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Home My WebLink About9/19/2007 - STAFF REPORTS - 2.H. South Coast :. Air Quality Management District 21865 Copley Drive, Diamond Bar, CA 91 765-4 1 78 Lf,`L'ya'L j (909) 396-2000 wvw.agmd.gov August 15, 2007 Ms. Sue Mills Director of HR City of Palm Springs Palm Springs, CA 92262 Dear Ms. Mills: Health and Safety Code Section 44244.1, enacted by Assembly Bill 2766 (AB 2766), requires an audit at least once every two years of each program or project funded by any agency receiving motor vehicle registration fee revenues. In November 2006, the AQMD selected the CPA firm of Simpson& Simpson to conduct the seventh biermial audit. The audit covered Fiscal 'Years 2003-04 and 2004-05 and was conducted during the period of November 2006 through May 2007. Health and Safety Code Section 44244.1, paragraph (b)(1) and (c) requires the AQMD to notify the affected agency (in this case your City) of the results of the audit. Enclosed for your review is the audit report(s) for the year(s) your city was audited, indicating that your city is in compliance with all AB 2766 audit requirements. We would like to congratulate you on the administration of your AB 2766 prograrn. Your agency's commitment to the goal of reducing emissions from motor vehicles is commendable. We thank you for your continued efforts and cooperation in implementing the AB 2766 program. If you have any questions relating to the audit, please call me at (909) 396-3026. Sincerely, -err Jo Kampa Financial Analyst Enclosure i 1 1 1 1 1 CITY OF PALM SPRINGS, CALIFORNL4 AIR QIIALITYIMPROYEMENT FU AD 1 REPORT ONAPPLYING AGREED-UPONPROCEDURES FOR TILE YEAR ENDED JUNE 30, 2004 1 1 1 r � ooa ,082 CITY OF PALM SPRINGS AIR QUALITY IMPROVEMENT FUND TABLE OF CONTENTS iPage 1 Independent Accountant's Report on Applying Agreed-Upon Procedures 3 1 Attachment 1 —Listing of Agreed-Upon Procedures 5 1 i 1 i 1 2 000003 1 3600 wlLtil-IIRE BOULEVARD SUITE 1710 LOS ANCLLL CA 00010 (ZI i)7i6-6061 I LLEITIONE ' wwws (Zli)7iU1+60ZFAX nnp+nnand.Impsnnepae win ' SIMPSON IF SIMPSON crM1rTirn runt IC ACCOI INrnNrs FIN INI ANt I AIU INLlls B AINAJI D t- ,I"I,oN,-I^ INDEPENDENT ACCOUNTANT'S REPORT DN vAKL IF SIMIhLIN ' APPLYING AGREED-UPON PROCEDURES ' Governing Board South Coast Air Quality Management District Diamond Bar, CaEfonnia We have performed the procedures described in Attachment 1 to this report, which were agreed to by the South Coast Air Quality Management District (SCAQMD), solely to assist you with respect to determining whether automobile registration fee revenues (AB 2766 funds) distributed to the City of Palm Springs, California (City) for the year ended ' June 30, 2004 were spent on the reduction of air pollution from motor vehicles pursuant to the California Clean Air Act of 1988 or the SCAQMD's Air Quality Management Plan (AQMP) prepared pursuant to Article 5 of Chapter 5.5 of Part 3 of the California health and Safety Code (CHSC). The SCAQMD's management is responsible for use of AB 2766 funds in accordance with the cited criteria. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the ' American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described in Attachment 1, either for the purpose for which this report has been requested or any other purpose. ENGAGEMENT SCOPE. AND METHODOLOGY We performed the procedures in accordance with the requirements of our Contract No.07136. Our fieldwork began and was completed on February 15, 2007. Generally our procedures consisted of 1) obtaining an understanding of the City's accounting and financial reporting systems for the receipt and use of AB 2766 funds, 2) obtaining an understanding of the City's system of internal controls as they relate to the receipt and use of AB 2766 funds in order to establish the nature and extent of substantive testing of transactions, and 3) reviewing and analyzing, on a test basis, documentation supporting the receipt and use of AB 2766 Binds in accordance with the California Clean ' Air Act of 1988 under the provisions of the CHSC Section 44220(a). RESULTS OF THE PROCEDURES We found no exceptions in the application of the procedures. p 000034 ' 3 C rQ The can.Novor undnrn-omen inn valuo" 1 1 1 LIMITATIONS AND RESTRICTIONS 1 We were not engaged to and did not conduct an audit, the objective of which would be 1 the expression of an opinion, on the specified elements, accounts, or items. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you_ This report is intended solely for the information and use of the City's management and the SCAQMD and is not intended to be and should not be used by anyone other than 1 those specified parties. �7 X4- Los .Angeles, California 1 February 15, 2007 ! 1 ! 1 1 1 4 . oaaaa� ATTACHMENT 1 SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT CITY OF PALM SPRINGS LISTING OF AGREED-UPON PROCEDURES ' 1. We obtained an understanding of how the City of Palm Springs (City) accounts for ' AB 2766 funds, including whether AB 2766 funds were maintained in a separate fund or if there was a separate accounting of AB 2766 funds by another means. 2. We agreed the total of AB 2766 revenues for the period per the general ledger to the SCAQMD's record of disbursements_ We reconciled any differences. ' 3. We obtained prior year's audited fund balance, added receipts including interest, and subtracted disbursements and agreed the ending fund balance to the City's general ledger. We reconciled any differences. r4. We reconciled cash by obtaining the prior year's audited balance, added revenues, interest, payables and prior year's receivables, subtracted expenditures, receivables ' and prior year's payables. 5. We obtained an understanding of how the City allocates interest earnings and we recomputed the interest allocation. 6. We vouched AB 2766 project expenditures to determine allowability, reasonableness and adequacy of supporting documents in accordance with CHSC Section 44220(b). We determined that AB 2766 fund expenditures were incurred solely to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement and technical studies necessary for the implementation of the California Clean Air Act of 1988, if any. 7. We vouched accounts payable and iaterfund payables for AB 2766 funds as of June 30, 2004 and ensured that the related payables were allocable to AB 2766 funds and that the expenditures were incurred during the fiscal year ended June 30,2004, if any. S. We vouched AB 2766 payroll expenditures and related payroll registers and employee records, on a test basis, to verify hours worked, mathematical accuracy, salary rates and employment dates, if any. 9. We reviewed AB 2766 expenditures to verify, in accordance with CHSC Section 44233, that the City did not use more than 5% of AB 2766 fees distributed for administrative expenditures. 5 000006 ATTACHMENT 1 ' 10. We verified that the City has adopted an AB 2766 ordinance in accordance with CHSC Section 44243(b). 11. We obtained and reviewed the City's Comprehensive Annual Financial Report and Single Audit Report for the year ended June 30, 2004, we verified that the audits were performed by an independent certified public accountant and we identified any issues pertinent to the Air Quality Improvement Fund. ' 12. We reviewed financial, compliance and progress reports for the year ended June 30, 2004 to verify that the City had submitted them to the SCAQMD by the first Friday in ' February of each year. 1 1 1 1 1 1 ' 6