Status of Recommendations

CALIFORNIA STATE AUDITOR B u r e a u o f S t a t e A u d i t s Recommendations Not Fully Implemented After One Year The Omnibus Audit Accountability Act of 2006 January 2013 Report 2012‑041 The first five copies of each California State Auditor report are free. Additional copies are $3 each, payable by check or money order. You can obtain reports by contacting the Bureau of State Audits at the following address: California State Auditor Bureau of State Audits 555 Capitol Mall, Suite 300 Sacramento, California 95814 916.445.0255 or TTY 916.445.0033 OR This report is also available on the World Wide Web http://www.auditor.ca.gov The California State Auditor is pleased to announce the availability of an online subscription service. For information on how to subscribe, please contact the Information Technology Unit at 916.445.0255, ext. 456, or visit our Web site at www.auditor.ca.gov. Alternate format reports available upon request. Permission is granted to reproduce reports. For questions regarding the contents of this report, please contact Margarita Fernández, Chief of Public Affairs, at 916.445.0255. CALIFORNIA STATE AUDITOR Elaine M. Howle State Auditor Doug Cordiner B u r e a u o f S t a t e A u d i t s Chief Deputy 555 Capitol Mall, Suite 300 Sacramento, CA 95814 916.445.0255 916.327.0019 fax www.bsa.ca.gov January 15, 2013 2012-041 Dear Governor and Legislative Leaders: Consistent with the Omnibus Audit Accountability Act of 2006 (California Government Code, sections 8548.7 and 8548.9), the California State Auditor (state auditor) presents this special report to the Joint Legislative Audit Committee, Joint Legislative Budget Committee, and the Department of Finance. This report notes that from November 2005 through October 2011, the state auditor issued 106 reports on audits of state agencies. In those reports, the state auditor made 1,249 recommendations and state agencies had implemented 1,036, or 83 percent as of September 2012. The remaining 213 recommendations made to 36 state agencies had been outstanding for at least a year and not fully implemented. However, based on recent responses obtained from those state agencies, the state auditor determined that 44 have been fully implemented and only 169 remain outstanding. In addition to identifying which recommendations have and have not been fully implemented, the state auditor’s Web site contains written responses from each state agency explaining the status of each recommendation. For recommendations that have not been fully implemented, the Web site also provides agency responses regarding when or if these recommendations will be fully implemented. Our audit efforts bring the greatest returns when agencies act upon our findings and recommendations. For example, in April 2011 the state auditor reported that the Commission on Teacher Credentialing (Commission) would better safeguard students if the Commission improved its ability to process alleged misconduct. As of the summer of 2009, the Division of Professional Practices (division) had accumulated a backlog of 12,600 unprocessed reports of arrest and prosecution, resulting from an insufficient number of trained staff, ineffective and inefficient processes, and a lack of an automated system for tracking the division’s workload. These conditions appeared to have resulted in delayed processing of alleged misconduct and potentially allowed educators of questionable character to retain a credential. The state auditor made numerous recommendations to the Commission, including that it develop and formalize comprehensive procedures for reviews of reported misconduct and that it provide training and oversight to ensure that case information in its database is complete, accurate, and consistent. The state auditor also provided specific recommendations for the Commission to revisit its processes for overseeing investigations to adequately address the weaknesses in its processing of reports of misconduct and reduce the time elapsed to perform critical steps in the review process. The Commission fully implemented these recommendations by September 2012, which should help ensure that the Commission better protects students from individuals unfit for the duties authorized by the credential. If you would like more information or assistance regarding any of the recommendations or background provided in this report, please contact Margarita Fernández, Chief of Public Affairs, at (916) 445-0255. Respectfully submitted, ELAINE M. HOWLE, CPA State Auditor California State Auditor Report 2012-041 vii January 2013 Contents Introduction 1 Table 1 Recommendations More Than Five Years Old That Are Still Not Fully Implemented 3 Table 2 Recommendations More Than One Year Old That Are Still Not Fully Implemented 5 Table 3 Recommendations More Than One Year Old That Were Fully Implemented Since Last Year’s Report or the Auditee’s One‑Year Response 23 California State Auditor Report 2012-041 1 January 2013 INTRODUCTION As required by the Omnibus Audit Accountability Act of 2006 (Accountability Act), the California State Auditor (state auditor) presents this report on the status of recommendations that are more than one year old and have not been fully implemented by state agencies. RESULTS IN BRIEF From November 2005 through October 2011, the state auditor issued 106 reports for audits requested through the Joint Legislative Audit Committee, legislation, or as a result of an investigation.1 The state auditor made 1,249 recommendations to the audited state agencies in those reports.2 While the state agencies implemented many of the recommendations, the state auditor identified 213 recommendations made to 36 state agencies that had been outstanding at least one year and not fully implemented. Of the 213 recommendations, 116 appeared in last year’s report. Based on recent responses obtained from state agencies, the state auditor determined that 169 of the 213 recommendations remain not fully implemented. Our audit efforts bring the greatest returns when agencies act upon our findings and recommendations. For example, in April 2011 the state auditor reported that the Commission on Teacher Credentialing (Commission) would better safeguard students if the Commission improved its ability to process alleged misconduct. As of the summer of 2009, the Division of Professional Practices (division) had accumulated a backlog of 12,600 unprocessed reports of arrest and prosecution, resulting from an insufficient number of trained staff, ineffective and inefficient processes, and a lack of an automated system for tracking the division’s workload. These conditions appeared to have resulted in delayed processing of alleged misconduct and potentially allowed educators of questionable character to retain a credential. The state auditor made numerous recommendations to the Commission, including that it develop and formalize comprehensive procedures for reviews of reported misconduct and that it provide training and oversight to ensure that case information in its database is complete, accurate, and consistent. The state auditor also provided specific recommendations for the Commission to revisit its processes for overseeing investigations to adequately address the weaknesses in its processing of reports of misconduct and reduce the time elapsed to perform critical steps in the review process. The Commission fully implemented these recommendations by September 2012, which should help ensure that the Commission better protects students from individuals unfit for the duties authorized by the credential. 1 Excludes the statewide single audit (financial and federal compliance audits), which is mandated as a condition of California receiving federal funding. The recommendations made in that audit are followed up and reported each year in the state auditor’s annual report on California’s Internal Control and State and Federal Compliance. This also excludes American Recovery and Reinvestment Act (ARRA) interim reports related to Federal Compliance, as these are followed up as part of the single audit. We do not include audits where the subject is a local entity, such as a school district or county, nor do we include follow-up audits where there are no new recommendations. Finally, we exclude the following statutorily required non‑audit reviews: Fi$Cal Status Letter, Treasurer’s Cash Count, Statement of Securities Accountability, Data Reliability Report, and California Medicaid Management Information System Status Letter. As of January 1, 2010, the state auditor began reporting as required on the status of recommendations made in investigative reports. The 106 reports include six investigative reports issued since January 1, 2009. 2 Excludes recommendations for legislative changes. We report such recommendations in a separate report to the Legislature. 2 California State Auditor Report 2012-041 January 2013 State agencies’ failure to fully implement the state auditor’s recommendations can inhibit needed improvements. For example, the state auditor reported on the child welfare services (CWS) system in October 2011 and found that the Department of Social Services (Social Services) and county CWS agencies could do more to protect foster children. To ensure that vulnerable individuals, including foster children, are safe, the state auditor recommended that Social Services complete on‑site reviews of licensed facilities at least once every five years, as required by state law. The state auditor further recommended that county CWS agencies conduct internal reviews of the services they provided prior to the death of a child in the CWS system (death reviews). While Social Services has implemented some recommendations, such as beginning to conduct comparisons of the addresses of its licensed facilities and approved homes with the addresses of registered sex offenders on a monthly basis, it still has not implemented recommendations related to on‑site licensing reviews and ensuring that death reviews are occurring. Specifically, Social Services had more past due on‑site reviews in 2012 than when we originally conducted our audit and, although it sent a memo to counties encouraging death reviews, it has refused to take any action to determine whether death reviews are actually occurring. The state auditor also made recommendations regarding the placement of foster children into foster family agencies (FFAs), which cost at least twice as much as licensed foster homes and have a 40 percent administrative fee. Specifically, the state auditor recommended that Social Services analyze and justify the increased rates paid to FFAs, and monitor the local justifications for placement of foster children into FFAs instead of licensed foster homes. However, Social Services has not implemented these recommendations and achieved any of the potential savings. Further, by failing to establish adequate justification for FFA rates—a portion of which is reimbursed by the federal government— Social Services risks financial penalties for using federal funds inappropriately. The tables beginning on page 3 summarize and provide information on recommendations issued between November 2005 and October 2011. Table 1 shows recommendations that were not fully implemented as of the agencies’ latest responses for audits issued between November 2005 and October 2006. The recommendations shown in Table 1 are from audits more than five years old and will not be reassessed by the state auditor in subsequent reports because of the length of time these recommendations have been outstanding. Table 2, beginning on page 5, summarizes recommendations that have not been fully implemented for audits issued between November 2006 and October 2011. As indicated on tables 1 and 2, the state auditor did not always agree with agency assertions that certain recommendations were fully implemented. Two columns in tables 1 and 2 provide the state auditor’s reasons for disagreement. Finally, Table 3, beginning on page 23, summarizes recommendations that have been fully implemented since last year’s report or the agencies’ one‑year responses. California State Auditor Report 2012-041 3 January 2013 1 elbaT detnemelpmI ylluF toN llitS erA tahT dlO sraeY eviF nahT eroM snoitadnemmoceR )6002 rebotcO dna 5002 rebmevoN neewteB deussI stiduA( TNEMSSESSA S’ROTIDUA ETATS SRAEY FO REBMUN TON DID EETIDUA TON DID EETIDUA TROPER LAUNNA NI LLA SSERDDA ETAITNATSBUS YLLUF TON FO EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETAMITSE DETNEMELPMI NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA SECIVRES NAMUH DNA HTLAEH tnemelpmi ton lliW 5 eht ni dnuF lareneG eht ot sgnivas yna no noitamrofni edulcnI .1 detnemelpmI ylluF teY toN saH tI *secivreS htlaeH fo tnemtrapeD .eraperp ot deriuqer si noisivid gnisnecil sti stroper evorpmI ot dednetnI noitalsigeL dellikS ni eraC fo ytilauQ eht seitilicaF gnisruN )7002 yraurbeF( 530‑6002  † 6 sti tuoba noitamrofni laitnedfinocnon lla ekam ot stroffe sti eunitnoC .1 margorP eraC dlihC stI gnidliubeR nI secivreS laicoS fo tnemtrapeD .cilbup eht ot elbaliava ylidaer erom stisiv gnirotinom ot sdeeN tnemtrapeD eht ,thgisrevO dna stroffE gnirotinoM