May 26, 2005
(For Board: June 10, 2005)

REPORT OF THE FINANCE-AUDITING COMMITTEE

Honorable Board of Directors
Golden Gate Bridge, Highway
and Transportation District

Honorable Members:

A meeting of the Finance-Auditing Committee was held in the Board Room, Administration Building, Golden Gate Bridge Toll Plaza, San Francisco, California, on Thursday, May 26, 2005, at 11:10 a.m., with Chair Stroeh presiding.

Committee Members Present (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)

Committee Members Absent (3): Directors Boro, Murray and Shahum

Other Members Present (1): Director Moylan

Staff Present: District Engineer Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorney David J. Miller; Acting General Manager and Deputy General Manager/Bridge Division Kary H. Witt; Acting Deputy General Manager/Bus Division Gene Walker; Acting Deputy General Manager/Ferry Division Rebecca Wessling; Deputy General Manager/Administration and Development Teri W. Mantony; Risk Management and Safety Director Bill Stafford; Accounting Manager Bette Joe; Budget and Program Analysis Manager Jennifer Mennucci; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Karen B. Engbretson

Visitors Present: Nancy Jones and Sunshine Crump, Public Financial Management; Rex Clack, Sterling and Clack; Scott Kramer, Ron Ramos and Shannon Terry, Claims Management, Inc.; Sharon Glenn, John Glenn Adjusters and Administrators; Lewison Lee Lem, California State Automobile Association

1. Ratify Actions by the Auditor-Controller

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith outlined disbursements and investments. A copy of the report is available in the Office of the District Secretary.

At the meeting, Nancy Jones reported on the latest economic news and described current interest rates in the District’s portfolio. Ms. Jones introduced Ms. Sunshine Crump, a Portfolio Manager in Public Financial Management’s Harrisburg, Pennsylvania office, who helps manage the District’s investment portfolio.

Ms. Jones stated that the Federal Reserve Bank is on a path towards increasing interest rates, and although interest rates will continue to increase through the end of the year, it is expected that the rate of increase will slow down. She further stated that the interest rate for short-term securities is anticipated to reach 3.75%, or 4% by December 2005. She noted that this month, the District’s Portfolio Manager purchased a longer-term security for the first time in several months. Ms. Jones described how recent financial troubles experienced by the big automakers, General Motors and Ford Motor Company, affected the entire corporate security market, providing an opportunity to purchase a 3-1/2 year corporate note at a very favorable rate for the District. She further noted that the District has enough liquidity to take advantage of longer-term securities as they become available.

Staff recommended and the Committee concurred by motion made and seconded by Directors EDDIE/COCHRAN to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize the following actions by the Auditor-Controller:

a. Ratify commitments and/or expenditures totaling $26,691.56;

b. Ratify investments made by the Auditor-Controller during the period April 12, 2005 through May 16, 2005 as follows:

Security

Purchase Date

Maturity Date

Original Cost

Percent Yield

Morgan Stanley Co. Comm Paper

04/19/05

06/20/05

$5,973,974.17

3.00

Morgan Stanley Co. Comm Paper

04/19/05

06/20/05

$2,069,253.33

3.00

Sheffield Rec Corp. Comm Paper

04/22/05

05/11/05

$1,996,917.78

2.92

General Electric Co. Comm Paper

05/05/05

05/25/05

$1,996,655.56

3.01

Associates Corp. Notes

05/11/05

11/01/08

$5,298,900.00

4.375

General Electric Co. Comm Paper

05/11/05

05/25/05

$1,997,666.67

3.00


c. Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between May 17, 2005 and June 13, 2005, as well as the investment of all other funds not required to cover expenditures that may become available.
d. Accept the Investment Report for April 2005 prepared by Public Financial Management.

Action by the Board - Resolution
CONSENT CALENDAR

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

2. Closed Session
[NOTE: The following item was taken out of Agenda Item order.]

Attorney David Miller, at the request of Chair Stroeh, stated that the Committee would convene in closed session to discuss three matters of pending litigation listed on the agenda as Item Nos. 11.a.1., Robert James vs. Golden Gate Bridge, Highway and Transportation District (District), 11.a.2, Michael D. Koller vs. District and 11.b.1, Virginia Linder vs. District.

