City of Culver City
Annual Financial Report of its
Proposition A Local Return Fund
Proposition C Local Return Fund
Measure R Local Return Fund
Measure M Local Return Fund
Transportation Development Act Article 3 Fund
As of and for the Years Ended June 30, 2025 and 2024
with Independent Auditor’s Report
City of Culver City
Table of Contents
PAGE
FINANCIAL SECTION
Independent Auditor’s Report 1
Proposition A Local Return Fund:
Basic Financial Statements:
Balance Sheets 4
Statements of Revenues, Expenditures and Changes in Fund Balance 5 Supplementary Information:
Schedule of Expenditures – Actual and Metro Approved Project Budget 6 Schedule of Capital Assets 7
Proposition C Local Return Fund:
Basic Financial Statements:
Balance Sheets 8
Statements of Revenues, Expenditures and Changes in Fund Balance 9 Supplementary Information:
Schedule of Expenditures – Actual and Metro Approved Project Budget 10 Schedule of Capital Assets 11
Measure R Local Return Fund:
Basic Financial Statements:
Balance Sheets 12
Statements of Revenues, Expenditures and Changes in Fund Balance 13 Supplementary Information:
Schedule of Expenditures – Actual and Metro Approved Project Budget 14 Schedule of Capital Assets 15
Measure M Local Return Fund:
Basic Financial Statements:
Balance Sheets 16
Statements of Revenues, Expenditures and Changes in Fund Balance 17 Supplementary Information:
Schedule of Expenditures – Actual and Metro Approved Project Budget 18 Schedule of Capital Assets 19
Transportation Development Act Article 3 Fund:
Basic Financial Statements:
Balance Sheets 20
Statement of Revenues, Expenditures and Changes in Fund Balance 21 Supplementary Information:
Schedule of Transportation Development Act Allocation for Specific Projects 22
Notes to Funds Financial Statements 23
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 28 City of Culver City
Table of Contents
PAGE
COMPLIANCE SECTION
Independent Auditor’s Report on Compliance and on Internal Control Over Compliance Required by the Guidelines 30
Compliance Matrix 33
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 40
EXIT CONFERENCE 44
FINANCIAL SECTION
1 Independent Auditor’s Report
To the Honorable Members of the City Council of the
City of Culver City, California and the
Los Angeles County Metropolitan Transportation Authority
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Proposition A Local Return Fund, the Proposition C Local Return Fund, the Measure R Local Return Fund, the Measure M Local Return Fund and the Transportation Development Act Article 3 Fund (collectively, the Funds) of the City of Culver City, California (the City) which comprise the Funds’ balance sheets as of June 30, 2025 and 2024, the related statements of revenues, expenditures and changes in fund balances for the years then ended, and the related notes to the Funds financial statements, as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Proposition A Local Return Fund, the Proposition C Local Return Fund, the Measure R Local Return Fund, the Measure M Local Return Fund and the Transportation Development Act Article 3 Fund of the City of Culver City, California as of June 30, 2025 and 2024, and the respective changes in financial position for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
2 Emphasis of Matter
As discussed in Note 2, the financial statements present only the Proposition A Local Return Fund, the Proposition C Local Return Fund, the Measure R Local Return Fund, the Measure M Local Return Fund and the Transportation Development Act Article 3 Fund of the City of Culver City, California, and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025 and 2024, and the changes in its financial position for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal con trol relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a h igh level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there i s a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
3 • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Supplementary Information
Our audits were conducted for the purpose of forming opinions on each of the Funds’ financial statements as a whole. The supplementary information identified in the table of contents is presented for purposes of additional analysis and is not a required pa rt of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the Funds’ basic financial statements. The information has b een subjected to the auditing procedures applied in the audit of the Funds’ basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to p repare the Funds’ basic financial statements or to the Funds’ basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to each of the Funds’ basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated December 18, 2025 on our consideration of the City’s internal control over the Funds’ financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over the Funds’ financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over the Funds’ financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over the Funds’ financial reporting and compliance.
Glendale, California
December 18, 2025
City of Culver City
Proposition A Local Return Fund
Balance Sheets
See notes to Funds financial statements.
4 2025 2024
ASSETS
Cash and investments $ - $ 17,717
Interest receivable 392 2,280
Total assets $ 392 $ 19,997
LIABILITIES AND FUND BALANCE
Liabilities
Due to General fund $ 392 $ -
Total liabilities 392 -
Fund balance
Restricted - 19,997
Total fund balance - 19,997
Total liabilities and fund balance $ 392 $ 19,997 June 30
City of Culver City
Proposition A Local Return Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
See notes to Funds financial statements.
5 2025 2024
Revenues
Proposition A $ 1,041,205 $ 1,064,235
Interest income 1,121 6,650
Investment gain 788 30,936
1,043,114 1,101,821
Expenditures
Culver City Municipal Bus Lines Operating Assistance 1,063,111 2,432,418 1,063,111 2,432,418
Deficiency of revenues over expenditures (19,997) (1,330,597) Fund balance at beginning of year 19,997 1,350,594 Fund balance at end of year $ - $ 19,997 Total revenues
Total expenditures
Years ended June 30
City of Culver City
Proposition A Local Return Fund
Supplementary Information
Schedule of Expenditures – Actual and Metro Approved Project Budget Year ended June 30, 2025
(With Comparative Actuals for 2024)
See independent auditor’s report.
6 Variance
Project Metro Positive 2024
Code Project Name Budget Actual (Negative) Actual
120 Culver City Municipal Bus Lines Operating
Assistance $ 2,797,280 $ 1,063,111 $ 1,734,169 $ 2,432,418 Total expenditures $ 2,797,280 $ 1,063,111 $ 1,734,169 $ 2,432,418 2025
City of Culver City
Proposition A Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2025
See independent auditor’s report.
