Vallejo City

CITY OF VALLEJO Audit Report CRIME STATISTICS REPORTS FOR THE DEPARTMENT OF JUSTICE PROGRAM Chapter 1172, Statutes of 1989; Chapter 1338, Statutes of 1992; Chapter 1230, Statutes of 1993; Chapter 933, Statutes of 1998; Chapter 571, Statutes of 1999; Chapter 626, Statutes of 2000; and Chapter 700, Statutes of 2004 July 1, 2001, through June 30, 2012 M M. C ALIA OHEN California State Controller January 2024 MALIA M. COHEN CALIFORNIA STATE CONTROLLER January 24, 2024 CERTIFIED MAIL—RETURN RECEIPT REQUESTED Rekha Nayar, CPA, Director Vallejo Finance Department 555 Santa Clara Street Vallejo, CA 94590 Dear Ms. Nayar: The State Controller’s Office audited the costs claimed by the City of Vallejo for the legislatively mandated Crime Statistics Reports for the Department of Justice Program for the period of July 1, 2001, through June 30, 2012. The city claimed $854,460 for costs of the mandated program. Our audit found that $365,051 is allowable; and $489,409 is unallowable because the city overstated salary and benefit costs, and related indirect costs. The State made no payments to the city. The State will pay $365,051, contingent upon available appropriations. Following issuance of this audit report, the Local Government Programs and Services Division of the State Controller’s Office will notify the city of the adjustment to its claims via a system- generated letter for each fiscal year in the audit period. If you have any questions, please contact Lisa Kurokawa, Chief, Compliance Audits Bureau, by telephone at (916) 327-3138. Sincerely, Original signed by KIMBERLY TARVIN, CPA Chief, Division of Audits KT/ac Attachment MAILING ADDRESS P.O. Box 942850, Sacramento, CA 94250 SACRAMENTO 3301 C Street, Suite 700, Sacramento, CA 95816 | 916.324.8907 LOS ANGELES 901 Corporate Center Drive, Suite 200, Monterey Park, CA 91754 | 323.981.6802 Ms. Rekha Nayar January 24, 2024 Page 2 of 2 cc: The Honorable Robert McConnell, Mayor City of Vallejo Mike Malone, City Manager City of Vallejo Jason Ta, Interim Chief Vallejo Police Department Chris Hill, Principal Program Budget Analyst Local Government Unit California Department of Finance Kaily Yap, Finance Budget Analyst Local Government Unit California Department of Finance Darryl Mar, Manager Local Reimbursements Section State Controller’s Office Everett Luc, Supervisor Local Reimbursements Section State Controller’s Office MAILING ADDRESS P.O. Box 942850, Sacramento, CA 94250 SACRAMENTO 3301 C Street, Suite 700, Sacramento, CA 95816 | 916.324.8907 LOS ANGELES 901 Corporate Center Drive, Suite 200, Monterey Park, CA 91754 | 323.981.6802 City of Vallejo Crime Statistics Reports for the Department of Justice Program Contents Audit Report Summary ............................................................................................................................ 1 Background ........................................................................................................................ 1 Audit Authority .................................................................................................................. 2 Objective, Scope, and Methodology ................................................................................. 2 Conclusion .......................................................................................................................... 4 Follow-up on Prior Audit Findings .................................................................................. 4 Views of Responsible Officials .......................................................................................... 4 Restricted Use .................................................................................................................... 4 Schedule—Summary of Program Costs .............................................................................. 5 Finding and Recommendation .............................................................................................. 