Courtney Ruby, CPA, CFE
AUDIT TEAM
Assistant City Auditor, Mike Edmonds, CIA
Performance Auditor, Jennifer Lim, CIA
PERFORMANCE AUD I T OF TH E L I BRARY
SERV I CES RETENT I ON AND EN HANCEMENT
ACT & THE 20 1 8 OAKLAND PUBL I C
L I BRARY PRESERVAT I ON ACT FOR
F I SCAL YEARS 20 1 7 - 1 8 AND 20 1 8 - 1 9
CITY AUDITOR
FEBRUARY 11, 2021
Photo Source: National Library Week April 7-13, 2019 Press Kit Image
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Phone: (510) 238-3378
Email: [email protected]
www.OaklandAuditor.com or Text AUDITOR to 22828
Oakland’s City Auditor is an elected official and works for, and reports to, the residents of Oakland. The Auditor’s job is to provide oversight to the City’s activities. The Auditor has the authority to access and audit City financial and administrative records, plus the policies and procedures of all City agencies and departments.
To make sure this work is done objectively and without b ias, the City Auditor is not connected to any other City department s and has no day -to-day management responsibilities for the City of Oakland.
This autonomy allows for independent analyses, ensuring program management, tax dollars and other resources serve the public interest.
@OaklandAuditor
@OaklandAuditor
Courtney A. Ruby, CPA, CFE
City Auditor
(510) 238-3378
FAX (510) 238-7640
TDD (510) 238-3254
www.oaklandauditor.com
February 11, 2021
HONORABLE MAYOR
HONORABLE CITY COUNCIL
HONORABLE CITY ATTORNEY
HONORABLE LIBRARY ADVISORY COMMISSION
CITY ADMINISTRATOR
DIRECTOR TURBAK
RESIDENTS OF OAKLAND
OAKLAND, CALIFORNIA
RE: Performance Audit of the Library Services Retention and Enhancement Act (Measure Q) and the 2018 Oakland Public Library Preservation Act (Measure D) for Fiscal Years 2017-18 and 2018-19
Dear Mayor Schaaf, City Council President Bas, Members of the City Council, City Attorney Parker, Members of the Library Advisory Commission, City Administrator Reiskin, Director Turbak, and Oakland Residents:
The voters approved two separate measures providing supplemental funding to the Oakland Public Library. The measures are the Library Services Retention and Enhancement Act (Measure Q) and the 2018 Oakland Public Library Preservation Act (Measure D).
Measure Q was first approved by voters in 1994 as Measure O, and then renewed and amended as Measure Q in 2004 and expires in 2024. Measure D was approved in June 2018 for a period of 20 years.
Measure Q provides guidelines for spending the tax revenue intended to enhance Library services through 12 objectives outlined within this report. Similarly, Measure D’s objectives are intended to maintain, protect, and improve direct library services.
The objectives of the audit were to determine whether 1) the Library spent tax proceeds as intended by the respective measures, 2) the City met the minimum General Fund appropriation requirement, 3) the Library met the Reserve Fund requirement for Measure
Honorable Mayor, Honorable City Council, Honorable City Attorney, Honorable Library Advisory Commission, City Administrator, Director Turbak, and Oakland Residents Performance Audit of the Library Services Retention and Enhancement Act (Measure Q) and the 2018 Oakland Public Library Preservation Act (Measure D) for Fiscal Years 2017-18 and 2018-19 February 11, 2021
Q, and 4) determine the reasons why the Library needed to place Measure D on the ballot. Finally, we also assessed whether the Library implemented the recommendations from the City Auditor’s 2018 audit report.
We confirmed the Library spent Measure Q and D proceeds in accordance with their respective requirements, met the minimum General Fund appropriation requirement, and met the Measure Q Reserve Fund requirement. Additionally, the audit found the Library implemented the two recommendations from the 2018 audit of Measure Q.
