TO: Board of Supervisors General Government Committee
FROM: Auditor-Controller
MEETING DATE: May 8, 2017
DEPARTMENT CONTACT:
Lloyd Weer
PHONE:
234-6860
CEO RESOURCE/ CONTACT:
Alan Flora
PHONE:
463-4441
TIME ALLOCATED FOR ITEM: 30 min
AGENDA TITLE:
title
Discussion and Possible Direction Regarding California Government Code Section 26909 for the Replacement of Annual Audits of Special Districts with a Financial Review
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RECOMMENDATION:
recommendation
Provide direction regarding California Government Code Section 26909 for the replacement of annual audits of special districts with a financial review.
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PREVIOUS BOARD/BOARD COMMITTEE ACTIONS:
On April 18, 2017 the Board of Supervisors referred this topic to the General Government Committee
SUMMARY OF REFERRAL:
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 B...
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