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1990 City Compliance and Financial ReportI 1 I ' CITY OF ROSEMEAD, CALIFORNIA ' COMPLIANCE AND FINANCIAL REPORT JUNE 30, 1990 1 C I 1 I U 11 I C O N T E N T S SECTION I - GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Page Independent auditors' report on the general purpose financial statements 1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined balance sheet, all fund types and account groups 2 Combined statement of revenue, expenditures and changes in fund balances, all governmental fund types 3 Combined statement of revenue, expenditures and changes in fund balances - budget and actual - general, special revenue and debt service fund types 4 Statement of revenue, expenses and changes in fund balance, . pension trust fund 5 Statement of changes in financial position, pension trust fund 6 Notes to financial statements 7 - 16 Independent auditors' report on the schedule of federal financial assistance 17 Schedule of federal financial assistance 18 SECTION II - COMPLIANCE MATTERS AND INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROLS Reports required by the Governmental Auditing Standards: Independent auditors' report on: Compliance with applicable laws and regulations based on an audit of the general purpose financial statements 19 and 20 Internal control structure 21 - 23 Reports Required by the Single Audit Act and OMB Circular A-128: Independent auditors' report on: Specific compliance requirements applicable to major federal financial assistance programs 24 and 25 Compliance with the general requirements applicable to major federal financial assistance programs 26 and 27 Compliance requirements applicable to nonmajor federal financial assistance program transactions 28 Internal accounting and administrative control systems used to administer federal financial assistance programs 29 - 31 r t 1 ' SECTION I - GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 1 1 1 1 i 1 u F 1 1 McGLADREY & PULLEN Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT ON THE GENERAL PURPOSE FINANCIAL STATEMENTS To the Honorable Mayor and Members of the City Council City of Rosemead Rosemead, California We have audited the accompanying general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Rosemead, California, as of June 30, 1989, and the results of its operations and changes in financial position of its Pension Trust Fund for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents as supplementary information ' are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Rosemead, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly ' presented in all material respects in relation to the general purpose financial statements taken as a whole. I Pasadena, California October 10, 1990 E r.L~lL. CITY OF ROSEMEAD, CALIFORNIA i COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1990 ASSETS Cash and cash investments Cash and investments with fiscal agent Other investments Annuity contracts Receivables Due from other funds Property and equipment Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets LIABILITIES AND MUNICIPAL EQUITY LIABILITIES Governmental Fund Types Special Capital General Revenue Projects $'3,492,546 - $ 1,287,220 - $ 3,803,232 1 4,898,178 - 8,366,402 976,397 302,206 1,072,143 355,868 i - - $,9.722.989 S 1.589 426 $13.241.777 Accounts payable and accrued liabilities $ 980,489 $ Due to other funds - Deferred revenue 150,000 Refundable deposits Deferred compensation Equipment purchase contracts - Tax allocation notes Accrued vacation pay and compensatory time 10.158 $ 1.140.647 MUNICIPAL EQUITY Investment in general fixed assets $ Fund balance: Reserved: Long-term receivable Debt service Unreserved: Designated for pension obligations Designated for capital projects Undesignated Total municipal equity $ Total liabilities and municipal equity $ See'Notes to Financial Statements. - 2 - 626,486 7.955.856 8,582,342 9,722,989 ~I 230,178 $ 186,972 174,867 $ 592.017 997.409 $ 997.409 S 1.589,426 448,958 168,896 $ 617.854 12,623,923 $12.623.923 $13.241.777 1 1 1 1 Governmental Fiduciary Total Fund Types Fund Types Account Groups (Memorandum Only) Trust General General Debt and Fixed Long-Term Service Aeency Assets Debt 1990 1989 $ - $ 68,660 $ $ - $ 8,651,658 $12,320,139 2,973,099 - - 2,973,099 2,842,587 - - - 13,264,580 15,707,537 620,335 620,335 520,244 106,027 39,095 - 2,495,868 2,620,454 - - - 355,868 498,081 7,588,261 - 7,588,261 5,828,735 - 3,079,126 3,079,126 2,948,614 - 8.983.303 8.983.303 10.616.084 $ 3,079,126 S 728.090 S 7.558.261 $12.062.429 $48.012,098 $53.902.475 $ $ 4,970 $ $ $ 1,664,595 $ 2,004,827 - 355,868 498,081 - 324,867 194,001 78,209 78,209 315",752 24,576 24,576 74,527 - - 1,732 11,995,000 11,995,000 13,510,000 67.429 77,587 61,206 $ $ 107,755 $ $12.062.429 $14,520,702 $16.660,126 $ - $ - $ 7,588,261 $ - $ 7,588,261 $ 5,828,735 - - 626,486 469,111 3,079,126 - - - 3,079,126 2,948,614 - 620,335 - - 620,335 520,244 - - - 12,623,923 17,623,433 - - 8.953.265 9.852.212 $ 3,079,126 $ 620.335 $ 7.588.261 $ - $33.491.396 $37.242.349 S 3 079.126 S 728,090 L1_5 - 8261 $12.062.429 $48,012,098 $53.902.475 4 CITY OF ROSEMEAD,1CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES Year Ende d June,30, 1990 Governmental Fund Ty pes Special Capital REVENUE General Revenue Projects Property tax increment and special assessments $ $ 303,374 $ 3,204,232 Other taxes 4,176,257 - - Licenses and permits 533,050 - - Intergovernmental 2,108,603 1,603,100 Charges for services 284,851 - Fines, forfeitures and penalties 319,756 204,245 - Use of money and property 813,647 