05-11-20 City Council Agenda Packet - Work Session

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INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To Sarah Medary, City Manager Pro Term City of Eugene Eugene, Oregon We have performed the procedures enumerated below, which were agreed to by the City of Eugene (“City”), solely to assist you in connection with the determination of whether expenditure of the 2017 general obligation bond funds approved for issuance through voter’s approval of Ballot Measure 20-275 were expended in accordance with the purposes and limitations outlined in City Council Resolution No. 5204; namely that such expenditures were: a) used only for costs related to street preservation projects, fund bicycle and pedestrian projects and payment of bond issuance costs and not to expand the motor vehicle capacity of the street system; and, b) limited to projects included in Exhibit A to the Resolution unless upon completion of all of the projects listed in Exhibit A the Council adds other street preservation projects to the list in order to utilize unspent bond proceeds. Management is responsible for the accounting records pertaining to the use of the bond proceeds. 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 this 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. The City provided the following documents and information in connection with our agreed-upon procedures testing: An Excel spreadsheet detailing all charges allocated and/or invoices received by the City for expenditures related to the use of the bond proceeds; Copies of Resolution No. 5204 and Ballot Measure 20-275; Copies of bids and contracts issued by the City for any projects to be completed using the bond proceeds; Copies of supporting documentation including, but not limited to, invoices, cancelled checks, payroll records, certifications of payments and bank statements; and Copies of the City’s general ledger detail for the bond fund accounts. The procedures we performed and the related findings are as follows: (1)Expenditure testing. From January 1, 2019 through December 31, 2019, total expenditures for the projects funded by the 2017 bond proceeds were $8,355,736 per the City’s general ledger. We tested $4,660,201 or 55.77% of those expenditures. All tested expenditures were supported by appropriate documentation such as vendor invoices, certifications of payment, payroll records, signed contracts, and/or photographs of the work in progress. All tested expenditures were recorded in the proper account, fund and period and were spent on street projects included in Exhibit A of City Council Resolution No. 5204 or other street preservation projects approved by City Council, as permitted under Resolution 5204. No exceptions were noted.