stI evorpmI snoitcA tnemecrofnE )6002 yaM( 921‑5002 NOITATILIBAHER DNA SNOITCERROC 3102 yluJ 6 ,ecnamrofrep gnirotinom rof skramhcneb etairporppa no ediceD .1 noitcnaS etaidemretnI ehT fo tnemtrapeD ainrofilaC esoht tsniaga ecnamrofrep erusaem ot dedeen atad eht yfitnedi ecnamrofreP dekcaL smargorP noitatilibaheR dna snoitcerroC smsinahcem noitcelloc atad elbailer taht erusne dna ,skramhcneb htiW deugalP ereW dna skramhcneB eht esu ,tnaveler fi ,dna detcelloc sah ti atad eht ezylanA .ecalp ni era smelborP noitatnemelpmI s’margorp eht etaulave dna rotinom ot sesabatad gnitsixe ni atad )5002 rebmevoN( 111‑5002 .sisab gniogno na no ssenevitceffe cilbuP fo tnemtrapeD ehT .htlaeH cilbuP fo tnemtrapeD eht dna secivreS eraC htlaeH fo tnemtrapeD eht—stnemtraped owt emaceb dna dezinagroer saw secivreS htlaeH fo tnemtrapeD eht ,7002 ,1 yluJ nO * .seitilicaf gnisrun delliks gnirotinom rof elbisnopser won si htlaeH .noitadnemmocer eht detnemelpmi ylluf sah ti seveileb eetidua eht ,noitanimreted s’rotiduA etatS ainrofilaC eht ot yrartnoC † 4 California State Auditor Report 2012-041 January 2013 Blank page inserted for reproduction purposes only. California State Auditor Report 2012-041 5 January 2013 2 elbaT detnemelpmI ylluF toN llitS erA tahT dlO raeY enO nahT eroM snoitadnemmoceR )1102 rebotcO dna 6002 rebmevoN neewteB deussI stiduA( TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA NOITACUDE 21 URHT K   * 2 rebmun eht ot detaler sdlefi esabatad ppAnoC eht fo ytilibailer eht erusne oT .1 emoS :sloohcS retrahC s’ainrofilaC noitacudE fo tnemtrapeD stneduts dellorne esoht fo rebmun eht ,level loohcs eht ta dellorne stneduts fo tub ,stnedutS ot slaeM gnidivorP erA era ohw stneduts esoht fo rebmun eht dna ,slaem eerf eviecer ot elbigile era ohw eht stneverP ataD elbaileR fo kcaL a lanretni na hsilbatse dluohs noitacudE ,slaem ecirp‑decuder eviecer ot elbigile morf noitacudE fo tnemtrapeD ainrofilaC lanoitacude lacol eht fo elpmas a fo weiver citametsys a sa hcus ssecorp lortnoc stnedutS fo rebmuN eht gninimreteD .noitatnemucod gnitroppus ’sloohcs retrahc dednuf‑tcerid dna ’seicnega niatreC ni gnitapicitraP ro rof elbigilE smargorP laeM laredeF †)0102 rebotcO( 401‑0102 NOITACUDE REHGIH yraunaJ 4 gninrevog snoitaluger regnorts poleved ot ssecorp yrotaluger eht hguorht kroW .1 thgisrevO stI nehtgnertS ot sdeeN tI ytisrevinU etatS ainrofilaC 3102 osla dluohs ytisrevinu ehT .lennosrep tnemeganam rof ecnesba fo sevael diap seiciloP retcirtS hsilbatsE dna .stnarg ti ecnesba fo sevael yna gnitroppus noitatnemucod etairporppa niatniam dna tnerruC gnitasnepmoC rof seeyolpmE remroF nwonknU 4 gnirud sevitatneserper noitaicossA ytlucaF ainrofilaC htiw krow ot eunitnoC .3 †)7002 rebmevoN( 1.201‑7002 yb ycilop tnemyolpme‑laud sti nehtgnerts ot ssecorp gniniagrab evitcelloc eht ralimis esopmi dna ;ytlucaf rof stnemeriuqer lavorppa dna erusolcsid gnisopmi .seeyolpme rehto rof stnemeriuqer ton lliW 4 ,noitasnepmoc ytisrevinu golatac ot erutcurts metsys noitamrofni dezilartnec a etaerC .4 tnemelpmi ot dna seicilop ediwmetsys fo noitatnemelpmi ’sesupmac rotinom ot atad eht esu dna .secnanfi ytisrevinu no seicilop eseht fo tcapmi eht erusaem yraunaJ 4 taht seicilop gnirih poleved ot sesupmac stcerid taht ecnadiug ediwmetsys eussI .1 gniredisnoC ni tnetsisnocnI sI tI ytisrevinU etatS ainrofilaC 3102 riaf a ni detcudnoc era sehcraes taht serusne dna sehcraes gnoma ycnetsisnoc hsilbatse ,srosseforP gniriH nehW ytisreviD .rennam elbatiuqe dna ,stnediserP ,lennosreP tnemeganaM sevitucexE metsyS dna yraunaJ 4 ot sevitanretla yfitnedi ot sesupmac segaruocne taht ecnadiug ediwmetsys eussI .2 )7002 rebmeceD( 2.201‑7002 3102 dna nemow taht erusne ot dna seettimmoc hcraes fo sevitcepsrep eht nedaorb .seettimmoc hcraes no evres ot ytinutroppo lauqe evah seitironim ton lliW 4 fo snoitroporp eht erapmoc ot sesupmac stcurtsni taht ecnadiug ediwmetsys eussI .3 tnemelpmi loop robal eht ni snoitroporp eht htiw loop tnacilppa latot eht ni seitironim dna nemow .stroffe hcaertuo rieht ssessa pleh ot ton lliW 4 eht troper dna erapmoc ot sesupmac sesivda taht ecnadiug ediwmetsys eussI .4 tnemelpmi hcraes evah ot sesupmac stcerid dna ,ecrofkrow tnerruc rieht fo yticinhte dna redneg .snalp noitca evitamrffia weiver seettimmoc ton lliW 4 rof dohtem mrofinu a stnemelpmi dna sesived taht ecnadiug ediwmetsys eussI .5 tnemelpmi .atad fo ytilibaliava gnitaluclac nehw esu ot sesupmac ton lliW 4 eht dna eettimmoc seetsurt eht fo ytisrevid eht gnidrager seicilop poleveD .6 tnemelpmi esaercni ot hcihw ni rennam eht no sevitanretla redisnoc dna eettimmoc yrosivda .ytisrevid eettimmoc . . . egap txen no deunitnoc 6 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA nwonknU 4 .yrassecen naht rehgih ton era spukram taht erusne ot seicilop gnicirp ’serotskoob etaulaveeR .1 :skoobtxeT egelloC fo ytilibadroffA ytinummoC ainrofilaC yltnacfiingiS nesiR evaH secirP koobtxeT segelloC nwonknU 4 rof esu yeht stnuoma yna sisab launna na no esolcsid ylcilbup ot serotskoob tceriD .2 emoS tub ,sraeY ruoF tsaL eht ni .snoitarepo erotskoob ot etaler ton od taht sesoprup esehT lortnoC ot pleH yaM seigetartS stnedutS rof stsoC )8002 tsuguA( 611‑7002  * 2 rof stimil mumixam denfied hsilbatse ot ycilop levart sti esiver dluohs ytisrevinu ehT .1 tnemesrubmieR wolloF ot eruliaF ,ytisrevinU etatS ainrofilaC ot snoitpecxe rof wolla taht slortnoc hsilbatse ot dna gnigdol fo stsoc eht gnisrubmier dna reporpmI ni detluseR seiciloP ecffiO s’rollecnahC .secnatsmucric cfiiceps rednu ylno stimil hcus serutidnepxE lufetsaW )9002 rebmeceD( 8511‑7002I nwonknU 1 dluohs ytisrevinu eht ,sesupmac sti fo gnidnuf tneduts rep ni snoitairav eht sserdda oT .1 sniatniaM ytisrevinU eht hguohtlA ainrofilaC fo ytisrevinU tnemelpmi dna sesupmac eht ot stegdub esab eht fo noitanimaxeer sti etelpmoc dluohS tI ,sdroceR laicnaniF evisnetxE esab eht fo noitanimaxeer sti fo trap sA .ssecorp tegdub sti ot segnahc etairporppa ot noitamrofnI lanoitiddA edivorP :dluohs ti ,tegdub fo gnidnatsrednU cilbuP evorpmI hcae taht seunever tegdub noitiut dna sdnuf lareneg fo tnuoma eht yfitnedI • snoitarepO stI ,etaudarg ,etaudargrednu sa hcus( stneduts fo sepyt cfiiceps rof seviecer supmac †)1102 yluJ( 501‑0102 rep dedivorp tnuoma eht ni secnereffid yna nialpxe dna )secneics htlaeh dna .sesupmac eht gnoma tneduts hcae ta smargorp ecivres cilbup dna hcraeser cfiiceps sa hcus srotcaf redisnoC • ,stneduts secneics htlaeh ot dedivorp gnidnuf fo level rehgih eht ,supmac dna lacirotsih ,stneduts etaudarg derovaf taht sdohtem gnidnuf lacirotsih rehto yna dna ,gnidnuf htworg tnemllorne ni snoitairav erutuf detapicitna .sesupmac ssorca yltnetsisnoc deilppa srotcaf gniniamer yna sserdda ,evoba denoitnem srotcaf eht rof gnitnuocca retfA • .emit fo doirep defiiceps a revo gnidnuf supmac ni snoitairav nalp noitatnemelpmi detaler yna dna noitanimaxeer sti fo stluser eht ekaM • .cilbup lareneg eht gnidulcni ,sredlohekats ot elbaliava raey lacsiF 1 eziminim pleh ot dna ,ssecorp tegdub s’ytisrevinu eht ni ytilibatnuocca evorpmi pleh oT .2 41–3102 spets lanoitidda ekat dluohs ytisrevinu eht ,noitatuper sti ot egamad riafnu fo ksir eht eht fo ecffiO eht ,yllacfiicepS .ssecorp tegdub sti fo ycnerapsnart eht esaercni ot sti ekam dna secitcarp tnerruc tcefler ot launam tegdub sti etadpu dluohs tnediserP rof seigolodohtem rehto dna salumrof tnaveler gnidulcni ,launam tegdub desiver .etis beW sti no elbaliava ,stnuoma tegdub gninimreted rebmevoN 1 dluohs tnediserP eht fo ecffiO eht ,sdnuf ytisrevinu fo ycnerapsnart eht esaercni oT .4 3102 gninnigeb gnidulcni ,sdnuf sti gnidrager noitamrofni laicnanfi yllaunna elbaliava ekam eseht fo tcapmi eht dna ;srefsnart dna ,sesnepxe ,seunever ;secnalab gnidne dna .raey ot raey morf secnalab eht no snoitcasnart rebmeceD 1 tnediserP eht fo ecffiO eht yb dehsilbup noitamrofni laicnanfi supmac eht taht erusne oT .5 2102 esolcsid dluohs ytisrevinu eht ,sredlohekats detseretni yb detaulave retteb eb nac rehto morf seunever htiw sesirpretne yrailixua ezidisbus sesupmac hcihw ni secnatsni .gnidnuf taht fo secruos eht esolcsid dluohs dna secruos gnidnuf 3102 enuJ 1 cfiiceps erom yfitnedi dluohs ytisrevinu eht ,sesnepxe sti fo ycnerapsnart eht evorpmi oT .6 gnitnuocca secivreS suoenallecsiM eht rednu dedrocer era taht sesnepxe rof seirogetac .liated erom ni sesnepxe eseht rof tnuocca taht sedoc tcejbo tnemelpmi dluohs dna edoc ton lliW 1 seef tneduts morf detareneg seunever esu yletairporppani ton od sesupmac taht erusne oT .7 tnemelpmi sesupmac eht dna ,stneger eht ,ti taht erusne dluohs ytisrevinu eht ,adnerefer yb desopmi .adnerefer eht ni detats esoht dnoyeb seunever hcus rof sesu eht dnapxe ton od California State Auditor Report 2012-041 7 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA SECIVRES NAMUH DNA HTLAEH yraunaJ 4 eht ot ssecca niag ot seicnega ytnuoc dna htlaeH cilbuP fo tnemtrapeD eht htiw kroW .1 regnortS :waL ybaB derednerruS ylefaS fo tnemtrapeD 3102 .seibab denodnaba no scitsitats etelpmoc dna etarucca tsom retteB dna etatS eht morF ecnadiuG secivreS laicoS dluoC cilbuP eht rof noitamrofnI tcapmI stI ecnahnE )8002 lirpA( 421‑7002 3102 4 ,laveirter ,egarots atad ot detaler noitatnemucod etauqeda niatniam dna poleveD .1 etatS ehT :etsaW evitcaoidaR leveL‑woL htlaeH cilbuP fo tnemtrapeD .ecnanetniam dna srepmaH tahT noitamrofnI detimiL saH a rof deeN eht ssessA ot ytilibA stI  * 4 dna lacsfi redisnoc taht sesylana gnisu erutcurts eef tnerruc s’hcnarb eht etaulavE .2 stI evorpmI tsuM dna ytilicaF lasopsiD .srotcaf daolkrow cilbuP eht tcetorP retteB ot thgisrevO )8002 enuJ( 411‑7002  * 4 dluohs nalp ehT .atad elbailer ,tnerruc no desab hcnarb eht rof nalp gnffiats a poleveD .3 deggolkcab ssessa ,srotcaf daolkrow tuoba snoitpmussa s’hcnarb eht etaulaveer ot yrassecen secruoser namuh eht dna krow deriuqer yltnerruc lla ssessa dna ,krow .ti hsilpmocca  * 4 yb deriuqer troper eht nehw gnibircsed enilemit a etacinummoc dna hsilbatsE .4 tnemtraped ehT .elbaliava eb lliw edoC ytefaS dna htlaeH eht fo 1.000511 noitceS cfiiceps eht erutalsigeL eht fo srebmem etairporppa htiw ssucsid osla dluohs .edivorp tonnac ti taht wal etats yb deriuqer noitamrofni ton lliW 4 desab‑esod poleved dna 20‑26‑D redrO evitucexE eht htiw gniylpmoc nigeB .5 tnemelpmi 2002 siht dnicser ot ronrevog eht ksa ro yllamrof sdradnats gninoissimmoced .redro evitucexe ton lliW 4 .nalp lasopsid etsaw level‑wol detadpu na poleveD .6 tnemelpmi 5102 enuJ 4 desnecil gnitcepsni gnidulcni ,seitilibisnopser thgisrevo detadnam sti mrofreP .1 lacinilC fo kcaL ’secivreS dleiF yrotarobaL htlaeH cilbuP fo tnemtrapeD .stnialpmoc gnildnah dna ,seirotarobal gninoitcnas ,sraey owt yreve seirotarobal cilbuP eht secalP thgisrevO yrotarobaL ksiR ta 5102 enuJ 4 weiver eht gnidrager serudecorp dna seicilop gnitset‑ycneicfiorp tnemelpmi dna tpodA .2 )8002 rebmetpeS( 040‑7002 ,seirotarobal ot gnidnopser rof senilemit ,stluser gnitset‑ycneicfiorp fo noitacfiiton dna dna tnemllorne ’seirotarobal fo noitacfiirev dna ,seirotarobal etats‑fo‑tuo fo gnirotinom .serocs gnitset‑ycneicfiorp fo tpiecer 5102 enuJ 4 eht no semarf emit sa hcus stnemeriuqer gnidulcni ,snoitaluger sti etadpU .3 .ytinummoc yrotarobal 5102 enuJ 4 esnecil ot spets ekat dna seirotarobal ainrofilaC esnecil ot stroffe sti eunitnoC .4 .seriuqer wal eht sa ,ainrofilaC ni gnitanigiro snemiceps esu taht seirotarobal etats‑fo‑tuo 5102 enuJ 4 poleveD .seicilop stnialpmoc sti otni meht etaroprocni dna slortnoc yrassecen yfitnedI .5 ot serudecorp hsilbatse dna ,lortnoc hcae rof serudecorp gnidnopserroc tnemelpmi dna .stnialpmoc sdrawrof yltpmorp ti taht erusne 5102 enuJ 4 ,seitlanep yenom tnemucod dna yfitsuj ,snoitcnas esopmi ot seitinutroppo ezimixaM .6 ti taht erusne dna ,nekat si noitca evitcerroc erusne ,seitlanep fo noitcelloc eht erusne .seicnega etairporppa sefiiton . . . egap txen no deunitnoc 8 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA 5102 enuJ 4 .seitilibisnopser thgisrevo sti teem ot secruoser tneicffius sah secivreS yrotarobaL taht erusnE .7 5102 enuJ 4 .sdeen sti stroppus smetsys atad sti taht erusne ot seitrap etairporppa htiw kroW .8 sti esu ot seunitnoc secivreS yrotarobaL fi slortnoc etairporppa tnemelpmi dna poleveD .sesabatad depoleved yllanretni 5102 enuJ 4 erahs ot ssecorp a gnipoleved gnidulcni ,serudecorp dna sessecorp gnitsixe egareveL .9 .snoitcepsni laredef gnirud defiitnedi snrecnoc etats ton lliW 3 secivreS eraC htlaeH ,launaM evitartsinimdA etatS eht ni stnemeriuqer htiw ylpmoc oT .1 secivreS eraC htlaeH fo stnemtrapeD htlaeH fo tnemtrapeD tnemelpmi gnidnuf s’etatS eht htiw seeyolpme emit‑lluf tnenamrep gnidnuf morf niarfer dluohs snoitcA riehT :htlaeH cilbuP dna secivreS eraC .snoitisop pleh‑yraropmet rof msinahcem thgisrevO s’etatS eht ni swalF laeveR s’noitutitsnoC ainrofilaC eht fo dna etadnaM ecivreS liviC deilpmI ton lliW 3 esiver rehtie dluohs secivreS eraC htlaeH ,stcartnoc rehto dna TI evitca yfitnedi ylidaer oT .2 rof gnitcartnoC ’stnemtrapeD eht ni tnemelpmi .esabatad tcartnoc wen a tnemelpmi dna poleved ro esabatad tcartnoc gnitsixe sti secivreS ygolonhceT noitamrofnI )9002 rebmetpeS( 301‑9002  * 3 dna seicilop ’secivreS lareneG htiw ecnailpmoc sti etartsnomed dluohs htlaeH cilbuP .1 secivreS eraC htlaeH fo stnemtrapeD htlaeH cilbuP fo tnemtrapeD