83,050 1,223,582 Loan repayments - - - Other 82,085 95.842 $ 8.318.249 $ 2,193.769 $ 4,523,656 EXPENDITURES Current: General government $ 1,398,452 $ 11,512 $ 302,138 Public safety 3,417,893 391,738 - Public works 420,856 1,359,476 6,755,996 Public health 856,298 - - Public recreation 1,762,254 12,940 Community service 1,226,626 270,323 Intergovernmental - - Capital outlay 107,805 15,638 Debt service: Principal 1,728 - Interest 51 $ 9.191.963 $ 2.061.627 $ 7.058.134 Revenue over (under) I expenditures $ (873.714) $ 132.142 $(2.534.478) OTHER FINANCING SOURCES (USES) Operating transfers: From other funds $ $ 75,307 $ (To) other funds (75.307) (2.465.032) $ (75.307) $ 75.307 $(2.465.032) Revenue and other financing sources over (under) expenditures and other financing uses $ ,(949,021) 1 $ 207,449 $(4,999,510) FUND BALANCE, BEGINNING 9..531.363 789.960 17.623.433 FUND BALANCE, ENDING $ 81.582.342 $ 997.409 $12.623.923 See Notes to Financial Statements. I 3 Governmental Fiduciary Totals Fund Types Fund Type (Memorandum Only) Debt Expendable Service Trust 1990 1989 $ $ $ 3,507,606 $ 4,195,444 4,176,257 3,591,798 533,050 496,966 13,596 3,725,299 4,518,697 284,851 338,686 524,001 477,896 268,778 2,389,057 2,788,346 - - 7,459 13.462 191.389 90.009 $ 282.240 $ 13.596 $15.331.510 $16.505.301 $ - $ - $ 1,712,102 $ 1,611,328 - - 3,809,631 3,651,535 - - 8,536,328 7,624,877 - - 856,298 605,353 1,775,194 1,529,628 13,596 1,510,545 1,528,378 - - 7,459 - 123,443 840,338 1,515,000 1,516,728 1,422,423 1.101.760 1.101.811 1.218.384 $ 2.616.760 $ 13.596 $20.942.080 $20.039.703 $(2.334.520) $ $(5.610.570) $(3.534.402) $ 2,465,032 $ $ 2,540,339 $ 2,503,899 (2.540.339) (2.503,899) $ 2.465.032 $ $ - $ $ 130,512 $ $(5,610,570) $(3,534,402) 2.948.614 30.893.370 34,427.772 $ 3.079,126 $ 525.282.800 $30.893.370 i i CITY OF ROSEMEAD,,CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES Year Ended June 30. 1990 REVENUE Property taxes and special assessments Other taxes Licenses and permits Intergovernmental Charges for services Fines, forfeitures and penalties Use of money and property Other EXPENDITURES Current: General government Public safety Public works Public health Public recreation Community service Capital outlay Debt service: Principal Interest Revenue over (under) expenditures OTHER FINANCING SOURCES (USES) Operating transfers from (to) other funds Revenues and other financing sources over (under) expenditures FUND BALANCE. BEGINNING FUND BALANCE. ENDING See Notes to Financial Statements. General Fund Over (Under) Budget Actual Budget $ 3,7!73,000 587,500 2,808,770 360,800 260,000 761,600 32.860 $ 8.584.530 4,176,257 533,050 2,108,603 284,851 319,756 813,647 82.085 $ 8.318.249 403,257 (54,450) (700,167) (75,949) 59,756 52,047 49.225 $ (266.281) $ 1,452,159 3,455,460 1,613,940 819,880 1,718,450 977,070 131,700 '1,800 $10.170.459 1 $(1.585.929) i I i I 4 - $ 1,398,452 3,417,893 420,856 856,298 1,762,254 1,226,626 107,805 1,728 51 $ 9.191.963 $ (873.714) $ (53,707) (37,567) (1,193,084) 36,418 43,804 249,556 (23,895) (72) 51 $ (978.496) $ 712.215 $ (75.307) $ (75,307) $ (949,021) S 636.908 9.531.363 . S-2 342 1 Special Revenue Debt Service Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget $ 295,000 $ 303,374 $ 8,374 $ $ $ 1,938,053 1,603,100 (334,953) 170,000 204,245 34,245 55,600 83,050 27,450 210,000 268,778 58,778 13.462 13.462 $ 2.458.653 $ 2.193.769 $ (264.884) $ 210,000 $ 282.240 $ 72.240 $ 14,000 $ 11,512 $ (2,488) $ - $ - $ - 465,000 391,738 (73,262) 1,354,270 1,359,476 5,206 21,990 12,940 (9,050) 556,790 270,323 (286,467) 187,273 15,638 (171,635) - - - - 1,515,000 1,515,000 1,101.760 1.101.760 $ 2.599.323 $ 2.061.627 $ (537.696) $ 2.616.760 $ 2.616.760 $ - $ (140.670) $ 132.142 $ 272.812 $(2,406.760) $(2.334.520) $ 72.240 $ $ 75,307 $ 75.307 $ 2,616,760 $ 2,465,032 $ (151,728) $ (140.670) $ 207,449 $ 348,119 $ 210,000 $ 130,512 $ (79.488) 789.960 2,948,614 S -997.40q S 3,079,126 1 1 1 I CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE PENSION TRUST FUND Year Ended June 30, 1990 Operating revenue: Contributions $ 84,505 Interest and other investment income 49.544 $ 134.049 Operating expenses: Administrative fees $ 3,720 Pension benefits 30.238 S 33.958 Net income $ 100,091 FUND BALANCE, BEGINNING 520.244. FUND BALANCE, ENDING $ 620.335 See Notes to Financial Statements. - 5 - 1 1 1 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CHANGES IN FINANCIAL POSITION PENSION TRUST FUND Year Ended June 30. 1990 FINANCIAL RESOURCES PROVIDED BY OPERATIONS, net income SUMMARY OF NET CHANGES IN CASH AND INVESTMENTS, increase in annuity contracts See Notes to Financial Statements. 6 - 100,091 $ 100.091 I CITY OF ROSEMEAD, CALIFORNIA I NOTES TO FINANCIAL STATEMENTS ' Note 1. Reporting Entity, Nature of Operations, Description of Funds and Accounts Groups and Significant Accounting Policies ' Reporting Entity The criteria of oversight responsibility, special financing relationships and scope of public service was used in determining the agencies or entities which comprise the City for financial reporting purposes. Oversight responsibility is determined by the extent of financial interdependency, control over the selection of the governing ' authority and management, ability to significantly influence operations, and accountability for fiscal matters. Based on these criteria, the Rosemead Redevelopment Agency (the Agency) is included ' in the combined financial statements of the City. Nature of Operations City of Rosemead The City of Rosemead (the City) provides a broad range of services to its citizens, including general government, public