Oxnard audit presented

viagra arial, cost sans-serif; font-size: 12pt;”>By George Miller

At the 7-13-16 Oxnard Fiscal Policy Task Force meeting, audit firm Eadie + Payne staff presented the 2014/15 single audit. It took ten months to get this far, because of the “enormous number” (their words) of “material defects” in the system/data. 

Here is a summary of the audit and the meeting presentation materials, which identifies and briefly describes 107 negative findings, an astronomical number which confirms previous statements made at task force and city council meetings.

Auditors reiterated that the biggest negative surprises were in capital and pension assets. Another $56 million in unbooked accounts receivable were identified, but resident experts disputed some of these, as they may be forgivable loans or proceeds which would have to be returned if repaid. Golf course, Performing Arts Center and Landscape Maintenance District adjustments all figured big. Most of this was no surprise to veteran observers of city affairs, but at least it is being formally reconciled and adjustments finally made.

They remarked on a lack of supporting documentation for transactions.

OxnardAuditProblems2014-15

MW= Material Weakness, SD Significant Defects, NC= Non Compliance, BP= Oppty to improve to Best practices.

There were four significant defects in accounting for federal grant funds, which is a potential financial risk to the City. Significantly absent was an accounting of potential litigation risk from ongoing or potential lawsuits.

Resident Steve Nash identified a number of other risks not nailed down, such as:

SCR Levees I &II, FEMA Flood maps, landfill lease with Ventura Sanitation District, (city accepting liability for leachate pollution), impending acceptance of FerroPit (gravel pits)_ at River park with associated potential liabilities, Halaco slag pile (if city accepts property), Ormond Beach (agricultural pollution- DDT, power plant pollution (pending NRG cleanup and property transfer terms).

 

OxnardSingleAudit07-13-16

http://oxnard.granicus.com/DocumentViewer.php?file=oxnard_28d948b9c08392f86a9b04cde27aea61.pdf&view=1

The audit will also be presented at the Tuesday City Council meeting:

City Council Meeting July 19, 2016 – 04:30 PM Agenda

 

At the meeting, Councilman Bert Perello did confirm that CA State Controller Betty Yee sent a letter to auditor Eadie + Payne stating that a review of the audit would be conducted to determine compliance with generally accepted U.S. auditing standards, government auditing standards, OMB Circular A-133 (on govt. audits), and the California Business and Professional Code & related CA Board of Accountancy regulations. Yee said this was done because Oxnard failed to file its single audit for FY 2014/15 with the State Controller in a timely manner. Yee also requested audit working papers to facilitate this review. No timing was specified.

The new CFO goals and objectives were presented by Dave Millican, CFO.

Here is the 7/13 Fiscal Policy Task Force meeting video, by Dan Pinedo:

 


George Miller is Publisher of CitizensJournal.us and a “retired” operations management consultant residing in Oxnard.

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