After closed session, Chair Stroeh called the meeting to order in open session with a quorum present. Attorney Miller reported that the Committee met in closed session, as permitted by the Brown Act, to discuss the items of pending litigation, as listed above. Mr. Miller stated that with regard to the pending litigation and workers’ compensation items noted above, the Committee provided settlement authority for disposition of these matters.

Action by the Board – None Required

3. Authorize Budget Adjustments and/or Transfers

a. Budget Increase Relative to Change Order No. 91 to Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures, with Shimmick Construction Company, Inc./Obayashi Corporation JV, for repair and painting of steel elements at the Fort Point Arch Lower Truss

This item was referred to the Finance-Auditing Committee from the Building and Operating Committee meeting of May 26, 2005, for concurrence with a budget adjustment.

Staff recommended and the Committee concurred by motion made and seconded by Directors EDDIE/MIDDLEBROOK to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize an increase in the Bridge Division Capital Budget and in the contingency fund for Contract No. 99 B-5, Golden Gate Bridge Seismic Retrofit – Phase II, South Approach Structures, in the amount of $3,600,000, to be funded with federal grant funds secured for the Seismic Retrofit Project, relative to Change Order No. 91 to Contract No. 99 B-5 with Shimmick Construction Company, Inc./Obayashi Corporation JV, for repair and painting of steel elements at the Fort Point Arch Lower Truss; contingent upon the availability of federal grant funds and subject to the Federal Highway Administration’s concurrence.

Action by the Board – Refer to the
Building and Operating Committee Meeting of May 26, 2005

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

b. Budget Increase Relative to Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures, for Construction Administration Services

This item was referred to the Finance-Auditing Committee from the Building and Operating Committee meeting of May 26, 2005, for concurrence with a budget adjustment.

Staff recommended and the Committee concurred by motion made and seconded by Directors EDDIE/MIDDLEBROOK to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize an increase in the Bridge Division Capital Budget, in the amount of $2,057,500, for costs relative to District staff and consultants to administer an increase in scope and time for Contract No. 99-B-5, of which $600,000 will be allocated for District staff time, said increase to be funded with federal grant funds secured for the Seismic Retrofit Project and with the understanding that this increase is contingent upon the availability of federal grant funds and subject to the Federal Highway Administration’s concurrence.

Action by the Board – Refer to the
Building and Operating Committee Meeting of May 26, 2005

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

4. Authorize Filing an Application with the Metropolitan Transportation Commission for FY 05/06 Transportation Development Act and State Transit Assistance Funds to Support Bus, Ferry and Paratransit Services

In a memorandum to Committee, Capital and Grant Program Manager Nina Rannells, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on the availability of Transportation Development Act (TDA) statewide sales tax revenues and State Transit Assistance Act (STA) gasoline and diesel fuel sales tax revenues. The report stated that TDA and STA funds are made available annually to the District for operating assistance through the Metropolitan Transportation Commission. The report also stated that the District is eligible to claim $13,574,190 TDA funds and $2,372,769 STA funds in FY 05/06 for various operating purposes. The report further stated that consistent with past years, the District is eligible to receive 100 percent of the Marin County TDA apportionment, or $9,346,574, of which 26%, or $2,430,109, will be credited back to Marin County to support local transit services consistent with Marin Local Transit Services Agreement between this District and the Marin County Transit District. The report also stated that the District is eligible to receive 25% of the Sonoma County apportionment, or $4,227,616. The report also provided details regarding the STA funds, including the amounts to be credited back to Marin County for local transit services. A copy of the report is available in the Office of the District Secretary.

Staff recommended and the Committee concurred by motion made and seconded by Directors MIDDLEBROOK/REILLY to forward the following recommendation to the Board of Directors for its consideration.

