Res 2070 - Comply with HB2174COUNCIL BILL NO. 2993
RESOLUTION NO. 2070
A RESOLUTION TO COMPLY WITH HB 2174 (2015) AFTER RECEIPT OF THE FY 2014-
2015 AUDIT REPORT
WHEREAS, under Oregon law, the City is required to prepare and file an
annual audit report with the Oregon Secretary of State; and
WHEREAS, the City commissioned an independent audit by Grove, Mueller
and Swank, P.C. ("the City Auditor") for FY 2014-2015; and
WHEREAS, the City Auditor reported on the results of the FY 2014-2015
Audit Report at the November 9, 2015 City Council meeting; and
WHEREAS, HB 2174 (2015) requires that this Resolution be adopted by the
City Council in response to the FY 2014-2015 Audit Report by the City Auditor,
NOW, THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. The City Auditor found two matters that should be addressed in
this Resolution in conformance with HB 2174 (2015).
Section 2. In the first matter found by the City Auditor, the City paid $4.2
million to the Oregon Department of Transportation (ODOT) as the City's
contribution to completing the 1-5 Interchange Improvement and this amount
was properly budgeted by the City in FY 2015-2016. The City Auditor found that
since the 1-5 Interchange Improvement was completed early, and thus needed
to have been recorded as of June 30, 2015. It is noted that the FY 2015-2016
Budget did include the ODOT expenditure. It is highly unlikely that this situation
would ever recur. City staff will continue to monitor the progress on various
projects to be sure that the budgeted expenditures align with the actual project
timing.
Section 3. In the second matter found by the City Auditor, when the City
budgeted the Housing Rehabilitation Fund in FY 2014-2015, it accounted for a
portion of this fund as a "pass-through" when it actually was a grant. The City
Auditor found that the amount of the grant should have been included as
Materials & Services in the FY 2014-2015 Budget as opposed to "pass-through."
The City believes that this is also an uncommon situation associated with this
program. City staff procedure will continue to emphasize the importance of
Page 1 - Council Bill No. 2993
Resolution No. 2070
early Finance Department review of primary documentation related to funding
arrangements and grants.
Section 4. The City Council finds that neither of these matters represent
spending that was not approved and that adequate actions have been
immediately taken to comply with HB 2174 (2015).
Approved as to form: /f/25/to Ib
City Attorney Date
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST: �-4 L
Heather Pierson, City Recorder
rage 1 - Council Bo. 2993
Resolution No. 2070
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