Status of Recommendations

Recommendations Not Fully Implemented After One Year The Omnibus Audit Accountability Act of 2006 January 2020 REPORT 2019-041 CALIFORNIA STATE AUDITOR 621 Capitol Mall, Suite 1200 | Sacramento | CA | 95814 916.445.0255 | TTY 916.445.0033 For complaints of state employee misconduct, contact us through the Whistleblower Hotline: 1.800.952.5665 Don’t want to miss any of our reports? Subscribe to our email list at auditor.ca.gov For questions regarding the contents of this report, please contact Margarita Fernández, Chief of Public Affairs, at 916.445.0255 This report is also available online at www.auditor.ca.gov | Alternate format reports available upon request | Permission is granted to reproduce reports Elaine M. Howle State Auditor January 9, 2020 2019‑041 The Governor of California President pro Tempore of the Senate Speaker of the Assembly State Capitol Sacramento, California 95814 Dear Governor and Legislative Leaders: Consistent with the Omnibus Audit Accountability Act of 2006 (Government Code sections 8548.7 and 8548.9), my office presents this special report to the Joint Legislative Audit Committee, Joint Legislative Budget Committee, and Department of Finance. This report notes that from November 2012 through October 2018, our office issued 225 reports on audits and investigations of state agencies. Those reports included 1,800 recommendations and, as of October 2019, state agencies had fully implemented 1,493, or 83 percent, of them. However, we identified 307 unaddressed recommendations that were more than one year old. Similarly, we issued 79 reports to nonstate entities, such as counties or school districts. Those reports included 766 recommendations and, as of October 2019, the nonstate entities had implemented 615, or 80 percent, of them. In addition to identifying which recommendations have and have not been fully implemented, the California State Auditor website displays written responses from each agency or entity explaining the status of each recommendation. The website also provides agency and entity responses for recommendations that have not been fully implemented, which explain when or if these recommendations will be fully implemented. Our audit and investigative efforts bring the greatest return when agencies act upon the findings and recommendations we issue. An example of an agency taking effective action on our recommendations is the Department of Motor Vehicles (DMV) following our April 2017 release of Report 2016–121, which detailed our audit of disabled person parking placards (placards) and disabled person or disabled veteran license plates (plates). Our findings described how the benefits of placards and plates—which allow individuals with disabilities to park in designated spaces, in metered spaces at no charge, or in time-limited spaces for as long as necessary—create a significant incentive for misuse. We found that the DMV had not sufficiently ensured that applications for placards or plates were legitimate, allowing for fraudulent use, and it had not canceled placards for thousands of individuals who were likely deceased, increasing the risk that others could misuse those placards. As of October 2019, the DMV had fully implemented 16 of our 17 recommendations designed specifically to reduce fraud and deter placard misuse. By implementing the recommendations, the DMV is helping to ensure that those with disabilities have the accessible parking to which their placards and plates entitle them. If you would like more information about any of the background or recommendations in this report, please contact Margarita Fernández, Chief of Public Affairs, at (916) 445-0255. Respectfully submitted, ELAINE M. HOWLE, CPA California 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 2019-041 v January 2020 Contents Introduction 1 Table 1 Recommendations Made to State Entities That Are More Than Five Years Old and Are Still Not Fully Implemented 5 Table 2 Recommendations Made to State Entities That Are More Than One Year Old and Are Still Not Fully Implemented 9 Table 3 Recommendations Made to Nonstate Entities That Are More Than One Year Old and Are Still Not Fully Implemented 67 vi California State Auditor Report 2019-041 January 2020 Blank page inserted for reproduction purposes only. California State Auditor Report 2019-041 1 January 2020 INTRODUCTION As required by the Omnibus Audit Accountability Act of 2006 (Accountability Act), the California State Auditor (State Auditor) presents her report on the status of recommendations that are more than one year old and have not been fully implemented by the audited entities. The Accountability Act requires state agencies audited or investigated by the State Auditor to provide updates on their implementation of associated 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 implementation of 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 reports, and monthly thereafter until the agency has taken final action. As the State Auditor implemented the Accountability Act, it retained these prescribed timeframes as the intervals at which agencies must report on their implementation of audit recommendations. The State Auditor first notified all state agencies of their responsibilities under the Accountability Act and the State Auditor’s plans for implementing these requirements in May 2007. Since that time, the State Auditor has annually provided a reminder to relevant state agencies regarding recommendations issued that were more than a year old and not fully implemented. RESULTS IN BRIEF State Entities From November 2012 through October 2018, the State Auditor issued 225 reports that related to audits or investigations of state agencies. These reports were requested through the Joint Legislative Audit Committee, legislation, or as the result of an investigation.1 The State Auditor made 1,800 recommendations to the audited state agencies in those reports, of which 1,493 have been fully implemented. However, the State Auditor identified 307 recommendations made to 42 agencies that had been outstanding at least one year and remain not fully implemented as of October 2019.2 Nonstate Entities From November 2012 through October 2018, the state auditor issued 79 reports that included nonstate entities, and made 766 recommendations to these entities. As of October 2019, the State Auditor identified 151 recommendations issued to 47 nonstate entities that are more than one year old and not fully implemented. 1 The statewide single audit (financial and federal compliance audits) is mandated as a condition of California receiving federal funding. The State Auditor follows up on recommendations made in those audits each year in the State Auditor’s annual report 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. Those recommendations are included in a separate report to the Legislature. 2 California State Auditor Report 2019-041 January 2020 Importance of Implementing Recommendations The State Auditor’s audit and investigative efforts bring the greatest return when agencies act upon the findings and recommendations. For example, in April 2017, the State Auditor released an audit concerning the Department of Motor Vehicles’ (DMV) disabled person parking placard program. Disabled person parking placards (placards) and disabled person or disabled veteran license plates (plates) allow people to park in parking spaces for individuals with disabilities, in metered spaces without paying the meter, and in time-limited spaces without having to worry about those limitations. However, these benefits create a significant incentive for misuse. The State Auditor found that DMV does not sufficiently ensure that applications for placards or plates are legitimate. Consequently, DMV may be allowing people to fraudulently obtain placards. The audit also found that DMV had not cancelled placards for thousands of individuals who are likely deceased, increasing the risk that others may misuse the placards. As of October 2019, DMV fully implemented 16 of 17 recommendations made by the State Auditor, designed specifically to reduce fraud and deter placard misuse. When individuals who do not need disabled placards use them, it deprives people with disabilities of the opportunity to have convenient parking. By implementing the recommendations, DMV is helping to ensure that those with disabilities are able to take advantage of the benefits of their placards and plates. In October 2019, the State Auditor mailed notices to audited and investigated entities regarding recommendations more than a year old and not fully implemented, corresponding to reports issued from November 2012 through October 2018. The tables beginning on page 5 summarize and provide information on recommendations issued between November 2012 and October 2018. Table 1 shows recommendations more than five years old, issued between November 2012 and October 2013, which have not been fully implemented as of the agencies’ latest response. Because the recommendations shown in Table 1 are more than five years old, the State Auditor will not reassess them in subsequent reports. Table 2, beginning on page 9, summarizes recommendations that have not been fully implemented for audits and investigations pertaining to state entities, issued between November 2013 and October 2018. Table 3, beginning on page 67, summarizes recommendations more than one year old made to nonstate entities. As indicated on Table 2 and Table 3, the State Auditor did not always agree with agency assertions that certain recommendations were fully implemented. Two columns in these tables provide the State Auditor’s reason for disagreement. The symbol appears in the tables next to the audit number whenever an audit has recommendations to more than one agency appearing in this report. Please refer to the index on page 3. California State Auditor Report 2019-041 3 January 2020 Index Reference for Reports Featuring Recommendations to Multiple Entities REPORT ENTITIES WITH RECOMMENDATIONS State Entities With Recommendations—Included in Tables 1 and 2 A 2012-110 California Governor's Office of Emergency Services, California Natural Resources Agency, Department of Motor Vehicles B 2013-109 California Public Utilities Commission, Public Advocates Office C 2014-116 California Department of Technology, Department of Consumer Affairs D 2015-131 California Department of Social Services, Medical Board of California E 2016-126 California Department of Justice, California Department of Social Services F 2016-130 University of California; University of California, Board of Regents G 2016-136 California Department of Education, California Department of Justice H 2017-109 California Department of Public Health, Department of Health Care Services, Office of Statewide Health Planning and Development I 2017-117 Department of Health Care Services, Mental Health Services Oversight and Accountability Commission J 2017-119 California State University Channel Islands, Sacramento State University, San Diego State University, Sonoma State University, The California State University K I2018-1 California Correctional Health Care Services, California Department of Corrections and Rehabilitation Nonstate Entities With Recommendations—Included in Table 3 L 2013-036 County of Butte, County of San Diego M 2014-132 Hesperia Water District, Victorville Water District N 2015-115 County of Alameda, County of Santa Clara O 2015-134 City of Novato, City of Pasadena P 2016-036 County of Fresno, County of San Diego Q 2016-141 Acton-Agua Dulce Unified School District, Antelope Valley Union High School District, New Jerusalem Elementary School District R 2017-032 Bakersfield College, Peralta Community College District S 2017-101 Los Angeles County Sheriff's Department, Sacramento County Sheriff's Department, San Diego County Sheriff's Department T 2017-104 Los Angeles County Office of Education, Los Angeles Regional Adult Education Consortium, Montebello Unified School District State and Nonstate Entities With Recommendations—Included in Tables 2 and 3 U 2015-112 California Department of Education, East Side Union High School District, Long Beach Unified School District V 2015-130 California Department of Justice, Los Angeles Police Department W 2016-112 California Department of Education, San Juan Unified School District X 2016-139 California Department of Education, San Francisco Unified School District, Stockton Unified School District Y 2017-102 Cerritos College, Chancellor of the California Community Colleges, Foothill-De Anza Community College District, Los Rios Community College District Z 2017-107 Santa Clara County Registrar of Voters, Secretary of State's Office AA 2017-116 California Department of Education, Community Child Care Council of Santa Clara County BB 2017-118 Los Angeles Regional Water Quality Control Board, State Water Resources Control Board CC 2017-131 California Department of Justice, Los Angeles Police Department, Stanislaus County Sheriff's Department DD 2018-106 Alameda County Sheriff's Office, California Department of Corrections and Rehabilitation Additional information on 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. 4 California State Auditor Report 2019-041 January 2020 Blank page inserted for reproduction purposes only. California State Auditor Report 2019-041 5 January 2020 Table 1 Recommendations Made to State Entities That Are More Than Five Years Old and Are Still Not Fully Implemented (Reports Issued From November 2012 Through October 2013) NUMBER OF YEARS ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN COMPLETION THIS REPORT BUSINESS, CONSUMER SERVICES, HOUSING California State Athletic Commission State Athletic Commission: Its 7. To ensure that it adequately tracks critical information related to 6 Ongoing Ongoing Administrative Struggles its basic functions and mission, the commission should work with Call Its Future Into Question Consumer Affairs to ensure that the new online program will meet its 2012‑117 (March 2013) needs and requirements. Once the program is in place, the commission should use it as its central means for tracking its operations. 9. To ensure that it accurately collects revenue, the commission should 6 Will Not calculate the pension assessment by counting all the complimentary Implement 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 that describe its 6 January process for determining its ticket assessment for the neurological 2021 account so that it avoids the use of underground regulations. CORRECTIONS AND REHABILITATION California Department of Corrections and Rehabilitation California Department of 4. Adjust current employees’ leave balances in the leave accounting 6 Unknown Corrections and Rehabilitation and system to correct any improper charging of leave identified by California Correctional Health Care the audit. Services: Both Agencies Wasted 6. In instances where the audit has determined that an employee’s leave 6 Unknown State Resources by Improperly balance was mischarged but the employee subsequently departed Accounting for Leave Taken by Their state service, take appropriate measures to remedy any resulting Employees incorrect compensation of the employee for unused leave upon his I2010‑1045 (June 2013)* or her departure, including by seeking repayment of any amount overpaid to the employee. GENERAL GOVERNMENT California Department of Veterans Affairs California Department of 5. To better utilize unused space at the veterans homes, and to serve 6 December Veterans Affairs: It Has Initiated more veterans within legal restrictions, CalVet should use the 2019 Plans to Serve Veterans Better information in the Yountville veterans home master plan to develop a and More Cost‑Efficiently, but plan for using unused space at that home to generate revenue and/or Further Improvements Are Needed serve more veterans. 2012‑119 (May 2013) 11. To ensure it is maximizing its ability to serve veterans in the State’s 6 December veterans homes, CalVet should follow through with its plan to assess 2019 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. continued on next page . . . 6 California State Auditor Report 2019-041 January 2020 NUMBER OF YEARS ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN COMPLETION THIS REPORT 15. To allow for public input and to prevent any legal challenges that 6 March its policy of capping members’ fees, its $165 monthly income‑ 2021 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. 17. To more effectively and efficiently meet state purchasing and 6 December procurement requirements, CalVet should continue implementing 2020 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 Public Utilities Commission California Public Utilities 2. The commission should determine the cause of its lack of compliance 6 December Commission: Despite Administrative with state law requiring it to issue award decisions within 75 days of 2019 Weaknesses, It Has Generally the date an intervenor submits a compensation claim, and it should Awarded Compensation to determine what actions to take to rectify the problem. The commission Intervenors in Accordance With should ensure that it has sufficient information, such as detailed State Law tracking information regarding claims, to identify where in the process 2012‑118 (July 2013) 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 should conduct a 6 December comprehensive market rate study and update it periodically. 2019 California Department of Public Health Developmental Centers: 18. To improve its enforcement, each year Public Health should evaluate 6 July Poor‑Quality Investigations, Outdated the effectiveness of its enforcement system across all types of health 2020 Policies, Leadership and Staffing facilities, including those in developmental centers, prepare the Problems, and Untimely Licensing required annual report, and, if called for, recommend legislation to Reviews Put Residents at Risk improve the enforcement system and enhance the quality of care. 2012‑107 (July 2013) Department of Health Care Services Mental Health Services Act: 3. To ensure that counties have the needed guidance to implement 6 March The State’s Oversight Has Provided and evaluate their MHSA programs, Health Care Services should 2020 Little Assurance of the Act’s coordinate with the Accountability Commission and issue guidance or Effectiveness, and Some Counties regulations, as appropriate, for Facilities programs and for other MHSA Can Improve Measurement of Their requirements, such as a prudent reserve. Program Performance 5. To ensure that counties have the needed guidance to implement and 6 December 2012‑122 (August 2013) evaluate their MHSA programs, Health Care Services should collaborate 2019 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 entities can 6 December evaluate MHSA programs and assist the Accountability Commission in 2020 its efforts, Health Care Services should collect complete and relevant MHSA data from the counties. 18. Health Care Services should develop standardized data collection 6 December guidelines or regulations, as appropriate, that will address 2020 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. California State Auditor Report 2019-041 7 January 2020 NUMBER OF YEARS ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN COMPLETION THIS REPORT K–12 EDUCATION California Department of Education California Department of 2. To demonstrate its willingness to fairly evaluate regional expenditures, 6 Will Not Education: Despite Some Education should allow San Joaquin to reimburse its general fund for Implement Improvements, Oversight of the the vehicle purchase Education incorrectly disallowed. Migrant Education Program Remains 14. To address a lack of detailed migrant program service and outcome 6 June Inadequate data, Education should either expand the capabilities of its existing 2020 2012‑044 (February 2013) statewide databases or implement additional systems that would allow regions to capture more detailed data about migrant students. School Safety and 19. To provide stronger leadership with respect to school safety 6 Will Not Nondiscrimination Laws: Most and nondiscrimination laws, Education, with direction from the Implement Local Educational Agencies Do Not superintendent of public instruction, should use data from the kids Evaluate the Effectiveness of Their survey and reported suspensions and expulsions to evaluate the levels Programs, and the State Should of discrimination, harassment, intimidation, and bullying students Exercise Stronger Leadership encounter and to determine the effectiveness of its own and the LEAs’ 2012‑108 (August 2013) efforts, and report the results to the Legislature by August 1, 2014. LEGISLATIVE, JUDICIAL, AND EXECUTIVE California Department of Justice Armed Persons With Mental 23. To reduce the risk that it may not identify an armed prohibited person, 6 July Illness: Insufficient Outreach From Justice should revise its electronic matching process to use all personal 2019 the Department of Justice and identifying numbers available in its databases. Poor Reporting From Superior Courts Limit the Identification of Armed Persons With Mental Illness 2013‑103 (October 2013) California Governor’s Office of Emergency Services† Special Interest License Plate 11. To make certain that money from the special plate funds pay only 6 Will Not Funds: The State Has Foregone for allowable and supportable activities, Cal EMA should maintain Implement A Certain Revenues Related to Special documentation to support its charges to the antiterrorism fund. For Interest License Plates and Some example, it should ensure that employees submit signed time reports Expenditures Were Unallowable or to support the time they spend on antiterrorism‑related activities. Unsupported 2012‑110 (April 2013) Secretary of State’s Office Office of the Secretary of State: 4. To enhance the value of the HAVA spending plan as a transparency 6 Will Not It Must Do More to Ensure Funds and accountability tool for the Legislature, the Office should make the Implement Provided Under the Federal Help following modifications to its annual HAVA spending plan: America Vote Act Are Spent • Clearly state the methodology used to report prior HAVA Effectively expenditures in the HAVA spending plan. Such a methodology 2012‑112 (August 2013) 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 Office should take all 6 Will Not necessary steps, including seeking any necessary legislative changes, Implement and work with the DMV to modify the driver’s license application so that it may simultaneously serve as a form for voter registration. continued on next page . . . 8 California State Auditor Report 2019-041 January 2020 NUMBER OF YEARS ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN COMPLETION THIS REPORT NATURAL RESOURCES California Natural Resources Agency Special Interest License Plate 15. To make certain that money from the special plate funds pay only 6 Will Not Funds: The State Has Foregone for allowable and supportable activities, Resources should use all Implement A Certain Revenues Related to Special appropriate funding sources to pay for any expenses that benefit Interest License Plates and Some multiple programs in proportion to the benefits these programs Expenditures Were Unallowable or actually receive. Further, it should ensure that its allocation of such Unsupported 2012‑110 (April 2013) expenses to different funds is equitable and supported. TRANSPORTATION Department of Motor Vehicles Special Interest License Plate 1. To ensure that programs supported by special plates receive 6 Will Not Funds: The State Has Foregone appropriate amounts of revenues due to them, Motor Vehicles should Implement A Certain Revenues Related to Special annually collect all fees for special plates that are no longer on a Interest License Plates and Some vehicle but are retained by the plate owner. Expenditures Were Unallowable or 3. Motor Vehicles should assess the extent to which it has charged fees 6 Partially Unsupported 2012‑110 (April 2013) for special plates that are not consistent with those prescribed in Implemented statutes and take appropriate action. * Before publishing a report of an investigation, the State Auditor provides the head of each 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 agency, not the date the report was published. The investigative report for case I2010‑1045 was provided to the California Department of Corrections and Rehabilitation in June 2013. † In July 2013, the California Emergency Management Agency became the California Governor’s Office of Emergency Services. California State Auditor Report 2019-041 9 January 2020 Table 2 Recommendations Made to State Entities That Are More Than One Year Old and Are Still Not Fully Implemented (Reports Issued From November 2013 Through October 2018) STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION BUSINESS, CONSUMER SERVICES, HOUSING Board of Registered Nursing Board of Registered 10. To increase its pool of expert witnesses, 2 Will Not Nursing: Significant by June 2017, BRN should take the steps Implement Delays and Inadequate necessary to increase the hourly wage it pays Oversight of the expert witnesses. Complaint Resolution Process Have Allowed Some Nurses Who May Pose a Risk to Patient Safety to Continue Practicing 2016‑046 (December 2016) Department of Consumer Affairs California Department of 17. To the extent that Consumer Affairs 4 †  Consumer Affairs’ BreEZe chooses to implement BreEZe at the phase 3 C System: Inadequate regulatory entities, it should first complete Planning and Oversight a formal cost‑benefit analysis to ensure that Led to Implementation BreEZe is a cost‑effective solution to meet at Far Fewer Regulatory these regulatory entities’ business needs. Entities at a Significantly To make certain this analysis is complete, Higher Cost it should include an assessment of the 2014‑116 (February 2015) potential changes these regulatory entities may require to be made of the BreEZe system and the associated costs. Consumer Affairs should complete the cost‑benefit analysis before investing any more resources into the implementation of BreEZe at the phase 3 regulatory entities, and it should update this analysis periodically as significant assumptions change. 35. To ensure that future training for BreEZe 4 †  system rollouts is timely and effective, Consumer Affairs should provide training on the BreEZe system as close to the rollout date as possible to ensure that staff retain the information for using the system as it is implemented. 36. To ensure that future training for BreEZe 4 †  system rollouts is timely and effective, Consumer Affairs should work with the regulatory entities to develop training that is specific to each entity’s business processes. continued on next page . . . 10 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Department of Housing and Community Development California Department of 5. To ensure that it appropriately monitors 1 July Housing and Community CalHome as required by statute, regulation, and 2019 Development: Its program guidelines, HCD should immediately Oversight of Housing collect all required reports and follow up with Bond Funds Remains recipients to obtain missing reports. Staff Inconsistent should withhold fund disbursements from 2018‑037 recipients that have not submitted required (September 2018) reports. If the submitted reports reveal a problematic trend, such as a recipient not disbursing funds, HCD should take appropriate corrective action with the recipient. 8. To ensure that the IIG program award funds 1 October benefit the target population, HCD should 2019 develop and use a tool by December 1, 2018, to track which awards are monitored by local jurisdictions or by other HCD programs and which are not monitored at all. HCD should then immediately obtain monitoring reports from the local jurisdictions and other HCD programs to verify monitoring and review the results of such monitoring. HCD should follow up on any noted deficiencies. Further, HCD should, by January 1, 2019, develop a plan to perform on‑site visits for those recipients that do not receive adequate monitoring from another source, and it should perform the planned on‑site monitoring. 11. To ensure that it maximizes the benefit of the 1 December funds it has invested in CAPES’s development 2019 and to support its ongoing efforts to improve CAPES’s usability, HCD should, by January 1, 2019, determine to what extent the programs could be using CAPES at its current level of development to capture information. 