Status of Recommendations

Recommendations Not Fully Implemented After One Year The Omnibus Audit Accountability Act of 2006 C O M M I T M E N T Y TIRGETNI January 2016 Report 2015-041 L E A D E R S H I P 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 California State Auditor’s Office at the following address: California State Auditor 621 Capitol Mall, Suite 1200 Sacramento, California 95814 916.445.0255 or TTY 916.445.0033 OR This report is also available on our Web site at 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, 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. For complaints of state employee misconduct, contact the California State Auditor’s Whistleblower Hotline: 1.800.952.5665. Elaine M. Howle State Auditor Doug Cordiner Chief Deputy January 14, 2016 2015-041 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 Department of Finance. This report notes that from November 2008 through October 2014, the state auditor issued 122 reports on audits and investigations of state agencies. In those reports, we made 1,488 recommendations and state agencies had fully implemented 1,129, or 76 percent, as of September 2015. After following up with those agencies that had outstanding recommendations, we determined that an additional 77 have been fully implemented and 282 remain outstanding. Similarly, the state auditor issued 21 reports to nonstate entities, such as counties or school districts. In those reports we made 405 recommendations and as of September 2015 the nonstate entities had implemented 351, or 87 percent of them. Of the remaining 54 recommendations, we determined that 18 have now been fully implemented while 36 remain outstanding. In addition to identifying which recommendations have and have not been fully implemented, the state auditor’s website contains written responses from each state agency explaining the status of each recommendation. For recommendations that have not been fully implemented, the website also provides agency responses regarding when or if these recommendations will be fully implemented. Our audit and investigative efforts bring the greatest returns when agencies act upon our findings and recommendations. For example, in June 2014 the state auditor reported that California universities must better protect students by doing more to prevent, respond to, and resolve incidents of sexual harassment and sexual violence. We reviewed four universities: two within the University of California system and two within the California State University system. We reported numerous concerns, including that the universities did not ensure that all faculty and staff were sufficiently trained on responding to and reporting incidents and that the universities must do more to appropriately educate students about sexual harassment and sexual violence. We also reported that the universities needed to improve their processes for responding to incidents and better informing students who file complaints of the status of the investigations and the eventual outcomes. When the universities do not have appropriate processes in place, they risk having their employees mishandle student reports of incidents of sexual harassment and sexual violence, and that students are not properly informed of what to do or what to expect if an incident occurs. By October 2015 the universities had fully implemented 52 of the 70 recommendations we directed to them. Although this is significant progress, the universities’ systemwide offices have yet to implement our recommendation that they conduct routine reviews of these issues at all of the universities within their systems. These efforts will help ensure that progress made at the four universities we reviewed extends to the other universities within their systems. If you would like more information 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 621 Capitol Mall, Suite 1200 Sacramento, CA 95814 916.445.0255 916.327.0019 fax www.auditor.ca.gov Blank page inserted for reproduction purposes only. California State Auditor Report 2015-041 v January 2016 Contents Introduction 1 Table 1 Recommendations More Than Five Years Old That Are Still Not Fully Implemented 5 Table 2 Recommendations More Than One Year Old That Are Still Not Fully Implemented 7 Table 3 Recommendations More Than One Year Old That Were Fully Implemented Since Last Year’s Report or the Entities’ One-Year Responses 45 Table 4 Recommendations More Than One Year Old Made to Nonstate Entities 53 vi California State Auditor Report 2015-041 January 2016 Blank page inserted for reproduction purposes only. California State Auditor Report 2015-041 1 January 2016 INTRODUCTION As required by the Omnibus Audit Accountability Act of 2006, 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 the entities we audited. RESULTS IN BRIEF State Entities From November 2008 through October 2014 the state auditor issued 122 reports that related to audits or investigations of state agencies. These reports were requested through the Joint Legislative Audit Committee, legislation, or as a result of an investigation.1 The state auditor made 1,488 recommendations to the audited state agencies in those reports.2 While the state agencies implemented many of the recommendations, the state auditor identified 359 recommendations made to 53 state agencies that had been outstanding at least one year and not fully implemented. Of the 359 recommendations, 241 appeared in last year’s report. Based on recent responses obtained from state agencies, the state auditor determined that 282 of the 359 recommendations remain not fully implemented. Nonstate Entities From January 2011 through October 2014 the state auditor issued 21 reports that included nonstate entities, and made 405 recommendations to these entities. While these nonstate entities implemented many of the recommendations, the state auditor identified 54 recommendations made to 20 of these entities that had been outstanding at least one year and not fully implemented. Of the 54 recommendations, 32 appeared in last year’s report. Further, based on recent responses obtained from these nonstate entities, the state auditor determined that 36 of the 54 recommendations remain not fully implemented. Importance of Implementing Recommendations Our audit and investigative efforts bring the greatest returns when agencies act upon our findings and recommendations. For example, in June 2014 the state auditor reported that California universities must better protect students by doing more to prevent, respond to, and resolve incidents of sexual harassment and sexual violence. We reviewed four universities: two within the University of California system and two within the California State University system. We reported numerous concerns, including that the universities did not ensure that all faculty and staff were sufficiently trained on responding to and reporting incidents and that the universities must do more to appropriately educate 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 those audits are followed up and reported on each year in the state auditor’s annual reports on California’s Internal Control and State and Federal Compliance. As of January 1, 2010, the state auditor began reporting as required on the status of recommendations made in investigative reports. The state auditor initiated the investigations in response to whistleblower complaints or other information suggesting improper governmental activities. 2 Excludes recommendations for legislative changes. We report such recommendations in a separate report to the Legislature. 2 California State Auditor Report 2015-041 January 2016 students about sexual harassment and sexual violence. We also reported that the universities needed to improve their processes for responding to incidents, and better informing students who file complaints of the status of the investigations and the eventual outcomes. When the universities do not have appropriate processes in place, they risk having their employees mishandle student reports of incidents of sexual harassment and sexual violence, and that students are not properly informed of what to do or what to expect if an incident occurs. By October 2015 the universities had fully implemented 52 of the 70 recommendations we directed to them. Although this is significant progress, the universities’ systemwide offices have yet to implement our recommendation that they conduct routine reviews of these issues at all of the universities within their systems. These efforts will help ensure that progress made at the four universities we reviewed extend to the other universities within their systems. The tables beginning on page 5 summarize and provide information on recommendations issued between November 2008 and October 2014. Table 1 shows recommendations more than five years old that were not fully implemented as of the agencies’ latest responses. Because the recommendations shown in Table 1 are from audits issued between November 2008 and October 2009 and are more than five years old, they will not be reassessed by the state auditor in subsequent reports. Table 2, beginning on page 7, summarizes recommendations that have not been fully implemented for audits and investigations issued between November 2009 and October 2014. As indicated on table 2, the state auditor did not always agree with agency assertions that certain recommendations were fully implemented. Two columns in table 2 provide the state auditor’s reason for disagreement. Table 3, beginning on page 45, summarizes recommendations that have been fully implemented since last year’s report or the agencies’ one-year responses. Finally, Table 4, beginning on page 53, summarizes all recommendations more than one year old made to nonstate entities and their current implementation status. The symbol appears in the tables next to the audit number whenever an audit appearing in this report has recommendations to more than one agency. Please refer to the index on page 3. California State Auditor Report 2015-041 3 January 2016 Index Reference for Reports Featuring Recommendations to Multiple Entities REPORT NAME OF ENTITY State Entities With Recommendations—Included in Tables 2 and 3 A 2009-107.2 California Correctional Health Care Services, California Department of Corrections and Rehabilitation B 2010-116 California Department of Corrections and Rehabilitation, Department of State Hospitals C 2010-117 Department of Finance, Department of Water Resources D 2011-111 California Workforce Development Board, Employment Development Department E 2011-120 California Department of Transportation, Department of General Services F 2012-105 California Department of Public Health, California Department of Social Services G 2012-107 California Department of Developmental Services, California Department of Public Health H 2012-110 California Department of Motor Vehicles, California Natural Resources Agency, California Office of Emergency Services, California Department of Parks and Recreation I 2012-117 Department of Consumer Affairs, California State Athletic Commission J 2012-603 California State Controller's Office, California Department of Human Resources, California Science Center K 2013-109 California Public Utilities Commission, Office of Ratepayer Advocates L 2013-124 University of California, Berkeley; California State University; California State University, Chico; University of California, Los Angeles; San Diego State University; University of California M 2014-108 State Board of Equalization, Department of General Services N I2010-1045 California Correctional Health Care Services, California Department of Corrections and Rehabilitation Nonstate Entities With Recommendations—Included in Table 4 O 2010-036 Counties of Humboldt, Riverside, San Diego, Santa Barbara, and Shasta P 2013-036 Counties of Butte, Riverside, and San Diego Q 2013-116 Los Angeles County, Los Angeles Emergency Medical Services Agency R 2013-126 California Water Service Company, Quartz Hill Water District State and Nonstate Entities with Recommendations— Included in Tables 2, 3, and 4 S 2012-108 Department of Education, Los Angeles Unified School District, Sacramento City Unified School District T 2012-122 California Department of Health Care Services, California Mental Health Planning Council, Mental Health Services Oversight and Accountability Commission, Santa Clara County Mental Health Department U 2013-046 Department of Education, Los Banos Unified School District V 2013-110 California Department of Social Services, City and County of San Francisco Human Services Agency 4 California State Auditor Report 2015-041 January 2016 Blank page inserted for reproduction purposes only. California State Auditor Report 2015-041 5 January 2016 Table 1 Recommendations More Than Five Years Old That Are Still Not Fully Implemented (Reports Issued Between November 2008 and October 2009) NUMBER OF YEARS RECOMMENDATION APPEARED IN THIS ESTIMATED DATE REPORT TITLE, NUMBER, AND ISSUE DATE RECOMMENDATION REPORT OF COMPLETION HEALTH AND HUMAN SERVICES California Department of Health Care Services Departments of Health Care Services and 1. To comply with requirements in the State Administrative Manual, 6 Will Not Public Health: Their Actions Reveal Flaws in the Health Care Services should refrain from funding permanent Implement State’s Oversight of the California Constitution’s full-time employees with the State’s funding mechanism for Implied Civil Service Mandate and in the temporary-help positions. Departments’ Contracting for Information Technology Services 2. To readily identify active IT and other contracts, Health Care Services 6 Will Not 2009-103 (September 2009) should either revise its existing contract database or develop and Implement implement a new contract database. Department of State Hospitals* High Risk Update—State Overtime Costs: 3. To ensure that all overtime hours worked are necessary, and to protect 6 September 2015 A Variety of Factors Resulted in Significant the health and safety of its employees and patients, Mental Health Overtime Costs at the Departments of Mental should implement the Legislative Analyst’s suggestion of hiring Health and Developmental Services an independent consultant to evaluate the current staffing model 2009-608 (October 2009) for Mental Health’s hospitals. The staffing levels at Mental Health should then be adjusted, depending on the outcome of the consultant’s evaluation. CORRECTIONS AND REHABILITATION California Department of Corrections and Rehabilitation California Department of Corrections and 1. To help it assess the effect of policy changes and manage operations 6 † Rehabilitation: It Fails to Track and Use Data in a cost-effective manner, Corrections should do the following: That Would Allow It to More Effectively Monitor • Ensure that its new data system will address its current lack of and Manage Its Operations data available for statewide analysis, specifically data related to 2009-107.1 (September 2009) identifying the custody staffing cost by inmate characteristics such as security level, age, and custody designation. • If implementation of its new system continues to be delayed, or if Corrections determines that the new system will not effectively replace the current assignment and scheduling systems used by the institutions, it should improve its existing data related to custody staffing levels and use the data to identify the related costs of various inmate populations. 5. To more closely align its operations with state law and its own policy, 6 † make certain that inmates are provided with an adequate level of supervision, and protect the health and safety of employees and inmates, Corrections should encourage the Department of Personnel Administration‡ to negotiate a reduction in the amount of voluntary overtime a correctional officer is allowed to work in future collective bargaining unit agreements, in order to reduce the likelihood that involuntary overtime will cause them to work more than 80 hours of overtime in total during a month. 6. To more closely align its operations with state law and its own 6 † policy, make certain that inmates are provided with an adequate level of supervision, and protect the health and safety of employees and inmates, Corrections should better ensure that it prevents the instances in which correctional officers work beyond the voluntary overtime limit in a pay period. 8. To ensure that it can determine whether it is in compliance with 6 † state law and can measure the efficacy of its programs in reducing recidivism, Corrections should track, maintain, and use historical program assignment and waiting list data by inmate. continued on next page . . . 6 California State Auditor Report 2015-041 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN THIS ESTIMATED DATE REPORT TITLE, NUMBER, AND ISSUE DATE RECOMMENDATION REPORT OF COMPLETION GOVERNMENT OPERATIONS Victim Compensation and Government Claims Board, California Victim Compensation and Government Claims 1. To ensure that it maximizes its use of CaRES, the board should address 6 Fall 2016 Board: It Has Begun Improving the Victim the structural and operational flaws that prevent identification of Compensation Program, but More Remains erroneous information and implement edit checks and other system to Be Done controls sufficient to identify errors. 2008-113 (December 2008) GENERAL GOVERNMENT California Department of Veterans Affairs California Department of Veterans Affairs: 1. To ensure that it has the information necessary to track progress in 5§ July 2016 Although It Has Begun to Increase Its Outreach increasing veterans’ participation in C&P benefits, and to identify Efforts and to Coordinate With Other Entities, where and how best to focus its outreach and coordination efforts, It Needs to Improve Its Strategic Planning Veterans Services should require the CVSOs to submit information on Process, and Its CalVet Home Loan Program Is the number of claims filed for C&P benefits and information on their Not Designed to Address the Housing Needs of outreach activities. Some Veterans 2009-108 (October 2009) 2. As Veterans Services expands its efforts to increase veterans’ 5§ December 2015 participation in C&P benefits, it should use veterans’ demographic information, such as that available through the U.S. Census Bureau, and the information it plans to obtain from the CVSOs using its SAIM system, to focus its outreach and coordination efforts on those counties with the highest potential for increasing the State’s rate of participation in C&P benefits. 3. Veterans Services should continue its efforts to pursue the SAIM 5§ December 2015 system to enable it to monitor the quantity and quality of claims processed by the CVSOs, and ensure it meets legal requirements regarding auditing CVSO workload reports and verifying the appropriateness of college fee waivers. To the extent that Veterans Services is unsuccessful in implementing the SAIM system, the department will need to develop other avenues by which to meet its legal requirements. * As of July 1, 2012, the California Department of Mental Health became the Department of State Hospitals. † Contrary to the California State Auditor’s determination, the auditee believes it has fully implemented the recommendation. ‡ As of July 1, 2012, the State Personnel Board was combined with the Department of Personnel Administration to create the California Department of Human Resources. § The status of these recommendations changed from fully implemented to not fully implemented as a result of our follow‑up Audit Report 2015‑505 issued during 2015. California State Auditor Report 2015-041 7 January 2016 Table 2 Recommendations More Than One Year Old That Are Still Not Fully Implemented (Reports Issued Between November 2009 and October 2014) STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION K THRU 12 EDUCATION Department of Education California Department of 2. To demonstrate its willingness to fairly evaluate 2 Will Not Education: Despite Some regional expenditures, Education should allow Implement Improvements, Oversight San Joaquin to reimburse its general fund for the of the Migrant Education vehicle purchase Education incorrectly disallowed. Program Remains Inadequate 2012-044 (February 2013)* 3. To improve its understanding of regional 2 †   expenditures, Education should increase the level of detail required in its quarterly expenditure reports. The level of detail should allow Education to select expenditures for review. 4. For regions that have not recently received a federal 2 †   monitoring review, Education should use the detailed expenditure reports to select a sample of expenditures, request supporting documentation from the regions, and then review the expenditures to determine if they meet applicable federal and state criteria. 5. As part of the reviews based on quarterly reports, 2 †   Education should verify that regions are using the appropriate accounting codes to classify their expenditures. 11. Once it has addressed the underlying issues 2 †  with regional accounting, provided direction to regions about which expenditures it will consider administrative, and obtained accurate expenditure data, Education should review its administrative cost goal to ensure that this goal is reasonable given the requirements of the migrant program. 12. To address past federal findings that are not 2 †  yet resolved, Education should respond as recommended in Appendix B of this report. 13. To determine if the statewide migrant education 2 December program is effective, Education should finalize 2015 its current evaluation of the program and begin developing the capacity to produce a more robust annual evaluation of the program. 14. To address a lack of detailed migrant program 2 June 2016 service and outcome data, Education should either expand the capabilities of its existing statewide databases or implement additional systems that would allow regions to capture more detailed data about migrant students. School Safety and 17. To provide stronger leadership with respect 2 †  Nondiscrimination Laws: Most to school safety and nondiscrimination laws, S Local Educational Agencies Do Education, with direction from the superintendent Not Evaluate the Effectiveness of public instruction, should prioritize the of Their Programs, and review of parent, student, guardian, or interested the State Should Exercise party appeals to ensure that the EO office follows Stronger Leadership state regulations by processing appeals more 2012-108 (August 2013) promptly, notifying LEAs of when appeals are filed, and obtaining the investigation files and other documents when reviewing complaint appeals. continued on next page . . . 8 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 19. To provide stronger leadership with respect 2 Will Not to school safety and nondiscrimination laws, Implement Education, with direction from the superintendent of public instruction, should use data from the kids survey and reported suspensions and expulsions to evaluate the levels of discrimination, harassment, intimidation, and bullying students encounter and to determine the effectiveness of its own and the LEAs’ efforts, and report the results to the Legislature by August 1, 2014. 21. To provide stronger leadership with respect 2 †  to school safety and nondiscrimination laws, Education, with direction from the superintendent of public instruction, should within the next six months and annually thereafter, update and replace the resources on its Web site to provide more relevant information on best practices, such as preventing and responding to incidents related to a protected characteristic or that occur through cyberbullying, the U.S. DOE report on state bullying legislation, and best practices in other states, such as the Massachusetts law on LEA staff training requirements. California Commission on Teacher Credentialing Commission on Teacher 1. To make its strategic plan a more useful mechanism 1 Unknown Credentialing— for accomplishing its mission, the Commission on Follow-Up Review Teacher Credentialing (commission) should ensure 2014-502 (July 2014) that, to the extent possible, its goals have timelines and are measurable. Further, the commission should periodically evaluate and track its progress towards meeting its goals. HIGHER EDUCATION University of California, Berkeley Sexual Harassment and Sexual 8. To help ensure that university faculty and staff do 1 January 2016 Violence: California not mishandle student reports of incidents, all L Universities Must Better faculty and staff should receive training annually, Protect Students by Doing consistent with their role, on their obligations in More to Prevent, Respond to, responding to and reporting incidents of sexual and Resolve Incidents harassment and sexual violence. 2013-124 (June 2014)* 20. All universities should provide their education on 1 January 2016 sexual harassment and sexual violence to incoming students as close as possible to when they arrive on campus but no later than the first few weeks of their first semester or quarter. Further, universities should provide periodic refresher educational programs, at least annually, to all students on campus to ensure that they are aware of how to handle and report incidents of sexual harassment and sexual violence. 24. All universities should provide supplemental 1 †  training on sexual harassment and sexual violence, including sexual assault, for all student athletes on an annual basis. Further, the universities should provide supplemental training on sexual harassment and sexual violence, including rape awareness, to all student members of fraternities and sororities on an annual basis. The universities should also determine which student organizations participate in activities that may place students at risk and ensure that they receive annual, supplemental training on sexual harassment and sexual violence, including rape awareness. Each of the trainings should be focused on situations the members of the respective student groups may encounter. California State Auditor Report 2015-041 9 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 58. All universities should ensure that the differences 1 January 2016 between an informal or early resolution process and a formal investigation process are clearly explained to ensure that students know what to expect from each process. Further, they should explain that students whose cases are being handled under an informal or early resolution process have the right to move to a formal process at any time. 70. To identify ways to better serve their students, all 1 January 2016 universities should create a summary of student incidents of sexual harassment and sexual violence reported to the various departments on campus. Each university should evaluate its summary data to identify trends specific to the demographics, as well as the timing, location, and frequency of incidents, to better inform its strategies to protect students and direct its outreach efforts. California State University Sexual Harassment and 4. The Office of the Chancellor should direct all of 1 November Sexual Violence: California the universities within the CSU system to comply 2015 L Universities Must Better with the recommendations in this audit report. Protect Students by Doing Also, to ensure that its universities are complying More to Prevent, Respond to, with Title IX requirements, the Office of the and Resolve Incidents Chancellor should conduct routine Title IX reviews. 