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OB - Item 3B - Housing Due Diligence ReportROSEMEAD SUCCESSOR AGENCY STAFF REPORT TO: THE HONORABLE CHAIR AND BOARD MEMBERS FROM: MATTHEW HAWKESWORTH, ASSISTANT CITY MANAGER DATE: OCTOBER 8, 2012 SUBJECT: HOUSING DUE DILIGENCE REPORT 1.91 h4hriMWA Under AB 1484, the Successor Agency was required to complete a due diligence review of the former Low and Moderate Income Housing Fund. At the last Oversight Board meeting the Board authorized staff to enter into an agreement with Vavrinek, Trine, Day & Co., LLP to conduct the review and work to complete the report by the October 1, 2012 deadline. The review was completed on October 1, 2012 and the report was sent to the various governmental agencies as required by the legislation. Prior to the Board formally accepting and approving the review, the Board is required to hold a public comment session at least five (5) working days prior to the approval. As such, the Board will need to set a date for a special meeting to consider the approval of the report on or after October 17, 2012. The Board may recall that the due date for the approval of the report is October 15, 2012; however, staff has been informed by the Department of Finance (DOF) that there are no penalties for late submissions and the DOF requests that the report be submitted as soon as reasonably possible. The Agreed Upon Procedures review was conducted in accordance with AB 1484 in order to ensure that all of the winding down procedures had been followed and to make a determination as to the amount of available fund balance in the Low and Moderate Income Housing Fund that may be remitted to the State. As noted in the report, there were no adverse findings made during the review and the Successor Agency has made the appropriate transfers of assets and duties as applicable. Staff Recommendation: That the Oversight Board take the following actions: 1. Open a public comment session to allow for public comment regarding the Agreed Upon Procedures review as required by AB 1484. 2. Set a date and time for a special meeting to consider the approval of the Agreed Upon Procedures review not earlier than October 17, 2012. ITEM NO. Rosemead Successor Agency Oversight Board October 8, 2012 Page 2 of 2 Per Health and Safety Code Section 34179.5 each Successor Agency is required to employ a licensed accountant, approved by the county auditor - controller, with experience and expertise in local government accounting to conduct a due diligence review to determine the unobligated balances available for transfer to taxing entities. Due Diligence reviews of the Low and Moderate Income Housing Fund must be submitted to the Oversight Board, the County Auditor - Controller, the State Controller's Office and the Department of Finance by October 1, 2012. After October 1st and prior to October 15 the Oversight Board is required to hold two public meetings. The first meeting, tonight's meeting, is being held in order to receive public comment as required by Health and Safety Code Section 34179.6 and the second meeting will be held in order to approve the due diligence review. Additionally, the Code requires a minimum of five (5) business days between the public comment meeting and the approval meeting; therefore, the approval meeting must be held after the October 15, 2012 deadline. Successor Agency staff has already contacted the Department of Finance regarding the difficulty meeting the imposed deadlines and has been reassured that no penalties will be assessed for missing the deadline. The Department of Finance has asked that the report be approved and submitted as soon as possible after the deadline. The Agreed Upon Procedures review focused on the Low and Moderate Income Housing Fund and the activities involving these funds as part of the winding down process through June 30, 2012. The review confirmed that all assets and responsibilities, where appropriate, had been transferred to the Successor Agency in accordance with the legislation. Additionally, the review confirmed that all expenditures that had been charged to the Low and Moderate Income Housing Fund were appropriate and in accordance with approved enforceable obligations. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process in accordance with the Brown Act. Prepared by: ry� Matthew E. Hawkesworth Assistant City Manager Attachments: Agreed Upon Procedures Review Rosemead Redevelopment Successor Agency Independent Accountants' Report on Applying Agreed -Upon Procedures pursuant to AB 1484 (Low and Moderate Income Housing Fund) June 30, 2012 Vavrinek, Trine, Day & Co., LLP I , 3 . Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES Oversight Board of the Rosemead Redevelopment Successor Agency Rosemead, California We have performed the Agreed -Upon Procedures enumerated in Exhibit A, which were agreed to by the California State Controller's Office, the California Department of Finance, the County Auditor - Controller, and the Rosemead Redevelopment Successor Agency (Successor Agency) to determine the Successor Agency's Low and Moderate Income Housing Fund's unobligated balances that are available for transfer to taxing entities, solely to assist you in ensuring that the Successor Agency is complying with its statutory requirements with respect to Health and Safety Code Section 34179.5. Management of the Successor Agency is responsible for the accounting records pertaining to statutory compliance pursuant to Health and Safety Code Section 34179.5. This Agreed - Upon Procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Exhibit A and Exhibits B through B -5 identify the procedures and findings. We were not engaged to and did not conduct - an audit, the objective of which would be the expression of an opinion as to the appropriateness of the results summarized in Exhibit A and Exhibits B through B -5. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Successor Agency Oversight Board, the Successor Agency, the California State Controller's Office, the California Department of Finance, and the County Auditor - Controller, and is not intended to be and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record. ��✓rt,u� �Tr „te . I�, E Co. LLP Rancho Cucamonga, California, September 24, 2012 8270 Aspen Street Rancho Cucamonga, CA 91730 TO 909.466.4410 Fax: 909.466.4431 www,vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund Our findings and procedures are as follows: A. Low and Moderate Income Housing Fund of the Successor Agency For the Low and Moderate Income Housing Fund, the following procedures were performed: 1. Obtain from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed - Upon Procedures (AUP) report the amount of the assets transferred to the Successor Agency as of that date. Findings — We obtained from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency (RDA) to the Successor Agency on February 1, 2012. We agreed the amounts on this listing to account balances established in the accounting records of the Successor Agency noting the total balance of all assets that were transferred to the Successor Agency Low and Moderate Income Housing Fund on February 1, 2012, was $6,586,507.08, and consisted of cash and cash equivalents and advances to other funds. We noted the housing activities and assets (assets and functions, rights, powers, duties, and obligations) of the former RDA were transferred to the City Rosemead on January 31, 2012. We obtained Resolution No. 2012 -08 authorizing the City to retain the housing assets and functions of the former RDA. We noted the City did not transfer housing assets as defined in HSC Section 34176 to the City of Rosemead's Housing Fund at February 1, 2012. 2. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures. A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to the city, county, or city and county that formed the redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Findings — The City asserted the State Controller's Office has not completed a review of transfers required under both Health and Safety Code (HSC) Sections 34167.5 and 34178.8. The Successor Agency reported one transfer in the amount of $208,854 made from the former RDA to the City (Corporation) for the period from January 1, 2011 through January 31, 2012. The transfer was an "Operating Shortfall Reimbursement ". We obtained a copy of the Assistance and Operating Agreement between the former RDA (Commission), the Rosemead Housing Development Corporation (Corporation) and the City of Rosemead dated August 13, 2002. The agreement specifies that the Low and Moderate Income Housing Fund of the former RDA will subsidize the shortfall of rents for the Corporation's affordable housing units. A listing of the transfers for the period from January 1, 2011 through January 31, 2012, is included as Exhibit B of the AUP report. The Successor Agency reported one transfer in the amount of $191,172 made from the Successor Agency Low and Moderate Income Housing Fund to the City (Corporation) for the period from February 1, 2012 through June 30, 2012. The transfer was an "Operating Shortfall Reimbursement ". We obtained a copy of the Assistance and Operating Agreement between the former RDA (Commission), the Rosemead Housing Development Corporation (Corporation) and the City of Rosemead. The agreement specifies that the Low and Moderate Income Housing Fund of the former RDA will subsidize the shortfall of rents for the Corporation's affordable housing units. We noted the payment was approved on the Final Recognized Obligation Payment Schedule (ROPS) for the period of January 1, 2012 through June 30, 2012. A listing of the transfers for the period from February 1, 2012 through June 30, 2012, is included as Exhibit B of the AUP report. We noted on February 1, 2012, the City transferred all of the Low and Moderate Income Housing Fund assets of the former RDA to the Rosemead Successor Agency Low and Moderate Income Housing Trust Fund. 3. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) [from the Successor Agency to any other public agency or private parties for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the ALP report. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Findings — The City asserted the State Controller's Office has not completed a review of transfers required under both HSC Sections 34167.5 and 34178.8. The Successor Agency also asserts no transfers were made from the former RDA or the Successor Agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012, and the period February 1, 2012 through June 30, 2012, respectively. 4. Perform the following procedures: A. Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency in the format set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the financial transactions should be presented using the modified accrual basis of accounting. End of year balances for capital assets (in total) and long -term liabilities (in total) should be presented at the bottom of this summary schedule for information purposes. B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers accounts fully for the changes in equity from the previous fiscal period. C. Compare amounts in the schedule relevant to the fiscal year ended June 30, 2010, to the State Controller's Report filed for the Redevelopment Agency for that period. D. Compare amounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. Findings — Procedure 4 is not applicable to the Low and Moderate Income Housing Fund. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund 5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When this procedure is applied to the Low and Moderate Income Housing Fund, the schedule attached as an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that assumed the housing function previously performed by the former redevelopment agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. The listings should be attached as an exhibit to the appropriate AUP report. Findings — For the Low and Moderate Income Housing Fund, we agreed the assets listed to the recorded balances reflected in the Successor Agency's accounting records. We noted the asset balance of the Low and Moderate Income Housing Fund as of June 30, 2012, was $6,393,727.73 and consisted of cash and cash equivalents and advances to other funds. We traced the recorded balances to the accounting records of the Successor Agency. See Exhibit B -1 for the listing of assets of the Low and Moderate Income Housing Fund as of June 30, 2012. 6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012, that are restricted for the following purposes: A. Unspent bond proceeds: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures, amounts set aside for debt service payments, etc.). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. B. Grant proceeds and program income that are restricted by third parties: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund C. Other assets considered to be legally restricted: i. The Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such Obtain documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by Successor the Agency as restricted. D. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of time for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. Findings — The Successor Agency asserted that the Low and Moderate Income Housing Trust Fund does not have assets that are restricted as of June 30, 2012. As such, the procedures noted above were not performed. 7. Perform the following procedures: A. Obtain from the Successor Agency a listing of assets as of June 30, 2012, that are not liquid or otherwise available for distribution (such as capital assets, land held for resale, long -term receivables, etc.) and ascertain if the values are listed at either purchase cost (based on book value reflected in the accounting records of the Successor Agency) or market value as recently estimated by the Successor Agency. B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously audited financial statement (or to the accounting records of the Successor Agency) and note any differences. C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions (this generally is not expected to occur), inspect the supporting documentation and note the circumstances. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund D. If the assets listed at 7(A) are listed at recently estimated market value, inspect the evidence (if any) supporting the value and note the methodology used. If no evidence is available to support the value and/or methodology, note the lack of evidence. Findings — We obtained from the Successor Agency a listing of assets as of June 30, 2012, that are not liquid, noting one asset was listed described as Advances to Other Funds totaling $4,477,945. We noted this amount relates to Low and Moderate Income Housing deposits deferred from FY 1985/1986 through FY 1990/1991 and FY 1993 /1994 through FY 1995/1996. Starting in FY 1986, the City deferred depositing its required 20% of gross tax increment revenues into the Housing Fund in accordance with Community Redevelopment Law Section 33334.6. Management asserted the former RDA began redepositing the 20% increment in FY 1997. We noted the asset value is recorded at cost. We traced the Advance to the June 30, 2011 audited financial statements and the accounting records of the Successor Agency, noting no exceptions. See Exhibit B -2 for the listing of Non Liquid Assets of the Low and Moderate Income Housing Fund as of June 30, 2012. 8. Perform the following procedures: A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain from the Successor Agency an itemized schedule of asset balances (resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and perform the following procedures. The schedule should identify the amount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal document that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payment of that obligation. i. Compare all information on the schedule to the legal documents that form the basis for the dedication or restriction of the resource balance in question. ii. Compare all current balances to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. iii. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule approved by the California Department of Finance. iv. Attach as an exhibit to the report the listing obtained from the Successor Agency. Identify in the report any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund B. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements and perform the following procedures: i. Compare the enforceable obligations to those that were approved by the California Department of Finance. Procedures to accomplish this may include reviewing the letter from the California Department of Finance approving the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012, and for the six month period July 1, 2012 through December 31, 2012. ii. Compare the forecasted annual spending requirements to the legal document supporting each enforceable obligation. a. Obtain from the Successor Agency its assumptions relating to the forecasted annual spending requirements and disclose in the report major assumptions associated with the projections. iii. For the forecasted annual revenues: a. Obtain from the Successor Agency its assumptions for the forecasted annual revenues and disclose in the report major assumptions associated with the projections. C. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and apply the following procedures to the information reflected in that schedule. i. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. ii. Obtain the assumptions for the forecasted property tax revenues and disclose major assumptions associated with the projections. iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose major assumptions associated with the projections. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to All 1484 - Low and Moderate Income Housing Fund D. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances necessary for retention in order to meet the enforceable obligations by performing the following procedures. i. Combine the amount of identified current dedicated or restricted balances and the amount of forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations ii. Reduce the amount of total resources available by the amount forecasted for the annual spending requirements. A negative result indicates the amount of current unrestricted balances that needs to be retained. iii. Include the calculation in the AUP report. Findings — We obtained from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements. See Exhibit B -3. We compared the enforceable obligations listed at Exhibit B -3 to those that were submitted on the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012, and for the six month period July 1, 2012 through December 31, 2012, and subsequently approved by the California Department of Finance, as noted in its letter dated May 30, 2012. We also compared the forecasted annual spending requirements to the legal document supporting each enforceable obligation, noting no exceptions. We obtained from the Successor Agency its assumptions relating to the forecasted annual spending requirements noting the spending requirements were based on the estimated Operating Shortfall Reimbursements projected over the term of the Assistance and Operating Agreement. We obtained from the Successor Agency its assumptions for the forecasted annual revenues, noting the revenues were based on anticipated tax increment claimed on the ROPS over the term of the Assistance and Operating Agreement. See Exhibit B -3. 9. If the Successor Agency believes that cash balances as of June 30, 2012, need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final BOPS for the period of July 1, 2012 through December 31, 2012, and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying (1) any dollar amounts of existing cash that are needed to satisfy that obligation, and (2) the Successor Agency's explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachment to the AUP report. Findings — We obtained from the Successor Agency a schedule listing dollar amounts of existing cash and cash equivalents needed to satisfy exiting enforceable obligations. See Exhibit B -4. We traced the enforceable obligations listed on Exhibit B-4 to the Recognized Enforceable Obligation Payment Schedules for the six month period July 1, 2012 through December 31, 2012, and for the six month through period from January 1, 2013 through June 30, 2013, noting no exceptions. The Successor Agency's explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation is described at Exhibit B -4. Rosemead Redevelopment Successor Agency Exhibit A Agreed -Upon Procedures Pursuant to AB 1484 - Low and Moderate Income Housing Fund 10. Include (or present) a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. Amounts included in the calculation should agree to the results of the procedures performed in each section above. The schedule should also include a deduction to recognize amounts already paid to the County Auditor - Controller on July 12, 2012, as directed by the California Department of Finance. The amount of this deduction presented should be agreed to evidence of payment. The attached example summary schedule may be considered for this purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund and for all other funds combined (excluding the Low and Moderate Income Housing Fund). Findings — We have included a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. See Exhibit B -5. 11. Obtain a representation letter from Successor Agency management acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachments to the report. Included in the representations should be an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. Managemenrs refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. Findings — The Successor Agency provided a management representation letter. No exceptions were noted. 10 \ k ( / § \ 2 §; /k ka]=2t oEfa ;, !i[ ;\ 0 i > j \xU \� \\ §! L) ; ) § ( \ \ ! ®[_, ) #k|)§ ! 0 \ 00 � a &!a4 gz $§ \\ )) , { q� $§ , )k - § {J �( cz \ � � # \ k § \\ §� 0 _ \$) e\ • )\ !!2 )\ 2 |! C4 ° ! \ k ( / § \ 2 §; /k ka]=2t oEfa ;, !i[ ;\ 0 i > j \xU \� \\ §! L) ; ) § ( Rosemead Redevelopment Successor Agency Low and Moderate Income Housing Fund - Listing of Assets As of June 30, 2012 - Unaudited Note: Excludes all assets held by the entity that assumed the housing function of the former RDA Assets Cash and investments Acct Acct name 255 -10001 Cash in City $ 24,570.06 255 -10002 Cash in CDC 1,899,441.78 255 -11210 LAIF (8,229.11) Total $ 1,915,782.73 Other Acct Acct name 255 -13050 Low/Mod Deferral (20% set -aside) 4,477,945.00 Total $ 4,477,945.00 TOTAL ASSETS AT 6/3012012: $ 6,393,727.73 Exhibit B -1 12 N a x W T V O . 00 e d k ° , e e V •� y x v =e w e o� rev dq w;a u C S eea � e e o e aaz n 3 v 0 a m v ul A W O CC W a� N �o ° o loll � m a n n a a a v sv vi 0 0 m N O H N 9 y 0 v V m k >w d a ; 0 a a a m § }i\ �) �)) /)\ �]§ ■ ;§ E§! § §. ((� §� N §)) �§ B® \� §| „ § § ) ) |§§ ! #| \d =9= QdGlt 9 \� g} 8, 8888 k k !. 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