six two infrastructure financing districts rather than piecemeal. there were other several bills that he vetoed at the same time so and the infrastructure finance districts will undergo a robust revision. we are recommending a watch to you. on page 3 there are three measures, two virtually identical, sca 4 and sca 9. -- it transportation measures in la and alameda counties. sca 4 and sca 8 would propose to the people of california and measure to approve the voters wrestle for voter

transportation special taxes from two thirds to 55 percent. sca 9 is a little bit of a variance on that. it too would seek to reduce the voters threshold from two thirds to 55 percent. for economic development projects. those are not well defined in the bill yet. there is a lot of work to be done on this measure so we recommended watch. however for the two local sales tax measure bills we recommended support position. i can take questions here. i have a quick budget overview. >> what you get that update in that we will take questions. >> last week the governor release figures for the 2013-14 budget. legislative analyst said it's a reasonable budget.

for the first time in recent memory you have a balanced budget in effect with a good chance of remaining in balance. the risk are mostly what might happen from the federal government and cost impact that might flow to the state in a couple of minor risks. they stamped it "prudent. " first time i've seen that in 15 years. in the world transportation one of the key things is that the governor said we recognize the transportation-- has directed the transportation secretary to convene a series of stakeholder meetings and try to drive some suitable transportation funding solution as well as address what is the appropriate level for some of the revenues that go through

transportation to enhance the availability of those funds. getting money to the local level. i might mention in the high-speed rail budget there seems to be most of the issue for rail funding was dealt with in last year's budget. there was no new appropriation mentioned in this year's budget. they are counting on the initial construction segment to move forward and the highlight in the governors budget, they are working in the north and south regional entities to develop a suitable set of book end projects to continue funding. i will drama budget overview review to a close. >> are there any questions or comments colleagues? seeing none we will open it up to public comment. is there any public comment? please come forward.

>> as you can see -- there were two sections. one federal in one state. on the federal level, whether we like it or not, we really do not have the monies for some of our huge projects. one of them being the central subway. now, it's okay for people to come here and state the process about the funding. but what is important for the supervisors to know is what is going on at the metropolitan transportation meetings where some companies are not getting paid. and also to listen to the comments of the businesses who are impacted. it all ties in.

while these deliberations are going on here, someone stating to you that this will happen, that will happen, this board has some responsibility to give feedback to the businesses in nob beach. things are not too rosy. this board has the responsible the not to kill those businesses. suffice it to be to speak on the federal issues with that statement. for the state it is the same. we have to figure out a way how we can have an interaction with our colleges and universities and other small groups. send them to sacramento. we don't do this. some of our advocates all these years have been going to sacramento. the processes very convoluted.

it's good that we have jerry brown there. he has balance this budget. the board of supervisors, the city, the legislative branch, in the executive branch in 1996, willi brown took the city administrator's position and join it to the executive branch. let's talk about the legislative branch. it is incumbent for you to send young people to sacramento so they know the process, the convoluted process much as we have a convoluted process here at city hall. thank you very much. >> is there any additional public comments? seeing none, commissioner -- >> i have a question to mr. watts. you mentioned ab 8 and sb 11 extend the carl moyer program.

would you recommending that we take a support position? >> the two bills 8 an d sb 11 they are identical measures. >> i move that amendment to support ab8 and sb 11. >> is there second to that motion? to forward this to the board authority? >> second. >> is there any discussion on that? we move this forward as proposed with a positive recommendation? that will be the order. (gavel) >> item number five. clarification. it is actually a 20 million piece of the high-speed rail; >> thank you. item number five.

