1 North San Antonio Road

The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code Section 41004. Response 1: Respondent, City of Los Altos, disagrees with the finding that the City is not in compliance with California Government Code section 41004. Respondent notes that Government Code Section 41004 does not specify the manner in which the city treasurer is to provide the treasurer’s report. Respondent clarifies that the City does not contend that Government Code Section 37208 indemnifies it from complying with Government Code Section 41004; rather, the City referred to Section 37208 during the investigation as providing alternate means for the City Council to audit and ratify warrants. Respondent also notes that during the Civil Grand Jury’s investigation, the City informed the Grand Jury that while the City believes it is in compliance with Government Code Section 41004, the City is willing to provide the report in the format the Grand Jury recommends. Finally, respondent notes that while the Grand Jury appears to have been willing to work with another city to produce reports in a form and manner desired by the Grand Jury City of Los Altos was not afforded the same opportunity, which is disappointing given the City’s stated willingness to do the same.

The City of Los Altos does not produce treasurer’s reports in compliance with California Government Code section 41004. The reason for non-compliance was that the City of Los Altos’ financial policy does not require the preparation and submission of treasurer’s reports. It is an erroneous belief that internal policies excuse compliance with Government Code Section 41004. Response 2: Respondent, City of Los Altos, disagrees with the finding that the City is not incompliance with Government Code Section 41004. Respondent further disagrees with the finding that the City believes that internal policies excuse compliance with any State Law.