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize the General Manager to execute and file an application and related assurances with the Metropolitan Transportation Commission for FY 05/06 Transportation Development Act (TDA) and State Transit Assistance (STA) funds in the amount of $13,574,190 for TDA funds and in the amount of $2,372,769 for STA funds, to support bus, ferry and paratransit services.

Action by Board – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

[Note: The above recommendation was forwarded to the Board of Directors meeting of May 27, 2005, for action.]

5. Discussion Relative to the Draft FY 05/06 Operating and Capital Budgets

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided clarifications from staff regarding the proposed FY 05/06 Operating and Capital Budgets (FY 05/06 Budget), including answers to the following questions posed by the Committee at the presentation of the draft FY 05/06 Budget at the May 13, 2005 meeting of the Committee:
1. The Marin Local Service Contract made up what portion of District Reserves? In response, the report provided a table that depicted the applicable figures for Actual FY 03/04, Actual FY 04/05 and Proposed FY 05/06, noting that the final adopted FY 05/06 Budget will show a figure that carries out the Marin Local Service Contract’s term for a full 12 months, and will be adjusted as needed.
2. What was the change to the Personal Control List since the application of the Strategic Plan for Long-Term Financial Stability? In response, the report provided a table that depicted the numbers of regular and limited term positions in FY 01/02, FY 03/04, FY 05/06.
A copy of the report is available in the Office of the District Secretary.

At the meeting, Joseph Wire briefly summarized the staff report, describing the questions and answers noted above. Mr. Wire stated that the Deputy General Managers for the Bridge and District Divisions, as well as the District Engineer, would provide short overviews at this meeting of the Workplans of their respective divisions/departments, including accomplishments made in FY 04/05 and goals for FY 05/06, as outlined in the draft FY 05/06 Budget document. He further stated that the Deputy General Managers for the Bus and Ferry Divisions would provide such overviews at the June 9, 2005 meeting of the Committee.

Kary Witt described in detail the Bridge Division accomplishments, workplans and goals as listed in the draft FY 05/06 Budget document on pages 27 to 28 and pages 37 to 40. Among the many accomplishments of the Bridge Division, Mr. Witt highlighted the following:
1. He stated that the Bridge Division continues to enhance Bridge security, and obtained a $2.1 million grant from the U.S. Department of Homeland Security for physical security improvements on the Golden Gate Bridge.
2. He stated that the Bridge Division work crews continue to systematically address the most critical of Bridge maintenance items identified in the Golden Gate Bridge 2001 Biennial Inspection, including the completion of a two-year project to restore all suspender rope connectors.
3. He stated that the Bridge Division conducts research and development to find the most cost-effective maintenance practices, equipment and materials, such as using ultra high-pressure water jets, rather than the traditional sand blasting, for structural surface preparation.

Teri Mantony described in detail the District Division accomplishments, workplans and goals as listed in the draft FY 05/06 Budget document on pages 71 to 76 and pages 81 to 88. She noted that with the reorganization of several departments and changes in key staff, the District Division’s theme for next fiscal year is “stabilize and organize.” Among the many accomplishments of the District Division, Ms. Mantony highlighted the following:
1. She noted that in a recent meeting with representatives from the Government Accounting Office, the District’s Spanish bilingual outreach efforts were complimented
2. She reported that the number of new Workers’ Compensation claims has declined by 7%, and that costs are down by 22% in the past fiscal year, despite increased medical costs in general.
3. She described the new Financial Management Information System (FMIS) and its demand for not only new technology component upgrades, but new staffing skills as well. She noted that the FMIS represents the first significant overhaul of the District’s internal computer systems in 30 years.

Denis Mulligan briefly described the accomplishments, workplans and goals of the Engineering Department, noting that besides the Golden Gate Bridge Seismic Project, Engineering staff also undertakes routine capital and maintenance projects supporting all operating divisions of the District.

