391
FY 2011/12 reserve 17,306
FY 2012/13 reserve 25,547
FY 2013/14 reserve 29,140
FY 2014/15 allocation 8,463
$ 94,847 $ 15,403
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS RESERVED
In accordance with TDA Article 3 (SB821) Guidelines, funds which will not be spent
during the fiscal year have been placed on reserve in the Local Transportation
Fund (L TF) 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 LACMTA. As of June 30,2015 and 2014, the City
has funds on reserve as follows:
FY 2010/11 reserve
FY 2011/12 reserve
FY 2012/13 reserve
FY 2013/14 reserve
FY 2014/15 allocation
Available reserve balance
$
$
2015
- $
15,273
15,273 $
2014
14,391
17,306
25,547
29,140
86,384
For FY 2014/15, any TDA Article 3 funds left on reserve for FY 2010/11 or prior,
are subject to lapse if not claimed by the City by June 30, 2015. There were no
funds that lapsed in FY 2014/15.
SUBSEQUENT EVENTS
The City has evaluated subsequent events through December 8, 2015, the date
the financial statements were available to be issued, and concluded that no events
have occurred that require disclosure in or adjustments to the financial statements.
20
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m a n a g e m e n t o r e m p l o y e e s , i n t h e n o r m a l c o u r s e o f p e r f o r m i n g t h e i r a s s i g n e d f u n c t i o n s , t o p r e v e n t ,
o r d e t e c t a n d c o r r e c t , m i s s t a t e m e n t s o n a t i m e l y b a s i s . A m a t e r i a l w e a k n e s s i s a d e f i c i e n c y , o r a
c o m b i n a t i o n o f d e f i c i e n c i e s , i n i n t e r n a l c o n t r o l , s u c h t h a t t h e r e i s a r e a s o n a b l e p o s s i b i l i t y t h a t a
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i n i n t e r n a l c o n t r o l t h a t i s l e s s s e v e r e t h a n a m a t e r i a l w e a k n e s s , y e t i m p o r t a n t e n o u g h t o m e r i t
a t t e n t i o n b y t h o s e c h a r g e d w i t h g o v e r n a n c e .
O u r c o n s i d e r a t i o n o f i n t e r n a l c o n t r o l w a s f o r t h e l i m i t e d p u r p o s e d e s c r i b e d i n t h e f i r s t p a r a g r a p h o f
t h i s s e c t i o n a n d w a s n o t d e s i g n e d t o i d e n t i f y a l l d e f i c i e n c i e s i n i n t e r n a l c o n t r o l t h a t m i g h t b e m a t e r i a l
w e a k n e s s e s o r s i g n i f i c a n t d e f i c i e n c i e s . G i v e n t h e s e l i m i t a t i o n s , d u r i n g o u r a u d i t s w e d i d n o t i d e n t i f y
a n y d e f i c i e n c i e s i n i n t e r n a l c o n t r o l t h a t w e c o n s i d e r t o b e m a t e r i a l w e a k n e s s e s . H o w e v e r , m a t e r i a l
w e a k n e s s e s m a y e x i s t t h a t h a v e n o t b e e n i d e n t i f i e d .