2013-124 (June 2014)* When conducting these compliance reviews, the Office of the Chancellor should determine whether universities have implemented this report’s recommendations. California State University’s 4. Within six months of the date the Legislature 1 March 2016 Extended Education: It Is clarifies its intent regarding California Education Unclear Whether Supplanting Code, Section 89708, the Chancellor’s Office should Occurred, and Campuses Did develop and issue final guidance to campuses Not Always Document Their regarding supplanting, including identifying Adherence to Laws, Policies, appropriate oversight mechanisms for ensuring and Procedures campuses’ compliance with this law. 2012-113 (December 2014)* California State University, Chico Sexual Harassment and 18. All universities should provide their education on 1 June 2016 Sexual Violence: California sexual harassment and sexual violence to incoming L Universities Must Better students as close as possible to when they arrive Protect Students by Doing on campus but no later than the first few weeks of More to Prevent, Respond to, their first semester or quarter. Further, universities and Resolve Incidents should provide periodic refresher educational 2013-124 (June 2014)* programs, at least annually, to all students on campus to ensure that they are aware of how to handle and report incidents of sexual harassment and sexual violence. 68. To identify ways to better serve their students, all 1 December universities should create a summary of student 2015 incidents of sexual harassment and sexual violence reported to the various departments on campus. Each university should evaluate its summary data to identify trends specific to the demographics, as well as the timing, location, and frequency of incidents, to better inform its strategies to protect students and direct its outreach efforts. continued on next page . . . 10 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION California Community Colleges Chancellor’s Office California Community College 1. To ensure that colleges receive consistent and fair 1 Unknown Accreditation: Colleges treatment and are able to address deficiencies, Are Treated Inconsistently the chancellor’s office should work with the and Opportunities Exist community colleges and request clearer guidance for Improvement in the from the commission regarding what actions Accreditation Process would allow for the full two-year period in which 2013-123 (June 2014) to remediate concerns and what actions would constitute good cause for extending the time an institution has to address deficiencies beyond two years. In doing so, the chancellor’s office should also encourage the commission to specify in its policies those scenarios under which it would exercise the good cause exception so that institutions would have a better understanding of when they might reasonably expect additional time to address deficiencies. 2. To ensure that community colleges and the public 1 Unknown are fully informed regarding the accreditation process, the chancellor’s office should assist community colleges in communicating their concerns to the commission regarding its transparency and in developing proposals for improving the commission’s transparency policies and practices. The chancellor’s office should also encourage the commission to publish policies describing the role of its staff in the commission’s decision-making processes. 3. To make certain that institutions receive fair 1 Unknown treatment in appealing decisions that terminate their accreditation, the chancellor’s office should work with the community colleges to advocate that the commission change certain aspects of its appeal process. Specifically, in keeping with the spirit of accreditation, when institutions have taken steps to correct deficiencies that led to the decision to terminate accreditation, the institutions should be allowed to have information on those corrections heard as evidence in their appeal. Further, the commission president’s involvement in selecting the appeal panel’s counsel should be revisited. 4. To strengthen institutions’ understanding of 1 Unknown what they must do to comply with standards, and to provide them with the opportunity to address certain issues that could jeopardize their compliance, the chancellor’s office, in collaboration with the community colleges, should encourage the commission to develop formal opportunities for institutions to communicate with and receive feedback from the commission on institutional self-studies and other reports before a formal evaluation takes place. In doing so, the chancellor’s office should consider the practices of other regional accreditors and identify those that would best meet the needs of California’s community colleges. California State Auditor Report 2015-041 11 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 5. Community colleges, as members of the 1 Unknown commission, should communicate their concerns about and ideas for improvement of training on the accreditation process to the commission. To provide assurance to colleges that they may suggest this information freely, the chancellor’s office should coordinate communication between the commission and the colleges. Further, in order to build collegial relationships, engage new people in the accreditation process, and extend additional training to those already involved in accreditation, the chancellor’s office should encourage the commission to develop an annual conference focused on accreditation and oversight. 7. To allow colleges flexibility in choosing an 1 Unknown accreditor, the chancellor’s office should identify other accreditors who are able to accredit California community colleges or who would be willing to change their scopes to do so. 8. To allow colleges flexibility in choosing an 1 Unknown accreditor, the chancellor’s office should assess the potential costs, risks, and feasibility of creating a new independent accreditor. University of California, Los Angeles Sexual Harassment and Sexual 9. To help ensure that university faculty and staff do 1 April 2016 L Violence: California not mishandle student reports of incidents, all Universities Must Better faculty and staff should receive training annually, Protect Students by Doing consistent with their role, on their obligations in More to Prevent, Respond to, responding to and reporting incidents of sexual and Resolve Incidents harassment and sexual violence. 2013-124 (June 2014)* 21. All universities should provide their education on 1 June 2016 sexual harassment and sexual violence to incoming students as close as possible to when they arrive on campus but no later than the first few weeks of their first semester or quarter. Further, universities should provide periodic refresher educational programs, at least annually, to all students on campus to ensure that they are aware of how to handle and report incidents of sexual harassment and sexual violence. 25. All universities should provide supplemental 1 December training on sexual harassment and sexual violence, 2015 including sexual assault, for all student athletes on an annual basis. Further, the universities should provide supplemental training on sexual harassment and sexual violence, including rape awareness, to all student members of fraternities and sororities on an annual basis. The universities should also determine which student organizations participate in activities that may place students at risk and ensure that they receive annual, supplemental training on sexual harassment and sexual violence, including rape awareness. Each of the trainings should be focused on situations the members of the respective student groups may encounter. 59. All universities should ensure that the differences 1 January 2016 between an informal or early resolution process and a formal investigation process are clearly explained to ensure that students know what to expect from each process. Further, they should explain that students whose cases are being handled under an informal or early resolution process have the right to move to a formal process at any time. continued on next page . . . 12 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 71. To identify ways to better serve their students, all 1 November universities should create a summary of student 2015 incidents of sexual harassment and sexual violence reported to the various departments on campus. Each university should evaluate its summary data to identify trends specific to the demographics, as well as the timing, location, and frequency of incidents, to better inform its strategies to protect students and direct its outreach efforts. San Diego State University Sexual Harassment and Sexual 7. To help ensure that university faculty and staff do 1 February 2016 Violence: California not mishandle student reports of incidents, all L Universities Must Better faculty and staff should receive training annually, Protect Students by Doing consistent with their role, on their obligations in More to Prevent, Respond to, responding to and reporting incidents of sexual and Resolve Incidents harassment and sexual violence. 2013-124 (June 2014)* 19. All universities should provide their education on 1 January 2016 sexual harassment and sexual violence to incoming students as close as possible to when they arrive on campus but no later than the first few weeks of their first semester or quarter. Further, universities should provide periodic refresher educational programs, at least annually, to all students on campus to ensure that they are aware of how to handle and report incidents of sexual harassment and sexual violence. 69. To identify ways to better serve their students, all 1 February 2016 universities should create a summary of student incidents of sexual harassment and sexual violence reported to the various departments on campus. Each university should evaluate its summary data to identify trends specific to the demographics, as well as the timing, location, and frequency of incidents, to better inform its strategies to protect students and direct its outreach efforts. University of California University of California: 1. To address the variations in per student funding 4 June 2018 Although the University of its campuses, the university should complete Maintains Extensive Financial its reexamination of the base budgets to the Records, It Should Provide campuses and implement appropriate changes to Additional Information to its budget process. As part of its reexamination of Improve Public Understanding the base budget, it should: of Its Operations • Identify the amount of general funds and 2010-105 (July 2011)* tuition budget revenues that each campus receives for specific types of students (such as undergraduate, graduate, and health sciences) and explain any differences in the amount provided per student among the campuses. • Consider factors such as specific research and public service programs at each campus, the higher level of funding provided to health sciences students, historical funding methods that favored graduate students, historical and anticipated future variations in enrollment growth funding, and any other factors applied consistently across campuses. • After accounting for the factors mentioned above, address any remaining variations in campus funding over a specified period of time. • Make the results of its reexamination and any related implementation plan available to stakeholders, including the general public. 8. To ensure that campuses do not inappropriately use 4 Will Not revenues generated from student fees imposed by Implement referenda, the university should ensure that it, the regents, and the campuses do not expand the uses for such revenues beyond those stated in the referenda. California State Auditor Report 2015-041 13 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION University of California, Office 23. To address the improper acts we identified, the 3 Unknown of the President: Waste of university should collect $1,802 from the official for State Funds the wasteful expenses he claimed for lodging and I2012-1, Case I2010-1022 meals during his trip to England, the expenses he (December 2012)*‡ incurred within the vicinity of his headquarters, and the business meal expenses. 27. The university should revise policies to establish 3 Unknown defined maximum limits for the reimbursement of domestic lodging costs and establish controls that allow for exceptions to the limits under specific circumstances only. Sexual Harassment and Sexual 5. The Office of the President should direct all of the 1 Unknown L Violence: California universities within the UC system to comply with Universities Must Better the recommendations in this audit report. Also, Protect Students by Doing to ensure that its universities are complying with More to Prevent, Respond to, Title IX requirements, the Office of the President and Resolve Incidents should conduct routine Title IX reviews. When 2013-124 (June 2014)* conducting these compliance reviews, the Office of the President should determine whether universities have implemented this report’s recommendations. 49. The Office of the President should clarify in the 1 January 2016 UC policies that a complainant must have and be informed about the right to end the early resolution process at any time and request that his or her complaint be handled under the university’s formal process. 51. The Office of the President should clarify in the 1 January 2016 UC policies that if university officials approve an extension to an investigative timeline, the extension should be restricted to a single extension of no more than 30 days, except in limited circumstances that are beyond the university’s control. HEALTH AND HUMAN SERVICES Covered California New High Risk Entity: Covered 2. To comply with federal requirements, Covered 2 § California Appears Ready California should develop a plan and procedures for to Operate California’s First monitoring, recertification, and decertification of Statewide Health Insurance qualified health plans. Exchange, but Critical Work and Some Concerns Remain 3. To ensure the success of its outreach effort, 2 § 2013-602 (July 2013) Covered California should track the effect on enrollment figures of its planned outreach and marketing activities and of its assister program. 4. To ensure financial sustainability, Covered California 2 § should conduct regular reviews of enrollment, costs, and revenue and make prompt adjustments to its financial sustainability plan as necessary. California Department of Developmental Services Department of 1. To ensure that consumers receive high-quality, 5 Will Not Developmental Services: A cost-effective services that meet the goals of their Implement More Uniform and Transparent individual development plans (IPPs) consistent Procurement and with state law, Developmental Services should Rate-Setting Process require the regional centers to document the basis Would Improve the of any IPP-related vendor selection and specify Cost-Effectiveness of Regional Centers which comparable vendors (when available) were evaluated. 2009-118 (August 2010) continued on next page . . . 14 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 2. To ensure that consumers receive high-quality, 5 Will Not cost-effective services that meet the goals of their Implement IPPs consistent with state law, Developmental Services should review a representative sample of this documentation as part of its biennial waiver reviews or fiscal audits to ensure that regional centers are complying with state law—and particularly with the July 2009 amendment requiring selection of the least costly available provider of comparable service. Developmental Centers: 3. To ensure adequate guidance to OPS personnel, 2 June 2016 G Poor-Quality Investigations, once the department has amended OPS’s policies Outdated Policies, Leadership and procedures to reflect the recommendations and Staffing Problems, and we have included here, the department and OPS Untimely Licensing Reviews should place a high priority on completing and Put Residents at Risk implementing its planned updates to the OPS 2012-107 (July 2013)* policy and procedure manual. 11. To minimize the need for overtime, the department 2 June 2016 should reassess its minimum staffing requirements, hire a sufficient number of employees to cover these requirements, and examine its employee scheduling processes. 13. The department should create specific measurable 2 June 2016 goals for OPS that include existing and new measures associated with each one, such as staffing, overtime, and the timely completion of investigations. In addition, the department should perform a regular review of the quality of OPS’s activities and investigations to achieve those goals. The department should track progress in quality measures over time and adjust its training plans to increase OPS law enforcement personnel’s skill and compliance with established policies and procedures. California Department of Health Care Services Department of Health 2. To ensure that Medi-Cal recipients receive timely 5 Will Not Care Services: It Needs to access to prescribed drugs, Health Care Services Implement Streamline Medi-Cal Treatment should abolish its policy of responding to drug Authorizations and Respond TARs by the end of the next business day and to Authorization Requests should instead ensure that prior-authorization Within Legal Time Limits requests to dispense drugs are processed within 2009-112 (May 2010) the legally mandated 24-hour period. Alternatively, it should seek formal authorization from CMS to deviate from the 24-hour requirement, and should seek a similar modification to state law. In addition, Health Care Services should begin recording the actual time it receives paper TARs so that it can begin to measure accurately its processing times. 3. To ensure that Medi-Cal recipients are receiving 5 Will Not timely medical services from providers, Health Care Implement Services should start tracking prior-authorization medical TARs separately and should ensure that such TARs are processed within an average of five working days. Although state law and regulations specifically require prior authorization for certain medical services, Health Care Services generally does not require prior authorizations in practice. Consequently, Health Care Services should seek legislation to update existing laws and amend its regulations to render them consistent with its TAR practices. California State Auditor Report 2015-041 15 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION Department of Public 1. To the extent that Public Health continues to fund 5 Will Not Health: It Faces Significant its various contracts, it should establish clearer Implement Fiscal Challenges and expectations with its contractors concerning how Lacks Transparency in Its much money is to be spent directly on the different Administration of the Every aspects of the EWC program and should monitor Woman Counts Program spending to confirm that these expectations are 2010-103R (July 2010)II being met. 2. To ensure better public transparency and 5 2016 accountability for how the EWC program is administered, Public Health should comply with state law to develop regulations, based on input from the public and interested parties, that will direct how Public Health administers the EWC program. At a minimum, such regulations should define the eligibility criteria for women seeking access to EWC screening services. Intellectual Property: An 4. Caltrans, the Energy Commission, Food and 3 2016 Effective Policy Would Educate Agriculture, and Health Care Services should State Agencies and Take Into put in writing those policies and procedures Account How Their Functions related to intellectual property that they believe and Property Differ are necessary and appropriate to enable their 2011-106 (November 2011) staff to identify, manage, and protect their intellectual property. Medi-Cal Managed Care 6. Health Care Services should ensure that it performs 3 †  Program: The Departments annual medical audits of local initiatives as required of Managed Health Care by law. and Health Care Services Could Improve Their Oversight of Local Initiatives Participating in the Medi-Cal Two-Plan Model 2011-104 (December 2011) Mental Health Services Act: 2. To ensure that it monitors counties to the 2 December T The State’s Oversight Has fullest extent as the MHSA specifies and that it 2016 Provided Little Assurance of implements best practices, Health Care Services the Act’s Effectiveness, and should conduct comprehensive on-site reviews of Some Counties Can Improve county MHSA programs, including verifying county Measurement of Their compliance with MHSA requirements. Program Performance 2012-122 (August 2013)* 3. To ensure that counties have the needed guidance 2 December to implement and evaluate their MHSA programs, 2016 Health Care Services should coordinate with the Accountability Commission and issue guidance or regulations, as appropriate, for Facilities programs and for other MHSA requirements, such as a prudent reserve. 5. To ensure that counties have the needed 2 December guidance to implement and evaluate their 2016 MHSA programs, Health Care Services should collaborate with the Accountability Commission to develop and issue guidance or regulations, as appropriate, to counties on how to effectively evaluate and report on the performance of their MHSA programs. 6. To ensure that Health Care Services and other state 2 December entities can evaluate MHSA programs and assist 2016 the Accountability Commission in its efforts, Health Care Services should collect complete and relevant MHSA data from the counties. continued on next page . . . 16 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 7. To ensure that Health Care Services and other 2 December state entities can evaluate MHSA programs and 2016 assist the Accountability Commission in its efforts, Health Care Services should resolve all known technical issues with the partnership and client services systems and provide adequate and expert resources to manage the systems going forward. 18. Health Care Services should develop standardized 2 December data collection guidelines or regulations, as 2016 appropriate, that will address inconsistencies in the data that counties report to the State. In developing these guidelines or regulations, Health Care Services should consult with the Accountability Commission to ensure that data collected reasonably fulfill statewide evaluation purposes. 19. To help ensure county compliance with 2 December stakeholder regulations, Health Care Services 2016 should provide technical assistance to counties on the MHSA local planning review process and ensure that its guidance to counties is clear and consistent with state regulations. California Department 1. To ensure that the providers receive reimbursement 1 January 2016 of Health Care Services: for only valid services, Health Care Services should Its Failure to Properly immediately coordinate with the appropriate Administer the Drug Medi-Cal counties to recover inappropriate payments to Treatment Program Created ineligible providers and for services purportedly Opportunities for Fraud rendered to deceased beneficiaries. 2013-119 (August 2014) 2. To ensure that the providers receive reimbursement 1 Early 2016 for only valid services, Health Care Services should immediately develop and implement new procedures for routinely identifying and initiating recovery efforts for payments that it authorizes between the effective date of a provider's decertification and the date it became aware of the decertification, in addition to the payments it authorizes between a beneficiary's death date and its receipt of the death record. 3. To ensure that the providers receive reimbursement 1 June 2016 for only valid services, Health Care Services should immediately direct its investigations division to determine whether it authorized any improper payments to program providers for deceased beneficiaries outside of our audit period. It should also determine whether it authorized such payments through its other Medi-Cal programs. Health Care Services should initiate efforts to recover such payments as appropriate. 4. To ensure that the providers receive reimbursement 1 End of 2015 for only valid services, Health Care Services should immediately direct its investigations division to determine whether it should recover any overpayments for the high-risk payments we identified in Table 7 on page 28 and Appendix A beginning on page 63. It should also take the appropriate disciplinary action against the affected providers, such as suspension or termination. 6. To ensure that the providers receive reimbursement 1 September for only valid services, Health Care Services 2015 should immediately direct its fiscal management and accountability branch to work with Fresno, Los Angeles, and Sacramento counties to recover the specific overpayments we identified during our visits. California State Auditor Report 2015-041 17 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 10. To ensure that the providers receive reimbursement 1 November for only valid services, Health Care Services should 2015 immediately ensure that Los Angeles County strengthens its provider contract monitoring process, including fully implementing its RATE system to track and respond to provider deficiencies, and that it imposes appropriate responses when warranted, such as withholding payment or suspending or terminating a contract. 