HomeMy WebLinkAbout04. OB Pub Comment Due Diligence 12-20-2012 MtgOVERSIGHT BOARD MEMORANDUM
DATE: December 20, 2012
TO: Chair and Members of the Oversight Board
FROM: Gilbert A. Livas, Executive Director to the Downey Successor Agency 046,1--
SUBJECT: PUBLIC COMMENT SESSION FOR THE DUE DILIGENCE REVIEW ON
ALL FUNDS EXCEPT THE LOW AND MODERATE INCOME HOUSING
FUND
RECOMMENDATION
That the Oversight Board accept public comment on the Due Diligence Review (DDR),
prepared for the Downey Successor Agency, for all other non - housing funds.
SUMMARY
AB 1484 created additional requirements associated with the unwinding process of
redevelopment agencies. This Legislation created a new mandate for a Due Diligence
Review (DDR). The DDR is an agreed -upon procedures audit of all assets and transfer
transactions of the former Redevelopment Agency and the Successor Agency. The
purpose of the DDR is to identify unencumbered cash resources that can be remitted to
taxing entities associated to the dissolved redevelopment project areas. Specifically,
under section 34179.6, the Oversight Board is required to review, approve and transmit
to the Department of Finance and County Auditor - Controller the determination of the
amount of cash and cash equivalents that are available to the taxing entities.
AB 1484 mandates that successor agency's retain the services of an independent
Certified Public Accountant (CPA) to complete the DDR, and provides that the DDR be
undertaken in two phases, with the first phase an audit review of only the low and
moderate income housing funds and the second phase a review of all other non -
housing funds.
On December 11, 2012, the Oversight Board reviewed and approved the first Due
Diligence Review which was prepared by the accounting firm of White Nelson Diehl
Evans LLP. The Oversight Board adopted Resolution No.12 -0010 and authorized the
submission of the DDR to DOF by October 15, 2012.
The audit for the second DDR has been completed by White Nelson Diehl Evans LLP
and has been distributed to the Oversight Board member as of December 15, 2012.
The Oversight Board is tasked with reviewing the DDR and approving the report
findings before the DDR can be submitted to the Department of Finance, the County
Auditor - Controller, and the State Controller.
Chair and Members of the Oversight Board
Public Comment Session for the Due Diligence Review
on all Funds Except the Low and Moderate Income Housing Fund
December 20, 2012
Page 2
The Health and Safety Code provides that the Oversight Board must convene a public
comment session, at least five (5) business days in advance of a meeting, by the
Oversight Board, to approve the findings of the DDR.