Discussion ensued, including the following:

  • President Middlebrook inquired as to the status of the Main Cable Renovation project. In response, Denis Mulligan stated that this project will be undertaken in FY 05/06.
  • Directors Stroeh and Pahre commended staff on the impressive presentation of accomplishments, workplans and goals, noting that it shows the magnitude of responsibilities undertaken by District staff.
  • Director Moylan inquired regarding efforts to enforce the 45 mile-per-hour speed limit on the Golden Gate Bridge. In response, Kary Witt stated that the California Highway Patrol (CHP) steps up speed enforcement on the Bridge whenever it receives special grant funds to do so. He further noted that the District recently purchased a second Laser Imaging Detection and Ranging (LIDAR) unit for the CHP, a technology that facilitates speed detection on steel structures.

Public Comment

Lewison Lee Lem, Transportation Policy Manager for the California State Automobile Association (CSAA), expressed his opinion that the District is one of the best transit agencies in the United States, and praised District staff as receptive and cooperative. He noted the common goals of CSAA and the District, and pledged CSAA’s support for the District’s efforts to solve its financial deficit.

Action by the Board – None Required

6. Authorize Execution of an Agreement with John Glenn Adjusters and Administrators Relative to RFP No. 2005-D-7, Third Party Administrator for Public Liability Claims Investigation and Adjustment Services
In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to authorize execution of a Professional Services Agreement with John Glenn Adjusters and Administrators, to provide public liability claims investigation and adjustment services to the District.
The report also stated that on March 29, 2005, the District issued a Request for Proposals (RFP) from qualified Third Party Administrators (TPAs) for administration of the District’s Bus transit system public liability claims (including bodily injury and property claims), Bridge Division claims and claims arising from incidents in the Ferry parking lots and Ferry administration terminal and buildings, as well as other miscellaneous claims.
Five proposals were received by the District from the following companies: (1) Hazelrigg Risk Management Services, Inc.; (2) John Glenn Adjusters and Administrators; (3) Ward North America; (4) Pearce & Frankman/Koning and Associates, a Joint Venture; and, (5) Carl Warren and Company. The proposals were evaluated by a selection committee based on firm experience, experience of the team assigned to the District account, overall approach to implementing the scope of work, as well as the fee for services.
The report further stated that the evaluation panel was unanimous in its recommendation to award the contract to John Glenn Adjusters and Administrators (John Glenn). In addition to serving the District for a number of years, John Glenn is the current Third Party Administrator (TPA) for several other Bay Area transportation agencies, including San Mateo County Transit District (SamTrans) and Valley Transportation Authority (VTA). John Glenn has 39 years direct relevant experience and a team that is familiar with District operations, staff and attorneys. John Glenn would provide the District with on-line access via the Internet to STARS, its Risk Management Information System that is customized for transit properties. The District’s entire claims history (30 years) would be accessible electronically to District staff. John Glenn has achieved an impressive record pursuing subrogation, having collected more than $300,000 for damages sustained to District property since July 2000. Finally, John Glenn has a proven record of thorough, comprehensive claims investigation which helps contain defense attorney costs. A copy of the report is available from the Office of the District Secretary.

Discussion ensued, including the following:

? Chair Stroeh inquired as to why the selected firm was not the low bidder. In response, Mr. Wire stated that the RFP ground rules for professional service agreements do not look to cost as the sole criterion for award of contracts. He further stated that staff conducted pre-award negotiations with the top-ranked proposer, John Glenn, which resulted in a lower flat fee, which could be adjusted annually in the event of significant changes in case load volume.

Staff recommended and the Committee concurred by motion made and seconded by Directors EDDIE/COCHRAN to forward the following recommendation to the Board of Directors for its consideration.

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize execution of a Professional Services Agreement with John Glenn Adjusters and Administrators, Walnut Creek, CA, relative to RFP No. 2005-D-7, Third Party Administrator for Public Liability Claims Investigation and Adjustment Services, Inc., for administration of public liability and miscellaneous claims for the Bus, Bridge and Ferry Divisions, at a cost of $341,452 for Year 1, $315,155 for Year 2 and $289,364 for Year 3, for a three-year period commencing July 1, 2005, with two optional one-year extensions, exercisable by the General Manager or designee; with the understanding that requisite funds are available in the FY 05/06 Operating Budget and that funds for Years 2 and 3 will be included in the appropriate future fiscal years’ Operating budgets.