10 Attachment—City’s Response to Draft Audit Report City of Vallejo Crime Statistics Reports for the Department of Justice Program Audit Report Summary The State Controller’s Office (SCO) audited the costs claimed by the City of Vallejo for the legislatively mandated Crime Statistics Reports for the Department of Justice Program for the period of July 1, 2001, through June 30, 2012. The city claimed $854,460 for costs of the mandated program. Our audit found that $365,051 is allowable; and $489,409 is unallowable because the city overstated salary and benefit costs, and related indirect costs. The State made no payments to the city. The State will pay $365,051, contingent upon available appropriations. Background Penal Code (PC) sections 12025(h)(1) and (h)(3), 12031(m)(1), and (m)(3), 13014, 13023, and 13730(a) require local agencies to report information related to certain specified criminal acts to the California Department of Justice (DOJ). These sections were added and/or amended by Chapter 1172, Statutes of 1989; Chapter 1338, Statutes of 1992; Chapter 1230, Statutes of 1993; Chapter 933, Statutes of 1998; Chapter 571, Statutes of 1999; Chapter 626, Statutes of 2000; and Chapter 700, Statutes of 2004. On June 26, 2008, the Commission on State Mandates (Commission) adopted a statement of decision for the Crime Statistics Reports for the Department of Justice Program. The Commission found that the test claim legislation constituted a new program or higher level of service and imposes a reimbursable state-mandated program, within the meaning of Article XII B, section 6 of the California Constitution and Government Code (GC) section 17514, on city and county claimants beginning on July 1, 2001. On July 31, 2009, the Commission heard an amended test claim on PC section 13023 (added by Chapter 700, Statutes of 2004), which imposed additional crime reporting requirements. The Commission found that this test claim legislation also constituted a new program or higher level of service, and imposes a reimbursable state-mandated program for city and county claimants beginning on January 1, 2004. On April 10, 2010, the Commission issued a corrected statement of decision to correctly identify the operative and effective date of the reimbursable state-mandated program as January 1, 2005. The Commission found that the following activities are reimbursable (Section I., “Summary of the Mandate”): • [For] a local government entity responsible for the investigation and prosecution of a homicide case to provide the [DOJ] with demographic information about the victim and the person or persons charged with the crime, including the victim’s and person’s age, gender, race, and ethnic background [PC section 13014]. • [For] local law enforcement agencies to report, in a manner to be prescribed by the Attorney General, any information that may be required relative to any criminal acts or attempted criminal acts to -1- City of Vallejo Crime Statistics Reports for the Department of Justice Program cause physical injury, emotional suffering, or property damage where there is a reasonable cause to believe that the crime was motivated, in whole or in part, by the victim’s race, ethnicity, religion, sexual orientation, . . . physical or mental disability, . . . gender, or national origin [PC section 13023]. • For district attorneys to report annually on or before June 30, to the Attorney General, on profiles by race, age, gender, and ethnicity any person charged with a felony or misdemeanor under section 12025 (carrying a concealed firearm) or section 12031 (carrying a loaded firearm in a public place), of the Penal Code, and any other offense charged in the same complaint, indictment, or information. The Commission finds that this is a reimbursable mandate from July 1, 2001. . . . until January 1, 2005 [PC sections 12025(h)(I) and (h)(3), and 12031(m)(I) and (m)(3)]. • For local law enforcement agencies to support all domestic-violence related calls for assistance with a written incident report [PC section 13730(a), Chapter 1230, Statutes of 1993]. . . . • [For] local law enforcement agencies to report the following in a manner to be prescribed by the Attorney General: o Any information that may be required relative to hate crime, as defined in [PC] section 422.55 as criminal acts committed, in whole or in part, because of one or more of the following perceived characteristics of the victim: (1) disability, (2) gender, (3) nationality, (4) race or ethnicity, (5) religion, (6) sexual orientation. o Any information that may be required relative to hate crimes, defined in [PC] section 422.55 as criminal acts committed, in whole or in part, because of association with a person or group with one or more of the following actual or perceived characteristics: (1) disability, (2) gender, (3) nationality, (4) race or ethnicity, (5) religion, (6) sexual orientation. The program’s parameters and guidelines establish the state mandate and define the reimbursement criteria. The Commission adopted the parameters and guidelines on September 30, 2010, and amended them on January 24, 2014, to clarify reimbursable costs related to domestic violence related calls for assistance. In compliance with GC section 17558, the SCO issues the Mandated Cost Manual for Local Agencies (Mandated Cost Manual) to assist local agencies and school districts in claiming mandated program reimbursable costs. Audit Authority We conducted this performance audit in accordance with GC sections 17558.5 and 17561, which authorize the SCO to audit the city’s records to verify the actual amount of the mandated costs. In addition, GC section 12410 provides the SCO with general authority to audit the disbursement of state money for correctness, legality, and sufficient provisions of law for payment. Objective, Scope, The objective of our audit was to determine whether claimed costs represent increased costs resulting from the legislatively mandated Crime and Methodology Statistics Reports for the Department of Justice Program. Specifically, we conducted this audit to determine whether claimed costs were supported -2- City of Vallejo Crime Statistics Reports for the Department of Justice Program by appropriate source documents, were not funded by another source, and were not unreasonable and/or excessive. Unreasonable and/or excessive costs include ineligible costs that are not identified in the program’s parameters and guidelines as reimbursable costs. The audit period was July 1, 2001, through June 30, 2012. To achieve our objective, we performed the following procedures. • We reviewed the annual mandated cost claims filed by the city for the audit period and identified the significant cost components of each claim as salaries, benefits, and indirect costs. We determined whether there were any errors or unusual or unexpected variances from year to year. We reviewed the claimed activities to determine whether they adhered to the SCO’s Mandated Cost Manual and the program’s parameters and guidelines. • We completed an internal control questionnaire by interviewing key city staff. We discussed the claim preparation process with city staff to determine what information was obtained, who obtained it, and how it was used. • We assessed the reliability of data (payroll and expenditure records) generated by the city’s information management system by interviewing city staff members and examining supporting documentation. We determined that the data was sufficiently reliable to address the audit objective. • We interviewed city staff members to determine what employee classifications were involved in performing the reimbursable activities during the audit period. • We traced productive hourly rate (PHR) and benefit rate calculations for all employee classifications performing the mandated activities to supporting information in the city’s payroll system (see the Finding). • We assessed whether the average time increments (ATIs, the amount of time spent performing the reimbursable activities) claimed for each fiscal year in the audit period to perform the reimbursable activities were reasonable per the requirements of the program, and supported by source documentation (see the Finding). • We reviewed and analyzed the domestic violence incident report counts and verified that the counts were supported by the reports that the city submitted to the DOJ (see the Finding). • We determined whether the indirect cost rates were properly supported and applied. We recalculated the indirect cost rates for fiscal year (FY) 2009-10, FY 2010-11, and FY 2011-12. • We inquired with city staff members and reviewed independent auditor’s reports (with accompanying financial statements) to identify potential sources of offsetting revenues and reimbursements for the audit period. We determined that the claimed costs were not funded by another source. We did not audit the city’s financial statements. -3- City of Vallejo Crime Statistics Reports for the Department of Justice Program We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objective. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objective. Conclusion As a result of performing the audit procedures, we found instances of noncompliance with the requirements described in our audit objective. We did not find that the city claimed costs that were funded by other sources; however, we did find that it claimed unsupported and ineligible costs, as quantified in the Schedule and described in the Finding and Recommendation section. For the audit period, the City of Vallejo claimed $854,460 for costs of the legislatively mandated Crime Statistics Reports for the Department of Justice Program. Our audit found that $365,051 is allowable and $489,409 is unallowable. The State made no payments to the city. The State will pay $365,051, contingent upon available appropriations. Following issuance of this audit report, the SCO’s Local Government Programs and Services Division will notify the city of the adjustment to its claims via a system-generated letter for each fiscal year in the audit period. Follow-up on We have not previously conducted an audit of the city’s legislatively mandated Crime Statistics Reports for the Department of Justice Program. Prior Audit Findings Views of We issued a draft audit report on November 28, 2023. The City of Vallejo's Responsible representative responded by letter dated December 11, 2023. The city did not agree or disagree with the finding. This final audit report includes the Officials city’s response as an attachment. Restricted Use This audit report is solely for the information and use of the City of Vallejo, the California Department of Finance, and the SCO; it is not intended to be, and should not be, used by anyone other than these specified parties. This restriction is not intended to limit distribution of this audit report, which is a matter of public record and is available on the SCO website at www.sco.ca.gov. Original signed by KIMBERLY TARVIN, CPA Chief, Division of Audits January 24, 2024 -4- City of Vallejo Crime Statistics Reports for the Department of Justice Program Schedule— Summary of Program Costs July 1, 2001, through June 30, 2012 -5- C o s t E le m e n ts J u ly 1 , 2 0 0 1 , th ro u g h J u n e 3 0 , 2 0 0 2 D ire c t c o s ts : H o m ic id e re p o rts D o m e s tic v io le n c e re la te d c a lls fo r a s s is T o ta l d ire c t c o s ts In d ire c t c o s ts T o ta l d ire c t a n d in d ire c t c o s ts L e s s o ffs e ttin g re v e n u e s a n d re im b u rs e m T o ta l p ro g ra m c o s ts 3 L e s s a m o u n t p a id b y th e S ta te A llo w a b le c o s ts c la im e d in e x c e s s o f a m o J u ly 1 , 2 0 0 2 , th ro u g h J u n e 3 0 , 2 0 0 3 D ire c t c o s ts : H o m ic id e re p o rts D o m e s tic v io le n c e re la te d c a lls fo r a s s is T o ta l d ire c t c o s ts In d ire c t c o s ts T o ta l d ire c t a n d in d ire c t c o s ts L e s s o ffs e ttin g re v e n u e s a n d re im b u rs e m T o ta l p ro g ra m c o s ts 3 L e s s a m o u n t p a id b y th e S ta te A llo w a b le c o s ts c la im e d in e x c e s s o f a m o J u ly 1 , 2 0 0 3 , th ro u g h J u n e 3 0 , 2 0 0 4 D ire c t c o s ts : H o m ic id e re p o rts D o m e s tic v io le n c e re la te d c a lls fo r a s s is T o ta l d ire c t c o s ts In d ire c t c o s ts T o ta l d ire c t a n d in d ire c t c o s ts L e s s o ffs e ttin g re v e n u e s a n d re im b u rs e m T o ta l p ro g ra m c o s ts 3 L e s s a m o u n t p a id b y th e S ta te A llo w a b le c o s ts c la im e d in e x c e s s o f a m o ta n c e 2 e n ts u n t p ta n c e 2 e n ts u n t p ta n c e 2 e n ts u n t p a a a id id id A c tu a l C o s ts C la im e d $ 1 7 5 8 ,0 9 3 5 8 ,1 1 0 1 2 ,5 5 2 7 0 ,6 6 2 - $ 7 0 ,6 6 2 $ 5 2 6 2 ,0 6 9 6 2 ,1 2 1 9 ,4 4 2 7 1 ,5 6 3 - $ 7 1 ,5 6 3 $ 3 0 7 