14. To ensure that it maximizes the benefit of the 1 December funds it has invested in CAPES’s development 2018 and to support its ongoing efforts to improve CAPES’s usability, HCD should, by January 1, 2019, develop a documented process to ensure that all data in CAPES are accurate and complete. This process should include all phases of contract management, including monitoring. HCD should implement a routine periodic review of this process and update the process as necessary. California State Auditor Report 2019-041 11 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 16. To ensure that it is able to meet its 1 February administrative monitoring obligations 2019 and that it uses housing bond funds in compliance with state law, regulations, and program guidelines, HCD should develop a long‑term plan by January 1, 2019, for how it will avoid exceeding the administrative cost limits of those programs in the most immediate danger of overage and for how it will address instances when it has exceeded administrative cost limits. The plan should identify the programs at risk of exceeding the limit; the actions HCD will take for each program to gain efficiencies; its plan for moving staff between programs; a request for more money or legislative changes such as modifying the statutory limit on administrative spending, if necessary; and an evaluation of the consequences of not fulfilling its monitoring obligations. 18. To ensure that it complies with state law, 1 August prudently uses administrative funding, and 2019 promotes transparency, HCD should calculate and retain only funds equal to its actual administrative costs in instances when it does not disburse awarded funds to a recipient and subsequently grants the funds to another recipient. 19. To ensure that it does not exceed 1 April administrative cost restrictions and that it 2019 maximizes the funds intended to address target populations’ housing needs, HCD should estimate when it will run out of administrative funds for any specific program, document its projection methodology, and provide underlying data and support for its estimates. The projections should include, but not be limited to, actual staff time spent on the program, the number of awards being monitored, and the length of monitoring. Staff should provide these projections and methodologies to management for review and approval by December 1, 2018, and then at least biannually thereafter. Medical Board of California California’s Foster Care 35. Following the completion of the analysis 3 Undetermined System: The State (described in Recommendation 34), the D and Counties Have Medical Board should take the appropriate Failed to Adequately follow‑up actions that it deems necessary, Oversee the Prescription including the investigation of physicians of Psychotropic identified in its analysis. Medications to Children in Foster Care 2015‑131 (August 2016) continued on next page . . . 12 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION CORRECTIONS AND REHABILITATION California Correctional Health Care Services Investigations of 14. Ensure that scheduling staff use the 1 July Improper Activities appropriate post codes in the scheduling 2020 K by State Agencies and software for all nursing staff so their time is Employees: Misuse of accurately reported. State Time, Economically 15. Ensure that all other nursing staff 1 July Wasteful Activities, and assignments to ad hoc posts are appropriate, 2020 Misuse of State Property and require schedulers to enter a note in the I2018‑1 (July 2018)‡ scheduling software indicating an employee’s duties while in a general ad hoc post. Sterilization of Female 5. To ensure that it can better monitor how 5 †  Inmates: Some Inmates its medical staff and contractors adhere to Were Sterilized the informed consent requirements of Title Unlawfully, and 22, sections 70707.1 through 70707.7, the Safeguards Designed Receiver’s Office should develop a plan by to Limit Occurrences August 2014 to implement a process by of the Procedure Failed December 2014 that would include working 2013‑120 (June 2014) 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. California Department of Corrections and Rehabilitation California Department 2. Corrections should immediately require 2 January of Corrections and mental health staff to score 100 percent on 2020 Rehabilitation: It Must risk evaluation audits in order to pass. If a staff Increase Its Efforts to member does not pass, Corrections should Prevent and Respond require the prison to follow its current policies to Inmate Suicides by reviewing additional risk evaluations to 2016‑131 (August 2017) determine whether the staff member needs to undergo additional mentoring. 8. To monitor prisons’ compliance with its 2 September requirement that inmates in crisis beds 2019 receive daily progress notes, Corrections should implement monitoring of these notes electronically into its audit process by the time the electronic health record system is in use systemwide in October 2017. Corrections should require prisons that are out of compliance to develop and implement quality improvement plans, and it should follow up on the prisons’ implementation of those plans. 11. To address the unique circumstances that may 2 June increase its female inmates’ rates of suicide 2019 and suicide attempts, Corrections should continue to explore additional programs that could address the suicide risk factors for female inmates. California State Auditor Report 2019-041 13 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 12. To ensure that all prison staff receive required 2 September training related to suicide prevention and 2019 response, Corrections should immediately implement a process for identifying prisons where staff are not attending required trainings and for working with the prisons to solve the issues preventing attendance. 13. To ensure that trainers and risk evaluation 2 March mentors at all prisons are able to train staff 2019 effectively, Corrections should immediately begin requiring prisons to report the percentage of their trainers and mentors who have received training on how to conduct training and mentoring. It should work with prisons to ensure that all trainers and mentors receive adequate training. 14. To maximize the value of its trainings related to 2 December suicide prevention and response, Corrections 2019 should ensure that starting in January 2018, its trainings include all content that the special master and its own policies require. 15. To ensure that it has enough staff to provide 2 Will Not mental health services to all inmates who Implement require care, Corrections should review and revise its mental health staffing model by August 2018. 16. To ensure that prisons comply with its policies 2 To Be related to suicide prevention and response, Determined Corrections should continue to develop its audit process and implement it at all prisons by February 2018. The process should include, but not be limited to, audits of the quality of prisons’ risk evaluations and treatment plans. 17. To ensure that prisons can easily access 2 December Corrections’ current policies related to mental 2019 health, Corrections should ensure that its program guide is current and complete as it works to incorporate the program guide into regulations. Corrections should immediately begin working with federal court monitors to draft regulations. 18. To ensure that suicide prevention teams meet 2 March quorum requirements, Corrections should, 2019 starting January 2018, work with prisons that consistently fail to achieve a quorum to resolve issues that may be preventing the teams from having all required members present at meetings. continued on next page . . . 14 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Correctional Officer 3. To make certain that victims are aware of 1 †   Health and Safety: threats to their health, CIM should follow state DD Some State and County law and ensure that its medical personnel Correctional Facilities immediately inform victims of gassing attacks Could Better Protect of any evidence suggesting that the inmates Their Officers From the involved have a communicable disease. It Health Risks of Certain should further document that it has provided Inmate Attacks this information to victims. 2018‑106 21. To ensure the health and safety of its 1 December (September 2018) officers when interacting with inmates, 2020 CIM should provide annual training that is specific to preventing and responding to gassing attacks. 22. To ensure that it is able to identify high‑risk 1 †   situations and deter repeat offenders, CIM should specifically track all gassing attacks and use the tracking data as a tool to prevent future gassing attacks. Investigations of 19. Corrections and Correctional Health Care 4 March Improper Activities should run a query of exempt positions 2020 by State Agencies and related to the chief psychologist classification, Employees such as clinical psychologists and senior I2015‑1 (August 2015)‡ psychologists, to determine whether any other exempt employees were improperly credited or paid for on‑call or call‑back assignments prior to December 2014, and seek recovery through reducing those employees’ accumulated leave balances. Investigations of 15. CDCR should revise the Institutional Worker 2 December Improper Activities Supervision Pay (IWSP) procedure to require 2019 by State Agencies that personnel staff review and ensure that and Employees: an employee’s direct supervisor signs the Misuse of Resources, qualifying employee’s timesheets and IWSP Inaccurate Attendance documents each month. Records, Disclosure 17. CDCR should enforce its current procedure to 2 January of Confidential retain Institutional Worker Supervision Pay 2020 Information, and (IWSP) documentation. Improper Payments I2017‑1 (March 2017)‡ 19. CDCR should train all employees, supervisors, 2 January and personnel staff who receive, approve, or 2020 issue the extra pay to ensure that they are familiar with the requirements of the IWSP procedure and Pay Differential 67. Investigations of 20. Fully implement and continue to follow 1 December Improper Activities recommendations from prior investigative 2019 K by State Agencies and reports involving similar inappropriate inmate Employees: Misuse of supervision pay at other CDCR facilities, State Time, Economically including the recommendation to train all Wasteful Activities, and employees who receive, approve, or issue the Misuse of State Property inmate supervision pay. I2018‑1 (July 2018)‡ California State Auditor Report 2019-041 15 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION ENVIRONMENTAL PROTECTION California Department of Resources Recycling and Recovery California Department 4. By January 1, 2020, CalRecycle should update 1 July of Resources Recycling the baseline and goals for mattress recycling to 2020 and Recovery: It Has Not reflect the most current available information Provided the Oversight it has related to the number of mattresses Necessary to Ensure That disposed of statewide. In addition, it should the Mattress Recycling ensure that its recycling goals are statewide in Program Fulfills Its scope by including information about recycling Purpose and renovation from entities that do not 2018‑107 (August 2018) contract with the Mattress Council. 5. In order to bring violators of the recycling 1 †  act into compliance and to ensure that its enforcement activities are timely, CalRecycle should do the following: • Assess penalties for noncompliance with the recycling act. • Publicize any penalties it assesses against violators of the recycling act as a deterrent to potential violators. • Monitor inspection cases to ensure that it does not complete them before the retailers in question have remedied any instances of noncompliance. • Execute a plan to verify compliance for all inspections in which it did not obtain evidence of compliance. • Develop and implement a timeline for the penalty phase of the enforcement process. • Regularly review the timeliness of its enforcement process and prioritize any overdue enforcement actions based on its enforcement timelines. continued on next page . . . 16 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION California Department of 2. To ensure it can demonstrate that its fraud 4 December Resources Recycling and prevention efforts are maximizing financial 2020 Recovery: The Beverage recoveries for the beverage program, Container Recycling CalRecycle should both modify and annually Program Continues update its fraud management plan to include to Face Deficits and the following: Requires Changes to • By December 31, 2014, formally establish Become Financially a systematic process for analyzing, Sustainable monitoring, and responding to the risk 2014‑110 of fraudulent recycling of out‑of‑state (November 2014) beverage containers. • Develop fraud estimates—by type of fraudulent activity—that quantify the potential financial losses to the beverage program and the methodology CalRecycle used to develop these estimates. • Identify the amount of actual fraud in the prior year by type of fraudulent activity, such as the financial losses resulting from the redemption of out‑of‑state beverage containers or the falsification of reports used to substantiate program payments. • Identify the amount actually recovered for the beverage program in the form of cash for restitution and penalties resulting from fraud. 3. To allow for public input and to prevent any 4 July legal challenges claiming that its policies 2020 and procedures regarding prepayment holds constitute unenforceable underground regulations, CalRecycle should adopt these policies and procedures as regulations in accordance with the Administrative Procedure Act. State Water Resources Control Board Investigations of 1. Take appropriate corrective action against 3 Unknown Improper Activities the district engineer and the supervisors for by State Agencies and their participation in or failure to address the Employees: Conflict of conflict of interest. Interest, Violation of Post‑Employment Ethics Restrictions, Waste of State Funds, Misuse of State Resources, and Incompatible Activities I2016‑2 (August 2016)‡ State and Regional Water 6. To ensure that the regional boards obtain 1 December Boards: They Must Do adequate and consistent information on 2019 BB More to Ensure That the storm water management costs local Local Jurisdictions’ Costs jurisdictions incur, the State Water Board to Reduce Storm Water should develop statewide guidance by Pollution Are Necessary August 2018 for local jurisdictions on and Appropriate methods for tracking the cost of storm 2017‑118 (March 2018) water management. If the State Water Board believes it does not have the expertise to develop such guidance, it should hire or contract with an expert in municipal finance who can assist in developing that guidance. California State Auditor Report 2019-041 17 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 7. If the State Water Board believes regulations 1 To Be are necessary to ensure that the regional Determined boards and local jurisdictions follow its guidance regarding adequate and consistent information pertaining to their costs for storm water management, the State Water Board should adopt such regulations. 11. The State Water Board should revise its trash 1 Will Not policy to focus it on local jurisdictions that Implement have water bodies that are harmed by trash, as identified by the polluted waters list. In addition, the State Water Board should review the polluted waters list at least biannually to identify any additional water bodies recently determined to be harmed by trash and impose its trash policy on the applicable jurisdictions. GENERAL GOVERNMENT California Public Utilities Commission California Public Utilities 14. The commission should follow the requirement 5 †   Commission: Improved in state law to inspect and audit the accounting B Monitoring of Balancing records of utilities it regulates within required Accounts Would Better time frames. If the commission chooses to Ensure That Utility Rates continue to meet this requirement through Are Fair and Reasonable the general rate case process, it should ensure 2013‑109 (March 2014) that all utilities file 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 2. To ensure that it resolves complaints 5 2020 and Utilities Commission: against passenger carriers in a timely beyond It Fails to Adequately manner, the commission should establish Ensure Consumers’ a method for prioritizing complaints and it Transportation should implement a policy specifying the Safety and Does Not maximum amount of time between the Appropriately Collect receipt of a complaint and the completion and Spend Fees From of the subsequent investigation. Further, Passenger Carriers the commission should require branch 2013‑130 (June 2014) management to monitor and report regularly on its performance in meeting that policy. 6. To ensure that the branch conducts 5 2020 and thorough investigations of passenger beyond carriers, the commission should implement a formal training program to ensure that all investigators have adequate knowledge and skills related to regulating passenger carriers. 9. To ensure that passenger carriers submit 5 June accurate fee payments, the commission 2020 should require its fiscal staff to implement a process to verify passenger carrier fee payments and associated revenue. continued on next page . . . 18 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 10. To ensure that it complies with state law and 5 June uses passenger carrier fees appropriately, 2020 the 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 5 2020 and illegally at airports, the branch should use beyond as intended 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 Public Utilities 3. To ensure that policy makers, enforcement 4 August Commission: It Needs to officials, and the general public have access 2020 Improve the Quality of to accurate consumer complaint data in CIMS, Its Consumer Complaint the branch should continue to implement Data and the Controls its quality management team program Over Its Information component focused on reviewing the Systems categorization of complaints and correcting 2014‑120 (April 2015) identified errors. 4. To ensure that policy makers, enforcement 4 August officials, and the general public have access 2020 to accurate consumer complaint data in CIMS, the branch should develop and implement tools by September 30, 2015, to measure the quality management team program’s effectiveness. 11. The commission should ensure that it 4 December complies with all policy requirements in SAM 2020 Chapter 5300 no later than April 2016. 13. As part of developing, implementing, and 4 December maintaining an entitywide information 2020 security program, the commission should develop a risk management and privacy plan and conduct an assessment of risks facing its information assets. 16. The commission should revise its existing 4 December recovery plan to include a list of applications 2020 supporting critical business functions, their maximum acceptable outage time frames, and detailed recovery strategies for each application. 17. The commission should revise its existing 4 December recovery plan to include detailed procedures 2020 for rebuilding its technology infrastructure at an alternate processing site. 18. The commission should conduct regular tests 4 December and exercises to assess the sufficiency of the 2020 revised recovery plan and refine the plan when necessary. California State Auditor Report 2019-041 19 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION California Public Utilities 2. To ensure that the choice of a vendor is 3 Will Not Commission: It Should sufficiently justified and that the vendor Implement Reform Its Rules to represents the best value, the CPUC should Increase Transparency explain in its final decision how the vendor and Accountability, and was the most qualified in all cases when Its Contracting Practices the CPUC does not competitively select the Do Not Align With vendor it directs utilities to contract with. Requirements or Best 4. To avoid the appearance of inappropriate 3 Extension Practices relationships, the CPUC should adopt a policy Requested 2016‑104 to prohibit commissioners from accepting (September 2016) gifts from regulated utilities and energy companies and free travel from organizations with significant ties to regulated utilities and other parties with financial interests in CPUC proceedings. 6. To ensure that its contracting practices align 3 May with state requirements and best practices, 2019 the CPUC should update, distribute, and follow its contracting procedures manual. The manual should identify specific responsibilities for both contracts office staff and project managers, and it should provide specific guidance about the processes the CPUC will employ to do the following: • Fully justify civil service exemptions. • Conduct market research for exempt contracts. • Fully support the need for additional funding. • Ensure that it does not change the scope of work too significantly from the original. • Monitor contractor performance against criteria included in its contracts. • Avoid sole‑source contracts when it is able to solicit competitive bids for services. 7. To ensure that its contracting practices align 3 May with state requirements and best practices, 2019 the CPUC should provide immediate refresher training to its contract analysts and contracts office manager, and establish a regular schedule of annual training for them to attend. 8. To ensure that its contracting practices align 3 March with state requirements and best practices, 2020 the CPUC should designate a limited number of project managers for each division at the CPUC, and provide those individuals with training on the CPUC’s processes related to contracting, including how to monitor progress of a contractor’s work. 10. The CPUC should update its general policy 3 Ongoing on responding to California Public Records Act requests so that the policy aligns with state law. continued on next page . . . 20 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 13. The CPUC should update its regulations to 3 Will Not require parties joining a proceeding by filing Implement a protest or response to an application or petition, or by filing comments in response to a rulemaking proceeding to fully disclose their interests in the proceeding. California’s Alternative 3. To show how air pollution emissions 4 †  Energy and Efficiency reductions related to the solar initiative Initiatives: Two benefit the State, the commission should Programs Are Meeting include in future reports the measurable Some Goals, but Several benefits of those reductions. Improvements Are Needed 2014‑124 (February 2015) Public Advocates Office§ California Public Utilities 7. To further its mission to obtain the lowest 5 Will Not Commission: Improved possible rates for reliable and safe utility Implement B Monitoring of Balancing service for ratepayers through its reviews of Accounts Would Better balancing accounts, Ratepayer Advocates Ensure That Utility Rates should use the commission’s list of balancing Are Fair and Reasonable accounts to guide its selection of the number, 2013‑109 (March 2014) size, and type of balancing accounts to review so that its review coverage is more proportional across all utilities. GOVERNMENT OPERATIONS California Department of Technology California Department of 14. To ensure that IT projects have the oversight 4 †  Consumer Affairs’ BreEZe needed to better position them for success, C System: Inadequate CalTech should develop thresholds relating Planning and Oversight to IT project cost increases and schedule Led to Implementation delays to inform and better justify its decision at Far Fewer Regulatory to allow an IT project to continue. If a Entities at a Significantly department’s IT project reaches or exceeds Higher Cost these thresholds, CalTech should require the 2014‑116 (February 2015) department to conduct a cost‑benefit analysis for the project and include this analysis in an SPR. CalTech should consider the results of this analysis in its decision to approve or deny the SPR and, if warranted, take action to suspend or terminate the project so that it does not allow projects with significant problems to continue without correction. California State Auditor Report 2019-041 21 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Department of General Services California Department 2. To ensure long‑term efficient and effective 3 December of General Services’ delivery of projects, the division, in its 2021 Real Estate Services planned implementation of its new project Division: To Better Serve management system in July 2017, should Its Client Agencies, ensure that the project management system It Needs to Track can centrally track and extract all data and Analyze Project regarding project status, including time delays, Data and Improve Its cost overages, and the reasons for each. Management Practices 3. To ensure long‑term efficient and effective 3 December 2015‑117 (March 2016) delivery of projects, the division, in its 2021 planned implementation of its new project management system in July 2017, should track the reasons that projects are pending to identify its true backlog of projects. In doing so, it should develop a process to follow up on those projects that are pending to ensure that they are not on hold unnecessarily and are appropriately moving forward. 4. To ensure long‑term efficient and effective 3 December delivery of projects, the division, in its 2021 planned implementation of its new project management system in July 2017, should, at least annually, use the centrally tracked data to identify common themes in the causes for project delays and cost overages and develop solutions to address these issues. Further, it should report the results of its review to General Services’ executive management. 5. Until the division implements its planned 3 Will Not project management system, it should, by Implement September 2016, develop a process to, at a minimum, identify project status and reasons for project delays as well as cost overages. Using these data, the division should modify its project management processes to ensure the efficient and effective delivery of projects. 6. The division should develop and implement a 3 †  process for preparing reasonable time frames and cost estimates for its projects within the building management branch. To better inform the development of this process, the division should evaluate the branch’s structure, which should include a staffing analysis, to determine whether it is effectively organized and whether it should add cost estimator positions. continued on next page . . . 22 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 7. To ensure that client agencies are paying 3 Partially equitable rates, by December 2016 General Implemented Services should develop and implement a strategy for allocating its administrative costs equally among all the projects it completes for client agencies, including those portions outsourced to private firms. 8. To ensure that the project management 3 Partially branch charges its client agencies a Implemented competitive hourly rate, by December 2016 and every two years thereafter, the division should conduct a rate analysis that fully accounts for differences between the project management branch’s rate and private firms’ rates. If it finds that the rates are not competitive, the division should identify and implement strategies to ensure that the project management branch’s rates are as competitive as they can be with those of its private firm counterparts. Further, the division should explore and implement any other reasonable methods to ensure that it is delivering projects as cost effectively as possible. 10. To improve its communication with client 3 December agencies, the division should develop a 2021 process for providing periodic detailed bills and invoices to client agencies clearly describing the work for which it is charging. 11. To effectively evaluate the performance 3 †  of its branches in delivering projects, the division should develop meaningful goals and objectives and a method of measuring its success in achieving them as part of its strategic plan that is focused on ensuring that projects are delivered on time and within budgeted cost estimates. 