Recommendation to receive and file the Quarterly Report of Cash and Investments for the quarter ending March 31, 2020.
Thank you. Let's take item 34. Item 34. Item 34 is a communications from city or a recommendation to receive and file the quarterly report of cash and investment for the quarter ending March 31st, 2020. Thank you. I'll turn this over to City Auditor Dowd. Thank you very much. Can you hear me okay? Yes. Okay, great. Thank you, Mayor. The Council. And welcome to the new city council members Allen and Sarno. I wanted to also thank Councilmember Austin for pulling this item last week. I think most of you have seen that our office submits this audit on the council agenda on a quarterly basis as a requirement of the city charter. And Councilman Austin had some questions last week. And so I appreciate him asking me to come back this week to give a little presentation on what this item is that you see each quarter and that the new council members will see on the council agenda every quarter. And it's an often it's an unimportant audit that our office does and oversees on a quarterly basis. And if the if I could have the next slide, please. So our office oversees the performance audit of the cash and investment balances of the city of Long Beach. And as of May 31st, this particular quarter, the city's cash and investments portfolio totaled approximately $2.1 billion. And we perform these audits. They're all conducted in accordance with generally accepted government auditing standards. Next slide. And as I mentioned, the city charter requires the office of the City Auditor to verify the cash and investment balances every quarter in the city Treasurer's office and provide a written report to the City Council. Next slide. The purpose of the audit is the audit and cash investment balances of the city of Long Beach include verifying cash and investments with the outside depositories and evaluating the City Treasurer's compliance with the California Government Code and the city investment policy, which is adopted by the City Council. Next slide. There are pooled cash and investments and the city's pooled cash. It's a grouping of the city's available cash for investments. And this larger amount of money involved allows the city to earn a higher rate of return than if each fund were by itself. These pooled funds are not needed for operations and are invested by the Treasury Bureau. Thus, the interest income earned from the pooled cash investments is apportioned to the funds based on the ratio of daily cash balances to the total of pooled cash and investments. Next slide. The audit objectives are to reconcile cash and investments to the amount and description recorded on the city's books with the outside depositories, and to evaluate the city's compliance with the provisions in the California Government Code and the city's investment policy. Next slide. An example. Of. I should back it up for a second. The scope of this particular audit, just like to clarify, was for the quarter ended March 31st, 2020, and a sample of the following procedures that are performed are to obtain an understanding of the internal controls surrounding the city's cash and investment process to obtain confirmation of cash held by banks and investments held by the city planners, city treasurer's safekeeping agent and other custodians as of March 31st, 2020, and reconcile them to the city's books. Additionally, to compare the investments listed on the City Treasurer's Investment Activity Report and at March 31st to the types of investments authorized for the city in accordance with the city's investment policy and the relevant precisions provisions of the California Government Code. Next slide. And then there's always a section in the report that talks about the results and conclusions and gives an opinion that, based on the results of the audit procedures performed and adjustments made, cash and investment balances recorded on the city's books materially agree to the amount and description with the outside depositories, and that the city was found to be in compliance with all other relevant provisions of the California Government Code and the city's investment policy. And that completes my report. Thank you. There's a motion to receive and filed from Councilman Austin, the second by Councilwoman Mango. Councilman Austin, any comment? I just want to just thank our city auditor for for giving the report. I think it's her office plays a very important function, a vital role in terms of checks and balances in our local city government. And I just wanted to pull the item in and point that out. It's a very good report. Thank you very much for all the work that you're doing in your office does. Thank you. Is now. Thank you. Thank you. And there's a second by councilman mongo. Any comments, councilwoman? No. I just appreciate our city auditor and the excellent work that she does. And I think it was great that we had an opportunity for a presentation at this directory meeting of our new council members. Thank you. Thank you. With that rock over. Councilwoman sandy has. I. Councilwoman Ellen I. Councilwoman Price. Councilman Sabina. Hi, councilwoman mongo. Councilwoman Mango. Councilwoman Sarah. I. Council member Oranga Azam and Austin. Order. Vice Mayor Richardson. All right. Motion. Cade. Councilman. Mongo, I thank you.