7 Balance Balance
Year July 1, June 30,
Acquired Description 2024 Additions Deletions 2025
1998 CCMBL Facility $ 528,199 $ - $ - $ 528,199 2005 Recreational Van (Ford E350) 110,205 - - 110,205 Total $ 638,404 $ - $ - $ 638,404 City of Culver City
Proposition C Local Return Fund
Balance Sheets
See notes to Funds financial statements.
8 2025 2024
ASSETS
Cash and investments $ 337 $ -
Interest receivable - 1,921
Total assets $ 337 $ 1,921
LIABILITIES AND FUND BALANCE (DEFICIT)
Liabilities
Accounts payable $ - $ 13,284
Interest payable 337 -
Due to general fund - 205,146
Total liabilities 337 218,430
Fund balance (deficit)
Restricted - (216,509)
Total fund balance (deficit) - (216,509) Total liabilities and fund balance (deficit) $ 337 $ 1,921 June 30
City of Culver City
Proposition C Local Return Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
See notes to Funds financial statements.
9 2025 2024
Revenues
Proposition C $ 863,652 $ 882,758
Interest income - 6,347
Investment gain (loss) (1,609) 32,974
862,043 922,079
Expenditures
Various projects 645,534 2,541,869
645,534 2,541,869
Excess (deficiency) of revenues over expenditures 216,509 (1,619,790) Fund balance (deficit) at beginning of year (216,509) 1,403,281 Fund balance (deficit) at end of year $ - $ (216,509) Total expenditures
Years ended June 30
Total revenues
City of Culver City
Proposition C Local Return Fund
Supplementary Information
Schedule of Expenditures – Actual and Metro Approved Project Budget Year ended June 30, 2025
(With Comparative Actuals for 2024)
See independent auditor’s report.
10 Variance
Project Metro Positive 2024
Code Project Name Budget Actual (Negative) Actual
106 Culver City Paratransit Program $ 575,000 $ 574,386 $ 614 $ 312,500 109 Rideshare Program 35,000 23,704 11,296 19,961 120 Culver City Municipal Bus Lines Operating
Assistance 1,973,418 - 1,973,418 1,879,446 215 CCMBL Facility Reserve 150,000 - 150,000 150,000 302 Traffic Signal Battery Backup System - - - 150,000 303 Network-wide Signal System Synch 170,038 47,444 122,594 29,962 Total expenditures $ 2,903,456 $ 645,534 $ 2,257,922 $ 2,541,869 2025
City of Culver City
Proposition C Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2025
See independent auditor’s report.
11 Balance Balance
Year July 1, June 30,
Acquired Description 2024 Additions Deletions 2025
1998 CCMBL Facility $ 231,446 $ - $ - $ 231,446 2000 Bus Shelters 96,031 - - 96,031 2000 Paratransit Van 45,420 - - 45,420 2002 Paratransit Van 45,638 - - 45,638 2004 CCMBL Facility Improvements 94,613 - - 94,613 2006 CCMBL Facility Improvements 89,420 - - 89,420 2006 Bus Pads 46,000 - - 46,000 2006 CCMBL Facility Improvements 34,896 - - 34,896 2007 CCMBL Facility Improvements 16,522 - - 16,522 2009 CCMBL Facility Improvements 10,359 - - 10,359 2009 Braddock Drive Resurfacing 46,258 - - 46,258 2010 CCMBL Facility Improvements 50,901 - - 50,901 2013 CCMBL Facility Improvements 16,245 - - 16,245 2014 CCMBL Facility Improvements 20,932 - - 20,932 2015 CCMBL Facility Improvements 23,268 - - 23,268 2016 2 Customline Slide Gate Operator 24,934 - - 24,934 2016 Carpet at Transportation 17,415 - - 17,415 2016 Carpet at Transportation 5,916 - - 5,916 2017 6 Stertil-Koni Mobile Lifts 65,466 - - 65,466 2017 Gas Detector System 78,598 - - 78,598 2017 Stertil-Koni Diamond Heavy Duty Lift 39,995 - - 39,995 2017 Stertil-Koni Diamond Heavy Duty Lift 98,990 - - 98,990 2017 Install Heavy Duty Vehicle Lifts 95,095 - - 95,095 2018 Hirsch Pads 15,226 - - 15,226 2019 Steam Cleaner 15,318 - - 15,318 2019 Vehicle Wash Electrical 42,026 - - 42,026 2019 Safety Fall Protection System 8,875 - - 8,875 2019 Safety Fall Protection System 7,398 - - 7,398 2019 Safety Fall Protection System 8,387 - - 8,387 2019 Automatic Vehicle Wash System 38,000 - - 38,000 2020 EV Charging Stations 49,811 - - 49,811 2021 Low Profile Fall Protection System 8,050 - - 8,050 2022 Transportation Facility Improvement 25,434 - - 25,434 2022 Transportation Facility Electrification 79,102 - - 79,102 2023 Jetsort, 6 Coin dua Qtr Sorter 18,632 - - 18,632 2023 Bed Belt Conveyor 10,339 - - 10,339 2023 Incline Slider Bed Conveyor 8,819 - - 8,819 2023 Traffic Signal Battery Backup System 150,000 - - 150,000 2024 Traffic Signal Battery Backup System 150,000 - - 150,000 2024 Turn-Key Controls Upgrade 48,281 - - 48,281 2024 Signal Timing Project 29,962 - - 29,962 2025 Professional Services,424,PL008 - 11,913 - 11,913 2025 Professional Services,424,PL008 - 12,575 - 12,575 2025 Professional Services,424,PL008 - 14,396 - 14,396 2025 Professional Services,424,PL008 - 8,560 - 8,560 Total $ 2,008,018 $ 47,444 $ - $ 2,055,462 City of Culver City
Measure R Local Return Fund
Balance Sheets
See notes to Funds financial statements.