Due to expressed concerns by the Library Commission (Commission) and members of the community, we expanded the audit scope to analyze the various reasons for the Library’s declining financial position that created the need to place Measure D on the 2018 ballot.
Our analysis confirmed the combined support of the annual Measure Q parcel tax and the General Fund over time was inadequate to provide the necessary financial support for the Library, leading to the depletion of available Measure Q funds. To ensure the Commission has sufficient information to provide adequate financial oversight, we recommend the Library provide the Commission with regular briefings on revenues, expenditures, fund balances, and financial projections. The Administration fully embraces the recommendation and their response is included at the end of the audit report.
Public trust is the foundation upon which the legitimacy of public institutions is built.
The passage of ballot measures, the entrustment of Commissions to oversee operations, and the performance of audits assuring compliance, especially when audit recommendations are embraced by the auditee, secures that very trust from the public.
To that end, this audit found the Library in compliance with both Measure Q and Measure D and secured the Administration’s full commitment to enhance the Library Commission’s ability to provide oversight of the Library. This is what we endeavor to accomplish with every audit we undertake.
Sincerely,
COURTNEY A. RUBY, CPA, CFE
City Auditor
Executive Summary ........................................................................................................................... 1 Introduction and Background ........................................................................................................... 3 Objectives, Scope, and Methodology ............................................................................................... 5 Statement of Compliance ................................................................................................................. 6 Audit Results ..................................................................................................................................... 7 Finding 1. The Library spent Measures Q and D proceeds in accordance with their respective requirements .............................................................................................................. 7 Finding 2. The City met the minimum General Fund appropriation requirement ..................... 8 Finding 3. The Library met the Measure Q Reserve Fund requirement ..................................... 9 Finding 4. The Measure Q parcel tax and the General Fund over time was inadequate to provide the necessary financial support for the Library .......................................... 10 Recommendation ............................................................................................................................ 13 Follow-Up on 2018 Audit Report Recommendations ..................................................................... 14 Appendix – Measures Q and D Parcel Tax Rate by Parcel Type ..................................................... 15 City Administration’s Response ...................................................................................................... 17 The City Administrator's Response ........................................................................................... 17 City Administration’s Recommendation Implementation Plan ................................................ 18
1 The Library Services Retention and Enhancement Act (Measure Q) and Oakland Public Library Preservation Act (Measure D) require the City Auditor to annually audit the Oakland Public Library (Library) to determine if the Library has complied with the requirements of both measures that impose parcel taxes to raise revenues to fund library services.
Oakland voters approved two separate measures providing supplemental funding to the Library. The measures are the Library Services Retention and Enhancement Act (Measure Q) and the 2018 Oakland Public Library Preservation Act (Measure D). Measure Q was first approved by voters in 1994 as Measure O, and then renewed and amended as Measure Q in 2004 and expires in 2024. Measure D was approved in June 2018 for a period of 20 years.
Both measures impose an annual parcel tax to raise revenue to maintain and enhance Oakland’s libraries. Alameda County (County) assesses and collects the parcel taxes for both measures and remits the tax proceeds to the City.
Measures Q and D require the City Auditor to perform regular audits affirming the City is adhering to the Measure’s requirements which will ultimately maintain, protect and improve library services.
The objectives of the audit were to determine whether 1) the Library spent tax proceeds as intended by the respective measures, 2) the City met the minimum General Fund appropriation requirement, 3) the Library met the Reserve Fund requirement for Measure Q, and 4) determine the reasons why the Library needed to place Measure D on the ballot.
Finally, we also assessed whether the Library implemented the recommendations from the City Auditor’s 2018 report.
2 The scope of the audit includes Measure Q proceeds from FY 2017-18 and FY 2018-19, and Measure D proceeds from FY 2018-19. The audit also reviewed the Library’s financial information from FY 2006-07 through FY 2017-18 and followed up on recommendations from the City Auditor’s 2018 report.