Action by Board – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

[Note: The above recommendation was forwarded to the Board of Directors meeting of May 27, 2005, for action.]

7. Approve Actions Relative to the Line of Credit Agreement (Agreement) with JP Morgan Chase & Co. (JP Morgan) for the Commercial Paper Program:
1. Authorize Execution of Amendments to the Agreement with JP Morgan; and,
2. Authorize Execution of a Three-year Extension of the Agreement with JP Morgan

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided staff’s recommendation relative to changes to the Line of Credit Agreement with JP Morgan Chase & Co. (JP Morgan) for the Commercial Paper Program. The report stated that the Commercial Paper Program began on July 12, 2000, with the issuance of $61 million in short-term debt to fund the District’s share of the Golden Gate Bridge Seismic Retrofit project and Main Cable Renovation project. Since that time, a series of one-year line of credit agreements with JP Morgan have been used as the most cost-effective way to assure creditors that sufficient funds would always be available for debt service payments. The report noted that the terms of the Commercial Paper Program require that a line of credit agreement be in place for the projected 30-year duration of the program.
The report also stated that JP Morgan was originally chosen to provide this line of credit agreement because it is a world leader in providing financial liquidity agreements for public sector entities like the District. It is recommended by staff and the District’s financial advisor that the District continue its contractual relationship with JP Morgan. The fee included in the agreement renewal represents a decrease of 3 basis points from the fee charged last year, and a three-year agreement was negotiated to lock in a low, stable rate for this service for the duration of the term from July 6, 2005 to July 6, 2008. In order to allow for this longer term, the original Line of Credit Agreement must be amended to permit multi-year terms, and to allow for an escalating point increase in case the District’s credit rating is downgraded. The fee of 20 basis points for the agreement equates to an approximate annual fee of $153,000. A copy of the report is available from the Office of the District Secretary.

Staff recommended and the Committee concurred by motion made and seconded by Directors PAHRE/MIDDLEBROOK to forward the following recommendation to the Board of Directors for its consideration.

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors approve the following actions relative to the Line of Credit Agreement (Agreement) with JP Morgan Chase & Co. (JP Morgan) for the Commercial Paper Program:
a. Authorize execution of amendments to the Agreement with JP Morgan to amend Section 2.10 to permit multi-year terms, and amend Section 2.06 to add a third step to the escalating point increase for a downgrade in the credit rating in order to reflect the longer three-year extension period; and,
b. Authorize execution of a three-year extension to the Agreement with JP Morgan, at the cost of twenty (20) basis points, for the approximate annual fee of $153,000, to provide financial liquidity agreements, for the period of July 6, 2005, to July 6, 2008;
with the understanding that requisite funds are available in the FY 05/06 Operating Budget and that funds for the remaining years will be included in the appropriate future fiscal years’ Operating budgets.

Action by Board – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

[Note: The above recommendation was forwarded to the Board of Directors meeting of May 27, 2005, for action.]

8. Authorize Execution of a Three-Year Extension of the Core Natural Gas Sales and Aggregation Agreement with Association of Bay Area Governments Publicly Owned Energy Resources (ABAG POWER)

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation regarding the District’s Core Natural Gas Sales and Aggregation Agreement (Natural Gas Agreement) with Association of Bay Area Governments Publicly Owned Energy Resources (ABAG POWER). The report stated that ABAG POWER is a Joint Powers Agency created by ABAG in 1998 to provide electricity and natural gas aggregation services to local governments in Pacific Gas & Electric’s (PG&E’s) territory. As a member of the ABAG POWER JPA, the District participated in the Direct Access Electric Aggregation Program which was created as a result of the California energy crisis in 2000-2001. The Direct Access Electric Aggregation Program was suspended in July 2001 and the Board of Directors, by Resolution No. 2004-044 at its meeting of May 28, 2004, authorized execution of an agreement with ABAG POWER to accept distribution of approximately $452,392 to the District from the ABAG POWER Electric Program.