sreilppus laitnetop edivorp dluohs ti ,reffo rof stseuqer sti ni ,yllacfiicepS .serudecorp snoitcA riehT :htlaeH cilbuP dna .sreffo rieht etaulave ot esu lliw ti taht stniop dna airetirc eht htiw thgisrevO s’etatS eht ni swalF laeveR s’noitutitsnoC ainrofilaC eht fo dna etadnaM ecivreS liviC deilpmI rof gnitcartnoC ’stnemtrapeD eht ni secivreS ygolonhceT noitamrofnI )9002 rebmetpeS( 301‑9002 ton lliW 3 na gnirih fo noitseggus s’tsylanA evitalsigeL eht tnemelpmi dluohs htlaeH latneM .1 emitrevO etatS—etadpU ksiR hgiH fo tnemtrapeD tnemelpmi s’htlaeH latneM rof ledom gnffiats tnerruc eht etaulave ot tnatlusnoc tnednepedni detluseR srotcaF fo yteiraV A :stsoC ‡htlaeH latneM no gnidneped ,detsujda eb neht dluohs htlaeH latneM ta slevel gnffiats ehT .slatipsoh eht ta stsoC emitrevO tnacfiingiS ni .noitaulave s’tnatlusnoc eht fo emoctuo eht dna htlaeH latneM fo stnemtrapeD secivreS latnempoleveD )9002 rebotcO( 806‑9002 3102 yluJ 2 duarf ylrae rieht fo ssenevitceffe‑tsoc eht eguag yltnetsisnoc seitnuoc lla taht erusne oT .1 pmatS dooF dna sKROWlaC eht roF fo tnemtrapeD ,smargorp pmats doof dna sKROWlaC eht rof stroffe noitagitsevni gniogno dna seitivitca stnemssessA skcaL tI ,smargorP secivreS laicoS mrofrep ylraluger ot alumrof a poleved ot seitnuoc eht htiw krow dluohs secivreS laicoS sessiM dna ssenevitceffE‑tsoC fo .timbus yltnerruc seitnuoc eht taht noitamrofni gnisu sisylana ssenevitceffe‑tsoc a ’seitnuoC evorpmI ot seitinutroppO stroffE duarfitnA 5102 llaF 2 yeht secruoser eht morf tfieneb tsetaerg eht eviecer seitnuoc taht niatrec ekam oT .2 †)9002 rebmevoN( 101‑9002 secivreS laicoS ,sesac pmats doof dna sKROWlaC ot detaler stroffe duarfitna no dneps enimreted ,sisylana ssenevitceffe‑tsoc dednemmocer eht morf stluser eht gnisu ,dluohs .srehto naht evitceffe‑tsoc erom era duarf eraflew tabmoc ot stroffe ’seitnuoc emos yhw yraunaJ 2 gnoma secitcarp evitceffe‑tsoc tsom eht etacilper ot kees dluohs secivreS laicoS .3 3102 .seitnuoc lla 5102 llaF 2 gnireets eht fo snoitadnemmocer eht sserdda ot eunitnoc dluohs secivreS laicoS .4 .snoitadnemmocer gniniamer eht no tca yltpmorp dna eettimmoc 3102 yluJ 2 seitivitca duarf eraflew no noitamrofni eht fo ycnetsisnoc dna ycarucca eht erusne oT .5 laredef eht ot stroper yltneuqesbus secivreS laicoS taht dna troper seitnuoc taht seitnuoc dnimer dluohs secivreS laicoS ,sresu lanretni dna ,erutalsigeL eht ,tnemnrevog noitagitsevni fo ycnetsisnoc dna ycarucca eht gniweiver rof elbisnopser era yeht taht .noissimbus erofeb stroper ytivitca California State Auditor Report 2012-041 9 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA 3102 yluJ 2 sti rehtruf ot puorgkrow sti fo sgniteem raluger htiw eunitnoc dluohs secivreS laicoS .7 .stroper ytivitca noitagitsevni ’seitnuoc eht gnitelpmoc rof snoitcurtsni sti yfiralc ot stroffe 3102 yluJ 2 secivreS laicoS ,stsil hctam lla no pu gniwollof yltnetsisnoc era seitnuoc taht erusne oT .8 pu wollof ot snoitaluger etats rednu ytilibisnopser rieht fo seitnuoc dnimer dluohs roop yhw enimreted ot seitnuoc htiw krow dluohs ti ,rehtruF .stsil hctam lla no yltnegilid .snosaer esoht sserdda dna stsixe pu wollof 5102 llaF 2 ot seicnega laredef dna seitnuoc htiw krow ot stroffe sti eviver dluohs secivreS laicoS .9 .airetirc dna stamrof tsil hctam tuoba snrecnoc ’seitnuoc eht sserdda 5102 llaF 2 rof sdlohserht noitucesorp enimreted seitnuoc woh kcart dluohs secivreS laicoS .01 ’seitnuoc no sdlohserht eseht fo stceffe eht enimreted dna sesac duarf eraflew dna secitcarp tseb gninimreted no sucof a htiw ,duarf laitnetop etagitsevni ot snoisiced tnetsisnoc eht tnemelpmi ot seitnuoc htiw krow neht dluohs tI .sdohtem evitceffe‑tsoc .sdohtem evitceffe‑tsoc eseht fo esu 3102 llaF 2 eht gnidrager snoitaluger etats wollof seitnuoc taht erusne rehtie dluohs secivreS laicoS .11 .snoitaluger eht gnignahc eusrup ro sgniraeh noitacfiilauqsid evitartsinimda fo esu ton lliW 2 eraC htlaeH ,sgurd debircserp ot ssecca ylemit eviecer stneipicer laC‑ideM taht erusne oT .1 laC‑ideM enilmaertS ot sdeeN tI htlaeH fo tnemtrapeD tnemelpmi txen eht fo dne eht yb sRAT gurd ot gnidnopser fo ycilop sti hsiloba dluohs secivreS dnopseR dna snoitazirohtuA tnemtaerT secivreS eraC esnepsid ot stseuqer noitazirohtua‑roirp taht erusne daetsni dluohs dna yad ssenisub lageL nihtiW stseuqeR noitazirohtuA ot dluohs ti ,ylevitanretlA .doirep ruoh‑42 detadnam yllagel eht nihtiw dessecorp era sgurd stimiL emiT dna ,tnemeriuqer ruoh‑42 eht morf etaived ot SMC morf noitazirohtua lamrof kees )0102 yaM( 211‑9002 dluohs secivreS eraC htlaeH ,noitidda nI .wal etats ot noitacfiidom ralimis a kees dluohs erusaem ot nigeb nac ti taht os sRAT repap seviecer ti emit lautca eht gnidrocer nigeb .semit gnissecorp sti yletarucca ton lliW 2 ,sredivorp morf secivres lacidem ylemit gniviecer era stneipicer laC‑ideM taht erusne oT .2 tnemelpmi yletarapes sRAT lacidem noitazirohtua‑roirp gnikcart trats dluohs secivreS eraC htlaeH .syad gnikrow evfi fo egareva na nihtiw dessecorp era sRAT hcus taht erusne dluohs dna niatrec rof noitazirohtua roirp eriuqer yllacfiiceps snoitaluger dna wal etats hguohtlA ni snoitazirohtua roirp eriuqer ton seod yllareneg secivreS eraC htlaeH ,secivres lacidem gnitsixe etadpu ot noitalsigel kees dluohs secivreS eraC htlaeH ,yltneuqesnoC .ecitcarp .secitcarp RAT sti htiw tnetsisnoc meht redner ot snoitaluger sti dnema dna swal nwonknU 2 htlaeH cilbuP ,ylsuoitidepxe detelpmoc era secnerefnoc weiver noitatic taht erusne oT .1 laicnaniF etaruccanI detropeR tI htlaeH cilbuP fo tnemtrapeD noitatic a gnitiawa slaeppa fo golkcab sti etanimile ot spets ekat ot eunitnoc dluohs ylekiL naC dna noitamrofnI .ecnerefnoc weiver dna etatS eht rof seuneveR esaercnI noitatiC seitilicaF htlaeH laredeF yraunaJ 2 noitalsigel kees dluohs htlaeH cilbuP ,stnuocca ytlanep eht rof eunever esaercni oT .2 stnuoccA seitlaneP 5102 ,rotacidni noitaflni na tcefler ot stnuoma ytlanep eht yllacidoirep esiver ot ti gnizirohtua )0102 enuJ( 801‑0102 .IPC eht sa hcus nwonknU 2 ti taht erusne dluohs htlaeH cilbuP ,stnuocca ytlanep eht rof eunever esaercni oT .3 .wal etats yb deriuqer sa ,sraey owt yreve seitilicaf fo syevrus etats lla stcudnoc rebmeceD 2 ,ycnerapsnart sesaercni dna wal etats tnerruc htiw seilpmoc ti taht erusne oT .4 ro 6102 yraropmet fo noitartsinimda eht rof snoitaluger tpoda dluohs htlaeH cilbuP 7102 .seinapmoc tnemeganam . . . egap txen no deunitnoc 10 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA ton lliW 2 noitalsigel kees dluohs htlaeH cilbuP ,tnuocca etats eht rof eunever esaercni oT .5 tnemelpmi eht yap ot ytlanep yratenom eht tsetnoc ot tnaw taht seitilicaf eriuqer ot ti gnizirohtua nihtiw tnuocca na otni detisoped eb neht dluoc hcihw ,laeppa sti nopu ytlanep deurcca tseretni sulp ,detisoped ytlanep yratenom lanigiro ehT .dnuf tisoped laiceps eht .noisiced eht fo smret eht htiw ecnadrocca ni detadiuqil eb neht dluohs ,tnuocca eht ni ton lliW 2 taht dna ,stnemeriuqer laredef ot detaler ecnadiug laredef htiw ycnetsisnoc erusne oT .6 tnemelpmi ecnailpmocnon rof deussi snoitatic laeppa ot seitilicaf rof sevitnecni gnitaerc ton si ti taht ffats sti ot ecnadiug edivorp dluohs htlaeH cilbuP ,stnemeriuqer etats htiw ytilicaf eht dah naht mret retteb a rof seitlanep yratenom delaeppa gnilttes segaruocsid wal ni defiiceps emarf emit eht nihtiw ytlanep eht diap dna noitatic eht detsetnoc ton si ti nehw rucco secnatsni seveileb htlaeH cilbuP fI .noitcuder tnecrep 53 a eviecer ot tnemucod dluohs ti ,tnecrep 53 naht erom yb ytlanep yratenom a ecuder ot etairporppa eht taht gnidulcnoc rof sisab eht demrof taht srotcaf yrotaluger ro yrotutats hcihw regnol on erew tnuoma ytlanep yratenom gnidnopserroc dna noitatic fo ssalc lanigiro .tnaveler ro dilav deredisnoc ton lliW 2 noitalsigel kees dluohs htlaeH cilbuP ,stnuocca ytlanep eht rof eunever esaercni oT .7 tnemelpmi ton od taht snoitatic delaeppanon htiw seitilicaf hcihw nihtiw emarf emit a gniyficeps gniwolla dna seitlanep yratenom rieht yap tsum noitcuder tnecrep 53 a rof yfilauq .seitlanep yratenom fo stnemyap etal no tseretni tcelloc ot htlaeH cilbuP ton lliW 2 dluohs ti ,stcartnoc suoirav sti dnuf ot seunitnoc htlaeH cilbuP taht tnetxe eht oT .1 dna segnellahC lacsiF tnacfiingiS secaF tI htlaeH cilbuP fo tnemtrapeD tnemelpmi ot si yenom hcum woh gninrecnoc srotcartnoc sti htiw snoitatcepxe reraelc hsilbatse noitartsinimdA stI ni ycnerapsnarT skcaL rotinom dluohs dna margorp CWE eht fo stcepsa tnereffid eht no yltcerid tneps eb margorP stnuoC namoW yrevE eht fo .tem gnieb era snoitatcepxe eseht taht mrfinoc ot gnidneps )0102 yluJ( R301‑0102 3102 enuJ 2 margorp CWE eht woh rof ytilibatnuocca dna ycnerapsnart cilbup retteb erusne oT .2 ,snoitaluger poleved ot wal etats htiw ylpmoc dluohs htlaeH cilbuP ,deretsinimda si htlaeH cilbuP woh tcerid lliw taht ,seitrap detseretni dna cilbup eht morf tupni no desab eht enfied dluohs snoitaluger hcus ,muminim a tA .margorp CWE eht sretsinimda .secivres gnineercs CWE ot ssecca gnikees nemow rof airetirc ytilibigile ton lliW 2 eht teem taht secivres evitceffe‑tsoc ,ytilauq‑hgih eviecer sremusnoc taht erusne oT .1 tnerapsnarT dna mrofinU eroM A fo tnemtrapeD tnemelpmi latnempoleveD ,wal etats htiw tnetsisnoc )PPI( snalp margorp laudividni rieht fo slaog ssecorP gnitteS‑etaR dna tnemerucorP secivreS latnempoleveD detaler‑PPI yna fo sisab eht tnemucod ot sretnec lanoiger eht eriuqer dluohs secivreS fo ssenevitceffE‑tsoC eht evorpmI dluoW )elbaliava nehw( srodnev elbarapmoc hcihw yficeps dna noitceles rodnev sretneC lanoigeR .detaulave erew )0102 tsuguA( 811‑9002 ton lliW 2 noitatnemucod siht fo elpmas evitatneserper a weiver dluohs secivreS latnempoleveD .2 tnemelpmi era sretnec lanoiger taht erusne ot stidua lacsfi ro sweiver reviaw lainneib sti fo trap sa gniriuqer tnemdnema 9002 yluJ eht htiw ylralucitrap dna—wal etats htiw gniylpmoc .ecivres elbarapmoc fo redivorp elbaliava yltsoc tsael eht fo noitceles California State Auditor Report 2012-041 11 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA ton lliW 1 ekam ton dluohs snoitcerroC ,ycneicffie esaercni dna troffe evitacilpud etanimile oT .1 :margorP tnemtimmoC redneffO xeS fo tnemtrapeD tnemelpmi yltnioj dluohs htlaeH latneM dna snoitcerroC .htlaeH latneM ot slarrefer yrassecennu gniyfitnedI rof ssecorP eht gninilmaertS ‡htlaeH latneM erom serehda ssecorp larrefer eht taht os tnemurtsni gnineercs derutcurts eht esiver srotaderP tneloiV yllauxeS laitnetoP .tnetni s’wal eht ot ylesolc ro yrassecennU ecudeR dluoW kroW evitacilpuD nwonknU 1 a eussi rehtie dluohs htlaeH latneM ,snoitaulave yrassecennu rof stsoc ecuder oT .2 †)1102 yluJ( 611‑0102 ecnereffid a gnivloser nehw taht yfiralc ot tnemdnema yrotutats a kees ro noitaluger tsum htlaeH latneM ,redneffo na fo srotaulave laitini owt eht neewteb noinipo fo eht taht sedulcnoc rotaulave driht a nehw ylno rotaulave htruof a fo noinipo eht kees .airetirc PVS steem redneffo yraunaJ 1 latneM ,margorp eht fo thgisrevo evitceffe edivorp nac erutalsigeL eht taht erusne oT .4 3102 erutalsigeL eht ot stroper sti elbissop sa noos sa timbus dna etelpmoc dluohs htlaeH tuoba dna snoitaulave tcudnoc ot seeyolpme etats erih ot stroffe s’htlaeH latneM tuoba .margorp eht no waL s’acisseJ fo tcapmi eht yraunaJ 1 detimil s’etatS eht fo esu tneicffie tsom eht sekam dnuf ecnarusni eht taht erusne oT .1 ylimaF llamS dna emoH ylimaF retsoF fo tnemtrapeD 3102 enimreted ot atad erutidnepxe dna smialc eseht esu dluohs secivreS laicoS ,secruoser stI gnidnapxE :dnuF ecnarusnI emoH secivreS laicoS sti teem ot dnuf ecnarusni eht rof dedeen tnuoma noitairporppa launna eht eht dna stsoC esaercnI lliW egarevoC .seitilibail detapicitna sdeeN secivreS laicoS fo tnemtrapeD eht fo tnemeganaM stI evorpmI ot yraunaJ 1 detimil s’etatS eht fo esu tneicffie tsom eht sekam dnuf ecnarusni eht taht erusne oT .2 dnuF ecnarusnI 3102 ffats ediug ot serudecorp ro ycilop nettirw a hsilbatse dluohs secivreS laicoS ,secruoser )1102 rebmetpeS( 121‑0102 .seitilibail detapicitna eseht gnitaluclac nehw esu ot ygolodohtem etairporppa eht no yraunaJ 1 detimil s’etatS eht fo esu tneicffie tsom eht sekam dnuf ecnarusni eht taht erusne oT .3 3102 eht rof tnuoma evreser etauqeda na hsilbatse dluohs secivreS laicoS ,secruoser .yllaunna ti etaulaveer dna dnuf ecnarusni nwonknU 1 ylimaf retsof ,semoh retsof desnecil‑etats gnidulcni ,seesnecil sti taht erusne oT .1 naC ainrofilaC :secivreS erafleW dlihC fo tnemtrapeD taht dna stnemeriuqer elbacilppa htiw ecnailpmoc ni era ,semoh puorg dna ,seicnega noitcetorP retteB edivorP tsuM dna secivreS laicoS ecno tsael ta sweiver etis‑no etelpmoc dluohs secivreS laicoS ,detcetorp era nerdlihc dna desubA rof troppuS dna .wal etats yb deriuqer sa sraey evfi yreve nerdlihC detcelgeN )1102 rebotcO( 1.101‑1102 nwonknU 1 gnidrager seicnega SWC ytnuoc morf noitacinummoc evitceffe erom egaruocne oT .2 ro snoitautis fo sepyt tahw snoitaluger ni yficeps dluohs secivreS laicoS ,seesnecil sti .noisivid gnisnecil sti ot drawrof dluohs seicnega eht snoitagella nwonknU 1 dluohs secivreS laicoS ,etairporppa era seicnega ylimaf retsof ot diap setar taht erusne oT .3 eht yllaicepse ,tnenopmoc hcae rof troppus elbanosaer edivorp dna setar eht ezylana .seicnega eseht syap yltnerruc ti eef evitartsinimda tnecrep 04 nwonknU 1 stnemeriuqer