Fiscal Year 2019 TransNet Fiscal & Compliance (AUP) Audit Schedule A Preparation

1. Fiscal Year 2019TransNet Fiscal & Compliance (AUP) Audit Schedule A Preparation

2. Set Up the FY 2018 Schedule Change dates for the current audit year

3. Set Up the FY 2018 Schedule Ensure beginning balance ties to prior year ending balance

4. Set Up the FY 2018 Schedule Add new projects in order of MPO ID

5. Set Up the FY 2018 Schedule Check formatting

6. Have Pooled Interest? In FY 15, pooled Interest Income was presented after the ‘Subtotal TransNet Extension’ line Changing presentation/location for FY 2016 and onwards

7. Have Pooled Interest? New Requirement for FY 2016 and onwards: Split Pooled LSI Interest = 70% to Congestion Relief & 30% to Maintenance $11,225 x 70% $7,857.50 $11,225 x 30% $3,367.50

8. Why Change Pooled Interest? • TransNet Extension Ordinance requires interest to be earned on funds held at local jurisdiction • SANDAG Board Policy No. 031, Rule #6 allows the pooling of interest • Cities and County AUP 8 reports LSI balances for Congestion Relief & Maintenance • Interest earned on project funds should be reported in the procedures

9. Have Grants, an Interest line, GASB 31, and/or Non-TransNet? If your Schedule has old TransNet then you will have a combined Total line

10. Have Grants, an Interest line, GASB 31, and/or Non-TransNet? GASB 31 always goes after the final Total TransNet

11. Have Grants, an Interest line, GASB 31, and/or Non-TransNet? Non-TransNet is always last

12. Have Grants, an Interest line, GASB 31, and/or Non-TransNet? Remember your ‘grand’ total to incorporate everything! Pay attention to formatting!

13. Gather Data • Locate Programmed Projects in the RTIP • Run systems reports to determine: • Revenue received • Interest earned • Expenditures • Determine if prior year data requires adjustments

14. Populate your Schedule Now that you’ve set up your Schedule and have gathered all data, begin populating the report • Remember to check the RTIP and/or Council/Board dockets for authorization when moving funds or when the 6/30/18 ending balance is negative

15. Adjustments Moving funds between same MPO ID: • No additional approval required • Considered same project; even if different CIPs • No footnote needed if within same section on Schedule • If moving from old TransNet I to TransNet Extension on the Schedule (same MPO ID): • Can only move funds/expenditures forward (to Extension) • Include footnote to clarify movement between sections on Schedule

16. Adjustments If moving from old TransNet I to TransNet Extension on the Schedule: Can only move activity forward This Adjustment represents moving unspent TI revenue to TII

17. Adjustments If moving from old TransNet I to TransNet Extension on the Schedule: Can only move activity forward This Adjustment represents moving excess expenditures from TI to TII

18. Adjustments Why can’t I move TII (Extension) funds to cover expenditures in the old TI section? • Two different Ordinances; TI should have been phased out or in the process of phasing out • Once all TI funds are spent, the only option is funding from the Extension • TI activity is not included in Schedule B ‘Cumulative’ Schedule • ITOC has responsibility to review all TII activity, which must be included in Schedule B

19. Adjustments Moving funds between different MPO IDs: • Authorization is required • Either RTIP or Council/Board approval • Always check with SANDAG for RTIP Amendments • Footnote is required • Include highest level of authorization • If Adjustment includes multiple movements, provide detailed footnote

20. Adjustments Moving funds between different MPO IDs & can’t find authorization: • Determine if RTIP Amendment is needed • Schedule Council/Board date for next RTIP open cycle • Determine if Council/Board approval (only) is needed • Schedule Council/Board docket Important to take action early in audit process to meet timeline

21. Adjustments I’m going to use another funding source for my overage (negative ending balance) • May need to move expenditure from the TransNet section to a Non-TransNet section • No authorization is needed • If FY is still open, okay to move expenditure out of Fund & submit updated G/L to auditors

22. Do I need an RTIP Amendment? For more information regarding RTIP Amendment, please see: “RTIP Amendment PPT FY19”

23. Footnotes • Footnotes are required when: • Negative ending balance for MPO ID • Adjustments between different MPO IDs • Adjustments between same MPO ID only if between TI and TII

24. Footnotes • Should be grammatically correct • Include enough detail so reader will understand message • If moving funds from or to multiple projects, list detail (reader should understand what is happening) • Include highest level of authorization (RTIP is highest level) • Provide auditors with documentation substantiating amounts (i.e. Council Reso; RTIP Amend, prior year adjustment)

25. Footnotes • Examples of acceptable Footnotes: • The City obtained Council approval via R-3002018. • Transfer between same MPO ID. • RTIP Amendment 18-01 scheduled in April 2019 was submitted.

26. Footnotes • Examples of acceptable Footnotes: • The City obtained Council approval via R-3002018. • Transfer between same MPO ID. • RTIP Amendment 18-01 scheduled in April 2019 was submitted. Provided highest level of authorization Required when moving from TI to TII Okay for Draft AUP. Should be updated for Final AUP once approved

27. Footnotes • Examples of unacceptable Footnotes: • The City Council approved transfer of funds to multiple projects. • City will request drawdown. • City will schedule RTIP amendment before June.

28. Footnotes • Examples of incomplete Footnotes: • The City Council approved transfer of funds to multiple projects. • City will request drawdown. • City will schedule RTIP amendment before June. Need listing of where funds were transferred from & to (project number): transferred $5,125 from JQ025 to JQ001 ($125) and to JQ050 ($5,000) This may be okay, but ensure enough funds are Programmed to draw in 18/19! For the Draft AUP, at least include the RTIP Amendment number & month of approval. For the Final AUP, provide auditors with documentation that RTIP Amendment was approved

29. Contacts: Sam Diche Samuel.Diche@sandag.org 619.699.6909 Monthly payments, Funding, Audit Ariana zur Nieden azu@sandag.org 619.699.6961 RTCIP, ITOC Jack Christensen Jack.Christensen@sandag.org 619.595.1442 Senior Mini Grants Jennifer Farr jfarr@davisfarr.com TransNet AUP (audit) Partner Sue Alpert Sue.Alpert@sandag.org 619.595.5318 RTIP, ProjectTrak Sarah Pierce Sarah.Pierce@sandag.org 619.699.7312 EMP Land Mgmt Grants Tracy Ferchaw Tracy.Ferchaw@sandag.org 619.699.1977 Smart Growth (SGIP) Grants Bike (ATGP) Grants

30. Thank you