The report also stated that the District continues to participate in the ABAG POWER Natural Gas Program, which has continued unabated since 1998. The report further stated that recently, the ABAG POWER Executive Committee approved changes to the Natural Gas Agreement to update the agreement in accordance with current regulatory conditions and program operational characteristics, as well as change the program term to a three-year “Rolling Evergreen” arrangement. This type of arrangement will automatically renew every three years for members of the ABAG POWER Natural Gas Program, unless a member gives notice to terminate three years in advance. It is recommended that a three-year extension be authorized to the Natural Gas Agreement, in order to benefit from lower natural gas prices resulting form longer-term gas purchase agreements. A copy of the report is available from the Office of the District Secretary.

At the meeting, Mr. Wire briefly summarized the staff report, noting that the District’s participation in the ABAG POWER Natural Gas Program has resulted in savings of approximately 15% to the District for natural gas costs in the current fiscal year. He further noted that the District represents only two to three percent of the entire ABAG POWER Natural Gas Program consortium.

Staff recommended and the Committee concurred by motion made and seconded by Directors COCHRAN/REILLY to forward the following recommendation to the Board of Directors for its consideration.

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize execution of a three-year extension of the Core Natural Gas Sales and Aggregation Agreement with Association of Bay Area Governments Publicly Owned Energy Resources (ABAG POWER), for the purchase of gas on members’ behalf; with the understanding that this extension will change the program term to institute a three-year “Rolling Evergreen” arrangement; with the further understanding that continued participation in this program will result in savings to the District for purchase of natural gas.

Action by Board – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie and Reilly; President Middlebrook (Ex-Officio)
NOES (0): None
ABSENT (3): Directors Boro, Murray and Shahum

[Note: The above recommendation was forwarded to the Board of Directors meeting of May 27, 2005, for action.]

9. Status Report on Yearly Financial Audit by Macias, Gini & Company, LLP

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided the Letter of Engagement for the FY 04/05 financial audit from the District’s external auditors, Macias, Gini & Company, LLP (Macias). The report stated that the Letter of Engagement reconfirms Macias’ understanding of services to be provided to the District to ensure compliance in accordance with Government Auditing Standards.

The report also stated that in addition to the auditing of the basic financial statements of the District, Macias will also:
1. Submit documentation that will include the schedule of expenditures of federal awards that will not be audited, but will be subject to “in relation to” procedures;
2. Audit the National Transit Database Report and the Transportation Development Act Compliance Report; and,
3. Submit the Management Discussion and Analysis required by the Governmental Accounting Standards Board.
A copy of the report, with Macias’ Letter of Engagement attached, is available in the Office of the District Secretary.

Action by the Board– None Required

10. Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Ten Months Ending April 2005

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a schedule comparing categories of Bridge traffic for ten months ending April 30, 2005. A copy of the report is available in the Office of the District Secretary.

Action by the Board– None Required

11. Review of Financial Statements for Ten Months Ending April 30, 2005

a. Statement of Revenue and Expenses

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a financial statement entitled, Statement of Revenues and Expenses for Ten Months Ending April 30, 2005. A copy of the report is available in the Office of the District Secretary.

Action by the Board– None Required

b. Statement of Capital Programs and Expenditures

In a memorandum to Committee, Capital and Grants Manager Nina Rannells, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a financial statement entitled, Statement of Capital Programs and Expenditures for Ten Months Ending April 30, 2005. A copy of the report is available in the Office of the District Secretary.

Action by the Board– None Required

12. Public Comment

Public comment was received relative to Agenda Item No. 5, above.

13. Adjournment

All business having been concluded, the meeting was adjourned at 12:05 p.m.

Respectfully submitted,

 

J. Dietrich Stroeh, Chair
Finance-Auditing Committee
JDS:JST:KBE:kbe