raelc htiw ecnailpmoc rotinom dna etaerc dluohs secivreS laicoS .4 detavele evah tsum seicnega ylimaf retsof htiw decalp nerdlihc taht gniyficeps ecnetsixe eht rof ton fi tnemecalp emoh puorg a eriuqer dluow taht sdeen tnemtaert os snoitaluger sti esiver dluohs secivreS laicoS ,yllacfiicepS .smargorp ’seicnega eseht fo taht nerdlihc rof seicnega ylimaf retsof naht ytiroirp rehgih evah semoh retsof desnecil .sdeen tnemtaert defiitnedi evah ton od nwonknU 1 deliated a SMC/SWC ni elfi ot seicnega SWC ytnuoc eriuqer dluohs secivreS laicoS .5 .ycnega ylimaf retsof a htiw decalp dlihc yna rof noitacfiitsuj . . . egap txen no deunitnoc 12 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA nwonknU 1 rof kcehc yltneicffie nac ti hcihw yb msinahcem a etaerc dluohs secivreS laicoS .6 .tnemeriuqer noitacfiitsuj‑sdeen eht htiw ecnailpmoc nwonknU 1 laicoS ,efas nerdlihc gnipeek ni noitavonni dna ssergorp deunitnoc egaruocne oT .7 eht fo erusaem a scirtem ecnamrofrep SWC tnerruc sti ot dda dluohs secivreS taht emit no detelpmoc )yad‑01 dna etaidemmi htob( stisiv yrotagitsevni fo egatnecrep .semoctuo lufsseccus fo noitaluclac sti morf stisiv yrotagitsevni detpmetta sedulcxe nwonknU 1 gnicuder ni evitceffe neeb sah noisivorp sselmrah dloh eht rehtehw enimreted oT .8 enfier dluohs secivreS laicoS ,dednicser ro desiver eb dluohs ti rehtehw dna sdaolesac .sdaolesac SWC ytnuoc troper dna etaluclac ot SMC/SWC esu dna nwonknU 1 laicoS ,sweiver htaed lanretni lamrof tcudnoc ot seicnega SWC ytnuoc egaruocne oT .9 tcelgen ro esuba morf gnitluser shtaed dlihc no troper launna sti esiver dluohs secivreS fo weiver a hcus detcudnoc seicnega SWC ytnuoc rehtehw no noitamrofni edivorp ot dluohs secivreS laicoS ,noitamrofni siht niatbo oT .yrotsih SWC roirp htiw shtaed dlihc shtaed dlihc troper ylno ton ot seicnega SWC ytnuoc lla eriuqer ot snoitaluger sti esiver gnitacidni troper tneuqesbus a eriuqer osla ot tub tcelgen ro esuba morf gnitluser .detelpmoc saw weiver htaed dlihc lanretni na rehtehw nwonknU 1 dluohs secivreS laicoS ,ssecorp weiver emoctuo sti ot detaler snoitcurtsni sti fo trap sA .01 eht ni sweiver htaed lanretni detelpmoc edulcni ot seicnega SWC ytnuoc tcerid .snalp tnemevorpmi dna stnemssessa‑fles rieht fo tnempoleved nwonknU 1 edivorp dluohs secivreS laicoS ,troper launna sti ni noitamrofni lufesu erom edivorp oT .11 laicoS ,rehtruF .slatot ediwetats tsuj ton ,ytnuoc yb tuo nekorb noitamrofni htaed dlihc revo noitamrofni htaed dlihc gnirapmoc sa hcus ,sisylana erom edivorp dluohs secivreS latot sti fo egatnecrep a sa shtaed dlihc s’ytnuoc hcae gnitneserp dna sraey elpitlum .noitalupop dlihc NOITATILIBAHER DNA SNOITCERROC remmuS 3 kcal tnerruc sti sserdda lliw metsys atad wen sti taht erusne dluohs snoitcerroC .1 dluoW tahT ataD esU dna kcarT ot sliaF tI tnemtrapeD ainrofilaC 3102 gniyfitnedi ot detaler atad yllacfiiceps ,sisylana ediwetats rof elbaliava atad fo dna rotinoM ylevitceffE eroM ot tI wollA dna snoitcerroC fo dna ,ega ,level ytiruces sa hcus scitsiretcarahc etamni yb tsoc gnffiats ydotsuc eht snoitarepO stI eganaM noitatilibaheR ,deyaled eb ot seunitnoc metsys wen sti fo noitatnemelpmi fI .noitangised ydotsuc †)9002 rebmetpeS( 1.701‑9002 eht ecalper ylevitceffe ton lliw metsys wen eht taht senimreted snoitcerroC fi ro dluohs ti ,snoitutitsni eht yb desu smetsys gniludehcs dna tnemngissa tnerruc ot atad eht esu dna slevel gnffiats ydotsuc ot detaler atad gnitsixe sti evorpmi .snoitalupop etamni suoirav fo stsoc detaler eht yfitnedi nwonknU 3 —IInoitartsinimdA lennosreP fo tnemtrapeD eht ot etacinummoc dluohs snoitcerroC .2 gniniagrab eeyolpme htiw stnemeerga robal gnitaitogen rof elbisnopser si hcihw eht rof dekrow emit sa detnuoc eb ot evael fo epyt yna gniwolla fo tsoc eht—stinu .noitasnepmoc emitrevo gnitupmoc fo esoprup nwonknU 3 eerga ton ot noitartsinimdA lennosreP fo tnemtrapeD eht egaruocne dluohs snoitcerroC .3 detnuoc eb ot evael fo epyt yna timrep taht stnemeerga tinu gniniagrab ni snoisivorp ot .noitasnepmoc emitrevo gnitupmoc fo esoprup eht rof dekrow emit sa California State Auditor Report 2012-041 13 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA ton lliW 3 etaitogen ot noitartsinimdA lennosreP fo tnemtrapeD eht egaruocne dluohs snoitcerroC .4 tnemelpmi ot dewolla si recffio lanoitcerroc a emitrevo yratnulov fo tnuoma eht ni noitcuder a doohilekil eht ecuder ot redro ni ,stnemeerga tinu gniniagrab evitcelloc erutuf ni krow ni emitrevo fo sruoh 08 naht erom krow ot meht esuac lliw emitrevo yratnulovni taht .htnom a gnirud latot ton lliW 3 lanoitcerroc hcihw ni secnatsni eht stneverp ti taht erusne retteb dluohs snoitcerroC .5 tnemelpmi .doirep yap a ni timil emitrevo yratnulov eht dnoyeb krow srecffio 3102 llaF 3 gnitiaw dna tnemngissa margorp lacirotsih esu dna ,niatniam ,kcart dluohs snoitcerroC .7 .etamni yb atad tsil yraunaJ 3 dluohs secivreS eraC htlaeH nosirP ,enicidemelet fo esu eht hguorht stsoc eziminim oT .1 snoitcerroC fo tnemtrapeD ainrofilaC htlaeH nosirP ainrofilaC 3102 ot woh dnatsrednu retteb ot snoitatlusnoc enicidemelet fo ssenevitceffe eht weiver dna kcarT ot sliaF tI :noitatilibaheR dna §secivreS eraC .enicidemelet esu eroM ot tI wollA dluoW tahT ataD esU eganaM dna rotinoM ylevitceffE yraunaJ 3 nosirapmoc evisneherpmoc erom a mrofrep dluohs secivreS eraC htlaeH nosirP .2 snoitarepO stI 3102 ,snoitatlusnoc lanoitidart fo tsoc eht dna enicidemelet gnisu fo tsoc eht neewteb )9002 rebmetpeS( 1.701‑9002 snoisiced demrofni ekam nac ti taht os ,stsoc noitatropsnart dna gnidraug eht dnoyeb .enicidemelet gnisu fo ssenevitceffe‑tsoc eht gnidrager nwonknU 3 dluohs secivreS eraC htlaeH nosirP ,metsys enicidemelet eht fo esu eht esaercni oT .3 s’tnatlusnoc eht morf detpoda sah ti taht snoitadnemmocer eht tnemelpmi ot eunitnoc .seitilibapac enicidemelet fo weiver 3102 gnirpS 2 wen eht otni derrefsnart eb lliw taht atad fo punaelc sti etelpmoc dluohs snoitcerroC .1 eerhT eht rednU decnetneS setamnI tnemtrapeD ainrofilaC .metsys atad sti ni metsys fo rebmuN llamS a dna waL sekirtS dna snoitcerroC fo eraC htlaeH ytlaicepS gnivieceR setamnI noitatilibaheR  * 2 gnitsixe fo ycarucca eht fo skcehc raluger rof eludehcs a etaerc dluohs snoitcerroC .2 stsoC tnacfiingiS tneserpeR .metsys atad sti ni noitamrofni gnicnetnes †)0102 yaM( 2.701‑9002  * 2 ot dna ,noitarecracni fo tsoc launna eht srekam ycilop ot etacinummoc retteb oT .4 egral eht ni segnahc htiw detaicossa serutidnepxe fo etamitse etarucca erom a edivorp ycilop evitalsigel tnaveler eht edivorp dluohs snoitcerroC ,ffats ydotsuc fo secnalab evael rof ytilibail sti ni esaerced ro esaercni launna eht fo noitaluclac a seettimmoc lacsfi dna .ffats ydotsuc fo secnalab evael eht ton lliW 2 na seettimmoc lacsfi dna ycilop evitalsigel tnaveler eht edivorp dluohs snoitcerroC .5 tnemelpmi .ffats ydotsuc gniriter rof diap eb ot ylekil secnalab evael fo tsoc launna eht fo etamitse . . . egap txen no deunitnoc 14 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA yraunaJ 2 nihtiw evitceffe‑tsoc si enicidemelet fo noisnapxe lanoitidda eht rehtehw enimreted oT .1 snoitcerroC fo tnemtrapeD ainrofilaC htlaeH nosirP ainrofilaC 3102 dna yfitnedi dluohs secivreS eraC htlaeH nosirP ,metsys lanoitcerroc ainrofilaC eht decnetneS setamnI :noitatilibaheR dna §secivreS eraC na hguorht enicidemelet lanoitidda fo sgnivas eht etamitse ot sdeen ti atad eht tcelloc llamS a dna waL sekirtS eerhT eht rednU noitutitsni eht fo edistuo dedivorp yltnerruc stisiv erac ytlaiceps fo tsoc eht fo sisylana ytlaicepS gnivieceR setamnI fo rebmuN .enicidemelet htiw decalper eb dluoc taht stsoC tnacfiingiS tneserpeR eraC htlaeH )0102 yaM( 2.701‑9002 yraunaJ 2 nihtiw evitceffe‑tsoc si enicidemelet fo noisnapxe lanoitidda eht rehtehw enimreted oT .2 3102 ezylana rehtruf dluohs secivreS eraC htlaeH nosirP ,metsys lanoitcerroc ainrofilaC eht ,sgnivas fo etamitse tsubor erom a hguorht enicidemelet fo ssenevitceffe‑tsoc eht snoitatlusnoc enicidemelet fo tnecrep eht sa hcus srotcaf gniredisnoc gnidulcni desserdda eb ton dluoc eussi eht esuaceb stisiv nosrep‑ni tneuqesbus deriuqer taht .enicidemelet hguorht nwonknU 2 yludnu ton seod ffats ydotsuc yb dekrow emitrevo fo tnuoma latot eht taht erusne oT .3 secivreS eraC htlaeH nosirP ,snoitarepo efasnu ni tluser dna ssenevitceffe rieht ecuder fo slarrefer fo rebmun eht ecuder ot stroffe sti fI .ylesolc emitrevo rotinom dluohs dekrow emitrevo fo tnuoma eht ecuder ton od secivres ytlaiceps edistuo ot setamni htlaeH nosirP ,noitatropsnart dna gnidraug lacidem fo esoprup eht rof ffats ydotsuc yb emitrevo fo tnuoma latot eht gnicuder fo sdohtem rehto erolpxe dluohs secivreS eraC .ffats ydotsuc yb dekrow ton lliW 1 mrala gnidliub ot gnidnopser rof emitrevo detroper ylreporpmi eeyolpme na esuaceB .1 yb seitivitcA reporpmI fo snoitagitsevnI tnemtrapeD ainrofilaC tnemelpmi snoitca yranilpicsid etairporppa ekat dluohs snoitcerroC ,derrucco reven taht snoitavitca gningissaeR ni yaleD :seeyolpmE etatS dna snoitcerroC fo did ehs noitasnepmoc eht rof stroffe noitcelloc eusrup dna eeyolpme eht tsniaga fo esusiM ,tsirtaihcysP tnetepmocnI na noitatilibaheR .nrae ton eht tcetorP ot eruliaF ,secruoseR etatS ,stnemucoD laitnedfinoC fo ytiruceS rehtO dna ,seeF noitartsigeR fo tfehT waL etatS fo snoitaloiV †)1102 yraunaJ( 2‑0102I rebmeceD 1 snoitcerroC ,eloraPlaC ni deniatnoc atad tnemyolpme fo ytilibailer eht evorpmi oT .1 :ytirohtuA yrtsudnI nosirP ainrofilaC tnemtrapeD ainrofilaC 2102 eht gnitalupop ot detaler serudecorp wollof yltcerroc stnega elorap taht erusne dluohs slaoG stI teeM ylevitceffE eroM naC tI dna snoitcerroC fo .eloraPlaC gniniatniam dna fo sdlefi atad ,tnemyolpmE etamnI gnizimixaM fo noitatilibaheR gniniameR dna ,msividiceR gnicudeR rebmeceD 1 yfirev ot selfi eelorap fo sweiver cidoirep tcudnoc dluohs stnega elorap fo srosivrepuS .2 tneicffiuS‑fleS 2102 si tnemyolpme rehtehw dna yletairporppa detelpmoc era sdlefi tnemyolpme rehtehw )1102 yaM( 811‑0102 .yletauqeda detnemucod 3102 enuJ 1 redneffO cigetartS eht otni atad eloraPlaC evom ot seraperp snoitcerroC sA .3 dna sdlefi detaler‑tnemyolpme gnitsixe yfidom dluohs ti ,)SMOS( metsyS tnemeganaM snoitcerroC taht os eloraPlaC ni elbaliava ton yltnerruc era taht sdlefi wen SMOS ot dda atad tnemyolpme ekam dna seirtne atad suoenorre rof ytinutroppo eht eziminim nac .elbailer erom California State Auditor Report 2012-041 15 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA yraunaJ 1 dluohs AIPLAC ,sdradnats tnemngissa etamni fo tes mrofinu a sah ti taht erusne oT .1 slaoG stI teeM ylevitceffE eroM naC tI nosirP ainrofilaC 3102 ’snoitcerroC fo tnemdnema eht etelpmoc dna snoitaluger eussi ot stroffe sti eunitnoc ,tnemyolpmE etamnI gnizimixaM fo ytirohtuA yrtsudnI segnahc eht tnemelpmi ot snoitcerroC htiw krow neht dluohs tI .launam snoitarepo gniniameR dna ,msividiceR gnicudeR snoitaluger eht nehw ssecorp tnemngissa eht dna airetirc tnemngissa etamni eht ot tneicffiuS‑fleS .tceffe ekat )1102 yaM( 811‑0102 rebmevoN 1 sgnivas eht gnitaluclac ni desu noitatnemucod ecruos eht niatniam dluohs AIPLAC .2 2102 sti fo weiver yradnoces etauqeda na taht erusne sa llew sa etatS eht ot sgnirb ti .srucco noitaluclac yraurbeF 1 yam sesirpretne AIPLAC ta tnemyolpme taht gnitats yb sgnivas sti yfilauq dluohs AIPLAC .3 3102 .setamni sti fo msividicer rewol eht ot etubirtnoc taht srotcaf lareves fo eno tsuj eb ton lliW 1 ekam ton dluohs snoitcerroC ,ycneicffie esaercni dna troffe evitacilpud etanimile oT .1 :margorP tnemtimmoC redneffO xeS tnemtrapeD ainrofilaC tnemelpmi yltnioj dluohs htlaeH latneM dna snoitcerroC .htlaeH latneM ot slarrefer yrassecennu gniyfitnedI rof ssecorP eht gninilmaertS dna snoitcerroC fo erom serehda ssecorp larrefer eht taht os tnemurtsni gnineercs derutcurts eht esiver srotaderP tneloiV yllauxeS laitnetoP noitatilibaheR .tnetni s’wal eht ot ylesolc ro yrassecennU ecudeR dluoW kroW evitacilpuD ton lliW 1 ekam ton dluohs snoitcerroC ,ycneicffie esaercni dna troffe evitacilpud etanimile oT .2 )1102 yluJ( 611‑0102 tnemelpmi egarevel retteb dluohs snoitcerroC ,elpmaxe roF .htlaeH latneM ot slarrefer yrassecennu gninimreted )1( ssecorp larrefer sti ni gnidulcni yb stcudnoc ydaerla ti krow dna emit eht yna morf stluser gniweiver )2( ,esneffo yrotaderp a dettimmoc redneffo eht rehtehw gniredisnoc dna detelpmoc htlaeH latneM taht snoitaulave dna sgnineercs suoiverp ,noisiced suoiverp eht retla thgim esneffo ro noitaloiv elorap tnecer tsom eht rehtehw .dneffoer lliw redneffo na taht ksir eht ssessa ot R99‑CITATS gnisu )3( dna nwonknU 1 ton od seeyolpme ’snoitcerroC rehto dna tsigolohcysp feihc eht taht erusne oT .1 seitivitcA reporpmI fo snoitagitsevnI tnemtrapeD ainrofilaC rehtehw gnirotinom rof metsys a hsilbatse dluohs snoitcerroC ,secruoser etats esusim :seeyolpmE dna seicnegA etatS yb dna snoitcerroC fo gnikrow era ,tsigolohcysp feihc eht gnidulcni ,ytilicaf lanoitcerroc eht ta ffats ygolohcysp etatS fo esusiM ,sdnuF etatS fo etsaW noitatilibaheR .ytud fo sruoh defiiceps gnirud ,sdroceR fo noitacfiislaF ,secruoseR eruliaF ,ytuD fo tcelgeN elbasucxenI rehtO dna ,gnitropeR emiT rotinoM ot waL etatS fo snoitaloiV )1102 tsuguA( 1‑1102I 3102 enuJ 1 sti elihw SAPMOC no secruoser lanoitidda dneps ton seod etatS eht taht erusne oT .1 redneffO lanoitcerroC stI fo stfieneB ehT