12. To ensure that its project management 3 †  staff are adequately trained and have the information necessary to deliver projects as efficiently and effectively as possible, the division should conduct a comprehensive survey every other year of all of its client agencies to inform necessary improvements to its processes and training program and, in the interest of transparency, make the survey results public. California State Auditor Report 2019-041 23 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Department of 3. To improve its oversight of the State’s 2 Will Not General Services and noncompetitive contracts, General Services Implement California Department should, within 90 days, create plans for of Technology: Neither regularly performing statewide analyses Entity Has Provided the to identify potential abuse or overuse of Oversight Necessary noncompetitive contracts. These analyses to Ensure That State should include, but not be limited to, Agencies Consistently calculating the proportional value and Use the Competitive number of the State’s competitive and Bidding Process noncompetitive contracts and amendments, 2016‑124 (June 2017) examining trends in agencies’ use of noncompetitive contracts and amendments, and identifying unusual patterns among vendors receiving state contracts through noncompetitive means. HEALTH AND HUMAN SERVICES California Department of Public Health California Department 2. To increase its efforts to prevent and control 4 Will Not of Public Health: Even diabetes, Public Health should develop a Implement With a Recent Increase process for identifying and applying for in Federal Funding, federal funding opportunities, including Its Efforts to Prevent routinely and proactively searching for grants. Diabetes Are Focused In addition, Public Health should seek funding on a Limited Number of for a grants specialist position to identify and Counties apply for federal and other grants. 2014‑113 (January 2015) California Department 3. To protect the health, safety, and well‑being 5 Will Not of Public Health: It Has of residents in long‑term health care facilities, Implement Not Effectively Managed Public Health should improve its oversight Investigations of of complaint processing. Specifically, by Complaints Related to May 1, 2015, Public Health should establish Long‑Term Health Care a specific time frame for completing Facilities facility‑related complaint investigations 2014‑111 (October 2014) 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 5 Will Not of residents in long‑term health care facilities, Implement 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 . . . 24 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 8. To protect the residents in long‑term 5 †   health care 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. Follow-Up—California 8. To ensure it can provide effective oversight of 4 December Department of Public labs as state law requires, Laboratory Services 2019 Health: Laboratory should address staffing issues by preparing and Field Services Is Unable resubmitting to Public Health a recruitment and to Oversee Clinical retention proposal, developing a succession Laboratories Effectively, plan, and taking necessary steps to implement but a Feasible its planned reorganization. Alternative Exists 9. To ensure it can provide effective oversight of 4 Early 2015‑507 labs as state law requires, Laboratory Services 2020 (September 2015) should ensure that its information technology data systems have necessary safeguards, contain accurate and complete data, and support its program needs. 10. To ensure it can provide effective oversight of 4 June labs as state law requires, Laboratory Services 2020 should update and develop its regulations as necessary to ensure consistency with existing state law. Skilled Nursing Facilities: 8. As the Legislature considers changes to state 1 July Absent Effective State law, Public Health should take the steps 2020 H Oversight, Substandard necessary to ensure that its oversight results Quality of Care Has in nursing facilities improving their quality Continued of care by amending its application licensing 2017‑109 (May 2018) reviews by developing a defined process that specifies how an analyst will determine whether an applicant has demonstrated its ability to comply with state and federal requirements. This process also needs to ensure that analysts conduct complete and standardized reviews of each nursing facility application within each class of facility. Specifically, these processes should clearly outline what factors analysts will consider when determining whether an applicant is in compliance, how analysts will weigh those factors for each class of facility, and what objective thresholds will prompt analysts to elevate applications for review and approval by higher‑level management. Additionally, Public Health should document the additional factors higher‑level management will consider if applications are elevated for their review to ensure that Public Health conducts standardized reviews of nursing facility applications of the same class. Finally, Public Health should develop processes ensuring that it documents its decisions adequately. California State Auditor Report 2019-041 25 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 9. As the Legislature considers changes to state 1 May law, Public Health should take the steps 2019 necessary to ensure that its oversight results in nursing facilities improving their quality of care by ensuring that it issues citations in a timely manner, especially for immediate jeopardy deficiencies. 11. To improve the availability and transparency 1 May of information, Public Health should upload 2020 all inspection findings to Cal Health Find and review ownership data by May 2019. California Department of Social Services California Department 5. To ensure that it more effectively shares, 2 †  of Social Services: Its receives, and uses administrative action E Caregiver Background information, Social Services should develop Check Bureau Lacks and maintain a centralized database Criminal History containing its own administrative actions and Information It Needs those received from other state departments, to Protect Vulnerable in order to share this information among Populations in Licensed these departments as required by state Care Facilities law. Social Services should seek funding if it 2016‑126 (March 2017) believes additional resources are necessary. 10. To ensure that Social Services evaluates 2 August the risk individuals may pose to vulnerable 2020 populations in its licensed care facilities as quickly as possible, by July 2017 Social Services should establish time frames for staff to evaluate individuals who are present in their facilities and who have received administrative actions from other departments. In addition, it should monitor and follow up with the appropriate staff regarding the status of their assessments of these individuals and their final decisions. 13. To comply with state law and better protect 2 Will Not vulnerable populations in California’s Implement licensed care facilities, Social Services should immediately change its policy to require that its exemption analysts evaluate all infraction convictions, other than minor traffic violations, before granting exemptions to individuals. If Social Services believes it is not feasible to evaluate all of these convictions, it should report to the Legislature by June 2017 how it ensures that vulnerable populations are not at risk and should request that the Legislature change the law to eliminate infraction convictions as a crime category that Social Services must evaluate in order to grant an exemption. continued on next page . . . 26 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 16. Until the Legislature requires that Social 2 August Services receive both California and federal 2020 criminal history information before issuing a clearance or processing an exemption, to better protect vulnerable populations, Social Services should immediately revise its policy to require its regional offices to obtain all self‑ disclosure forms for individuals who submit fingerprints to Justice as part of an application to be present in a licensed facility. The regional offices should then forward to the CBCB all self‑disclosure forms that identify a conviction. 17. Until the Legislature requires that Social 2 August Services receive both California and federal 2020 criminal history information before issuing a clearance or processing an exemption, to better protect vulnerable populations, Social Services should immediately change its practice of allowing individuals who have not submitted a self‑disclosure form to Social Services to have access to licensed facilities, thus reflecting the requirements of state law. In addition, the CBCB should develop a process to ensure that individuals cannot receive a clearance or an exemption without the CBCB first receiving both California and federal criminal history information if a regional office does not have a self‑disclosure form for the individual. 26. To ensure that regional offices pursue legal 2 August actions in a timely manner, by July 2017 2020 Social Services’ headquarters should identify a resource—such as a unit—to monitor and follow up with the regional offices regarding the status of their legal actions related to substantiated address matches of registered sex offenders at licensed facilities. California State Auditor Report 2019-041 27 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION California’s Foster Care 30. To improve the oversight of psychotropic 3 Will Not System: The State medications prescribed to foster children, Implement D and Counties Have Social Services should collaborate with the Failed to Adequately counties and other relevant stakeholders— Oversee the Prescription including Health Care Services, as of Psychotropic necessary—to develop and implement a Medications to Children reasonable oversight structure that ensures in Foster Care the coordination of the State’s and counties’ 2015‑131 (August 2016) various oversight mechanisms as well as the accuracy and completeness of the information in Social Services’ data system. This structure should include at least the following items: • Identification of the specific oversight responsibilities to be performed by the various state and local government agencies. • An agreement on how county staff such as social workers, probation officers, and public health nurses will use printed Health and Education Passports to obtain foster children’s necessary mental health information—including psychotropic medications and psychosocial services— for inclusion in Social Services’ data system. • A plan to ensure that counties have sufficient staff available to enter foster children’s mental health information into Social Services’ data system and the resources to pay for those staff. • An agreement on the specific information related to psychotropic medication— including but not limited to the medication name, maximum daily dosage, and court authorization date—and psychosocial services and medication follow‑up appointment information that county staff must enter into Social Services’ data system for inclusion in foster children’s Health and Education Passports. • Specific directions from Social Services regarding the correct medication start dates and court authorization dates counties should include in its data system and foster children’s Health and Education Passports. • An agreement on the training or guidance Social Services should provide to county staff members working with Social Services’ data system to ensure that they know how to completely and accurately update foster children’s Health and Education Passports. continued on next page . . . 28 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION • An agreement on how the counties will use information on the new authorization forms that the Judicial Council approved to better oversee the prescription of psychotropic medications to foster children. • An agreement regarding how counties will implement, use, or disseminate the educational and informational materials the Quality Improvement Project has produced, including the “California Guidelines for the Use of Psychotropic Medication with Children and Youth in Foster Care,” “Questions to Ask About Medications,” and the “Foster Youth Mental Health Bill of Rights.” • An agreement on the specific measures and the best available sources of data the State and counties will use to oversee foster children prescribed psychotropic medications, including psychosocial services and medication follow‑up appointments. • An agreement on how the State and counties will oversee psychotropic medications prescribed to foster children by fee‑for‑ service providers who are not affiliated with county Medi‑Cal mental health plans. • An agreement on the extent of information related to psychotropic medications prescribed to foster children that counties will include in the self‑assessments, system improvement plans, and annual progress reports they develop as part of Social Services’ California Child and Family Services Reviews. • An agreement on the extent of the information related to psychotropic medications prescribed to foster children that counties will include in their responses to Health Care Services’ reviews, including its county Medi‑Cal mental health plan compliance reviews and external quality reviews. California State Auditor Report 2019-041 29 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Child Welfare Services: 40. To promote continued improvement in 5 March The County Child the CWS system, Social Services should 2020 Welfare Services encourage each county CWS agency to Agencies We Reviewed designate personnel to update regularly Must Provide Better their policies and procedures, to include a Protection for Abused detailed description of the need for ongoing and Neglected Children 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 5 March the CWS system, Social Services should ask 2020 each 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. Follow-Up—California 4. To ensure that counties’ use of foster family 4 Will Not Department of Social agency placements is justified, Social Implement Services: Although Services should take action to implement the Making Progress, It recommendation we previously made in our Could Do More to Ensure 2011 audit. Specifically, Social Services should the Protection and require counties to give licensed foster homes Appropriate Placement a higher priority than foster family agencies of Foster Children for children that do not have identified 2015‑502 (July 2015) treatment needs. 5. To ensure that counties’ use of foster family 4 Unknown agency placements is justified, Social Services should take action to implement the recommendation we previously made in our 2011 audit. Specifically, Social Services should require counties to prepare a detailed justification for any child placed with a foster family agency. Follow-Up—California 4. To ensure that all counties consistently 4 March Department of Social gauge the cost‑effectiveness of their early 2020 Services: It Has Not fraud detection activities and ongoing Corrected Previously investigation efforts for the CalWORKs and Recognized Deficiencies CalFresh programs, Social Services should in Its Oversight of develop a formula to regularly perform a cost‑ Counties’ Antifraud effectiveness analysis using information that Efforts for the CalWORKs the counties currently submit. Specifically, and CalFresh Programs this formula should measure the savings that 2015‑503 (June 2015) a county achieves for each dollar spent on antifraud efforts. 5. To make certain that counties receive 4 March the greatest benefit from the resources 2020 they spend on antifraud efforts related to CalWORKs and CalFresh cases, Social Services should, using the results from the recommended cost‑effectiveness analysis, determine why some counties’ efforts to combat welfare fraud are more cost‑effective than others. continued on next page . . . 30 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 6. To make certain that counties receive 4 March the greatest benefit from the resources 2020 they spend on antifraud efforts related to CalWORKs and CalFresh cases, Social Services should seek to replicate the most cost‑effective practices among all counties. Social Services should work with its legal counsel to determine whether to withhold information about these practices from public disclosure. 7. Social Services should track counties’ 4 Will Not prosecution thresholds for welfare fraud cases Implement and determine whether they affect counties’ decisions to investigate potential fraud, with a focus on determining best practices and cost‑effective thresholds. If Social Services’ analysis determines that varying prosecution thresholds do affect counties’ decisions, it should then work with counties to implement the consistent use of these cost‑effective prosecution thresholds. 9. To make certain that counties receive 4 Summer the greatest benefit from the resources 2020 they spend on antifraud efforts related to CalWORKs and CalFresh cases, Social Services should address and promptly act on the four remaining recommendations that its steering committee provided in 2008. 12. To make counties’ review of match lists more 4 November efficient, Social Services should revive its 2019 efforts to work with the state and federal agencies that prepare the match lists to address the counties’ concerns about match list formats, content, and criteria. In-Home Supportive 2. To reduce the likelihood of inadvertent errors 2 Will Not Services: The State on replacement timesheets, Social Services Implement Could Do More to should create functionality within CMIPS II to Help Providers Avoid allow replacement timesheets to be printed Future Payment Delays with data that had been submitted correctly 2016‑128 (March 2017) on the original timesheet. Social Services should develop a plan by August 2017 that outlines actions, such as assessing the cost and seeking funding from the Legislature if necessary, that will be taken to create the functionality. California State Auditor Report 2019-041 31 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 10. To enable it to track whether EDD is meeting 2 Will Not its contractual time frame for printing and Implement mailing timesheets, Social Services should either modify its current agreement or require in the renewal of its agreement a method for tracking the time required to print and mail timesheets. Social Services should also perform monthly reviews of the activities performed by EDD and SCO to ensure compliance with the time frames for each agreement. Additionally, Social Services should implement a process to regularly test EDD and SCO processes to ensure that they are within the required time frames. 13. Until state law is changed to facilitate providers’ 2 Will Not efforts to report their time and to reduce the Implement potential for providers to be inadvertently suspended from the IHSS program, Social Services should inform providers of the weekly maximum number of service hours for each variation in the length of the month, rather than using a standard conversion that results in providers claiming more hours than their recipients are authorized. 14. If the Legislature amends state law as we 2 Will Not recommend, Social Services should modify Implement the timesheet format to incorporate the weekly authorization for services and the new two‑workweek pay period. Social Services should also reconfigure its timesheet to require that all information be entered on one side of the document, including the signatures of the provider and recipient. Department of Developmental Services California Department of 2. To ensure timelier fee assessments, 4 Will Not Developmental Services: Developmental Services should hold regional Implement Its Process for Assessing centers accountable for providing the monthly Fees Paid by Parents placement reports and copies of information of Children Living in letters required by state regulations. To Residential Facilities Is encourage compliance, Developmental Woefully Inefficient and Services should specify in its regional center Inconsistent contracts that noncompliant regional centers 2014‑118 (January 2015) will pay financial penalties equal to the amount of revenue lost because of their inaction. continued on next page . . . 32 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Department of 4. To ensure that regional centers are aware 3 January Developmental Services: of the benefits, including cost savings to 2020 It Cannot Verify That the State that can be realized by using FMS Vendor Rates for vendors, DDS should formally communicate In‑Home Respite to regional centers regarding the model. Services Are Appropriate 5. To ensure that in‑home respite vendors are 3 Will Not and That Regional providing quality services and that vendors Implement Centers and Vendors are adhering to state requirements, DDS Meet Applicable should issue regulations requiring regional Requirements centers to conduct periodic and ongoing 2016‑108 (October 2016) reviews of vendors’ programs, employees, and consumer records. 6. To ensure that in‑home respite vendors 3 January comply with vendor requirements on an 2020 ongoing basis, DDS should require the regional centers to develop a process to conduct biennial reviews of the vendor files the regional centers maintain and document the outcome of the review in the files. DDS should require the regional centers to take appropriate action to ensure that vendors comply, up to and including terminating the vendorization, if necessary. 7. To ensure that it is providing oversight 3 December in accordance with state law and federal 2020 requirements, DDS should ensure that it performs audits of each regional center every two years as required. In conducting these audits, DDS should consistently include a review of in‑home respite services. Department of Health Care Services California Department 6. If Health Care Services finds significant 4 Unknown of Health Care Services: errors in a health plan’s provider directory, it Improved Monitoring should work with that health plan to identify of Medi‑Cal Managed reasons for the inaccuracies and require the Care Health Plans Is health plan to develop processes to eliminate Necessary to Better the inaccuracies. Ensure Access to Care 2014‑134 (June 2015) California Department 1. To ensure that it provides claiming units 4 Will Not of Health Care Services: with reasonable opportunities to address Implement It Should Improve concerns with its decisions or actions, Health Its Administration Care Services should, within three months, and Oversight of begin preparing regulations to establish and School‑Based Medi‑Cal implement a formal appeals process that Programs allows claiming units to directly appeal Health 2014‑130 (August 2015) Care Services’ decisions. 2. To ensure that it provides claiming units with 4 Will Not reasonable opportunities to address concerns Implement with its decisions or actions, Health Care Services should, within three months, inform all stakeholders, including claiming units, of the existence of this appeals process. California State Auditor Report 2019-041 33 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 3. Until the Legislature implements our 4 Early recommendation in Chapter 2, Health 2020 Care Services should immediately resolve weaknesses in its oversight of local educational consortia and local governmental agencies to ensure that these entities sufficiently meet their responsibilities under the administrative activities program and meet the terms of their contracts with Health Care Services. Health Care Services should update its site review and desk review procedures to include the following steps: • A risk‑based approach to selecting entities for review. • Verification that local educational consortia and local governmental agencies are adequately meeting the oversight and administrative responsibilities described in their contracts with Health Care Services. • Verification that contracts between local educational consortia or local governmental agencies and their claiming units do not include provisions that could result in disallowed costs, such as allowing Health Care Services’ participation fee to be included in the claim calculations. • Examination of local educational consortia and local governmental agencies’ records to ensure that: – Costs they claim for federal reimbursement are necessary and reasonable. – The entities are not inappropriately earning a profit based on the fees they collect from claiming units. – The coding performed by local educational consortia that charge claiming units a percentage of their federal reimbursement is reasonably accurate. 4. Until the Legislature implements our 4 Will Not recommendation in Chapter 2, Health Implement Care Services should immediately resolve weaknesses in its oversight of local educational consortia and local governmental agencies to ensure that these entities sufficiently meet their responsibilities under the administrative activities program and meet the terms of their contracts with Health Care Services. Health Care Services should complete the oversight reviews for at least three high‑risk local educational consortia or local governmental agencies by December 31, 2015, and post the results to its website. continued on next page . . . 34 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 5. Until the Legislature implements our 4 Will Not recommendation in Chapter 2, Health Implement Care Services should immediately resolve weaknesses in its oversight of local educational consortia and local governmental agencies to ensure that these entities sufficiently meet their responsibilities under the administrative activities program and meet the terms of their contracts with Health Care Services. Health Care Services should complete the oversight reviews for any remaining high‑risk local educational consortia or local governmental agencies by June 30, 2016, and post the results to its website. 8. To minimize the risk that claiming units could 4 †  include unallowable costs when calculating their reimbursement claims, Health Care Services should remind all local educational consortia and local governmental agencies that contracts with their claiming units should prohibit claiming units from seeking federal reimbursement of Health Care Services’ participation fee. 10. To streamline the organizational structure 4 July of its administrative activities program and 2021 to improve the program’s cost‑effectiveness, Heath Care Services should implement a single statewide quarterly random moment time survey and develop and implement a plan to take over responsibility for conducting quarterly time surveys and performing related activities as soon as reasonably possible. 11. To streamline the organizational structure 4 July of its administrative activities program and 2025 to improve the program’s cost‑effectiveness, Heath Care Services should implement a single statewide quarterly random moment time survey and develop and issue a request for proposals to identify a responsible vendor to assist in implementing a statewide quarterly random moment time survey. 12. To streamline the organizational structure 4 August of its administrative activities program and 2020 to improve the program’s cost‑effectiveness, Heath Care Services should implement a single statewide quarterly random moment time survey and draft revisions to regulations as appropriate and to applicable documents, including the manual, oversight strategies and plans, and policy and procedure letters. 13. To the extent that local educational consortia 4 Will Not and local governmental agencies are no Implement longer involved in the administrative activities program, Health Care Services should develop and issue a standard contract for claiming units to sign to participate in the program. California State Auditor Report 2019-041 35 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 17. To better maximize federal reimbursements 4 Will Not for the administrative activities program, Implement Health Care Services should, within six months, develop and implement a method to oversee and track the outreach efforts that local educational consortia and local governmental agencies use for ensuring that nonparticipating claiming units understand the benefits and consider participating in the administrative activities program. 21. To provide the public with the ability to 4 August participate fully in developing the rules 2020 governing the administrative activities program, Health Care Services should, in accordance with California’s Administrative Procedure Act (APA), immediately develop and adopt the regulations cited in the four subdivisions of Section 14132.47 of the California Welfare and Institutions Code. California Department 5. To help increase the number of providers 4 March of Health Care Services: participating in the program’s fee‑for‑service 2020 Weaknesses in Its delivery system, Health Care Services should Medi‑Cal Dental improve its identification and implementation Program Limit Children’s of changes that minimize or simplify Access to Dental Care administrative processes for providers. These 2013‑125 changes should include revising its processes (December 2014) pertaining to dental procedures that require radiographs or photographs. 