CITY OF VISALIA
INDEPENDENT ACCOUNTANTS' REPORT ON
APPL YING AGREED-UPON PROCEDURES
MEASURET
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
M. GREEN AND COMPANY LLP
Certified Public Accountants
Page No.
Independent Accountants' Report on Applying Agreed-Upon Procedures..................................... 1 City Council
INDEPENDENT ACCOUNTANTS' REPORT
ON APPL YING AGREED-UPON PROCEDURES
City of Visalia and Citizens Advisory Committee
707 W. Acequia
Visalia, CA 93291-6100
We have performed the procedures enumerated below with respect to the administration, financial management and accounting of the City of Visalia's (City) Visalia Public Safety Sales Tax (Measure T) funds for the fiscal year ended June 30, 2022. The City's management is responsible for the City's administration, financial management and accounting for Measure T.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose, solely to assist the City and the independent Citizens Advisory Committee (CAC) in regards to Measure T. 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 needs to fall 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 obtained and reviewed the City's Measure T commitments as expressed in the Measure T ballot measure from the March 2, 2004 election, the Enabling Ordinance adopted by the City Council, the Board of Equalization Agreements for implementation and administration of additional sales tax, the City Council approved Program Guidelines and expenditure plans for the current fiscal year and the Annual Recertification Plan for June 30, 2022, as approved by the City Council.
Findings: None
(2) We updated our documentation of the following Measure T compliance provisions, as interpreted by the City Council adopted enabling ordinance, program guidelines and interim progress report reported to City staff:
a. Administrative procedures
b. Accounting control (including budgetary) procedures
Findings: None
(3) We updated our understanding of the City's implementation of the material administrative compliance procedures.
Findings: None
Finding:
We found that the Capital Improvement Program expenditures are generally proceeding in accordance with the Measure T Plan. The City finished construction of the Visalia Emergency Communication Center during the 2017-18 fiscal year. The expenditures made towards the project were not charged to Fire and Police Measure T Funds, as the project was a multi-funded project which was being funded with prior year Certificates of Participation (COP) proceeds. Therefore, expenditures related to the construction of the Visalia Emergency Communication Center, were recorded in another fund where all project expenditures were accounted for. COP in the amount of $17,910,000 were issued in the 2015-16 fiscal year to fund the project. The Measure T Plan was recertified approving the Police Measure T Fund to pay the total debt payment at a reduced amount, which makes Measure Ts portion of the COP proceeds and debt service payments
9.577540%. Police Measure T Funds paid $151,249 of debt service payments in the current fiscal year in accordance with approved plan and is budgeted to pay for their reduced percentage of the project through an additional 8 years of debt service payments ending in fiscal year 2029-30.
The plan also calls for contributions towards the construction of a Public Safety Office Building to improve police and fire operations. In August of 2019, the design phase was approved to begin.
However, due to COVID-19 interviews with consultants were delayed and an architectural engineer wasn't selected until May of 2021 and the project was still in the design phase as of June 30, 2022.
(7) We determined if the Measure T allocations were made in accordance with the following required funding priorities:
a. Funding of the current year's budgeted expenditures; b. Funding of the "Economic Uncertainty" Fund including annual revision; c. Funding expenditures budgeted for subsequent plan years.
Findings: None
(8) We conducted an exit interview with City staff representatives.
Findings: None
We were engaged by the City to perform 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 administration, financial management and accounting. 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's management and to meet 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, City management and the CAC and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.
December 12, 2022
Visalia, California
3 Very truly yours,