tnemtrapeD ainrofilaC dna eroc SAPMOC eht fo esu sti dnepsus dluohs snoitcerroC ,niatrecnu si ssenlufesu evitanretlA rof gnilfiorP tnemeganaM dna snoitcerroC fo ot launam snoitarepo sti detadpu dna snoitaluger deussi sah ti litnu stnemssessa yrtneer niatrecnU erA margorP snoitcnaS noitatilibaheR ,setamni gnidrager gnikam noisiced tceffa lliw SAPMOC fo esu ’snoitcerroC woh enfied )1102 rebmetpeS( 421‑0102 ot setamni gnidnes nehw deredisnoc eb lliw stluser SAPMOC woh gniyfiralc sa hcus rieht sserdda ot smargorp evitatilibaher ni meht gnillorne ,seitilicaf nosirp tnereffid .elorap no esoht rof snoitatcepxe gnipoleved dna ,srotcaf ksir lanimirc   * 1 sti elihw SAPMOC no secruoser lanoitidda dneps ton seod etatS eht taht erusne oT .2 dna eroc SAPMOC eht fo esu sti dnepsus dluohs snoitcerroC ,niatrecnu si ssenlufesu ot nalp a sah ti taht erutalsigeL eht ot detartsnomed sah ti litnu stnemssessa yrtneer redisnoc dluoc nalp a hcuS .msividicer gnicuder no tceffe s’SAPMOC troper dna erusaem tnemssessa SAPMOC a no desab margorp evitatilibaher a ni dellorne setamni rehtehw fo tluser a sa gnimmargorp evitatilibaher dedivorp esoht naht setar msividicer rewol dah .srotcaf SAPMOC‑non . . . egap txen no deunitnoc 16 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA   * 1 dluohs ti ,stnemssessa yrtneer dna eroc SAPMOC fo esu sti semuser snoitcerroC ecnO .3 srehto dna ,stnega elorap ,sevitatneserper ffats noitacfiissalc ot gniniart gniogno edivorp a si SAPMOC taht erusne ot stluser tnemssessa SAPMOC terpretni ro retsinimda yam taht .loot gninnalp dna tnemssessa etamni elbaulav 3102 lirpA 1 dluohs ti ,stnemssessa yrtneer dna eroc SAPMOC fo esu sti semuser snoitcerroC ecnO .4 gnisu era ffats sti rehtehw enimreted yllacidoirep ot serudecorp ro secitcarp poleved edulcni thgim ssecorp a hcuS .dednetni sa stnemssessa yrtneer ro eroc SAPMOC .deriuqer sa desu gnieb si SAPMOC taht etaroborroc ot stisiv etis cidoirep gnimrofrep   * 1 dluohs ti ,stnemssessa yrtneer dna eroc SAPMOC fo esu sti semuser snoitcerroC ecnO .5 niatrec rof dnamed eht erapmoc yllacidoirep ot serudecorp ro secitcarp poleved gnitsixe eht ot ,tnemssessa eroc SAPMOC a yb detseggus sa ,smargorp evitatilibaher .sdeen hcus taert ot yticapac GNISUOH DNA NOITATROPSNART ,SSENISUB 3102 yaM 2 dluohs DCH ,etelpmoc dna etarucca era SEPAC ni deniatniam atad taht erusne oT .1 evaH yllareneG sdnuF dnoB gnisuoH dna gnisuoH fo tnemtrapeD .SEPAC ot derrefsnart atad eht fo ycarucca eht fo weiver sti etelpmoc ni dna yltpmorP dedrawA neeB tnempoleveD ytinummoC gnirotinoM tub ,waL htiW ecnailpmoC tnemevorpmI deeN ot seunitnoC 3102 yaM 2 rof deniater dna detnemucod ylhguoroht era stroffe punaelc sti taht erusne dluohs DCH .2 )9002 rebmevoN( 730‑9002 .ecnerefer erutuf 3102 enuJ 2 ,stolip gnisnecil nehw wal etats ni stnemeriuqer ot serehda yltnetsisnoc ti taht erusne oT .1 dna serudecorP poleveD ot sdeeN tI srenoissimmoC toliP fo draoB gnirotinom dna gnivorppa rof erudecorp a tnemelpmi dna hsilbatse dluohs draob eht dna snoitarepO stI revO slortnoC fo syaB eht rof .snaicisyhp detnioppa‑draob htiW seilpmoC tI tahT erusnE ot secnaniF olbaP naS ,ocsicnarF naS stnemeriuqeR lageL nusiuS dna 3102 enuJ 2 dib ylevititepmoc dluohs draob eht ,etairporppa era serutidnepxe sti taht erusne oT .2 )9002 rebmevoN( 340‑9002 .stolip fo snoitanimaxe lacisyhp mrofrep ohw snaicisyhp htiw stcartnoc  * 2 sti morf yrav yam taht slevel gnidnuf ot yletauqeda dnopser nac ti taht erusne oT .1 etelpmocnI na ro syaleD sksiR tI ytirohtuA liaR deepS‑hgiH soiranecs gnidnuf evitanretla hsilbup dna poleved dluohs ytirohtuA eht ,nalp ssenisub etauqedanI fo esuaceB metsyS .secruos dennalp eht morf gnidnuf deyaled ro decuder fo ytilibissop eht tcefler taht xaL dna ,thgisrevO kaeW ,gninnalP fo gnimit ro level eht ni snoitairav fo snoitacilpmi eht liated dluohs soiranecs esehT tnemeganaM tcartnoC .eludehcs sti dna margorp eht no gnidnuf †)0102 lirpA( 601‑9002 ton lliW 2 puorg weiver eht taht erusne dluohs ytirohtuA eht ,segnellahc lagel elbissop treva oT .3 tnemelpmi yenrottA eht fo ecffiO eht morf noinipo lamrof a kees ro tcA gniteeM eht ot serehda .tca siht ot tcejbus si puorg weiver eht rehtehw gnidrager lareneG rebmevoN 1 dna etaerc dluohs snartlaC ,cilbup eht htiw dna yllanretni ytilibatnuocca evorpmi oT .1 margorP troppuS yaltuO latipaC stI tnemtrapeD ainrofilaC 2102 eht ot troper ylretrauq sti ni secnairav tegdub tsoc troppus fo sisylana na etaroprocni ,secitcarP gnitegduB nehtgnertS dluohS noitatropsnarT fo dluohs sisylana ehT .ronrevog eht dna erutalsigeL eht ot troper launna sti ni dna ycnega dna ,serusaeM ecnamrofreP stI enfieR rebmun eht no dna secnairav tegdub htiw stcejorp detelpmoc fo rebmun eht no troper slortnoC lanretnI evorpmI .secnairav tegdub tciderp noitelpmoc ta setamitse eht hcihw rof stcejorp nepo fo †)1102 lirpA( 221‑0102 esoht rof soitar nurrednu dna nurrevo eht no troper dluohs sisylana eht ,rehtruF dluohs snartlaC ,oslA .sruoh dna setar ot eud secnairav eht fo snoitrop eht dna ,stcejorp .secnairav gnicuder rof laog elbarusaem a nalp cigetarts sti ni edulcni nwonknU 1 dluohs snartlaC ,margorp troppus eht ot detaler scirtem ecnamrofrep evorpmi oT .4 a no desab erusaem a sa hcus ,scirtem lanoitidda fo esu eht erolpxe ot eunitnoc fo ytisrevinU eht yb yduts tfard 1102 hcraM a ni debircsed sa xedni ytivitcudorp .sivaD ,ainrofilaC California State Auditor Report 2012-041 17 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA 3102 enuJ 1 denrae tnemelpmi dluohs snartlaC ,stcejorp fo sutats eht srotinom ti taht erusne oT .5 noitatnemelpmi eht ot ralimis rennam a ni stcirtsid sti tuohguorht tnemeganam eulav snartlaC ,krow tcejorp fo noitaulave ecnamrofrep rof wolla oT .tcirtsid selegnA soL eht ni htob rof level ksat eht ta elbaliava era scirtem ecnamrofrep eseht taht erusne dluohs siht etagergga ot stcirtsid tcurtsni dluohs snartlaC .stcejorp detelpmoc dna evitca ycneicffie dna ssenevitceffe eht ssessa retteb ot ,level ksat yb stcejorp lla rof noitamrofni sreganam tcejorp ot elbaliava ekam osla dluohs snartlaC .level ksat yb stsoc troppus fo .ecnamrofrep eludehcs dna tsoc tcejorp fo syalpsid lacihparg 3102 enuJ 1 erusne dluohs snartlaC ,margorp troppus eht htiw detaicossa stsoc sserdda retteb oT .6 emit egrahc ylno seeyolpme erusne taht slortnoc gnorts sniatnoc metsys MSRP eht taht .dengissa era yeht hcihw rof sesahp dna stcejorp ot 3102 hcraM 1 dluohs snartlaC ,margorp troppus eht htiw detaicossa stsoc sserdda retteb oT .7 stnatlusnoc gnisu fo stfieneb dna stsoc eht fo yduts tnednepedni na noissimmoc ,sgnivas tsoc slaever yduts eht fi ,dna daolkrow ni sesaercni yraropmet sserdda ot ffats yraropmet esu osla dluohs snartlaC ,elbissop tnetxe eht oT .stnatlusnoc esu .elbaliavanu era stnatlusnoc nehw daolkrow ni sesaercni yraropmet rof stnemtnioppa SECRUOSER LARUTAN rebmeceD 2 ezilamrof dluohs tnemtraped eht ,snoitagitsevni duarf sti fo tnemeganam evorpmi oT .2 dna gnitsaceroF ni seicneicfieD secruoseR fo tnemtrapeD 2102 airetirc poleved dna duarf laitnetop rof atad gnilcycer ezylana ot desu hcaorppa eht evaH tnemeganaM evitceffenI yrevoceR dna gnilcyceR esuaceB .noitagitsevni rof seilamona refer ot rehtehw gnidiced nehw esu ot ffats rof reniatnoC egareveB eht deredniH eht ,detnemelpmi si ti ecno seitivitca gnilcycer rof ecruos atad lartnec a eb lliw SIIROD margorP gnilcyceR atad gnilcycer fo weiver eht etamotua ot nalp sti htiw eunitnoc dluohs tnemtraped †)0102 enuJ( 101‑0102 .duarf laitnetop yfitnedi ot SIIROD nihtiw 5102 enuJ 2 eht morf deviecer si eulav dednetni eht taht erusne dna stnarg fo thgisrevo evorpmi oT .3 tnempoleved tekram fo stneipicer rof dluohs tnemtraped eht ,sdrawa ti sdnuf tnarg seetnarg htiw tcatnoc niatniam ,stnarg rieht fo slaog eht teem ot elbanu era taht stnarg .deveihca eb yletamitlu yam slaog eht fi enimreted ot detelpmoc si tcejorp eht retfa 4102 2 eht erusaem ot scirtem htiw delpuoc ,skramhcneb evaew dluohs tnemtraped ehT .4 ot ti wolla ot margorp egareveb eht rof nalp cigetarts eht otni ,seitivitca sti fo ytilauq .slaog gniteem ni ssergorp erusaem retteb 4102 2 seitivitca tnaveler lla setaroprocni nalp cigetarts eht taht erusne dluohs tnemtraped ehT .5 .margorp egareveb eht fo ton lliW 1 dednuf‑dnob eht no noitamrofni etelpmoc dna etarucca htiw cilbup eht edivorp oT .1 ehT :sdnoB noitagilbO lareneG fo tnemtrapeD tnemelpmi a esu yltnetsisnoc dna poleved dluohs secruoseR retaW ,sretsinimda ti stcejorp dna secruoseR retaW fo stnemtrapeD secruoseR retaW tcejorp taht ecnarussa retaerg edivorp lliw taht ssecorp weiver detnemucod ,dezilamrof evorpmI ot eroM oD dluohS ecnaniF dna detadpu ylraluger si etis beW ytilibatnuoccA dnoB eht ot detsop noitamrofni serutidnepxE dnoB fo thgisrevO riehT .noitamrofni etarucca sniatnoc )1102 yaM( 711‑0102 . . . egap txen no deunitnoc 18 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA ton lliW 1 dluohs emaG dna hsiF ,elcihev etats eht fo esu reporpmi eht fo tsoc eht revocer oT .1 seitivitcA reporpmI fo snoitagitsevnI hsiF fo tnemtrapeD tnemelpmi eht morf tnemyaper etaitini dna snoitaluger etats ni dehsilbatse senilediug eht wollof :seeyolpmE dna seicnegA etatS yb #emaG dna .elcihev etats eht fo esusim eht htiw detaicossa stsoc eht rof reganam etatS fo esusiM ,sdnuF etatS fo etsaW ,sdroceR fo noitacfiislaF ,secruoseR  * 1 kees dluohs emaG dna hsiF ,stnemesrubmier levart reporpmi eht fo tsoc eht revocer oT .2 eruliaF ,ytuD fo tcelgeN elbasucxenI .eeyolpme eht ot diap erew taht stnemesrubmier laem dna gnigdol ni 595$ eht fo yrevocer rehtO dna ,gnitropeR emiT rotinoM ot waL etatS fo snoitaloiV  * 1 etats tuoba eeyolpme eht dna reganam eht ot gniniart edivorp dluohs emaG dna hsiF .3 )1102 tsuguA( 1‑1102I .sesnepxe levart eeyolpme fo tnemyap eht rof selur ton lliW 1 dluohs ti ,flesti seessel tneuqniled eusrup lliw ti taht senimreted noissimmoc eht nehW .1 cilbuP deganaM toN saH tI esuaceB noissimmoC sdnaL etatS tnemelpmi ycnegaretnI s’draoB xaT esihcnarF eht sa hcus margorp a ro ycnega noitcelloc a esu tsoL saH etatS eht ,ylevitceffE sdnaL .margorP snoitcelloC tpecretnI dnuF lareneG eht rof euneveR ni snoilliM )1102 tsuguA( 521‑0102 ton lliW 1 rof eulav etamixorppa eht stcefler taht eessel eht morf tner seviecer ti taht erusne oT .2 tnemelpmi latner eht ot noitacfiidom a setupsid eessel a nehw semit esoht ta ytreporp s’etatS eht esuaceb ro weiver tner a mrofrep ot thgir sti sesicrexe noissimmoc eht retfa tnuoma noisivorp a stnemeerga esael sti ni edulcni dluohs noissimmoc eht ,deripxe esael eht hcihw ,tnuoma latner desaercni desoporp s’noissimmoc eht yap ot seessel seriuqer taht desaercni ehT .dnuF tisopeD laicepS eht nihtiw tnuocca na otni detisoped eb dluow ,tnuocca eht ni deurcca tseretni gnidnopserroc eht sulp ,detisoped stnuoma latner lanfi eht ni ot deerga tnuoma eht htiw ecnadrocca ni detadiuqil eb neht dluohs .tnemeerga esael rebmevoN 1 noissimmoc eht ,sesael fo sepyt niatrec eulavrednu ton seod ti taht erusne oT .3 3102 ffats sa dnal etats no stner enilepip gnihsilbatse rof snoitaluger sti dnema dluohs ot setats rehto ni seicnega yb desu sdohtem fo yevrus 0102 eht ni dednemmocer .stner enilepip hsilbatse 3102 enuJ 1 dluohs noissimmoc eht ,sesael fo sepyt niatrec eulavrednu ton seod ti taht erusne oT .4 gninimreted rof skramhcneb sti etadpu ylraluger ot nalp sti wollof dna tnemelpmi .stnuoma latner rebmevoN 1 sdnuf eht taht erusne ot margorp gnirotinom a hsilbatse dluohs noissimmoc ehT .5 3102 .tsurt cilbup eht htiw ecnadrocca ni dednepxe era sdnal detnarg morf detareneg rebmevoN 1 ytilibail dna sdnob yterus tnerruc evah sesael sag dna lio sti fo lla taht erusne oT .6 3102 dluohs noissimmoc eht ,stnemeerga esael niatrec dna wal yb deriuqer sa ,ecnarusni .ecnarusni ytilibail dna sdnob yterus rieht fo noitatnemucod edivorp ot seessel eriuqer ni evitceffe eb lliw ytlanep yratenom a gnissessa taht seveileb noissimmoc eht fI kees dluohs ti ,ecnarusni ytilibail ro sdnob yterus niatbo ot seessel gnigaruocne noissimmoc eht ,ytirohtua siht sniatbo ti fi ,yllaniF .ytirohtua siht edivorp ot noitalsigel .ti ecrofne dluohs SECIVRES REMUSNOC DNA ETATS ton lliW 5 meht gnicuder yliraropmet redisnoc ro seef esnecil ’snaicisyhp gnidnufer redisnoC .1 ro seeF stI gnittuC redisnoC ot sdeeN tI ainrofilaC fo draoB lacideM tnemelpmi level eht deecxe yltnacfiingis ot eunitnoc ton seod ecnalab dnuf sti taht erusne ot dnuF eht ecudeR ot dnufeR a gniussI .wal ni dehsilbatse dnuF tnegnitnoC stI fo ecnalaB )7002 rebotcO( 830‑7002 California State Auditor Report 2012-041 19 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA rebmeceD 3 tneverp taht swafl lanoitarepo dna larutcurts eht sserdda dluohs draob ehT .1 mitciV eht gnivorpmI nugeB saH tI dna noitasnepmoC mitciV 3102 metsys rehto dna skcehc tide tnemelpmi dna noitamrofni suoenorre fo noitacfiitnedi eroM tub ,margorP noitasnepmoC draoB smialC tnemnrevoG .srorre yfitnedi ot tneicffius slortnoc enoD eB ot sniameR )8002 rebmeceD( 311‑8002 nwonknU 3 enfied dluohs ti ,stroffe hcaertuo sti tuo seirrac yletairporppa draob eht taht erusne oT .2 hsilbatse dna hcaertuo rof seigetarts noitca sti hsilpmocca ot serudecorp cfiiceps eht .stroffe hcaertuo sti fo ssenevitceffe eht etaulave ot serusaem evitatitnauq  * 2 decruos yllacigetarts rof drawrof gniog etatS eht ot sgnivas senimreted ti taht erusne oT .1 