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HomeMy WebLinkAboutCC AG PKT 2005-08-08 #H . . 6-' AGENDA REPORT DATE: August 8, 2005 TO: Honorable Mayor and Council Members THRU: John B. Bahorski, City Manager FROM: Pamela Arends -King, Director of Administrative Services/Treasurer SUBJECT: Evaluation of Monthly Investment Report and Investment Policy SUMMARY OF REQUEST: Staff requests Council receive and file report. BACKGROUND: Moreland & Associates, Inc., the independent audit firm conducting the annual audit prepared a report evaluating the Monthly Investment Report and the City's Investment Policy. The agreed -upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants. Attached is the report submitted to the City by the auditors with a list of the procedures performed and the related results. The auditors compared the investments to the California Government Code Section 16429.1 and 53601 and noted no exceptions and they compared the investment policy to ascertain that only investments authorized by Government Code Sections 16429.1 and 53601 were included and noted no exceptions. The only exception the auditors noted was the Treasurer's Report was not submitted to the City Council within thirty days. The reason the Treasurer's Report was not submitted within thirty days was due to the cancellation of the second council meeting of the month. To avoid this situation, if the second council meeting of the month is cancelled, staff will submit the Treasurer's Report to the Council with their weekly reports and have a copy of the Treasurer's Report available to the public in the City Clerk's office. The Treasurer's Report will be included on the first council meeting of the following month to be adopted and approved by the Council. FISCAL IMPACT: There is no fiscal impact. Agenda Item /y RECOMMENDATION: Receive and file report. • 9a-44 is --, Pamela Arends -King Director of • dministrative Services/Treasurer NO t • D APP ' U ( ED: ti 4 , 1' i , Pt Jo i B. Bahorski C Manager 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 M oreland & e JP (949) 221 -0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752 -3390 June 15, 2005 The Honorable City Council of the City of Seal Beach, California Independent Accountants' Report on Applying Agreed -Upon Procedures We have performed the procedures enumerated below which were agreed to by the City Council and management of City of Seal Beach, California solely to assist you in evaluating the Monthly Investment Report for the month ended April 30, 2005 for compliance with the applicable provisions of the California Government Code and with the City's investment policy for fiscal year 2004 -2005. The management of the City of Seal Beach is responsible for the Monthly Investment Report for the month ended April 30, 2005 and the City's investment policy. This agreed -upon procedures engagement was performed 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 this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures performed and the related results are as follows: 1. We obtained a copy of the City's Monthly Investment Report for the month of April 2005 and compared the investments listed in the report to the types of investments authorized by the City's investment policy for fiscal year 2004 -2005. Finding: No exceptions were noted as a result of the procedure applied. 2. We compared the investments listed on the City's Monthly Investment Report for the month of April 2005 to the types of investments authorized by California Government Code Sections 16429.1 and 53601. Finding: No exceptions were noted as a result of the procedure applied. 3. We read the City's Statement of Investment Policy for fiscal year 2004 -2005 to ascertain that only investments authorized by Government Code Sections 16429.1 and 53601 are included. Finding: No exceptions were noted as a result of the procedure applied. The Honorable City Council of the City of Seal Beach, California June 15, 2005 Page 2 4. We read the City's Statement of Investment Policy for fiscal year 2004 -2005 to ascertain the City's compliance with Government Code Section 53601 with respect to dollar, percentage, maturity and quality limitations. Finding: No exceptions were noted as a result of our procedures. 5. We read the City's Monthly Investment Report for the month of April 2005 to ascertain if it contained the information/data required by Government Code Section 53646 and met the timing requirements of Government Code Section 53646, as follows: a. Was submitted within 30 days following the end of the quarter. b. Included the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and monies held by the City. c. Included those funds under management of contracted parties (fiscal agents, trustees, etc.). d. Included market value (and source) as of the date of the report for all securities held by the City or under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund. e. Stated compliance of the portfolio to the investment policy of the City. f. Included a statement addressing the ability of the City to meet the pool's expenditure requirements for the next six months. g. Included the most recent statements from the Local Agency Investment Fund and the County Investment Pools, in lieu of the information required by (b) and (d) above for City investments that have been in those pools. Finding: We were unable to determine the date the April 2005 Monthly Investment Report was prepared. We noted that the Monthly Investment Report for the month of April 2005 had not been submitted to City Council within the required 30 -day period. 6. We compared the investments listed in the Monthly Investment Report for the month of April 2005 to the prohibited investments listed in Government Code Section 53601.6. Finding: No exceptions were noted as a result of the procedure applied. The Honorable City Council of the City of Seal Beach, California June 15, 2005 Page 3 We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the Monthly Investment Report dated April 30, 2005. 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 Council and management of the City of Seal Beach, California and is not intended to be and should not be used by anyone other than these specified parties. 6.0 #2‘V.Per-d, .