safety, streets, sanitation and health, cultural and park facilities and social services. ' Many of the functions often provided by municipal government are, in the City of Rosemead, provided by special districts. Examples of some ' of these special districts, which usually encompass areas larger than the City itself, are the Fire Protection District, the Library District and the County Flood Control District. Certain other governmental functions are paid for by the City but performed by Los Angeles County departments under contract. Some of the contracts now in effect are for police, street maintenance and animal control. ' Rosemead Redevelopment A ep ncv The Rosemead Redevelopment Agency (the Agency) finances street, park and utility improvements within the Rosemead Project Area No. 1. Description of Funds and Account Groups The accounts of the reporting entity are organized on the basis of funds or groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts which comprise its assets, liabilities, equity, revenue and expenditures. The various funds and account groups are presented as follows: 1 - 7 - I I NOTES TO FINANCIAL STATEMENTS I Note 1. Reporting Entity, Nature of Operations, Description of Funds and Accounts Groups and Significant Accounting Policies, Continued ' Governmental Fund Types The General Fund accounts for all financial resources except those ' required to be accounted for in another fund. These resources are devoted to financing the general services that the City performs for ' its citizens. Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments, expendable trusts and major ' capital projects) that are legally restricted to expenditures for specified purposes. The Special Revenue Funds and their purposes are as follows: t The Traffic Safety Fund accounts for the receipt of vehicle code fines which are expended for traffic safety enforcement. ' The State Gas Tax Fund accounts for funds collected from the State of California which are used for street construction, street maintenance, engineering and administrative costs. ' The Aid to Cities Fund accounts for funds received from the County of Los Angeles for street construction and maintenance projects. ' The Local Transportation Fund accounts for state grants used to finance the construction of bikeways and sidewalks. The Public Transportation Fund accounts for the City's share of additional sales tax collected in the County of Los Angeles as a result of Proposition A. The funds are used to finance public transportation projects. The Community Development Block Grant Fund accounts for Community Development Block Grants received from the United States Department ' of Housing and Urban Development. The 1976 Community Parklands Grant Fund accounts for funds to be used for park projects. The Street Li hg tiny Fund accounts for the operation of street lights within the City. The Narcotic Seizure Fund accounts for the funds received from the County of Los Angeles from the confiscation of cash and other ' valuables seized during drug related police raids. The funds are used to further enhance the City's drug related crimes prevention and detection programs. The R. Z'Berg/Harris Grant Fund accounts for a state grant for preapproved park projects. 8 1 1 1 Note 1 i 1 1 i 1 1 1 1 1 1 1 1 1 1 i 1 1 NOTES TO FINANCIAL STATEMENTS Reporting Entity, Nature of Operations, Description of Funds and Account Groups and Significant Accounting Policies, Continued Coital Projects Fund (Redevelopment Fund) account for financial resources to be used for the acquisition or construction of major capital facilities within the Agency. The Debt Service Fund accounts for the accumulation of resources for- the payment of general long-term debt principal, interest and related costs. Fiduciary Fund Types The Pension Trust Fund accounts for the activity of the retirement plan for employees of the City. The Expendable Trust Fund accounts for the repair, replacement or restoration of disaster damaged publicly owned and certain nonpublicly owned facilities. The Agency Fund accounts for the assets held in a trustee capacity or as an agent. The cash being held primarily represents amounts placed on deposit for refundable permits and performance bonds. Account Groups The General Fixed Assets Account Group accounts for all property and equipment except for public domain fixed assets (e.g., streets, bridges,-sidewalks, curbs, gutters and storm drainage systems). The General Long-Term Debt Account Group accounts for the outstanding principal balances of all long-term debt expected to be financed from governmental fund types. Significant Accounting Policies Basis of Accounting Governmental fund types are accounted for using the modified accrual basis of accounting. Revenue is recognized when it becomes both measurable and available. Taxes are considered to be measurable when collected by an intermediary and are recognized as revenue at that time. Expenditures are generally recognized when the related liability is incurred. An exception to this general rule exists for unmatured principal and interest on general long-term debt which is recognized as an expenditure when due. The pension trust fund is accounted for using the accrual basis of accounting. Revenue is recognized when it becomes measurable and expenses are recognized when the liability is incurred. - 9 1 Note 1 1 i 1 1 NOTES TO FINANCIAL STATEMENTS Reporting Entity, Nature of Operations, Description of Funds and Account Groups and Significant Accounting Policies, Continued Cash and investments The City pools cash and investment resources of its various funds in order to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. All investments are stated at cost or amortized cost. No loss is recognized when market values decline below costs since it is generally the policy of the City to hold such investments until they mature. Investment earnings are allocated based on the source of funds. Receivables All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Property and equipment All property and equipment of the City are accounted for in the general fixed assets account group. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings, such as roads, sidewalks and bridges, are not capitalized. Property and equipment acquired or constructed for general governmental operations are recorded as expenditures in the fund making the expenditure and capitalized in the general fixed assets account group. All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by gift or bequest are recorded at their fair market value at the date of transfer. No depreciation is recorded on general fixed assets. Fund balances The reserved portion of the fund balances represents that amount which has been legally identified for the specific purpose or it represents that amount which is not available to liquidate current liabilities. The unreserved portion represents the amount available for budgeting future operations. Vacation pay and compensatory time City employees accumulate vacation hours which may be paid upon termination, death or retirement. Employees can accumulate up to three weeks of accrued vacation per year depending on the length of employment. Employees can accumulate up to 160 hours of sick leave. Any hours in excess of 160 are considered to be vested and are paid to the employee based on a vesting schedule. In addition, employees can accrue up to 240 hours of compensatory time. Any hours in excess of 240 are paid to the employee. - 10 - I NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and ' Account Groups and Significant Accounting Policies, Continued Memorandum totals ' Total columns on the combined financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Interfund transactions have not been eliminated in arriving at these amounts. Note 2. Budget Matters I Budgets presented in this report for comparison to actual amounts are presented in accordance with generally accepted accounting principles. Reported budget amounts represent the original adopted budget as amended. In all budgeted funds, unexpended budgeted amounts lapse at the end of the budget year. Spending control for most funds is established by the amount of expenditures budgeted for the fund, but management control is exercised at budgetary line item levels. Note 3. Cash and Investments The components of cash and cash investments at June 30, 1990 are as follows: Cash in bank Time certificates of deposit $ 678,403 7.973.255 S 8.651.658 The City and the Agency maintain cash and investment pools that are available for use by all funds. Each fund's or fund type's share of the pool balance is reported in the financial statements as "cash and cash investments." Earnings from the pooled investments are allocated monthly to each participating fund based on a formula that takes into consideration each fund's average investment in the pool. At year-end, the carrying amount of the City and the Agency's deposits was $8,651,658 and the bank balance was $8,653,417. All deposits at year-end were entirely covered by federal depository insurance or by collateral held by the City's agent in the City's name. - 11 - I 1 Note 3 1 1 NOTES TO FINANCIAL STATEMENTS Cash and Investments, Continued State statutes authorize the City and the Agency to invest any available funds in securities issued or guaranteed by the United States Treasury or agencies of the United States, bank certificates of deposit, bankers acceptances, negotiable certificates of deposit, the State Treasurer's Investment Pool, repurchase agreements, commercial paper and bonds, registered warrants or treasury notes of the State of California and its local agencies. Other investments are categorized in the following schedule to give an indication of the level of risk assumed by the entity at year-end. Investment Type U.S. govern- ment and government agency securities State and municipal bonds Corporate bonds Investment in mutual fund Investment in State Treasurer's Investment Pool Total other investments 4.640.000 4,640.000 513.264.580 513.072,407 The three preceding risk description categories are defined as follows: Category 1 Investments that are insured, registered or for which the securities are held by the City or its agent in the City's name. 2 Uninsured and unregistered investments for which the securities are held by the broker's or dealer's trust department or agent in the City's name. 3 Uninsured and unregistered investments for which the securities are held by the broker or dealer, or by its trust department or agent but not in the City's name. - 12 Category Carrying Market 1 2 3 Amount Value $1,402,514 $ - $ 243.284 6.528.777 $ 1,402,514 $ 1,386,026 243.284 245.600 6.528.777 6.389.389 $1.645.798 $6.528.777 $ - $ 8,174,575 $ 8,021,015 450,005 411,392 1 1 .-I ro 0 0 F U G N d a) !J U > A 7 -i U N F z ;o ~ G rXI d U F 3 M u d o ro u F d N . o P. o a w ro d W O a H ~ zV 6 u z w O 44 c O N % G F o a 0 W F U 0 as O z O p, rn O ro ch N d 7 c~ w 0 N N Vf d w 0 CO u U U U d u p z ~O O Co N ~7 .7 O c•i ~ O N N rn ~ ~ ut u} O O .