>> acceptance of the audit report for the fiscal year, june 30, 2012. >> good morning, cynthia fong deputy directorr for finance administration. you have a report for the fiscal year ending june - 2012. since there are more than 500,000 dollars of federal expenditures spent during the fiscal year. single audit included audit over the yerbabuena ramps, buildings and structures dynamic traffic assignment model development project; integrated public private partnership travel demand program; and several competition programs including the congestion management, bayshore intermodal station

access study, market octavia station action plan, market street station area plan and eastern neighborhood transportation and limitation plan study both .auditory performed by -- o'conel, also the auditors for the city and county of san francisco. today we have cindy kahn to walk through the results of the audit. each of you should have a copy of the powerpoint presentation in front of you. >> thank you. >> good morning. thank you for inviting me to discuss the results of the authority's 2012 financial and federal compliance audits. i will go through the audit responsibilities in the scope of the work and discuss key elements of the two deliverable reports. the first report of the financial statement and the single audit report.

this report is going to be disseminated and uploaded to the federal data clearinghouse upon approval and acceptance of the report. in the second report is a letter to the finance committee. the purpose of the financial statement audit is to obtain reasonable assurance that the amounts and related disclosures are fairly stated. the applicable framework we are following clearly accepted accounting principles or gap; generally accepted auditing principles in government audit standards promulgated by the us government accountability office. as discussed on page 26 of your packet, our audit report has found that particular item, and discusses the scope of the

audit and includes the authority's governmental activity, full accrual consolidated financial statement and the four major governmental funds including the sales program, transportation management, and then relatively new major fund, vehicle restriction fee for transportation improvement program and the remaining fun information which accounts for the authority's owner and control of insurance program deposits. the responsibility of the statements rest with the authority in our this possibility is to express an opinion based on these statements based on our audits. we performed the audits within the framework discussed earlier and render an unqualified opinion. which means the financial status presenters are free of material errors. these financial statements represent fair accordance with gap.

in addition to our report on the financial statement we also prepared a report on internal control of financial reporting and noncompliance. this report is found on page 66 of your packet and is required. in addition to the financial statement audit, the authority is required to have a federal single audit because it expended more than 500,000 in fiscal year 2012. the authority spent 5.1 million of federal awards. page 73 of your packet shows a summary of the results of these audits. the authority had a positive result in the federal awards program in fiscal year 2012, and qualified report on

federal compliance. in addition to the reports we issued a separate report to the finance committee. which includes required indications. the required communications include the following 8 topics. the qualitative aspect of accounting practices; and whether or not there were any new accounting standards that were implemented. there was one new accounting standard that was implemented it is primarily due to disclosures to your opep plan. and whether or not there were difficulties encountered in performing the audit; whether or not there were correct or incorrect statement; whether there were disagreements with management; management

representation; whether management consulted with other independent accountants and other financing issues. in summary we have the cooperation of management and we did not have difficulty confirming this past year's audit. current year comments include two four we saw an opportunity for strengthening internal control over financial reporting. these comments are found on page 79 of your package; item 2012-01 discusses the accounting and financial reporting for operating leases. items 2012-2 discusses ensuring that the integrity of the data are vital to the actuary is good so that the evaluation results are reliable. in the last comment

is to inform the organization to start preparing for the implementation of the significant new pension accounting standards required to be implemented in a little over two years. with that this concludes my overview of the authority's 2012 financial statement and federal compliance audit. i'm available for comments and questions. >> i will ask staff to respond to the findings. these appear to be not significant findings. is that accurate? >> that's true. >> was there anything that resulted in a finding the cost to concern about the internal controls of the authority? >> no. those are the key ones. this last year the authority had two other significant accounting staff out on extended leave which cost a little bit more of a compressed

timeframe to do a lot of the work. coupled with that they also had a move right in the middle of their year-end close. the combination of those things took more stress on the resources this past year than in prior years. >> are there any questions for the auditor before we respond? >> the current policy for operating leases-- we made changes to be in line with the new operating system. the second comment regarding the data integrity of the opep data, taking a look at why this occurred, this appears to be an isolated incident. when we discover the issue we pretty much put our accounting hats on, took a look at the materiality of the finding, amounted to

3000 dollars; it was not reasonable to incur additional costs by the consultant. the last comment regarding changes in accounting standards and disclosures for pensions, we definitely will be speaking to calpurse over the next two years to determine what impact it has on the authority statement. i also would like to mention that you do the year-end holidays, the -- did not meet at its regular the summertime. and that this item will be brought before the met this january 12 meeting. >> any comment? >> i wanted to commend cynthia

fong at her staff or another clean audit, multiple years in a row. particular the phenomenal since as said, she and another staff in the world family leave. >> thank you cynthia. >> are there any questions or comments? seeing none, any public comments on item 5? seeing none do we have a motion to move this to the full authority to accept the audit? >> so moved. >> colleagues can we take that without objection? >> that will be the order. >> item 6. any introductions? any public comments? seeing none public comments are closed. item 7.

