Wednesday, June 17, 2020

Solano [County] grand jury, again, critical of county animal shelter

FAIRFIELD — The city can clearly show where Measure P dollars come into the city, and generally how they go out, but the 2019-20 Solano County grand jury reported “Fairfield’s accounting system currently cannot specifically track how this revenue is spent.”

The concern is about having more specific detail in the accounting.

“The grand jury found the reports (to the Fairfield Taxpayers Committee) presented a confusing mixture of forecast figures and interim budgetary figures,” the grand jury report states. “They discuss the impacts of Measure P revenues and provide a percentage breakdown of where they are used.”

For example, the annual report presented in 2019 states that the Measure P fund allocations were: police, 41%; fire, 24%; streets and roads, 22%; parks and recreation, 6%; (citywide) public safety support, 4%; and homeless engagement and response team, 3%, the report states.

The report does acknowledge that public workshops and hearings are held during the budget process, and therefore Measure P is open to questions and discussion if anyone wants to raise the issue.

Mayor Harry Price, who just received a copy of the report, said he is not exactly sure what the grand jury wants to see.

“To some extent, the city is doing that in the breakdown of the departments and where the money is spent,” Price said.

He noted that the grand jury report specifies information within each department of Measure P expenditures, such as patrol, traffic, investigations, administration, dispatch and community services within the Police Department, although precise breakouts of funding to each category are not provided.

“I need to spend more time with the report,” Price said.

He also has called the grand jury for clarification, he said.

The oversight committee was formed “to ensure transparency and oversight of the revenue.” The grand jury reports that the committee “does not participate in the city budgeting process and does not, in fact, provide input as to the use of Measure P revenues.”

The grand jury made five findings with corresponding recommendations.

The grand jury recommends the city “develop a system to track Measure P dollars from collection to disbursement so that the public can easily see how and where these funds are applied.”

It further recommends the city “enhance public transparency and consistency by directing the Fairfield Taxpayers Committee to base any reporting on actual year-end data rather than forecast data.”

The third recommendation calls for the city to “establish a protocol to validate the accuracy of financial data before it is published by the Fairfield Taxpayers Committee,” while the fourth recommendation encourages the city to “expand the scope of the annual audit to include additional procedures directed primarily toward obtaining knowledge of noncompliance relating to accounting matters.”

The audit recommendation comes from a letter by the firm that audited the city, which states:

“In connection with our audit, nothing came to our attention that caused us to believe that the city failed to comply with the provisions of Ordinance 2012-20, insofar as they relate to the collection, management and expenditure of Measure P sales taxes in the city general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the city’s noncompliance with the above-referenced terms, provisions, or conditions of the ordinance, insofar as they relate to accounting matters.”

Finally, the grand jury recommends that the city amend the resolution that established the Measure P Committee to “define ‘taxpayer.’ ”

Measure P was passed by the voters in 2012, authorizing the city to collect an additional 1% sales tax for five years. Voters in 2016 extended the tax through March 31, 2033.

The report, which was released May 28, goes into extensive detail about the city’s financial condition prior to Measure P and provides information about those finances after the measure passed and was extended.

Measure P revenues have represented between 18% and 20% of the city’s general fund from 2015 to 2019, ranging from $16.64 million in the first of those five years and $19.6 million in the last.

“The funds go into the city general fund along with those collected from other revenue sources and can be used for any municipal purpose. The City Manager’s Office and Finance Department, with support from each of the operating departments, manage the budget process,” the grand jury report states.

“Public hearings and community workshops are conducted on the proposed budgets to review all appropriations and sources of funding. This is the only mechanism for public participation in deciding how Measure P funds should be used. The city is able to track the sources of revenue, but since they are comingled in the general fund, the city accounting system, as currently configured, cannot identify Measure P funds that are allocated to individual cost centers for specific uses or projects. Therefore, there is currently no straightforward way to track revenues generated by Measure P to their specific uses in city operations,” the report states.

Solano County Daily Republic
By Todd R. Hansen
June 16, 2020


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