-I N N W O I~ rn ~ N O O O N O O N O N N 0 0 M ~ t~ M ~ rn m O N N ~O ut m n J t+t ~ rn n1 N ~ m u o d G u G u.a E m d N T T v u N •C P o •ui m o m •u 4) U :5 W P. G f4 C w u O w 0 w N 0 •.a U •.1 a) 7 u y w ca a w d 0 Ga O I~ N OO O ~+1 u1 O a0 rn N 0 0 M t+l u N Tv'+ u w r Tu m ro C u G ~ v G u • ~ i a u y N 6 o w u 0 3 ~ T , 7 W G ro C b u W C C o E u H ro u u d .G tlD G w WNro~ Eaao m 3 ~ ro ° w m E •C N N^ ~4 O ro w t m l+ rn u W N JJ 3 w 14 O U ro cr N •.1 3 C u u p 74 H u C: G m m c .1 N n 0o E v o v 'y G 3 u M 6 O al u U 11 0 W L ED O V d u C E •.a m o m C .i > cc > co o o Q. a 0 0 o G u 0 'o ° ro u > 0 •O u a) .C 'O O G u u T G y 0 E u ' u G u G u •ui p A M C F ro y .a E> a b b C ~ •u ca m + W u d C o ¢ 7 ~ U r u C > ~ ' N ) 0 + (0 4J m v " a) p N b u u H 7 ~ ro u p n eo d C F ro o C C u y u U o E E u u p ro C > M .d C O N _ u u y ro o ar 0 cc N u p O vt L u ~ O> G o O N p G m 0 i U O C N b ro u h 7 u u u o C H b E m ~4 S4 W C> C 0 m u u b d a w M a u C > • G b w u u 0 i4 T ro ro E C MC p CO N E w C 7 ~ 7 ro i+ . 3 v G m ca o v ro Y4 o C Q w • a C m -C u u 3 u u w w 0 7 d N m o T~ •7o ro ro A G 7 m C E 7 u u d) 0 co u G i C w O 4 a) . y, y, y, w ,a ur N u G C E m Cl ro> u y 6 3 .-a u u v v t+l 1 Note 5 1 ' Note 6 1 Note 7 fl NOTES TO FINANCIAL STATEMENTS Interfund Receivable and Payables The June 30, 1990 interfund receivable and payables are as follows: General Fund Special Revenue Funds: Traffic Safety Community Development Block Grant R. Z'Berg/Harris Grant Capital Projects Fund Property and Equipment Interfund Receivable Payables $ 355,868 $ $ $ 11,882 162,150 12.940 $ 355,868 $ 186,972 168.896 $ 355,868 S 355.868 Changes in the property and equipment during the year ended June 30, 1990 were as follows: Land Buildings and improvements Vehicles Furniture and office equipment Special equipment and machinery Other improvements Balance Balance June 30, June 30, 1989 Acquisitions 1990 $ 1,060,734 $ 1,655,000 $ 2,715,734 2,955,316 - 2,955,316 252,149 1,723 253,872 402,155 70,978 473,133 436,238 10,869 447,107 722.143 20.956 743.099 S 5.828,735 S 1.759.526 S 7.588.261 Pension Plan and Deferred Compensation Agreements The City has a defined contribution pension plan. The plan covers substantially all employees and is funded by a group annuity insurance contract. Employees eligible for the plan are vested 1008 upon completion of five years of full-time employment. Employees are not vested before five years. The contributions to the plan are at the discretion of the City Council. This plan does not allow for employee contributions. The total payroll for employees covered by this plan for the calendar year ended December 31, 1989 was $882,278. The total payroll for all employees for the calendar year ended December 31, 1989 was $1,507,396. The total pension contribution for the fiscal year ended June 30, 1990 was $84,505. - 14 - NOTES TO FINANCIAL STATEMENTS 1 Note 7. Pension Plan and Deferred Compensation Agreements, Continued ' The City has a deferred compensation plan which is organized under Internal Revenue Code 457. The Plan allows eligible employees to tax defer a portion of their gross income not to exceed the lesser of $7,500 or 258 of the participant's includible compensation. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. ' All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts, and all income attributable to ' those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the Plan), subject only to the claims of the City's general ' creditors. Participants' rights under the Plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. ' Note 8. Long-Term Debt ' The following is a summary of the general long-term debt transactions for the year ended June 30, 1990. Tax Accrued Equipment Allocation Vacation Purchase Notes, and Sick Contracts Series 1987 Leave Total ' Balance, June 30, 1989 $ 1,732 $13,510,000 $ 52,966 $13,564,698 Additions, net - 14,463 14,463 Retirements (1.732) (1.515.000) (1,516,732) 1 Balance, June 30, 1990 S 111. 5000 5 67.429 $12.062.429 ' Prior-Year Defeasance of Debt ' In prior years, Rosemead Redevelopment Agency defeased its tax allocation bonds Series 1983 by placing the proceeds of new tax allocation notes Series 1987 in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for these defeased bonds are not included in these financial statements. At June 30, 1990, $1,275,000 of these defeased bonds remain outstanding. ' Compensated Absences That portion of the liability for the vested compensated absences ' totalling $67,429 which is not expected to be paid from available resources is reported in the general long-term debt account group. ' The annual requirements, principal and interest, to amortize the outstanding debt as of June 30, 1990 are as follows: ' - 15 - Note 8 I 11 I NOTES TO FINANCIAL STATEMENTS Long-Term Debt, Continued Years Ending June 30. 1991 1992 1993 1994 1995 Thereafter Tax Allocation Notes, Series 1987 Interest Total $ 1,630,000 $ 972,350 $ 2,602,350 1,760,000 828,617 2,588,617 1,900,000 669,813 2,569,813 2,055,000 496,781 2,551,781 2,230,000 309,312 2,539,312 2.420.000 105.875 2.525.875 $11.995.000 $ 3.382.748 $15.377.748 Budget Overexpenditures Note 9 Expenditures exceeded appropriations for the year ended June 30, 1990 in the following special revenue funds: Amount of Overexpendi- Appropriation Expenditures tures Local Transportation Fund $ 36,280 $ 50,400 $ 14,120 State Gas Tax Fund $ 713,590 $ 721,376 $ 7,786 The budget overexpenditures were due to the margin of error in estimating appropriations based on the best known facts at the time the budgets were adopted. The effect on the financial statements caused by these overexpenditures was not considered material as the actual revenue of these funds was also more than the estimated revenue