OFFICE OF THE CITY AUDITOR
Roland E. Smith, CPA
City Auditor

December 16, 2003

TO: President De La Fuente and Members of the City Council

SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT AND APPROPRIATE A SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION (SAMHSA) GRANT IN THE AMOUNT OF $5,999,538 OVER A SIX YEAR PERIOD, FISCAL YEARS 2003-2009, TO PROVIDE CHILD MENTAL HEALTH SERVICES AND TO EXECUTE A CONTRACT WITH THE NATIVE AMERICAN HEALTH CENTER TO PROVIDE SAID SERVICES IN AN AMOUNT OF $932,885 FOR FY 2003-04 WITH FIVE ONE-YEAR OPTIONS TO RENEW

PURPOSE AND SCOPE

In accordance with the Measure H Charter Amendment, which was passed by the voters at the General election of November 5, 1996, we have made an impartial financial analysis of the accompanying Council Agenda Report, and Proposed Resolution. In making our analysis we also obtained and reviewed background information regarding the project and the North American Health Center.

Since the Measure H Charter Amendment specifies that our impartial financial analysis is for informational purposes only, we did not apply Generally Accepted Government Auditing Standards as issued by the Comptroller General of the United States. Moreover, the scope of our analysis was impaired by Administrative Instruction Number 137, effective May 21, 1997, which provides only one (1) week for us to plan, perform and report on our analysis.

SUMMARY

This resolution authorizes a contract with Native American Health Center to provide mental health services to seriously emotionally disturbed Native American children and their families, as well as other children, in Oakland and throughout Alameda County. The City will serve as the fiscal agent, receiving $67,038 each year to submit quarterly financial reports to the Federal Government and monitor the project's overall implementation. Monitoring includes: attending advisory group meetings; conducting site visits; reviewing program files and reports; and attending events related to the project.

FISCAL IMPACT

Under this grant there is no impact on the City's General Fund. All funds -- $999,923 annually or $5,999,538 over the six-year period - will be appropriated to Fund 2128, Organization 78111.

CONCLUSION

The Proposed Resolution appears to be reasonable.

Prepared by:

Jack McGinity, CPA

Issued by:

Roland E. Smith, CPA, CFS
City Auditor


Report completion date:
November 20, 2003