12 2025 2024
ASSETS
Cash and investments $ 1,128,742 $ 821,283
Interest receivable 5,599 5,386
Total assets $ 1,134,341 $ 826,669
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ - $ -
Total liabilities - -
Fund balance
Restricted 1,134,341 826,669
Total fund balance 1,134,341 826,669
Total liabilities and fund balance $ 1,134,341 $ 826,669 June 30
City of Culver City
Measure R Local Return Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
See notes to Funds financial statements.
13 2025 2024
Revenues
Measure R $ 647,620 $ 661,862
Interest income 26,556 11,011
Investment gain 11,351 19,039
685,527 691,912
Expenditures
Various projects 377,855 592,131
377,855 592,131
Excess of revenues over expenditures 307,672 99,781 Fund balance at beginning of year 826,669 726,888
Fund balance at end of year $ 1,134,341 $ 826,669
Years ended June 30
Total revenues
Total expenditures
City of Culver City
Measure R Local Return Fund
Supplementary Information
Schedule of Expenditures – Actual and Metro Approved Project Budget Year ended June 30, 2025
(With Comparative Actuals for 2024)
See independent auditor’s report.
14 Variance
Project Metro Positive 2024
Code Project Name Budget Actual (Negative) Actual
120 Transit Operations Assistance $ 300,000 $ - $ 300,000 $ 310,000 705 Culver City Street Improvements - 962 * (962) 73,479 806 MOVE Culver City Mobility Lane - 376,893 * (376,893) 208,652 Total expenditures $ 300,000 $ 377,855 $ (77,855) $ 592,131 * See Compliance Matrix and Schedule of Findings and Questioned Costs 2025
City of Culver City
Measure R Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2025
See independent auditor’s report.
15 Balance Balance
Year July 1, June 30,
Acquired Description 2024 Additions Deletions 2025
2011 Infrastructure P-863GG/JJ $ 531,942 $ - $ - $ 531,942 2011 Residential Overlay Project 120,620 - - 120,620 2011 Residential Overlay Project 81,018 - - 81,018 2011 Residential Overlay Project 60,968 - - 60,968 2012 Residential Overlay Project 53,432 - - 53,432 2013 Residential Overlay Project 428,325 - - 428,325 2014 Residential Overlay Project 263,570 - - 263,570 2017 Arterial Street Pavement Rehabilitation 136,478 - - 136,478 2017 CC Rehabilitation Project 498,658 - - 498,658 2018 Pavement Work 96,940 - - 96,940 2019 CC Rehabilitation Project 244,159 - - 244,159 2020 Artesial Street Pavement Rehab 1,637 - - 1,637 2021 Wash-Culver Pedestrian & Cyc Safety 117,161 - - 117,161 2021 Artesial Street Pavement Rehab 118,629 - - 118,629 2022 Wash-Culver Pedestrian & Cyc Safety 93,773 - - 93,773 2022 Artesial Street Pavement Rehab 17,691 - - 17,691 2022 Ped Improv-Intersects w/Bus Stops 5,775 - - 5,775 2023 Wash-Culver Pedestrian & Cyc Safety 27,889 - - 27,889 2023 Higuera Bridge Ramp-Cleanup-PZ964 158,999 - - 158,999 2023 Tactical Mobility Lane 19,495 - - 19,495 2024 2022 Pavement Rehab Project 73,479 - - 73,479 2024 Tactical Mobility Lane 264,903 - - 264,903 2024 Higuera Bridge Ramp-Cleanup-PZ964 38,629 - - 38,629 2025 Professional Services,431,PS017 - 1,800 - 1,800 2025 Professional Services,431,PS017 - 2,500 - 2,500 2025 Professional Services,431,PS017 - 5,500 - 5,500 2025 Professional Services,431,PS017 - 6,850 - 6,850 2025 Move Culver City 2023 Project,431,PS017 - 360,243 - 360,243 2025 Higuera St Bridge Replacement,431,PZ553 - 563 - 563 2025 Higuera St Bridge Replacement,431,PZ553 - 399 - 399 Total $ 3,454,169 $ 377,855 $ - $ 3,832,024 City of Culver City
Measure M Local Return Fund
Balance Sheets
See notes to Funds financial statements.
16 2025 2024
ASSETS
Cash and investments $ 2,696,758 $ 2,717,933
Interest receivable 18,899 17,715
Total assets $ 2,715,657 $ 2,735,648
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ 185,036 $ 15,591
Retention payable 83,659 -
Total liabilities 268,695 15,591
Fund balance
Restricted 2,446,962 2,720,057
Total fund balance 2,446,962 2,720,057
Total liabilities and fund balance $ 2,715,657 $ 2,735,648 June 30
City of Culver City
Measure M Local Return Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
See notes to Funds financial statements.
17 2025 2024
Revenues
Measure M $ 733,732 $ 747,383
Interest income 82,023 35,612
Investment gain 37,634 43,432
853,389 826,427
Expenditures
Various projects 1,126,484 403,795
1,126,484 403,795
Excess (deficiency) of revenues over expenditures (273,095) 422,632 Fund balance at beginning of year 2,720,057 2,297,425 Fund balance at end of year $ 2,446,962 $ 2,720,057
Years ended June 30
Total revenues
Total expenditures
City of Culver City
Measure M Local Return Fund
Supplementary Information
Schedule of Expenditures – Actual and Metro Approved Project Budget Year ended June 30, 2025
(With Comparative Actuals for 2024)
See independent auditor’s report.
