Report 2018-110 Recommendation 5 Responses
Report 2018-110: City of Lincoln: Financial Mismanagement, Insufficient Accountability, and Lax Oversight Threaten the City's Stability (Release Date: March 2019)
Recommendation #5 To: Lincoln, City of
To ensure that it complies with the state constitution, Lincoln should establish and adhere to procedures that account for revenue and expenditures in each landscaping and lighting zone separately, and it should discontinue its use of surplus revenue from one zone to offset a deficit in another zone. It should take these actions by June 2019.
Annual Follow-Up Agency Response From October 2020
This has been complete and has been reported previously. This is actually the third time this has been reported on.
Expenditures for each zone within the lighting and landscaping district were tracked by zone for the entire 2018/2019 Fiscal Year. The transfer of funds in an amount equal to the General Benefit and zone deficit was made from the General Fund to the Lighting and Landscaping District Fund, consistent with state law.
- Completion Date: July 2019
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Although Lincoln states that it has repeatedly reported on the completion of its efforts to implement this recommendation, its previous responses did not demonstrate full implementation. However, this most recent response addresses our earlier concern that the city had not shown how it accounts for electricity, sewer, and solid waste expenditures for each zone similar to its approach for water expenditures.
1-Year Agency Response
This was fully completed and reported on during the last report.
- Completion Date: July 2020
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Partially Implemented
Lincoln has demonstrated that it discontinued the practice of using surplus revenue from one landscaping and lighting zone to offset a deficit in another zone. The city currently uses its general fund to offset deficits in zones. Lincoln has also demonstrated that it is accounting for water expenditures in each landscaping and lighting zone, but the city has not yet shown that it accounts for electricity, sewer, and solid waste expenditures similarly for each zone.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
6-Month Agency Response
Expenditures for each zone within the lighting and landscaping district were tracked by zone for the entire 2018/2019 Fiscal Year. The transfer of funds in an amount equal to the General Benefit and zone deficit was made from the General Fund to the Lighting and Landscaping District Fund, consistent with state law.
- Completion Date: June 2019
- Response Date: September 2019
California State Auditor's Assessment of 6-Month Status: Pending
Although Lincoln has made efforts to track revenue and expenditures for each landscaping and lighting zone, it has not demonstrated that it included all expenditures for each zone, such as sewer and solid waste costs. Lincoln informed us that it is now discretely tracking these expenditures for fiscal year 2019-20. We look forward to reviewing Lincoln's one-year response to verify that these expenditures are included in its updated tracking records.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
60-Day Agency Response
Tracking of expenditures by zone is currently underway. Final implementation of this recommendation cannot be substantiated until the end of the fiscal year (June 30, 2019). At such time, the General Fund will be the source of funds for the cumulative zone deficit.
- Estimated Completion Date: June 30, 2019
- Response Date: May 2019
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2018-110
Agency responses received are posted verbatim.