20. To make certain that it meets the 4 Will Not requirements of the new state law and that Implement its performance measures are accurate, Health Care Services should establish the provider‑to‑beneficiary ratio statewide and by county as performance measures designed to evaluate access and availability of dental services and include this measure in its October 2015 report to the Legislature. 23. To ensure that Health Care Services and its 4 Unknown fiscal intermediaries reimburse providers only for services rendered to eligible beneficiaries, Health Care Services should obtain Social Security’s Death Master File and update monthly its beneficiary eligibility system with death information. Department of Health 2. To recover inappropriately spent funds, 1 †  Care Services: It Paid prevent future erroneous payments, and Billions in Questionable ensure eligible individuals’ access to care, Medi‑Cal Premiums Health Care Services should resolve the and Claims Because It discrepancies we identified and recover Failed to Follow Up on erroneous payments where allowable by Eligibility Discrepancies June 30, 2019. 2018‑603 (October 2018) continued on next page . . . 36 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 3. To prevent future erroneous payments, Health 1 †  Care Services should implement procedures by December 31, 2018, to ensure the timely resolution of system discrepancies. These procedures should include Health Care Services regularly following up on recurring, unresolved system discrepancies with the responsible county. 4. To prevent future erroneous payments, Health 1 June Care Services should establish procedures by 2020 December 31, 2018, that define when it will use its authority as defined in state law to sanction unresponsive counties that do not remedy known discrepancies. 5. To assist counties in addressing discrepancies, 1 November Health Care Services should find a cost‑ 2019 effective method to provide its exception reports in an electronic format readable by common database and spreadsheet software products that would allow users to sort and filter the data readily by December 31, 2018. 6. To assist counties in addressing discrepancies, 1 †   Health Care Services should reevaluate and update its guidance to the counties related to prioritizing MEDS alerts by December 31, 2018. Mental Health Services 1. To effectively monitor MHSA spending and 1 March Act: The State Could provide guidance to the local mental health 2020 I Better Ensure the agencies, Health Care Services should publish Effective Use of Mental its proposed regulations in the California Health Services Act Regulatory Notice Register by June 2018 Funding and subsequently develop an MHSA fiscal 2017‑117 (February 2018) reversion process to ensure that the State can reallocate any MHSA funds that local mental health agencies do not spend within the statutory reversion time frames to other local mental health agencies that are better positioned to use the funds to meet the MHSA’s intent. 3. To effectively monitor MHSA spending and 1 March provide guidance to the local mental health 2020 agencies, Health Care Services should publish its proposed regulations in the California Regulatory Notice Register by June 2018 and subsequently establish and enforce an MHSA reserve level that will allow local mental health agencies to maintain sufficient funds to continue providing crucial mental health services in times of economic hardship, but that will not result in them holding reserves that are excessive. Health Care Services should also establish controls over local mental health agencies’ deposits and withdrawals to their reserves. California State Auditor Report 2019-041 37 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 5. To ensure that it provides effective oversight 1 March of local mental health agencies’ reporting 2020 of MHSA funds, Health Care Services should publish its proposed regulations in the California Regulatory Notice Register by June 2018. Health Care Services should then subsequently implement a process that will enable it to withhold MHSA funds from local mental health agencies that fail to submit their annual reports on time. 6. To ensure that local mental health agencies 1 December appropriately spend MHSA funds, Health 2020 Care Services should publish its proposed regulations in the California Regulatory Notice Register by September 2018. It should then develop and implement an MHSA fiscal audit process, independent of the Medi‑Cal reviews, to review revenues and expenditures for the most recent fiscal year. Skilled Nursing Facilities: 12. Health Care Services should use current data 1 August Absent Effective State to revise and update the peer groups it uses 2020 H Oversight, Substandard to set Medi‑Cal rates. In doing so, it should Quality of Care Has take into consideration the consolidation of Continued the nursing facility industry. 2017‑109 (May 2018) Department of Rehabilitation Department of 2. To ensure that management and staff 1 July Rehabilitation: Its involved in the grant process are sufficiently 2020 Inadequate Guidance informed about the process and their and Oversight of the responsibilities, Rehabilitation should require Grant Process Led these employees to attend a kickoff meeting to Inconsistencies before the development of each RFA in and Perceived Bias in which participants discuss the key stages of Its Evaluations and the grant review process, each individual’s Awards of Some Grants roles and responsibilities, and requirements 2017‑129 (July 2018) surrounding conflicts of interest and confidentiality. Further, it should record these discussions in meeting minutes to ensure that expectations of employees are clearly defined and documented. 3. To comply with state laws and regulations 1 †  and help ensure that staff involved in making governmental decisions during the grant process are impartial, Rehabilitation should ensure that they receive ethics training, which includes conflict‑of‑interest training, at least every two years. 4. To help ensure that staff involved in the grant 1 July process adequately protect confidential 2020 information, Rehabilitation should develop confidentiality procedures for each grant. Further, it should ensure that staff involved in the grant process sign the conflict‑of‑ interest and confidentiality forms before the development of the RFA for each grant. continued on next page . . . 38 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 5. To ensure that it has received sufficient input 1 July and feedback from the disability community 2020 to inform the development of RFAs, Rehabilitation should solicit and document stakeholder input and feedback before and during the development of each RFA. 6. To increase transparency and ensure that 1 July applicants have the information necessary to 2020 understand the grant process, Rehabilitation should include in its RFAs clear scoring criteria and descriptions of the evaluation, award, and appeals processes, including the process it will use to address applications that receive tied scores. 7. To ensure that Rehabilitation maintains all 1 July relevant grant documentation and responds 2020 fully to requests for public records, it should immediately adhere to its records retention policy and save all grant‑related documents, including email correspondence and attachments, to a centralized location. 9. To ensure consistency and fairness in the 1 July evaluation process, Rehabilitation should 2020 make sure that it accepts only complete applications submitted before the deadline, unless otherwise specified in the RFA. If the RFA specifies a hard deadline and applicants submit incomplete applications, Rehabilitation should not accept any portions of the applications submitted after the deadline and should assess the penalty for incomplete applications specified in the RFA. 10. To help ensure that evaluators adequately 1 July protect confidential information and that 2020 the evaluation process is fair, Rehabilitation should develop standardized evaluator training for confidentiality procedures and conflicts of interest, including a discussion of bias or the appearance of bias. Rehabilitation should also ensure that the candidates receive this training and sign conflict‑of‑ interest and confidentiality forms before it selects evaluators. Further, it should prohibit program staff who participate in the development of an RFA from acting as evaluators for the applications Rehabilitation receives in response to that RFA. 11. To increase the transparency of its selection 1 July process and to ensure that it receives the most 2020 qualified evaluators possible, Rehabilitation should issue a public solicitation for evaluators for each grant that includes a description of essential and desirable qualifications. California State Auditor Report 2019-041 39 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 12. To ensure that evaluators have the 1 July information necessary to sufficiently and fairly 2020 assess and score applications, Rehabilitation should develop training by December 2018 that can be tailored to each grant and includes at minimum the following topics: • The purpose and relevant regulatory requirements for the grant. • Instructions on how to score applications, including an applicant’s financial information, and direction that they must provide comments to support their scores. Rehabilitation should provide this training to evaluators before allowing them to score applications. 13. To ensure that it provides sufficient oversight 1 July of the grant process, Rehabilitation should 2020 ensure that the technical review teams its assigns to grants provide the director and chief deputy with a memorandum summarizing the evaluation process and the evaluators’ recommended grant awardees. Rehabilitation should also designate an individual responsible for reviewing and approving the memorandum and recommended awardees before it publishes its notice of intent to award. 14. If it finds errors in an evaluation that merit 1 July restarting the grant process, rescoring of 2020 applications, or convening a new evaluation panel, Rehabilitation should resolve any issues before it begins the rescoring process. It should also notify applicants to ensure that they are aware of any changes to the process due to the errors. Further, it should consider promulgating regulations and amending its grant manual to permit staff to request evaluators to rescore applications or convene a new evaluation panel when it finds issues with an evaluation. 15. To ensure that it consistently and thoroughly 1 July evaluates appeals, Rehabilitation should 2020 establish in state regulations and its grant manual that staff at the appropriate level of authority are to acknowledge all appeal requests, notify intended awardees that could be affected by the appeals, and inform the appellant of the qualifications of the review committee members. Staff at the appropriate level of authority must also notify all affected parties of the review committee’s final decision within the time frame Rehabilitation establishes in regulations. continued on next page . . . 40 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 16. To ensure that Rehabilitation has appropriate 1 July oversight of its grant process and can 2020 sufficiently demonstrate that it followed the process, it should designate staff, separate from those involved in the respective grant process, to conduct a review of each grant process for procedural errors, evaluator prejudice, and whether evaluators supported their scores with evidence from the relevant applications before it awards grants. 17. To comply with federal and state 1 July requirements, and to ensure consistency and 2020 fairness in its grant process, Rehabilitation should revise and formalize the policies and procedures in its grant manual to incorporate the rules adopted by regulation and to address the recommendations in this report. The grant manual should specify that any deviations from the required grant process must be for good cause and be documented. 18. To ensure that it consistently and thoroughly 1 July evaluates appeals, Rehabilitation should 2020 establish in state regulations and its grant manual a process for the review committees to request additional information from appellants or program staff. To allow time for an adequate review of any additional information, Rehabilitation should consider extending the time for review committees to issue their decision on appeals from 30 days to 45 days. 19. To ensure that it consistently and thoroughly 1 July evaluates appeals, Rehabilitation should 2020 establish in state regulations and its grant manual that to be able to rescore applications when necessary, the review committee members should be subject‑matter experts or, if they are not subject‑matter experts, the review committee should have the authority to recommend a new evaluation panel instead of rescoring applications itself when it identifies a reason to invalidate previous evaluations. Mental Health Services Oversight and Accountability Commission Mental Health Services 10. To ensure that the MHSA‑funded triage grants 1 January Act: The State Could are effective, the Oversight Commission 2020 I Better Ensure the should require that local mental health Effective Use of Mental agencies uniformly report data on their Health Services Act uses of triage grants. It should also establish Funding statewide metrics to evaluate the impact of 2017‑117 (February 2018) triage grants by July 2018. California State Auditor Report 2019-041 41 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Office of Statewide Health Planning and Development Skilled Nursing Facilities: 10. To ensure that it provides the public with 1 April Absent Effective State nursing facility information that is accurate 2020 H Oversight, Substandard and comprehensible, Health Planning should Quality of Care Has update its regulations to do the following: Continued • Append additional schedules to the 2017‑109 (May 2018) template for the annual cost report to enable nursing facilities to fully disclose related‑party transactions. • Provide a single location in the annual cost report template for nursing facilities to enter related‑party transaction amounts next to the amounts they are claiming for Medi‑Cal reimbursement. • Create an additional schedule in the cost report template that depicts how a company is investing in quality‑of‑care improvements. HIGHER EDUCATION California State University Channel Islands California State 70. Channel Islands should immediately begin 1 †  University: It Has Not following its policies to conduct departmental J Provided Adequate self‑audits to identify and address safety Oversight of the Safety concerns in its laboratories. Further, Channel of Employees and Islands should amend its chemical plan to Students Who Work With include specific expectations about how often Hazardous Materials departments and its EH&S office will conduct 2017‑119 (April 2018) self‑audits. Chancellor of the California Community Colleges California Community 3. To comply with statutory reporting 1 October Colleges: The Colleges requirements on its efforts to serve 2018 Y Reviewed Are Not students with disabilities, by June 2018, Adequately Monitoring the Chancellor’s Office should establish Services for Technology and report on a system for evaluating Accessibility, and Districts state‑funded programs and services for and Colleges Should disabled students, including its gathering of Formalize Procedures for outcome data, staff and student perceptions Upgrading Technology of program effectiveness, and data on the 2017‑102 implementation of the program. (December 2017) 4. To ensure that students with disabilities have 1 †  equal access to instructional materials, by June 2018, the Chancellor’s Office should develop guidance for the community colleges on periodically monitoring the accessibility of instructional materials and on providing training to all instructors in making their materials accessible to students with disabilities. continued on next page . . . 42 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 5. To ensure that community colleges’ websites 1 †  comply with accessibility guidelines, by September 2018, the Chancellor’s Office should provide guidance to colleges on establishing policies and procedures to monitor the accessibility of their websites. Additionally, by September 2018, the Chancellor’s Office should provide guidance on best practices for colleges to use in preventing their websites from containing inaccessible information. 7. To assist all community colleges in 1 Will Not increasing transparency of their shared Implement governance decision‑making processes, by September 2018, the Chancellor’s Office should issue guidance to the community colleges on establishing procedures to document the attendees, input received, and agreements reached during department meetings, including those to consider technology equipment requests. Sacramento State University California State 62. Sacramento should monitor the 1 October University: It Has Not implementation of its new processes for 2019 J Provided Adequate inspecting safeguards to ensure that it Oversight of the Safety completes monthly flushes of eyewashes and of Employees and showers as state regulations require. Students Who Work With Hazardous Materials 2017‑119 (April 2018) San Diego State University California State 38. To ensure the health and safety of employees 1 †  University: It Has Not working with hazardous materials, San Diego J Provided Adequate should, by December 2018, make the required Oversight of the Safety trainings available to employees and establish of Employees and procedures for ensuring that the employees Students Who Work With have received all required trainings. Hazardous Materials 42. To ensure the health and safety of employees 1 †  2017‑119 (April 2018) working with hazardous materials, San Diego should, going forward, regularly monitor employee training records to ensure that all employees have received the required trainings. 56. To ensure the health and safety of students 1 †  in a laboratory setting, beginning in the Fall 2018 semester, San Diego should perform reviews at least annually to ensure that all departments are using the student training acknowledgement forms and are complying with the retention requirement. 67. San Diego should continue to implement its 1 December new policy to regularly review open work 2019 orders to ensure that it closes work orders in a timely fashion. California State Auditor Report 2019-041 43 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 73. San Diego should ensure that it documents 1 †  all self‑audits it conducts, including when it does not identify any violations during the audit. Further, San Diego should continue to implement and follow its new process to include reviews of safeguard inspections as a part of its self‑audits. Sonoma State University California State 52. To ensure the health and safety of students 1 †  University: It Has Not in a laboratory setting, beginning in the J Provided Adequate Fall 2018 semester, Sonoma should require Oversight of the Safety departments to have those students required of Employees and to wear PPE sign the student safety training Students Who Work With acknowledgement forms to demonstrate Hazardous Materials that they have received proper laboratory 2017‑119 (April 2018) safety training. 71. Sonoma should immediately begin following 1 †  its policies to conduct departmental self‑audits to identify and address safety concerns in its laboratories. Further, Sonoma should ensure that its self‑audits review whether timely flushes of eyewashes and showers have occurred. As part of self‑audits, Sonoma’s departments should ensure that fume hoods have received annual inspections. Finally, Sonoma’s EH&S department should regularly review whether departments are conducting self‑audits. The California State University California State 4. Once it has developed the health and safety 1 January University: It Has Not reporting template and campuses have used 2020 J Provided Adequate it to submit their reports, the Chancellor’s Oversight of the Safety Office should assess the data and information of Employees and in the reports to identify trends, risks, and Students Who Work With best practices. Hazardous Materials 5. Once it has developed the health and safety 1 January 2017‑119 (April 2018) reporting template and campuses have used 2020 it to submit their reports, the Chancellor’s Office should develop recommendations for improving campus health and safety and follow up on the campuses’ implementation of any corrective actions related to these recommendations. 6. Once it has developed the health and safety 1 January reporting template and campuses have used 2020 it to submit their reports, the Chancellor’s Office should incorporate the risks identified in its assessments into the University Auditor’s audit plan to ensure that the University Auditor evaluates problem areas related to campus health and safety. continued on next page . . . 44 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 7. Once it has developed the health and safety 1 January reporting template and campuses have used 2020 it to submit their reports, the Chancellor’s Office should follow up with campuses that fail to submit the required annual health and safety reports and take appropriate steps to ensure compliance with this requirement. 10. To ensure the health and safety of employees 1 April working with hazardous materials, the 2020 Chancellor’s Office should prescribe the frequency for which the campuses provide refresher laboratory safety training to employees. 58. As part of the uniform health and safety‑ 1 January reporting template that we recommend that 2020 it develop, the Chancellor’s Office should require campuses to annually report on the timeliness of their inspections of safeguards, engineering controls, and ventilation systems and identify the reasons for any delays. 59. Based on campuses annual reports on the 1 January timeliness of their inspections of safeguards, 2020 engineering controls, and ventilation systems, the Chancellor’s Office should follow up with campuses that report untimely inspections and should require that the campuses develop action plans to ensure that they complete inspections as often as state regulations require. California State 3. To improve the oversight of CSU’s 2 June University: Stronger management personnel, the Chancellor’s 2021 Oversight Is Needed Office should work with campuses, for Hiring and bargaining unit representatives, the Public Compensating Employment Relations Board, and others as Management Personnel necessary to come to an agreement on the and for Monitoring appropriate classification of coaches. The Campus Budgets Chancellor’s Office should take into account 2016‑122 (April 2017) the concerns that San Diego State has raised about the labor market for these employees. 10. The Chancellor’s Office should finish 2 December developing the Common Human Resources 2022 System and implement it as scheduled by December 2019. California State Auditor Report 2019-041 45 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION University of California The University of 5. To determine the amount of money that it 2 July California Office of the can reallocate to campuses and to ensure 2019 F President: It Failed to that it publicly presents comprehensive and Disclose Tens of Millions accurate budget information, by April 2018 the in Surplus Funds, and Office of the President should implement our Its Budget Practices Are recommended budget presentation shown in Misleading Figure 11 on page 40. Specifically, the Office 2016‑130 (April 2017) of the President’s budget presentation to the regents should include a comparison of its proposed budget to its actual expenditures for the previous year. It should also include all its expenditures and identify changes to the discretionary and restricted reserves. The Office of the President should combine both the disclosed and undisclosed budgets into one budget presentation. 22. To determine the amount of money that it 2 July can reallocate to campuses and to ensure 2019 that it publicly presents comprehensive and accurate budget information, by April 2019 the Office of the President should continue to present a comprehensive budget based on the presentation in Figure 11 to the regents, the Legislature, and the public. 23. To ensure that its staffing costs align with the 2 March needs of campuses and other stakeholders, 2019 by April 2019 the Office of the President should set targets for any needed reductions to salary amounts using the results from its public and private sector comparison and adjust its salaries accordingly. 32. To determine the amount of money that it can 2 April reallocate to campuses and to ensure that it 2020 publicly presents comprehensive and accurate budget information, by April 2020 the Office of the President should evaluate its budget process to ensure that it is efficient and has adequate safeguards that ensure that staff approve and justify all budget expenditures. If the Office of the President determines that its safeguards are sufficient, it should begin developing a multiyear budget plan. 34. To ensure that its staffing costs align with the 2 April needs of campuses and other stakeholders, 2019 by April 2020 the Office of the President should adjust its salary levels and ranges to meet its established targets. continued on next page . . . 46 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 36. To ensure that its staffing costs align with the 2 †  needs of campuses and other stakeholders, by April 2020 the Office of the President should reallocate funds to campuses when adjustments to its salaries and benefits result in savings. 38. To ensure that its staffing costs align with the 2 April needs of campuses and other stakeholders, by 2020 April 2020 the Office of the President should implement phases four and five of CalHR’s best practice workforce planning model by implementing its workforce plan strategies and annually evaluating the completed workforce plan strategies against defined performance indicators and revising the plan where necessary. 39. To ensure that its staffing costs align with the 2 †  needs of campuses and other stakeholders, by April 2020 the Office of the President should report to the regents on the amount of funds it reallocates to campuses as a result of implementing our recommendations. The University of 8. To ensure that the university achieves its 2 †   California Office of the goals of obtaining services at the lowest President: It Has Not cost or best value and of providing vendors Adequately Ensured with fair access to contracting opportunities, Compliance With Its the Office of the President should revise Employee Displacement the university’s contract manual to and Services Contract incorporate the best practices found in the Policies State Contracting Manual for limiting the 2016‑125.1 use of amendments to repeatedly extend (August 2017) existing contracts. 9. To ensure that the university achieves its 2 †   goals of obtaining services at the lowest cost or best value and of providing vendors with fair access to contracting opportunities, the Office of the President should revise the university’s contract manual to narrow the exemption from competition to only selected professional services, similar to the State Contracting Manual. 15. To maximize benefits from the systemwide 2 4th quarter of procurement initiative and to ensure that the calendar year university uses those benefits for its teaching, 2020 research, and public service missions, the Office of the President should study ways to measure actual procurement benefits— possibly focusing this effort on benefits from larger dollar amounts—and if such measurement is not possible, it should clearly disclose to the regents and the public that the amounts it reports are based on estimates. California State Auditor Report 2019-041 47 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 16. To maximize benefits from the systemwide 2 4th quarter of procurement initiative and to ensure that the calendar year university uses those benefits for its teaching, 2020 research, and public service missions, the Office of the President should, if actual benefits are measurable, implement a process to monitor and report annually to the regents the estimated and actual benefits. The University of 4. To ensure prompt resolution of sexual 1 October California: It Must Take harassment complaints against faculty 2020 Additional Steps to respondents, the Office of the President Address Long‑Standing should do the following: Issues With Its Response After the Academic Senate develops written to Sexual Harassment requirements to specify exact time frames, Complaints complete an annual review of all cases 2017‑125 (June 2018) involving Senate faculty to determine the length of time the adjudication process lasted. If an adjudication process takes longer than the time frames specified, the Office of the President should work with the Regents and the Academic Senate to develop further measures to enforce a more prompt adjudication process. The Office of the President should complete its first review by October 2020. 