18. To prevent the certification of ineligible providers, 1 †  Health Care Services should immediately ensure that its enrollment division conducts LEIE and EPLS database searches of program providers at least monthly. 20. To prevent the certification of ineligible providers, 1 May 2016 Health Care Services should immediately establish a mechanism to identify the number of program sites the provider applicants' medical directors work at, and ensure that the physician ratio does not exceed 1-to-3 in accordance with state law and the certification standards. 21. To prevent the certification of ineligible providers, 1 March 2016 Health Care Services should immediately identify and perform an immediate recertification of providers that signed the Compliance Agreement to ensure that these providers are currently meeting all program requirements. 24. To prevent the certification of ineligible providers, 1 December Health Care Services should immediately develop 2015 a schedule for recertifying all program providers every five years. 25. To prevent the certification of ineligible providers, 1 December Health Care Services should immediately continue 2015 its implementation of an automated provider enrollment system. 26. To prevent the certification of ineligible providers, 1 March 2016 Health Care Services should immediately complete its program recertification on or before March 24, 2016, as federal regulations require. 27. To prevent the certification of ineligible providers, 1 End of 2015 Health Care Services should immediately establish a plan for eliminating its backlog of applications for new sites and services and changes to existing certifications. 33. To improve the coordination between its 1 June 2016 divisions, branches, and units and ensure that it addresses allegations of fraud in a timely manner, Health Care Services should fully implement the investigations division's recommendations shown in Appendix B. If it chooses not to implement a recommendation, it should document sufficiently the reasons for its decision. Mental Health Services Oversight and Accountability Commission Mental Health Services Act: 9. To ensure that counties have needed guidance 2 †  The State's Oversight Has to implement and evaluate MHSA programs, T Provided Little Assurance of the Accountability Commission should issue the Act's Effectiveness, and regulations, as appropriate, for Prevention and Some Counties Can Improve Innovation programs. Measurement of Their Program Performance 2012-122 (August 2013)* continued on next page . . . 18 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 11. To fulfill its charge to evaluate MHSA programs, 2 Fiscal Year the Accountability Commission should 2017-2018 undertake the evaluations specified in its implementation plan. California Department of Public Health Department of Public Health: 1. To ensure that citation review conferences are 5 December It Reported Inaccurate completed expeditiously, Public Health should 2014 Financial Information and continue to take steps to eliminate its backlog of Can Likely Increase Revenues appeals awaiting a citation review conference. for the State and Federal Health Facilities Citation Penalties Accounts 2010-108 (June 2010) 2. To increase revenue for the penalty accounts, 5 October 2015 Public Health should seek legislation authorizing it to revise periodically the penalty amounts to reflect an inflation indicator, such as the CPI. 3. To increase revenue for the penalty accounts, 5 December Public Health should ensure that it conducts 2016 all state surveys of facilities every two years, as required by state law. 4. To ensure that it complies with current state 5 January 2016 law and increases transparency, Public Health should adopt regulations for the administration of temporary management companies. 5. To increase revenue for the state account, Public 5 Will Not Health should seek legislation authorizing it to Implement require facilities that want to contest the monetary penalty to pay the penalty upon its appeal which could then be deposited into an account within the special deposit fund. The original monetary penalty deposited, plus interest accrued in the account, should then be liquidated in accordance with the terms of the decision. 6. To ensure consistency with federal guidance 5 Will Not related to federal requirements, and that it is not Implement creating incentives for facilities to appeal citations issued for noncompliance with state requirements, Public Health should provide guidance to its staff that discourages settling appealed monetary penalties for a better term than had the facility not contested the citation and paid the penalty within the time frame specified in law to receive a 35 percent reduction. If Public Health believes instances occur when it is appropriate to reduce a monetary penalty by more than 35 percent, it should document which statutory or regulatory factors that formed the basis for concluding that the original class of citation and corresponding monetary penalty amount were no longer considered valid or relevant. 7. To increase revenue for the penalty accounts, Public 5 Will Not Health should seek legislation specifying a time Implement frame within which facilities with nonappealed citations that do not qualify for a 35 percent reduction must pay their monetary penalties and allowing Public Health to collect interest on late payments of monetary penalties. Developmental Centers: 15. To conduct licensing surveys at required intervals 2 October 2015 G Poor-Quality Investigations, while minimizing additional workload, Public Outdated Policies, Leadership Health should explore further opportunities and Staffing Problems, and to coordinate the licensing and certification Untimely Licensing Reviews surveys. If Public Health questions the value of Put Residents at Risk these surveys, it should seek legislation to modify 2012-107 (July 2013)* the surveying requirements. California State Auditor Report 2015-041 19 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 17. To ensure that investigations are conducted on 2 Will Not a timely basis across priority levels, Public Health Implement should develop and implement target time frames for the priority levels that lack them. Public Health should ensure that the timelines are being met and, if not, explore new ways to increase efficiency and manage its workload, thereby facilitating timely investigations. 18. To improve its enforcement, each year Public 2 October 2015 Health should evaluate the effectiveness of its enforcement system across all types of health facilities, including those in developmental centers, prepare the required annual report, and, if called for, recommend legislation to improve the enforcement system and enhance the quality of care. California Department 1. To protect the health, safety, and well-being of 1 †   of Public Health: It Has residents in long-term health care facilities, Public Not Effectively Managed Health should improve its oversight of complaint Investigations of Complaints processing. Specifically, by January 1, 2015, Related to Long-Term Health Public Health should establish and implement Care Facilities a formal process for monitoring the status 2014-111 (October 2014)# and progress in resolving open facility-related complaints and ERIs at all district offices. This process should include periodically reviewing a report of open complaints and ERIs to ensure that all complaints and ERIs are addressed promptly. 2. To protect the health, safety, and well-being 1 †  of residents in long-term health care facilities, Public Health should improve its oversight of complaint processing. Specifically, by January 1, 2015, Public Health should improve the accuracy of information in the spreadsheet that PCB uses to track the status of complaints against individuals and review the reports of open complaints to ensure that all complaints are addressed promptly. 3. To protect the health, safety, and well-being of 1 Will Not residents in long-term health care facilities, Public Implement Health should improve its oversight of complaint processing. Specifically, by May 1, 2015, Public Health should establish a specific time frame for completing facility-related complaint investigations and ERI investigations and inform staff of the expectation that they will meet the time frame. Public Health should also require district offices to provide adequate, documented justification whenever they fail to meet this time frame. 4. To protect the health, safety, and well-being 1 Unknown of residents in long-term health care facilities, Public Health should improve its oversight of complaint processing. Specifically, by May 1, 2015, Public Health should develop formal written policies and procedures for PCB to process complaints about certified individuals in a timely manner. These policies and procedures should include specific time frames for prioritizing and assigning complaints to investigators, for initiating investigations, and for completing the investigations. Public Health should also inform staff of the expectation that they will meet these time frames. It should require PCB to provide adequate, documented justification whenever PCB fails to meet the time frames. continued on next page . . . 20 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 5. To ensure that district offices address ERIs 1 October 2015 consistently and to ensure that they investigate ERIs in the most efficient manner, Public Health should assess whether each district office is appropriately prioritizing ERIs. Specifically, it should determine, on a district-by-district basis, whether district offices' assigning ERIs a priority level that requires an on-site visit is justified. This assessment should also determine whether each district office is prioritizing ERIs appropriately when determining that on-site investigations are not necessary. 6. To ensure that district offices address ERIs 1 October 2015 consistently and to ensure that they investigate ERIs in the most efficient manner, Public Health should use the information from its assessment to provide guidance to district offices by October 1, 2015, on best practices for consistent and efficient processing of ERIs. 7. To ensure that district offices address ERIs 1 October 2015 consistently and to ensure that they investigate ERIs in the most efficient manner, Public Health should review periodically a sample of the priorities that district offices assign to ERIs to ensure compliance with best practices. 8. To protect the residents in long-term health care 1 Unknown facilities from potential harm, Public Health should ensure that its district offices have adequate staffing levels for its licensing and certification responsibilities, including staffing levels that allow prompt investigations of complaints. Specifically, Public Health should continue working with CalHR to complete the reclassification of district offices' investigator supervisor and manager positions and then quickly fill the vacant positions at district offices. 9. To protect the residents in long-term health care 1 †   facilities from potential harm, Public Health should ensure that its district offices have adequate staffing levels for its licensing and certification responsibilities, including staffing levels that allow prompt investigations of complaints. Specifically, Public Health should complete by May 1, 2015, a staffing assessment to identify the resources necessary for district offices to investigate open complaints and ERIs and to promptly address new complaints on an ongoing basis. Public Health should use this assessment to request additional resources, if necessary. 10. To protect the residents in long-term health care 1 December facilities from potential harm, Public Health should 2016 ensure that its district offices have adequate staffing levels for its licensing and certification responsibilities, including staffing levels that allow prompt investigations of complaints. Specifically, by January 1, 2015, Public Health should establish a time frame for fully implementing the recommendations that its consultant identified related to the processing of complaints about long-term health care facilities. California State Auditor Report 2015-041 21 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 11. Public Health should take steps to ensure that 1 December PCB has the resources necessary on an ongoing 2015 basis to complete investigations of complaints against individuals. Specifically, Public Health should assess whether the temporary resources it has received are adequate to reduce the number of open complaints to a manageable level. This assessment should also determine whether permanent resources assigned to PCB are adequate to address future complaints. Public Health should use this assessment to request additional resources, if necessary. 12. To ensure that its district offices properly 1 October 2015 investigate complaints and ERIs, Public Health should make certain that all district offices follow procedures requiring supervisory review and approval of complaint and ERI investigations. If the district offices do not have a sufficient number of supervisors to review investigations they did not conduct, Public Health should arrange to assist the districts until such time that they do have a sufficient number of supervisors. 13. To make certain that its district offices comply with 1 October 2015 federal requirements regarding corrective action plans, Public Health should establish a process for its headquarters or regional management to inspect district office records periodically to confirm that they are obtaining corrective action plans according to the required time frame and verifying that facilities have performed the corrective actions described in the plans when required. 14. To ensure that it has closed complaints and ERIs 1 October 2015 appropriately, Public Health should take steps by April 2015 to verify that complaints that its field operations branch closed administratively were closed appropriately. For example, it could request the district offices to verify that the closures were appropriate. 16. To better protect the safety of residents in 1 October 2015 long-term health care facilities, Public Health should direct its district offices to comply with required time frames for initiating and closing completed investigations. If a district office lacks sufficient resources to initiate or close investigations within those time frames, Public Health should arrange to assist that district until such time that the district complies with the statute. 17. To make certain that it complies with statutory 1 †   time frames for adjudicating appeals related to individuals, Public Health should establish a process to monitor its contractor's performance with contract terms. California Department of Social Services Department of Social 2. To make certain that counties receive the greatest 5 ** Services: For the CalWORKs benefit from the resources they spend on antifraud and Food Stamp Programs, efforts related to CalWORKs and food stamp cases, It Lacks Assessments of Social Services should, using the results from Cost-Effectiveness and Misses the recommended cost-effectiveness analysis, Opportunities to Improve determine why some counties' efforts to combat Counties' Antifraud Efforts welfare fraud are more cost-effective than others. 2009-101 (November 2009)* continued on next page . . . 22 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 3. To make certain that counties receive the greatest 5 ** benefit from the resources they spend on antifraud efforts related to CalWORKs and food stamp cases, Social Services should seek to replicate the most cost-effective practices among all counties. 4. To make certain that counties receive the greatest 5 ** benefit from the resources they spend on antifraud efforts related to CalWORKs and food stamp cases, Social Services should continue to address the recommendations of the steering committee and promptly act on the remaining recommendations 7. To ensure the accuracy and consistency of 5 ** the information on welfare fraud activities that counties report and that Social Services subsequently reports to the federal government, the Legislature, and internal users, Social Services should continue with regular meetings of its workgroup to further its efforts to clarify its instructions for completing the counties' investigation activity reports. 8. To ensure that counties are consistently following 5 ** up on all match lists, Social Services should remind counties of their responsibility under state regulations to follow up diligently on all match lists. Further, it should work with counties to determine why poor follow-up exists and address those reasons. 9. To ensure that counties are consistently following 5 ** up on all match lists, Social Services should revive its efforts to work with counties and federal agencies to address the counties' concerns about match list formats and criteria. 10. Social Services should track how counties 5 ** determine prosecution thresholds for welfare fraud cases and determine the effects of these thresholds on counties' decisions to investigate potential fraud, with a focus on determining best practices and cost-effective methods. It should then work with counties to implement the consistent use of these cost-effective methods. 11. Social Services should either ensure that counties 5 ** follow state regulations regarding the use of administrative disqualification hearings or pursue changing the regulations. 14. Recognizing that the deterrence effect is difficult to 5 ** measure, Social Services should develop a method that allows it to gauge the cost effectiveness of SFIS. Social Services should include in its efforts to measure cost effectiveness the administrative cost that counties incur for using SFIS. Based on its results, Social Services should determine whether the continued use of SFIS is justified. Child Welfare Services: 2. To encourage more effective communication from 4 Will Not California Can and Must county CWS agencies regarding its licensees, Social Implement Provide Better Protection Services should specify in regulations what types and Support for Abused and of situations or allegations the agencies should Neglected Children forward to its licensing division. 2011-101.1 (October 2011)* 3. To ensure that rates paid to foster family agencies 4 January 2017 are appropriate, Social Services should analyze the rates and provide reasonable support for each component, especially the 40 percent administrative fee it currently pays these agencies. California State Auditor Report 2015-041 23 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 4. Social Services should create and monitor 4 January 2017 compliance with clear requirements specifying that children placed with foster family agencies must have elevated treatment needs that would require a group home placement if not for the existence of these agencies' programs. Specifically, Social Services should revise its regulations so licensed foster homes have higher priority than foster family agencies for children that do not have identified treatment needs. 5. Social Services should require county CWS agencies 4 January 2017 to file in CWS/CMS a detailed justification for any child placed with a foster family agency. 6. Social Services should create a mechanism by 4 October 2017 which it can efficiently check for compliance with the needs-justification requirement. 8. To determine whether the hold harmless provision 4 Will Not has been effective in reducing caseloads and Implement whether it should be revised or rescinded, Social Services should refine and use CWS/CMS to calculate and report county CWS caseloads. 9. To encourage county CWS agencies to conduct 4 Will Not formal internal death reviews, Social Services Implement should revise its annual report on child deaths resulting from abuse or neglect to provide information on whether county CWS agencies conducted such a review of child deaths with prior CWS history. To obtain this information, Social Services should revise its regulations to require all county CWS agencies to not only report child deaths resulting from abuse or neglect but to also require a subsequent report indicating whether an internal child death review was completed. 11. To provide more useful information in its annual 4 Will Not report, Social Services should provide child Implement death information broken out by county, not just statewide totals. Further, Social Services should provide more analysis, such as comparing child death information over multiple years and presenting each county's child deaths as a percentage of its total child population. Child Welfare Services: 40. To promote continued improvement in the CWS 1 †  The County Child Welfare system, Social Services should encourage each V Services Agencies We county CWS agency to designate personnel to Reviewed Must Provide Better update regularly their policies and procedures, Protection for Abused and to include a detailed description of the need for Neglected Children ongoing supervisory reviews of key aspects of their 2013-110 (April 2014) respective service processes and incorporate that description into their policies and procedures, and to designate personnel to perform regular quality assurance reviews. 41. To promote continued improvement in the 1 November CWS system, Social Services should ask each 2015 county CWS agency to report to Social Services on the status of these efforts within 60 days, six months, and one year from the publication of this audit report. continued on next page . . . 24 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION Department of State Hospitals †† Sex Offender Commitment 2. To eliminate duplicative effort and increase 4 Will Not B Program: Streamlining efficiency, Corrections should not make Implement the Process for Identifying unnecessary referrals to Mental Health. Corrections Potential Sexually and Mental Health should jointly revise the Violent Predators Would structured screening instrument so that the referral Reduce Unnecessary or process adheres more closely to the law's intent. Duplicative Work 2010-116 (July 2011) 6. To reduce costs for unnecessary evaluations, 4 Will Not Mental Health should either issue a regulation or Implement seek a statutory amendment to clarify that when resolving a difference of opinion between the two initial evaluators of an offender, Mental Health must seek the opinion of a fourth evaluator only when a third evaluator concludes that the offender meets SVP criteria. CORRECTIONS AND REHABILITATION Board of State and Community Corrections Juvenile Justice Realignment: 1. To improve the usefulness of its reports so that 3 November Limited Information Prevents they can be used to assess the outcomes of 2016 a Meaningful Assessment of realignment, the board should work with counties Realignment's Effectiveness and relevant stakeholders, such as the committee 2011-129 (September 2012)* that established performance outcome measures for the block grant, to determine the data that counties should report. To minimize the potential for creating a state mandate, the board should take into consideration the information that counties already collect to satisfy requirements for other grants. 2. To improve the usefulness of its reports so that 3 November they can be used to assess the outcomes of 2016 realignment, if the Legislature chooses not to change the law as suggested, or if the counties are unable to report countywide statistics, the board should discontinue comparing outcomes for juveniles who receive block grant services to those who do not in its reports. 3. To maximize the usefulness of the information it 3 Unknown makes available to stakeholders and to increase accountability, the board should create policies and procedures that include clear, comprehensive guidance to counties about all aspects of performance outcome and expenditure reporting. At a minimum, such guidance should include specifying how counties should define when a juvenile has received a service and whether certain services, such as training, should qualify as serving juveniles. 4. To maximize the usefulness of the information 3 Unknown it makes available to stakeholders and to increase accountability, the board should publish performance outcome and expenditure data for each county on its Web site and in its annual reports. 5. To maximize the usefulness of the information it 3 Will Not makes available to stakeholders and to increase Implement accountability, the board should consider verifying the counties' data by conducting regular site visits on a rotating basis or by employing other procedures to verify data that counties submit. 6. To increase the amount of juvenile justice data the 3 November counties make available to the public, the board 2016 should work with counties on how best to report these data. California State Auditor Report 2015-041 25 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 12. To ensure that counties do not maintain excessive 3 November balances of unexpended block grant funds, the 2016 board should develop procedures to monitor counties' unspent funds and follow up with them if the balances become unreasonable. California Correctional Health Care Services ‡‡ California Department of 5. To determine whether the additional expansion of 5 December A Corrections and Rehabilitation: telemedicine is cost-effective within the California 2016 Inmates Sentenced Under the correctional system, Prison Health Care Services Three Strikes Law and a Small should identify and collect the data it needs to Number of Inmates Receiving estimate the savings of additional telemedicine Specialty Health Care through an analysis of the cost of specialty care Represent Significant Costs visits currently provided outside of the institution 2009-107.2 (May 2010)* that could be replaced with telemedicine. Sterilization of Female 5. To ensure that it can better monitor how 1 Will Not Inmates: Some Inmates its medical staff and contractors adhere Implement Were Sterilized Unlawfully, to the informed consent requirements of and Safeguards Designed Title 22, sections 70707.1 through 70707.7, to Limit Occurrences of the the Receiver's Office should develop a plan Procedure Failed by August 2014 to implement a process by 2013-120 (June 2014) December 2014 that would include working with Corrections to establish a process whereby inmates can have witnesses of their choice when consenting to sterilization, as required by Title 22, or working to revise such requirements so that there is an appropriate balance between the need for secure custody and the inmate's ability to have a witness of her choice. 