18 Variance
Project Metro Positive 2024
Code Project Name Budget Actual (Negative) Actual
715 Traffic Signal Fiber Optic Upgrades $ 245,715 $ 16,701 $ 229,014 $ 37,584 730 Complete Streets Design Guidelines 34,982 28,062 6,920 34,982 780 Bicycle/Pedestrian Action Plan Implementation 74,473 19,248 55,225 274,366 805 Safer Fox Hills 308,046 197,687 110,359 -
840 MOVE Culver City - 864,786 * (864,786) 56,863 Total expenditures $ 663,216 $ 1,126,484 $ (463,268) $ 403,795 * See Compliance Matrix and Schedule of Findings and Questioned Costs 2025
City of Culver City
Measure M Local Return Fund
Supplementary Information
Schedule of Capital Assets
Year ended June 30, 2025
See independent auditor’s report.
19 Balance Balance
Year July 1, June 30,
Acquired Description 2024 Additions Deletions 2025
2022 Tactical Mobility Lane $ 1,141,202 $ - $ - $ 1,141,202 2022 Fox Hills Parking Supply Augment 11,067 - - 11,067 2023 Tactical Mobility Lane 700 - - 700 2023 Fox Hills Parking Supply Augment 110,178 - - 110,178 2023 Bicycle/Ped. Action Plan Implement 17,500 - - 17,500 2024 Bicycle/Ped. Action Plan Implement 103,657 - - 103,657 2024 Traffic Signal Fiber Optic Upgrades 37,585 - - 37,585 2024 Tactical Mobility Lane 75,645 - - 75,645 2024 Fox Hills Parking Supply Augment 170,709 - - 170,709 2025 10 Battery Backup System,435,PZ923 - 24,298 - 24,298 2025 Professional Services,435,PL015 - 2,359 - 2,359 2025 Professional Services,435,PL015 - 1,492 - 1,492 2025 Professional Services,435,PL015 - 4,648 - 4,648 2025 Professional Services,435,PL015 - 8,202 - 8,202 2025 Professional Services,435,PF025 - 1,218 - 1,218 2025 Professional Services,435,PF025 - 5,760 - 5,760 2025 Professional Services,435,PF025 - 7,920 - 7,920 2025 Professional Services,435,PF025 - 4,350 - 4,350 2025 E-Scooter Upgrade,435,PS017 - 7,172 - 7,172 2025 Move Culver City 2023 Project,435,PS017 - 385,617 - 385,617 2025 Move Culver City 2023 Project,435,PS017 - 224,352 - 224,352 2025 Move Culver City 2023 Project,435,PS017 - 72,631 - 72,631 2025 Dashboard subscription license,435,PS017 - 2,802 - 2,802 2025 Sensor maintenance & data feed,435,PS017 - 2,802 - 2,802 2025 Move Culver City 2023 Project,435,PS017 - 1,250 - 1,250 2025 Move Culver City 2023 Project,435,PS017 - 550 - 550 2025 Move Culver City 2023 Project,435,PS017 - 16,198 - 16,198 2025 Bike Signal Signs,435,PS017 - 624 - 624 2025 Move Culver City 2023 Project,435,PS017 - 3,350 - 3,350 2025 Mobility & Traffic Engineering,435,PZ923 - 52,485 - 52,485 2025 Mobility & Traffic Engineering,435,PZ923 - 64,980 - 64,980 2025 Rancho Higuera Traffic,435,PZ923 - 3,523 - 3,523 2025 Rancho Higuera Traffic,435,PZ923 - 9,500 - 9,500 2025 Move Culver City 2023 Project,435,PS017 - 1,950 - 1,950 2025 Move Culver City 2023 Project, 435,PS017 - 60,137 - 60,137 2025 Rancho Higuera Traffic ProfSvc,435,PZ923 - 36,719 - 36,719 Total $ 1,668,243 $ 1,006,889 $ - $ 2,675,132 City of Culver City
Transportation Development Act Article 3 Fund
Pursuant to Public Utilities Code Section 99234
Balance Sheets
See notes to Funds financial statements.
20 2025 2024
ASSETS
Cash $ - $ 4,036
Total assets $ - $ 4,036
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ - $ -
Total liabilities - -
Fund balance
Restricted - 4,036
Total fund balance - 4,036
Total liabilities and fund balance $ - $ 4,036 June 30
City of Culver City
Transportation Development Act Article 3 Fund
Pursuant to Public Utilities Code Section 99234
Statements of Revenues, Expenditures and Changes in Fund Balance
See notes to Funds financial statements.
21 2025 2024
Revenues
Intergovernmental Allocations:
Article 3 $ 40,754 $ 46,961
Interest income 48 -
40,802 46,961
Expenditures
Maintenance for Culver City's Portion of
the Ballona Creek Project 39,968 42,925
39,968 42,925
Excess of revenues over expenditures 834 4,036 Other financing use
Return of Funds to Metro 4,870 -
4,870 -
Change in fund balance (4,036) 4,036
Fund balance at beginning of year 4,036 -
Fund balance at end of year $ - $ 4,036 Years ended June 30
Total revenues
Total expenditures
Total other financing use
City of Culver City
Transportation Development Act Article 3 Fund
Pursuant to Public Utilities Code Section 99234
Supplementary Information
Schedule of Transportation Development Act Allocation for Specific Projects Year ended June 30, 2025
See independent auditor’s report.
