Proposal:

Final Resolution of Unresolved Findings and Recommendations in the Biennial Audit of AB 2766 Fee Revenue Recipients for FYs 1993-94 and 1994-95

Synopsis:

Over the past several weeks representatives of local governments, the auditors and AQMD staff have worked to resolve many of the AB 2766 audit findings. To date, 18 of the 21 local government findings which were reported to the Board on June 13, 1997 have been resolved and will not require further action. In light of this progress, staff is requesting that the remaining two unresolved findings originally set for a July 11, 1997 hearing be moved and combined with the one unresolved finding regarding Los Angeles County set for hearing at the August 8, 1997 Board meeting.

Committee:

Administrative, June 20, 1997, Recommended for Approval

Recommended Action:

Move the July 11, 1997 Public Hearing to August 8, 1997 for the City of West Covina and the East San Gabriel Valley Integrated Waste Management Joint Powers Authority Air Quality Group regarding final resolution of unresolved audit findings and recommendations.

James M. Lents, Ph.D.
Executive Officer

Health and Safety Code Section 44244.1 states that any agency receiving motor vehicle registration fee revenues shall, at least once every two years, be subject to an audit of each program or project funded. The biennial audit of the program covering the receipt and expenditures of these moneys for FYs 1993-94 and 1994-95 has been concluded with the audit reports transmitted to your Board at its June 13, 1997 meeting. The audit covered the AQMD’s use of the money, projects funded by the Mobile Source Air Pollution Reduction Review Committee, and the use of fee revenues by selected local governments. The audit reports on local governments listed sixteen local governments and one joint powers authority with noncompliant items. There were a total of 21 findings including two administrative findings and 19 monetary findings. Staff forwarded a copy of the final report to the audited local governments and has worked with cities and counties to resolve outstanding issues.

Audit Resolution

A Public Hearing to provide for resolution of all remaining audit findings was set for July 11, 1997, and at the request of Los Angeles County, an additional Public Hearing was set for August 8, 1997 to resolve the audit finding for the County. Since the June 13, 1997 Board meeting, staff working with the affected local governments has been able to resolve 18 of the 21 findings. Unresolved issues remain with the City of West Covina, the East San Gabriel Valley Integrated Waste Management Joint Powers Authority Air Quality Group, and the County of Los Angeles. To allow the City of West Covina and East San Gabriel Valley Integrated Waste Management Joint Powers Authority Air Quality Group additional time to obtain information for a resolution of the audit findings, staff recommends moving the Public Hearing scheduled for July 11, 1997 to August 8, 1997 and combining the two hearings.

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