Item Coversheet

Agenda Item 5.

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TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Memorandum
To: 

Executive Committee

From:

Michael Zeller, Director of Programming & Project Delivery

Meeting Date:

May 1, 2019

Subject:

Measure X Annual Audit Results for 2017/18

RECOMMENDED ACTION:
RECEIVE an update on the results of the Measure X annual audit and compliance reporting for 2017/18.
SUMMARY:
The purpose of the Measure X annual audit is to confirm that the funding recipients --TAMC, the County of Monterey and the twelve incorporated cities -- have complied with the voter-approved requirements specified in Ordinance 2016-01 for the Transportation Safety and Investment Plan.
FINANCIAL IMPACT:
Approved by the 69% of the voters in 2016, Measure X was projected to generate an estimated $20 million annually, for a total of $600 million over thirty years.  Revenues have been collected since April, 2017, and in fact, the receipts for fiscal year 2017/18 totaled $28,026.311. The funding source is a retail transactions and use tax of 3/8 cents. The revenue from the sales tax measure can only be used to fund transportation safety and mobility projects in Monterey County.  A maintenance of effort requirement exists to assure that the cities and county do not use Measure X funding to backfill prior levels of transportation expenditures. 
DISCUSSION:

The Transportation Agency has fiduciary responsibility for the administration of the voter-approved Transportation Safety and Investment Plan (Measure X) funds.  Each jurisdiction entered into a tax sharing agreement with the Transportation Agency in order to receive their share of Measure X Local Streets & Roads revenues.  In exchange, these agreements require the jurisdictions to submit audit reports annually to the Transportation Agency detailing the steps taken to comply with the implementing ordinance.

 

The first  full year of Measure X reporting, for fiscal year 2017/18, was due on December 31, 2018. As this was the first year of the independent audits’ requirements, there has been a learning curve for all entities involved.  As of April 23, 2019, of the thirteen recipient jurisdictions, eight have fully complied and five have only partially complied  with the independent audit requirements. Below is a chart detailing the reporting status of each jurisdiction.  At this time, staff is continuing to work with the non-compliant jurisdictions to ensure all reporting materials are submitted.  Staff will then evaluate this year’s process and develop a set of recommend changes to help clarify the requirements and avoid reporting delinquencies in the future.

 

City (or County)

Funds Received

Reports Submitted on time?

Annual Program Compliance Report

Maintenance

of Effort Documented

5-Year Program of Projects

Independent Financial Audit

Pavement

Management Report

Independent Auditor Compliance Letter

Monterey County

$7,212,614

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Carmel-by-the-Sea

$195,926

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Del Rey Oaks

$71,397

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Gonzales

$229,707

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Greenfield

$426,723

Late

Yes

Yes

Yes

Yes

Yes

Yes

King City

$388,534

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Marina

$670,802

Late

Yes

Incomplete

Yes

Yes

Yes

No

Monterey

$1,027,838

Yes

Yes

Yes

Yes

Yes

Yes

No

Pacific Grove

$557,922

Yes

Yes

Incomplete

Yes

Yes

Yes

No

Salinas

$4,247,511

Yes

Yes

Yes

Yes

Yes

Yes

No

Sand City

$28,228

Late

Yes

Yes

Yes

Yes

Yes

Yes

Seaside

$1,007,912

Late

Yes

Incomplete

Yes

Yes

Yes

No

Soledad

$569,545

Late

Yes

Yes

Yes

Yes

Yes

Yes

TOTAL Local Agencies:

$16,634,659

5 Late

All Compliant

3 Non-compliant

All Compliant

All Compliant

All Compliant

5 Non-compliant

 

In addition to the local agency audits, TAMC was also audited for compliance with the Measure X requirements.  The Transportation Agency for Monterey County financial audit found no instances of noncompliance that are required to be reported under Government Auditing Standards, nor did they note any matters involving the internal control over financial reporting and its operation that they consider to be material weaknesses. 

 

Staff has provided this audit information to the Measure X Oversight Committee for its review.  The Committee prepared its annual audit report based on this information, and will be making a presentation to the TAMC Board in May, in accordance with its oversight duties as specified in the Measure X Ordinance and policies.