used in preparing the budgets. Note 10. Commitments and Contingent Liabilities Under state law, Rosemead Redevelopment Agency is required to set aside a portion of its property tax increment revenue for low and moderate income housing. The Agency has made findings that, for the year ended June 30, 1990, it was exempt from funding any of the set aside. As of June 30, 1990, the accumulated set aside amount not yet funded was approximately $2,974,000. The law requires the Agency to devise a plan to fund the accumulating amount and to begin funding it by 1996. During the year ended June 30, 1990, a lawsuit was filed against several local governments, including the City, asking for monetary damages in order to assist the plaintiffs in cleanup of a former landfill now contaminated by hazardous waste. Management and legal counsel for the City are unable to reasonably estimate the amount of liability which may be incurred if an adverse decision is rendered. However, the City intends to vigorously defend itself in regard to this lawsuit. - 16 - McGLADREY & PULLEN Certified PublicAccountants and Consultants ' INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE ' To the Honorable Mayor and ' Members of the City Council City of Rosemead, California We have audited the general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, and have issued our report thereon dated October 10, 1990. These general purpose financial. statements are the responsibility of the City's management. Our responsibility ' is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards ' and the Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence ' supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basi s for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Rosemead, California, taken as a whole. The accompanying schedule of federal financial assistance is presented for the purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in ' relation to the general purpose financial statements taken as a whole. ' e /,Z4& ' Pasadena, California October 10, 1990 I - 17 - 1 1 1 CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Year Ended June 30, 1990 Federal Grantor/Pass-Through Grantor/ Program Title U.S. Department of Housing and Urban Development passed through Los Angeles County Community Development Commission - Community Development Block Grant Program - Entitlement Grants Federal Emergency Management Agency passed through the State of California Office of Emergency Services - Disaster Assistance Total federal financial assistance 18 - Catalog of Federal Domestic Assistance Number Expenditures 14.218 $ 392,597 83.516 13.596 S 406.193 I 1 1 1 I SECTION II - COMPLIANCE MATTERS AND INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROLS I McGLADREY & PULLEN Certified Public Accountants and Consultants 1 ' INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS BASED ON AN AUDIT OF THE GENERAL PURPOSE ' FINANCIAL STATEMENTS To the Honorable Mayor and Members of the City Council City of Rosemead, California We have audited the general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, and have issued our ' report thereon dated October 10, 1990. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. ' Compliance with laws, regulations, contracts, and grants applicable to the City of Rosemead, California, is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grants. However, our objective was not to provide an opinion on overall compliance with such ' provisions. The results of our tests indicate that, for the items tested, the City of ' Rosemead, California, complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. 1 I - 19 1 1 1 i 1 1 1 1 1 i i 1 1 1 1 1 1 1 1 This report is intended for the information of management of the City of Rosemead, the United States Department of Housing and Urban Development via the Los Angeles County Community Development Commission, and California State Controller's Office (Division of Audits and Division of Local Government Fiscal Affairs). This restriction is not intended to limit the distribution of this report, which is a matter of public record. Y~ Pasadena, California October 10, 1990 20 - I 1 1 LNNI McGLADREY & PULLEN Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE To the Honorable Mayor and Members of the City Council City of Rosemead, California We have audited the general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, and have issued our report thereon dated October 10, 1990. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements.are free of material misstatement. In planning and performing our audit of the financial statements of the City of Rosemead, California, for the year ended June 30, 1990, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the City of Rosemead, California, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 21 I For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: • Revenue/Receipts • Purchases/Disbursements • Payroll/Disbursements • Financial Reporting For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. The matter that we consider to be a reportable condition is described below. CONDITION The City does not have adequate internal accounting controls because of an inadequate segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. MANAGEMENT'S RESPONSE The City is aware of the lack of segregation of duties. At the present time, however, the City is not large enough to employ additional personnel in the accounting department. The City is also of the opinion that it is not cost beneficial to hire additional accounting personnel. In addition, it is the City's opinion that there are sufficient compensating controls to offset the lack of segregation of duties. The compensating controls include supervision, review, authorization and approval of transactions by City Council and senior employees of the City. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition described above is not a material weakness. - 22 1 1 1 t This report is intended for the information of management of the City of Rosemead, the United States Department of Housing and Urban Development via the Los Angeles County Community Development Commission, and California State Controller's Office (Division of Audits and Division of Local Government Fiscal Affairs). This restriction is not intended to limit the distribution of this report, which is a matter of public record. )&ad" Pasadena, California October 10. 1990 23 P McGLADREY & PULLEN Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT ON SPECIFIC COMPLIANCE REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Honorable Mayor and ' Members of the City Council City of Rosemead, California We have audited the City of Rosemead, California, compliance with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, and/or earmarking; reporting; special tests and ' provisions for 14.218 - Community Development Block Grant Program; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to its major federal financial assistance program, which is identified in the accompanying schedule of federal financial assistance, for the year ended ' June 30, 1990. The management of the City is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and OMB Circular A-128, "Audits of State and Local Governments." Those ' standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test. ' basis, evidence about the City's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. ' The results of our audit procedures disclosed no instances of noncompliance with the requirements referred to above. In our opinion, the City of Rosemead, California, complied in all material respects with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, and/or earmarking; reporting; special tests and provisions for 14.218 - Community Development Block Grant Program; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to its major federal financial assistance program for the year ended June 30, 1990. 1 - 24 - ' This report is intended for the information of the Finance Committee, Budget Committee, management, the United States Department of Housing and Urban Development via the Los Angeles County Community Development Commission, and California State Controller's Office (Division of Audits and Division of Local Government Fiscal Affairs). This restriction is not intended to limit the distribution of this report, which is a matter of public record. Pasadena, California ' October 10, 1990 11 1 - 25 - I McGLADREY & PULLEN Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS ' To the Honorable Mayor and Members of the City Council City of Rosemead, California ' We have applied procedures to test the City of Rosemead, California, compliance with the following requirements applicable to its major federal financial assistance program, which is identified in the schedule of federal financial ' assistance, for the year ended June 30, 1990: Political activity Davis-Bacon Act ' Civil rights Cash management Relocation assistance and real property management ' Federal financial reports. Our procedures were limited to the applicable procedures described in the Office ' of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments." Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Rosemead, California's compliance with the requirements listed in the preceding ' paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the first paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Rosemead, California, had ' not complied, in all material respects, with those requirements! I - 26 - This report is intended for the information of management of the City of Rosemead, the United States Department of Housing and Urban Development via the ' Los Angeles County Community Development Commission, and California State Controller's Office (Division of Audits and Division of Local Government Fiscal Affairs). This restriction is not intended to limit the distribution of this report, which is a matter of public record. Pasadena, California ' October 10, 1990 H I L ail 0 O I I I 0 t 27 McGLADREY & PULLEN Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS ' To the Honorable Mayor and Members of the City Council City of Rosemead, California In connection with our audit of the general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, and with our study and evaluation of the City's internal control systems used to ' administer federal financial assistance programs, as required by Office of Management and Budget Circular A-128, "Audits of State and Local Governments," we selected certain transactions applicable to the nonmajor federal financial assistance program for the year ended June 30, 1990. As required by Office of Management and Budget Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of 1 services allowed or unallowed; eligibility; and special tests and provisions for Federal Emergency Management Agency Office of Emergency Services 83.516 - Disaster Assistance Program that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that 1 caused us to believe that the City of Rosemead, California, had not complied, in all material respects, with those requirements. This report is intended for the information of management of the City of Rosemead, the United States