11. To ensure that inmates receive only medical 1 December services that are authorized through its utilization 2015 management process, the Receiver's Office should ensure that the computer system it procures includes functionality to electronically link medical scheduling with authorization through the utilization management process to prevent all unauthorized procedures, regardless of whether they may result in sterilization, from being scheduled. California Department of Corrections and Rehabilitation California Department of 1. To address the erroneous sentencing information 5 †  A Corrections and Rehabilitation: and inappropriately assigned convictions in its data Inmates Sentenced Under the system, Corrections should complete its cleanup of Three Strikes Law and a Small data that will be transferred into the new system, Number of Inmates Receiving ensuring that this review includes a detailed Specialty Health Care evaluation of convictions that have been assigned Represent Significant Costs outdated sentencing information as well as 2009-107.2 (May 2010)* deleting erroneous sentencing information, before it begins using its new data system. Department of Corrections 1. Corrections should take appropriate disciplinary 4 Will Not and Rehabilitation: Improper actions against the employee and pursue Implement Overtime Reporting collection efforts for the compensation she did I2010-2, Case I2007-0887 not earn. (January 2011)‡ California Prison Industry 6. As Corrections prepares to move CalParole 4 December Authority: It Can More data into the Strategic Offender Management 2015 Effectively Meet Its Goals System (SOMS), it should modify existing of Maximizing Inmate employment-related fields and add to SOMS new Employment, Reducing fields that are currently not available in CalParole so Recidivism, and Remaining that Corrections can minimize the opportunity for Self-Sufficient erroneous data entries and make employment data 2010-118 (May 2011) more reliable. continued on next page . . . 26 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION Sex Offender Commitment 3. To eliminate duplicative effort and increase 4 Will Not B Program: Streamlining efficiency, Corrections should not make Implement the Process for Identifying unnecessary referrals to Mental Health. For Potential Sexually example, Corrections should better leverage the Violent Predators Would time and work it already conducts by including Reduce Unnecessary or in its referral process (1) determining whether Duplicative Work the offender committed a predatory offense, 2010-116 (July 2011) (2) reviewing results from any previous screenings and evaluations that Mental Health completed and considering whether the most recent parole violation or offense might alter the previous decision, and (3) using STATIC-99R to assess the risk that an offender will reoffend. 4. To eliminate duplicative effort and increase 4 Will Not efficiency, Corrections should not make Implement unnecessary referrals to Mental Health. Corrections and Mental Health should jointly revise the structured screening instrument so that the referral process adheres more closely to the law's intent. Department of Corrections and 1. To ensure that the State does not spend additional 4 December Rehabilitation: The Benefits resources on COMPAS while its usefulness is 2015 of Its Correctional Offender uncertain, Corrections should suspend its use of Management Profiling for the COMPAS core and reentry assessments until it Alternative Sanctions Program has issued regulations and updated its operations Are Uncertain manual to define how Corrections' use of COMPAS 2010-124 (September 2011)* will affect decision making regarding inmates, such as clarifying how COMPAS results will be considered when sending inmates to different prison facilities, enrolling them in rehabilitative programs to address their criminal risk factors, and developing expectations for those on parole. 2. To ensure that the State does not spend additional 4 Will Not resources on COMPAS while its usefulness is Implement uncertain, Corrections should suspend its use of the COMPAS core and reentry assessments until it has demonstrated to the Legislature that it has a plan to measure and report COMPAS's effect on reducing recidivism. Such a plan could consider whether inmates enrolled in a rehabilitative program based on a COMPAS assessment had lower recidivism rates than those provided rehabilitative programming as a result of non-COMPAS factors. 4. Once Corrections resumes its use of COMPAS 4 December core and reentry assessments, it should develop 2015 practices or procedures to periodically determine whether its staff are using COMPAS core or reentry assessments as intended. Such a process might include performing periodic site visits to corroborate that COMPAS is being used as required. 5. Once Corrections resumes its use of COMPAS 4 †  core and reentry assessments, it should develop practices or procedures to periodically compare the demand for certain rehabilitative programs, as suggested by a COMPAS core assessment, to the existing capacity to treat such needs. California Department of 2. Conduct an audit of the leave accounting system 2 January 2016 N Corrections and Rehabilitation during the past three years to identify instances and California Correctional of nonmanagerial, exempt employees working an Health Care Services: Both alternate schedule at an adult correctional facility Agencies Wasted State being charged incorrect amounts of leave for Resources by Improperly missed days of work. Accounting for Leave Taken by Their Employees I2010-1045 (June 2013)*‡ California State Auditor Report 2015-041 27 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 4. Adjust current employees' leave balances in the 2 March 2016 leave accounting system to correct any improper charging of leave identified by the audit. 6. In instances where the audit has determined that 2 May 2016 an employee's leave balance was mischarged but the employee subsequently departed state service, take appropriate measures to remedy any resulting incorrect compensation of the employee for unused leave upon his or her departure, including by seeking repayment of any amount overpaid to the employee. TRANSPORTATION California High‑Speed Rail Authority High-Speed Rail Authority: It 1. To ensure that it can respond adequately to 5 †  Risks Delays or an Incomplete funding levels that may vary from its business System Because of Inadequate plan, the Authority should develop and publish Planning, Weak Oversight, and alternative funding scenarios that reflect the Lax Contract Management possibility of reduced or delayed funding 2009-106 (April 2010) from the planned sources. These scenarios should detail the implications of variations in the level or timing of funding on the program and its schedule. 3. To avert possible legal challenges, the Authority 5 Will Not should ensure that the review group adheres to Implement the Meeting Act or seek a formal opinion from the Office of the Attorney General regarding whether the review group is subject to this act. High-Speed Rail Authority 1. To ensure that it can respond adequately to 3 †  Follow-Up: Although the funding levels that may vary from its business Authority Addressed Some plan, the Authority should develop and publish of Our Prior Concerns, Its alternative funding scenarios that reflect the Funding Situation Has possibility of reduced or delayed funding from Become Increasingly Risky the planned sources. These scenarios should and the Authority's Weak Oversight Persists detail the implications of variations in the level or timing of funding on the program and its schedule. 2011-504 (January 2012) 3. To avert possible legal challenges, the Authority 3 Will Not should ensure that the independent peer review Implement panel adheres to the Bagley-Keene Open Meeting Act or seek a formal opinion from the Office of the Attorney General (attorney general) regarding whether the panel is subject to this act. 7. To add clarification to the first recommendation 3 †  we made in our prior report that stated, “To ensure that it can respond adequately to funding levels that may vary from its business plan, the Authority should develop and publish alternative funding scenarios that reflect the possibility of reduced or delayed funding from the planned sources. These scenarios should detail the implications of variations in the level or timing of funding on the program and its schedule,” the Authority should also present viable alternative funding scenarios for phase one in its entirety that do not assume an increase in the federal funding levels already identified in the 2012 draft business plan. If the Authority does not believe that such alternatives exist, it should publicly disclose this in its 2012 final business plan. continued on next page . . . 28 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 9. To ensure that the public and the Legislature 3 †  are aware of the full cost of the program, the Authority should clearly disclose that the 2012 draft business plan assumes that the State will only be receiving profits for the first two years of operation in 2022 and 2023, and potentially not again until 2060 in exchange for the almost $11 billion the Authority assumes it will receive from the private sector over a four-year period. California Department of Motor Vehicles Special Interest License Plate 1. To ensure that programs supported by special 2 Will Not Funds: The State Has Foregone plates receive appropriate amounts of revenues Implement H Certain Revenues Related to due to them, Motor Vehicles should annually Special Interest License Plates collect all fees for special plates that are no longer and Some Expenditures Were on a vehicle but are retained by the plate owner. Unallowable or Unsupported 2012-110 (April 2013)* 2. Motor Vehicles should ensure that the fees it 2 †  lists in its application for special plates, as well as any other publications, are supported by the appropriate statutes. 3. Motor Vehicles should assess the extent to which 2 †  it has charged fees for special plates that are not consistent with those prescribed in statutes and take appropriate action. California Department of Transportation California Department of 1. To ensure that it collects fair market rents for the 3 Unknown Transportation: Its Poor SR 710 properties on the State's behalf, Caltrans E Management of State should, using the fair market rent determinations Route 710 Extension Project for all SR 710 properties it recently prepared and Properties Costs the State excluding those in its affordable rent program, Millions of Dollars Annually, adjust the tenants' rents to fair market after Yet State Law Limits the Potential Income From Selling providing them with proper notice. the Properties 2011-120 (August 2012) 2. To ensure that it collects fair market rents for the 3 Unknown SR 710 properties on the State's behalf, Caltrans should make only limited exceptions to charging fair market rent and document the specific public purpose that is served in any case that it does not charge fair market rent. 39. To comply with the 2007 court ruling and the APA 3 December until such time as the Legislature may choose to 2015 act, Caltrans should establish regulations to govern the sales process for the SR 710 properties affected by the Roberti Bill. 40. To pursue alternatives to its management of 3 Unknown the SR 710 properties, Caltrans should prepare a cost-benefit analysis to determine if the State would save money by hiring a private vendor to manage the properties. If such savings would occur, Caltrans should seek an exemption under Government Code, Section 19130 (a), to hire a private vendor. NATURAL RESOURCES California Natural Resources Agency Special Interest License Plate 15. To make certain that money from the special plate 2 Will Not H Funds: The State Has Foregone funds pay only for allowable and supportable Implement Certain Revenues Related to activities, Resources should use all appropriate Special Interest License Plates funding sources to pay for any expenses and Some Expenditures Were that benefit multiple programs in proportion to the Unallowable or Unsupported benefits these programs actually receive. Further, it 2012-110 (April 2013)* should ensure that its allocation of such expenses to different funds is equitable and supported. California State Auditor Report 2015-041 29 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 16. To ensure that the governor and Legislature have 2 †  sufficient and appropriate information with which to make decisions on the most effective use of environmental fund money, Resources should submit to the governor and Legislature the annual and triennial reports containing the information that state law requires. Salton Sea Restoration Fund: 7. To ensure that the Legislature has the information 1 †  The State Has Not Fully Funded necessary to meet the State's restoration goals and a Restoration Plan and the to plan for the State's future financial obligations State's Future Mitigation Costs related to mitigation, the Resources Agency should Are Uncertain work with Fish and Wildlife and Water Resources to 2013-101 (November 2013) do the following: • Meet with the Legislature regularly to provide updates on the status of its restoration efforts and the feasibility study to ensure that the Legislature has the information necessary to make funding and other informed decisions. 8. To ensure that the Legislature has the information 1 †  necessary to meet the State's restoration goals and to plan for the State's future financial obligations related to mitigation, the Resources Agency should work with Fish and Wildlife and Water Resources to do the following: • Develop an estimate of the costs, adjusted for inflation, that the State may incur for fulfilling its financial obligations related to mitigation under the QSA. The Resources Agency should include this information in the feasibility study so the Legislature is fully aware of the estimated costs and timing of the State’s future financial obligations. California Department of Parks and Recreation Special Interest License Plate 14. To make certain that money from the special plate 2 †  Funds: The State Has Foregone funds pay only for allowable and supportable H Certain Revenues Related to activities, Parks and Recreation should ensure that Special Interest License Plates environmental fund money budgeted to its offices and Some Expenditures Were is supported by the proportion of the offices' Unallowable or Unsupported activities that state law allows. 2012-110 (April 2013)* Department of Parks and 2. To reduce duplicate expenditure tracking and 2 †  Recreation: Flaws in Its Budget increase the effectiveness of its budget process, the Allocation Processes Hinder Its department should develop procedures requiring Ability to Effectively Manage the districts to prepare and submit spending plans the Park System and to periodically submit their total expenditures 2012-121.2 (September 2013)* after reconciling them with the FTS. The procedures should specify how often districts should provide this information to the department to ensure that the budget office and park management can appropriately oversee the districts' budgets and spending. 4. To ensure that it can comply with state law in 2 †  the event that it must close parks or reduce park services in the future, the department should improve its methodology for developing individual park unit budgets and determining and tracking park-level costs. Specifically, the department should develop specific time frames and deliverables for the completion of phases two and three of its plan. These time frames should include specific completion dates for each key component of the phases. continued on next page . . . 30 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 6. To ensure that it can comply with state law in 2 †   the event that it must close parks or reduce park services in the future, the department should improve its methodology for developing individual park unit budgets and determining and tracking park-level costs. Specifically, the department should determine how it will define service levels and measure whether those levels are being met so it can provide budgets for each park unit, as phase three of its process requires. 8. To prevent unauthorized leave buyback 2 †   transactions, the department should provide training by December 2013 to all department managers and personnel staff who might be involved in leave buyback transactions to ensure that they understand the State's requirements regarding leave buybacks. 11. To prevent unauthorized leave buyback 2 †   transactions, the department should limit access for keying transactions to the payroll system only to authorized personnel staff. 15. To improve the effectiveness of the EPRC, the 2 †   department should establish a process by March 2014 through which the director's office provides formal direction to the EPRC regarding staffing priorities. California Science Center High Risk Update: State 12. By February 2015 the Science Center should 1 Unknown J Agencies Credited Their provide training to all of its personnel specialists Employees With Millions on the number of leave hours employees earn for of Dollars Worth of working on holidays. Unearned Leave 2012-603 (August 2014)" California State Lands Commission State Lands Commission: 1. When the commission determines that it will 4 Will Not Because It Has Not Managed pursue delinquent lessees itself, it should use Implement Public Lands Effectively, the a collection agency or a program such as the State Has Lost Millions in Franchise Tax Board's Interagency Intercept Revenue for the General Fund Collections Program. 2010-125 (August 2011)* 2. To ensure that it receives rent from the lessee 4 Will Not that reflects the approximate value for the State's Implement property at those times when a lessee disputes a modification to the rental amount after the commission exercises its right to perform a rent review or because the lease expired, the commission should include in its lease agreements a provision that requires lessees to pay the commission's proposed increased rental amount, which would be deposited into an account within the Special Deposit Fund. The increased rental amounts deposited, plus the corresponding interest accrued in the account, should then be liquidated in accordance with the amount agreed to in the final lease agreement. 21. To ensure that it manages delinquent leases in 2 †  an effective and timely manner and collects all the amounts owed to it, the commission should develop and adhere to policies and procedures that incorporate the administrative manual’s guidance, including the steps staff should take when a lessee is delinquent, time standards for performing those steps, and a process for consistently tracking the status of delinquent leases between divisions. California State Auditor Report 2015-041 31 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 24. To ensure that as few leases as possible go into 2 Unknown holdover, the commission should consistently assess the 25 percent penalty on expired leases. Department of Water Resources General Obligation 4. To provide the public with accurate and complete 4 Will Not C Bonds: The Departments information on the bond-funded projects it Implement of Water Resources and administers, Water Resources should develop Finance Should Do More to and consistently use a formalized, documented Improve Their Oversight of review process that will provide greater assurance Bond Expenditures that project information posted to the Bond 2010-117 (May 2011) Accountability Web site is regularly updated and contains accurate information. ENVIRONMENTAL PROTECTION Department of Resources Recycling and Recovery Department of Resources 4. The department should weave benchmarks, 5 December Recycling and Recovery: coupled with metrics to measure the quality of its 2015 Deficiencies in Forecasting activities, into the strategic plan for the beverage and Ineffective Management program to allow it to better measure progress in Have Hindered the Beverage meeting goals. Container Recycling Program 2010-101 (June 2010) 5. The department should ensure that the strategic 5 December plan incorporates all relevant activities of the 2015 beverage program. 19. To improve oversight of grants and ensure that the 2 December intended value is received from the grant funds it 2017 awards, the department should implement policies to ensure that cities and counties spend grant funds for recycling purposes by requiring periodic reporting of expenses or reporting of how funds were used after the grant ends. State Water Resources Control Board State Water Resources Control 6. When regional water boards include staff 2 March 2015 Board: It Should Ensure a More enforcement costs in the penalty actions they issue, Consistent Administration the state water board should require that they use of the Water Quality a systematic method for tracking the hours staff Certification Program spend on enforcement activities related to penalty 2012-120 (June 2013) actions and maintain documentary support for these staff enforcement cost calculations. 7. If regional water boards continue to include staff 2 March 2015 enforcement costs in the penalty actions they issue, the state water board should revise its staff cost rate to reflect actual staff salaries and overhead cost for the certification program. Department of Toxic Substances Control California Department of Toxic 8. To ensure it loads only accurate billing data into 1 Unknown Substances Control: Its Lack FI$Cal, the department should continue evaluating of Diligence in Cost Recovery projects with outstanding costs in its billing system Has Contributed to Millions in to meet the July 2015 implementation date. Unbilled and Uncollected Costs 2013-122 (August 2014)* BUSINESS, CONSUMER SERVICES, AND HOUSING Department of Consumer Affairs State Athletic Commission: 16. To ensure that all designated parties complete 2 December Its Ongoing Administrative statements of economic interests as the law 2015 I Struggles Call Its Future requires, Consumer Affairs should improve its Into Question policies and procedures to ensure that it identifies 2012-117 (March 2013)* any incomplete statements and promptly notifies the Fair Political Practices Commission when necessary. continued on next page . . . 32 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION Physical Therapy Board of California Physical Therapy Board 1. The physical therapy board should explore the 3 †  of California: Although It feasibility of establishing a state position to Can Make Improvements, perform the duties of its current in-house It Generally Processes consultant at a reduced cost. Complaints and Monitors Conflict-of-Interest Requirements Appropriately 2011-119 (June 2012)* Bureau for Private Postsecondary Education Bureau for Private 10. To comply with state law and to ensure 1 December Postsecondary Education: It that it effectively manages its inspections of 2016 Has Consistently Failed to Meet institutions, the bureau should prioritize its Its Responsibility to Protect announced and unannounced inspections to the Public's Interests focus on those institutions that have a higher risk 2013-045 (March 2014)* of noncompliance. California State Athletic Commission State Athletic Commission: 2. To ensure its future financial stability, the 2 October Its Ongoing Administrative commission should work with Consumer Affairs to 2015 I Struggles Call Its Future Into establish a long-term financial plan that contains Question the following: 2012-117 (March 2013)* • A reasonable annual budget with an accurate forecast of planned expenditures. The commission should determine this budget based in part on its ability or inability to meet the expenditure limitations stipulated in the solvency plan. • The number of inspectors necessary to regulate each type of event. In establishing this number, the commission should take into account the varying size and complexity of the events. It should also determine the cost for each inspector to regulate an event. • An estimate of its costs to regulate different types of events. To arrive at a reasonable estimate, the commission will need to track at least six months of actual expenditures. • The number of staff necessary to perform all of the commission’s necessary functions. The commission will need to conduct a workload analysis as soon as possible to determine how many staff it requires and adjust its planned expenditures accordingly. • Funds for athletic inspectors’ training that are sufficient to meet the requirement that inspectors receive training within six months of an event that they are scheduled to work. • Strategies to increase revenue. The commission may need to conduct analyses to determine whether the opportunities it is currently considering are legally permissible and fiscally prudent. If so, the commission should take steps to implement those strategies, including seeking any necessary legislative changes. 7. To ensure that it adequately tracks critical 2 Unknown information related to its basic functions and mission, the commission should work with Consumer Affairs to ensure that the new online program will meet its needs and requirements. Once the program is in place, the commission should use it as its central means for tracking its operations. California State Auditor Report 2015-041 33 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 9. To ensure that it accurately collects revenue, the 2 Will Not commission should calculate the pension assessment Implement by counting all the complimentary tickets issued, except for working complimentary tickets, not merely the complimentary tickets that are redeemed. If the commission does not agree that it should calculate the pension assessment by counting all the complimentary tickets issued, it should seek a change in its regulations to calculate the fee based only on the number of complimentary tickets redeemed. 22. The commission needs to establish regulations 2 November that describe its process for determining its ticket 2016 assessment for the neurological account so that it avoids the use of underground regulations. 