1. The Library spent Measure Q and D proceeds in accordance with their respective requirements.
2. The City met the minimum General Fund appropriation requirement.
3. The Library met the Measure Q Reserve Fund requirement.
4. The Measure Q parcel tax and the General Fund over time was inadequate to provide the necessary financial support for the Library.
Finding 4 Recommendation
To enhance the Library Commission’s ability to monitor the Library’s on-going financial condition, the Library should provide and brief the Library Commission, at least annually, on key financial information, including, but not limited to, the following:
• Year-end fund balance reports for Measures Q and D
• Changes in fund balances for Measures Q and D
• 5-year forecasts on estimated revenues, expenditures, and changes to fund balances • Annual Measures Q and D revenues, as well as General Fund support • Annual Measures Q and D expenditures
• Variance analysis to identify differences in planned versus actual expenditures • Variance analysis to identify changes in revenue
The City Auditor’s previous audit of Measure Q, issued in May 2018, included two recommendations. As part of the audit, we assessed whether the City and the Library addressed the recommendations. We concluded the City and the Library addressed both recommendations.
3 Oakland Public Library (Library) provides a variety of services promoting literacy and reading, as well as meeting Oakland’s (City) cultural, business, and recreational needs. The Library system includes the Main Library, 16 branches, a Second Start Adult Literacy Program, the Tool Lending Library, and the African-American Museum and Library.
Oakland voters approved two separate measures providing supplemental funding to the Library.
The measures are the Library Services Retention and Enhancement Act (Measure Q) and the 2018 Oakland Public Library Preservation Act (Measure D). Measure Q was first approved by voters in 1994 as Measure O, and then renewed and amended as Measure Q in 2004, and expires in 2024.
Measure D was approved in June 2018 for a period of 20 years.
Both measures impose an annual parcel tax to raise revenue to maintain and enhance Oakland’s libraries. Alameda County (County) assesses and collects the parcel taxes for both measures and remits the tax proceeds to the City. Parcel tax rates are noted in the Appendix.
Exhibit 1
As Exhibit 1 above shows, the City received nearly $15.6 million in Measure Q proceeds in FY 2017-18 and another $16.1 million in FY 2018-19. The City also collected nearly $11 million in Measure D proceeds in FY 2018-19, the first year the measure was in effect.
$15,576,731 $16,145,592
$10,993,591
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
FY 2017-18 FY 2018-19
Measures Q and D Tax Revenue
for FY 2017-18 and FY 2018-19
Measure Q Measure D
4 Measure Q provides guidelines for spending the tax revenue, intended to enhance Library services through its 12 objectives. Similarly, Measure D’s objectives are intended to maintain, protect and improve direct library services. Exhibit 2 below lists the objectives of Measures Q and D.
Exhibit 2
Objectives of Measures Q and D
1. Keep neighborhood libraries open a
minimum of six days per week and
increase weekend hours.
2. Retain availability of library services at
the Main Library seven days per week.
3. Enhance and expand library collections,
including acquisition of new books and
materials.
4. Continue to provide educational and
cultural programs for youth in every
library, including after school tutoring,
literacy, and children’s programs.
5. Expand library-based programs in
support of literacy, lifelong learning, and
information technology.
6. Operate an African-American museum
and library program.
7. Increase joint educational activities with
local schools, including library services.
8. Retain Children’s Librarians in every
library facility.
9. Operate the joint school-public library in
East Oakland.
10. Upgrade and enhance information
technology in all libraries and improve
access to computers and technology in
the libraries.
11. Support after school homework
programs.
12. Support teen programs.
1. Increase public library availability and
resources for Oakland’s students and
residents.
2. Enhance direct library services providing
regular open hours at City libraries,
maintaining staffing at levels to retain
and expand hours at libraries.
3. Upgrade and enhance existing library
facilities expanding free access to
computers, the internet, and technology.
4. Maintain and protect existing direct
library services and provide future
improvements for library operations and
resources that directly serve library
patrons.
5. Support the equitable disbursement of
library services, programs, staffing
facilities and resources in order to
decrease disparities in life outcomes of
marginalized communities and to
facilitate equity of opportunity
throughout Oakland.
