Los Angeles — 2016-03-07 Treasurer and Tax Collector – Redemption Property Tax Collections Financial and Compliance Audits for Fiscal Year 2014-15

Source: https://ttc.lacounty.gov/wp-content/uploads/2018/10/240781_2016-03-07TreasurerandTaxCollector-RedemptionPropertyTaxCollectionsFinancialandComplianceAuditsforFiscalYear2014-15.pdf

COUNTY OF LOS ANGELES DEPARTMENT OF AUDITOR.CONTROLLER KENNETH HAHN HALL OF ADMINISTRATION 5OO WEST TEMPLE STREET, ROOM 525 LOS ANGELES, CALIFORNIA 9OO1 2-3873 PHONE: (213)974-8301 FAX: (213) 626-5427 JOHN NAIMO AUDITOR-CONTROLLER

March 7,2016

TO: Supervisor Hilda L. Solis, Chair S upervisor Mark Rid ley-Thomas Supervisor Sheila Kuehl Supervisor Don Knabe Superviso r Michael D. Antonovich 4,";-r; FROM John Naimo Auditor-Co er

REDEMPTION PROPERW SUBJECT: TREASURER AND TAX COLLECTOR - TAX COLLECTIONS FINANCIAL AND COMPLIANCE AUDITS FOR
FISCAL YEAR 2014.15

The Los Angeles County Treasurer and Tax Collector (TTC) bills and collects taxes on real property, such as land and structures. lf the taxes are not paid by the Fiscal Year (FY) end (June 30tn), the property goes into tax-defaulted status, and TTC assesses additional fees and penalties pursuant to the California Revenue and Taxation (R&T) Code. Property owners may redeem their property by paying the full amount due, or by entering into a payment agreement with TTC. lf non-residential commercial or vacant property remains in tax-defaulted status for three years or more (five years or more for residential and agricultural property), TTC may auction the property to recover the taxes, penalties, and costs.

R&T Code requires an audit of TTC's accounting for collections of defaulted property taxes (redemption collections). We contracted with an independent Certified Public Accounting firm, BCA Watson Rice LLP (BCA), to audit TTC's redemptíon collections for the FY ended June 30, 2015. BCA conducted the audit under the Auditor-Controller's Master Agreement. BCA's attached report indicates that TTC's Schedule of Redemption Property Tax Collections presents fairly, in all material respects, the redemption property tax collections for the FY ended June 30,2015, and TTC complied, in all material respects, with R&T Code requirements.

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Board of Supervisors March 7,2016 Page 2

As part of the auriit, BCA reviewed TTC's intei'nai cont¡ois ove¡- íinanciai i'epoi'ting and did not identify any defíciencies they consider to be material weaknesses. BCA tested TTC's compliance with certain provisions of laws, regulations, and other matters. BCA noted no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

lf you have any questions, please contact me, or your staff may contact Robert Smythe at(213) 253-0100.

JN:AB:PH:RS:YK

Attachment c: SachiA. Hamai, Chief Executive Officer Joseph Kelly, Treasurer and Tax Collector Public Information Office Audit Committee