Title
Community Development Agency, Administration and Finance Division, recommending the Board receive and file the California State Controller's Fiscal Year 2008-2009 El Dorado County Road Fund Audit Report dated July 2013.
Body
Fiscal Impact/Change to Net County Cost
There is no fiscal impact or change to net County cost.
Background
The Road Fund was established by the County's Board of Supervisors in 1935, in accordance with the Streets and Highways Code section 1622, for all amounts paid to the County out of money derived from the highway users tax fund. A portion of the Federal Forest Reserve revenue received by the County is also required to be deposited into the Road Fund. In addition, the County Board of Supervisors authorizes the deposit of other sources of revenue into the Road Fund. Once money is deposited into the Road Fund, it is restricted to expenditures made in compliance with Article XIX of the California Constitution and Streets and Highways Code sections 2101 and 2150.
The California State Controller's Office (SCO) conducts audits of the County's Road Fund in accordance with Government Code section 12410 and generally accepted government auditing standards in order to determine whether funds in the Road Fund have been appropriately expended.
Reason for Recommendation
The SCO has issued a Final Audit Report dated July 2013 for the El Dorado County Road Fund for the period of July 1, 2008 through June 30, 2009. In this report, the SCO additionally reviewed road-purpose revenues, expenditures, and changes in fund balances for the period of July 1, 2003 through June 30, 2008. The audit and review found that the County accounted for and expended Road Fund money in compliance with Article XIX of the California Constitution, the Streets and Highways Code, and the SCO's Accounting Standards and Procedures for Counties, except for one adjustment.
The SCO made an adjustment of $32,654, as it determined there were expenditures for non-road work that occurred in FY2004-05 and FY2008-09 which were funded by the Road Fund, which is detailed in attachment "B" of this Legistar file. The Road Fund has since been reimbursed from the appropriate sources, and there are procedures in place to minimize the possibility of repeating such an error in the future.
Action(s) to be taken following Board approval
Board will receive and file the El Dorado County Audit Report of the Road Fund for July 1, 2008 through June 30, 2009 prepared by the California State Controller's Office.
Contact
Kim Kerr, Interim Director
Community Development Agency