0 ,5 2 4 7 0 ,5 5 4 1 2 ,6 2 9 8 3 ,1 8 3 - $ 8 3 ,1 8 3 A llo w a b le p e r A u d it $ 1 7 2 1 ,6 6 0 2 1 ,6 7 7 4 ,6 8 3 2 6 ,3 6 0 - 2 6 ,3 6 0 - $ 2 6 ,3 6 0 $ 5 2 2 3 ,1 9 0 2 3 ,2 4 2 3 ,5 3 3 2 6 ,7 7 5 - 2 6 ,7 7 5 - $ 2 6 ,7 7 5 $ 3 0 2 4 ,6 7 6 2 4 ,7 0 6 4 ,4 2 2 2 9 ,1 2 8 - 2 9 ,1 2 8 - $ 2 9 ,1 2 8 A u d it 1 A d ju s tm e n t $ - (3 6 ,4 3 3 ) (3 6 ,4 3 3 ) (7 ,8 6 9 ) (4 4 ,3 0 2 ) - $ (4 4 ,3 0 2 ) $ - (3 8 ,8 7 9 ) (3 8 ,8 7 9 ) (5 ,9 0 9 ) (4 4 ,7 8 8 ) - $ (4 4 ,7 8 8 ) $ - (4 5 ,8 4 8 ) (4 5 ,8 4 8 ) (8 ,2 0 7 ) (5 4 ,0 5 5 ) - $ (5 4 ,0 5 5 ) City of Vallejo Crime Statistics Reports for the Department of Justice Program Schedule (continued) Actual Costs Allowable Audit Cost Elements Claimed per Audit Adjustment1 July 1, 2004, through June 30, 2005 Direct costs: Homicide reports $ 57 $ 57 $ - Domestic violence related calls for assistance 29,211 10,504 (18,707) Total direct costs 29,268 10,561 (18,707) Indirect costs 2,927 813 (2,114) Total direct and indirect costs 32,195 11,374 (20,821) Less offsetting revenues and reimbursements2 - - - Total program costs $ 32,195 11,374 $ (20,821) Less amount paid by the State3 - Allowable costs claimed in excess of amount paid $ 11,374 July 1, 2005, through June 30, 2006 Direct costs: Homicide reports $ 62 $ 62 $ - Domestic violence related calls for assistance 29,183 10,731 (18,452) Total direct costs 29,245 10,793 (18,452) Indirect costs 2,925 830 (2,095) Total direct and indirect costs 32,170 11,623 (20,547) Less offsetting revenues and reimbursements2 - - - Total program costs $ 32,170 11,623 $ (20,547) Less amount paid by the State3 - Allowable costs claimed in excess of amount paid $ 11,623 July 1, 2006, through June 30, 2007 Direct costs: Homicide reports $ 60 $ 60 $ - Domestic violence related calls for assistance 71,615 26,655 (44,960) Total direct costs 71,675 26,715 (44,960) Indirect costs 23,437 8,735 (14,702) Total direct and indirect costs 95,112 35,450 (59,662) Less offsetting revenues and reimbursements2 - - - Total program costs $ 95,112 35,450 $ (59,662) Less amount paid by the State3 - Allowable costs claimed in excess of amount paid $ 35,450 -6- City of Vallejo Crime Statistics Reports for the Department of Justice Program Schedule (continued) Actual Costs Allowable Audit Cost Elements Claimed per Audit Adjustment1 July 1, 2007, through June 30, 2008 Direct costs: Revise existing policies and procedures $ 2,882 $ 2,882 $ - Homicide reports 101 101 - Domestic violence related calls for assistance 75,435 27,658 (47,777) Hate crime reports 1 9 1 9 - Total direct costs 78,437 30,660 (47,777) Indirect costs 37,078 14,494 (22,584) Total direct and indirect costs 115,515 45,154 (70,361) Less offsetting revenues and reimbursements2 - - - Total program costs $ 1 15,515 45,154 $ (70,361) Less amount paid by the State3 - Allowable costs claimed in excess of amount paid $ 45,154 July 1, 2008, through June 30, 2009 Direct costs: Homicide reports $ 77 $ 77 $ - Domestic violence related calls for assistance 70,207 26,871 (43,336) Hate crime reports 5 6 5 6 - Total direct costs 70,340 27,004 (43,336) Indirect costs 35,107 13,477 (21,630) Total direct and indirect costs 105,447 40,481 (64,966) Less offsetting revenues and reimbursements2 - - - Total program costs $ 1 05,447 40,481 $ (64,966) Less amount paid by the State3 - Allowable costs claimed in excess of amount paid $ 40,481 July 1, 2009, through June 30, 2010 Direct costs: Homicide reports $ 60 $ 60 $ - Domestic violence related calls for assistance 58,574 23,337 (35,237) Hate crime reports 2 7 2 7 - Total direct costs 58,661 23,424 (35,237) Indirect costs 15,176 6,060 (9,116) Total direct and indirect costs 73,837 29,484 (44,353) Less offsetting revenues and reimbursements2 - - - Total program costs $ 73,837 29,484 $ (44,353) Less amount paid by the State3 - Allowable costs claimed in excess of amount paid $ 29,484 -7- City of Vallejo Crime Statistics Reports for the Department of Justice Program Schedule (continued) -8- C o s t E le m e n ts J u ly 1 , 2 0 1 0 , th r o u g h J u n e 3 0 , 2 0 1 1 D ir e c t c o s ts : H o m ic id e r e p o r ts D o m e s tic v io le n c e r e la te d c a lls f o r a s s is H a te c r im e r e