1 california state association of county auditors property tax managers’ subcommittee may 2015...
TRANSCRIPT
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California State Association of County Auditors
Property Tax Managers’ Subcommittee
May 2015
Division of Audits Update
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PRESENTED BY:
SCOTT FREESMEIER, AUDIT MANAGER
LOCAL GOVERNMENT COMPLIANCE BUREAU
DIVISION OF AUDITS (916) 730-2793
REGINALD NIDOY, AUDIT MANAGER
LOCAL GOVERNMENT COMPLIANCE BUREAU
DIVISION OF AUDITS (916) 324-6686
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• Overview • Property Tax Audits• Property Tax Update• RDA Asset Transfer Reviews• Successor Agency Reviews• Questions
Agenda
Property Tax Audits
Audit Authority and Selection Process• Government Code Section 12468 requires the SCO to
audit the allocation of property taxes
• Counties are selected based on last fiscal year audited and the audit frequency laid out in Government Code
County population under 200,000 = 5 yearsCounty population over 200,000 = 3 yearsCounty population over 5,000,000 = annually
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Property Tax Audits
Audit Process• Contact the county via telephone to establish start date
• Preliminary Records Request emailed
• Engagement Letter is mailed to the Auditor-Controller
• Entrance Conference held
• Fieldwork typically lasts 4-7 weeks
• Exit Conference held and preliminary findings discussed
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Property Tax Audits
Report Process• If there are findings the audit will be issued in draft
– County has 15 days to respond– Response incorporated in final report
• If there are no findings, and all affected parties agree, the report will go straight to final
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Property Tax Audits
Audit Scope• Tax Increment and AB 8 Calculations• Jurisdictional Changes• Supplemental Property Tax• Unitary and Pipeline• Railroad • Qualified Electric (QE)
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Property Tax Audits
Audit Scope (Continued)• Property Tax Administrative Costs (PTAC)• Education Revenue Augmentation Fund (ERAF)• Tax Equity Allocations (TEA)• Redevelopment Agencies• Redevelopment Property Tax Trust Fund (RPTTF)
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• Final Reports Issued 4• Reports In Process 6• Next in the queue:
As of 5/7/2015, for calendar year 2015
Property Tax AuditsUpdate
• Fresno • Imperial
• Contra Costa • Monterey
• Placer • San Diego
• Siskiyou • Santa Barbara
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• Review Universe 402 Agencies• Final Reports Issued 360• Reports In-Process 42• Total Dollar Findings $5.9 Billion• Anticipated Completion Date June 30, 2015
As of 4/30/2015
RDA Asset Transfer Reviews Update
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• Fixed Assets (buildings, property, parks, etc.) • Current Assets (cash, bond proceeds, etc.)• Housing Assets (including Low/Mod assets)
transferred directly to the Housing Agency• Assets not transferred to the Successor Agency
(still on the former RDA’s books)
RDA Asset Transfer Reviews Common Unallowable Transfers
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• Audit Authority H&S Code section 34177.3 • Pilot Reviews
– Davis, Morgan Hill, Ontario, Montclair, Brea, Oakland, Irvine, Suisun City, El Cerrito, and Beaumont
• Scope of Reviews
Successor Agency Asset Transfer Reviews
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WWW.SCO.CA.GOV
(Under (Under Controller’s Programs and News)
Links to Audit and Oversight Reports, and More Information• Controller's Redevelopment Asset Reviews• Controller's Audits of State and Local Agencies • Controller's Revenue Audits • Controller's Oversight of Independent Auditors' Audits of Local
Agencies • Search for Additional Audits • Information on Ordering Printed Copies of Controller's Audits
SCO Website