25. To operate the pension plan effectively and 2 December maximize boxers' benefits, the commission should 2015 create policies and procedures for its administration to ensure that it transfers funds on a regular basis from the pension fund's state account into its investment account. 28. To comply with state law governing the pension 2 October 2016 plan, the commission needs to, after it has an accurate and complete listing of all licensed athletes and box office information by event type, conduct the analysis to determine the feasibility of expanding the pension plan to cover all athletes and report the results to the Legislature. LABOR AND WORKFORCE DEVELOPMENT Employment Development Department Employment Development 4. As part of an overall strategy to limit the number 4 Summer 2016 Department: Its Unemployment of calls it receives while still providing timely and Program Has Struggled to effective customer service, the department should Effectively Serve California's use existing data and additional data from the new Unemployed in the Face of phone system to gain a better understanding of Significant Workload and why people request to speak to an agent. Using Fiscal Challenges this information, the department should further 2010-112 (March 2011)* develop strategies and measurable goals related to achieving a reduction in call volumes. For example, to ensure that virtually all calls are able to gain access to the voice response portion of its new phone system, the department should monitor the volume of blocked call attempts and work with its phone system vendor if necessary to increase the system's capacity. 5. To evaluate the effectiveness of its other efforts 4 Summer 2016 to provide services to claimants in ways that do not require them to speak to agents, such as Web-Cert and Tele-Cert, the department should periodically summarize and assess the more robust management information available under its new phone system. Federal Workforce Investment 4. To assist the state board and other workforce 3 Spring 2017 Act: More Effective State investment partners in the development and D Planning and Oversight Is implementation of state-specific performance Necessary to Better Help measures, EDD should ensure that it works with the California's Job Seekers Find state board to develop procedures for approving Employment the addition of data elements to its Web-based 2011-111 (March 2012) system and for the exchange of data between EDD and the state board. continued on next page . . . 34 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION Employment Development 5. To identify ways to better serve veterans in 2 December Department: It Needs to California, the department should assess 2015 Address Data Issues to the success or struggles of veterans within Better Evaluate and Improve demographic categories in finding employment, the Performance of Its such as age, race, or educational attainment, Employment Programs by comparing veterans' performance to that of for Veterans 2013-102 (October 2013)* nonveterans in the same demographic categories and across demographic categories and use this analysis to determine whether specific populations of veterans could be better served through more targeted efforts and to identify best practices for improving employment outcomes for these specific populations. Further, the department should provide the results of this analysis annually, beginning in 2014, to stakeholders, including local workforce agencies, the state workforce board, the interagency council, the Legislature, and the public. 7. To better optimize its leadership role in the 2 Will Not interagency council's employment workgroup, the Implement department should ensure that the employment workgroup develops a timeline for completing its action items and develops a process for measuring its success in improving employment outcomes for veterans. Specifically, the department should take the lead for establishing a time frame for evaluating tools to help assess and translate military skills into finding civilian jobs and establishing a transition assistance program for veterans. Employment Development 1. To reduce the number of its determinations 1 Mid-2016 Department: It Should that are overturned on appeal, the Employment Improve Its Efforts to Minimize Development Department (EDD) should do the Avoidable Appeals of Its following: Change its practices to ensure that its Eligibility Determinations staff have demonstrated that all of the necessary for Unemployment elements of a false statement are adequately Insurance Benefits supported before disqualifying a claimant 2014-101 (August 2014) for unemployment benefits or assessing the associated 30 percent penalty on that basis. To do this, EDD should update its training to further emphasize that false statement disqualifications, especially those resulting from wage reporting, cannot be assessed unless all of the elements are present. 2. To reduce the number of its determinations that 1 December are overturned on appeal, EDD should do the 2015 following: Revise its Web site and the materials that accompany the continued claim form to provide specific instructions to claimants on how to avoid common errors that claimants make when reporting wages, such as the error of applying some wages to the incorrect week. 3. To reduce the number of its determinations 1 September that are overturned on appeal, EDD should do 2015 the following: Ensure that determinations are supported by sufficient fact-finding and relevant evidence by increasing the required number of attempts to reach claimants by telephone or e-mail before making a determination. 4. To reduce the number of its determinations that 1 December are overturned on appeal, EDD should do the 2015 following: Allow additional time for its staff to process misconduct and voluntary quit cases, especially those that involve complex issues. California State Auditor Report 2015-041 35 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 5. To reduce the number of its determinations 1 June 2016 that are overturned on appeal, EDD should do the following: Improve its due diligence during the pre-appeal review process by considering appellants' reasons for appealing and by contacting claimants, employers, and third parties when necessary to obtain clarifying information that could result in a redetermination, which could eliminate or reduce the need for some appeals board hearings. 6. To reduce the number of its determinations that 1 March 2016 are overturned on appeal, EDD should do the following: Identify those types of appeals that could be most influenced by EDD staff attendance at the appeal hearing, and analyze the feasibility and cost-effectiveness of participating in those hearings by telephone. 8. To identify and correct any policies, procedures, or 1 June 2016 practices that may be contributing to avoidable appeals filed by claimants and employers and thereby provide eligible claimants with unemployment benefits in a timelier manner, EDD should do the following: Using the appeals board's data from fiscal year 2013-14, EDD should identify the legal issues where its determinations are most frequently overturned, and use these data to establish initial performance benchmarks. In addition, similar to the review that EDD's audit and evaluation division performed in 2012, EDD should then review samples of its overturned determinations and the appeals board's decisions on these legal issues to identify trends in the reasons the appeals board cites for overturning EDD's determinations. With this information, EDD should review its policies, practices, and training related to these areas and identify and correct any weaknesses that may be contributing to the overturning of determinations. By April 1, 2015, EDD should report to the Legislature on the results of this review and any changes it plans to make to its determination process. 9. To identify and correct any policies, procedures, or 1 Late 2016 practices that may be contributing to avoidable appeals filed by claimants and employers and thereby provide eligible claimants with unemployment benefits in a timelier manner, EDD should do the following: EDD should use the semiannual data that the appeals board provides to determine whether changes it makes to its process result in reductions in the percentage of its determinations that are overturned on appeal. EDD should also review these data to determine whether it needs to conduct additional reviews of its determinations and the appeals board's decisions to identify additional opportunities for improvement. EDD should report these results to the Legislature annually. continued on next page . . . 36 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION California Workforce Development Board §§ Federal Workforce Investment 2. To assist the governor in the development, 3 July 2016 Act: More Effective State oversight, and continuous improvement of D Planning and Oversight Is California's workforce investment system, the Necessary to Better Help state board should collaborate with state and California's Job Seekers local workforce investment partners to promptly Find Employment develop and implement a strategic workforce 2011-111 (March 2012) plan as state law requires. The strategic plan should include, at a minimum, the following elements: clear roles and responsibilities pertaining to the state board, EDD, and other state and local workforce partners; clear definitions for terminology used in the strategic plan, such as quality services; performance measures that are specific to California for evaluating the efficiency and effectiveness of WIA-funded programs and activities; and procedures for approving the addition of data elements to EDD's Web-based system and for the exchange of data between EDD and the state board to facilitate the development and implementation of performance measures that are specific to California. GOVERNMENT OPERATIONS Department of General Services Department of General 1. To ensure public safety and provide public 3 Will Not Services: The Division of assurance that school districts construct projects in Implement the State Architect Lacks accordance with approved plans, the department, Enforcement Authority in conjunction with the division, should pursue and Has Weak Oversight legislative changes to the Field Act that would Procedures, Increasing the prohibit occupancy in cases in which the division Risk That School Construction Projects May Be Unsafe has identified significant safety concerns. 2011-116.1 (December 2011) California Department of 37. To ensure that the construction unit complies 3 December Transportation: Its Poor with the State's procurement laws and policies, 2016 E Management of State General Services should continue its efforts to Route 710 Extension Project implement regulations that govern the small Properties Costs the State business certification process related to defining Millions of Dollars Annually, and enforcing violations of commercially useful Yet State Law Limits the Potential Income From Selling function requirements. the Properties 2011-120 (August 2012) State Board of Equalization 5. To ensure that resources are spent wisely, General 1 February 2016 Building: Despite Ongoing Services should seek the funding and approval M Health and Safety Concerns, needed to analyze whether keeping or selling the the State Has Not Thoroughly BOE building would be in the State's best financial Analyzed the Costs and interest. As part of that analysis, General Services Benefits of Relocating should conduct, or contract for, appraisals to assess Employees the value of the building with and without the 2014-108 (September 2014) repairs to determine whether making the repairs is in the best interest of the State. If continued ownership of the building appears to be prudent, General Services should evaluate potential productive uses for the building should BOE move to a new facility. General Services should report the results of its analysis to the Legislature no later than September 2015. California Department of Human Resources High Risk Update: State 2. To correct the erroneous leave hours we identified 1 †  Agencies Credited Their in our analysis of the leave accounting system, J Employees With Millions CalHR should work with the state controller and all of Dollars Worth of state agencies under its authority to review and Unearned Leave take the appropriate action to correct the errors by 2012-603 (August 2014) January 2015. California State Auditor Report 2015-041 37 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 7. To ensure that state agencies accurately account 1 August 2016 for their employees' leave benefits, CalHR should consolidate guidance by January 2015 regarding the appropriate amount of leave that employees should earn each month and provide these criteria to the state controller to use when developing the leave accounting system's monthly exception reports. For example, CalHR should identify the number of holiday credit hours that employees covered by each collective bargaining agreement should receive for working on a holiday. 9. To ensure that state agencies accurately account 1 August 2016 for their employees' leave benefits, CalHR should establish general parameters and issue guidance to state agencies by January 2015 on how to account for the leave hours for employees who work alternate work week schedules. 10. To ensure that state agencies accurately account 1 August 2016 for their employees' leave benefits, CalHR should provide additional guidance to state agencies by January 2015 on interpreting the provisions of the collective bargaining agreements related to the amount of leave employees earn. For example, CalHR could provide scenarios to illustrate the number of hours employees should earn under common circumstances. GENERAL GOVERNMENT Department of Finance General Obligation Bonds: 1. To enhance the value of the Bond Accountability 4 Will Not The Departments of Water Web site, Finance should require administering Implement C Resources and Finance agencies to provide information about the actual Should Do More to Improve amounts of bond funds spent on posted projects at Their Oversight of Bond least semiannually. Expenditures 2010-117 (May 2011) 2. To enhance the value of the Bond Accountability 4 Will Not Web site, Finance should develop a tracking Implement and review process to periodically assess the completeness of the project information posted to the Web site. Such a process should include a review of whether state agencies are describing, in terms the public can easily understand, the expected or realized benefits of bond-funded projects. California Public Utilities Commission California Public Utilities 2. The commission should determine the cause of 2 II II †  Commission: Despite its lack of compliance with state law requiring it to Administrative Weaknesses, issue award decisions within 75 days of the date It Has Generally Awarded an intervenor submits a compensation claim, and Compensation to Intervenors it should determine what actions to take to rectify in Accordance With State Law the problem. The commission should ensure that it 2012-118 (July 2013) has sufficient information, such as detailed tracking information regarding claims, to identify where in the process delays are occurring. If the commission determines that the current 75-day statutory period is unreasonable, it should seek a change in state law. 5. To comply fully with state law, the commission 2 Unknown should conduct a comprehensive market rate study and update it periodically. continued on next page . . . 38 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION California Public Utilities 14. The commission should follow the requirement 1 January 2021 Commission: Improved in state law to inspect and audit the accounting K Monitoring of Balancing records of utilities it regulates within required time Accounts Would Better Ensure frames. If the commission chooses to continue to That Utility Rates Are Fair and meet this requirement through the general rate Reasonable case process, it should ensure that all utilities file 2013-109 (March 2014) a general rate case on a regular schedule so as to comply with the state law's audit requirement. However, the commission should follow alternate methods to comply with the audit requirement when a utility will not be filing for its general rate case in time to be audited within three or five years, depending on the timing of the required audit for that utility. California Public Utilities 2. To ensure that it resolves complaints against 1 December Commission: It Fails to passenger carriers in a timely manner, the 2015 Adequately Ensure Consumers' commission should establish a method for Transportation Safety and prioritizing complaints and it should implement Does Not Appropriately a policy specifying the maximum amount of Collect and Spend Fees From time between the receipt of a complaint and Passenger Carriers the completion of the subsequent investigation. 2013-130 (June 2014)* Further, the commission should require branch management to monitor and report regularly on its performance in meeting that policy. 6. To ensure that the branch conducts thorough 1 December investigations of passenger carriers, the 2015 commission should implement a formal training program to ensure that all investigators have adequate knowledge and skills related to regulating passenger carriers. 7. To better ensure passenger carrier and public 1 December safety, the commission should create a system to 2015 determine when a carrier merits a penalty and what the magnitude of the penalty should be. In addition, to be an effective deterrent, the amount of such penalties should be more consistent with what state law permits. 8. The commission should require staff to examine 1 December and formally report on the feasibility of 2015 impounding the vehicles of passenger carriers that refuse to comply with commission orders or that refuse to pay citation penalties and also on the feasibility of making use of the Tax Board's program for intercepting income tax refunds, lottery winnings, and unclaimed property payments to collect unpaid citation penalties. 9. To ensure that passenger carriers submit 1 November accurate fee payments, the commission should 2015 require its fiscal staff to implement a process to verify passenger carrier fee payments and associated revenue. 10. To ensure that it complies with state law and 1 December uses passenger carrier fees appropriately, the 2015 commission should implement a process to ensure that passenger carrier fee revenues more closely match related enforcement costs. 12. To detect and deter carriers from operating illegally 1 Will Not at airports, the branch should use as intended Implement the five positions added for passenger carrier enforcement at airports. If the branch chooses not to designate five positions solely for this purpose, then it must be prepared to demonstrate regularly that an equivalent number of full-time positions are working on this activity. California State Auditor Report 2015-041 39 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 13. To strengthen its leadership and ensure 1 December passenger carrier and public safety, the branch 2015 should produce a draft strategic plan by December 31, 2014, with a final strategic plan completed as the commission specifies. The strategic plan should include goals for the program; strategies for achieving those goals, including strategies for staff development and training; and performance measures to assess goal achievement. Office of Ratepayer Advocates California Public Utilities 7. To further its mission to obtain the lowest 1 Will Not K Commission: Improved possible rates for reliable and safe utility service Implement Monitoring of Balancing for ratepayers through its reviews of balancing Accounts Would Better Ensure accounts, Ratepayer Advocates should use the That Utility Rates Are Fair commission's list of balancing accounts to guide its and Reasonable selection of the number, size, and type of balancing 2013-109 (March 2014) accounts to review so that its review coverage is more proportional across all utilities. 8. To further its mission to obtain the lowest 1 †  possible rates for reliable and safe utility service for ratepayers through its reviews of balancing accounts, Ratepayer Advocates should document the method used for its selection of balancing accounts to review. California Department of Veterans Affairs California Department of 2. To ensure that it maximizes its ability to generate 2 January 2016 Veterans Affairs: It Has revenue at all the veterans homes and better Initiated Plans to Serve cover the costs of providing care to its members, Veterans Better and More CalVet should analyze its cost-recovery model, Cost-Efficiently, but Further including an evaluation of the state laws that limit Improvements Are Needed the amount of revenue that CalVet can collect 2012-119 (May 2013) for the care it provides to its members at the veterans homes. 5. To better utilize unused space at the veterans 2 December homes, and to serve more veterans within legal 2014 restrictions, CalVet should use the information in the Yountville veterans home master plan to develop a plan for using unused space at that home to generate revenue and/or serve more veterans. 11. To ensure it is maximizing its ability to serve 2 September veterans in the State's veterans homes, CalVet 2016 should follow through with its plan to assess the bed capacity of the homes for veterans' needs after the homes in Fresno and Redding are licensed, to determine the most appropriate number of beds for the different levels of care offered at each home. 14. To ensure that it is providing the highest quality 2 November of services to veterans, CalVet should improve its 2015 tracking system policy by developing oversight controls so that the system is used consistently by all of the veterans homes. 15. To allow for public input and to prevent any legal 2 October 2016 challenges that its policy of capping members' fees, its $165 monthly income-retention policy for members, and its age and admission policy are unenforceable underground regulations, CalVet should adopt these policies as regulations in accordance with the Administrative Procedure Act. continued on next page . . . 40 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 16. To more effectively and efficiently meet state 2 December purchasing and procurement requirements, 2016 CalVet should analyze its current purchasing model to ensure that it is the most efficient and cost-effective to use when purchasing non-IT goods and services for the veterans homes. 17. To more effectively and efficiently meet state 2 December purchasing and procurement requirements, CalVet 2016 should continue implementing quality assurance policies to strengthen its oversight of its purchasing practices, including conducting on-site reviews of the purchasing practices of the veterans homes. California Department of 1. For all contracts that involve recreation fund 2 December Veterans Affairs: Wastefulness, moneys or involve recreation fund enterprises, 2015 Failure to Comply With State as a best practice, institute policies that require Contracting Requirements, the contracts be awarded and administered and Inexcusable Neglect in a manner consistent with the policies and of Duty procedures set forth in the State Administrative I2011-0837 (October 2013)‡ Manual and the State Contracting Manual. 3. For all contracts that involve recreation fund 2 December moneys or involve recreation fund enterprises, 2015 institute policies that require the contracts to be reviewed and approved by the secretary of Veterans Affairs, or upon delegation of the authority to do so, by a deputy secretary, prior to the contracts being executed. 4. Institute a policy that requires all payments of 2 Unknown recreation fund moneys to a person or business in the amount of $5,000 or more during a fiscal year and any contract involving recreation fund enterprises be presented to the recreation fund advisory board (now known as the Morale, Welfare, and Recreation Committee) at a public meeting for an advisory vote prior to the payment being made. 5. Institute a policy that requires any expenditure of 2 Unknown recreation fund moneys to a person or business in the amount of $5,000 or more during a fiscal year be listed as a separate line item in the budget of the recreation fund as presented to the secretary for approval. 7. Consider legislation to establish increased statutory 2 Unknown controls over the management of the recreation fund maintained by each of the veterans homes to require that the funds be managed by the secretary of Veterans Affairs, in consultation with the administrator of each home, and be managed in a manner that is transparent to the public, takes into account the feelings of veterans, is consistent with the mission of the veterans homes, and is fiscally prudent. LEGISLATIVE, JUDICIAL, AND EXECUTIVE California Office of Emergency Services## California's Mutual Aid 1. To make certain that emergency response agencies 3 Unknown System: The California receive reimbursements on time, Cal EMA should Emergency Management establish procedures to ensure that paying entities Agency Should Administer the do not delay reimbursements. Reimbursement Process More Effectively 2011-103 (January 2012) 4. To make certain that local agencies calculate 3 December correctly their average actual hourly rates, Cal EMA 2016 should audit a sample of invoices each year and include in the review an analysis of the accuracy of the local agencies' average actual hourly rates reported in the agencies' salary surveys. California State Auditor Report 2015-041 41 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 5. To make certain that local agencies calculate 3 December correctly their average actual hourly rates, if Cal 2016 EMA determines that the local agencies' rates are incorrect, it should advise the agencies to recalculate the rates reported in their salary survey. Local agencies that fail to submit accurate average actual hourly rates should be subject to the base rates. 7. If FEMA determines that the calculations and claims 3 Unknown identified in the Office of Inspector General's audit report were erroneous, Cal EMA should modify the time sheets to track the actual hours that the responding agency works as well as the dates and times that the agency committed to the incident and returned from the incident. 