24. To address any patterns or systemic problems 1 †  of sexual harassment, by July 2019 the systemwide office should work with each campus to develop and implement processes and data reports to assist the campus in regularly identifying patterns and systemic problems related to sexual harassment and in instituting sexual harassment prevention education and training in those areas that need it. 25. To address any patterns or systemic problems 1 †  of sexual harassment, by July 2019 the systemwide office should work with each campus to implement ongoing data quality control processes in order to ensure sexual harassment complaints data are accurate and complete. 26. To address any patterns or systemic problems 1 †  of sexual harassment, by July 2019 the systemwide office should identify and review campuses’ complaints data to identify outliers in their use of the formal, informal, and administratively closed processes. The University of 1. To meet its commitment to California 3 †   California: Its Admissions residents, the university should replace and Financial Decisions its “compare favorably” policy with a Have Disadvantaged new admission standard for nonresident California Resident applicants that reflects the intent of the Students Master Plan. The admission standard should 2015‑107 (March 2016) require campuses to admit only nonresidents with admissions credentials that place them in the upper half of the residents it admits. continued on next page . . . 48 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 2. To meet its commitment to California 3 2020— residents, the university should amend its Aligned with referral process by taking steps to increase UC Merced the likelihood that referred residents 2020 Project ultimately enroll. 3. To ensure that campuses’ interpretations of 3 †   admission standards do not adversely impact residents, the university should implement a thorough process to annually evaluate the qualifications of students who apply and students who are admitted. These evaluations should highlight instances when campuses admit nonresidents who are less qualified than residents and should include corrective action steps. Moreover, this evaluation should include resident and nonresident undergraduate enrollment in majors at each campus. The university should make the results of this evaluation—including details of the academic qualifications of students who applied and who were admitted— publicly available. 8. To ensure the reasonableness of the 3 December compensation the university pays its 2020 executives, it should include—to the extent possible— all items of compensation when setting or adjusting salaries and benefits, when conducting surveys and studies, and when comparing the compensation packages of its executives to those in similar positions outside the university. 10. To improve the transparency and timeliness 3 Will Not of its annual compensation report, the Implement university should streamline the process it uses to prepare the report so it can be issued by April of each year. 12. To maximize the savings and new revenue 3 Ongoing from the Working Smarter initiative and ensure that the university uses them for its academic and research missions, the Office of the President should immediately require that the campuses fully participate in all projects unless they can provide compelling evidence demonstrating a harmful effect. 13. To maximize the savings and new revenue from 3 †   the Working Smarter initiative and ensure that the university uses them for its academic and research missions, the Office of the President should, by June 30, 2016, to the extent possible, implement a process to centrally direct these funds to ensure that campuses use them to support the core academic and research missions of the university. California State Auditor Report 2019-041 49 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 14. To maximize the savings and new revenue 3 Ongoing from the Working Smarter initiative and ensure that the university uses them for its academic and research missions, the Office of the President should ensure that it substantiates that projects are actually generating savings and new revenue and that it can demonstrate how the university uses these funds. 15. To ensure that its recruiting efforts benefit 3 †   residents, the university should prioritize recruiting residents over nonresidents. In particular, the university should focus its recruiting efforts broadly to ensure that it effectively recruits resident underrepresented minorities. For example, the university could establish a limit on the amount of funds it dedicates to nonresident recruiting. Further, it should develop a process to better track its nonresident and resident recruiting expenditures. 16. To determine if the campuses are using 3 †   funds to further the goals of the University of California system and the Legislature, the Office of the President should begin regularly monitoring and analyzing how campuses are using both state funds and nonresident supplemental tuition. If, after the close of the fiscal year, the Office of the President determines that campuses are not using state funds and/or nonresident supplemental tuition in accordance with those goals, the Office of the President should take steps to correct the campuses’ spending decisions as soon as possible. 17. To ensure that it spends state funds prudently 3 †   for programs that do not directly relate to educating students, the university should track spending from state funds for programs that do not relate to educating students. 18. To ensure that it spends state funds prudently 3 †  for programs that do not directly relate to educating students, the university should reevaluate these programs each year to determine whether they continue to be necessary to fulfill the university’s mission. 19. To ensure that it spends state funds prudently 3 †   for programs that do not directly relate to educating students, the university should explore whether the programs could be supported with alternate revenue sources. continued on next page . . . 50 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 22. To ensure that its rebenching efforts lead to 3 September equalized per‑student funding among the 2020 campuses, the university should adopt a methodology that it can use, at least every three to five years, to update its weighting system to ensure the weight factors take into account campuses’ actual costs of instruction, using the cost study that we recommend in Chapter 1 and other revenue sources if necessary. 23. To ensure that its rebenching efforts lead to 3 Will Not equalized per‑student funding among the Implement campuses, the university should exclude from its rebenching calculation all state funding it uses for programs that do not directly relate to educating students. The university should exclude these programs only after it has evaluated them in accordance with the recommendation we made previously. University of California, Board of Regents The University of 7. To ensure the ongoing accountability of the 2 April California Office of the Office of the President, the regents should 2020 F President: It Failed to require it to implement our recommendations Disclose Tens of Millions and report periodically on its progress. in Surplus Funds, and Its Budget Practices Are Misleading 2016‑130 (April 2017) 14. To ensure that the Office of the President’s 2 April staffing levels are justified and that costs 2020 are reasonable and align with the needs of campuses and other stakeholders, the regents should require the Office of the President to implement our recommendations and report periodically on its progress. 15. To ensure that the Office of the President 2 April is engaging in a thorough review of its 2020 systemwide and administrative costs and implementing our recommendations, the regents should develop a contract for an independent third party that can assist the regents in monitoring implementation of the three‑year corrective action plan for the Office of the President. The independent third party should have expertise in higher education, public administration, and public finance. Moreover, the independent third party should have complete access to the Office of the President’s documentation and its staff so that it has sufficient and appropriate information to verify the Office of the President’s actions. The independent third party should report to the regents on the Office of the President’s progress, challenges, and barriers to success at least quarterly. California State Auditor Report 2019-041 51 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION University of California, Davis University of California, 4. UC Davis should collect all late fees that its 4 Will Not Davis: It Has Not licensees owe. Implement Identified Future Financing for the Strawberry Breeding Program nor Collected All Available Revenues 2014‑121 (June 2015) University of California, Los Angeles Sexual Harassment 9. To help ensure that university faculty and 5 Spring and Sexual Violence: staff do not mishandle student reports of 2020 California Universities incidents, all faculty and staff should receive Must Better Protect training annually, consistent with their role, Students by Doing More on their obligations in responding to and to Prevent, Respond to, reporting incidents of sexual harassment and and Resolve Incidents sexual violence. 2013‑124 (June 2014) 21. All universities should provide their education 5 January on sexual harassment and sexual violence 2020 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. K–12 EDUCATION California Department of Education California Department 1. To strengthen its administrative reviews and 2 Will Not of Education: It Has Not help ensure that school food authorities Implement X Ensured That School comply with the Buy American requirement, Food Authorities Comply Education should update its written With the Federal Buy procedures to include a requirement that American Requirement reviewers collect and retain evidence for 2016‑139 (July 2017) all items they evaluate for compliance with the Buy American requirement. This update should occur no later than October 1, 2017. continued on next page . . . 52 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Community Child Care 4. To make its appeal process more accessible 1 Will Not Council of Santa Clara to families who may not receive a satisfactory Implement AA County: Because It resolution from its contractors, Education Disadvantaged Some should, by October 2018, require that its Families and Misused contractors share key information in their State Funds, It Could communications with families about the Benefit From Increased process for appealing notices. The required Monitoring by the information should include valid grounds California Department for a family to file an appeal as well as of Education information or documentation Education 2017‑116 (April 2018) would need in order to review the family’s appeal of adverse decisions regarding their child‑care services. Education should also require contractors to incorporate this information into contractually mandated staff training and into publicly available policies and procedures. 11. To ensure that its contractors can effectively 1 Will Not make program improvements and maintain Implement successes in ways that are meaningful to their stakeholders, Education should adopt measures to ensure its contractors follow the terms of their contracts by demonstrating that their board members conduct a critical appraisal of each education program. 15. To ensure the appropriate use of state grant 1 June 2020 funds, Education should determine, to the extent possible, the amount of supplemental plan funds that did not comply with federal requirements, and it should require 4Cs to reimburse the State for improper payments of state funds it made to the supplemental plan. School Library Services: 23. To better understand the condition of school 2 Will Not Vague State Laws and libraries statewide and to raise stakeholders’ Implement W a Lack of Monitoring awareness of the State Education Board’s Allow School Districts to adopted model standards, Education should Provide a Minimal Level identify school districts that reported of Library Services employing significantly fewer teacher 2016‑112 librarians in fiscal year 2015‑16 than in (November 2016) previous years and verify the accuracy of their fiscal year 2015‑16 reports. School Violence 8. To ensure that districts, county offices, and 2 December Prevention: School schools receive guidance on a variety of 2020 G Districts, County safety issues and to comply with state law, Offices of Education, CDE and DOJ should resume their partnership and the State Must Do activities, as required by state law. Further, More to Ensure That the partnership should update the 2002 School Safety Plans handbook, “Safe Schools: A Planning Guide Help Protect Students for Action,” and distribute it to all districts and and Staff During county offices. If CDE or DOJ determine the Emergencies need for additional funds to implement the 2016‑136 (August 2017) legislative recommendations or to reestablish the partnership’s activities, they should request those funds from the Legislature. California State Auditor Report 2019-041 53 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Student Mental Health 3. To ensure that all LEAs comply with federal 3 Will Not Services: Some Students’ special education requirements, Education Implement U Services Were Affected should require them to include directly in by a New State Law, a student’s IEP document reasons for any and the State Needs changes to student placement or services. to Analyze Student 8. To enable it to review additional areas of 3 Will Not Outcomes and Track its special education program for quality Implement Service Costs assurance, Education should collect 2015‑112 (January 2016) information about the frequency of the provision of each service contained in all students’ IEPs. Education should then use this information to annually review the frequency of mental health services and follow up with SELPAs when it observes a significant reduction in the frequency of services. 9. To ensure that LEAs comply with federal 3 Will Not and state requirements, Education should Implement require all LEAs to use the IEP document to communicate the rationale for residential treatment and any potential harmful effects of such placement. 18. Education should analyze and report to the 3 Will Not Legislature, by May 30, 2016, on the outcomes Implement for students receiving mental health services statewide, including outcomes across the six performance indicators we identified, in order to demonstrate whether those services are effective. Once it has reported this statewide information, Education should provide each LEA throughout the State a report regarding the outcomes for the students the LEA served. 20. To ensure that the State knows the amount 3 Will Not LEAs spend to provide mental health Implement services for student IEPs, before the start of the 2017–18 fiscal year, Education should develop, and require all LEAs to follow, an accounting methodology to track and report expenditures related to special education mental health services. 29. To ensure that the State provides special 3 Will Not education and related services to all eligible Implement students, Education should investigate the difference between the estimated number of school aged children statewide who have a severe emotional disturbance and the number receiving mental health services through an IEP and determine the reason for such a discrepancy. Education should then take any steps necessary to assist LEAs in identifying and providing services to children who are severely emotionally disturbed. continued on next page . . . 54 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Uniform Complaint 3. To ensure that it consistently processes 2 December Procedures: The complaints and appeals in a timely manner 2020 California Department and that it investigates and reviews all UCP of Education’s complaints and appeals in compliance with Inadequate Oversight state law and regulations, by July 2017 Has Led to a Lack Education should designate a central office of Uniformity and to receive all complaints and appeals. This Compliance in central office should distribute complaints the Processing of and appeals to the correct divisions for Complaints and Appeals investigation or review. 2016‑109 (January 2017) 4. To ensure that it consistently processes 2 December complaints and appeals in a timely manner 2020 and that it investigates and reviews all UCP complaints and appeals in compliance with state law and regulations, by July 2017 Education should designate a central office to receive all complaints and appeals. This central office should establish a single database to record and track all investigations of complaints and reviews of appeals. This database should capture all data necessary for Education to effectively make informed decisions related to UCP complaints or appeals. At a minimum, the database should capture the date on which Education received each complaint or appeal, the date on which it forwarded the complaint or appeal to the appropriate division for investigation or review, and the date on which it sent the decision to the complainant. The database should also include the type of complaint or appeal, the LEA involved, and the decision. 5. To ensure that it consistently processes 2 December complaints and appeals in a timely manner 2020 and that it investigates and reviews all UCP complaints and appeals in compliance with state law and regulations, by July 2017 Education should designate a central office to receive all complaints and appeals. This central office should track the divisions’ progress in processing complaints and appeals to ensure the divisions meet all UCP requirements, including documenting exceptional circumstances that constitute good cause for extending investigations beyond 60 days. California State Auditor Report 2019-041 55 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 6. To ensure that it consistently processes 2 December complaints and appeals in a timely manner 2020 and that it investigates and reviews all UCP complaints and appeals in compliance with state law and regulations, by July 2017 Education should designate a central office to receive all complaints and appeals. This central office should work with divisions to establish policies and procedures for the divisions to follow when investigating UCP complaints and reviewing appeals. The procedures should identify the individuals or units responsible for investigating complaints and reviewing appeals, the steps and time frames for conducting investigations and reviews, the requirements for issuing decisions, and the documentation that should be retained in the files. 7. To ensure that it consistently processes 2 December complaints and appeals in a timely manner 2020 and that it investigates and reviews all UCP complaints and appeals in compliance with state law and regulations, by July 2017 Education should designate a central office to receive all complaints and appeals. This central office should establish and distribute a standard investigation report format that includes the required elements for the divisions to use when processing UCP complaints. 8. To ensure that it consistently processes 2 December complaints and appeals in a timely manner 2020 and that it investigates and reviews all UCP complaints and appeals in compliance with state law and regulations, by July 2017 Education should designate a central office to receive all complaints and appeals. This central office should monitor the divisions’ decisions and reports on complaints and appeals to ensure that they comply with requirements. 16. To increase the efficiency and effectiveness of 2 Will Not LEAs’ UCP processes, Education should work Implement with those LEAs throughout the State that receive a disproportionately high number of non‑UCP complaints through the UCP process to assess the potential benefits of establishing similar mechanisms. 22. To ensure that its regulations are consistent 2 Will Not and align with state and federal requirements, Implement Education should revise its regulations to allow LEAs to extend investigations under exceptional circumstances that constitute good cause if the LEAs document and support with evidence the reasons for the extensions. continued on next page . . . 56 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 23. After it makes the recommended regulatory 2 Will Not changes to allow extensions under exceptional Implement circumstances, Education should review LEAs’ extensions to investigations as part of its Federal Program Monitoring to ensure that LEAs’ documentation is sufficient and that their reasons adequately justify such extensions. 28. Education should revise UCP regulations to 2 March formally establish uniform time limits for 2020 filing all types of complaints. LEGISLATIVE, JUDICIAL, AND EXECUTIVE California Department of Justice California Department 19. To ensure that it has complete disposition 2 May of Social Services: Its information, Justice should coordinate with 2019 E Caregiver Background the Judicial Council at least once a year to Check Bureau Lacks share information about court reporting Criminal History gaps and to determine the need to distribute Information It Needs additional information to courts about to Protect Vulnerable reporting requirements and the manner in Populations in Licensed which to report. In addition, Justice should Care Facilities reconvene its advisory committee and meet 2016‑126 (March 2017) on a regular basis to discuss, at a minimum, improving the frequency and timeliness with which courts report dispositions to Justice and law enforcement agencies report arrest information to Justice. 20. To ensure that it is receiving all arrest 2 Will Not information from law enforcement agencies, Implement at a minimum, Justice should consider trends in the number of arrest reports each law enforcement agency sends it and the number of reports that it might expect to receive from an agency given the agency’s size, location, and reporting history. Whenever Justice identifies a law enforcement agency that it determines may not be reporting all required information, it should request that the agency forward all required arrest information. Hate Crimes in California: 1. To ensure that it receives complete and 1 January Law Enforcement accurate data, DOJ should, by May 2019, 2021 CC Has Not Adequately develop and maintain a list of law Identified, Reported, enforcement agencies that it updates or Responded to Hate annually, obtain hate crime data from all law Crimes enforcement agencies, distribute additional 2017‑131 (May 2018) guidance to those agencies on procedures for reporting hate crimes, and conduct periodic reviews of law enforcement agencies to ensure that the data they report are accurate. It should also seek the resources to implement these efforts, if necessary. 3. To increase the effectiveness of hate crime 1 January prevention and response efforts, DOJ should 2021 provide additional guidance to law enforcement agencies by adding region‑specific data fields to the hate crime database, including items such as the zip code in which reported hate crimes took place and other fields that DOJ determines will support its outreach efforts. California State Auditor Report 2019-041 57 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 4. To increase the effectiveness of hate crime 1 January prevention and response efforts, DOJ 2021 should provide additional guidance to law enforcement agencies by analyzing reported hate crimes in various regions in the State and sending advisory notices when it detects hate crimes happening across multiple jurisdictions. It should also seek the resources to implement these efforts, if necessary. 5. To increase the effectiveness of hate crime 1 January prevention and response efforts, DOJ should 2021 provide additional guidance to law enforcement agencies by creating and disseminating outreach materials so law enforcement agencies can better engage with their communities. 6. To increase the effectiveness of hate crime 1 January prevention and response efforts, DOJ 2021 should provide additional guidance to law enforcement agencies by creating and making available training materials for law enforcement agencies on how best to identify and respond to hate crimes. 7. To ensure that law enforcement agencies 1 January effectively engage with communities regarding 2021 hate crimes, DOJ should provide guidance and best practices for law enforcement agencies to follow when conducting hate crime outreach to vulnerable communities within their jurisdictions, such as collaborating with a county human rights commission. It should make the outreach materials available to law enforcement agencies and should include in them presentation materials for various types of communities, including immigrants and Muslims, among others. It should seek the resources to implement these efforts, if necessary. School Violence 9. To ensure that districts, county offices, and 2 Unknown Prevention: School schools receive guidance on a variety of G Districts, County safety issues and to comply with state law, Offices of Education, CDE and DOJ should resume their partnership and the State Must Do activities, as required by state law. Further, More to Ensure That the partnership should update the 2002 School Safety Plans handbook, “Safe Schools: A Planning Guide Help Protect Students for Action,” and distribute it to all districts and and Staff During county offices. If CDE or DOJ determine the Emergencies need for additional funds to implement the 2016‑136 (August 2017) legislative recommendations or to reestablish the partnership’s activities, they should request those funds from the Legislature. continued on next page . . . 58 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION Sexual Assault Evidence 4. To report to the Legislature about the 5 †   Kits: Although Testing All effectiveness of its RADS program and to Kits Could Benefit Sexual better inform decisions about expanding the Assault Investigations, number of analyzed sexual assault evidence the Extent of the kits, Justice should amend its agreements Benefits Is Unknown with the counties participating in the RADS 2014‑109 (October 2014) 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. The CalGang Criminal 10. As the Legislature considers creating a public 3 January Intelligence System: As program for shared gang database oversight 2020 V the Result of Its Weak and accountability, Justice should guide Oversight Structure, It the board and the committee to identify Contains Questionable and address the shortcomings that exist in Information That May CalGang’s current operations and oversight. Violate Individuals’ The guidance Justice provides to the board Privacy Rights and the committee should address, but not 2015‑130 (August 2016) be limited to, developing best practices based on the requirements stated in the federal regulations, the state guidelines and state law, and advising user agencies on the implementation of those practices. The best practices should include, but not be limited to reviewing criminal intelligence, appropriately disseminating information, performing robust audit practices, establishing plans to recover from disasters, and meeting all of the State’s juvenile notification law requirements. Justice should guide the board and the committee to develop these best practices by June 30, 2017. 