>> public comment. >> any public comment related to any matter before the jurisdiction of this committee? seeing none public comment disclosed. >> meeting adjourned.

>> this lodge is home to some of the best fly casting pools in

the world. these shallow concrete pools don't have fish. this is just a place where people come to practice their fly casting technique. ith was built in the 1930's and ever since, people have been coming here to get back to nature. every year, the world championship of fly casting is held in san francisco and visitors from all over the globe travel to be here. >> we are here with phil, general manage of san francisco rec and parks department at the anglers lodge. what do you think about this? >> it is spectacular, travis from oregon, taught me a snake roll and a space cast. >> there are people from all over the world come to san francisco and say this is the place to be. >> yeah. it's amazing, we have teams from

all over the world here today and they are thrilled. >> i flew from ireland to be here. and been practicing since for the competition. all the best casters in the world come here. my fellow countryman came in first place and james is on the current team and he is the head man. >> it's unique. will not see anything like it where you go to compete in the world. competitions in ireland, scotland, norway, japan, russia each year, the facilities here in the park are second to none. there is no complex in the world that can touch it. >> i'm here with bob, and he has kindly agreed to tell me everything i need to know about casting. i'm going to suit up and next, we're in the water. >> what any gentleman should do.

golden gate angling has free lessons the second saturday of every month. we have equipment show up on the 9:30 on the second saturday of every month and we'll teach them to fly cast. >> ok. we are in the water. >> let me acquaint you with the fly rod. >> nice to meet you. >> this is the lower grip and the upper grip. this is a reel and a fly line. we are going to use the flex of this rod to fling away. exactly as you moved your hands. >> that's it? >> that's it. >> i'm a natural. >> push both arms forward and snap the lower hand into your tummy. push forward. >> i did gave it a try and had great time but i might need some more practice. i met someone else with real fly

casting skills. her name is donna and she is an international fly casting champion. >> i have competed in the casting ponds in golden gate park in san francisco. i have been to japan and norway for fly casting competition. i spend my weekends here at the club and at the casting pond. it's a great place to learn and have fun. on a season day like this, it was the perfect spot to be. i find fly casting very relaxing and also at the same time very challenging sport. takes me out into the nature. almost like drawing art in the air. and then i can make these beautiful loops out there. >> even though people from across the globe come here to compete, it's still a place

where locals in the know relax and enjoy some rely unique scenery. until next time, get out and play! >> hey, guys, known a with the weekly. much to do and much to see. here the top activities at the top of my list. this tuesday, january 15th, the sf main library will feature free film night and reception and celebrate 2013.

join itbs for viewing soul food junkieses, history and cultural significance of soul food, black cultural identity. across the street from the library at grove street. after movie might, learn about the 21st sea lion anniversary. this thursday through next monday, pier 39 will feature sea lion experts and celebration of 23rd anniversary of their arrival. become sea lion savvy and learn about marine life and state conservation on sea lay i don't know encounter. need to shed holiday pounds or want to bike ride? great. this saturday you're invited to bicycle with the san francisco midnight mystery ride as they set out to a new mystery location in sf. where to meet, post their locationses on the website and facebook page to answer. only the ride leader knows where they're going so bring your sense of adventure. rides are generally around five miles and all levels of

cyclists are welcome. and that's the weekly buzz. for more information about any of these events visit us at sf grouch tv.orout to bring that someone special. welcome to corona height located in the height of the cast strow district the eye kong bay bridge and on towards the east bay. cone oi shakes park is one the city's best kept secrets on lake twin peaks it's hardly crowded on a day any day you will run into a new lolls and hop on a bus to get there without any parking worries and lolls bring their four-legged fronds run freely with other dogs and a small touch of grass for the small dogs and wild flowers carpet the grasslands keep on the look out nor hawks and ot