Measures Q and D require a panel of citizens, the Library Advisory Commission (Commission), to provide oversight. The Measures also require the City Auditor to perform regular audits affirming the City is adhering to the Measures’ requirements.
5 The objectives of the audit were to determine whether 1) the Library spent tax proceeds as intended by the respective measures, 2) the City met the minimum General Fund appropriation requirement, 3) the Library met the Reserve Fund requirement for Measure Q, and 4) determine the reasons why the Library needed to place Measure D on the ballot. Finally, we also assessed whether the Library implemented the recommendations from the City Auditor’s 2018 audit report.
The scope of the audit includes Measure Q proceeds from FY 2017-18 and FY 2018-19, and Measure D proceeds from FY 2018-19. The audit also reviewed the Library’s financial information from FY 2006-07 through FY 2017-18 and followed up on recommendations from the City Auditor’s 2018 report.
1. Reviewed Measures Q and D ballot language and relevant policies and procedures.
2. Followed up on previous recommendations.
3. Reviewed legal opinions by the City Attorney.
4. Analyzed Library revenue and expenditure reports and other financial reports to determine whether the Reserve Fund and General Fund appropriation requirements were met.
5. Reviewed a sample of Measures Q and D expenditures totaling approximately $351,000 to determine whether these expenditures were in accordance with the measures.
Additionally, the audit reviewed a $1.3 million expenditure for Measure D election costs.
6. Interviewed Library staff and a Library Advisory Commissioner.
7. Reviewed the Library Advisory Commission’s meeting agendas and minutes.
8. Performed a walk-through of the Main Library and performed site visits at selected libraries.
9. Reviewed the Library’s programs, services, and achievements related to the Measures Q and D objectives.
10. Analyzed financial reports, including fund balance and Measure Q and General Fund revenue and expenditure reports from FY 2006-07 to FY 2017-18, to analyze the Library’s financial condition.
6 We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.
7 The Library spent $17.2 million of Measure Q funds in FY 2017-18 and $13.3 million in FY 2018-19.
The Library spent another $8.5 million of Measure D funds in FY 2018-19. Exhibit 3 below shows how the Library spent Measures Q and D monies in FY 2017-18 and FY 2018-19.
Exhibit 3
As Exhibit 3 above shows, the Library spent Measure Q and Measure D funds on salaries and benefits of Library staff, on-line database services, books and periodical services, supplies, equipment, office supplies, administrative costs associated with Alameda County collecting the parcel taxes, and other miscellaneous costs such as printing, conferences, and advertising.
Measure D funds were also used to pay $1.3 million1 in election costs for the June 2018 election.
The election costs were particularly high because Measure D was the only City item on the ballot.
The Measure allows the tax revenue collected to be used to reimburse the City for costs incurred by the election. Thus, Measure D funds absorbed all the City’s June 2018 election costs.
The Library’s expenditures for Measures Q and D were consistent with the objectives of the measures.
1 These costs are included in Exhibit 3 for FY 2018-19 in the “Other” category.
$-
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
FY 2017-18 (Measure Q) FY 2018-19 (Measures Q & D)
Measures Q and D Expenditures
FY 2017-18 and FY 2018-19
Alameda County Administrative Costs
Other
Supplies, Equipment, Office Supplies
Books, Periodical Subscriptions, On-Line Database Service Payroll
8 Measure Q requires the City to appropriate at least $9,059,989 annually from the City’s General Fund to the Library. When Measure D passed in June 2018, it required the City to appropriate at least $12,992,267 from the City’s General Fund to the Library, superseding the Measure Q minimum appropriation amount. Exhibit 4 below shows the amount of the General Fund appropriation for the Library for FY 2017-18 and FY 2018-19, as well as the minimum appropriation required by Measures Q and D.