2 1
COMPLIANCE SECTION
" ~ V a s a u e z f j . & C o m P a n Y L L P
C c r l i h N I P u b l i c 1 \ c c o u n t a n t s a n d B u s i n e s s C o n s u l t a n t s
R e p o r t o f I n d e p e n d e n t A u d i t o r s o n C o m p l i a n c e
T o t h e H o n o r a b l e M e m b e r s o f t h e C i t y C o u n c i l o f t h e
C i t y o f T e m p l e C i t y , C a l i f o r n i a a n d t h e
L o s A n g e l e s C o u n t y M e t r o p o l i t a n T r a n s p o r t a t i o n A u t h o r i t y
R e p o r t o n C o m p l i a n c e
8 0 1 S o u t h G r a n d A v e . , S u i t e 4 0 0
L o s A n g e l e s , C A 9 0 0 1 7
P h . ( 2 1 3 ) 8 7 3 - 1 7 0 0
F a x ( 2 1 3 ) 8 7 3 - 1 7 7 7
w w w . v a s q u e z c p a . c o m
O F F I C E L O C A T l O N S :
L o s A n g e l e s
S a c r a m e n t o
S a n D i e g o
W e h a v e a u d i t e d t h e c o m p l i a n c e o f t h e C i t y o f T e m p l e C i t y , C a l i f o r n i a ( t h e C i t y ) w i t h t h e P r o p o s i t i o n
A a n d P r o p o s i t i o n C L o c a l R e t u r n G u i d e l i n e s , M e a s u r e R L o c a l R e t u r n G u i d e l i n e s , T r a n s p o r t a t i o n
D e v e l o p m e n t A c t A r t i c l e 3 a n d t h e L o s A n g e l e s C o u n t y M e t r o p o l i t a n T r a n s p o r t a t i o n A u t h o r i t y ' s
F u n d i n g a n d A l l o c a t i o n G u i d e l i n e s f o r T r a n s p o r t a t i o n D e v e l o p m e n t A c t A r t i c l e 3 B i c y c l e a n d
P e d e s t r i a n F u n d s ( c o l l e c t i v e l y , t h e G u i d e l i n e s ) f o r t h e y e a r e n d e d J u n e 3 0 , 2 0 1 5 .
M a n a g e m e n t ' s R e s p o n s i b i l i t y
M a n a g e m e n t i s r e s p o n s i b l e f o r t h e C i t y ' s c o m p l i a n c e w i t h t h e G u i d e l i n e s .
A u d i t o r s ' R e s p o n s i b i l i t y
O u r r e s p o n s i b i l i t y i s t o e x p r e s s a n o p r n r o n o n t h e C i t y ' s c o m p l i a n c e b a s e d o n o u r a u d i t . W e
c o n d u c t e d o u r a u d i t o f c o m p l i a n c e i n a c c o r d a n c e w i t h t h e a u d i t i n g s t a n d a r d s g e n e r a l l y a c c e p t e d i n
t h e U n i t e d S t a t e s o f A m e r i c a ; t h e s t a n d a r d s a p p l i c a b l e t o f i n a n c i a l a u d i t s c o n t a i n e d i n G o v e r n m e n t
A u d i t i n g S t a n d a r d s , i s s u e d b y t h e C o m p t r o l l e r G e n e r a l o f t h e U n i t e d S t a t e s ; a n d t h e G u i d e l i n e s .
T h o s e s t a n d a r d s a n d t h e G u i d e l i n e s r e q u i r e t h a t w e p l a n a n d p e r f o r m t h e a u d i t t o o b t a i n r e a s o n a b l e
a s s u r a n c e a b o u t w h e t h e r n o n c o m p l i a n c e w i t h t h e c o m p l i a n c e r e q u i r e m e n t s r e f e r r e d t o a b o v e t h a t
c o u l d h a v e a d i r e c t a n d m a t e r i a l e f f e c t o n t h e P r o p o s i t i o n A L o c a l R e t u r n P r o g r a m , P r o p o s i t i o n C
L o c a l R e t u r n P r o g r a m , M e a s u r e R L o c a l R e t u r n P r o g r a m , a n d T r a n s p o r t a t i o n D e v e l o p m e n t A c t
A r t i c l e 3 P r o g r a m o c c u r r e d . A n a u d i t i n c l u d e s e x a m i n i n g , o n a t e s t b a s i s , e v i d e n c e a b o u t t h e C i t y ' s
c o m p l i a n c e w i t h t h o s e r e q u i r e m e n t s a n d p e r f o r m i n g s u c h o t h e r p r o c e d u r e s a s w e c o n s i d e r e d
n e c e s s a r y i n t h e c i r c u m s t a n c e s .