11. As the Legislature considers creating a public 3 January program for shared gang database oversight 2020 and accountability, Justice should guide the board and the committee to identify and address the shortcomings that exist in CalGang’s current operations and oversight. The guidance Justice provides to the board and the committee should address, but not be limited to, instructing user agencies that use CalGang to complete a comprehensive review of all the gangs documented in CalGang to determine if they meet the necessary requirements for inclusion and to purge from CalGang any groups that do not meet the requirements. Justice should guide the board and the committee to ensure that user agencies complete this review in phases, with the final phase to be completed by June 30, 2018. California State Auditor Report 2019-041 59 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 12. As the Legislature considers creating a public 3 To Be program for shared gang database oversight Determined and accountability, Justice should guide the board and the committee to identify and address the shortcomings that exist in CalGang’s current operations and oversight. The guidance Justice provides to the board and the committee should address, but not be limited to, instructing all user agencies to complete a comprehensive review of the records in CalGang to determine if the user agencies have adequate support for the criteria associated with all the individuals they have entered as gang members. If the user agencies do not have adequate support, they should immediately purge the criteria—and, if necessary, the individuals—from CalGang. In addition, the user agencies should ensure that all the fields in each CalGang record are accurate. Justice should guide the board and the committee to ensure that user agencies complete this review in phases, with the final phase to be completed by September 30, 2019. 13. As the Legislature considers creating a public 3 To Be program for shared gang database oversight Determined and accountability, Justice should guide the board and the committee to identify and address the shortcomings that exist in CalGang’s current operations and oversight. The guidance Justice provides to the board and the committee should address, but not be limited to, instructing all user agencies to report to Justice every six months, beginning in January 2017, on their progress toward completing their gang and gang member reviews. 19. To promote transparency and encourage 3 February public participation in CalGang’s meetings, 2021 Justice should post summary results from the committee’s audits of CalGang records to its website unless doing so would compromise criminal intelligence information or other information that must be shielded from public release. California Department of Tax and Fee Administrationll State Board of 2. Unless the Legislature directs the board 3 December Equalization: Its Tobacco to eliminate the compliance fund’s excess 2020 Tax Enforcement Efforts fund balance within a time frame of more Are Effective and than a year, the board should eliminate the Properly Funded, but excess fund balance by June 30, 2017 by Other Funding Options using it to offset the licensing program’s and Cost Savings Are annual funding shortfall. The board should Possible also limit the fund’s future balance to no 2015‑119 (March 2016) more than two months’ worth of licensing program expenditures. continued on next page . . . 60 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION The Bradley-Burns Tax 6. To help address California’s e‑commerce tax 1 Will Not and Local Transportation gap and further ensure out‑of‑state retailers’ Implement Funds: Changing the compliance with state law regarding nexus, Allocation Structure for Tax Administration should implement a the Bradley‑Burns Tax two‑year pilot of its authorized reward Would Result in a More program for information resulting in the Equitable Distribution identification of unreported sales and of Local Transportation use taxes. Funding 2017‑106 (November 2017) California Health Facilities Financing Authority Children’s Hospital 1. The authority should amend its regulations 4 Will Not Program: The California to bring them into accord with the 2004 act, Implement Health Facilities thus allowing any eligible hospital to apply Financing Authority Has for the 2004 act’s funds that remained as of Generally Complied With June 30, 2014. Laws and Regulations and Resolved Its Issue Related to High Fund Balances 2015‑042 (September 2015) Judicial Council of California# Judicial Branch of 1. To ensure that the compensation the AOC 4 Will Not California: Because of provides is reasonable, the Judicial Council Implement Questionable Fiscal and should adopt procedures that require a Operational Decisions, regular and thorough review of the AOC’s the Judicial Council compensation practices including an analysis and the Administrative of the job duties of each position to ensure Office of the Courts that the compensation aligns with the Have Not Maximized the requirements of the position. This review Funds Available for the should include comparable executive branch Courts salaries, along with a justification when an 2014‑107 (January 2015) AOC position is compensated at a higher level than a comparable executive branch position. 3. To ensure that its compensation structure is 4 Will Not reasonable, the AOC should mirror the executive Implement branch’s practices for offering leave buyback programs in terms of frequency and amount. 4. To increase its efficiency and decrease its 4 Will Not travel expenses, the AOC should require its Implement directors and managers to work in the same locations as the majority of their staff unless business needs clearly require the staff to work in different locations than their managers. 11. To reduce its expenses, the AOC should cease 4 Will Not its excessive reimbursements for meals by Implement adopting the executive branch’s meal and travel reimbursement policies. California State Auditor Report 2019-041 61 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 14. To ensure that it spends funds appropriately, 4 Will Not the AOC should develop and implement Implement controls to govern how its staff can spend judicial branch funds. These controls should include specific definitions of local assistance and support expenditures, written fiscal policies and procedures as the rules of court require, and a review process. 19. The AOC should conduct a comprehensive 4 Will Not survey of the courts on a regular schedule— Implement at least every five years—to ensure that the services it provides align with their responses. The AOC should re‑evaluate any services that the courts identify as being of limited value or need. 20. To justify its budget and staffing levels, the 4 Will Not AOC should conduct the steps in CalHR’s Implement workforce planning model in the appropriate order. It should begin by establishing its mission and creating a strategic plan based on the needs of the courts. It should then determine the services it should provide to achieve the goals of that plan. The AOC should base its future staffing changes on the foundation CalHR’s workforce planning model provides. Finally, the AOC should develop and use performance measures to evaluate the effectiveness of this effort. 21. To ensure that it provides services to the trial 4 Will Not courts as efficiently as possible, the Judicial Implement Council should explore implementing a fee‑for‑service model for selected services. These services could include those that are little used or of lesser value to the trial courts, as identified in our survey that we discuss in Chapter 3. 22. To justify the budget and staff level of the 4 Will Not AOC, the Judicial Council should implement Implement some or all of the best practices we identified to improve the transparency of AOC spending activities. Judicial Branch 3. To improve the usefulness of the Judicial 5 Undetermined Procurement: Council’s semiannual reports until a statutory Semiannual Reports requirement is enacted, the AOC should to the Legislature Are work with the Judicial Council to pursue a of Limited Usefulness, cost‑effective method to do the following: Information Systems • Include new contracts and the complete Have Weak Controls, and history of contracts amended during Certain Improvements the reporting period in the semiannual in Procurement reports, including the date of the original Practices Are Needed contract; the original contract amount 2013‑302 and 2013‑303 and duration; all subsequent contract (December 2013) amendments; and the date, amount, and duration of each such amendment. The AOC should present this information beginning with the semiannual report covering the July 1, 2014, through December 31, 2014, reporting period. continued on next page . . . 62 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 4. To improve the usefulness of the Judicial 5 Undetermined Council’s semiannual reports until a statutory requirement is enacted, the AOC should work with the Judicial Council to pursue a cost‑ effective method to do the following: • Begin tracking additional information in its data systems for inclusion in the semiannual reports. This information should include whether a contract was competitively bid, the justification if it was not competitively bid, and whether the contract was with a Disabled Veteran Business Enterprise. For information technology contracts, the AOC should identify whether the contract was with a small business. The AOC should present this information beginning with the semiannual report covering the July 1, 2014, through December 31, 2014, reporting period. 5. The AOC should implement all of the best 5 Unknown practices related to general and business process application controls as outlined in the U.S. Government Accountability Office’s Federal Information System Controls Audit Manual no later than December 31, 2014, thereby strengthening and continuously monitoring the effectiveness of the controls over its information systems. In addition, the AOC should immediately begin implementing improvements to its controls over access to its information systems and place these improvements into effect by February 2014. Finally, the AOC should provide guidance and routinely follow up with the superior courts— requiring updates every six months until all identified issues are corrected—to ensure that they make the necessary improvements to their general and business process application controls. 6. The AOC, the Supreme Court, and the first, 5 Will Not second, and fourth districts should implement Implement procedures to ensure that they follow a competitive process for their procurements when required. 13. The AOC should revise the judicial contracting 5 Will Not manual to require judicial entities to maintain Implement documentation on their determinations of fair and reasonable pricing for purchases under $5,000. 17. The AOC should revise the judicial 5 Will Not contracting manual to require that judicial Implement entities maintain documentation for their evaluation and selection process used for competitive procurements. The AOC should also strengthen its procedures to ensure that bid evaluations are conducted properly and calculated correctly. California State Auditor Report 2019-041 63 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 20. The AOC, HCRC, Supreme Court, and 5 Will Not fourth and fifth districts should implement Implement procedures to ensure that required noncompetitive procurement processes, such as preparing justifications and obtaining approval for sole‑source procurements, are properly documented. Additionally, the AOC should ensure that it prepares the appropriate documentation when it amends a contract that it has competitively solicited and the amendment includes a change that was not evaluated in the original competitive process. 25. The AOC should implement procedures 5 Will Not to ensure that its internal controls Implement over payments are followed and that procurements are approved before ordering and receiving goods and services. Secretary of State’s Office Santa Clara County 11. The Secretary of State should adopt 2 December Registrar of Voters: regulations establishing clear criteria for 2021 Z Insufficient Policies mistakes in election‑related materials that and Procedures Have constitute reportable errors and require Led to Errors That counties to report these errors to it after May Have Reduced each election. Voters’ Confidence in 12. Beginning in December 2018, the Secretary 2 December the Registrar’s Office of State should implement annual risk‑based 2021 2017‑107 (October 2017) reviews of a selection of county election officials’ offices to ensure their compliance with state election laws and regulations. 13. To inform and enhance the guidance it 2 December provides to county election officials, the 2021 Secretary of State should analyze error reports and its risk‑based review results to focus its guidance on topics most relevant to improving elections throughout the State. State Bar of California The State Bar of 6. To assign purchasing cards only to 2 1st Quarter California: It Needs appropriate staff, ensure that the State Bar’s 2020 Additional Revisions records of employees’ credit limits reflect to Its Expense Policies those established with the bank, and to to Ensure That It Uses verify that staff use purchasing cards only for Funds Prudently allowable and necessary expenses, the State 2017‑030 (June 2017) Bar should immediately develop a policy that requires justification of the business needs for employees to receive purchasing cards, and use this policy to limit the number of staff issued a purchasing card. continued on next page . . . 64 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION 7. To assign purchasing cards only to 2 1st Quarter appropriate staff, ensure that the State Bar’s 2020 records of employees’ credit limits reflect those established with the bank, and to verify that staff use purchasing cards only for allowable and necessary expenses, the State Bar should immediately restrict the use of purchasing cards to its original purpose, which was for low‑dollar and frequently occurring purchases. For purchases above $5,000, the State Bar should require the vendor to bill for payment. 9. To ensure that its costs are reasonable and 2 †   appropriate, the State Bar should update its meal and catering policy to align with the meal policy of the State’s Executive Branch and should require individuals attending committee meetings for the State Bar to comply with standard meal per diem rates. NATURAL RESOURCES Department of Water Resources Department of 7. To ensure that DWR manages WaterFix in an 2 Late Water Resources: The effective manner, DWR should complete both 2022 Unexpected Complexity the economic analysis and financial analysis of the California WaterFix for WaterFix and make the analyses publicly Project Has Resulted in available as soon as possible. Significant Cost Increases 9. In order to prepare for the potential approval 2 December and Delays of WaterFix and to ensure that the project 2019 2016‑132 (October 2017) is managed properly during the design and construction phase, DWR should develop and update when necessary the associated program management plan for the design and construction phase of the project. California State Auditor Report 2019-041 65 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT ESTIMATED REPORT TITLE, NUMBER, RECOMMENDATION SUBSTANTIATE ITS ADDRESS ALL RECOMMENDATION DATE OF AND ISSUE DATE HAS APPEARED IN CLAIM OF FULL ASPECTS OF THE COMPLETION THIS REPORT IMPLEMENTATION RECOMMENDATION TRANSPORTATION Department of Motor Vehicles Department of Motor 7. To reduce the risk of fraudulent applications, 2 Will Not Vehicles: Administrative by September 2017 DMV should seek Implement and Statutory Changes interagency agreements with the health Will Improve Its Ability boards responsible for licensing providers to Detect and Deter authorized to certify disabilities on placard Misuse of Disabled applications. The agreements should include, Person Parking Placards but not be limited to, a review by medical 2016‑121 (April 2017) experts of a sample of placard applications each quarter to ensure that the disability certifications meet state requirements. For any application that does not meet state requirements, DMV should require that the applicant and his or her provider submit the information needed so that the application meets state requirements. DMV should cancel the placards of those who do not respond within 90 days. † Contrary to the State Auditor’s determination, the auditee believes it has fully implemented the recommendation. The table identifies whether the State Auditor’s assessment was based on the auditee not substantiating its claim of full implementation, the auditee not addressing all aspects of the recommendation, or both circumstances. ‡ Before publishing a report of an investigation, the State Auditor provides the head of each 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 agency, not the date the report was published. The investigative report for the case published in I2018‑1 was provided to California Correctional Health Care Services in February 2018. The investigative report for the cases published in I2015‑1 and I2017‑1 were provided to the California Department of Corrections and Rehabilitation in July 2015 and January 2017 respectively. The investigative reports for the cases published in I2016‑2 were provided to the involved agencies in June 2016. § In June 2018, the Office of Ratepayer Advocates became the Public Advocates Office. ll In July 2017, the State Board of Equalization was restructured and transferred duties to the California Department of Tax and Fee Administration. # In July 2014, the Judicial Council of California retired the use of Administrative Office of the Courts to refer to the Judicial Council’s staff. 66 California State Auditor Report 2019-041 January 2020 Blank page inserted for reproduction purposes only. California State Auditor Report 2019-041 67 January 2020 Table 3 Recommendations Made to Nonstate Entities That Are More Than One Year Old and Are Still Not Fully Implemented (Reports Issued From November 2013 Through October 2018) STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION NONSTATE ENTITIES Acton-Agua Dulce Unified School District Charter Schools: 11. To ensure that it has a method to hold charter 2 †   Some School schools accountable for their educational Q Districts Improperly programs, Acton‑Agua Dulce Unified should, Authorized and as a best practice, strengthen its authorization Inadequately Monitored process by using the State Education Board’s Out‑of‑District Charter criteria for evaluating petitions. Schools 12. To ensure compliance with state law, 2 †   2016‑141 (October 2017) Acton‑Agua Dulce Unified should immediately establish a procedure to periodically review and update its charter school policy to include all of the requirements in state law. 13. To ensure compliance with state law, 2 †   Acton‑Agua Dulce Unified should immediately review petitions to ensure they include all of the requirements in state law at the time of their approval. 15. To ensure compliance with state law, 2 †   Acton‑Agua Dulce Unified should immediately track its actual costs for providing oversight and verify that its oversight fees do not exceed legal limits. 18. To better ensure effective oversight of its 2 Will Not charter schools’ finances, Acton‑Agua Dulce Implement Unified should place a district representative as a nonvoting member on each charter school’s governing board. 20. To ensure that charter schools work toward 2 †  the academic goals established in their charters, Acton‑Agua Dulce Unified should adopt an academic oversight policy that includes steps for working with charter schools with poor performance results. 22. Acton‑Agua Dulce Unified should maintain 2 †  active memorandums of understanding with its charter schools that describe the district’s oversight responsibilities and ensure the schools meet the measurable student outcomes to which they have agreed. continued on next page . . . 68 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Alameda County Sheriff’s Office Correctional Officer 27. To ensure that it is able to identify high risk 1 †  Health and Safety: situations and deter repeat offenders, Santa DD Some State and County Rita should specifically track all gassing Correctional Facilities attacks and use the tracking data as a tool to Could Better Protect prevent future gassing attacks. Their Officers From the Health Risks of Certain Inmate Attacks 2018‑106 (September 2018) Antelope Valley Union High School District Charter Schools: 30. To better ensure effective oversight of its 2 Will Not Some School charter schools’ finances, Antelope Valley Implement Q Districts Improperly Union should place a district representative Authorized and as a nonvoting member on each charter Inadequately Monitored school’s governing board. Out‑of‑District Charter Schools 2016‑141 (October 2017) Bakersfield College Clery Act Requirements 14. To ensure that it does not underreport 1 †  and Crime Reporting: crime statistics in its annual security R Compliance Continues reports, Bakersfield should create and begin to Challenge California’s following written procedures by August 2018 Colleges and that clearly describe the Clery Act crime Universities identification processes it will follow. These 2017‑032 (May 2018) processes should include maintaining contemporaneous lists of Clery Act crimes that occur. 19. To ensure Bakersfield requests and reports 1 †  Clery Act crimes from local law enforcement, the institution should by August 2018 create and begin following a procedure, in conjunction with a written agreement with local law enforcement, to obtain crime statistics for the annual security report. 35. To ensure it properly informs students and 1 †  employees, Bakersfield should notify its students and employees and update the U.S. DOE about the corrected Clery Act statistics as soon as possible. 36. To ensure that its annual security report’s 1 †  crime statistics and the statistics it submits to the U.S. DOE align, Bakersfield should reconcile these statistics before publishing its reports or submitting the data to the U.S. DOE. California State Auditor Report 2019-041 69 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Central Basin Municipal Water District Central Basin Municipal 23. To ensure it is efficiently using its resources, 3 July Water District: Its the district should eliminate its board 2020 Board of Directors Has members’ automobile or transportation Failed to Provide the allowances and instead reimburse them Leadership Necessary based on their business mileage or for It to Effectively Fulfill transit use. Its Responsibilities 2015‑102 (December 2015) Central Unified School District Trade Apprenticeship 6. To limit its risk and to clarify its roles and 2 January Programs: The State responsibilities as they relate to ACTA, 2020 Needs to Better Central Unified should update its agreement Oversee Apprenticeship with ACTA to reflect each party’s current Programs, Such as the roles and responsibilities. Further, Central Air Conditioning Trade Unified should periodically update this Association’s Sheet agreement to ensure that the agreement Metal Program continues to reflect current roles and 2016‑110 responsibilities. (November 2016) Cerritos College California Community 11. To ensure that all instructors are aware of 1 †   Colleges: The Colleges the accessibility standards for instructional Y Reviewed Are Not materials, Cerritos should include in its Adequately Monitoring next collective bargaining negotiations a Services for Technology requirement for instructors to periodically Accessibility, and attend accessibility trainings. Districts and Colleges 13. To ensure that its technology master plan 1 January Should Formalize supports the strategic goals of the district, 2020 Procedures for Cerritos should update its master plan by June Upgrading Technology 2018, and should ensure that the plan includes 2017‑102 detailed steps to accomplish its goals. (December 2017) 14. To increase the transparency of its annual 1 †  review process, by June 2018, Cerritos should establish procedures requiring its departments to document attendees, input received, and agreements reached during meetings to consider instructional technology equipment requests. City of Irvine City of Irvine: Poor 2. To improve fiscal accountability and 3 Unknown Governance of the to ensure that audits are performed to $1.7 Million Review appropriate standards, Irvine should adopt of the Orange County an internal audit function by December 2017. Great Park Needlessly 6. To make certain that Irvine complies with 3 Unknown Compromised the the intent of competitive bidding for Review’s Credibility professional services, beginning immediately 2015‑116 (August 2016) it should not include provisions in its RFPs for potential future services that are above and beyond the desired scope of work. continued on next page . . . 70 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 9. To maintain appropriate, transparent fiscal 3 Unknown accountability, Irvine should amend city contracting and purchasing policies by December 2016 to make certain that all of its contracts and contract amendments with a proposed cost exceeding the threshold requiring city council or other approval receive the appropriate approvals, including approval for sole‑source contracts. Further, city policies should require appropriate approvals when increases in spending authority are accomplished through a purchase order or other means. 10. To provide the public with adequate 3 Unknown information regarding the city council’s spending decisions, Irvine’s city council should, by December 2016, include in its policies a requirement that motions by the council to appropriate revenue to fund a specific contract should name the recipients and proposed use of the funds. 11. To foster public confidence in its processes 3 Unknown and findings, Irvine should conduct self‑ initiated investigations, reviews, or audits in an open and transparent manner that ensures independence. Specifically, Irvine should not establish advisory bodies exempt from open meeting laws to oversee these investigations, reviews, or audits. Instead, any required reports from contractors conducting such investigations, reviews, or audits should go to the city council or a standing committee of the city council to be discussed in either open or closed session, as appropriate. City of Irwindale City of Irwindale: It 1. To address the structural deficit in its 2 †  Must Exercise More general fund, the city should seek long‑ Fiscal Responsibility term solutions to balance its budget so Over Its Spending So that its expenditures do not exceed its That It Can Continue to revenues. These solutions should include Provide Core Services to eliminating the reliance on one‑time gains Residents to fund ongoing expenses and identifying 2016‑111 opportunities to further reduce spending. (November 2016) The city should document its approach in a long‑term financial plan that should account for the following: a forecast of at least five to 10 years into the future, updates to long‑term planning activities as needed to provide direction to the budget process, and an analysis of its financial status; revenue and expenditure forecasts; and plan‑monitoring mechanisms, such as a scorecard of key indicators of financial health. California State Auditor Report 2019-041 71 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 2. To ensure that employee compensation 2 †  aligns with job statements, the city should review its salary incentives and modify the eligibility criteria so that they match the job requirements. 3. Considering that the city’s retirement 2 Partially benefits are more generous than those of Implemented most comparable cities, and in light of its financial situation, the city should reduce its employee benefits costs by negotiating with employee bargaining groups and key management employees for the elimination of further city contributions to the PARS supplemental benefit plan or at least and increase in participant contributions to cover the full employee share of the plan’s costs, recognizing that under California case law the city may not destroy vested pension rights legislatively. 4. To minimize the use of its reserves to reduce 2 Partially long‑term liabilities, the city should annually Implemented determine whether it has sufficient funding to cash out employee leave balances. Additionally, in future labor negotiations, the city should explore the possibility of eliminating or reducing voluntary leave balance cash‑outs by employees, and eliminate sick leave cash‑outs altogether. 6. To reduce costs, the city should consider 2 Will Not eliminating its current resident prescription Implement drug benefit program and replacing it with the prescription discount card program offered by the League of California Cities that would provide discounts on prescriptions to residents at no cost to the city. 7. If the city chooses not to participate in the 2 Will Not prescription discount card program offered Implement by the League of California Cities, it should at least take the following step related to its current prescription drug benefit program: Align its prescription drug benefit program with its established purpose —to treat conditions proven to be caused or worsened by the city’s mining activities—and limit the availability of benefits to only those medications approved for the treatment of such conditions. 