Exhibit 4
As Exhibit 4 above shows, the City appropriated $13,204,352 in FY 2017-18, exceeding the Measure Q General Fund appropriation requirement by $4.1 million. In FY 2018-19, the City appropriated $13,150,366, exceeding the Measure D minimum requirement of $12,992,267 by $158,000. As previously stated, the Measure D minimum appropriation requirement supersedes the Measure Q minimum requirement.
The City met the minimum General Fund appropriation requirement in both fiscal years.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
FY 2017-18 FY 2018-19
General Fund Appropriations to the Library
FY 2017-18 and FY 2018-19
General Fund Appropriation Minimum GF Funding - Measure Q Minimum GF Funding - Measure D
9 Measure Q requires the Library to maintain a reserve of five percent of the previous fiscal year’s tax revenue. The Library is required to deposit the reserve monies into a separate fund and these monies can only be used for purposes set forth in the measure and the City Council must approve the use of any Reserve Fund monies. Measure D does not have a Reserve Fund requirement.
Exhibit 5 below shows the tax collections from the previous fiscal years and the required reserve amount.
Exhibit 5
Measure Q Reserve Fund Requirements for FY 2017-18 and FY 2018-19
FY 2017-18 FY 2018-19
Tax Collections from Previous
Fiscal Year
$15,086,174 $15,576,731
Required Reserve Fund $754,309 $778,837
Actual Reserve Fund Amount $759,066 $783,771
As Exhibit 5 above shows, the Library was required to reserve $754,309 and deposited $759,066, exceeding the requirement by $4,757 in FY 2017-18. In FY 2018-19, the Library was required to reserve $778,837 and deposited $783,771, exceeding the requirement by $4,934.
The amounts the Library deposited met Measure Q’s five percent Reserve Fund requirement.
10 The Library Commission expressed a concern the Library was operating under an alleged budget deficit and requested this matter be included in the audit. The official June 2018 voter guide included a rebuttal to Measure D citing the Library had overspent its budget and was operating with a deficit. The purpose of the following information is to provide context to the Library’s financial situation that led to the City placing Measure D on the ballot.
The City placed Measure D on the ballot in June 2018 as a parcel tax to provide funds for maintaining and enhancing services at the Library. In FY 2018-19, Measure D raised approximately $11 million.
Our analysis confirmed the combined support of the annual Measure Q parcel tax and the General Fund over time was inadequate to provide the necessary financial support for the Library, leading to the depletion of available Measure Q funds. The depletion of the available Measure Q funds is attributed to several factors including:
• In response to the 2008-09 economic downturn, the City reduced the General Fund contribution to the Library to the minimum amount of $9,059,989, as Measure Q specifies. This required minimum General Fund support of $9,059,989, is based on the City’s FY 2000-01 General Fund support to the Library.
• Measure Q revenue did not keep pace with rising expenses due to inflation. According to the Bay Area Council Economic Institute, the cost of living in the Bay Area rose 78 percent between 2000 and 2015. Measure Q tax rates can be increased based on the San Francisco Bay Area’s consumer price index but cannot exceed more than five percent annually. Yet, the tax rates for Measure Q only rose approximately 25 percent from 2004 to 2015. • In FY 2013-14 the Library’s personnel cost increased by 11.46 percent from the previous year. This was the only double digit increase in personnel costs from FY 2009-10 to FY 18- 19, with most other years increasing by 5 percent or less. This significant increase is largely attributed to increasing retirement costs. On April 17, 2013, CalPERS adopted a new amortization and smoothing policy to recognize investment gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. This action resulted in the City’s annual retirement contributions to CalPERS increasing by 19.5 percent in FY 2013-14.