22 Program Unexpended Project
Project Description Year Allocations Expenditures Allocations Status
Local Allocations:
Maintenance for Culver City's Portion of
the Ballona Creek Project 2025 $ 40,754 $ 39,968 $ 786 Ongoing $ 40,754 $ 39,968 786
Interest earned 48
Fund balance at beginning of year 4,036
Funds returned to Metro (4,870)
Fund balance at end of year $ -
Totals to Date
Totals
City of Culver City
Notes to Funds Financial Statements
Years ended June 30, 2025 and 2024
23 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fund Accounting
The operations of the Proposition A Local Return Fund (PALRF), the Proposition C Local Return Fund (PCLRF) , the Measure R Local Return Fund (MRLRF) , the Measure M Local Return Fund (MMLRF) and the Transportation Development Act Article 3 Fund (TDAA3F) (collectively, the Funds) are accounted for in separate sets of self -balancing accounts that comprise their assets, liabilities, fund balance, revenues and expenditures.
PALRF and PCLRF represent 25% and 20%, respectively, of the ½ cent Proposition A and ½ cent Proposition C sales taxes which are distributed to the jurisdictions within Los Angeles County based on population and must be used exclusively for transportation related programs and projects.
MRLRF is derived from 15% of the county-wide ½ cent Measure R sales tax which is distributed to the jurisdictions within Los Angeles County based on a per capita basis and must be used exclusively for transportation purposes.
MMLRF is derived from 17% of the county-wide ½ cent Measure M sales tax which is distributed to the jurisdictions within Los Angeles County based on a per capita basis and must be used exclusively for transportation purposes.
TDAA3F is a Special Revenue Fund that accounts for the City's share of the Transportation Development Act Article 3 allocations which are legally restricted for specific purposes.
Basis of Accounting and Measurement Focus
The PALRF, PCLRF, MRLRF, MMLRF and TDAA3F are reported as Special Revenue Funds of the City and are accounted for using the modified accrual basis of accounting.
Revenues are recognized when they become "susceptible to accrual”, that is, measurable and available to finance expenditures of the current period. Expenditures are recorded when the liability is incurred.
Special Revenue Funds are reported on a spending or "financial flow" measurement focus. This means that generally , only current assets, current liabilities and deferred inflows and outflows of resources are included on their balance sheets. Statements of revenues, expenditures and changes in fund balances for Special Revenue Funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Budgets and Budgetary Accounting
The budgeted amounts presented in this report for comparison to the actual amounts are based on budgets approved by Metro and are presented in accordance with accounting principles generally accepted in the United States of America.
City of Culver City
Notes to Funds Financial Statements
Years ended June 30, 2025 and 2024
24 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair Value Measurement
In accordance with GASB Statement No. 72, Fair Value Measurement and Application, the City categorizes its fair value measurement within the fair value hierarchy that is based on the valuation inputs used to measure the fair value of the investment.
Level 1 inputs are quoted prices in active markets for identical investments; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Accordingly, the City reports its investments at fair value and recognizes unrealized gain (loss) on investments.
Refer to the City’s 2025 Annual Comprehensive Financial Report (ACFR) for detailed disclosures regarding the City’s investments policy and fair value measurement disclosures.
Fund Balance Reporting
Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions , establishes the fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.
The PALRF, PCLRF, MRLRF, MMLRF and TDAA3F report the following fund balance classification as of June 30, 2025 and 2024:
• Restricted - Amounts that are constrained for specific purposes, which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. The use of the Funds’ remaining fund balances are restricted for projects approved by Metro.
Information regarding the fund balance reporting policy adopted by the City is described in the City’s ACFR.
NOTE 2 ANNUAL FINANCIAL STATEMENTS
The financial statements reflect only the financial position and results of operations of the PALRF, PCLRF, MRLRF, MMLRF and TDAA3F, and do not purport to, and do not present fairly the City’s financial position as of June 30, 2025 and 2024, and the changes in its financial position for the years then ended in accordance with accounting principles generally accepted in the United States of America.
City of Culver City
Notes to Funds Financial Statements
Years ended June 30, 2025 and 2024
25 NOTE 3 PROPOSITION A AND PROPOSITION C LOCAL RETURN COMPLIANCE
REQUIREMENTS
The Proposition A Ordinance requires that Local Return (LR) funds be used exclusively to benefit public transit. Expenditures related to fixed route and paratransit services, Transportation Demand Management, Transportation Systems Management and fare subsidy programs that exclusively benefit transit are all eligible uses of Proposition A LR funds. Proposition A LR funds may also be traded with other Jurisdictions in exchange for general or other funds.
The Proposition C Ordinance directs that LR funds also be used to benefit public transit, as described above, but provides an expanded list of eligible project expenditures including Congestion Management Programs, bikeways and bike lanes, street improvements supporting public transit service, and Pavement Management System projects. Proposition C LR funds cannot be traded.
Proposition A and Proposition C LR funds must be expended within three years of the last day of the fiscal year in which funds were originally allocated.
In accordance with Proposition A and Proposition C Local Return Program Guidelines, funds received pursuant to these guidelines may only be used for Proposition A and Proposition C Local Return approved programs. See accompanying Compliance Matrix.
NOTE 4 MEASURE R LOCAL RETURN COMPLIANCE REQUIREMENTS
The Measure R Ordinance specifies that LR funds be used exclusively for transportation purposes.
Measure R LR funds must be expended within five years of the first day of the fiscal year in which funds were originally allocated or received.
In accordance with Measure R Local Return Program Guidelines , funds received pursuant to these guidelines may only be used for Measure R Local Return approved programs. See accompanying Compliance Matrix.
NOTE 5 MEASURE M LOCAL RETURN COMPLIANCE REQUIREMENTS
Measure M was approved by the voters of Los Angeles County on November 8, 2016 to improve transportation and ease traffic congestion consistent with the Los Angeles County Traffic Improvement Plan Ordinance approved by the Metro Board of Directors on June 23, 2016. The Measure M Ordinance specifies that LR funds be used exclusively for transportation purposes.
City of Culver City
Notes to Funds Financial Statements
Years ended June 30, 2025 and 2024
26 NOTE 5 MEASURE M LOCAL RETURN COMPLIANCE REQUIREMENTS (CONTINUED)
Measure M LR funds must be expended within five years of the first day of the fiscal year in which funds were originally allocated or received.