Department of Housing and Urban Development via the Los Angeles County Community Development Commission, and California State Controller's Office (Division of Audits and Division of Local Government Fiscal ' Affairs). This restriction is not intended to limit the distribution of this report, which is a matter of public record. Pasadena, California October 10, 1990 r - 28 - L LI 1 1 1 F I I II I B I LNNI McGLADREY & PULLEN Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROL SYSTEMS USED TO ADMINISTER FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Honorable Mayor and Members of the City Council City of Rosemead, California We have audited the general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, and have issued our report thereon dated October 10, 1990. As part of our audit, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, the Yellow Book, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: INTERNAL ACCOUNTING CONTROLS Revenue/Receipts Expenditures: Purchasing Cash disbursements Payroll Financial Reporting ADMINISTRATIVE CONTROLS General requirements: Political activity Construction project administration Civil Rights enforcement and administration Cash management Davis-Bacon Relocation assistance and real property acquisition Federal financial reports - 29 - ' Specific requirements: Types of services allowed and unallowed Cost allocation Special requirements The management of the City of Rosemead, California, is responsible for ' establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected ' benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consistent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained, and fairly disclosed in reports. U u H 1 1 1 I Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance. programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study included all of the applicable control categories listed above. During the year ended June 30, 1990, the City of Rosemead, California, expended 96.78 of its total federal financial assistance under one major federal financial assistance program. With respect to internal control systems used in administering this major federal financial assistance program, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. With respect to the internal control systems used solely in administering the nonmajor federal financial assistance program of the City of Rosemead, California, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment and the flow of transactions through the accounting system. Our study and evaluation of the internal control systems used solely in administering the nonmajor federal financial assistance program of the City of Rosemead, California, did not extend beyond this preliminary review phase. Our study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Rosemead, California. Accordingly, we do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Rosemead, California. Further, we do not express an opinion on the internal control systems used in administering the major federal financial assistance programs of the City of Rosemead, California. Also, our audit, made in accordance with the standards mentioned above, would not necessarily disclose material weaknesses in the internal control systems used solely in administering the nonmajor federal financial assistance program. 30 - I 1 However, our study and evaluation and our audit disclosed the following condition that we believe results in more than a relatively low risk that errors or 1 irregularities in amounts that would be material to a federal financial assistance program may occur and not be detected within a timely period. The matter that we consider to be a reportable condition is described below. 1 CONDITION The City does not have adequate internal accounting controls because of an 1 inadequate segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. ' MANAGEMENT'S RESPONSE The City is aware of the lack of segregation of duties. At the present time, 1 however, the City is not large enough to employ additional personnel in the accounting department. The City is also of the opinion that it is not cost beneficial to hire additional accounting personnel. 1 In addition, it is the City's opinion that there are sufficient compensating controls to offset the lack of segregation of duties. The compensating controls include supervision, review, authorization and approval of 1 transactions by City Council and senior employees of the City. This condition was considered in determining the nature, timing and extent of 1 the audit tests to be applied in 1) our audit of the general purpose financial statements, and 2) our audit and review of the City of Rosemead, California, compliance with laws and regulations, noncompliance with which we believe could have a material effect on the allowability of program expenditures for the major 1 federal financial assistance program and nonmajor federal financial assistance program. This report does not affect our reports on the general purpose financial statements and on the City of Rosemead, California, compliance with 1 laws and regulations dated October 10, 1990. This report is intended for the information of management of the City of 1 Rosemead, the United States Department of Housing and Urban Development via the Los Angeles County Community Development Commission, and California State Controller's Office (Division of Audits and Division of Local Government Fiscal Affairs). This restriction is not intended to limit the distribution of this 1 report, which is a matter of public record. 1 Pasadena, California 1 October 10, 1990 1 31 1