Discussion and Potential Action Item:
Recommend approval to authorize the District CEO to execute an agreement with Davis Farr, LLP to conduct the annual financial audit of the Beach Cities Health District for fiscal years ending June 30, 2025, through 2030 for a total of $140,679 for the five years combined and Single Audits on an as needed basis for a total of $27,832 for the five years combined total of not to exceed $168,511.
1) The auditors need to investigate how BCHD failed to conduct a 30 year liability analysis of allcove costs for the 91% non-resident service area PRIOR to signing the 30-year financial liability contract for the building operation and allcove services. District taxpayers were exposed to a $175M liability over 30 years without any vote or input. (see BCHD CPRA response of Mon, Nov 13, 2023, 6:46 PM). At a minimum, this required voter approval for a 30-year obligation that is three times the asset value of the District. It is more likely that it is a malfeasance and failure of fiduciary responsibility by the Executives and Board of BCHD.
1) The auditors need to investigate how BCHD failed to conduct a 30 year liability analysis of allcove costs for the 91% non-resident service area PRIOR to signing the 30-year financial liability contract for the building operation and allcove services. District taxpayers were exposed to a $175M liability over 30 years without any vote or input. (see BCHD CPRA response of Mon, Nov 13, 2023, 6:46 PM). At a minimum, this required voter approval for a 30-year obligation that is three times the asset value of the District. It is more likely that it is a malfeasance and failure of fiduciary responsibility by the Executives and Board of BCHD.