Keep Monterey County Moving Measure X aka Transportation Safety & Investment Plan Audits Rita Goel-Director of Finance & Administration April 17, 2018

Measure X Audits Nov 2016-Ordinance 2016-01 Passed with 67.7% approval April 1, 2017-Tax levy began Revenue can only be used for transportation related projects in Monterey County

Measure X Audits TAMC has fiduciary responsibility for administration which includes financial audits Audits done to ensure compliance with the Ordinance 2016-01

Measure X Audits Has access to the annual audits Citizens Oversight Committee: Has access to the annual audits Authority to request/review specific financial information Provide input to assure that funds are being expended in accordance with the plan

Measure X Audits Independent Auditors What are GAAP GAAP standards Moss, Levy & Hartzheim GAAP standards Issued by Comptroller General of the United States What are GAAP Standards? Inquiries of management regarding the methods of preparing the information & comparing the information for consistency with management’s responses Moss, Levy & Hartzheim-also audit other trust funds for which TAMC has fiduciary responsibility GAAP-Generally Accepted Accounting Principles

Measure X Audits Audit process Examination on a test basis, evidence supporting amounts & disclosures in the financial statements Auditors use judgement on the number of transactions to be examined and tested ensure financial statements are: Free from errors No fraudulent reporting No misappropriation of assets No violation of laws, govt. regs & agreements Mention 1st quarter revenue shares will mostly likely come to TAMC. Details will need to be worked out.

Measure X Audits Audit process Auditors provide an opinion & written report on the financial statements to express whether fairly presented or not Also provide a report on internal controls and compliance with agreements, ordinance etc. Issue statement of fiduciary net position Statement of changes in fiduciary net position Mention 1st quarter revenue shares will mostly likely come to TAMC. Details will need to be worked out.

Measure X Audits Allocation of funds Administration costs Materials and Services 60% to local road maintenance 40% to regional projects and programs

Measure X Audits $4,942,342 $3,334,281 $1,608,281 Revenue April-June 2017 $4,942,342 Expenses & Payouts $3,334,281 Fund balance 6/30/2017 $1,608,281

Measure X Audits Findings Cost Look Ahead No instances of non compliance No matters involving internal controls No material weaknesses Cost No charge in FY 16/17 Look Ahead Maintenance of Effort audits start in FY 17/18 Sales Tax revenue firm (HdL)

Measure X Audits Questions?