8. If the city chooses not to participate in 2 Will Not the prescription discount card program Implement offered by the League of California Cities, it should at least reduce the cost of its current prescription drug benefit program by enacting limits‑‑similar to those in its resident vision benefits‑‑on the number or dollar amount of prescriptions an individual can receive each year. continued on next page . . . 72 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 9. To reduce the costs of its resident 2 Will Not prescription drug benefit program, the city Implement council should follow the recommendations of its consultant by approving the following: align copayments by increasing those paid by residents 50 years of age and older to the same level as those paid by residents who are 49 years or younger. 10. To reduce the costs of its resident 2 Will Not prescription drug benefit program, the city Implement council should follow the recommendations of its consultant by approving the following: implement coordination of benefits provisions, where applicable, to designate the city as a secondary payer to residents’ primary insurance coverage. 11. To eliminate the need for police officer 2 Will Not overtime, the city should evaluate the Implement possibility of contracting for police services with the Los Angeles County Sheriff’s Department or another law enforcement agency as an alternative to operating its own police department. 13. While the city is considering 2 Will Not recommendation #11, and if it should choose Implement not to contract for police services, it should promote public safety and equity among its police officers by implementing a rotational order for scheduled overtime to prevent some officers from working excessive shifts. 16. The Housing Authority should consider 2 Will Not options to provide low‑income housing Implement opportunities to more people. Additionally, if the Housing Authority intends to continue providing low‑income housing opportunities in the future, the city should examine the available funding mechanisms to continue providing low‑income housing before it exhausts its Housing Authority Fund balance. 17. To ensure that all residents have an equal 2 June chance to participate in the Housing 2025 Authority’s housing programs, the city should remove the long‑term residency priorities from any future housing programs. California State Auditor Report 2019-041 73 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION City of Novato Residential Building 2. To ensure that it is aware of the degree of 3 Will Not Records: The Cities of property owners’ compliance with its resale Implement O San Rafael, Novato, record ordinance, Novato should implement and Pasadena Need procedures that can help it monitor the sale to Strengthen the or exchange of properties that require resale Implementation of Their record inspections. The city should work with Resale Record Programs applicable stakeholders, such as realtors, to 2015‑134 (March 2016) aid in this effort. 5. To verify that new property owners are aware 3 Will Not of the health and safety concerns at their Implement properties and any corrections they need to make, Novato should develop a process to ensure that it receives homeowners’ cards. 34. To ensure that the resale record fees 3 Will Not it charges is appropriate, Novato Implement should establish a time frame to periodically determine whether the fees are commensurate with the cost of administering the resale record program. The city should ensure that it retains any documentation used to support its analyses and any subsequent adjustments to fees. City of Pasadena Residential Building 6. To verify that new property owners are 3 January Records: The Cities of aware of the health and safety concerns at 2020 O San Rafael, Novato, their properties and any corrections they and Pasadena Need need to make, Pasadena should develop to Strengthen the a process to ensure that staff sign the Implementation of Their inspection certificates and add them to the Resale Record Programs city’s database. 2015‑134 (March 2016) 9. To ensure that it can monitor the satisfaction 3 January individuals have with the resale record 2020 program and that it has a uniform approach for resolving complaints, Pasadena should develop a formal process for tracking the complaints it receives. In addition, Pasadena should develop a formal policy that describes how staff should evaluate complaints, and it should document its activities associated with resolving complaints, such as the resolution and the rationale for the resolution. The city should also establish a designated location in its database to record this information. continued on next page . . . 74 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 12. Pasadena should develop formal written 3 January procedures for staff to follow up on property 2020 owners’ correction of violations. These procedures should identify the method in which staff document in the database the violations identified during inspections and their actions to bring the property into compliance. In addition, the procedures should identify where within the database these documents should be kept as well as identify the protocol for ensuring that repeat violations are corrected in a timely manner. 16. To ensure that property owners correct 3 January violations in a timely manner, Pasadena 2020 should develop a work plan by July 2016 to identify and address its enforcement backlog by April 2017, so that the city is up to date with its enforcement actions, such as issuing notice letters and monitoring property owners’ actions to resolve violations. Pasadena’s work plan should also include updating the completion status of the violations so unresolved violations can be identified and monitored for subsequent correction. 19. To ensure that property owners correct 3 January violations in a timely manner, Pasadena 2020 should follow through with its enforcement policies, such as issuing notice letters. 22. To ensure that property owners correct 3 January violations in a timely manner, Pasadena 2020 should establish a written process for staff to monitor and ensure that property owners correct violations, including accurately identifying the properties that have not obtained necessary permits or have not had required reinspections performed. 40. If Pasadena subsequently requires its resale 3 Will Not record inspectors to have International Code Implement Council certifications, it should ensure that those staff maintain them in good standing to perform their necessary job functions. Coachella Valley Unified School District College Readiness of 3. To increase students’ access to and 2 Fall California’s High School completion rates of college preparatory 2020 Students: The State Can coursework, districts should develop Better Prepare Students and institute an on track/off track for College by Adopting student identification model similar to New Strategies and San Francisco’s model that will allow them to Increasing Oversight determine whether students are completing 2016‑114 grade‑level college preparatory coursework. (February 2017) The districts should notify parents when they identify students as falling off track and should advise the parents and students of available support and credit recovery options. Furthermore, school staff should be required to meet with and document the support they provide to these students. California State Auditor Report 2019-041 75 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Community Child Care Council of Santa Clara County Community Child Care 13. To ensure that beneficiaries do not have 1 Pending Council of Santa Clara restrictions limiting their ability to transfer Litigation AA County: Because It their retirement funds, 4Cs should, by Disadvantaged Some October 2018, move the funds for its primary Families and Misused and supplemental retirement plans out State Funds, It Could of the restrictive securities to the extent Benefit From Increased possible without incurring additional Monitoring by the charges for beneficiaries. For any subsequent California Department new participants, 4Cs should assign funds of Education only to securities that do not have extensive 2017‑116 (April 2018) charges associated with transferring or rolling over the funds. 14. To ensure that its retirement plan 1 †  participants can make appropriate financial planning decisions, 4Cs should provide the required disclosures in its retirement benefit statements, summary plan description, and annual report, and it should maintain documentation that it did so. County of Alameda Dually Involved 9. Alameda County probation department 3 Unknown Youth: The State should update its existing procedures N Cannot Determine the to ensure that its staff are accurately Effectiveness of Efforts recording family reunification service to Serve Youth Who components within the statewide case Are Involved in Both management system. the Child Welfare and 11. To identify their population of dually 3 Unknown Juvenile Justice Systems involved youth, Alameda County’s 2015‑115 CWS and probation agencies should (February 2016) designate the data system they will use for tracking the dates and results of joint assessment hearings. 17. To identify their population of dually 3 Unknown involved youth, Alameda County’s CWS and probation agencies should provide guidance or training to staff on recording joint assessment hearing information consistently within the designated system. County of Butte Indian Gaming Special 7. To ensure that grant recipients comply with 5 †  Distribution Fund: state law concerning interest earned on L Counties’ Benefit mitigation grant funds, by June 2014, the Committees Did Butte County benefit committee should Not Always Comply establish policies and procedures to verify With State Laws for that grant recipients have placed grant Distribution Fund awards in interest‑bearing accounts, and Grants that the interest is spent only on activities 2013‑036 (March 2014) that mitigate the effect of tribal gaming on local jurisdictions. continued on next page . . . 76 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION County of Fresno Indian Gaming Special 1. If the Legislature appropriates funding from 2 June Distribution Fund: the distribution fund for mitigation grants 2020 P The Method Used to in the future, to comply with state law, Mitigate Casino Impacts the benefit committee for Fresno County Has Changed, and should ensure that it obtains sufficient Two Counties’ Benefit documentation from grant applicants to Committees Did Not demonstrate that the requested funding Ensure Compliance represents the correct proportionate share of With State Law When the costs attributable to casino impacts. Awarding Grants 2. If the Legislature appropriates funding from 2 June 2016‑036 (March 2017) the distribution fund for mitigation grants 2019 in future years, Fresno County’s benefit committee should revise its procedures to include specific steps to verify that grantees will place grant funds into interest‑bearing accounts when awarding any mitigation grants. These steps should include requiring grantees to report the interest accrued in their quarterly reports and to substantiate those reports with bank statements or other reports of interest earned, and following up with the grantee when the grantee reports no earned interest for the period. County of Los Angeles County Pay Practices: 7. To ensure that they consistently demonstrate 3 Will Not Although the Counties that candidates are hired for permanent civil Implement We Visited Have Rules in service positions based on valid and job‑ Place to Ensure Fairness, related criteria, regardless of their sex, each Data Show That a Gender county should develop policies requiring Wage Gap Still Exists hiring managers to document the reasons 2015‑132 (May 2016) why they chose the selected candidate over others from the certified eligibility list. Los Angeles 1. To determine whether its trauma system 5 Will Not County: Lacking is appropriately designed and serving the Implement a Comprehensive needs of residents in underserved areas and Assessment of Its the needs of the most at‑risk populations, Trauma System, It the board should use Measure B funds to Cannot Demonstrate engage the College of Surgeons by July 2014 That It Has Used to perform a comprehensive assessment Measure B Funds to of the trauma system and then make the Address the Most results available to the public.To the extent Pressing Trauma Needs the assessment identifies weaknesses in the 2013‑116 (February 2014) 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. California State Auditor Report 2019-041 77 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 2. To determine whether its trauma system 5 Will Not is appropriately designed and serving the Implement 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. 3. To determine whether its trauma system 5 Will Not is appropriately designed and serving the Implement 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 system 5 Will Not is appropriately designed and serving the Implement 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. continued on next page . . . 78 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 5. To ensure that it allocates Measure B funds 5 Will Not to address the most significant needs Implement 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. Los Angeles County: 1. By April 2017, the county should reach 2 To Be Weak Oversight of agreement with the association on the date Determined Its Lease With the by which the association must pay the county Los Angeles County Fair for the rent in arrears related to the hotel. Association Has Likely 2. By April 2017, the county should reach 2 To Be Cost Millions of Dollars agreement with the association on how Determined in Revenue much rent the association owes the county 2016‑106 from the hotel’s operations since 1992. (November 2016) 3. As soon as possible, the county should collect 2 To Be from the association all amounts presently Determined owed under the lease as a result of the revenue generated by the conference center. 4. To ensure that it recognizes and addresses in 2 To Be a timely manner areas of potential concern Determined related to the association’s rent, the county should create and adhere to a policy of reviewing the association’s rent calculations at least every three years. 5. To protect its interests and maximize its 2 To Be future revenue, the county should strongly Determined consider ensuring that any potential amendment to the lease includes a revised rent calculation formula that factors in revenue from all of the association’s activities, including its hotel and conference center, as well as revenue from its subsidiaries’ activities at the Fairplex. This revised rent calculation formula should require the association either to pay the county an agreed‑upon fixed amount, adjusted periodically for inflation, or to pay the county both a fixed amount every year and a percentage of the total gross revenue that the association earns at the Fairplex. California State Auditor Report 2019-041 79 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 6. To protect its interests and maximize its 2 To Be future revenue, the county should strongly Determined consider ensuring that any potential amendment to the lease includes terms that define the circumstances or dates that require a renegotiation of the lease and the rent calculation formula. 7. To protect its interests and maximize its 2 To Be future revenue, the county should strongly Determined consider ensuring that any potential amendment to the lease includes an agreement on the types of entities whose gross revenues the association must include in rent calculations. This agreement should cover any new businesses the association creates that operate at the Fairplex. 8. To protect its interests and maximize its 2 To Be future revenue, the county should strongly Determined consider ensuring that any potential amendment to the lease includes terms that require the association to provide the county with any subleases it wishes to enter, even those subleases that do not exceed 10 years. The terms should also require the association to provide the county with approval over other agreements that could affect the rent calculation, including the association’s hotel management agreement and its amendments. 9. To protect its interests and maximize its 2 To Be future revenue, the county should strongly Determined consider ensuring that any potential amendment to the lease includes terms that require the association to provide the county with advance notice of any refinancing of the association’s debt and what impact, if any, such transactions would have on the amount or timing of rent payments to the county. County of San Diego Indian Gaming Special 10. If San Diego County’s benefit committee 5 †  Distribution Fund: believes that its processes for distributing L Counties’ Benefit grant funds are vital to its effective Committees Did management of distribution fund grants, it Not Always Comply should seek legislative authority to change With State Laws for its process. Otherwise, San Diego County’s Distribution Fund benefit committee should refrain from Grants placing limits on the time available for grant 2013‑036 (March 2014) recipients to spend the grant funds. continued on next page . . . 80 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Indian Gaming Special 4. If the Legislature appropriates funding from 2 †  Distribution Fund: the distribution fund for mitigation grants P The Method Used to in the future, to comply with state law, the Mitigate Casino Impacts benefit committee for San Diego County Has Changed, and should ensure that it obtains sufficient Two Counties’ Benefit documentation from grant applicants to Committees Did Not demonstrate that the requested funding Ensure Compliance represents the correct proportionate share of With State Law When the costs attributable to casino impacts. Awarding Grants 2016‑036 (March 2017) County of Santa Clara Dually Involved 16. To identify their population of dually 3 Will Not Youth: The State involved youth, Santa Clara County’s Implement N Cannot Determine the CWS and probation agencies should Effectiveness of Efforts designate the data system they will use to Serve Youth Who for tracking the dates and results of joint Are Involved in Both assessment hearings. the Child Welfare and 22. To identify their population of dually 3 Will Not Juvenile Justice Systems involved youth, Santa Clara County’s CWS Implement 2015‑115 (February 2016) and probation agencies should provide guidance or training to staff on recording joint assessment hearing information consistently within the designated system. East Side Union High School District Student Mental 17. To better understand the effectiveness of 3 August 2018 Health Services: Some the mental health services in its special U Students’ Services education program, East Side should use the Were Affected by a six performance indicators we identified to New State Law, and the perform analysis annually on the subset of State Needs to Analyze students receiving mental health services. Student Outcomes and Track Service Costs 2015‑112 (January 2016) Foothill-De Anza Community College District California Community 15. To ensure that it is fulfilling requests for 1 †  Colleges: The Colleges alternate media services from students with Y Reviewed Are Not disabilities in a timely manner, by June 2018, Adequately Monitoring De Anza should establish procedures for Services for Technology monitoring its timeliness in responding Accessibility, and Districts to such requests so that it can periodically and Colleges Should review its performance in completing the Formalize Procedures for requests. Specifically, it should record Upgrading Technology and track sufficient information to be able 2017‑102 to review how long it takes to complete (December 2017) requests. Additionally, De Anza should calculate the number of days it takes to complete requests, and periodically evaluate its performance against its time‑frame goals. Further, to evaluate its performance, De Anza should establish a time‑frame goal for completing alternate media requests. California State Auditor Report 2019-041 81 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 16. To ensure that it promptly addresses any 1 †  complaints it receives related to web accessibility and alternate media requests, De Anza should follow its new procedures for tracking and reviewing complaints related to accessibility. 17. To ensure that students with disabilities 1 †   have equal access to instructional materials, by June 2018, De Anza should develop procedures to monitor and periodically review the accessibility of instructional materials. For example, De Anza could develop an accessibility checklist for instructors to complete when developing or selecting instructional materials, from which the college could periodically review a sample of course content to ensure that instructors completed the checklist and that the instructional materials comply with accessibility standards. 18. To ensure that its website complies with 1 †   accessibility standards, by June 2018, De Anza should develop procedures to monitor website accessibility and incorporate steps to prevent instructors from publishing inaccessible content on the college’s website. These procedures should include a tracking mechanism to demonstrate how many accessibility errors the college identifies and how long it takes to fix those errors. 19. To ensure that all instructors are aware of 1 Will Not the accessibility standards for instructional Implement materials, De Anza should include in its next collective bargaining negotiations a requirement for instructors to periodically attend accessibility trainings. 21. To increase the transparency of its annual 1 †   review process, by June 2018, De Anza should establish procedures requiring its departments to document attendees, input received, and agreements reached during meetings to consider instructional technology equipment requests. Hesperia Water District Apple Valley Area Water 1. To assist low‑income water customers, 4 Will Not Rates: Differences in Hesperia should work with its governing Implement M Costs Affect Water body to consider the feasibility of using Utilities’ Rates, and One revenues from sources other than water rates Utility May Have Spent to implement a rate assistance program. Millions of Ratepayer Funds Inappropriately 2014‑132 (April 2015) continued on next page . . . 82 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Long Beach Unified School District Student Mental 4. To better communicate with parents and 3 †  Health Services: Some future IEP teams about reasons for any U Students’ Services changes to student services, including Were Affected by a changes to mental health services and New State Law, and the student placements, Long Beach should State Needs to Analyze develop a process to ensure that IEP Student Outcomes and teams record these reasons in student Track Service Costs IEP documents. 2015‑112 (January 2016) 10. To ensure that it complies with federal and 3 †  state requirements, Long Beach should develop a process to ensure that IEP teams record, in student IEP documents, the rationale for residential treatment and any potential harmful effects of such placement. 14. To better understand the effectiveness of 3 †   the mental health services in its special education program, Long Beach should use the six performance indicators we identified to perform analysis annually on the subset of students receiving mental health services. Los Angeles County Office of Education Montebello Unified 1. To ensure that Montebello takes the steps 1 To Be School District: County necessary to prevent state intervention and Determined T Superintendent regain its positive financial certification, Intervention Is the county superintendent should direct Necessary to Address Montebello to submit a corrective action plan Its Weak Financial to address the issues identified in this report Management and including balancing its budget, amending Governance and adhering to its hiring procedures, and 2017‑104 establishing adequate safeguards to ensure (November 2017) that policies related to bond proceeds, conflicts of interest, and the approval of expenditures are implemented and followed. 2. To ensure that Montebello takes the steps 1 To Be necessary to prevent state intervention and Determined regain its positive financial certification, the county superintendent should assist Montebello in developing a plan to justify its workforce size and cost in terms of its current and projected enrollment, including evaluating the necessity of current staff levels and personnel costs. 3. To ensure that Montebello takes the steps 1 To Be necessary to prevent state intervention and Determined regain its positive financial certification, the county superintendent should evaluate the necessity of executive positions and adjust executives’ salaries based on an analysis of the number and cost of executives in comparable districts. 4. To ensure that Montebello takes the steps 1 To Be necessary to prevent state intervention and Determined regain its positive financial certification, the county superintendent should ensure that Montebello implements all of the recommendations detailed in the report. California State Auditor Report 2019-041 83 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Los Angeles County Sheriff’s Department Concealed Carry 1. To ensure that its CCW licensing decisions 1 Unknown Weapon Licenses: align with its CCW policy, Los Angeles S Sheriffs Have should only issue licenses to applicants Implemented Their Local after collecting documentation of specific, Programs Inconsistently personal threats against the applicants so and Sometimes as to satisfy its definition of good cause. If Inadequately Los Angeles believes that its public licensing 2017‑101 policy does not include all acceptable good (December 2017) causes for a CCW license, then by March 2018 it should revise that policy and publish the new policy on its website. It should then immediately begin processing applications according to that revised policy. 2. To ensure that it only issues licenses to 1 Unknown individuals after receiving evidence of residency, firearms training, and good moral character that aligns with its policy, Los Angeles should only issue licenses after verifying that it has received this evidence. To avoid overlooking required evidence, Los Angeles should create procedures by March 2018 for its staff to follow to ensure that each CCW file contains the evidence its policy requires before issuing the license. 10. To ensure that it is only charging fees 1 Unknown that state law allows, Los Angeles should immediately cease charging applicants fees in addition to its license processing fee. Los Angeles should reimburse applicants who paid the unallowable fees. Further, if Los Angeles believes its license fee does not recover its entire cost of processing an initial application, it should complete a cost study and, if appropriate, revise its fee according to the results of that study and the maximum allowed fees under state law. Los Angeles Department of Water and Power Los Angeles 1. To ensure that the Los Angeles Board of 4 Unknown Department of Water and Power Commissioners (board) Water and Power ‑ can more effectively exercise oversight for Consequences Linked the department’s significant information to Its Premature technology projects, the board should Launch of Its Customer establish a standing committee comprised Information System May of board members to oversee and critically Push Total Costs Beyond evaluate the status of the department’s $200 Million various information technology projects. 2014‑105 (March 2015) Given the limited tenure of board members and the potential for multiyear and high‑cost information technology projects, the board president should consider appointing as many committee members as practicable in order to promote continuity of oversight. continued on next page . . . 