Location & Date
Metro Board Room, One Gateway Plaza, 3rd Floor,
Monday, April 6, 2015 1:30 p.m.
Justice Candace Cooper, Chair
Judge Robert W. Parkin, Vice Chair
Judge Richard Kolostian
1. Chairperson’s Introductory Remarks (Hon. Candace Cooper)
2. Statement by the Board Secretary’s Office concerning publication of notices and dissemination of public information (Board Secretary)
3. Public Hearing of Public Comments on Measure R Audits and Annual Report (The Chair will determine order of appearance before the Committee. Speakers will be limited to three minutes. If available, a written copy of testimony should be presented to Secretary.)
4. Motion to Close Hearing
Regular Meeting Agenda Items
5. Regular Meeting Agenda Items
Approve February 9, 2015 Workshop Meeting Summary
6. Oral Update on Measure R Projects Delivery (Highways-Gary Sidhu/Regional Rail-Don Sepulveda)
RECOMMENDATION: Adopt a resolution finding that the benefits of a $300 million Short-term Borrowing program secured with Measure R revenues exceed issuance and interest costs, Attachment A. (Donna Mills)
9. RECEIVE Public Comment
10. Meeting Adjournment
NOTICE OF PUBLIC HEARING
Los Angeles County Metropolitan Transportation Authority
The Measure R Independent Taxpayers Oversight Committee of Metro (Oversight Committee) will hold a public hearing at 1:30 p.m., April 6, 2015, in the Los Angeles County Metropolitan Transportation Authority (Metro) Boardroom located at One Gateway Plaza, Los Angeles.
The Oversight Committee was appointed under Measure R, also known as the Traffic Relief and Rail Expansion Ordinance, that imposed an additional 1/2 of one percent transactions and use tax to fund transportation improvements in the County, approved by voters in 2008. The Oversight Committee and oversight process has been established to ensure that Metro and local subrecipients comply with the terms of the Ordinance. The oversight process requires that an annual audit be conducted to determine compliance with the provisions of the Ordinance related to the receipt and expenditure of sales tax revenues during the fiscal year. The audits must be provided to the Oversight Committee so it can make findings on whether Metro and local subrecipients have complied with the Measure R requirements. In compliance with the Ordinance, Metro contracted with BCA Watson Rice, LLP (BCA) to perform the independent audit of the Measure R Special Revenue Fund and contracted with Vasquez & Company, LLP and Simpson & Simpson to audit the compliance of the 87 cities (Cities) and the County of Los Angeles (County).
The purpose of this hearing is to receive public comments on the results of the independent audits conducted on the Schedule of Revenues and Expenditures for Measure R Special Revenue Fund and Compliance with Requirements Applicable to Measure R Local Return Guidelines from July 1, 2013 to June 30, 2014, and the Committee’s annual report on these audits.
INDEPENDENT AUDITORS’ REPORTS
Measure R Special Revenue Fund Audit
BCA conducted the audit of compliance in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that BCA plan and perform the audit to obtain reasonable assurance about whether the Schedules of Measure R revenues and expenditures are free of material misstatement. The audit found that Metro complied, in all material respects, with the requirements applicable to the Measure R revenues and expenditures for the year ended June 30, 2014.
Measure R Compliance Audits of Cities and the County
Vasquez & Company, LLP and Simpson & Simpson conducted the audits of compliance with the Local Return Guidelines in accordance with auditing standards generally accepted in the United States of America and the standards contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that Vasquez & Company, LLP and Simpson & Simpson plan and perform the audits to obtain reasonable assurance about whether noncompliance with the requirements in the Ordinance occurred which could have a direct and material effect on the Measure R Local Return program. Vasquez & Company, LLP conducted the audit of 49 Cities, and Simpson & Simpson conducted the audit of the other 38 Cities and the County. The auditors found that the Cities and the County complied in all material respects with the requirements in the Measure R Ordinance that are applicable to the Measure R Local Return program for the year ended June 30, 2014. The audits found 32 deficiencies in internal control over compliance, none of which were deemed material.
Measure R Independent Taxpayers Oversight Committee Annual Report
The Committee reviewed the three independent audit reports and based on this review, developed an annual report. The annual report describes the audit results and makes several findings. The report finds that: 1) the audits were performed in accordance with the Ordinance that the voters approved in 2008; 2) Metro complied, in all material respects, with the requirements applicable to the Measure R revenues and expenditures for the year ended June 30, 2014; and 3) the Cities and the County complied with the requirements in the Measure R Ordinance that are applicable to the Measure R Local Return program for the year ended June 30, 2014, however, the audits found 32 deficiencies in internal control over compliance, none of which were deemed material.
Written comments on this matter will be accepted through April 6, 2015. All comments should be addressed to Board Administration, LACMTA, One Gateway Plaza, Mail Stop 99-3-1, Los Angeles, CA 90012-2952. Copies of the Independent Auditors’ Reports and the Oversight Committee’s Annual Report are available from Metro’s Records Management Center at the LACMTA Plaza Level at One Gateway Plaza or by calling (213) 922-2342. These documents will also be made available to every library located within Los Angeles County for public review. Members of the public who wish to provide public comment in person during the public hearing on April 6 are encouraged to contact Michele Jackson, Board Secretary, at (213) 922-4605.