secruoS yllacigetartS regnoL oN tI fo tnemtrapeD nehw snrettap gnisahcrup tnecer s’etatS eht enimaxe dluohs secivreS lareneG ,stcartnoc riehT dessessA toN saH dna stcartnoC secivreS lareneG dna stcartnoc decruos yllacigetarts ylsuoiverp dnetxe ro diber ot rehtehw gninimreted dna sessenisuB llamS no tcapmI ti sgnivas eht erapmoc yltneuqesbus dluohs tI .sgnivas detcepxe gnitamitse nehw sesirpretnE ssenisuB nareteV delbasiD .stcartnoc esoht rof sgnivas detcepxe eht ot seveihca †)0102 yluJ( 411‑9002 TNEMPOLEVED ECROFKROW DNA ROBAL rebotcO 1 eht gnivorpmi fo snaem a sa ssecorp gninnalp noitca evitcerroc sti ecnahne rehtruf oT .1 saH margorP tnemyolpmenU stI tnempoleveD tnemyolpmE 3102 ecnamrofrep yek lareves hsilbatse dluohs tnemtraped eht ,margorp tnemyolpmenu s’ainrofilaC evreS ylevitceffE ot delggurtS tnemtrapeD ylevitceffe ot ,noitca evitcerroc cfiiceps hcae ot deit era taht skramhcneb ro stegrat tnacfiingiS fo ecaF eht ni deyolpmenU ot detaler slevel elbatpecca eht gniveihca fo laog sti no snoitca eht fo tcapmi eht eguag segnellahC lacsiF dna daolkroW .serusaem ssenilemit eht )1102 hcraM( 211‑0102 rebmetpeS 1 ylemit gnidivorp llits elihw seviecer ti sllac fo rebmun eht timil ot ygetarts llarevo na fo trap sA .2 3102 atad lanoitidda dna atad gnitsixe esu dluohs tnemtraped eht ,ecivres remotsuc evitceffe dna kaeps ot tseuqer elpoep yhw fo gnidnatsrednu retteb a niag ot metsys enohp wen eht morf dna seigetarts poleved rehtruf dluohs tnemtraped eht ,noitamrofni siht gnisU .tnega na ot erusne ot ,elpmaxe roF .semulov llac ni noitcuder a gniveihca ot detaler slaog elbarusaem enohp wen sti fo noitrop esnopser eciov eht ot ssecca niag ot elba era sllac lla yllautriv taht htiw krow dna stpmetta llac dekcolb fo emulov eht rotinom dluohs tnemtraped eht ,metsys .yticapac s’metsys eht esaercni ot yrassecen fi rodnev metsys enohp sti rebmetpeS 1 ni stnamialc ot secivres edivorp ot stroffe rehto sti fo ssenevitceffe eht etaulave oT .3 3102 eht ,treC‑eleT dna treC‑beW sa hcus ,stnega ot kaeps ot meht eriuqer ton od taht syaw tnemeganam tsubor erom eht ssessa dna ezirammus yllacidoirep dluohs tnemtraped .metsys enohp wen sti rednu elbaliava noitamrofni 6102 1 stfieneb gniniart eht rof snoitanimreted fo ssenilemit eht evorpmi dna kcart retteb oT .4 ,stnemeriuqer gniniart degnarra‑fles gnidnatsrednu ni stnamialc tsissa ot dna margorp era senimreted ti stnamialc fo rebmun eht troper dna kcart dluohs tnemtraped eht eseht rof snosaer eht dna gniniart degnarra‑fles eht rof elbigileni dna elbigile htob tsissa nac ti woh drawot snoitadnemmocer sti fo emos sucof retteb ot ,snoitanimreted .airetirc s’margorp eht gnidnatsrednu ni stnamialc yraurbeF 1 stfieneb gniniart eht rof snoitanimreted fo ssenilemit eht evorpmi dna kcart retteb oT .5 4102 ,stnemeriuqer gniniart degnarra‑fles gnidnatsrednu ni stnamialc tsissa ot dna margorp elbigileni htob eb ot sdnfi ti taht stnamialc fo rebmun eht kcart dluohs tnemtraped eht dna stfieneb tnemyolpmenu rof elbigileni yletamitlu dna gniniart degnarra‑fles rof .stnamialc eseht rof ssecorp noitanimreted eht etidepxe ot seigetarts poleved . . . egap txen no deunitnoc 20 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA TNEMNREVOG LARENEG nwonknU 4 ADA laredef htiw ecnailpmocnon fo saera sefiitnedi taht nalp a etadpu dna poleveD .1 ta ainrofilaC fo emoH snareteV fo tnemtrapeD ainrofilaC nI .ecnailpmoc lluf gniveihca rof spets etairporppa eht sedulcni dna snoitaluger gninnalP regnortS sdeeN tI :ellivtnuoY sriaffA snareteV a yfitnedi dna serudecorp ecnaveirg poleved dluohs emoH snareteV eht ,noitidda ,saerA lanoitarepO yeK ni thgisrevO dna .rotanidrooc ADA sti sa eeyolpme cfiiceps gnivloseR rof sessecorP emoS dna tnemevorpmI deeN stnialpmoC )8002 lirpA( 121‑7002 nwonknU 3 noitcuder tcerrocni ,smialc tset fo golkcab sti yltneicffius sevloser ti taht erusne oT .1 segnahC larutcurtS dna lanoitarepO no noissimmoC htiw krow dluohs noissimmoC eht ,tseuqer tnemdnema etalpreliob eht dna ,smialc ni stnemevorpmI detimiL dedleiY evaH setadnaM etatS dna smialc tset gnidulcni ,golkcab sti ecuder ot secruoser lanoitidda kees ot ecnaniF gnillortnoC ni dna sessecorP gnitidepxE daolkrow sti ezitiroirp dluohs ffats noissimmoC ,os gniod nI .smialc noitcuder tcerrocni seitilibaiL dna stsoC .elbissop tnetxe eht ot seicneicffie kees dna )9002 rebotcO( 105‑9002 remmuS 3 fo rebmun eht no noitamrofni timbus ot sOSVC eht eriuqer dluohs secivreS snareteV .1 stI esaercnI ot nugeB saH tI hguohtlA fo tnemtrapeD ainrofilaC 3102 .seitivitca hcaertuo rieht no noitamrofni dna stfieneb P&C rof delfi smialc etanidrooC ot dna stroffE hcaertuO sriaffA snareteV evorpmI ot sdeeN tI ,seititnE rehtO htiW nwonknU 3 ni noitapicitrap ’snaretev esaercni ot stroffe sti sdnapxe secivreS snareteV sA .2 stI dna ,ssecorP gninnalP cigetartS stI elbaliava taht sa hcus ,noitamrofni cihpargomed ’snaretev esu dluohs ti ,stfieneb P&C toN sI margorP naoL emoH teVlaC sOSVC eht morf niatbo ot snalp ti noitamrofni eht dna ,uaeruB susneC .S.U eht hguorht sdeeN gnisuoH eht sserddA ot dengiseD seitnuoc esoht no stroffe noitanidrooc dna hcaertuo sti sucof ot ,metsys MIAS sti gnisu snareteV emoS fo .stfieneb P&C ni noitapicitrap fo etar s’etatS eht gnisaercni rof laitnetop tsehgih eht htiw )9002 rebotcO( 801‑9002 3102 enuJ 3 ytitnauq eht rotinom ot ti elbane ot metsys MIAS eht eusrup ot stroffe sti eunitnoC .3 stnemeriuqer lagel steem ti erusne dna ,sOSVC eht yb dessecorp smialc fo ytilauq dna egelloc fo ssenetairporppa eht gniyfirev dna stroper daolkrow OSVC gnitidua gnidrager eht gnitnemelpmi ni lufsseccusnu si secivreS snareteV taht tnetxe eht oT .sreviaw eef sti teem ot hcihw yb seuneva rehto poleved ot deen lliw tnemtraped eht ,metsys MIAS .stnemeriuqer lagel ton lliW 3 ot eaM einniG eht dna noitartsinimdA gnisuoH laredeF eht htiw gnikrow eunitnoC .4 tnemelpmi .snaol no setar tseretni sti rewol ton lliW 1 eriuqer dluohs ecnaniF ,etis beW ytilibatnuoccA dnoB eht fo eulav eht ecnahne oT .1 ehT :sdnoB noitagilbO lareneG ecnaniF fo tnemtrapeD tnemelpmi sdnuf dnob fo stnuoma lautca eht tuoba noitamrofni edivorp ot seicnega gniretsinimda dna secruoseR retaW fo stnemtrapeD .yllaunnaimes tsael ta stcejorp detsop no tneps evorpmI ot eroM oD dluohS ecnaniF serutidnepxE dnoB fo thgisrevO riehT ton lliW 1 poleved dluohs ecnaniF ,etis beW ytilibatnuoccA dnoB eht fo eulav eht ecnahne oT .2 †)1102 yaM( 711‑0102 tnemelpmi tcejorp eht fo ssenetelpmoc eht ssessa yllacidoirep ot ssecorp weiver dna gnikcart a rehtehw fo weiver a edulcni dluohs ssecorp a hcuS .etis beW eht ot detsop noitamrofni ro detcepxe eht ,dnatsrednu ylisae nac cilbup eht smret ni ,gnibircsed era seicnega etats .stcejorp dednuf‑dnob fo stfieneb dezilaer California State Auditor Report 2012-041 21 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA EVITUCEXE DNA ,LAICIDUJ ,EVITALSIGEL ton lliW 1 eht ,defiilauq era srotaulave )SCF( secivreS truoC ylimaF eht taht niatrec ekam oT .2 :struoC roirepuS niraM dna otnemarcaS ,ainrofilaC fo truoC roirepuS tnemelpmi SCF lla sngis ti taht erusne ot sessecorp poleved dluohs truoc ylimaf otnemarcaS ylimaF tahT erusnE ot deeN struoC htoB otnemarcaS fo ytnuoC .yllaunna snoitacfiilauq fo snoitaralced rotaulave yrasseceN evaH seetnioppA truoC evitartsinimdA evorpmI ,snoitacfiilauQ ton lliW 1 truoc ylimaf otnemarcaS eht ,defiilauq era srotaulave SCF eht taht niatrec ekam oT .3 ylpmoC dna ,serudecorP dna seiciloP tnemelpmi eht fo noitrop gnisnecil eht etelpmoc srotaulave SCF desnecilnu sti taht erusne dluohs seluR dna swaL htiW .snoitacfiilauq fo snoitaralced launna †)1102 yraunaJ( 901‑9002 ton lliW 1 truoc ylimaf otnemarcaS eht ,defiilauq era srotaulave SCF eht taht niatrec ekam oT .4 tnemelpmi ’selur truoc eht yfsitas ot deen srotaulave SCF eht fo hcae gniniart eht yfitnedi dluohs .sgniniart eht dnetta yeht taht erusne dna stnemeriuqer ton lliW 1 truoc ylimaf otnemarcaS eht ,defiilauq era srotaulave SCF eht taht niatrec ekam oT .5 tnemelpmi edulcni snoitacfiilauq fo snoitaralced rotaulave taht erusne ot sessecorp poleved dluohs .ecneirepxe s’rotaulave eht sa hcus ,noitamrofni tnaveler lla ton lliW 1 dluohs truoc ylimaf otnemarcaS eht ,defiilauq era srotaulave SCF eht taht niatrec ekam oT .6 tnemelpmi snoitacfiilauq muminim eht teem srotaulave SCF sti erusne ot spets elbanosaer lla ekat 1113 noitceS edoC ylimaF erutuf yna ot meht gningissa erofeb stnemeriuqer gniniart dna eht eriuqer dluohs truoc eht ,elbissop ylbanosaer sa noos sa dna ,yrassecen fI .snoitaulave eht rof etasnepmoc ot sesruoc gniniart ro noitacude lanoitidda ekat ot srotaulave SCF .tem ton erew taht stnemeriuqer gniniart dna snoitacfiilauq muminim ton lliW 1 muminim eht teem srebmem lenap rotaulave dna rotaidem etavirp sti taht yfirev oT .7 tnemelpmi ylimaf otnemarcaS eht ,tnemtnioppa erofeb stnemeriuqer gniniart dna snoitacfiilauq srotaidem etavirp rof sdrocer gniniart dna snoitacilppa gnissim yna niatbo dluohs truoc .sesac erutuf ot meht gnitnioppa erofeb tsil lenap tnerruc sti no srotaulave dna ton lliW 1 muminim eht teem srebmem lenap rotaulave dna rotaidem etavirp sti taht yfirev oT .8 tnemelpmi ylimaf otnemarcaS eht ,tnemtnioppa erofeb stnemeriuqer gniniart dna snoitacfiilauq a edivorp ot srotaulave dna srotaidem etavirp rof selur lacol sti etatsnier dluohs truoc taht tnemetats a edivorp ot srotaulave etavirp rof dna ,secnerefer eerht fo muminim .senilediug rotaulave s’truoc eht daer evah yeht ton lliW 1 deriuqer sdradnats lanoitidda eht teem stnioppa ti lesnuoc s’ronim eht taht erus ekam oT .9 tnemelpmi gnissim yna niatbo dluohs truoc ylimaf otnemarcaS eht ,selur lacol s’truoc roirepus eht yb .sesac erutuf yna ot meht gnitnioppa erofeb lesnuoc s’ronim rof snoitacilppa ton lliW 1 1113 noitceS edoC ylimaF ainrofilaC rof ssecorp gnitnuocca sti nehtgnerts oT .01 tnemelpmi serudecorp gnitnuocca sti etadpu dluohs truoC roirepuS otnemarcaS eht ,snoitaulave lacitamehtam eht gniyfirev rof spets edulcni ot stsoc noitaulave SCF gnillib ot detaler .seitrap eht neewteb stsoc fo noitacolla reporp eht dna yrammus SCF eht fo ycarucca . . . egap txen no deunitnoc 22 California State Auditor Report 2012-041 January 2013 TNEMSSESSA S’ROTIDUA ETATS TON DID EETIDUA TON DID EETIDUA NI SRAEY FO REBMUN LLA SSERDDA ETAITNATSBUS DETAMITSE TON FO TROPER LAUNNA EHT FO STCEPSA LLUF FO MIALC STI FO ETAD DETNEMELPMI YLLUF NOITADNEMMOCER NOITATNEMELPMI NOITELPMOC SNOITADNEMMOCER NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA  * 1 etarucca dna lluf esolcsid dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .6 tnemeganaM esaC ediwetatS ehT fo ecffiO evitartsinimdA eht morf sredlohekats dna ,erutalsigeL eht ,licnuoC laiciduJ eht ot setamitse tsoc euD segnellahC tnacfiingiS secaF tcejorP struoC eht .stcejorp fo gninnigeb tnemeganaM tcejorP rooP ot †)1102 yraurbeF( 201‑0102  * 1 a sah ti taht erusne dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .7 .tcejorp a ni secruoser tnacfiingis gnitsevni erofeb ecalp ni ygetarts gnidnuf mret‑gnol  * 1 tpoda ot struoc eht lepmoc ot ytirohtua lagel eht sah licnuoC laiciduJ eht hguohtlA .8 dluohs COA eht ,SMCC gniyolped ot ssenevitpecer truoc roirepus retsof retteb ot ,SMCC erusne ot metsys livic eht deyolped evah taht struoc roirepus eht htiw krow ot eunitnoc .rennam etairporppa dna ylemit a ni snrecnoc rieht gnisserdda si ti  * 1 tpoda ot struoc eht lepmoc ot ytirohtua lagel eht sah licnuoC laiciduJ eht hguohtlA .9 dluohs COA eht ,SMCC gniyolped ot ssenevitpecer truoc roirepus retsof retteb ot ,SMCC ainrofilaC eht ta atad gnitsoh tuoba snrecnoc sserdda ot struoc roirepus htiw krow ot spets ekat dluohs COA eht ,rehtruF .)retneC ygolonhceT( retneC ygolonhceT truoC ta atad gnitsoh yb seicneicffie ro ytivitcudorp esol ton od struoc roirepus taht erusne .retneC ygolonhceT eht rebmeceD 1 roF .ssenevitceffe sti eguag retteb ot spets ekat dluohs margorp ecnatsissa ehT .1 skcaL margorP ecnatsissA reywaL stI draoB ,ainrofilaC fo raB etatS 2102 ssessa dna margorp eht ni niamer stnapicitrap sti gnol woh erusaem dluoc ti ,elpmaxe no gnitropeR rof slortnoC etauqedA seetsurT fo eseht no esopmi seidob yranilpicsid taht snoitca rehtruf yna no tcapmi s’margorp eht syenrottA gnitapicitraP eht fo ssenevitceffe eht taht seveileb margorp ecnatsissa eht fi ,rehtruF .syenrotta )1102 yaM( 030‑1102 evitanretla eseht poleved dluohs ti ,snaem rehto hguorht derusaem retteb si margorp .slaog detats sti gniteem ni ssenevitceffe s’margorp eht ssessa dna serusaem .noitadnemmocer eht detnemelpmi ylluf sah ti seveileb eetidua eht ,noitanimreted s’rotiduA etatS ainrofilaC eht ot yrartnoC * .3 elbaT ni dnuof eb nac ,detnemelpmi ylluf neeb evah hcihw ,tidua siht ot gniniatrep snoitadnemmocer rehtO † .slatipsoH etatS fo tnemtrapeD wen eht emaceb htlaeH latneM fo tnemtrapeD ainrofilaC eht ,2102 ,1 yluJ fo sA ‡ .1102 ,5 yluJ evitceffe secivreS eraC htlaeH lanoitcerroC emaceb secivreS eraC htlaeH nosirP § .secruoseR namuH fo tnemtrapeD ainrofilaC eht etaerc ot noitartsinimdA lennosreP fo tnemtrapeD eht htiw denibmoc saw draoB lennosreP etatS eht ,2102 ,1 yluJ fo sA II .efildliW dna hsiF fo tnemtrapeD eht emaceb emaG dna hsiF fo tnemtrapeD eht ,3102 ,1 yraunaJ fo sA # California State Auditor Report 2012-041 23 January 2013 3 elbaT esnopseR raeY‑enO s’eetiduA eht ro tropeR s’raeY tsaL ecniS detnemelpmI ylluF