8. If FEMA determines that the calculations and claims 3 Unknown identified in the Office of Inspector General's audit report were erroneous, Cal EMA should ensure that the replacement for its current invoicing system can calculate the maximum number of reimbursable personnel hours under both FEMA's policy and the CFAA. Special Interest License Plate 11. To make certain that money from the special plate 2 †  Funds: The State Has Foregone funds pay only for allowable and supportable H Certain Revenues Related to activities, Cal EMA should maintain documentation Special Interest License Plates to support its charges to the antiterrorism fund. For and Some Expenditures Were example, it should ensure that employees submit Unallowable or Unsupported signed time reports to support the time they spend 2012-110 (April 2013)* on antiterrorism-related activities. California Department of Justice Armed Persons With Mental 23. To reduce the risk that it may not identify an 2 Unknown Illness: Insufficient Outreach armed prohibited person, Justice should revise its From the Department of electronic matching process to use all personal Justice and Poor Reporting identifying numbers available in its databases. From Superior Courts Limit the Identification of Armed Persons With Mental Illness 2013-103 (October 2013) 24. To ensure that timely information is available for its 2 March 2016 efforts to identify armed prohibited persons and confiscate their firearms, Justice should manage staff priorities to meet both its statutory deadline for firearms background checks and its internal deadline for initially reviewing potential prohibited persons. Justice should report annually to the Legislature about the backlog of unreviewed potential prohibited persons and what factors have prohibited it from efficiently reviewing these persons. 28. To ensure that it meets its goal of eliminating the 2 December historical backlog of reviewing firearms owners by 2016 the end of 2016, Justice should manage its staff resources to continually address the backlog, and should notify the Legislature if it believes that it will not be able to fully process this backlog by its goal date. To help guide this effort, Justice should establish benchmarks that will indicate whether it is on track to meet its goal. 33. Justice should update and maintain its system 2 †  documentation for the mental health and APPS databases to ensure that it can efficiently and effectively address modifications and questions about these databases. continued on next page . . . 42 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 34. To ensure that it fully supports its decision to apply 2 †  federal prohibition terms to individuals, Justice should review all applicable federal and state laws and continue to seek clarification from the ATF and any other appropriate federal agencies to determine whether California's firearms restoration process meets federal criteria and, if not, why it does not. Justice should issue a report to the Legislature, within one year, detailing the results of its review and, if applicable, communicate why California's restoration process does not meet federal criteria and the impact that it has on prohibited persons who live in California. Sexual Assault Evidence Kits: 4. To report to the Legislature about the effectiveness 1 †  Although Testing All Kits of its RADS program and to better inform decisions Could Benefit Sexual Assault about expanding the number of analyzed sexual Investigations, the Extent of assault evidence kits, Justice should amend its the Benefits Is Unknown agreements with the counties participating in the 2014-109 (October 2014) RADS program to require those counties to report case outcome information, such as arrests and convictions for the sexual assault evidence kits Justice has analyzed under the program. Justice should then report annually to the Legislature about those case outcomes. California Secretary of State Office of the Secretary of State: 4. To enhance the value of the HAVA spending plan 2 Will Not It Must Do More to Ensure as a transparency and accountability tool for the Implement Funds Provided Under the Legislature, the Office should make the following Federal Help America Vote Act modifications to its annual HAVA spending plan: Are Spent Effective • Clearly state the methodology used to 2012-112 (August 2013) report prior HAVA expenditures in the HAVA spending plan. Such a methodology should use the financial information contained in its accounting system. • Reconcile the prior HAVA expenditures with the year-end financial reports the Office provides to the California State Controller’s Office. • Present prior HAVA expenditures by activity and by specific appropriation. 5. To ensure the State complies with the NVRA, the 2 Will Not Office should take all necessary steps, including Implement seeking any necessary legislative changes, and work with the DMV to modify the driver's license application so that it may simultaneously serve as a form for voter registration. State Board of Equalization State Board of Equalization 1. To more clearly demonstrate its case for a new 1 Unknown Building: Despite Ongoing facility, BOE should ensure that it has a supportable M Health and Safety rationale for the assumptions underlying its Concerns, the State Has analysis of the costs and benefits of moving to a Not Thoroughly Analyzed new consolidated facility. the Costs and Benefits of Relocating Employees 2. To more clearly demonstrate its case for a new 1 Unknown 2014-108 (September 2014) facility, BOE should continue its plans to conduct a study to identify inefficiencies in its current spatial configuration and how its operations could improve with a new consolidated facility. California State Auditor Report 2015-041 43 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 3. To more clearly demonstrate its case for a new 1 Unknown facility, BOE should incorporate staffing growth into its analysis of costs and benefits, using projections based on long-term historical data. 4. To ensure that it can accurately estimate any shifts 1 Unknown in worker productivity and state revenue, BOE should strengthen its current methodology by analyzing the productivity and revenue collection of its employees and by monitoring those metrics at least semiannually. Additionally, BOE should support its methodology with documentation. California State Controller's Office High Risk Update: State 4. To improve the accuracy of information in the leave 1 Summer 2017 J Agencies Credited Their accounting system and to ensure that agencies Employees With Millions do not improperly credit employees with leave in of Dollars Worth of the future, the state controller should implement Unearned Leave additional controls by June 2015 to prevent the 2012-603 (August 2014) leave accounting system from processing the types of inappropriate transactions we identified in our statewide electronic analysis. For example, it could develop cost-effective controls in the leave accounting system that would prevent employees from receiving annual leave and sick leave during the same pay period. 6. To improve the accuracy of information in the leave 1 Fall 2015 accounting system and to ensure that agencies do not improperly credit employees with leave in the future, the state controller should, using criteria provided by CalHR, develop monthly exception reports that identify transactions in the leave accounting system that are inconsistent with the guidelines established in state law and collective bargaining agreements, such as instances in which state employees receive too many personal holidays or too much holiday credit. By June 2015 begin providing each state agency's human resources management with the transactions identified in the exception reports for review and correction as necessary. Superior Court of California, County of Sacramento Sacramento and Marin 6. To make certain that the FCS evaluators are 4 Will Not Superior Courts: Both Courts qualified, the Sacramento family court should Implement Need to Ensure That Family develop processes to ensure that it signs all FCS Court Appointees Have evaluator declarations of qualifications annually. Necessary Qualifications, Improve Administrative 7. To make certain that the FCS evaluators are 4 Will Not Policies and Procedures, and qualified, the Sacramento family court should Implement Comply With Laws and Rules ensure that its unlicensed FCS evaluators complete 2009-109 (January 2011) the licensing portion of the annual declarations of qualifications. 8. To make certain that the FCS evaluators are 4 Will Not qualified, the Sacramento family court should Implement identify the training each of the FCS evaluators need to satisfy the court rules' requirements and ensure that they attend the trainings. 10. To make certain that the FCS evaluators are 4 Will Not qualified, the Sacramento family court should Implement develop processes to ensure that evaluator declarations of qualifications include all relevant information, such as the evaluator's experience. continued on next page . . . 44 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT AUDITEE DID NOT NUMBER OF YEARS SUBSTANTIATE AUDITEE DID NOT RECOMMENDATION ESTIMATED ITS CLAIM ADDRESS ALL APPEARED IN THIS DATE OF OF FULL ASPECTS OF THE TITLE RECOMMENDATION REPORT COMPLETION IMPLEMENTATION RECOMMENDATION 12. To make certain that the FCS evaluators are 4 Will Not qualified, the Sacramento family court should take Implement all reasonable steps to ensure its FCS evaluators meet the minimum qualifications and training requirements before assigning them to any future Family Code Section 3111 evaluations. If necessary, and as soon as reasonably possible, the court should require the FCS evaluators to take additional education or training courses to compensate for the minimum qualifications and training requirements that were not met. 16. To verify that its private mediator and evaluator 4 Will Not panel members meet the minimum qualifications Implement and training requirements before appointment, the Sacramento family court should obtain any missing applications and training records for private mediators and evaluators on its current panel list before appointing them to future cases. 20. To verify that its private mediator and evaluator 4 Will Not panel members meet the minimum qualifications Implement and training requirements before appointment, the Sacramento family court should reinstate its local rules for private mediators and evaluators to provide a minimum of three references, and for private evaluators to provide a statement that they have read the court's evaluator guidelines. 23. To make sure that the minor's counsel it appoints 4 Will Not meet the additional standards required by the Implement superior court's local rules, the Sacramento family court should obtain any missing applications for minor's counsel before appointing them to any future cases. 42. To strengthen its accounting process for California 4 Will Not Family Code Section 3111 evaluations, the Implement Sacramento Superior Court should update its accounting procedures related to billing FCS evaluation costs to include steps for verifying the mathematical accuracy of the FCS summary and the proper allocation of costs between the parties. * Other recommendations pertaining to this audit, which have been fully implemented, can be found in Table 3. † Contrary to the California State Auditor’s (state auditor) determination, the auditee believes it has fully implemented the recommendation. ‡ Before publishing a report of an investigation, the state auditor provides the head of each department or agency involved with a copy of the investigative report, including any recommendations. Therefore, in calculating how long a recommendation has been outstanding, the state auditor uses the date the investigative report was provided to the department or agency, not the date the report was published. The investigative reports for the cases published in I2012‑1 were provided to the involved departments and agencies in October 2012. In October 2010 we provided case I2007‑0887 to the involved, and department and in May and August 2013 we provided cases I2010‑1045 and I2011‑0837 to the involved departments. Cases I2007‑0887, I2010‑1045, and I2011‑0837 were provided to the involved departments and agencies in October 2010, May 2013, and August 2013, respectively. § We are currently reviewing these recommendations as part of a follow‑up audit estimated to be released in February 2016. II This audit concerns Every Woman Counts, a program that was transferred from Public Health to Health Care Services effective July 1, 2012. # The auditee did not provide a one‑year or annual response for these recommendations. Therefore, we use the status of these recommendations as of the auditee’s six‑month response. ** In June 2015 we published a follow‑up report that provides an update on the issues and unimplemented recommendations from the original report. To view the follow‑up report and the status of our recommendations, visit www.auditor.ca.gov and search for Report 2015‑503. †† As of July 1, 2012, the California Department of Mental Health became the Department of State Hospitals. ‡‡ Prison Health Care Services became California Correctional Health Care Services effective July 5, 2011. §§ As of July 14, 2015, the California Workforce Investment Board became the California Workforce Development Board. II II The status of this recommendation changed from fully implemented to not fully implemented as a result of information received subsequent to our evaluation of the recommendation in October 2014. ## As of July 1, 2013, the California Emergency Management Agency became the California Office of Emergency Services. California State Auditor Report 2015-041 45 January 2016 Table 3 Recommendations More Than One Year Old That Were Fully Implemented Since Last Year’s Report or the Entities’ One‑Year Responses (Reports Issued Between November 2008 and October 2014) NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT K THRU 12 EDUCATION Department of Education High School Graduation and Dropout 3. To improve the utility of CALPADS and fulfill the legislative intent of the Resolved 3 Data: California’s New Database May system, the department should work with the Legislature, the State Board Enable the State to Better Serve Its of Education, and the governor to identify priorities for building upon the High School Students Who Are at Risk system when funding is available. These priorities could include tracking of Dropping Out student participation in dropout prevention programs or strategies to 2011-117 (March 2012) measure the effectiveness of those programs or strategies over time. California Department of Education: 1. To minimize the potential for disagreement over allowable migrant program Fully 2 Despite Some Improvements, costs, Education should better define the criteria by which it will consider Implemented Oversight of the Migrant Education program costs allowable and include those criteria in the migrant program Program Remains Inadequate fiscal handbook it provides to the regions. 2012-044 (February 2013)* 8. To address problems with its methodology for calculating administrative Resolved 2 costs, Education should review the regions’ current use of accounting codes to identify the areas in which regions differ in accounting for similar migrant program costs. 9. To address problems with its methodology for calculating administrative Resolved 2 costs, Education should provide regions with more specific direction about how to charge these expenses. 10. To address problems with its methodology for calculating administrative Resolved 2 costs, Education should revise its list of accounting codes that it considers administrative in light of its review of regional coding. 15. To ensure that it receives satisfactory services and outcomes for the funds Fully 2 spent on statewide contracts for the migrant program, Education should Implemented develop and execute a plan to monitor each of its contracts and cancel any it determines do not provide adequate or cost-effective services. U Cafeteria Funds: Local Education 63. To ensure that the spending plans Local Education Agencies (LEAs) create Fully 1 Agencies Generally Use the Funds for to eliminate excess net cash resources in their cafeteria funds are adequate, Implemented Appropriate Purposes effective, and fully executed, the California Department of Education should, 2013-046 (February 2014) by July 1, 2015, make adjustments in the rate of reimbursement to an LEA under the child nutrition programs if that LEA cannot eliminate its entire excess net cash resources within a defined time frame. HIGHER EDUCATION California State University California State University’s 5. To effectively monitor and ensure that the campuses set self-supported fees Fully 1 Extended Education: It Is Unclear in accordance with state law and Executive Order 1054, the Chancellor’s Implemented Whether Supplanting Occurred, Office should immediately take the following action: require campus chief and Campuses Did Not Always financial officers to develop, and presidents to consider, the statement of Document Their Adherence to Laws, revenues and expenditures described in Executive Order 1054 before making Policies,and Procedures a determination on self-supported extended education program fees. 2012-113 (December 2013)* San Diego State University L Sexual Harassment and Sexual 35. All universities should appropriately post the university’s policy on sexual Fully 1 Violence: California Universities Must harassment. The policy should be posted prominently in the university’s main Implemented Better Protect Students by Doing administrative building and in other areas on campus where notices are posted, More to Prevent, Respond to, and including key locations such as residence halls and athletic facilities. Similarly, Resolve Incidents the notice of nondiscrimination should be posted prominently throughout 2013-124 (June 2014)* the university. If, because of the length of the policy on sexual harassment, it is not effective to post it in its entirety, the universities should post summary information that explains how students can access the full policy. University of California University of California: Although 3. To help improve accountability in the university’s budget process, and to help Fully 4 the University Maintains Extensive minimize the risk of unfair damage to its reputation, the university should Implemented Financial Records, It Should Provide take additional steps to increase the transparency of its budget process. Additional Information to Improve Specifically, the Office of the President should update its budget manual Public Understanding of Its Operations to reflect current practices and make its revised budget manual, including 2010-105 (July 2011)* relevant formulas and other methodologies for determining budget amounts, available on its Web site. continued on next page . . . 46 California State Auditor Report 2015-041 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT UCLA and UCSF Medical Centers: 1. The university should take steps to increase the transparency of its campuses’ Fully 1 Although They Supply Significant health system support transfers. Specifically, the university should establish Implemented Monetary Support to Their Campuses’ a process ensuring that it annually issues a report through its Web site that Schools of Medicine, Their Finances is available to the public and that describes the financial and programmatic and Key Measures of Patient-Care impact of each campus’s health system support transfers. Quality Have Remained Stable 2013-111 (January 2014) University of California, Office 24. The university should revise the policies to allow employees to claim only Fully 3 of the President: Waste of actual lodging expenses up to established rates for international travel. Implemented State Funds I2012-1, Case I2010-1022 (December 2012)*† HEALTH AND HUMAN SERVICES California Department of Developmental Services Developmental Centers: Poor-Quality 9. After the department has implemented a formal OPS recruiting program, if it Fully 2 G Investigations, Outdated Policies, can demonstrate that it is still having trouble filling vacant OPS positions, the Implemented Leadership and Staffing Problems, department should evaluate how it can reduce some of the compensation and Untimely Licensing Reviews Put disparity between OPS and the local law enforcement agencies with which it Residents at Risk competes for qualified personnel. 2012-107 (July 2013)* California Department of Health Care Services Mental Health Services Act: The 1. To ensure that it monitors counties to the fullest extent as the MHSA specifies Fully 2 State’s Oversight Has Provided and that it implements best practices, Health Care Services should draft and Implemented T Little Assurance of the Act’s enter into a performance contract with each county that contains assurances Effectiveness, and Some Counties for effective oversight and furthers the intent of the MHSA, including Can Improve Measurement of Their demonstration that each of the county’s MHSA programs are meeting the Program Performance MHSA’s intent. 2012-122 (August 2013)* 8. Health Care Services should, as soon as is feasible, revise or create a Fully 2 reasonable and justifiable allocation methodology to ensure that counties Implemented are appropriately funded based on their identified needs for mental health services. Health Care Services should ensure that it reviews the methodology regularly and updates it as necessary so that the factors and their weighting are appropriate. California Mental Health Planning Council Mental Health Services Act: The 15. The Planning Council should document and make public the reviews that it Fully 2 T State’s Oversight Has Provided Little performs of MHSA programs to demonstrate that it is performing all required Implemented Assurance of the Act’s Effectiveness, reviews. and Some Counties Can Improve Measurement of Their Program Performance 2012-122 (August 2013)* California Department of Public Health California Departments of Public 7. To ensure that it is able to measure its progress toward fulfilling the Fully 2 F Health and Social Services: requirements of the health and safety fund, Public Health should establish Implemented Weaknesses in the Administration of performance measurements for the Kids’ Plates Program. the Child Health and Safety Fund and the State Children’s Trust Fund Limit 8. To ensure that it is able to measure its progress toward fulfilling the Fully 2 Their Effectiveness requirements of the health and safety fund, Public Health should periodically Implemented 2012-105 (November 2012) assess its progress toward meeting its measureable outcomes. California Department of Public 3. When Public Health enters into new contracts with local entities to conduct Fully 2 Health: It Needs to Improve Accuracy compliance inspections, it should evaluate its historical costs of conducting Implemented in Accounting and Charging for these inspections to ensure that the existing rates are adequate to recoup Compliance Inspections Designed its costs. If it determines that the existing rates are not adequate, it should to Reduce Youth Access to develop a new rate that accurately reflects its true costs. Tobacco and It Could Enhance Its Compliance Inspections 2012-111 (June 2013) 4. When Public Health enters into new contracts with local entities to conduct Fully 2 compliance inspections, it should ensure that it maintains adequate Implemented documented support for the rate it charges for a compliance inspection. 5. Public Health should amend its recent contract with the city of Los Angeles Fully 2 to correct the rate it charges for a local compliance inspection to reflect its Implemented true cost. California State Auditor Report 2015-041 47 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT 6. To ensure that Public Health can more effectively monitor and enforce Fully 2 compliance with the STAKE Act, it should take appropriate steps to ensure Implemented that there are no restrictions placed on the use of the data acquired during the annual retailer assessment that would preclude its use for compliance inspection purposes. 7. To ensure that Public Health can more effectively monitor and enforce Fully 2 compliance with the STAKE Act, it should annually obtain the identifying Implemented information regarding the retailers that sold tobacco to minors during the annual retailer assessment and provide that information to the Food and Drug Branch. 8. To ensure that Public Health can more effectively monitor and enforce Fully 2 compliance with the STAKE Act, it should include the retailers that sold Implemented tobacco to minors during the annual retailer assessment when selecting the retailers it plans to inspect as part of the statewide compliance inspections. California Department of Social Services Department of Social Services: For 5. To ensure the accuracy and consistency of the information on welfare fraud Fully 5 the CalWORKs and Food Stamp activities that counties report and that Social Services subsequently reports Implemented Programs, It Lacks Assessments to the federal government, the Legislature, and internal users, Social Services of Cost-Effectiveness and Misses should take the following steps: Remind counties that they are responsible Opportunities to Improve Counties’ for reviewing the accuracy and consistency of investigation activity reports Antifraud Efforts before submission. 2009-101 (November 2009)* Child Welfare Services: California 1. To ensure that its licensees, including state-licensed foster homes, foster Fully 4 Can and Must Provide Better family agencies, and group homes, are in compliance with applicable Implemented Protection and Support for Abused requirements and that children are protected, Social Services should and Neglected Children complete on-site reviews at least once every five years as required by 2011-101.1 (October 2011)* state law. 7. To encourage continued progress and innovation in keeping children safe, Fully 4 Social Services should add to its current CWS performance metrics a measure Implemented of the percentage of investigatory visits (both immediate and 10-day) completed on time that excludes attempted investigatory visits from its calculation of successful outcomes. Departments of Public Health and 18. To ensure that its efforts funded by the trust fund are preventing or reducing Fully 2 F Social Services: Weaknesses in the incidences of child abuse and neglect, Social Services should evaluate the Implemented Administration of the Child Health and performance measurements annually to assess whether the trust fund’s Safety Fund and the State Children’s programs and services are effective in reducing incidences of child abuse Trust Fund Limit Their Effectiveness and neglect. 