In accordance with Measure M Local Return Program Guidelines , funds received pursuant to these guidelines may only be used for Measure M Local Return approved programs. See accompanying Compliance Matrix.
NOTE 6 TRANSPORTATION DEVELOPMENT ACT COMPLIANCE REQUIREMENTS
In accordance with Public Utilities Code Section 99234, funds received pursuant to this Code’s section may only be used for activities relating to pedestrians and bicycle facilities. See accompanying Compliance Matrix.
NOTE 7 CASH AND INVESTMENTS
The PALRF, PCLRF, MRLRF, MMLRF and TDAA3F cash balances were pooled with various other City funds for deposit and investment purposes. The share of each fund in the pooled cash account was separately maintained and interest income was apportioned to the participating funds based on the relationsh ip of their average quarterly balances to the total of the pooled cash and investments.
Please refer to the City’s ACFR for a full description of risks relating to cash and investments.
NOTE 8 PROPOSITION A DISCRETIONARY INCENTIVE PROGRAM GRANT
The City received Proposition A Discretionary Incentive Program grant amounting to $70,197 and $73,233 for the years ended June 30, 2025 and 2024, respectively, which represents additional funds received from Metro for participating in the subregional paratransit services program. The City has fully used this grant to operate a demand- response paratransit Dial -A-Ride program available to eligible d isabled residents known as the Culver City Community Paratransit Program.
The Proposition A Discretionary Incentive Program Grant was recorded under the City’s Paratransit Fund and therefore was not reported in the accompanying PALRF financial statements.
City of Culver City
Notes to Funds Financial Statements
Years ended June 30, 2025 and 2024
27 NOTE 9 TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUND REVENUE
ALLOCATION
The revenue allocations for the years ended June 30, 2025 and 2024 consisted of the following:
NOTE 10 TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS RESERVED
In accordance with TDA Article 3 (SB821) Guidelines, funds which will not be spent during the fiscal year have been placed on reserve in the Local Transportation Fund (LTF) account with the County Auditor -Controller to be drawn down whenever the funds become eligible for a specific project and an approved drawdown request is received by Metro. As of June 30, 2025 and 2024, the City has funds on reserve as follows:
During FY2024/25, the City returned unspent funds of $4,870 from prior allocations to TDA Article 3 funds on reserve: FY2023/24 allocation of $4,081 and FY2024/25 allocation of $789. Subsequently, the City drew down FY2023/24 allocation of $4,081 as shown in Note 9, leaving FY2024/25 allocation of $4,870 on reserve as of June 30, 2025.
For FY 2024/25, any TDA Article 3 funds left on reserve for FY 2020/21 or prior, are subject to lapse if not claimed by the City by June 30, 2025. There were no funds that lapsed in FY 2024/25.
NOTE 11 SUBSEQUENT EVENTS
The City has evaluated events subsequent to June 30, 2025 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through December 18, 2025 , the date the financial statements were available to be issued. Based upon this evaluation, it was determined that no Subsequent events occurred that require d recognition or additional disclosure in the financial statements.
2025 2024
FY 2023/24 allocation $ 4,081 $ 46,961
FY 2024/25 allocation 36,673 -
$ 40,754 $ 46,961
2025 2024
FY 2023/24 allocation $ - $ -
FY 2024/25 allocation 4,870 -
$ 4,870 $ -
28 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the Honorable Members of the City Council of the
City of Culver City, California and the
Los Angeles County Metropolitan Transportation Authority
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Proposition A Local Return Fund, the Proposition C Local Return Fund, the Measure R Local Return Fund, the Measure M Local Return Fund and the Transportation Developme nt Act Article 3 Fund (collectively, the Funds) of the City of Culver City, California (the City) as of and for the year ended June 30, 2025, and the related notes to the Funds financial statements, and have issued our report thereon dated December 18, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the Funds’ financial statements, we considered the City’s internal control over the Funds’ financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances fo r the purpose of expressing our opinions on the Funds’ financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given th ese limitations, during our audit , we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
29 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s Proposition A Local Return Fund, Proposition C Local Return Fund, Measure R Local Return Fund, Measure M Local Return Fund and Transportation Development Act Article 3 Fund financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Glendale, California
December 18, 2025
COMPLIANCE SECTION
30 Independent Auditor’s Report on Compliance
and on Internal Control Over Compliance Required by the Guidelines
To the Honorable Members of the City Council of the
City of Culver City, California and the
Los Angeles County Metropolitan Transportation Authority
Report on Compliance
Opinion
We have audited the City of Culver City, California’s (the City) compliance with the Proposition A and Proposition C Local Return Guidelines, Measure R Local Return Guidelines, Measure M Local Return Guidelines, Transportation Development Act Article 3, and the Los Angeles County Metropolitan Transportation Authority’s Funding and Allocation Guidelines for Transportation Development Act Article 3 Bicycle and Pedestrian Funds (collectively, the Guidelines) for the year ended June 30, 2025.
In our opinion, the City of Culver City, California complied, in all material respects, with the compliance requirements of the Guidelines for the year ended June 30, 2025.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards ); and the Guidelines. Our responsibilities under those standards and the Guidelines are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provi de a basis for our opinion on compliance with the Guidelines. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
31 Responsibilities of Management for Compliance
Management is responsible for the City’s compliance with the Guidelines and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or agreements applicable to the City’s Proposition A Local Return Fund, Proposition C Local Return Fund, Measure R Local Return Fund, Measure M Local Return Fund and Transportation Development Act Article 3 Fund.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonabl e assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards , and the Guidelines will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the Guidelines as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Guidelines, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Gui delines, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed instance s of noncompliance with the requirements, which are described in the accompanying Schedule of Findings and Questioned Costs as Findings #2025-001 to #2025-0022. Our opinion is not modified with respect to these matters.
