PRESENTATIONS
Proposed Ordinance No. 2450
Regulation/Inspection of
Alcohol & Tobacco Sales Establishments
Agenda
Item #2
Regulation
History
Ordinance No. 2299 – July 18, 2013
• Single-serve alcoholic beverages prohibited
Ordinance No. 2324 – November 10, 2014
• Additional off-site alcohol regulations & distance
standards
Ordinance No. 2339 – September 17, 2015
• Added tobacco product and paraphernalia
requirements
Basis for
Amendment
Lack of compliance monitoring process
• No established process to ensure V.M.C. compliance
New State laws (SB 793 & AB 935)
• Flavored tobacco sales prohibited throughout
California
Planning Commission Recommendation
• New tobacco/tobacco paraphernalia requirements
and alcohol standards w/monitoring procedures
Public
Outreach
3 Planning Commission Reviews
Business Owner Notice
Community Input
Public Notice
Amendment
Overview
Updates existing operating standards and introduces
new operating/performance standards addressing:
• Property maintenance and site upkeep
• Tobacco/tobacco paraphernalia display area
• Exterior alcohol and tobacco signage
Prohibits the sale of drug paraphernalia & flavored
tobacco
Requires annual compliance inspections and licensing
Maintains single-serve alcoholic beverage allowances
for nonconforming businesses
Existing
Regulations
Alcohol Sales
• Conditional Use Permit (CUP) required
• Separation standards within 600 ft. of sensitive
land uses
• Finding of Public Convenience or Necessity (FPCN)
• Operational Standards / Prohibited Items
Tobacco Sales
• Operational Standards / Prohibited Items
• Prohibited as a Primary Use
New &
Updated
Regulations
Alcohol Sales
• Designates most non-conforming alcoholic beverage sales businesses as “Deemed Approved Establishments”
• Updated training requirements
• Subject to initial and annual compliance inspections
• Violation & monitoring schedule implemented
Tobacco Sales
• Tobacco Retailer License required for most non-conforming businesses
• Updated operational standards and prohibited items
• Subject to initial and annual compliance inspections
• Violation & monitoring schedule implemented
Example
Implementation
(Nonconforming
Businesses)
Notification
• 90-day compliance notice upon effective date of ordinance Compliance Inspection
• Within 90-day compliance period
Compliance Re-inspection
• 15-days to correct violations
Business License Update/Revision
• Passed Compliance Inspection
Annual Monitoring
• With Business License Renewal
Example
Implementation
(New Businesses)
Entitlement
• Conditional Use Permit required
Business License Application
• Deemed Approved information
Compliance Inspection
• 30-days prior to Business License
Compliance Re-inspection
• 15-days to correct violations
Business License Issuance & Annual Monitoring
• Passed Compliance Inspection required annually
Implementation
Overview
Enforcement Schedule
• New Businesses
¾ Upon effective date of Amendment
• Non-Conforming Businesses (Deemed Approved)
¾ On effective date of ordinance with 90-day
compliance period
• Compliant Businesses
¾ Annually with Business License renewal period
Questions?
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City of Victorville
June 30, 2023
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Outline
• Independent Auditors’ Report
• Report on Internal Control
• Communication to Those Charged with Governance
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Independent Auditors’ Report
• Audit of the financial statements for the year ended
June 30, 2023
• Unmodified opinion for the City for the year ended
June 30, 2023
• We conducted our audit in accordance with
auditing standards generally accepted in the United
States of America (GAAS) and Government Auditing
Standards (GAS)
• Audit evidence is sufficient and appropriate to
provide a basis for our audit opinions
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Independent Auditors’ Report
• Management is responsible for preparation and fair
presentation of the financial statements and for
internal controls over those financial statements
• Auditors’ objective is to obtain reasonable
assurance about whether the financial statements,
as a whole, are free from material misstatement
and to issue a report with this opinion
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Independent Auditors’ Report
• An audit in accordance with GAAS and GAS
includes:
– Maintaining professional skepticism
– Identifying and assessing risks of material misstatement of the financial statements
– Obtain an understanding of internal control in order to design audit procedures that are appropriate in the
circumstances
– Evaluate appropriateness of accounting policies used and significant accounting estimates made by management
– Evaluate overall presentation of the financial statements ©2020 CliftonLarsonAllen LLP
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Independent Auditors’ Report
• Emphasis of Matters
– The City implemented GASB Statement No. 96, Subscription- Based Information Technology Arrangements (SBITA)
¸ Establishes a right-to-use subscription asset (an intangible asset) and a corresponding subscription liability
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Report on Internal Control
• 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
• Material Weaknesses:
– Capital Assets
¸ Original roll forward and detail schedules did not agree to each other or the general ledger
¸ Intra-entity sale of capital assets were recorded at the price paid instead of book value
¸ Adjustment needed to capitalize expenses
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Report on Internal Control
• Material Weaknesses:
– Grants Receivable and Unavailable Revenue
¸ Grant receivables did not equal eligible unreimbursed expenditures ¸ Restatement was provided that required correction
– Bank Reconciliation
¸ $27k unidentified variance (increase to cash)
¸ Bank activity for May and July 2023 recorded in incorrect fiscal year – Prepaid Water Connection Fees
¸ Revenue not recognized for homes or units hooked up to the City’s water system
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Report on Internal Control
• Material Weaknesses:
– Land Held for Resale
¸ Balance was not adjusted to equal the City’s analysis for lower of cost or market
– Schedule of Expenditures of Federal Awards (SEFA)
Preparation
¸ Over $6 million of federal expenditures were excluded from the fiscal year 2021-2022 SEFA
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Report on Internal Control
• Noncompliance:
–N o n e n o t e d
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Communication to Those Charged with
Governance
• The planned scope and timing of the June 30, 2023
audit was communicated to the City in a planning
meeting
• Management is responsible for the selection and
use of appropriate accounting policies, which are
described in Note 1 to the financial statements
• Management has selected and applied other
significant accounting policies appropriately and
consistently
• The City implemented GASB Statement No. 96
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Communication to Those Charged with
Governance
• Significant estimates are reported in the financial
statements
• Corrected and uncorrected misstatements
• Representations related to the audit were obtained
from management
• To our knowledge, the City did not consult with
other accountants regarding auditing or accounting
matters
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