2012-105 (November 2012) CORRECTIONS AND REHABILITATION Board of State and Community Corrections Juvenile Justice Realignment: 11. To assist the Legislature in its effort to revise state law to specify the intended Fully 3 Limited Information Prevents goals of juvenile justice realignment, the board should work with stakeholders Implemented a Meaningful Assessment of to propose performance outcome goals to use to measure the success Realignment’s Effectiveness of realignment. 2011-129 (September 2012)* California Correctional Health Care Services‡ California Department of Corrections 6. To determine whether the additional expansion of telemedicine is Resolved 5 A and Rehabilitation: Inmates Sentenced cost-effective within the California correctional system, Prison Health Care Under the Three Strikes Law and a Services should further analyze the cost-effectiveness of telemedicine Small Number of Inmates Receiving through a more robust estimate of savings, including considering Specialty Health Care Represent factors such as the percent of telemedicine consultations that required Significant Costs subsequent in-person visits because the issue could not be addressed 2009-107.2 (May 2010)* through telemedicine. California Department of Corrections 11. Establish a system of oversight at headquarters and at each adult correctional Fully 2 and Rehabilitation and California facility to ensure that personnel specialists are charging the correct number of Implemented N Correctional Health Care Services: Both leave hours for those nonmanagerial, exempt employees working an alternate Agencies Wasted State Resources by work schedule. Improperly Accounting for Leave Taken by Their Employees I2010-1045 (June 2013)*† 13. Establish a system of supervisory oversight that involves reviewing Fully 2 employees’ time sheets and leave balances to ensure that personnel Implemented specialists are entering information into the leave accounting system correctly. 48 California State Auditor Report 2015-041 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT 15. Establish a system for correcting mischarged leave in the leave accounting Fully 2 system and for reviewing errors with the responsible employee whenever Implemented mischarged leave hours are discovered. California Department of Corrections and Rehabilitation California Department of Corrections 2. To address the erroneous sentencing information and inappropriately Fully 5 and Rehabilitation: Inmates Sentenced assigned convictions in its data system, Corrections should create a schedule Implemented Under the Three Strikes Law and a for regular checks of the accuracy of existing sentencing information, as Small Number of Inmates Receiving well as the accuracy with which sentencing information has been assigned Specialty Health Care Represent to convictions. Significant Costs 2009-107.2 (May 2010)* 10. To better communicate to policy makers the annual cost of incarceration, Fully 5 and to provide a more accurate estimate of expenditures associated with Implemented changes in the large leave balances of custody staff—many of whom require relief coverage when they are absent—Corrections should provide a calculation of the annual increase or decrease in its liability for the leave balances of custody staff to better explain the cause of changes in expenditures to the relevant legislative policy and fiscal committees. 11. To better communicate to policy makers the annual cost of incarceration, Fully 5 and to provide a more accurate estimate of expenditures associated with Implemented changes in the large leave balances of custody staff—many of whom require relief coverage when they are absent—Corrections should provide an estimate of the annual cost of leave balances likely to be paid for retiring custody staff to the relevant legislative policy and fiscal committees. Department of Corrections and 3. Once Corrections resumes its use of COMPAS core and reentry assessments, it Fully 4 Rehabilitation: The Benefits of Its should provide ongoing training to classification staff representatives, parole Implemented Correctional Offender Management agents, and others that may administer or interpret COMPAS assessment Profiling for Alternative Sanctions results to ensure that COMPAS is a valuable inmate assessment and Program Are Uncertain planning tool. 2010-124 (September 2011)* TRANSPORTATION Board of Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun Board of Pilot Commissioners for the 2. To ensure that its expenditures are appropriate, the board should Fully 5 Bays of San Francisco, San Pablo and competitively bid contracts with physicians who perform physical Implemented Suisun: It Needs to Develop Procedures examinations of pilots. and Controls Over Its Operations and Finances to Ensure That It Complies With Legal Requirements 2009-043 (November 2009) California Department of Motor Vehicles Special Interest License Plate Funds: 5. Motor Vehicles should periodically assess the cost and benefits of updating Fully 2 H The State Has Foregone Certain its automated systems to reflect current per-plate administrative costs. If Implemented Revenues Related to Special Interest Motor Vehicles determines that doing so is cost-effective, it should update License Plates and Some Expenditures its automated systems to reflect the up-to-date administrative costs for all Were Unallowable or Unsupported these plates. 2012-110 (April 2013)* NATURAL RESOURCES California Department of Forestry and Fire Protection Accounts Outside the State’s 10. To safeguard cost recovery program revenue, Cal Fire should, within the next Fully 2 Centralized Treasury System: six months, develop a process to track civil cost recovery cases statewide to Implemented Processes Exist to Safeguard Money, monitor compliance with policies as well as monitor collection status. but Controls for These Accounts Need Strengthening 11. Cal Fire should continue its efforts to determine what happened to the Resolved 2 2013-107 (October 2013) $13,470 check that was not deposited in the Wildland Fire Fund. California Department of Parks and Recreation Department of Parks and Recreation: 2. The department’s executive management should monitor the budget Fully 2 Weak Procedures Have Led to process closely to prevent any future variances from established policies and Implemented Inconsistent Budgetary Reporting and procedures designed to ensure accurate reporting. Difficulties in Measuring the Impact of Efforts to Keep Parks Open 4. To ensure that any significant changes affecting fund balances proposed by Fully 2 2012-121.1 (February 2013) Finance for presentation in the governor’s budget are presented accurately Implemented and transparently, the department should develop procedures to require higher-level review and approval of such changes by its chief deputy director, director, and potentially the secretary for the Natural Resources Agency. The department should identify levels of significance for the proposed changes in fund balances that would trigger seeking these higher-level approvals. California State Auditor Report 2015-041 49 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT Department of Parks and Recreation: 1. To ensure that districts receive timely budget allocations, the department Fully 2 Flaws in Its Budget Allocation should establish and implement a formal allocation process by January 2014 Implemented Processes Hinder Its Ability to that includes the following: Effectively Manage the Park System • A timeline that mirrors the State’s budget process and describes when the 2012-121.2 (September 2013)* department will provide park districts with draft allocations, revisions to draft allocations, and final allocations. • A description of the roles and responsibilities of key staff involved in the process, including budget office staff, the deputy directors and division chiefs for park operations and the OHMVR division, and district superintendents. 3. To ensure that it can comply with state law in the event that it must close Fully 2 parks or reduce park services in the future, the department should improve its Implemented methodology for developing individual park unit budgets and determining and tracking park-level costs. Specifically, the department should update its description of phase one to adequately explain how it will reconcile individual park costs for fiscal year 2010–11 to the department’s total actual expenditures to operate the parks. 5. To ensure that it can comply with state law in the event that it must close Fully 2 parks or reduce park services in the future, the department should improve its Implemented methodology for developing individual park unit budgets and determining and tracking park-level costs. Specifically, the department should provide training as soon as possible to park operations staff to ensure that they consistently collect the data necessary for phase two. 7. To ensure that the Legislature has the information necessary to make any Fully 2 future decisions related to service reductions or park closures, beginning in Implemented fiscal year 2014–15 the department should provide it with an annual report that details the costs to operate each park unit. 9. To prevent unauthorized leave buyback transactions, the department should Fully 2 establish written policies and procedures requiring the personnel office’s Implemented transactions unit to obtain documentation from managers who request leave buyback transactions. The documentation should specify the authority for the leave buyback and include appropriate authorizing signatures. 10. To prevent unauthorized leave buyback transactions, the department should Fully 2 increase the level of supervisory review to ensure that transactions unit staff Implemented process only authorized and properly coded leave buyback transactions. 12. To improve the effectiveness of the EPRC, the department should update its Resolved 2 administrative manual by March 2014 to specify the members of the EPRC, the members’ roles and responsibilities, and the personnel actions that the EPRC is responsible for reviewing. 13. To improve the effectiveness of the EPRC, the department should establish Resolved 2 policies and procedures by March 2014 to govern the EPRC’s decisions on personnel actions. These policies and procedures should include the specific factors and their relative importance that the members must consider when making decisions and should require the EPRC to document its decisions and the reasons for those decisions. 14. To improve the effectiveness of the EPRC, by March 2014, the department Resolved 2 should require the EPRC to periodically provide a summary report of its decisions to the director’s office so that the director can monitor whether those decisions are consistent with his priorities. 16. To ensure that its position control unit staff do not circumvent state law to Resolved 2 preserve vacant positions, the department should establish procedures that include a process to periodically review any personnel transactions that are not subject to EPRC review. It should provide a summary report of this review to the director’s office and the EPRC. California State Lands Commission State Lands Commission: Because 10. To complete its rent reviews promptly and obtain a fair rental amount for its Fully 2 It Has Not Managed Public Lands leases, the commission should conduct rent reviews on each fifth anniversary Implemented Effectively, the State Has Lost Millions as specified in the lease agreements or consider including provisions in in Revenue for the General Fund its leases that allow for the use of other strategies, such as adjusting rents 2010-125 (August 2011)* annually using an inflation indicator. 11. To ensure that it is charging rent based on the most current value of its Fully 2 properties, the commission should appraise its properties as frequently as the Implemented lease provisions allow—generally every five years. continued on next page . . . 50 California State Auditor Report 2015-041 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT 23. To ensure that as few leases as possible go into holdover, the commission Fully 2 should continue to implement its newly established holdover reduction Implemented procedures and periodically evaluate whether its new procedures are having their intended effect of reducing the number of leases in holdover. ENVIRONMENTAL PROTECTION Department of Toxic Substances Control California Department of Toxic 5. To ensure that it maximizes the recovery of its costs from responsible parties, Fully 1 Substances Control: Its Lack of by October 2014, the department should do the following: Implemented Diligence in Cost Recovery Has • Continue its plan to update policies and procedures for using liens Contributed to Millions in Unbilled and whenever appropriate. Uncollected Costs 2013-122 (August 2014)* 11. The department should continue to resolve its questions about its authority Fully 1 to write off outstanding costs under $5,000. To the extent that it determines it Implemented cannot write off outstanding costs, it should pursue collecting the costs. BUSINESS, CONSUMER SERVICES, AND HOUSING California Department of Housing and Community Development California Department of Housing 3. To meet the intent of the law, HCD should approve and fund for the Catalyst Fully 1 and Community Development: Program only those projects that more directly create or preserve housing Implemented Inconsistent Oversight Has Resulted in opportunities. the Questionable Use of Some Housing Bond Funds 2014-037 (September 2014) Physical Therapy Board of California Physical Therapy Board of California: 3. Consumer Affairs should establish procedures for ensuring that board Fully 3 Although It Can Make Improvements, members attend board member orientation and that those individuals and Implemented It Generally Processes Complaints other designated employees receive all required ethics training. In addition, and Monitors Conflict-of-Interest Consumer Affairs should adhere to the record retention period of five years Requirements Appropriately specified by law for the certificates documenting that designated employees 2011-119 (June 2012)* received ethics training. Bureau for Private Postsecondary Education Bureau for Private Postsecondary 1. To ensure that it does not create unnecessary delays for institutions that desire Fully 1 Education: It Has Consistently Failed to to operate within the State, the bureau should reduce its backlog of licensing Implemented Meet Its Responsibility to Protect the applications by reviewing and streamlining the applications process. Public’s Interests 2013-045 (March 2014)* 8. To ensure that the unlicensed institutions it identifies cease to operate, the Fully 1 bureau needs to use the enforcement mechanisms that state law provides for Implemented sanctioning unlicensed institutions and track all relevant information related to its enforcement actions against these institutions. 9. To comply with state law and to ensure that it effectively manages its Fully 1 inspections of institutions, the bureau should establish a schedule that maps Implemented out its anticipated announced and unannounced inspection dates for each of the institutions it regulates, and ensure that the schedule is consistent with state law. 12. To comply with state law and to ensure that it effectively manages its Fully 1 inspections of institutions, the bureau should establish a mechanism for Implemented tracking the amount of time its staff take to complete each step of its announced inspection process. 16. To comply with state law and to ensure that it effectively manages its Fully 1 inspections of institutions, the bureau should establish a mechanism Implemented for tracking the amount of time it takes to complete each step of its unannounced inspection process. 22. To reduce its backlog of unresolved complaints involving institutions, the Resolved 1 bureau needs to establish benchmarks and monitor them to ensure that the additional staff it requested and Consumer Affairs’ complaint program staff resolve the backlog as expeditiously as possible. California State Athletic Commission State Athletic Commission: Its Ongoing 8. To ensure that it accurately collects revenue, the commission should formalize Fully 2 I Administrative Struggles Call Its Future policies and procedures directing inspectors to take the necessary steps to Implemented Into Question make sure they correctly and consistently calculate taxes, assessments, and 2012-117 (March 2013)* fees in accordance with state law and regulations. California State Auditor Report 2015-041 51 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT LABOR AND WORKFORCE DEVELOPMENT Employment Development Department Employment Development 3. To further enhance its corrective action planning process as a means of Fully 4 Department: Its Unemployment improving the unemployment program, the department should establish Implemented Program Has Struggled to Effectively several key performance targets or benchmarks that are tied to each specific Serve California’s Unemployed in corrective action, to effectively gauge the impact of the actions on its goal of the Face of Significant Workload and achieving the acceptable levels related to the timeliness measures. Fiscal Challenges 2010-112 (March 2011)* Employment Development 1. To improve the quality of the performance reporting it submits to Labor, the Fully 2 Department: It Needs to Address Data department should work with Labor to develop reasonable controls to avoid Implemented Issues to Better Evaluate and Improve reporting overstated and inaccurate performance measures. the Performance of Its Employment Programs for Veterans 9. To assess whether it is doing enough to take advantage of federal Fully 2 2013-102 (October 2013)* requirements that federal contractors give preference to veterans when Implemented hiring, the department should determine why the reported number of veterans receiving employment with federal contractors is so low relative to the number of job referrals made and it should provide appropriate direction to the veterans employment representatives to better leverage the federal contractor job listing. Employment Development 2. To ensure that EDD efficiently acts to take advantage of future collection Fully 1 Department: It Failed to Participate in opportunities, we recommend EDD institute a routine process for staff to Implemented a Federal Program That Would Have identify and thoroughly evaluate ideas for improving EDD’s ability to collect Allowed the State to Collect Hundreds overpayments. This process should require staff to bring promising ideas to of Millions of Dollars the attention of EDD’s senior management so it can give prompt, informed I2012-0651 (March 2014)† consideration to these ideas and document in detail the substance of that consideration. GOVERNMENT OPERATIONS California Department of General Services Disabled Veteran Business Enterprise 4. To ensure that the State enforces its contractual right to obtain a complete Fully 1 Program: Meaningful Performance copy of its procurement data, General Services should take all necessary steps Implemented Standards and Better Guidance by the to ensure that it can extract a reliable copy of all of the State’s procurement California Departments of General data from BidSync so that the data can be used and analyzed to the State’s Services and Veterans Affairs Would benefit. These steps should include testing that the data it obtains from Strengthen the Program BidSync is accurate and complete, and it should be completed before the end 2013-115 (February 2014) of the contract term with BidSync, in September 2014. GENERAL GOVERNMENT California Public Utilities Commission California Public Utilities Commission: 11. To ensure that it does not further overcharge the transportation account, the Fully 1 It Fails to Adequately Ensure commission should require the branch to review annually all branch staff Implemented Consumers’ Transportation Safety and funding distributions and align them with recent time charges. Does Not Appropriately Collect and Spend Fees From Passenger Carriers 2013-130 (June 2014)* LEGISLATIVE, JUDICIAL, AND EXECUTIVE California Department of Justice Armed Persons With Mental Illness: 1. To ensure that it has the necessary information to identify armed prohibited Fully 1§ Insufficient Outreach From the persons with mental illness, Justice should coordinate with the AOC at Implemented Department of Justice and Poor least once a year to share information about court reporting levels and to Reporting From Superior Courts Limit determine the need to distribute additional information to courts about the Identification of Armed Persons reporting requirements and the manner in which to report. In coordinating With Mental Illness with the AOC about potential underreporting, at a minimum Justice should 2013-103 (October 2013) consider trends in the number of reports each court sends and the number of reports that it might expect to receive from a court given the court’s size, location, and reporting history. Whenever Justice identifies a court that it determines may not be reporting all required information, it should request that the court forward all required case information. 15. To ensure that it keeps an accurate and up-to-date list of all mental health Fully 1§ facilities that are required to report individuals with mental illness, at least Implemented twice a year Justice should update its outreach list of mental health facilities by obtaining a list of facilities from Health Care Services. continued on next page . . . 52 California State Auditor Report 2015-041 January 2016 NUMBER OF YEARS RECOMMENDATION APPEARED IN TITLE RECOMMENDATION STATUS THIS REPORT 17. To ensure that it continues to receive information from facilities that currently Fully 1§ report individuals with mental illness and that should continue to report Implemented such individuals, by January 31, 2014, and at least twice a year thereafter Justice should implement a review of the number of reports it receives from individual mental health facilities. These reviews should focus on identifying any significant drops in a facility’s reporting levels and include follow up with facilities that may require additional assistance in reporting. 20. To ensure that it makes correct determinations about whether an individual Fully 1§ is an armed prohibited person, by January 31, 2014, Justice should implement Implemented quality control procedures over APPS unit staff determinations. These procedures should include periodic supervisory review of staff determinations to ensure that staff decisions correctly identify all armed prohibited persons. * Other recommendations pertaining to this audit, which have not been fully implemented, can be found in Table 2. † Before publishing a report of an investigation, the state auditor provides the head of each department or agency involved with a copy of the investigative report, including any recommendations. Therefore, in calculating how long a recommendation has been outstanding, the state auditor uses the date the investigative report was provided to the department or agency, not the date the report was published. The investigative reports for the cases published in I2012‑1 were provided to the involved departments and agencies in October 2012. In May of 2013 we provided case I2010‑1045 to the involved departments and in January 2014 we provided case I2012‑0651 to the involved department. ‡ Prison Health Care Services became California Correctional Health Care Services effective July 5, 2011. § The status of these recommendations changed from fully implemented to not fully implemented for a time as a result of our follow‑up review in July 2015. However, by October 2015, we determined that the department had fully implemented our recommendation. California State Auditor Report 2015-041 53 January 2016 Table 4 Recommendations More Than One Year Old Made to Nonstate Entities (Reports Issued Between January 2011 and October 2014) STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION HIGHER EDUCATION Laney College California’s Postsecondary 3. To ensure that they comply with the 3 October 2015 Fully Educational Institutions: Clery Act by correctly reporting all Implemented Some Institutions Have applicable crimes and disclosing all Not Fully Complied required campus security policies, With Federal Crime institutions should review and adhere Reporting Requirements to applicable guidance related to 2012-032 (October 2012) the Clery Act, including Education’s Office of Postsecondary Education’s (OPE) Handbook for Campus Safety and Security Reporting (OPE handbook) and the Federal Bureau of Investigation’s Uniform Crime Reporting Handbook. 9. To ensure that they comply with the 3 October 2015 Fully Clery Act by correctly reporting all Implemented applicable crimes and disclosing all required campus security policies, institutions should thoroughly review the Clery Act crime statistics and security policy disclosures in their annual security reports for accuracy before publication. LOCAL GOVERNMENT Butte County P Indian Gaming Special 7. To ensure that grant recipients comply 1 * Not Fully  Distribution Fund: Counties’ with state law concerning interest Implemented Benefit Committees Did earned on mitigation grant funds, by Not Always Comply With June 2014, the Butte County benefit State Laws for Distribution committee should establish policies Fund Grants and procedures to verify that grant 2013-036 (March 2014) recipients have placed grant awards in interest-bearing accounts, and that the interest is spent only on activities that mitigate the effect of tribal gaming on local jurisdictions. 