p o r ts T o ta l d ir e c t c o s ts I n d ir e c t c o s ts T o ta l d ir e c t a n d in d ir e c t c o s ts L e s s o f f s e ttin g r e v e n u e s a n d r e im b u r s e m T o ta l p r o g r a m c o s ts 3 L e s s a m o u n t p a id b y th e S ta te A llo w a b le c o s ts c la im e d in e x c e s s o f a m o J u ly 1 , 2 0 1 1 , th r o u g h J u n e 3 0 , 2 0 1 2 D ir e c t c o s ts : H o m ic id e r e p o r ts D o m e s tic v io le n c e r e la te d c a lls f o r a s s is H a te c r im e r e p o r ts T o ta l d ir e c t c o s ts I n d ir e c t c o s ts T o ta l d ir e c t a n d in d ir e c t c o s ts L e s s o f f s e ttin g r e v e n u e s a n d r e im b u r s e m T o ta l p r o g r a m c o s ts 3 L e s s a m o u n t p a id b y th e S ta te A llo w a b le c o s ts c la im e d in e x c e s s o f a m o ta n c e 2 e n ts u n t p ta n c e 2 e n ts u n t p a a id id A c tu a l C o s ts C la im e d $ 6 6 6 7 4 ,5 6 2 1 1 1 7 5 ,3 3 9 2 0 ,8 4 6 9 6 ,1 8 5 - $ 9 6 ,1 8 5 $ 5 0 2 6 2 ,2 1 1 5 9 6 2 ,7 7 2 1 5 ,8 1 9 7 8 ,5 9 1 - $ 7 8 ,5 9 1 A llo w a b le p e r A u d it $ 6 6 6 3 3 ,0 9 7 1 1 1 3 3 ,8 7 4 9 ,3 7 3 4 3 ,2 4 7 - 4 3 ,2 4 7 - $ 4 3 ,2 4 7 $ 5 0 2 5 2 ,1 3 4 5 9 5 2 ,6 9 5 1 3 ,2 8 0 6 5 ,9 7 5 - 6 5 ,9 7 5 - $ 6 5 ,9 7 5 A u d it 1 A d ju s tm e n t $ - ( 4 1 ,4 6 5 ) - ( 4 1 ,4 6 5 ) ( 1 1 ,4 7 3 ) ( 5 2 ,9 3 8 ) - $ ( 5 2 ,9 3 8 ) $ - ( 1 0 ,0 7 7 ) - ( 1 0 ,0 7 7 ) ( 2 ,5 3 9 ) ( 1 2 ,6 1 6 ) - $ ( 1 2 ,6 1 6 ) City of Vallejo Crime Statistics Reports for the Department of Justice Program Schedule (continued) -9- C o s t E le m e n ts S u m m a r y : J u ly 1 , 2 0 0 1 , th r o u g h J u n e 3 0 D ir e c t c o s ts : R e v is e e x is tin g p o lic ie s a n d p r o c e d u r e s H o m ic id e r e p o r ts D o m e s tic v io le n c e r e la te d c a lls f o r a s s is H a te c r im e r e p o r ts T o ta l d ir e c t c o s ts I n d ir e c t c o s ts T o ta l d ir e c t a n d in d ir e c t c o s ts L e s s o f f s e ttin g r e v e n u e s a n d r e im b u r s e m T o ta l p r o g r a m c o s ts 3 L e s s a m o u n t p a id b y th e S ta te A llo w a b le c o s ts c la im e d in e x c e s s o f a m o , 2 0 1 ta n c e 2 e n ts u n t p 2 a id A c tu a l C o s ts C la im e d $ 2 ,8 8 2 1 ,6 8 4 6 6 1 ,6 8 4 2 7 2 6 6 6 ,5 2 2 1 8 7 ,9 3 8 8 5 4 ,4 6 0 - $ 8 5 4 ,4 6 0 - A llo w a b le p e r A u d it $ 2 ,8 8 2 1 ,6 8 4 2 8 0 ,5 1 3 2 7 2 2 8 5 ,3 5 1 7 9 ,7 0 0 3 6 5 ,0 5 1 - 3 6 5 ,0 5 1 - $ 3 6 5 ,0 5 1 A u d it 1 A d ju s tm e n t $ - - ( 3 8 1 ,1 7 1 ) - ( 3 8 1 ,1 7 1 ) ( 1 0 8 ,2 3 8 ) ( 4 8 9 ,4 0 9 ) - $ ( 4 8 9 ,4 0 9 ) _________________________ 1 See the Finding and Recommendation section. 2 We determined that the claimed costs were not funded by any other sources. 3 Payment amount current as of December 11, 2023. City of Vallejo Crime Statistics Reports for the Department of Justice Program Finding and Recommendation FINDING— The city claimed $661,684 in salaries and benefits for the Domestic Violence Related Calls for Assistance cost component. We found that Overstated salaries, $280,513 is allowable and $381,171 is unallowable. Unallowable related benefits, and related indirect costs total $108,238, for a total finding of $489,409. indirect costs Reimbursable activities for this cost component consist of writing, reviewing, and editing incident reports. The parameters and guidelines require that a written incident report support each domestic violence related call for assistance. To calculate the salaries and benefits, we multiplied the number of written incident reports by the ATIs necessary to process a report, then multiplied the resulting hours by a PHR and a related benefit rate. During testing, we found that the city had overstated the number of domestic violence related calls for assistance in FY 2010-11 and FY 2011-12; overstated the claimed hours; overstated the PHRs in some fiscal years; claimed unsupported costs for Police Officers, Patrol Officers, and Lieutenants to perform the mandated activities of reviewing and editing incident reports; and overstated the related indirect costs. The city overstated these costs because it did not claim costs in accordance with the program’s parameters and guidelines or the SCO’s