2012 12 12 IAB MinutesINVESTMENT ADVISORY BOARD
MINUTES
WEDNESDAY, DECEMBER 12, 2012
CALL TO ORDER
A regular meeting of the La Quinta Investment Advisory Board was called to order
at 4:08 p.m. by Vice - Chairman Mortenson.
PRESENT: Board Members Mortenson (4:08), Park and Spirtos
ABSENT: Board Member Blum and Donais
STAFF PRESENT: Finance Director, Robbeyn Bird, Mr. Bryan Gruber, Audit
Manager, Lance Soll & Lunghard LLC, and Senior Secretary,
Vianka Orrantia
PUBLIC COMMENT - None
Yvonne Ferra, Student at College of the Desert and resident of the City of La
Quinta was present during the Investment Advisory Board meeting to observe the
functions of the Investment Advisory Board and the process of the investments
made within the City.
CONFIRMATION OF AGENDA
Ms. Bird requested that upon approval of the confirmation of the agenda that Item
1 of the Correspondence and Written Materials be the first item of discussion.
Motion - A motion was made by Board Members Spirtos /Park to approve the
agenda, as amended. Motion passed unanimously.
At this time Consent Calendar, Item 1 was discussed.
APPROVAL OF MINUTES
Approval of the Minutes of November 14, 2012
Motion - A motion was made by Board Members Mortenson /Park to approve the
Minutes of November 14, 2012. Motion passed unanimously.
INVESTMENT ADVISORY MINUTES 1 DECEMBER 12, 2012
CONSENT CALENDAR ITEMS
1. City of La Quinta FY 2011/2012 Audited Financial Statements
Mr. Gruber presented the Audited Financial Statement for year ended June 30,
2012. Mr. Gruber advised the Board on the audit and the audit process. He
further advised that the audit process is conducted in two steps: 1) Interim Audit,
which is conducted during the month of June, at that time the City's internal
controls are reviewed. These procedural controls are in place to protect the City's
assets and to ensure proper financial reporting. Mr. Gruber further advised that at
this time there are various tests and various verifications to the City's policies and
procedures to design an audit program during the second phase of the audit.
In response to Board Member Spirtos, Mr. Gruber gave examples of "tests"
conducted during the audit of the City's policies and procedures.
Mr. Gruber, further advised that the second phase of the audit is conducted after
the year -end (during the month of August, 2012); at this time the amounts of the
disclosures that are reported in the financial statements are audited, in addition, to
confirming investments amounts through third party confirmation letters. The first
letter issued to the City is in accordance with auditing standards and various other
standards that are related to this particular communication. As a result, the final
report issued to the City is the independent auditors report (the financial
statements), which is an unqualified opinion and the best opinion that could be
received in a financial statement audit. In addition, another form of communication
is a report of internal controls and compliance, which there were no noted material
weaknesses or issues of non - compliance for fiscal year ended June 30, 2012.
Mr. Gruber advised that the most significant impact to this year's Comprehensive
Annual Report is the dissolution of the Redevelopment Agency. As of a result of
the dissolution, the reporting of the RDA holdings are reported as all former RDA
assets taken from the City and held in a separate "Fiduciary Trust" account.
Mr. Gruber advised that on page 3, the City provides a management discussion and
analysis which provides an overview of the audit. Mr. Gruber further advised that
page 46 of the financial statements is a reporting of cash and investments
according to GASB 40.
In response to Board Member Spirtos, Mr. Gruber advised that the reporting of the
RDA within the financial statements were the first seven months of the fiscal year
and at that time was still considered the 'Redevelopment Agency" and not yet the
Successor Agency.
INVESTMENT ADVISORY MINUTES 2 DECEMBER 12, 2012
In response to Board Member Mortenson, Mr. Gruber summarized for the Board the
process of the financial statements.
The Board at this time thanked Mr. Gruber for his attendance.
2. Transmittal of Treasury Report for October 2012
Ms. Bird presented and reviewed the staff report for the month October 2012.
In response to Board Member Spirtos, Ms. Bird clarified that page 2, Column
"Other" represents the amortization of premiums /discounts, and is clarified in
footnote 2 also on page 2.
It was suggested by the Board that staff consider retitling this column.
Motion - A motion was made by Board Members Spirtos / Mortenson to review,
receive and file the Treasurer's Report for October 2012, as submitted. Motion
passed unanimously.
BUSINESS SESSION - None
CORRESPONDENCE AND WRITTEN MATERIAL
1. Month End Cash Report, November 2012 and Pooled Money Investment Board
Report - October 2012
Ms. Bird advised that at the direction of the Board at the previous Board meeting,
staff combined the Pooled Money Investment Board Report with the Month End
Cash Report.
Ms. Bird presented and reviewed the Month End Cash Report for the month of
November and the Pooled Money Investment Board Report for October 2012.
Noted and Filed.
BOARD MEMBER ITEMS
Ms. Bird reminded the Board that the joint Board /Commission meeting with the City
Council is scheduled for Tuesday, January 22, 2013 at 5:00 p.m. at the La Quinta
Library. The City Clerk's office has requested RSVPs no later than January 8,
2013.
INVESTMENT ADVISORY MINUTES 3 DECEMBER 12, 2012
Mr. Bird requested that the February 13, 2013 Board meeting be rescheduled.
Staff will follow -up with the Board on available dates.
ADJOURNMENT
There being no further business, it was moved by Board members Spirtos /Park to
adjourn this meeting at 4:47 p.m. Motion passed unanimously.
ly
Vianka SeniorAaeci
City of La Quinta, California
INVESTMENT ADVISORY MINUTES 4 DECEMBER 12, 2012