HomeMy WebLinkAbout07 AUDIT
AGENDA REPORT
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
MEETING DATE:
JUNE 24, 2014
SUBJECT/ACTION:
ADOPT OVERSIGHT BOARD RESOLUTION NO. 14-16,
APPROVING THAT THERE WILL BE NO SEPARATE AUDIT FOR
THE SUCCESSOR AGENCY
RECOMMENDATION / PROPOSED ACTION
Adopt Oversight Board Resolution No. 14-16 approving that the audit for the Successor
Agency will be through the City of Tustin’s annual audit and not requiring a separate audit
for the Successor Agency.
Note
(: This Resolution shall be effective after transmittal of this Resolution to the
Department of Finance (“DoF”) and the expiration of five (5) business days pending a
request for review by DoF within the time periods set forth in the Dissolution Law. In this
regard, if DoF requests review hereof, it will have 40 days from the date of its request to
approve this Oversight Board action or return it to the Oversight Board for reconsideration
and the action, if subject to review by DoF, will not be effective until approved by DoF.)
BACKGROUND
Section 34177 (n) of the California Health and Safety Code requires the Successor Agency
to cause an annual post audit of its financial transactions and records. The DoF notes that
Successor Agency activities will be audited and reported as a trust fund that will be included
in the financial statements of the sponsoring government, however, it would prefer, as best
practice, to have a separate set of audited financial statements completed. The DoF stated
that the decision for a separate audit for the Successor Agency is best made at the local
level. Since the Successor Agency is audited through the City of Tustin’s annual audit
conducted by a Certified Public Accounting firm and stated as a separate Private Purpose
Trust Fund on the audited financial statements; the decision for a separate audit is a
decision made at the local level; and there are no funds available in the Successor Agency
to conduct a separate audit, staff recommends that a separate audit not be conducted for
the Successor Agency for the fiscal year ending June 30, 2014.
Staff will be available to answer any questions the Oversight Board may have.
Attachment: Oversight Board Resolution No. 14-16
OVERSIGHT BOARD RESOLUTION NO. 14-16
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY APPROVING THAT THE
AUDIT FOR FISCAL YEAR ENDING JUNE 30, 2014 WILL BE
THROUGH THE CITY OF TUSTIN’S ANNUAL AUDIT AND
NOT REQUIRE A SEPARATE AUDIT FOR THE
SUCCESSOR AGENCY
The Oversight Board of the Successor Agency to the Tustin Community Redevelopment
Agency finds, determines and declares as follows:
A. The City of Tustin (“City”) is a municipal corporation organized and operating under the
laws of the State of California; and
B. The Successor Agency is a public body corporate and politic, organized and operating
under Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code, and
the successor the former Tustin Community Redevelopment Agency (“former Agency”)
that was previously a community redevelopment agency organized and existing
pursuant to the Community Redevelopment Law, Health and Safety Code Section
33000, (“CRL”); and
et seq.
C. Assembly Bill x1 26 (“AB x1 26”) added Parts 1.8 and 1.85 to Division 24 of the
California Health & Safety Code and which laws were modified, in part, and determined
constitutional by the California Supreme Court in the petition
California Redevelopment
, ., Case No. S194861, which laws and court
Association, et al. v. Ana Matosantoset al
opinion caused the dissolution of all redevelopment agencies and winding down of the
affairs of former redevelopment agencies; thereafter, such laws were amended further
by Assembly Bill 1484 and subsequent legislation (together AB x1 26, the
Matosantos
Decision, and subsequent legislation are referred to as the “Dissolution Law”).
All statutory references herein are to the Health and Safety Code of the Dissolution
Laws unless otherwise stated; and
D. As of February 1, 2012 the former Agency was dissolved pursuant to the Dissolution
Laws and as a separate public entity, corporate and politic the Successor Agency
administers the enforceable obligations of the former Agency and otherwise unwinds the
former Agency’s affairs, all subject to the review and approval by a seven-member
oversight board (“Oversight Board”); and
E. Section 34177(n) of the California Health and Safety Code requires the Successor
Agency to cause an annual post audit of its financial transactions and records. The
Department of Finance notes that Successor Agency activities will be audited and
reported as a trust fund that will be included in the financial statements of the
sponsoring government, however, it would prefer as best practice to have a separate set
of audited financial statement completed. The Department of Finance states that the
decision for a separate audit is best made at the local level. The Successor Agency is
audited through the City of Tustin’s annual audit conducted by a Certified Public
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Oversight Board Resolution No. 14-16
Page 1 of 3
Accounting firm and stated as a separate Private Purpose Trust Fund on the audited
financial statements and there are no funds available in the Successor Agency to
conduct a separate audit.
NOW, THEREFORE, BE IT RESOLVED BY A RESOLUTION OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY:
Section 1.
The foregoing recitals are incorporated into this Resolution by this reference,
and constitute a material part of this Resolution.
Section 2.
The Oversight Board approves that the audit for the Successor Agency for
fiscal year ending June 30, 2014 will be through the City of Tustin’s annual audit and will not
require a separate audit for the Successor Agency.
Section 3.
The City Manager of the Successor Agency or his authorized designee is
directed to post this Resolution on the City/Successor Agency website.
Section 4.
This Resolution shall be effective after transmittal of this Resolution to the
DoF and the expiration of five (5) business days pending a request for review by the DoF
within the time periods set forth in Assembly Bill No. 1484, which amended the Dissolution
Act and was approved by the Governor on June 27, 2012. In this regard, if the DoF
requests review hereof, the DoF will have 40 days from the date of its request to approve
this Oversight Board action or return it to the Oversight Board for reconsideration and the
action, if subject to review by DoF, will not be effective until approved by the DoF.
Section 5.
The Secretary of the Oversight Board shall certify to the adoption of this
Resolution.
th
APPROVED AND ADOPTED this 24 day of June, 2014.
Doug Davert, Chair
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
ATTEST:
Charles E. “Chuck” Puckett, Secretary
Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency
_______________________________
Oversight Board Resolution No. 14-16
Page 2 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF TUSTIN )
I, CHARLES E. “CHUCK” PUCKETT, Secretary of the Oversight Board of the Successor
Agency to the Tustin Community Redevelopment Agency, do hereby certify that the whole
number of the members of the Agency Board is seven; that the above and foregoing
Resolution No. 14-16 was duly passed and adopted at a regular meeting of the Oversight
Board, held on the 24th day of June, 2014, by the following vote:
BOARD MEMBER AYES: _____________________________________
BOARD MEMBER NOES: _____________________________________
BOARD MEMBER ABSTAINED: _____________________________________
BOARD MEMBER ABSENT: _____________________________________
_____________________________
Charles E. “Chuck” Puckett, Secretary
Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency
________________________________
Oversight Board Resolution No. 14-16
Page 3 of 3