W e b e l i e v e t h a t o u r a u d i t p r o v i d e s a r e a s o n a b l e b a s i s f o r o u r o p i n i o n o n c o m p l i a n c e w i t h t h e
G u i d e l i n e s . H o w e v e r , o u r a u d i t d o e s n o t p r o v i d e a l e g a l d e t e r m i n a t i o n o f t h e C i t y ' s c o m p l i a n c e w i t h
t h e G u i d e l i n e s .
O p i n i o n
I n o u r o p i n i o n , t h e C i t y o f T e m p l e C i t y , C a l i f o r n i a c o m p l i e d , i n a l l m a t e r i a l r e s p e c t s , w i t h t h e
c o m p l i a n c e r e q u i r e m e n t s o f t h e G u i d e l i n e s f o r t h e y e a r e n d e d J u n e 3 0 , 2 0 1 5 .
2 3
Compliance Requirements
A. Proposition A and Proposition C Local
Return Funds
1. Timely use of funds
2. Expenditures approved before
being incurred.
3. Expenditures did not exceed 25%
of LACMT A's approved budqet.
4. Administrative expenses are
within the 20% cap.
5. All on-going and carryover
projects were reported on Form B.
6. Annual Project Summary Report
(Form B) was submitted on time.
7. Annual Expenditure Report (Form
C) was submitted on time.
8. Cash or cash equivalents are
maintained.
9. Accounting procedures, record
keeping and documentation are
adequate.
In
ComJJiiance
Yes No
X
X
X
X
X
X
X
X
X
25
Questioned
Costs
None
None
None
None
None
None
None
None
None
City of Temple City
Compliance Matrix
Year ended June 30, 2015
If no, provide details and
management response.
Compliance Requirements
B. Measure R Local Return Fund
1. Funds were expended for
transportation purposes.
2. Funds were used to augment, not
supplant existing local revenues
being used for transportation
purposes unless there is a
funding shortfall.
3. Signed Assurances and
Understandings on file.
4. Separate Measure R Local Return
Account was established.
5. Revenues received including
allocations, project generated
revenues and interest income was
properly credited to the Measure
R Local Return Account.
6. Funds were expended with
LACMTA's approval.
7. Expenditure Plan (Form One) was
submitted on time.
8. Expenditure Report (Form Two)
was submitted on time.
9. Timely use of funds.
10. Administrative expenses are
within the 20% cap.
11. Fund exchanges were approved
bv LACMTA.
12. A separate account was
established for Capital reserve
funds and Capital reserve was
approved by LACMT A.
13. Recreational transit form was
submitted on time.
c. Transportation Development Act
Article 3 Fund
1. Timely use of funds.
2. Expenditures were incurred for
activities relating to pedestrian
and bicycle facilities and
amenities.
In Questioned Comr:liance
Yes No Costs
X None
X None
X None
X None
X None
X None
X None
X None
26
City of Temple City
Compliance Matrix
Year ended June 30, 2015
If no, provide details and
management response.
Not applicable. There were
no expenditures in FY
2014/15.
Not applicable. There were
no expenditures in FY
2014/15.
Not applicable. There were
no expenditures in FY
2014/15.
Not applicable. There were
no expenditures in FY
2014/15.
Not applicable.
Not applicable.
Not applicable.
EXIT CONFERENCE
City of Temple City
Exit Conference
Year ended June 30, 2015
An exit conference was held on December 8, 2015 with City of Temple City representatives. Those
in attendance were:
Vasquez and Company LLP representative:
Marialyn Salvador-Audit Manager
City of Temple City representatives:
Tracey Hause-Administrative Service Director
Lee Ma -Accountant
Matters discussed:
Results of the audit disclosed no significant compliance or financial statement issues.
A copy of this report was forwarded to the following City of Temple City representatives for
comments prior to the issuance of the final report:
Tracey Hause-Administrative Service Director
Lee Ma-Accountant
27