32 Government Auditing Standards requires the auditor to perform limited procedures on the City’s responses to the noncompliance finding identified in our compliance audit described in the accompanying Schedule of Findings and Questioned Costs. The City’s responses were not subjected to the auditing procedures applied in the audit of compliance, and accordingly, we express no opinion on the responses.
Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance th at might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, as discussed below, we did identify certain deficiency in internal control over compliance that we consider to be significant deficiencies.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with the Guidelines on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with the Guidelines will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with the Guidelines that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with gove rnance. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as Finding s #2025-001 and #2025-002 to be significant deficiencies.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the Cit y’s responses to the internal control over compliance findings identified in our compliance audits described in the accompanying Schedule of Findings and Questioned Costs. The Cit y’s responses were not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Guidelines. Accordingly, this report is not suitable for any other purpose.
Glendale, California
December 18, 2025
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
33 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
A. Proposition A and Proposition C Local
Return Funds
1. Uses the State Controller’s
Uniform System of Accounts and
Records or has established a
separate Proposition A and
Proposition C Local Transit
Assistance Account for Local
Return purposes. X
2. Revenues received including
allocations, project generated
revenues and interest income was
properly credited to the Proposition
A and/or Proposition C Local
Return Account. X
3. Funds were expended with Metro’s
approval and were not substituted
for property tax. X
4. Timely use of funds. X
5. Administrative expenses are within
the 20% cap.
X
There was no
administrative
expenditure charged to
PALRF and PCLRF
during FY2024/25.
6. Expenditures that exceeded 25%
of approved project budget have
approved amended Project
Description Form (Form A) or
electronic equivalent. X
7. Annual Project Update Report
(Form B) or electronic equivalent
was submitted on time. X
8. Annual Expenditure Report (Form
C) or electronic equivalent was
submitted on time. X
9. Pavement Management System
(PMS) is in place and being used
for Street Maintenance or
Improvement Projects
Expenditures. X
10. Local Return Account is credited
for reimbursable expenditures. X
11. Where Proposition A funds were
given, loaned or exchanged by one
jurisdiction to another, the
receiving jurisdiction has credited
its Local Return Account with the
funds received. X
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
34 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
A. Proposition A and Proposition C Local
Return Funds
12. Self-Certification was completed
and submitted for Intelligent
Transportation Systems projects
and elements. X
13. A separate account was
established for Capital reserve
funds, Capital reserve was
approved by Metro and current
status is reported in the Annual
Project Update (Form B) or
electronic equivalent. X
14. Recreational transit form was
submitted on time.
15. Fund exchanges (trades, loans, or
gifts) were approved by Metro. X
16. Proposition C Local Return Funds
were used to augment, not
supplant existing local revenues
being used for road improvement
purposes. X
17. All on-going and carryover projects
were reported on Form B or
electronic equivalent. X
18. Cash or cash equivalents are
maintained. X
19. Accounting procedures, record
keeping, and documentation are
adequate. X
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
35 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
B. Measure R Local Return Fund
1. Funds were expended for
transportation purposes. X
2. Separate Measure R Local Return
Account was established. X
3. Revenues received including
allocations, project generated
revenues and interest income was
properly credited to the Measure R
Local Return Account. X
4. Funds were expended with Metro
approval. X See Finding #2025-001
5. Funds were not substituted for
property tax and are in compliance
with the Maintenance of Effort. X
6. Timely use of funds. X
7. Administrative expenses are within
the 20% cap.
X
There was no
administrative
expenditure charged to
MRLRF during
FY2024/25.
8. Expenditure Plan (Form One or
electronic equivalent) was
submitted timely. X
9. Annual Expenditure Report (Form
Two or electronic equivalent) was
submitted timely. X
10. Where funds expended were
reimbursable by other grants or
fund sources, the reimbursement
was credited to the Local Return
Account upon receipt of the
reimbursement. X
11. Where Measure R funds were
given, loaned or exchanged by one
jurisdiction to another, the
receiving jurisdiction has credited
its Local Return Account with the
funds received. X
12. A separate account was
established for Capital reserve
funds and Capital reserve was
approved by Metro. X
13. Funds were used to augment, not
supplant existing local revenues
being used for transportation
purposes unless there is a fund
shortfall. X
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
36 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
B. Measure R Local Return Fund
14. Recreational transit form was
submitted on time. X
15. Fund exchanges (trades, loans, or
gifts) were approved by Metro. X
16. Accounting procedures, record
keeping, and documentation are
adequate. X
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
37 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
C. Measure M Local Return Fund
1. Funds were expended for
transportation purposes. X
2. Separate Measure M Local Return
Account was established. X
3. Revenues received including
allocations, project generated
revenues and interest income was
properly credited to the Measure M
Local Return Account. X
4. Funds were expended with Metro
approval. X See Finding #2025-002
5. Funds were not substituted for
property tax and are in compliance
with the Maintenance of Effort. X
6. Timely use of funds. X
7. Administrative expenses are within
the 20% cap.
X
There was no
administrative
expenditure charged to
MMLRF during
FY2024/25.
