Show Me the Money:

Conclusions 14

• CL1 Page 13
  The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code section 41004.
• CL2 Page 13
  The City of Los Altos does not produce treasurer’s reports in compliance with California Government Code section 41004. The reason provided 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.
• CL3 Page 13
  The Town of Los Altos Hills produces monthly treasurer’s reports but the content of those reports lacks monthly disbursements, receipts, and fund balances required by California Government Code section 41004.
• CL4 Page 13
  The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
• CL5 Page 14
  The City of Milpitas does not produce monthly treasurer’s reports as required by California Government Code section 41004.
• CL6 Page 14
  The City of Campbell does not produce monthly treasurer’s reports as required by California Government Code section 41004.
• CL7 Page 14
  The City of Monte Sereno does not produce monthly treasurer’s reports as required by California Government Code section 41004.
• CL8 Page 14
  When the Civil Grand Jury began this investigation, the City of Cupertino was not in compliance with California Government Code section 41004. However, starting in March 2022, the City of Cupertino began producing treasurer’s reports compliant with Section 41004.
• CL9 Page 15
  The Civil Grand Jury commends the City of Saratoga for producing monthly treasurer’s reports that include disbursements, receipts, and fund balances. The City of Saratoga is in full compliance with California Government Code section 41004.
• CL10 Page 15
  The Civil Grand Jury commends the elected city treasurer for producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances. The City of Morgan Hill is in full compliance with California Government Code section 41004.
• CL11 Page 12
  Within the County, there is widespread noncompliance with California Government Code section 41004 by the general law cities. The Civil Grand Jury commends the cities of Saratoga and Morgan Hill for being in full compliance and notes the City of Cupertino’s quick action to become compliant. The Civil Grand Jury recommends that the noncompliant cities of Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno comply with Section 41004. This is to be done by producing treasurer’s reports at least once each month containing the required disbursements, receipts, and fund balance information. The benefit of implementing this recommendation overshadows any limited cost impact since existing staff could compile the report. In short, there is great benefit in producing these reports, as they improve financial transparency to the residents of the cities.
• CL12 Page 13
  FINDINGS AND RECOMMENDATIONS It is recommended that noncompliant cities start producing treasurer’s reports as required by law. Some cities produce abbreviated information that does not include requisite financial information as defined in state Government Code section 41004. Some cities produce requisite reports, but not on a monthly basis. Finding 1 The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code section 41004. Recommendation 1 The City of Los Altos should comply with Government Code section 41004 by submitting monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances and by filing those reports with the city. This recommendation should be implemented by March 15, 2023. Finding 2 The City of Los Altos does not produce treasurer’s reports in compliance with California Government Code section 41004. The reason provided 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. Recommendation 2 The City of Los Altos should amend its financial policy to require that monthly treasurer’s reports be prepared and submitted in accordance with California Government Code section 41004 by March 15, 2023. Finding 3 The Town of Los Altos Hills produces monthly treasurer’s reports but the content of those reports lacks monthly disbursements, receipts, and fund balances required by California Government Code section 41004. Recommendation 3 The Town of Los Altos Hills should update their existing monthly reports to include monthly disbursements, receipts, and fund balances by March 15, 2023. Finding 4 The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
• CL13 Page 14
  Recommendation 4 The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023. Finding 5 The City of Milpitas does not produce monthly treasurer’s reports as required by California Government Code section 41004. Recommendation 5 The Civil Grand Jury recommends that the City of Milpitas comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023. Finding 6 The City of Campbell does not produce monthly treasurer’s reports as required by California Government Code section 41004. Recommendation 6 The City of Campbell should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023. Finding 7 The City of Monte Sereno does not produce monthly treasurer’s reports as required by California Government Code section 41004. Recommendation 7 The City of Monte Sereno should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023. Finding 8 When the Civil Grand Jury began this investigation, the City of Cupertino was not in compliance with California Government Code section 41004. However, starting in March 2022, the City of Cupertino began producing treasurer’s reports compliant with Section 41004. Recommendation 8 The City of Cupertino should maintain compliance with California Government Code section 41004. Continued compliance is recommended.
• CL14 Page 15
  Finding 9 The Civil Grand Jury commends the City of Saratoga for producing monthly treasurer’s reports that include disbursements, receipts, and fund balances. The City of Saratoga is in full compliance with California Government Code section 41004. Recommendation 9 No recommendation. Finding 10 The Civil Grand Jury commends the elected city treasurer for producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances. The City of Morgan Hill is in full compliance with California Government Code section 41004. Recommendation 10 No recommendation.

No Responses Found 9

Government entities assigned to respond to this report. No response documents have been linked in our database.