• The City’s allocation of Internal Service Fund (ISF) costs to the Library increased dramatically from $1.9 million in FY 2009-10 to $4.4 million in FY 2018-19, an increase of 132 percent in less than 10 years. The City allocates ISF costs to each City department to
11 recover indirect service costs, such as general facilities support costs. The Library’s General Fund support, which is limited to the minimum amount specified in Measure Q, pays for the Library’s ISF costs. Thus, the Library’s fixed General Fund support has paid for an increasingly larger burden of the ISF expenditures. For perspective, the ISF expenditures allocated to the Library in FY 2000-01, when the General Fund minimum was established, was $869,398, and accounted for approximately 10 percent of the City’s General Fund support to the Library. In comparison, in FY 2018-19, the Library’s General Fund support paid for $4.4 million in ISF expenditures and accounted for approximately 34 percent of the of the City’s General Fund support to the Library.
• Beginning in FY 2008-09, the City began using Measure Q monies to pay for a greater share of the Library’s overall costs. In FY 2013-14, the City transferred $2.9 million in the Measure Q fund balance to balance the Library’s budget. By the end of the fiscal year, the Measure Q fund balance dropped from $5.2 million to $2.9 million in the next fiscal year.
In FY 2017-18, just prior to the passage of Measure D, the Measure Q fund balance dropped to a deficit of $386,000. Exhibit 6 below shows the Measure Q fund balance from FY 2006-07 to FY 2017-18.
Exhibit 6
As Exhibit 6 above shows, the Measure Q fund balance grew consistently from $1.3 million in FY 2006-07 to $5.2 million FY 2012-13. In FY 2013-14, however, the Measure Q fund balance declined by $2.4 million and eventually declined to a negative fund balance of $386,000 in FY 2017-18.
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Measure Q Fund Balance
from FY 2006-07 through FY 2018-19
12 As stated previously, the significant drop in the City’s General Fund contribution to the Library was one of the significant factors causing the drop in the Measure Q fund balance. Exhibit 7 below compares the General Fund support to the Measure Q support for the Library for the period FY 2006-07 through FY 2018-19.
Exhibit 7
As Exhibit 7 above shows, the City’s General Fund support was a higher percentage of total support for the Library in FY 2006-07 and FY 2007-08, compared to Measure Q, than any of the next 11 fiscal years. From FY 2009-10 through FY 2014-15, the City’s General Fund support was at or around the minimum of $9,059,989 allowed under Measure Q.
Beginning in FY 2008-09 through FY 2017-18, the amount of Measure Q revenue exceeded the General Fund support for the Library. From FY 2008-09 through FY 2017-18, the Measure Q support for the Library averaged $14.8 million annually, or 59 percent of combined General Fund and Measure Q expenditures. During the same time period, the General Fund support for the Library averaged $10.3 million annually, or 41 percent of combined General Fund and Measure Q expenditures.
Our analysis confirmed the combined support of the annual Measure Q parcel tax and the General Fund over time was inadequate to provide the necessary financial support for the Library, 0%
10%
20%
30%
40%
50%
60%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Comparison of General Fund Expenditures to Measure Q Expenditures from FY 2006-07 through FY 2018-19
General Fund Expenditures Measure Q Expenditures
13 leading to the depletion of available Measure Q funds and the need to place Measure D on the ballot.
The Library Commission’s oversight includes fiscal oversight and reviews of the use of the Measures Q and D funds. To enhance the Library Commission’s ability to monitor the Library’s on- going financial condition, the Library should provide and brief the Library Commission, at least annually, on key financial information, including but not limited to the following:
• Year-end fund balance reports for Measures Q and D
• Changes in fund balances for Measures Q and D
• 5-year forecasts on estimated revenues, expenditures, and changes to fund balances • Annual Measures Q and D revenue, as well as General Fund support • Annual Measures Q and D expenditures
• Variance analysis to identify differences in planned versus actual expenditures • Variance analysis to identify changes in revenue
14 The previous audit of Measure Q, issued in May 2018, covered FY 2013-14 through FY 2016-17 and included two recommendations. The recommendations and the implementation status are described below.
The previous audit reported Measure Q monies were used to pay for Internal Service Fund (ISF) expenditures in FY 2013-14 and FY 2014-15. The City Attorney issued a legal opinion in 2008 on how the Measure Q funds could be used and concluded that funds cannot be used to pay for more than the actual cost of the service. The audit concluded that the expenditures may not have conformed to the requirements of Measure Q.
