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Bond oversight committee delays approval of Measures T and S annual reports pending auditor reconciliation
Summary
The Redwood City Citizens Bond Oversight Committee declined to approve its FY23-24 annual reports after finding numerical inconsistencies between the committee draft, district schedules and the independent auditorreport; members asked staff to obtain a corrected auditor report and reconcile fair-value investment adjustments before re-voting.
The Redwood City Citizens Bond Oversight Committee voted to defer approval of its annual reports for Measures T and S after members identified numerical inconsistencies between the draft committee letter, the districtfinancial schedules and the independent auditorreport.
At the meeting the committee questioned a series of mismatches in reported totals, particularly for Measure T. Rick Hunter led a line-by-line comparison and flagged that the auditorreport includes a net change in fair value of investments that was treated as revenue in the audit but not in the districtnarrative, producing divergent ending fund balances. Hunter said the discrepancy narrowed to revenue recognition: "the net change in fair value of investments is included in the auditor's report" and "in the district report, we have no change in fair value being included," which caused the ending fund balance difference.
Committee members also pointed out typographical errors and internal arithmetic mistakes in the draft letters and tables that must be corrected. Janet proposed retaining language that the committee "serves as your independent representative" but to add clarifying text citing the Education Code and the committee bylaws to explain that members are board-approved yet serve in an independent oversight capacity.
The group agreed not to move forward with approval tonight. Chair (leading the meeting) said staff should obtain an updated auditorreport and reconcile the 93,000 vs. 869 (or larger) interest/fair-value amounts before re-presenting the reports. Members discussed a conditional approval option if the corrected auditor report matches the committee's reconciled totals.
Next steps: staff will request that the auditors correct or annotate their report and will provide reconciled schedules showing how fair-value adjustments were treated. The committee will consider a short ad-hoc public meeting to approve the corrected reports once the auditor's update is available.
The committee did not take final action on either report at the meeting.
