City of Hercules
Hercules, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
on Measure B Transactions and Use Tax Revenues
For the Year Ended June 30, 2022
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Hercules
Hercules, California
We have performed the procedures enumerated below on the City of Hercules (t he “City”) in evaluating whether the Measure B – Transactions and Use Tax Revenues is in accordan ce with the provisions of this measure for the year ended June 30, 2022. The City is responsible for compliance with the Measure B – Transactions and Use Tax.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating whether the Measure B – Transactions and Use Tax revenues is in accordance with the provisions of this measure. The City is responsible for receipt of Measure B - Transactions and Use Tax Revenues and deposit of such proceeds into the City's General Fund. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the ends of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
1. We confirmed Measure B payments with the Californi a State Board of Equalization (“BOE”) and calculated variances to the receipts summarized per the general ledger of the City for the year ended June 30, 2022.
Findings: We traced from the BOE on-line confirmation to the City’s general ledger with a variance noted and details as below:
Date Posted to G /L Receipts per G /L Payments per BOE V ariance 08/04/2021* $ 190,077 $ 190,077 $ - 09/13/2021* 53,913 53,913 - 09/29/2021 242,061 242,061 - N/A** - 189,154 (189,154.00) 12/06/21 115,929 115,929 - 1/6/2022 181,314 181,314 - 2/1/2022 131,125 131,125 - 3/4/2022 193,070 193,070 - 4/14/2022 163,519 163,519 - 4/28/2022 107,075 107,075 - 6/8/2022 152,434 152,434 - 6/30/2022*** 521,141 521,141 - 2,051,658$ 2,240,812 $ (189,154) $ * The City accrue d $243,990 for the fiscal year ended June 30, 2021. These payments apply to part of that accrual.
** The City did not receive the payment from the State and requested the State to re-issue the check.
*** California Department of Tax and Fee Administration (CDTFA) confirmed $178,272, $126,798, and $216,071 were paid towards accruals subsequent to the year end.
To the Honorable Mayor and Members of City Council
of the City of Hercules
2. We traced th e proceeds of the tax levied and confirmed at procedure 1 to the City's General Fund for us e by the City, in a
ccordance with Ordinance 470 Sec 8-9. 12 Use of Tax Proceeds and Ordinance 481 Sec 8-9.12 Use of Tax Proceeds (amen
ds ordinance 470).
Findings:
Proceeds of taxes levied and confirmed under M easure B were paid/deposited into th e City’s General Fund for use by t
he City with no exceptions.
We were engaged by the City to perfo rm this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the revenue received by the City from Measure B – Transactions and Use Tax. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to m eet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and the management of the City of Hercules and is not intended to be and should not be used by anyone other than these specified parties.
Santa Ana, California
January 31, 2023