HomeMy WebLinkAbout12 PROFESSIONAL ACCOUNTING SERVICES FOR SUCCESSOR AGENCY DUE DILIGENCE REVIEW1TY O
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AGENDA REPORT
MEETING DATE:
TO:
FROM:
SUBJECT:
SUMMARY
SEPTEMBER 4. 2012
JEFFREY C. PARKER, CITY MANAGER
FINANCE DEPARTMENT
Agenda Item 12
Reviewed:
City Manager
_6L_ Finance Director
PROFESSIONAL ACCOUNTING SERVICES FOR DUE
DILIGENCE REVIEW OF SUCCESSOR AGENCY
Approval is requested to enter into an agreement with a licensed accountant, approved
by the county auditor - controller, to conduct a due diligence review of the Successor
Agency in order to determine the unobligated balances available for transfer to taxing
entities.
RECOMMENDATION
It is recommended the City Council, acting as the Successor Agency, authorize the City
Manager or the Finance Director to enter into an agreement for professional accounting
services for the due diligence review with White Nelson Diehl Evans LLP, Certified
Public Accountants & Consultants.
FISCAL IMPACT
Based on the due diligence review list of procedures released by the State Department
of Finance on August 27, 2012, the costs associated with the review are not to exceed
$15,000. The source of funds will be the Successor Agency's Administrative Budget.
BACKGROUND
California Health and Safety Code Section 34179.5, as added by AB 1484, states each
successor agency shall hire a licensed accountant that is approved by the county
auditor - controller to conduct a due diligence review to determine the unobligated
balances available for transfer to taxing entities. The section of the law also states the
accountants must have expertise in local government accounting.
Agenda Report
September 4, 2012
Page 2
On August 28, 2012, the Oversight Board of the Successor Agency to the Tustin
Community Redevelopment Agency authorized the Successor Agency to enter into an
agreement with White Nelson Diehl Evans LLP. White Nelson Diehl Evans LLP is a
regional Certified Public Accounting firm with expertise in local government accounting
and has been approved by the County of Orange's auditor controller.
The firm will begin the due diligence review immediately after the agreement is finalized
to meet the October 1, 2012 due date for the Low and Moderate Housing fund and will
complete the due diligence review for the other former Redevelopment funds by the due
date of December 15, 2013. The due diligence review will be funded out of the
administrative budget listed on the ROPS from July 2012 through December 2012 and
from January 2013 through June 2013.
Staff will be available to answer any questions the City Council may have.
i&lfela Aren King
Finance Director
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Successor Agency to the Tustin
Community Redevelopment Agency