Accordingly, the audit recommended that the City develop a plan to restore funds if expenditures were determined to exceed actual costs. The administration’s response stated that all ISF expenditures were for actual costs at the Library facilities. Further, the City opted to use the General Fund to pay for all Internal Service Fund expenditures to avoid any perceived issues. This audit confirmed that Measure Q funds were not used to pay for ISF for the two fiscal years audited. Thus, the City has fully addressed this recommendation.
The previous audit also recommended documenting financial controls over establishing the minimum appropriation each year to confirm the appropriation is accurately recorded in the City’s financial system and the requirements of Measure Q are always met. The City agreed to include additional language in the adopted budget to ensure the City meets the minimum General Fund appropriation requirements. This audit confirmed that this language was included in the City’s most recent adopted budget. Thus, the City has fully addressed this recommendation.
15 Parcel Type Parcel Rate for
FY 2017-18
Parcel Rate for
FY 2018-19
Parcel Rate for
FY 2018-19
Single Family $101.63 $104.90 $75.00
Multiple Residential $69.42 $71.66 $51.24
Non-Residential Parcels $52.05 $53.73 Various rates
16 This page intentionally left blank
CITY OF OAKLAND
CITY HALL • 1 FRANK H. OGAWA PLAZA • OAKLAND, CALIFORNIA 94612 Office of the City Administrator (510) 238 -3301
Edward D. Reiskin FAX (510) 238-2223
City Administrator TDD (510) 238-3254
February 1, 2021
The Honorable Courtney Ruby
Oakland City Auditor
1 Frank Ogawa Plaza, 4th Floor
Oakland, CA 94612
RE: City Administrator’s Response to the Audit of Measures Q and D Library Services Dear City Auditor Ruby:
The City Administrator’s Office and the Finance Department appreciate the Audit of Measures Q and D Library Services Retention and Enhancement Act and the 2018 Oakland Public Library Preservation Act Fiscal Years 2017-18 and 2018-19 which finds that:
1. The Library spent Measures Q and D proceeds in accordance with their respective requirements.
2. The City met the minimum requirement for the General Fund appropriation requirement.
3. The Library met the Measure Q reserve fund requirement.
4. The auditor recommendations from the previous audit were met.
Attached is management’s response to the recommendation for improved ease of oversight for the Library Advisory Commission. I want to thank you and your staff for the open communication during this audit.
Management was kept up to date on all progress. This valuable service keeps the City running smoothly and efficiently.
Sincerely,
Edward D. Reiskin
City Administrator
cc: Margaret L. O’Brien, Finance Director
Attachment: City Administration’s Recommendation Implementation Plan Matrix 17 Office of the City Auditor
4 To enhance the Library Commission’s ability to
monitor the Library’s on-going financial
condition, the Library should provide and brief
the Library Commission, at least annually, on key
financial information including but not limited to
the following:
• Year-end fund balance reports for
Measures Q and D
• Changes in fund balances for Measures Q
and D
• 5-year forecasts on estimated revenues,
expenditures, and changes to fund
balances
• Annual Measures Q and D revenues, as
well as General Fund support
• Annual Measures Q and D expenditures
• Variance analysis to identify differences
in planned versus actual expenditures
• Variance analysis to identify changes in
revenues
The Library will provide and brief the
Library Commission, at least annually,
on key financial information including
but not limited to the following:
• Year-end fund balance reports
for Measures Q and D
• Changes in fund balances for
Measures Q and D
• 5-year forecasts on estimated
revenues, expenditures, and
changes to fund balances
• Annual Measures Q and D
revenues, as well as General
Fund support
• Annual Measures Q and D
expenditures
• Variance analysis to identify
differences in planned versus
actual expenditures
• Variance analysis to identify
changes in revenues
Library Director and
Library Fiscal Officer
At least annually on a
date approved by the
Library Commission
18