19. To ensure that the benefit committee 1 * Not Fully   members and other designated Implemented individuals comply with reform act requirements for filing statements of economic interests, after Butte County’s benefit committee has appointed a filing officer, the filing officer should attend FPPC training and notify designated individuals of their responsibility to submit statements of economic interests and follow up with those who fail to file. continued on next page . . . 54 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION California Statewide Communities Development Authority Conduit Bond Issuers: Issuers 2. To be better informed about the 3 Will Not Will Not Complied With Key Bond compensation of their consultants, Implement Implement Requirements, but Two including any potential conflicts of Joint Powers Authorities’ interest, California Communities and Compensation Models Raise Municipal Finance should require Conflict-of-Interest Concerns the consulting firms that staff their 2011-118/2011-613 organizations to disclose the amount (August 2012) and structure of compensation provided to individual consultants, including disclosing whether any of this compensation is tied to the volume of bond sales. 4. In implementing its January 2012 3 July 2015 Fully contracting policy, California Implemented Communities should either periodically subject existing contracts to competitive bidding or perform some other price comparison analysis to ensure that the public funds it oversees are used effectively. California Water Service Company Antelope Valley Water Rates: 7. To show water customers that they are 1 July 2015 Fully Various Factors Contribute attempting to keep rates reasonable, Implemented R to Differences Among the California Water Service Company Water Utilities should maintain documentation 2013-126 (July 2014) to demonstrate any cost savings expected or achieved as a result of its cost-saving efforts. City of Vernon City of Vernon: Although 4. To increase accountability and 3 July 2016 Not Fully Reform Is Ongoing, Past Poor transparency in its governance, the city Implemented Decision Making Threatens Its should develop a formal policy that Financial Stability describes the circumstances under 2011-131 (June 2012) which revenues can be transferred from its power department, and the limits and permissible uses of transferred revenue. 9. To ensure that it develops complete 3 November Not Fully and appropriate personnel policies and 2015 Implemented procedures, the new human resources director should ensure that the city's policies and procedures include, at a minimum, an improved methodology for and analysis of future salary surveys, ensuring that they are performed by staff or a consultant with experience and expertise in the area of salary surveys. 11. To ensure accurate reporting and 3 September Fully payment of retirement benefits, 2015 Implemented the city should work with California Public Employees' Retirement System (CalPERS) to resolve the reported findings and observation noted in CalPERS April 2012 audit report within a reasonable period of time. 16. To better control contract 3 * Not Fully  expenditures and ensure that it Implemented receives the best value for the services it purchases, the city should require that all contracts contain a well-defined scope of work and deliverables that a sufficiently detailed invoice can be measured against. California State Auditor Report 2015-041 55 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION 20. To the extent that the city implements 3 * Not Fully  policies that affect contracts, the city Implemented should also ensure that it reviews all current contracts and amends them, if necessary, to comply with newly established policies. 27. To address the structural deficit in 3 July 2016 Not Fully its general fund, the city should seek Implemented long-term solutions to balance the general fund's expenditures and revenues and lessen its reliance on transfers from other city funds. These solutions could include revenue increases, such as the proposed increased and new parcel tax, as well as looking for ways to reduce expenditures. 28. The city should clearly present the 3 July 2016 Not Fully general fund structural deficit to Implemented the city council and the public in a budget that includes narrative and summary information to help users understand the city's budget process and its priorities and challenges, and that incorporates the elements for improved budgeting practices recommended by the Government Finance Officers Association (GFOA). 34. To ensure that it can demonstrate 3 July 2016 Not Fully sufficient analysis and provide Implemented justification for its decisions on significant energy-related transactions, the city should develop an integrated energy strategy that examines all elements of its energy needs, sources, and objectives. 35. To ensure that it can demonstrate 3 July 2016 Not Fully sufficient analysis and provide Implemented justification for its decisions on significant energy-related transactions, the city should create a formal process and guidelines that include the following: identifying the benefits and risks of proposed transactions, quantifying the benefits and risks of proposed transactions, evaluating and comparing proposed transactions against alternative proposals, quantifying the impact of proposed transactions on short-term and long-term rates paid by the city's energy customers, seeking an independent validation of the fair market value of proposed transactions, and documenting and communicating the findings of the evaluation process to the city council. 38. To ensure that any future decisions 3 July 2016 Not Fully to enter into interest rate swaps Implemented are carefully considered, the city should develop and follow a process that thoroughly analyzes the risks and benefits of the potential swap transaction. continued on next page . . . 56 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION 39. To ensure that any future decisions 3 July 2016 Not Fully to enter into interest rate swaps are Implemented carefully considered, the city should specifically disallow the use of derivatives for speculative purposes and should require the retention of the documents and analyses that support the decision to enter into the swap. Humboldt County Indian Gaming Special 2. To help ensure that they meet the 3 Will Not Will Not Distribution Fund: Local grant requirements established in the Implement Implement O Governments Continue to Government Code, counties should Have Difficulty Justifying require that the county auditor review Distribution Fund Grants each grant application to ensure a 2010-036 (February 2011) rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact. Los Angeles County Department of Children and Family Services Los Angeles County 2. To ensure that child abuse and neglect 3 Fall 2015 Not Fully Department of Children allegations receive timely resolution, Implemented and Family Services: the department should assess whether Management Instability it needs to permanently allocate more Hampered Efforts to Better resources to investigate allegations of Protect Children child abuse and neglect. 2011-101.2 (March 2012) 4. To ensure that it is placing children 3 Will Not Will Not only in safe homes, the department Implement Implement should measure its performance and adjust its practices to adhere to state law, which requires that all homes be assessed prior to the placement of the child. 5. To improve its process for placing 3 Will Not Will Not children with a relative, the Implement Implement department should analyze the best practices used by other county child welfare services agencies for such placements. The department should then implement changes in its practices so that relatives and their homes are approved prior to placement, as required by state law. Los Angeles Emergency Medical Services Agency Los Angeles County: Lacking 9. To determine the adequacy and 1 2016 Not Fully a Comprehensive Assessment effectiveness of the helicopter Implemented Q of Its Trauma System, It services it provides to residents of Cannot Demonstrate That It underserved areas who suffer a trauma Has Used Measure B Funds injury, EMS should collect, assess, to Address the Most Pressing and report accurate and complete Trauma Need data on the following: the number 2013-116 (February 2014) of cancelled flights in each of these underserved areas, including the method of transportation used instead of helicopters and the transport times and trauma patient outcomes. California State Auditor Report 2015-041 57 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION Los Angeles Unified School District School Safety and 5. To ensure that it is effectively 2 July 2015 Fully Nondiscrimination Laws: preventing and addressing incidents Implemented S Most Local Educational of discrimination, harassment, Agencies Do Not Evaluate intimidation, and bullying in its the Effectiveness of schools, Los Angeles Unified should Their Programs, and the ensure that school sites evaluate the State Should Exercise Stronger Leadership effectiveness of the programs they choose to implement. 2012-108 (August 2013) 6. To ensure that it is effectively 2 November Fully preventing and addressing incidents 2014 Implemented of discrimination, harassment, intimidation, and bullying in its schools, Los Angeles Unified should resolve complaints within 60 calendar days regardless of the complaint process selected. Los Angeles County Los Angeles County: Lacking 1. To determine whether its trauma 1 Will Not Will Not a Comprehensive Assessment system is appropriately designed Implement Implement Q of Its Trauma System, It and serving the needs of residents in Cannot Demonstrate That It underserved areas and the needs of Has Used Measure B Funds the most at-risk populations, the board to Address the Most Pressing should use Measure B funds to engage Trauma Needs the College of Surgeons by July 2014 to 2013-116 (February 2014) perform a comprehensive assessment of the trauma system and then make the results available to the public. To the extent the assessment identifies weaknesses in the trauma system, the board should develop strategies to address those weaknesses where feasible. Specifically, the board should ask the College of Surgeons to do the following: assist the board in better defining and identifying underserved areas in Los Angeles. 2. To determine whether its trauma 1 Will Not Will Not system is appropriately designed Implement Implement and serving the needs of residents in underserved areas and the needs of the most at-risk populations, the board should use Measure B funds to engage the College of Surgeons by July 2014 to perform a comprehensive assessment of the trauma system and then make the results available to the public. To the extent the assessment identifies weaknesses in the trauma system, the board should develop strategies to address those weaknesses where feasible. Specifically, the board should ask the College of Surgeons to do the following: review Measure B allocations to ensure that they are addressing the most pressing needs of at-risk populations in Los Angeles. continued on next page . . . 58 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION 3. To determine whether its trauma 1 Will Not Will Not system is appropriately designed Implement Implement and serving the needs of residents in underserved areas and the needs of the most at-risk populations, the board should use Measure B funds to engage the College of Surgeons by July 2014 to perform a comprehensive assessment of the trauma system and then make the results available to the public. To the extent the assessment identifies weaknesses in the trauma system, the board should develop strategies to address those weaknesses where feasible. Specifically, the board should ask the College of Surgeons to do the following: assess the adequacy of helicopter services it provides in underserved areas. 4. To determine whether its trauma 1 Will Not Will Not system is appropriately designed Implement Implement and serving the needs of residents in underserved areas and the needs of the most at-risk populations, the board should use Measure B funds to engage the College of Surgeons by July 2014 to perform a comprehensive assessment of the trauma system and then make the results available to the public. To the extent the assessment identifies weaknesses in the trauma system, the board should develop strategies to address those weaknesses where feasible. Specifically, the board should ask the College of Surgeons to do the following: analyze how EMS might better use the data it collects to evaluate, improve, and report continuously on its trauma system. 5. To ensure that it allocates Measure B 1 December Not Fully funds to address the most significant 2015 Implemented needs of residents within its trauma system, the board should reinstate a Measure B oversight committee, with participation from departments with trauma, EMS, and bioterrorism preparedness expertise, as well as representatives of the public. The oversight committee should review trauma system and other county needs annually and advise the board on Measure B expenditures. As part of its responsibilities, the oversight committee should reevaluate the Measure B allocation approach, taking into consideration the results of Los Angeles's comprehensive assessment and the effects of the Act, and issue a report on its findings no later than December 2015. California State Auditor Report 2015-041 59 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION 10. Los Angeles should undertake 1 August 2015 Fully formal discussions with Pomona's Implemented management regarding the hospital becoming a trauma center. In doing so, Los Angeles should analyze its current Measure B allocations to determine whether financial opportunities exist that would meet the needs of Pomona and present the resulting analysis to Pomona. Further, it should document its efforts and the resulting outcome so that both voters and taxpayers are aware of the diligence Los Angeles has undertaken in fulfilling the spirit of Measure B. Los Banos Unified School District Cafeteria Funds: Local 34. With regard to excess net cash 1 February Fully Education Agencies resources, Local Education Agencies 2015 Implemented U Generally Use the Funds for should develop a spending plan to Appropriate Purpose eliminate their net cash resources 2013-046 (February 2014) in excess of the amount allowed by June 30, 2014. 38. With regard to excess net cash 1 August 2015 Fully resources, Local Education Agencies Implemented should submit a spending plan to CDE for approval by June 30, 2014. Quartz Hill Water District Antelope Valley Water Rates: 1. To ensure that water customers are 1 March 2016 Not Fully R Various Factors Contribute able to have an understanding of how Implemented to Differences Among rate increases are determined, Quartz Water Utilities Hill Water District should include 2013-126 (July 2014) information in its public notices providing reasonably sufficient details of the basis of its fee methodology. 5. To ensure that water customers are 1 March 2016 Not Fully aware of pass-through rate increases, Implemented Quartz Hill Water District should adopt a schedule of fees showing how these increases will affect its tiered usage charges before the new rates take effect. 6. To ensure that its water customers 1 March 2016 Not Fully have access to Quartz Hill Water Implemented District's rate methodology and other factors that help it determine rate increases, the utility should keep all documentation it uses to calculate or otherwise explain the need for rate increases for as long as the rate increases are in effect. 13. To assist low-income water customers, 1 Will Not Will Not Quartz Hill water District should work Implement Implement with its governing body to consider the feasibility of using revenues from sources other than water rates to implement rate assistance programs for low-income water customers. continued on next page . . . 60 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION Riverside County Indian Gaming Special 3. To help ensure that they meet the 3 June 2016 Not Fully O Distribution Fund: Local grant requirements established in the Implemented Governments Continue to Government Code, counties should Have Difficulty Justifying require that the county auditor review Distribution Fund Grants each grant application to ensure a 2010-036 (February 2011) rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact. Indian Gaming Special 3. To comply with state law, benefit 1 * Not Fully  Distribution Fund: Counties' committees should ensure that they Implemented P Benefit Committees Did obtain sufficient documentation Not Always Comply With from grant applicants to demonstrate State Laws for Distribution that proposed projects mitigate Fund Grants casino impacts. If applicable, that 2013-036 (March 2014) documentation should demonstrate that the requested funding represents a correct proportionate share of the costs attributable to casino impacts. Sacramento City Unified School District School Safety and 8. To ensure that it is effectively 2 September Fully Nondiscrimination Laws: preventing and addressing incidents 2015 Implemented S Most Local Educational of discrimination, harassment, Agencies Do Not Evaluate intimidation, and bullying in its the Effectiveness of schools, Sacramento City Unified Their Programs, and the should ensure that school site staff State Should Exercise Stronger Leadership complete the training required under its anti-bullying policy. 2012-108 (August 2013) 10. To ensure that it is effectively 2 July 2015 Fully preventing and addressing incidents Implemented of discrimination, harassment, intimidation, and bullying in its schools, Sacramento City Unified should measure the effectiveness of its school safety programs at both the district and school site levels. 13. To ensure that it is effectively 2 March 2015 Fully preventing and addressing incidents Implemented of discrimination, harassment, intimidation, and bullying in its schools, Sacramento City Unified should update its policies and procedures to calculate the state-mandated time limit for resolving complaints in accordance with state regulations. 15. To ensure that it is effectively 2 * Not Fully  preventing and addressing incidents Implemented of discrimination, harassment, intimidation, and bullying in its schools, Sacramento City Unified should ensure that school sites follow the complaint procedures established in its policies. California State Auditor Report 2015-041 61 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION Salinas Valley Memorial Healthcare System Salinas Valley Memorial 5. To help reduce its operating costs and 3 October 2016 Not Fully Healthcare System: Increased improve its overall financial situation, Implemented Transparency and Stronger the Health Care System should Controls Are Necessary as continue to try to modify its employee It Focuses on Improving Its benefits, such as paid time off, so they Financial Situation are aligned with industry practice. 2011-113 (March 2012) San Diego County Indian Gaming Special 4. To help ensure that they meet the 3 Will Not Will Not Distribution Fund: Local grant requirements established in the Implement Implement O Governments Continue to Government Code, counties should Have Difficulty Justifying require that the county auditor review Distribution Fund Grants each grant application to ensure a 2010-036 (February 2011) rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact. Indian Gaming Special 10. If San Diego County's benefit 1 Will Not Will Not Distribution Fund: Counties' committee believes that its processes Implement Implement P Benefit Committees Did for distributing grant funds are vital Not Always Comply With to its effective management of State Laws for Distribution distribution fund grants, it should Fund Grants seek legislative authority to change 2013-036 (March 2014) its process. Otherwise, San Diego County's benefit committee should refrain from placing limits on the time available for grant recipients to spend the grant funds. City and County of San Francisco Human Services Agency Child Welfare Services: The 6. To ensure that the statewide case 1 August 2015 Fully V County Child Welfare Services management system contains Implemented Agencies We Reviewed accurate and complete information for Must Provide Better each referral, the San Francisco County Protection for Abused and CWS agency should update its policies Neglected Children or otherwise provide clear guidance to 2013-110 (April 2014) social workers about the importance of ensuring that all alleged perpetrators, victims, and types of maltreatment are accurately recorded upon intake. 8. To ensure that social workers are 1 August 2015 Fully making reasonable and timely efforts Implemented to make in-person contact with children who are allegedly being maltreated, the San Francisco County CWS agency should develop clear policies for how frequently social workers must follow up with alleged victims in the event that initial attempts at contact are unsuccessful. continued on next page . . . 62 California State Auditor Report 2015-041 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION 10. To ensure that social workers are 1 August 2015 Fully making reasonable and timely Implemented efforts to make in-person contact with children who are allegedly being maltreated, the San Francisco County CWS agency should develop clear policies about the method and duration of social workers attempts at making contact with hard-to-reach families, and clearly state under what circumstances a referral may be closed for lack of contact. 34. To improve its coordination and 1 August 2015 Fully communication with local law Implemented enforcement, the San Francisco County CWS agency should consider entering into a memorandum of understanding with the applicable law enforcement agency that delineates how the two agencies will share information and assist each other in responding to child maltreatment. Santa Barbara County Indian Gaming Special 5. To help ensure that they meet the 3 Will Not Will Not Distribution Fund: Local grant requirements established in the Implement Implement O Governments Continue to Government Code, counties should Have Difficulty Justifying require that the county auditor review Distribution Fund Grants each grant application to ensure a 2010-036 (February 2011) rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact. Santa Clara County Mental Health Department Mental Health Services Act: 21. Santa Clara County should ensure 2 November Fully The State's Oversight Has that all MHSA invoices are adequately 2014 Implemented Provided Little Assurance of supported with information that the Act's Effectiveness, and demonstrates that MHSA services T Some Counties Can Improve were provided. Measurement of Their Program Performance 2012-122 (August 2013) Shasta County Indian Gaming Special 6. To help ensure that they meet the 3 Next Not Fully O Distribution Fund: Local grant requirements established in the Funding Implemented Governments Continue to Government Code, counties should Cycle Have Difficulty Justifying require that the county auditor review Distribution Fund Grants each grant application to ensure a 2010-036 (February 2011) rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact. California State Auditor Report 2015-041 63 January 2016 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS ACTUAL/ AUDITEE DID NOT AUDITEE DID NOT RECOMMENDATION ESTIMATED SUBSTANTIATE ADDRESS ALL REPORT TITLE, NUMBER, AND APPEARED IN THIS DATE OF ITS CLAIM OF FULL ASPECTS OF THE ISSUE DATE RECOMMENDATION ANNUAL REPORT COMPLETION STATUS IMPLEMENTATION RECOMMENDATION 30. To help ensure that they meet the 3 June 2016 Not Fully grant requirements established in the Implemented Government Code, counties should ensure that benefit committees' conflict-of-interest codes comply with the political reform act by reviewing the act and their codes, and changing the codes as necessary to meet the act's requirements. * Contrary to the California State Auditor’s determination, the auditee believes it has fully implemented the recommendation. 64 California State Auditor Report 2015-041 January 2016 IMPLEMENTATION OF CHAPTER 452, STATUTES OF 2006 (SB 1452) The Accountability Act requires state agencies audited or investigated by the California State Auditor (state auditor) to provide updates on their implementation of audit recommendations. The state auditor’s long standing practice, which is consistent with generally accepted government auditing standards, is to request audited entities to provide written updates on their implementing audit recommendations 60 days, six months, and one year after the audit report’s public release date. For investigative reports state law requires state agencies that are the subject of an investigation to provide updates on their implementation of recommendations within 60 days of receiving the report and monthly thereafter until the agency has taken final action. 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 the state auditor 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 if 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 are more than one year old and not yet fully implemented. NINTH ANNUAL REPORT In fall 2015 the state auditor provided written notice to audited and investigated entities regarding recommendations that were related to reports issued from November 2008 through October 2014, more than one year old, and not fully implemented. Table 1, which appears on pages 5 and 6, shows recommendations more than five years old that were not fully implemented as of the agencies’ latest responses. 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 7 through 44, summarizes and provides information on recommendations that the state auditor determined have not been fully implemented for audits and investigations issued between November 2009 and October 2014. Table 3, beginning on page 45, summarizes information on recommendations that have been fully implemented since last year’s report or since the agencies’ one-year responses. Finally, Table 4, beginning on page 53, summarizes all recommendations more than one year old made to nonstate entities from January 2011 through October 2014 and their current implementation status. Additional information about each recommendation is available at the state auditor’s website. The website includes each agency’s response to the current status of outstanding recommendations. The website also includes the audit or investigative 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.