Response Form Grand Jury Report Title: Measure B Re-examined Report Dated: June 1,2022 Response Form Submitted By:*

A required function of the B Committee is to review annual audits and to ensure transparent use of funds. Annual independent audits of taxpayers' money were not performed resulting in no definitive answer to what funds are available or have been expended. The Auditor-Controller/Treasurer Tax-Collector disagrees partially. The Auditor-Controller agrees that a required function of the Measure B Committee is to review the annual audits and that there were no audits conducted for fiscal years 2017-18 and 2018-19. Audits have been performed for fiscal years 2019-20 and 2020-21. It should be noted that an audit will only result in an opinion of whether the County complied with the expenditure restrictions in Chapter 5.180 of the Mendocino County Code entitled the "Mental Health Treatment Act" and will not result in a financial report or in-depth analysis. Financial information is available from the County staff supporting the Measure B Committee and handling the day-to-day activities related to the programs and projects funded by the Measure. The first partial year of activity for Measure B (Fiscal year 2017-18) had very few transactions. There were five entries for revenue which totaled $1,606,671.22 and four entries for expenses which totaled $199,047.91 (costs for the Kemper Report and the election). For the fiscal second year 2018-19 there were revenue entries for a total of $8,624,842.64 and expenditures of $31,389.14. The Auditor-Controller did not arrange for the contract for the initial independent audits that were conducted and does not know the basis used for determining the scope and years to be audited.

The first 15 months of operations are excluded from the commissioned audits. Not starting from day one does not give a complete financial picture. The Auditor-Controller/Treasurer Tax-Collector disagrees partially. The first partial fiscal year 2017-18 and fiscal year 2018-19 were not included in the initial audits conducted. However, financial information is available from the County staff supporting the Measure B Committee and handling the day-to-day activities related to the programs and projects funded by the Measure. It should be noted that an audit will only result in an opinion of whether the County complied with the expenditure restrictions in Chapter 5.180 of the Mendocino County Code entitled the “Mental Health Treatment Act” and will not result in a financial report or in-depth analysis.