8. Expenditure Plan (Form M-One or
electronic equivalent) was
submitted timely. X
9. Expenditure Report (Form M-Two
or electronic equivalent) was
submitted timely. X
10. Where funds expended were
reimbursable by other grants or
fund sources, the reimbursement
was credited to the Local Return
Account upon receipt of the
reimbursement. X
11. Where Measure M funds were
given, loaned or exchanged by one
jurisdiction to another, the
receiving jurisdiction has credited
its Local Return Account with the
funds received. X
12. A separate account was
established for Capital reserve
funds and Capital reserve was
approved by Metro. X
13. Funds were used to augment, not
supplant existing local revenues
being used for transportation
purposes unless there is a fund
shortfall. X
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
38 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
C. Measure M Local Return Fund
14. Recreational transit form was
submitted on time. X
15. Fund exchanges (trades, loans, or
gifts) were approved by Metro. X
16. Accounting procedures, record
keeping, and documentation are
adequate. X
City of Culver City
Compliance Matrix
Year ended June 30, 2025
See independent auditor’s report on compliance.
39 Compliance Requirements In Compliance Questioned
Costs
If no, provide details and
management response. Yes No N/A
D. Transportation Development Act Article
3 Fund
1. Timely use of funds. X
2. Expenditures were incurred for
activities relating to pedestrian and
bicycle facilities and amenities. X
3. Annual Claim Form was submitted
timely. X
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
City of Culver City
Schedule of Findings and Questioned Costs
Year ended June 30, 2025
40 MRLRF: Finding #2025-001
Compliance Reference Section B (II) Expenditure Plan (Form One) of Measure R Local Return Program Guidelines states that, “To maintain legal eligibility and meet Measure R LR program
compliance requirements, Jurisdiction shall submit to Metro an Expenditure Plan (Form One), annually, by August 1st of each year.
“Expenditure Plan (Form One) provides a listing of projects funded with Measure R LR funds along with estimated
expenditures for the year. For both operating and capital projects, Part I is to be filled out. For capital projects (projects over $250,000), P art II is required. Pursuant to AB2321, Metro will provide LR funds to a capital project or program sponsor who submits the required expenditure
plan.”
Condition The City claimed expenditures under the following projects prior to approval from Metro:
a. Project code 705, Culver City Street Improvements,
totaling $962; and
b. Project code 806 MOVE Culver City Mobility Lane,
totaling $376,893.
Although we found the expenditures to be eligible for Local Return funding, these projects had no prior approval from Metro.
This is a repeat finding from the prior year.
Cause The project s were inadvertently excluded from the submitted budget request. Due to the resignation of a key staff member, the project was not added to the FY 202 4- 2025 budget request.
Effect The City claimed expenditure s totaling $ 377,855 of Measure R LR funds prior to approval by Metro. The City did not comply with the Guidelines.
Recommendation We recommend that the City establish procedures and internal controls to ensure that approval is obtained from Metro prior to spending on Measure R-funded projects.
City of Culver City
Schedule of Findings and Questioned Costs
Year ended June 30, 2025
41 MRLRF: Finding #2025-001 (Continued)
Management’s Response The City submitted a budget request via LRMS on December 11, 2025. Moving forward, the City will ensure that budget requests are made timely to Metro and match the City's approved CIP budget.
Finding Corrected During the
Audit
Retroactive approval of the said project s was obtained via LRMS on December 1 6, 2025. No additional follow -up is required.
City of Culver City
Schedule of Findings and Questioned Costs
Year ended June 30, 2025
42 MMLRF: Finding #2025-002
Compliance Reference Section XXV Administrative, Reporting Requirements, Expenditure Plan (8/1 Table) of the Measure M Local
Return Guidelines states that, “To maintain legal eligibility and meet Measure M LR program compliance
requirements, Jurisdiction shall submit to Metro an
Expenditure Plan (8/1 Table), annually, by August 1st of each year”.
“Expenditure Plan (Form M -One) provides a listing of
projects funded with Measure M LR funds along with
estimated expenditures for the year. For both operating and capital projects, Part I is to be filled out. Part II is to be filled out for capital projects (projects over $250,000). Metro will provide LR funds to a capital project or program sponsor who submits the required expenditure plan”.
Condition The City claimed expenditure s under Measure M Project code 840, MOVE Culver City, totaling $ 864,786, prior to approval from Metro.
Although we found the expenditures to be eligible for Local Return funding, th is project had no prior approval from Metro.
This is a repeat finding from the prior year.
Cause The project was inadvertently excluded from the submitted budget request. Due to the resignation of a key staff
member, the project w as not added to the FY 202 4-2025 budget request.
Effect The City claimed expenditures totaling $ 864,786 of Measure M LR funds prior to approval by Metro. The City did not comply with the Guidelines.
Recommendation We recommend that the City establish procedures and internal controls to ensure that approval is obtained from Metro prior to spending on Measure M-funded projects.
City of Culver City
Schedule of Findings and Questioned Costs
Year ended June 30, 2025
43 MMLRF: Finding #2025-002 (Continued)
Management’s Response The City submitted a budget request via LRMS on December 11, 2025. Moving forward, the City will ensure that budget requests are made timely to Metro and match the City's approved CIP budget.
Finding Corrected During the
Audit
Retroactive approval of the said project was obtained via LRMS on December 1 6, 2025. No additional follow -up is required.
EXIT CONFERENCE
City of Culver City
Exit Conference
Year ended June 30, 2025
44 An exit conference was held on December 17, 2025 with the City of Culver City representatives. Those in attendance were:
Vasquez and Company LLP representatives:
Erica Ong – Senior Audit Manager
Mary Tanglao – Audit Supervisor
City of Culver City representatives:
Lisa Soghor – Director of Finance
Iris Kym – Accounting & Investment Manager
Robin Martin – Accountant II
Matters discussed:
Results of the audit disclosed issues of noncompliance with the Guidelines.
A copy of this report was forwarded to the following City of Culver City representatives for comments prior to the issuance of the final report:
Lisa Soghor – Chief Financial Officer
Iris Kym – Accounting & Investment Manager
Robin Martin – Accountant II
Diana Cheng – Chief Transportation Officer
www.vasquez.cpa
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