ereW tahT dlO raeY enO nahT eroM snoitadnemmoceR SRAEY FO REBMUN NOITADNEMMOCER SIHT NI DERAEPPA TROPER LAUNNA NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA NOITACUDE 21 URHT K 2 dlihC eht ni tnemtsevni s’etatS eht morf stfieneb eht sezimixam ti taht erusne oT .2 gnidivorP erA emoS :sloohcS retrahC s’ainrofilaC noitacudE fo tnemtrapeD ainrofilaC dluohs noitacudE ,esabatad )SPINC( metsyS tnemyaP dna noitamrofnI noitirtuN ataD elbaileR fo kcaL a tub ,stnedutS ot slaeM tnemesrubmieR rof mialC ylhtnom a timbus ot seitirohtua doof loohcs eht eriuqer noitacudE fo tnemtrapeD ainrofilaC eht stneverP .smialc detadilosnoc rieht ot noitidda ni noitcidsiruj rieht rednu etis hcae rof stnedutS fo rebmuN eht gninimreteD morF laredeF niatreC ni gnitapicitraP ro rof elbigilE 2 SPINC eht ni tnemtsevni s’etatS eht morf stfieneb eht sezimixam ti taht erusne oT .3 smargorP laeM seitirohtua doof loohcs eht rof enilemit a hsilbatse dluohs noitacudE ,esabatad *)0102 rebotcO( 401‑0102 .tnemeriuqer eht htiw ylpmoc ot 1 ot lareneg yenrotta eht morf noinipo lagel a kees dluohs noissimmoC ehT .1 ,tcudnocsiM rehcaeT fo enilpicsiD ni syaleD etipseD gnilaitnederC rehcaeT no noissimmoC etageled yam eettimmoc eht hcihw ot tnetxe dna ytirohtua lagel eht enimreted toN saH secitcarP lanoisseforP fo noisiviD eht degella fo snoitagitsevni esolc ot ytirohtua yranoitercsid eht noisivid eht ot detnemelpmI ro ygetartS etauqedA na depoleveD ylpmoc ot spets yrassecen lla ekat dna ,weiver eettimmoc tuohtiw tcudnocsim tsniagA draugefaS lliW tahT sessecorP .ecivda s’lareneg yenrotta eht htiw sgolkcaB erutuF )1102 lirpA( 911‑0102 1 gnidrager ecivda lagel s’lareneg yenrotta eht deviecer sah noissimmoC eht ecnO .2 etageled yam )eettimmoc( slaitnederC fo eettimmoC eht hcihw ot tnetxe eht yrassecen lla ekatrednu dluohs noissimmoC eht ,noisivid eht ot serusolc esac eettimmoc eht sesac fo rebmun eht esaercni ot segnahc yrotutats dna larudecorp .htnom hcae weiver nac 1 dna gniniart eht edivorp dluohs )noisivid( secitcarP lanoisseforP fo noisiviD ehT .3 esac eht taht erusne ot ,dedeen spets rehto yna ekat dluohs dna ,thgisrevo ot deretne yltnetsisnoc dna ,etarucca ,etelpmoc si esabatad sti ni noitamrofni .noitamrofni tnemeganam esac elbailer fo laveirter eht rof wolla 1 fo stroper fo gnissecorp sti ni sessenkaew eht sserdda yletauqeda oT .4 sessecorp dna stroper s’tnemeganam tisiver dluohs noisivid eht ,tcudnocsim stroper eht taht erusne ot tcudnocsim fo snoitagitsevni eht gnieesrevo rof emit eht fo noitcuder etatilicaf ot noitamrofni etauqeda edivorp secitcarp dna .ssecorp weiver eht ni spets lacitirc mrofrep ot despale 1 etauqeda edivorp secitcarp dna stroper sti taht erusne dluohs noisivid ehT .5 stroper gnidnuorrus noitamrofni rof stseuqer tpmorp etatilicaf ot noitamrofni dna ,sloohcs ,struoc eht ,seicnega tnemecrofne wal morf tcudnocsim fo .slaudividni elbaegdelwonk 1 etauqeda edivorp secitcarp dna stroper sti taht erusne dluohs noisivid ehT .6 ni syaled rof snosaer eht fo gnidnatsrednu na etatilicaf ot noitamrofni eht weiver ot gnivah tuohtiw tcudnocsim fo stroper laudividni gnitagitsevni .sesac eht rof selfi repap NOITACUDE REHGIH 4 .sesnepxe noitacoler fo tnemesrubmier eht gninrevog ycilop sti nehtgnertS .2 hsilbatsE dna thgisrevO stI nehtgnertS ot sdeeN tI ytisrevinU etatS ainrofilaC fo stnuoma eht esolcsid ot rollecnahc eht eriuqer dluohs draob eht ,yllanoitiddA dna tnerruC gnitasnepmoC rof seiciloP retcirtS .sevitucexe gnimocni ot dereffo eb ot stnemesrubmier noitacoler seeyolpmE remroF *)7002 rebmevoN( 1.201‑7002 . . . egap txen no deunitnoc 24 California State Auditor Report 2012-041 January 2013 SRAEY FO REBMUN NOITADNEMMOCER SIHT NI DERAEPPA TROPER LAUNNA NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA 1 pleh ot dna ,ssecorp tegdub s’ytisrevinu eht ni ytilibatnuocca evorpmi pleh oT .3 evisnetxE sniatniaM ytisrevinU eht hguohtlA ainrofilaC fo ytisrevinU dluohs ytisrevinu eht ,noitatuper sti ot egamad riafnu fo ksir eht eziminim lanoitiddA edivorP dluohS tI ,sdroceR laicnaniF .ssecorp tegdub sti fo ycnerapsnart eht esaercni ot spets lanoitidda ekat fo gnidnatsrednU cilbuP evorpmI ot noitamrofnI esaercni ot stroffe sti eunitnoc dluohs tnediserP eht fo ecffiO eht ,yllacfiicepS snoitarepO stI lla ot srotartsinimda supmac dnoyeb ssecorp tegdub sti fo ycnerapsnart eht *)1102 yluJ( 501‑0102 ,elpmaxe roF .cilbup lareneg eht dna ,ytlucaf ,stneduts gnidulcni ,sredlohekats launna sti ot detaler noitamrofni ekam dluoc tnediserP eht fo ecffiO eht detaler dna srettel tegdub supmac launna sa hcus ,stnuoma tegdub supmac .etis beW sti no elbaliava ,stnemhcatta SECIVRES NAMUH DNA HTLAEH 5 lla edulcni dna stnialpmoc etagitsevni yltnetsisnoc secffio tcirtsid taht erusne oT .1 gnilggurtS sI noisiviD noitacfiitreC dna gnisneciL stI †secivreS htlaeH fo tnemtrapeD sti yfiralc dluohs secivreS htlaeH ,selfi tnialpmoc eht ni noitatnemucod tnaveler stnemeriuqeR thgisrevO laredeF dna etatS teeM ot rotinom yllacidoirep dna ,yrassecen sa gniniart edivorp ,serudecorp dna seicilop seitilicaF gnisruN dellikS rof .ecnailpmoc erusne ot ecnamrofrep ecffio tcirtsid )7002 lirpA( 601‑6002 5 tsujda ot §noitartsinimdA lennosreP fo tnemtrapeD eht htiw gnikrow redisnoC .2 etats rehto fo esoht htiw evititepmoc erom meht ekam ot ffats sti fo seiralas eht .setadidnac defiilauq ylralimis gnikees seicnega 4 tnerruc gnicrofne dna gnirotinom fo snaem elbisaef ylevitartsinimda na poleveD .1 gnilliB ni segnahC fo defiitoN hguohtlA secivreS eraC htlaeH fo tnemtrapeD .tnempiuqe lacidem rof serudecorp tnemesrubmier dna gnillib laC‑ideM lacideM elbaruD fo sredivorP ,stnemeriuqeR laC‑ideM degrahcrevO yltneuqerF tnempiuqE 4 sesserdda yletauqeda taht hcaorppa evitceffe‑tsoc a tnemelpmi dna ngiseD .2 )8002 enuJ( 221‑7002 ot tcejbus yllaitnetop era sredivorp lla taht serusne dna tnemyaprevo fo ksir eht .tidua na 2 dna tcerroc ot woh no kcabdeef htiw seitnuoc edivorp dluohs secivreS laicoS .6 ,smargorP pmatS dooF dna SKROWlaC eht roF secivreS laicoS fo tnemtrapeD .weiver siht gnirud stceted ti taht srorre tneverp dna ssenevitceffE‑tsoC fo stnemssessA skcaL tI ’seitnuoC evorpmI ot seitinutroppO sessiM stroffE duarfitnA *)9002 rebmevoN( 101‑9002 2 ti ,sredivorp ecivres lacol morf snalp deviecer sah secivreS ytinummoC ecnO .1 dellatS evaH seicnegA etatS dna laredeF yb syaleD secivreS ytinummoC fo tnemtrapeD tcefler yletarucca ot nalp etats sti ni stnemtsujda yrassecen yna ekam dluohs stnemevorpmI dna margorP noitazirehtaeW eht tnempoleveD dna detamitse eht dna ecnatsissa noitazirehtaew rof emoh rep stsoc egareva yrevoceR retsinimdA ylreporP ot dedeeN erA .margorp eht rednu dezirehtaew eb ot semoh fo rebmun sdnuF tcA )0102 yraurbeF( 2.911‑9002 1 ,snoitaulave mrofrep ot ffats defiilauq hguone evah lliw ti taht erusne oT .3 gninilmaertS :margorP tnemtimmoC redneffO xeS ‡htlaeH latneM fo tnemtrapeD wen a rof lavorppa niatbo ot stroffe sti eunitnoc dluohs htlaeH latneM yllauxeS laitnetoP gniyfitnedI rof ssecorP eht sevorppa §draoB lennosreP etatS eht fI .srotaulave rof noitacfiissalc noitisop ro yrassecennU ecudeR dluoW srotaderP tneloiV defiilauq tiurcer ot spets ekat dluohs htlaeH latneM ,noitacfiissalc wen eht kroW evitacilpuD sti eunitnoc dluohs htlaeH latneM ,yllanoitiddA .elbissop sa ylkciuq sa slaudividni *)1102 yluJ( 611‑0102 .snoitaulave tcudnoc ot stsigolohcysp gnitlusnoc sti niart ot stroffe NOITATILIBAHER DNA SNOITCERROC 3 dna rehcaet setacolla taht nalp gnffiats a poleved dluohs snoitcerroC .6 tI wollA dluoW tahT ataD esU dna kcarT ot sliaF tI snoitcerroC fo tnemtrapeD ainrofilaC sti fo sdeen margorp eht no desab noitutitsni hcae ta snoitisop rotcurtsni eganaM dna rotinoM ylevitceffE eroM ot noitatilibaheR dna .noitalupop etamni snoitarepO stI *)9002 rebmetpeS( 1.701‑9002 California State Auditor Report 2012-041 25 January 2013 SRAEY FO REBMUN NOITADNEMMOCER SIHT NI DERAEPPA TROPER LAUNNA NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA 2 edivorp ot dna ,sdeen lanoitutitsni steem gnffiats ydotsuc taht erusne oT .3 waL sekirtS eerhT eht rednU decnetneS setamnI snoitcerroC fo tnemtrapeD ainrofilaC ,erutuf eht ni nrae yeht taht evael fo tnuoma eht esu ot ytinutroppo eht ffats ytlaicepS gnivieceR setamnI fo rebmuN llamS a dna noitatilibaheR dna fo hcae tneserper yletarucca ot salumrof gnffiats sti etadpu dluohs snoitcerroC stsoC tnacfiingiS tneserpeR eraC htlaeH ro noitacav sa hcus ,krow ot elbaliavanu era ffats ydotsuc hcihw rof srotcaf eht *)0102 yaM( 2.701‑9002 deludehcs ylraluger rof ycilop a etaerc dluohs snoitcerroC ,noitidda nI .evael kcis .salumrof gnffiats eht ni desu atad eht fo sweiver 1 seicnega etats ,sdeen egaugnal ’stneutitsnoc rieht teem yeht taht erusne oT .1 etatS :tcA secivreS laugniliB errotalA‑yllamyD snoitcerroC fo tnemtrapeD ainrofilaC ’stneilc rieht troper dna ssessa yletarucca yeht taht niatrec ekam dluohs dna ,tcA eht htiW ylpmoC ylluF toN oD seicnegA noitatilibaheR dna osla dluohs seicnega etatS .draoB lennosreP etatS eht ot sdeen egaugnal riehT sserddA ot eroM oD dluoC stnemnrevoG lacoL elbaliava rehto redisnoc dna stluser yevrus egaugnal rieht yllamrof ezylana sdeeN ’stneilC etats ,rehtruF .seicneicfied gnffiats eurt rieht enimreted ot secruoser laugnilib )0102 rebmevoN( 601‑0102 taht slairetam nettirw eht yfitnedi ot serudecorp hsilbatse dluohs seicnega hcus taht erusne dna segaugnal rehto otni etalsnart ot meht seriuqer tcA eht ,yllaniF .stneilc PEL ’seicnega eht ot elbissecca edam ro detalsnart era slairetam woh gnibircsed snalp noitca evitcerroc deliated poleved dluohs seicnega etats nI .seicneicfied slairetam nettirw dna gnffiats rieht sserdda lliw yeht nehw dna lennosreP etatS eht ot snalp noitca evitcerroc rieht timbus dluohs yeht ,noitidda .snalp noitatnemelpmi llarevo ’seicnega etats eht fo trap sa draoB 1 tneverp dna tceted ot serudecorp poleved dluohs snoitcerroC dna htlaeH cilbuP .2 .gnittilps tcartnoc 1 detroper emitrevo taht yfirev dna ynapmoc mrala eht morf sgol ylhtnom niatbO .2 etatS yb seitivitcA reporpmI fo snoitagitsevnI snoitcerroC fo tnemtrapeD ainrofilaC .sgol eht htiw tnetsisnoc si snoitavitca mrala gnidliub ot gnidnopser rof tnetepmocnI na gningissaeR ni yaleD :seeyolpmE noitatilibaheR dna ot eruliaF ,secruoseR etatS fo esusiM ,tsirtaihcysP ,stnemucoD laitnedfinoC fo ytiruceS eht tcetorP snoitaloiV rehtO dna ,seeF noitartsigeR fo tfehT waL etatS fo *)1102 yraunaJ( 2‑0102I GNISUOH DNA NOITATROPSNART ,SSENISUB 2 yaled yltnacfiingis dluoc taht secnatsmucric ot ylevitceffe dnopser ot redro nI .2 esuaceB metsyS etelpmocnI na ro syaleD sksiR tI ytirohtuA liaR deepS‑hgiH dennalp stnemelpmi ti taht erusne dluohs ytirohtuA eht ,margorp eht tlah ro xaL dna ,thgisrevO kaeW ,gninnalP etauqedanI fo .ksir gniganam ot detaler snoitca tnemeganaM tcartnoC *)0102 lirpA( 601‑9002 2 dna evitartsinimda rof sdnuf fo tuo nur ton seod ti taht erusne oT .4 rof serutidnepxe kcart dluohs ytirohtuA eht ,ylerutamerp sksat noitcurtsnocerp dluohs osla tI .meht rof nalp gnidneps mret‑gnol a poleved dna seitivitca eseht yrevoceR htiw seilpmoc ti taht erusne ot smetsys dna serudecorp poleved .stnemeriuqer tcA 1 snartlaC ,margorp troppus eht ot detaler scirtem ecnamrofrep evorpmi oT .2 dluohS margorP troppuS yaltuO latipaC stI noitatropsnarT fo tnemtrapeD ainrofilaC eht gnitroper rof dohtem tnetsisnoc a ezicilbup dna ,esu ,esived dluohs enfieR ,secitcarP gnitegduB nehtgnertS .cilbup eht ot stroper rehto ni dna etis beW sti no oitar latipac‑ot‑troppus evorpmI dna ,serusaeM ecnamrofreP stI eht gnisu soitar latipac‑ot‑troppus tsap etaluclacer dluohs snartlaC ,rehtruF slortnoC lanretnI .sraey ssorca nosirapmoc rof wolla ot desived dohtem *)1102 lirpA( 221‑0102 1 snartlaC ,margorp troppus eht ot detaler scirtem ecnamrofrep evorpmi oT .3 esoht tsniaga ssergorp eht no troper ylcilbup dna—slaog poleved dluohs etatS—epyt tcejorp no desab ,oitar latipac‑ot‑troppus eht rof—slaog dna noitarepO yawhgiH etatS eht ro margorP tnemevorpmI noitatropsnarT .ezis tcejorp dna—margorP noitcetorP . . . egap txen no deunitnoc 26 California State Auditor Report 2012-041 January 2013 SRAEY FO REBMUN NOITADNEMMOCER SIHT NI DERAEPPA TROPER LAUNNA NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA SECRUOSER LARUTAN 2 noitaluger tnemelpmi ot stroffe sti htiw eunitnoc dluohs tnemtraped ehT .1 evitceffenI dna gnitsaceroF ni seicneicfieD gnilcyceR secruoseR fo tnemtrapeD tnemtraped eht htiw retsiger ot srotubirtsid egareveb eriuqer lliw taht segnahc egareveB eht deredniH evaH tnemeganaM yrevoceR dna ekam dna troper ot deerga sah ytitne rehtona fi tnemtraped eht yfiton ot dna margorP gnilcyceR reniatnoC .rotubirtsid egareveb taht fo flaheb no stnemyap *)0102 enuJ( 101‑0102 SECIVRES REMUSNOC DNA ETATS 2 ,sesahcrup erutuf rof etatS eht ot sgnivas eht sezimixam ti taht erusne oT .2 dna stcartnoC secruoS yllacigetartS regnoL oN tI secivreS lareneG fo tnemtrapeD gnicruos cigetarts gniyfitnedi rof serudecorp eht wollof dluohs secivreS lareneG sessenisuB llamS no tcapmI riehT dessessA toN saH si ti taht erusne oT .launam serudecorp s’UAI eht ni dedulcni seitinutroppo sesirpretnE ssenisuB nareteV delbasiD dna secivreS lareneG ,seitinutroppo gnicruos cigetarts wen gniyfitnedi ylevitceffe *)0102 yluJ( 411‑9002 smeti cfiiceps eht no atad etarucca dna evisneherpmoc niatbo ot krow dluohs