HomeMy WebLinkAbout03 RECEIVE DUE DILIGENCE REVIEWAgenda Item
AGENDA REPORT
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
MEETING DATE: DECEMBER 11, 2012
SUBJECT/ACTION: RECEIVE DUE DILIGENCE REVIEW OF OTHER FUNDS AND
CONVENE PUBLIC COMMENT SESSION
In accordance with California Health and Safety Code (HSC) Section 34179.6, it is
recommended the Oversight Board of the Successor Agency to the Tustin Community
Redevelopment Agency take the following actions:
Receive the Due Diligence Review of non-Housing Funds Balance from White
Nielson Diehl Evans LLP, the Successor Agency's certified public accounting firm;
and
2. Convene a public comment session and consider public comments pertaining to the
Due Diligence Review of the non-Housing Funds.
As a result of Assembly Bill 1484, Sections 34179.5 and 34179.6 were added to the
Dissolution Act, requiring a licensed accountant conduct two (2) Due Diligence Reviews
to determine the unobligated balances available for transfer to taxing entities. On
August 28, 2012, the Oversight Board approved the Successor Agency to enter into an
agreement with White Nielson Diehl Evans LLP ("WNDE") to conduct the Due Diligence
Review. The first review for the Low and Moderate Income Housing Fund was
completed by October 1, 2012. After a minimum five-day public comment session, the
Oversight Board reviewed and approved the report on October 9, 2012 and transmitted
their determination to the Department of Finance ("DoF") by the October 15, 2012
deadline.
The second review for all of the other fund and account balances and specifically the
amount of cash and cash equivalents determined to be available for allocation to taxing
entities is to be completed by December 15, 2012. Upon receipt of the review, the
Oversight Board must convene a public comment session at least five business days
before the Oversight Board holds the approval vote. The final results of the review are
to be transmitted to the DoF and County Auditor-Controller ("CAC") by January 15,
2013.
WNDE conducted the Due Diligence Review in accordance with the Agreed-Upon
Procedures published by the DoF on August 27, 2012. WNDE was not engaged to and
Agenda Report
December 11, 2012
Page 2
did not conduct an audit, the objective of which would be the expression of an opinion
on whether the Successor Agency met the statutory requirements of HSC Section
34179.5 related to the other fund and account balances. Due to the scope of work and
scheduling, WNDE did not complete the Due Diligence Review in time to be included in
the mailing of the Agenda package to Board Members. The Review will be distributed
at today's Oversight Board meeting and the Board will convene the public comment
session. At the regularly scheduled meeting on Tuesday, January 8, 2013, the
Oversight Board will review, approve and transmit the determination of the amount of
cash and cash equivalents that are available for disbursement to taxing entities as
determined by the Due Diligence Review. The date for convening the public comment
session and the date the Oversight Board makes a determination allows for a twenty-
eight day public comment period.
Successor Agency and Finance Department staff are available to answer any questions
the Oversight Board may have.