TO: Board of Supervisors
FROM: Supervisor Brown
MEETING DATE: April 18, 2017
DEPARTMENT CONTACT:
Supervisor Brown
PHONE:
463-4441
ITEM TYPE: Regular Agenda
TIME ALLOCATED FOR ITEM: 10 mins
AGENDA TITLE:
title
Discussion and Possible Referral to the General Government Standing Committee Regarding California Government Code Section 26909 for Replacement of Annual Audits of the Special Districts with a Financial Review (Sponsor: Supervisor Brown)
End
RECOMMENDED ACTION/MOTION:
recommendation
Make referral to the General Government Standing Committee regarding California Government Code Section 26909 for the replacement of annual audits of special districts with a financial review.
End
PREVIOUS BOARD/BOARD COMMITTEE ACTIONS:
None.
SUMMARY OF REQUEST:
The Mendocino Local Agency Formation Commission (LAFCo) has been conducting Municipal Service Reviews (MSR) and Sphere of Influence (SOI) assessments of all Special Districts within Mendocino County as required by State law. Most recently, the LAFCo conducted and completed reviews of the Cemetery Districts. The review found that most of these Districts do not comply with State law that requires Annual Audits but do complete financial reviews that are then filed with the State Controller. Most of these Cemetery Districts do not have the revenue to cover the cost of an annual audit and struggle financially to manage their cemeteries. The Cemetery Districts are not the only Specials Districts that struggle financially in the County and have hardships meeting all their obligations yearly. It was discovered during the MSRs/SOIs of the Cemetery Districts that exceptions can be made to the annual audit mandate under State law if certain findings can be made and actions are taken by the governing boards.
Pursuant to California Government Code Section 26909, special districts may, by unanimous request of the governing board of the special district, with unanimous approval of the Board of Supervi...
Click here for full text