Subject
title
Measure M2 Eligibility for the City of Huntington Beach
overview
Overview
The Orange County Transportation Authority’s Internal Auditor issued results of an independent auditor’s report on applying agreed-upon procedures related to the City of Huntington Beach’s compliance with the Measure M2 requirements for fiscal year 2023-24. The independent auditor’s report found that the City of Huntington Beach had used Measure M2 Local Fair Share funds for expenses that were deemed unallowable per the Measure M2 Ordinance No. 3. Based on this information, recommendations to address the independent auditor’s report and findings are presented.
recommendation
Recommendation(s)
A. Seek reimbursement of $29,249 from the City of Huntington Beach and find the City of Huntington Beach ineligible to receive Measure M2 net revenues for five years pursuant to Section 10.4 of Ordinance No. 3.
B. Authorize the Internal Auditor to engage independent auditor services to apply agreed-upon procedures to review the City of Huntington Beach’s Measure M2 Local Fair Share program and other expenditures for fiscal year 2024-25, fiscal year 2025-26, fiscal year 2026-27, fiscal year 2027-28, and fiscal year 2028-29, to enable the City of Huntington Beach to reestablish eligibility and authorize staff to deduct the review costs from any future net Measure M2 payments to the City of Huntington Beach.
C. Authorize the Chief Executive Officer to negotiate and execute an agreement with the City of Huntington Beach to formalize the required actions to reestablish eligibility and other terms.