84 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 2. To ensure that the board can more effectively 4 Unknown exercise oversight for the department’s significant information technology projects, the board should develop reporting standards for the department’s management to follow when discussing the status of information technology projects with the standing committee or the board. Such reporting standards should, at a minimum, specify the frequency with which the department’s management makes such reports and require the following disclosures about each information technology project: • The amount of project growth, in terms of both budget and scope of work, from initial project estimates through current projections. • The results from system testing and a listing of the critical defects that exist and must be fixed prior to system use. • The concerns the quality assurance contractor has raised and how the department is addressing them. 3. To ensure that the board can more effectively 4 Unknown exercise oversight for the department’s significant information technology projects, the board should develop a process for the board to designate certain information technology projects as having a potentially significant effect on business operations or customer relations, and require that department managers first obtain the board’s approval before launching such critical new systems. Los Angeles Homeless Services Authority Homelessness in 12. To expand the number of service providers 1 September California: State through targeted technical assistance, the 2020 Government and the Authority should evaluate the effectiveness Los Angeles Homeless of the selected system within 12 months Services Authority after implementation. Need to Strengthen Their Efforts to Address Homelessness 2017‑112 (April 2018) Los Angeles Police Department Hate Crimes in 8. To ensure that they accurately identify and 1 January California: Law report hate crimes, SFSU Police and LA Police 2020 CC Enforcement Has Not should update their hate crime policies Adequately Identified, and procedures, and the Orange County Reported, or Responded Sheriff and Stanislaus County Sheriff should to Hate Crimes implement supplemental hate crime reports 2017‑131 (May 2018) and require officers to use them. 13. To ensure accurate and complete reporting, 1 January LA Police and SFSU Police should provide 2020 sufficient guidance and oversight to their officers and staff so that they report all hate crimes to DOJ. California State Auditor Report 2019-041 85 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION The CalGang Criminal 23. Until the Los Angeles Police Department 3 †   Intelligence System: As receives further direction from the board, the V the Result of Its Weak committee, or Justice, it should address the Oversight Structure, It specific deficiencies we found by reviewing Contains Questionable the gangs it has entered into CalGang to Information That May ensure the gangs meet reasonable suspicion Violate Individuals’ requirements. It should also begin reviewing Privacy Rights the gang members it has entered into 2015‑130 (August 2016) CalGang to ensure the existence of proper support for each criterion. It should purge from CalGang any records for gangs or gang members that do not meet the criteria for entry. Individuals who are independent from the ongoing administration and use of CalGang should lead this review. The agency should complete the gang and gang member reviews in phases, with the final phase for gangs to be completed by June 30, 2018, and the final phase for gang members to be completed by June 30, 2019. Los Angeles Regional Adult Education Consortium Montebello Unified 31. To ensure that state adult education 1 June School District: County funds are used in the most efficient and 2020 T Superintendent effective manner, the consortium should, Intervention Is within one year, complete an assessment Necessary to Address of Montebello’s ability to meet the Its Weak Financial requirements of its adult education plan to Management and determine whether its use of state funds Governance has been effective. If Montebello is found to 2017‑104 be consistently ineffective, the consortium (November 2017) should immediately recalculate the adult program’s fund allocation for the future. 32. To ensure that state adult education funds 1 December are used in the most efficient and effective 2019 manner, the consortium should, within one year, develop policies and procedures to ensure the proper collection and reporting of enrollment, attendance, and expenditure data by consortium members. Periodically review enrollment, attendance, and expenditure data to ensure their accuracy. Los Angeles Regional Water Quality Control Board State and Regional 18. Los Angeles should correct its pollutant 1 April Water Boards: They control plan where it miscalculated two 2020 BB Must Do More to Ensure pollutant limits. That Local Jurisdictions’ Costs to Reduce Storm Water Pollution Are Necessary and Appropriate 2017‑118 (March 2018) continued on next page . . . 86 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Los Rios Community College District California Community 24. To ensure that students with disabilities have 1 †  Colleges: The Colleges equal access to instructional materials, by Y Reviewed Are Not June 2018, American River should develop Adequately Monitoring procedures to monitor and periodically Services for Technology review the accessibility of instructional Accessibility, and materials. For example, American River Districts and Colleges could develop an accessibility checklist for Should Formalize instructors to complete when developing Procedures for or selecting instructional materials, from Upgrading Technology which the college could periodically review 2017‑102 a sample of course content to ensure that (December 2017) instructors completed the checklist and that the instructional materials comply with accessibility standards. 25. To ensure that its website complies with 1 December accessibility standards, by June 2018, 2019 American River should develop procedures to monitor website accessibility and incorporate steps to prevent instructors from publishing inaccessible content on the college’s website. These procedures should include a tracking mechanism to demonstrate how many accessibility errors the college identifies and how long it takes to fix those errors. 26. To ensure that all instructors are aware of 1 Unknown the accessibility standards for instructional materials, American River should include in its next collective bargaining negotiations a requirement for instructors to periodically attend accessibility trainings. 28. To ensure that it fully implements its 1 December technology master plan, by June 2018, 2019 American River should establish an implementation plan with detailed steps for achieving the goals in its technology master plan that it has not yet accomplished. Further, it should develop an implementation plan in conjunction with the development of its future technology master plan. 29. To increase the transparency of its annual 1 †  review processes, by June 2018, American River should establish procedures requiring its departments to document attendees, input received, and agreements reached during meetings to consider instructional technology equipment requests. Metropolitan Transportation Commission Toll Bridge Seismic 5. To ensure that future projects have 1 December Retrofit Program: adequate risk management, MTC should 2019 The State Could formalize a scalable risk management Save Millions of policy by June 2019 so that the projects it Dollars Annually by directs benefit from sufficient and ongoing Implementing Lessons risk management. Learned 2018‑104 (August 2018) California State Auditor Report 2019-041 87 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Montebello Unified School District Montebello Unified 5. To improve its current financial condition and 1 †  School District: County ensure future viability, Montebello should, T Superintendent within 60 days, revise its fiscal stabilization Intervention Is plan and make the necessary cuts to fund its Necessary to Address ongoing commitments. Its Weak Financial 6. To improve its current financial condition 1 †  Management and and ensure future viability, Montebello Governance should create a robust budgeting process 2017‑104 within 90 days using best practices of the (November 2017) Government Finance Officers Association to ensure Montebello’s ability to meet its priorities while maintaining the required level of reserves that buffers the district from drastic cuts in times of economic instability. 7. To improve its current financial condition and 1 †   ensure future viability, Montebello should, within 90 days, implement an effective budget monitoring process with regular budget‑to‑actual comparisons. This process should include safeguards against spending in excess of budgeted expenditures and require advance board approval of such spending before it occurs. For example, Montebello should require that the budget manager perform monthly reviews of budget‑to‑actual figures and provide detailed explanations to the board for any variances. 8. To ensure that Montebello hires the most 1 †   qualified executive and management staff, Montebello should immediately adhere to its policies for hiring classified employees, including screening candidates to ensure that they meet the minimum qualifications. Montebello should also hold provisional employees to the same standards for minimum qualifications as its policy requires. 9. To ensure that Montebello hires qualified 1 †   classified employees, the personnel commission should, within 90 days, revise its policies to require the classified director to provide it with the education and work experience of any candidates on eligibility lists for high‑ranking positions. It should also require the director of the personnel commission—the classified director—to provide it with a list of all provisional appointments, including information on how those employees meet the minimum qualifications. 10. To ensure that it does not violate state law, 1 †  Montebello should immediately adhere to its policies and ensure that provisional employees do not work more than the legal maximum number of days of service. continued on next page . . . 88 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 12. In order to rebuild trust with its community, 1 †  Montebello should adhere to its policies for hiring certificated personnel and fill any vacant positions for executives through a competitive hiring process, including advertising the positions, screening to ensure that minimum qualifications are met, and interviewing to ensure that it hires and retains the most qualified and talented leaders. 13. To ensure that Montebello creates employee 1 †   positions only when necessary, it should establish a policy within 30 days that requires a justification for why the district is creating a position. Additionally, in order to maintain transparency when creating new positions, Montebello should immediately begin to document its justifications. 14. To ensure that Montebello hires qualified 1 †   certificated and classified employees, within 90 days the board should revise its policies to require the superintendent or his or her designee to provide information to the board about recruitments for high‑ranking employees. The board should consider, at a minimum, the following information when approving appointments: • The number of initial applicants. • The number of candidates who passed the screening and interviewing steps. • The education and work experience of the final candidate recommended by the superintendent or designee. 15. To ensure that Montebello is making hiring 1 †  decisions free of bias or favoritism, within 90 days it should strengthen its hiring policies related to nepotism and conflicts of interest for classified and certificated personnel to include the following: establishing restrictions on immediate family members being involved in the screening and interviewing processes and definitions of what types of personal relationships fall under the nepotism policy, which work relationships the nepotism policy applies to, and what factors to consider when evaluating the potential impact of a personal relationship. 19. To ensure that bond funds are spent 1 †  appropriately, the district should immediately ensure that its contracted auditor delivers a timely bond audit and that Montebello addresses the auditor’s concerns and recommendations. California State Auditor Report 2019-041 89 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 23. To ensure that Montebello spends its funds 1 †  for allowable and reasonable purposes, it should require employees whose salaries are funded by voter‑approved bond proceeds to fill out detailed timesheets to demonstrate that they work on bond‑related activities. Bond proceeds should only be used to pay the portion of the salary relating to bond‑funded activities that is supported by the timesheet. 24. To ensure that Montebello spends its funds for 1 †   allowable and reasonable purposes, it should implement an inventory tracking system that allows it to know where its equipment is located. Montebello should also periodically review its inventory listing to ensure that equipment is being properly used. 26. To ensure that Montebello spends its funds 1 †  for allowable and reasonable purposes, it should require all employees to obtain approval for overtime before performing any overtime work and to submit an explanation of tasks they completed during their overtime work when they submit their overtime timesheet for payment. 29. To ensure that state adult education 1 †  expenditures are reasonable and justified, the board should, within one year, require the adult program to annually report to the consortium and to the board on the accurate number of students in each class, number of hours taught, and cost of the class per student. New Jerusalem Elementary School District Charter Schools: 44. To better ensure effective oversight of its 2 Will Not Some School charter schools’ finances, New Jerusalem Implement Q Districts Improperly should place a district representative as a Authorized and nonvoting member on each charter school’s Inadequately Monitored governing board. Out‑of‑District Charter Schools 2016‑141 (October 2017) Peralta Community College District Clery Act Requirements 32. To ensure that its campuses provide the 1 May and Crime Reporting: necessary resources and information to 2019 R Compliance Continues students about campus safety, Peralta to Challenge California’s should by December 2018, develop all Colleges and required policies related to campus safety in Universities compliance with the Education Code. 2017‑032 (May 2018) continued on next page . . . 90 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Quartz Hill Water District Antelope Valley 13. To assist low‑income water customers, 5 Unknown Water Rates: Various Quartz Hill Water District should work with Factors Contribute to its governing body to consider the feasibility Differences Among of using revenues from sources other than Water Utilities water rates to implement rate assistance 2013‑126 (July 2014) programs for low‑income water customers. Sacramento County Sheriff’s Department Concealed Carry 3. To ensure that staff are gathering consistent 1 Unknown Weapon Licenses: evidence from applicants to demonstrate S Sheriffs Have residency, good moral character, and firearms Implemented Their training and are including which requirement Local Programs applicants did not meet in its denial letters, by Inconsistently March 2018 Sacramento should create formal and Sometimes CCW processing procedures and train its staff Inadequately to follow these procedures. These procedures 2017‑101 should require staff to gather and evaluate (December 2017) the information the department believes is required to demonstrate that each of the criteria for a CCW license has been met, and they should also require staff to include which requirement applicants did not meet in its denial letters. 4. To ensure that staff are following its newly 1 Unknown established procedures and to identify any need for additional guidance, by March 2018 Sacramento should establish a review process wherein it regularly reviews a selection of license files and denied applications to determine whether its staff are collecting sufficient and consistent documentation in accordance with its policies and are appropriately including which requirement applicants did not meet in its denial letters. 7. To ensure that it provides all required 1 Unknown information to Justice, Sacramento should immediately inform Justice when it revokes a CCW license, including when it receives a prohibition notice from Justice. 11. To ensure that it is maximizing allowable 1 Unknown revenue from the CCW program and reducing its program deficits, Sacramento should perform a cost study of its initial application processing and, on completion of the study, immediately increase its CCW license fees and begin charging the maximum amounts allowable under state law. California State Auditor Report 2019-041 91 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION San Diego County Health and Human Services Agency San Diego County’s 1. To better ensure and demonstrate that it 1 January Health and Human efficiently meets public health needs of 2020 Services Agency: It at‑risk county residents, and that it employs Cannot Demonstrate the appropriate number of PHNs in the right That It Employs the locations to address those needs, the Health Appropriate Number Agency should measure and assess PHN of Public Health Nurses efficiency. Specifically, the Health Agency to Efficiently Serve Its should direct the chief nursing officer to Residents begin developing and implementing PHN 2017‑124 (July 2018) efficiency measures by January 1, 2019. These measures could address such factors as caseload, case complexity, and overtime. San Diego County Sheriff’s Department Concealed Carry 5. To ensure that its staff appropriately renew 1 Unknown Weapon Licenses: CCW licenses, by March 2018 San Diego S Sheriffs Have should establish a routine supervisory review Implemented Their of a selection of renewed licenses. Local Programs 6. To ensure that it consistently obtains 1 Unknown Inconsistently sufficient evidence to demonstrate that and Sometimes an applicant satisfies its requirements for Inadequately a license, by March 2018 San Diego should 2017‑101 develop guidance and train its staff on (December 2017) what good cause documentation staff should request from applicants. Further, it should train its staff regarding the expected documents for residency and training. 8. To ensure that it follows state law’s 1 Unknown requirements for revoking licenses, San Diego should immediately revoke CCW licenses and should then inform Justice that it has revoked licenses whenever license holders become prohibited persons. Additionally, San Diego should notify Justice when it suspends a license or a license is surrendered. 12. To ensure that it maximizes allowable 1 Unknown revenue from its CCW program, San Diego should immediately pursue increasing its initial, renewal, and amendment fees to the maximum amounts allowable under state law. continued on next page . . . 92 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION San Francisco Unified School District California Department 10. To help ensure that they consistently 2 †  of Education: It Has Not comply with the Buy American requirement, X Ensured That School San Francisco should establish written Food Authorities policies and procedures related to the Buy Comply With the American requirement by October 1, 2017. At Federal Buy American a minimum, those policies and procedures Requirement should include the following: 2016‑139 (July 2017) • An explanation of how it will ensure that it consistently includes language related to the Buy American requirement in its bid solicitation documents and contracts. • A minimum expectation for how regularly it will verify that food items its vendors provide are domestic commodities or products. • A requirement that its staff identify the need to purchase foreign‑sourced items as early as possible in the food purchasing process and that they begin documenting the justification for such exceptions to the Buy American requirement at that time. • Guidance for how it will maintain documentation showing that its purchases of foreign‑sourced food items meet one of the two allowable exceptions. San Juan Unified School District School Library Services: 7. To strengthen its library programs and help 2 Unknown Vague State Laws and the State assess the condition of school W a Lack of Monitoring libraries statewide, San Juan Unified should Allow School Districts to ensure that teacher librarians are involved Provide a Minimal Level in the selection of library materials at of Library Services each school. 2016‑112 9. To strengthen its library programs and help 2 Unknown (November 2016) the State assess the condition of school libraries statewide, San Juan Unified should use the model standards to assess the needs of its school library programs and address any identified needs during its LCAP process. California State Auditor Report 2019-041 93 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Santa Clara County Registrar of Voters Santa Clara County 6. To ensure accuracy and consistency in 2 †  Registrar of Voters: the creation, review, and distribution of Z Insufficient Policies election‑related materials, Santa Clara and Procedures Have should review and document in detail all Led to Errors That policies and procedures by October 2018, May Have Reduced prioritizing its documentation for the Voters’ Confidence in divisions that are responsible for the most the Registrar’s Office frequent and egregious election‑related 2017‑107 (October 2017) errors. Specifically, Santa Clara should review and formalize Mapping policies and procedures by January 2018, to allow time for implementation before the June primary election process. By October 2018, Santa Clara should review and formalize policies and procedures for the remaining divisions— including Ballot Layout, Candidate Services, and Vote by Mail—to provide adequate time for implementation before the November general election process. 7. To reduce the risk of staff errors, 2 †  inconsistencies in procedures, and the loss of institutional knowledge in the creation, review, and distribution of election‑related materials, Santa Clara should develop and implement training for its staff that includes instructions on its comprehensive policies and procedures. The development of this training should take place concurrently with Santa Clara’s detailed documentation of its policies and procedures, and Santa Clara should require relevant staff to attend this training before each major election. Stanislaus County Sheriff’s Department Hate Crimes in 11. To ensure that they accurately identify and 1 Unknown California: Law report hate crimes, SFSU Police and LA Police CC Enforcement Has Not should update their hate crime policies Adequately Identified, and procedures, and the Orange County Reported, or Responded Sheriff and Stanislaus County Sheriff should to Hate Crimes implement supplemental hate crime reports 2017‑131 (May 2018) and require officers to use them. continued on next page . . . 94 California State Auditor Report 2019-041 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION Stockton Unified School District California Department 11. To help ensure that they consistently 2 May of Education: It Has Not comply with the Buy American requirement, 2018 X Ensured That School Stockton should establish written policies Food Authorities and procedures related to the Buy American Comply With the requirement by October 1, 2017. At a Federal Buy American minimum, those policies and procedures Requirement should include the following: 2016‑139 (July 2017) • An explanation of how it will ensure that it consistently includes language related to the Buy American requirement in its bid solicitation documents and contracts. • A minimum expectation for how regularly it will verify that food items its vendors provide are domestic commodities or products. • A requirement that its staff identify the need to purchase foreign‑sourced items as early as possible in the food purchasing process and that they begin documenting the justification for such exceptions to the Buy American requirement at that time. • Guidance for how it will maintain documentation showing that its purchases of foreign‑sourced food items meet one of the two allowable exceptions. Superior Court of California, County of San Mateo Judicial Branch 13. To ensure that it properly authorizes 2 Will Not Procurement: The payments and purchases only allowable Implement Five Superior Courts items, the San Mateo court should We Reviewed Mostly process payments in accordance with the Adhered to Required requirements and recommended practices and Recommended of the Judicial Council and the State. Practices, but Some Specifically, the San Mateo court should Improvements Are amend its bottled water service contract to Needed ensure that water is purchased for use by 2016‑301 jurors and court room staff only. (November 2016) University of Redlands Tulare Local Healthcare 1. To ensure that the district can demonstrate 1 †  District: Past Poor that its decisions for selecting contractors Decisions Contributed are justified and are in the best interest of to the Closure of the the district’s residents, by April 2019 the Medical Center, and district should establish formal procedures Licensing Issues May designed to ensure that it follows a rigorous Delay Its Reopening and appropriate evaluation and contract 2018‑102 (October 2018) awarding process. 2. To ensure that the district pays only 1 †   reasonable and appropriate contract administrative costs, before the district signs any future management contract, it should prepare estimates of the costs for all proposed contract terms related to compensation. California State Auditor Report 2019-041 95 January 2020 STATE AUDITOR’S ASSESSMENT NUMBER OF YEARS AUDITEE DID NOT AUDITEE DID NOT REPORT TITLE, NUMBER, RECOMMENDATION ESTIMATED DATE SUBSTANTIATE ADDRESS ALL RECOMMENDATION AND ISSUE DATE HAS APPEARED IN OF COMPLETION ITS CLAIM OF FULL ASPECTS OF THE THIS REPORT IMPLEMENTATION RECOMMENDATION 6. To ensure that the district budgets for 1 December all costs necessary to reopen, it should 2019 immediately include in its budget the costs to pay pre‑petition debt for vendors with whom it must reestablish relationships before it can resume operations. 8. To ensure that it uses bond proceeds 1 †  for allowable purposes and improves its consistency and accountability in processing payments from bond proceeds, by April 2019 the district should formalize and document policies and procedures for verifying that it uses bond proceeds for allowable purposes and for approving expenditures paid from general obligation bond proceeds. Victorville Water District Apple Valley Area Water 2. To assist low‑income water customers, 4 Unknown Rates: Differences in Victorville should work with its governing M Costs Affect Water body to consider the feasibility of using Utilities’ Rates, and One revenues from sources other than water rates Utility May Have Spent to implement a rate assistance program. Millions of Ratepayer 6. To demonstrate to water customers how 4 Unknown Funds Inappropriately they are working to keep rates reasonable, 2014‑132 (April 2015) the four water utilities should document their cost‑saving efforts and quantify, to the extent possible, any specific cost savings achieved from their respective efforts. 7. To ensure that it does not use revenues from 4 Unknown ratepayers for inappropriate purposes, by October 2015, Victorville should revise its policies to prohibit transfers or loans of water fee revenue for nonwater district purposes. Victorville should also revise its investment policy that specifies the circumstances under which it can invest water revenues—setting prudent limits on its investment in assets that the Victorville city council manages. 8. To address the excess interest expense 4 Unknown resulting from loans to the city of Victorville and the building of the wastewater plant, Victorville should seek reimbursement from the city for its unrecovered costs. Victorville should work with the city to prepare and submit to the water district board and the Victorville city council by October 2015 a formal repayment plan including specific dates and payments to be made to ensure that the water district and its ratepayers are made whole. When the water district board approves such a plan, it should take steps to ensure compliance with the repayment plan. † Contrary to the State Auditor’s determination, the auditee believes it has fully implemented the recommendation. The table identifies whether the State Auditor’s assessment was based on the auditee not substantiating its claim of full implementation, the auditee not addressing all aspects of the recommendation, or both circumstances.