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2015-01 <br />CITY OF SAN LEANDRO <br />MEMORANDUM ON INTERNAL CONTROL <br />SCHEDULE OF OTHER MATTERS <br />Investment Report Compliance with California Government Code 53646 <br />Criteria: Per California Government Code 53646, "quarterly report shall include a statement <br />denoting the ability of the local agency to meet its pool's expenditure requirements for the next <br />six months, or provide an explanation as to why sufficient money shall, or may, not be available." <br />In addition, the City's Investment Policy Statement also requires this language to be included on <br />the City's Investment Report. <br />Condition: During our interim phase of audit, we reviewed the March 31, 2015 Investment <br />Report and noted that the report did not include the required language that the City will meet the <br />cash obligations for the next six months, or provide an explanation as to why sufficient money <br />shall, or may, not be available. <br />Effect: The March 31, 2015 Investment Report· is not in compliance with the California <br />Government Code 53646 or the City's Investment Policy Statement. <br />Cause: City staff was unaware that the requirement was excluded from the Report. <br />Recommendation: The City should ensure that the Investment Report adheres to all <br />requirements of the California Government Code 53646 and the City's Investment Policy <br />Statement. <br />Management's Response: All quarterly investment reports issued since July 2015 include the <br />statement "The City of San Leandro is able to meet its pool's expenditure requirement for the <br />next six months." This statement is included in each qnarterly investment report after a cash flow <br />analysis has been performed to confirm that the City is indeed able to meet its pool's expenditure <br />requirement for the next six months. <br />3