gniniatbo rof snoitpo gnirolpxe gnidulcni ,gnisahcrup era seicnega etats taht erofereht dna smetsys ediw‑esirpretne evah ton od taht seicnega rof atad hcus .metsys tnemerucorPe eht fo ytilanoitcnuf lanoitidda eht gnisu eb ton dluow ot seicnega etats htiw krow dluohs secivreS lareneG ,atad hcus sniatbo ti litnU etatS eht hguorht sefiitnedi ti taht seirogetac rof sesahcrup deliated yfitnedi seitinutroppo elbaiv sa )SRPCS( metsyS noitartsigeR tnemerucorP dna tcartnoC ,atad SRPCS fo weiver sti no desab fi ,elpmaxe roF .gnicruos yllacigetarts rof doog a si seveileb ti taht yrogetac ralucitrap a sefiitnedi secivreS lareneG taht seicnega etats esoht htiw krow dluohs ti ,gnicruos cigetarts rof etadidnac sepyt eht enimreted ot yrogetac eht nihtiw sesahcrup tsom eht rof detnuocca sdoog fo sepyt eht ezylana rehtruf ot desahcrup sdoog cfiiceps fo emulov dna lanoitidda rof deen yna ssessa dluohs secivreS lareneG .ecruos yllacigetarts ot .eveihca ot stcepxe ti sgnivas eht no desab secruoser 2 eht enimreted ot yrassecen noitamrofni eht htiw srekam noisiced edivorp oT .3 etaulave dluohs secivreS lareneG ,gnicruos cigetarts fo stfieneb dna stsoc eurt ni noitapicitrap EBVD dna ssenisub llams no sah gnicruos cigetarts tcapmi yna sessenisub llams ot diap stnuoma dna dedrawa stcartnoc fo rebmun fo smret rof ,yllacfiicepS .decruos yllacigetarts gnieb seirogetac eht nihtiw sEBVD dna eht erapmoc dluohs secivreS lareneG ,decruos yllacigetarts erew taht sdoog erew yeht erofeb sEBVD dna sessenisub llams ot dedrawa stcartnoc fo rebmun erew yeht retfa stcartnoc hcus hguorht dedrawa esoht htiw decruos yllacigetarts lareneG yb dedrawa stcartnoc edulcni dluohs troffe sihT .decruos yllacigetarts .seicnega etats rehto dna secivreS 2 rof seitinutroppo gnidivorp ni pmar ffo eht fo ssenevitceffe eht etaulave oT .4 eht kcart dluohs secivreS lareneG ,noitapicitrap EBVD dna ssenisub llams eht hguorht drawa seicnega etats taht stcartnoc fo stnuoma rallod dna rebmun ediwetats yrotadnam rehto dna decruos yllacigetarts ni spmar ffo eht fo esu hcihw ot tnetxe eht redisnoc dluohs osla noitaulave ’secivreS lareneG .stcartnoc stcartnoc ediwetats morf tluser taht stfieneb yratenom eht stceffa pmar ffo na .rewop gnisahcrup s’etatS eht egarevel ot dengised California State Auditor Report 2012-041 27 January 2013 SRAEY FO REBMUN NOITADNEMMOCER SIHT NI DERAEPPA TROPER LAUNNA NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA 2 eht htiw ylpmoc srotcartnocbus EBVD dna ssenisub llams taht erusne oT .5 poleved dluohs secivreS lareneG ,stnemeriuqer noitcnuf lufesu yllaicremmoc mrofrep srotcartnocbus taht erusne ot woh no seicnega etats rof ecnadiug sesahcrup eht gnikam seicnega etats seveileb ti fi snoitcnuf lufesu yllaicremmoc ,noitidda nI .ksat siht rof elbisnopser eb dluohs stcartnoc ediwetats hguorht era seicnega etats rehtehw ,sisab elpmas a no ,rotinom dluohs secivreS lareneG egarevel dluoc secivreS lareneG .stnemeriuqer eseht htiw ecnailpmoc gnirusne srotcartnocbus taht erusne ot seicnega etats rehto htiw gnikrow yb stroffe sti ,did ycnega gnisahcrup eht ot secivres dna sdoog eht dedivorp evah ot gnimialc .seicnega etats eht gniciovni era yeht hcihw rof krow eht mrofrep ,tcaf ni 2 lareneG ,ecnailpmoc gnicirp fo gnirotinom sti fo ytirgetni eht evorpmi oT .6 stroper egasu taht erusne pleh ot serudecorp tnemelpmi dluohs secivreS taht seicnega etats eht yb diap secirp dna deviecer smeti lautca eht tcefler elpmas a tceles dluoc ti ,sisab cidoirep a no ,elpmaxe roF .smeti eht desahcrup seicnega etats gnisahcrup htiw krow dna stroper egasu eht morf sesahcrup fo eht htiw elicnocer detroper smeti fo ytitnauq dna secirp eht taht mrfinoc ot .rotcartnoc eht yb dettimbus seciovni TNEMPOLEVED ECROFKROW DNA ROBAL 1 seicnega etats ,sdeen egaugnal ’stneutitsnoc rieht teem yeht taht erusne oT .1 etatS :tcA secivreS laugniliB errotalA‑yllamyD tnemtrapeD tnempoleveD tnemyolpmE ’stneilc rieht troper dna ssessa yletarucca yeht taht niatrec ekam dluohs dna ,tcA eht htiW ylpmoC ylluF toN oD seicnegA osla dluohs seicnega etatS .draoB lennosreP etatS eht ot sdeen egaugnal riehT sserddA ot eroM oD dluoC stnemnrevoG lacoL elbaliava rehto redisnoc dna stluser yevrus egaugnal rieht yllamrof ezylana sdeeN ’stneilC etats ,rehtruF .seicneicfied gnffiats eurt rieht enimreted ot secruoser laugnilib )0102 rebmevoN( 601‑0102 taht slairetam nettirw eht yfitnedi ot serudecorp hsilbatse dluohs seicnega hcus taht erusne dna segaugnal rehto otni etalsnart ot meht seriuqer tcA eht ,yllaniF .stneilc PEL ’seicnega eht ot elbissecca edam ro detalsnart era slairetam woh gnibircsed snalp noitca evitcerroc deliated poleved dluohs seicnega etats nI .seicneicfied slairetam nettirw dna gnffiats rieht sserdda lliw yeht nehw dna lennosreP etatS eht ot snalp noitca evitcerroc rieht timbus dluohs yeht ,noitidda .snalp noitatnemelpmi llarevo ’seicnega etats eht fo trap sa draoB TNEMNREVOG LARENEG 1 seicnega etats ,sdeen egaugnal ’stneutitsnoc rieht teem yeht taht erusne oT .1 etatS :tcA secivreS laugniliB errotalA‑yllamyD erutlucirgA dna dooF fo tnemtrapeD ’stneilc rieht troper dna ssessa yletarucca yeht taht niatrec ekam dluohs dna ,tcA eht htiW ylpmoC ylluF toN oD seicnegA osla dluohs seicnega etatS .draoB lennosreP etatS eht ot sdeen egaugnal riehT sserddA ot eroM oD dluoC stnemnrevoG lacoL elbaliava rehto redisnoc dna stluser yevrus egaugnal rieht yllamrof ezylana sdeeN ’stneilC etats ,rehtruF .seicneicfied gnffiats eurt rieht enimreted ot secruoser laugnilib )0102 rebmevoN( 601‑0102 taht slairetam nettirw eht yfitnedi ot serudecorp hsilbatse dluohs seicnega hcus taht erusne dna segaugnal rehto otni etalsnart ot meht seriuqer tcA eht ,yllaniF .stneilc PEL ’seicnega eht ot elbissecca edam ro detalsnart era slairetam woh gnibircsed snalp noitca evitcerroc deliated poleved dluohs seicnega etats nI .seicneicfied slairetam nettirw dna gnffiats rieht sserdda lliw yeht nehw dna lennosreP etatS eht ot snalp noitca evitcerroc rieht timbus dluohs yeht ,noitidda .snalp noitatnemelpmi llarevo ’seicnega etats eht fo trap sa draoB 1 eht taht dna swal dnob htiw tnetsisnoc erew serutidnepxe taht erusne oT .3 fo stnemtrapeD ehT :sdnoB noitagilbO lareneG ecnaniF fo tnemtrapeD tcejorp eht nehw ot deerga semoctuo ro stfieneb dednetni eht deveihca tcejorp ot eroM oD dluohS ecnaniF dna secruoseR retaW erussa dna evorppa ro ,fo stidua tcudnoc dluohs ecnaniF ,dedrawa yllanigiro saw serutidnepxE dnoB fo thgisrevO riehT evorpmI nalP htworG cigetartS ,fo stidua niatbo seicnega rehto dna secruoseR retaW ,taht *)1102 yaM( 711‑0102 .serutidnepxe dnob . . . egap txen no deunitnoc 28 California State Auditor Report 2012-041 January 2013 SRAEY FO REBMUN NOITADNEMMOCER SIHT NI DERAEPPA TROPER LAUNNA NOITADNEMMOCER ETAD EUSSI DNA ,REBMUN ,ELTIT TROPER EETIDUA EVITUCEXE DNA ,LAICIDUJ ,EVITALSIGEL 3 no sucof denethgieh a gnidulcni ,seitilibisnopser sti teem nac ti taht erusne oT .1 larutcurtS dna lanoitarepO :setadnaM etatS ecffiO s’rellortnoC etatS niatbo ot ecnaniF htiw krow dluohs rellortnoC eht ,setadnam etats fo stidua stnemevorpmI detimiL dedleiY evaH segnahC .secruoser tneicffius stsoC gnillortnoC ni dna sessecorP gnitidepxE ni seitilibaiL dna 3 detadnaM sti ni snoitisop tnacav llfi ot stroffe sti esaercni dluohs rellortnoC ehT .2 )9002 rebotcO( 105‑9002 .uaeruB stiduA tsoC 1 dna roirepus otnemarcaS eht ,defiilauq era srotaidem SCF sti taht erusne oT .1 htoB :struoC roirepuS niraM dna otnemarcaS ,ainrofilaC fo truoC roirepuS htiw selfi lennosrep laicffio ’srotaidem tnerruc eht etadpu dluohs struoc ylimaf truoC ylimaF tahT erusnE ot deeN struoC otnemarcaS fo ytnuoC .noitamrofni gnissim yna evorpmI ,snoitacfiilauQ yrasseceN evaH seetnioppA dna ,serudecorP dna seiciloP evitartsinimdA seluR dna swaL htiW ylpmoC *)1102 yraunaJ( 901‑9002 1 ta stsoc etamitse dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .1 tcejorP tnemeganaM esaC ediwetatS ehT struoC eht fo ecffiO evitartsinimdA .stcejorp fo noitpecni eht rooP ot euD segnellahC tnacfiingiS secaF tnemeganaM tcejorP 1 etairporppa yolpme dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .2 *)1102 yraurbeF( 201‑0102 ,kcart ,tegdub yletairporppa ot ti wolla ot sloot tnemeganam tsoc dna tegdub .stsoc etamitse dna ,eganam 1 tsoc taht erusne dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .3 taht stsoc gnidulcni ,stsoc tnaveler lla edulcni dna etarucca era setamitse .rucni lliw struoc roirepus 1 taht stsoc esolcsid dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .4 .os od ylbanosaer nac ti tnetxe eht ot rucni ylekil lliw seititne rehto 1 tsoc etadpu dluohs COA eht ,stcejorp TI erutuf fo stsoc eganam retteb oT .5 .egnahc snoitpmussa tnacfiingis nehw dna sisab raluger a no setamitse 1 tnednepedni etairporppa eviecer stcejorp TI rojam erutuf taht erusne oT .01 dluohs COA eht ,tnemeganam tcejorp dna stcepsa lacinhcet revo thgisrevo siht erusne dna stcejorp eht fo gninnigeb eht ta secivres OPI dna V&VI niatbo dna secitcarp tseb swollof dna tuohguorht ecalp ni si thgisrevo tnednepedni .tcejorp eht fo ytixelpmoc dna ezis eht rof etairporppa sdradnats yrtsudni .2 elbaT ni dnuof eb nac ,detnemelpmi ylluf neeb ton evah hcihw ,tidua siht ot gniniatrep snoitadnemmocer rehtO * cilbuP fo tnemtrapeD eht dna secivreS eraC htlaeH fo tnemtrapeD eht—stnemtraped owt emaceb dna dezinagroer saw secivreS htlaeH fo tnemtrapeD eht ,7002 ,1 yluJ nO † .seitilicaf gnisrun delliks gnirotinom rof elbisnopser won si htlaeH cilbuP fo tnemtrapeD ehT .htlaeH .slatipsoH etatS fo tnemtrapeD wen eht emaceb htlaeH latneM fo tnemtrapeD ainrofilaC eht ,2102 ,1 yluJ fo sA ‡ .secruoseR namuH fo tnemtrapeD ainrofilaC eht etaerc ot noitartsinimdA lennosreP fo tnemtrapeD eht htiw denibmoc saw draoB lennosreP etatS eht ,2102 ,1 yluJ fo sA § California State Auditor Report 2012-041 29 January 2013 IMPLEMENTATION OF CHAPTER 452, STATUTES OF 2006 (SB 1452) The Accountability Act requires state agencies audited by the state auditor to provide updates on their implementation of audit recommendations. The state auditor’s longstanding practice, which is consistent with generally accepted government auditing standards, is to request audited state agencies to provide written updates on their implementation of audit recommendations 60 days, six months, and one year after the audit report’s public release date. As the state auditor implemented the Accountability Act, it retained these prescribed time frames as the intervals at which agencies must report back on their implementation of audit recommendations. As a courtesy, in May 2007, the state auditor notified all state agencies of their responsibilities under the Accountability Act and the state auditor’s plans for implementing these requirements. In September 2007 the state auditor provided written notice to relevant state agencies regarding recommendations issued since January 1, 2005, that were more than a year old and not fully implemented. The state auditor made this determination using the agencies’ one‑year responses. The state auditor requested that each of the affected agencies notify it as to whether the agency had fully implemented the recommendation, planned to begin or continue implementation within 90 days and the estimated date of completion, or did not intend to implement the recommendation and the reasons for making that decision. Following this process, on January 16, 2008, the state auditor published its first report on the status of recommendations that were more than a year old and not yet fully implemented. SIXTH ANNUAL REPORT In fall 2012 the state auditor provided written notice to state agencies regarding recommendations that were more than a year old and not fully implemented related to audits issued from November 2005 through October 2011. Table 1, which begins on page 3, shows recommendations that were not fully implemented as of the agencies’ latest responses for audits issued between November 2005 and October 2006. The recommendations shown in Table 1 will not be reassessed by the state auditor in subsequent reports because of the length of time these recommendations have been outstanding. Table 2, which appears on pages 5 through 22, summarizes and provides information on recommendations that the state auditor determined have not been fully implemented for audits issued between November 2006 and October 2011. Table 3, beginning on page 23, summarizes information on recommendations that have been fully implemented since last year’s report or since the agencies’ one‑year responses. Additional information on each recommendation is available at the state auditor’s Web site. The Web site includes each agency’s verbatim response as to the current status of outstanding recommendations. The Web site also includes the audit report and summary, the text of the recommendation, and the state auditor’s assessment of whether the agency has fully implemented the recommendation, based on the agency’s response, supporting documentation, and inquiries. 30 California State Auditor Report 2012-041 January 2013 cc: Members of the Legislature Office of the Lieutenant Governor Little Hoover Commission Department of Finance Attorney General State Controller State Treasurer Legislative Analyst Senate Office of Research California Research Bureau Capitol Press