Mandated Cost Manual. The following table summarizes the claimed, allowable, and overstated costs for the Domestic Violence Related Calls for Assistance cost component by fiscal year: Salaries and Benefits Fiscal Amount Amount Audit Unallowable Total Audit Year Claimed Allowable Adjustment Indirect Costs Adjustment 2001-02 $ 5 8,093 $ 2 1,660 $ (36,433) $ (7,869) $ (44,302) 2002-03 62,069 23,190 (38,879) (5,909) (44,788) 2003-04 70,524 24,676 (45,848) (8,207) (54,055) 2004-05 29,211 10,504 (18,707) (2,114) (20,821) 2005-06 29,183 10,731 (18,452) (2,095) (20,547) 2006-07 71,615 26,655 (44,960) (14,702) (59,662) 2007-08 75,435 27,658 (47,777) (22,584) (70,361) 2008-09 70,207 26,871 (43,336) (21,630) (64,966) 2009-10 58,574 23,337 (35,237) (9,116) (44,353) 2010-11 74,562 33,097 (41,465) (11,473) (52,938) 2011-12 62,211 52,134 (10,077) (2,539) (12,616) Total $ 661,684 $ 280,513 $ ( 381,171) $ ( 108,238) $ ( 489,409) Incident Reports For FY 2001-02 through FY 2009-10, the city’s claims did not identify the total number of written incident reports. However, the city’s claims identified 521 incident reports in FY 2010-11 and 587 in FY 2011-12. -10- City of Vallejo Crime Statistics Reports for the Department of Justice Program During testing, the city provided copies of the monthly reported data that it had submitted to the DOJ for the audit period. Based on our review, we found that the city overstated the number of incident reports in FY 2010-11 and FY 2011-12. We recalculated the allowable costs using the allowable number of incident reports. The following table summarizes the claimed, allowable, and overstated number of written incident reports for the fiscal years that resulted in audit adjustments: -11- 22T 00o F is c a l Y e a r 1 0 - 1 1 1 1 - 1 2 ta l A m o u n t C la im e d 1 ,1 550 288 17 A m o A llo w 1 u n t a b le 5 1 5 5 ,0 7 3 94 A u d it A d ju s tm e n ( 2 ( 3 3 ( 3 5 t ))) Average Time Increments For the audit period, the city estimated the time that it took Police Officers and Patrol Officers to write, review, and edit incident reports. The city also estimated the time that it took Sergeants and Lieutenants to review and edit incident reports. The city did not maintain documentation to support the estimated time increments claimed for Police Department staff members to perform the mandated activities. We interviewed key personnel and performed a walk-through of the city’s report writing process. The interviews confirmed that it took Police Officers and Patrol Officers an average of 25 minutes (0.42 hours) to write an incident report and Sergeants an average of four to 10 minutes (0.12 hours) to review and edit an incident report during the audit period. We also found that the city did not maintain and was not able to provide source documentation to support the ATIs claimed for Police Officers, Patrol Officers, or Lieutenants to review and edit incident reports. As a result, we concluded that the ATIs claimed for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports were unsupported and unallowable for the audit period. The city claimed overstated hours as a result of overstating the average ATI for Police Officers and Patrol Officers to write the incident reports, and claiming unsupported costs for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports. We recalculated the allowable costs based on the ATIs and classifications allowable for the audit period. City of Vallejo Crime Statistics Reports for the Department of Justice Program The following table summarizes, by fiscal year, the claimed, allowable, and adjusted hours for Police Officers and Patrol Officers to write incident reports: -12- 22222222222T 00000000000o F is c a l Y e a r 0 1 - 0 2 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 ta l C la im e H o u r s 8 8 8 5 7 6 3 4 3 3 6 1 6 1 5 5 4 6 5 2 2 4 6 ,2 0 1 d 6 .0 2 .0 4 .0 1 .0 4 .0 5 .0 8 .0 8 .0 8 .0 1 .0 4 .5 .5 8 00000000008 A llo H 2 w a b le o u r s 3 7 6 .7 3 6 1 .6 3 1 9 .6 1 4 4 .4 1 4 4 .4 2 5 9 .9 2 5 7 .0 2 4 3 .6 2 1 3 .3 2 1 7 .9 2 3 2 .6 ,7 7 1 .5 8 42288840688 A A u d it d ju s tm e n ( 5 0 9 .2 ( 4 9 0 .3 ( 4 4 4 .3 ( 1 9 6 .5 ( 1 8 9 .5 ( 3 5 5 .0 ( 3 6 0 .9 ( 3 1 4 .4 ( 2 5 4 .6 ( 3 0 3 .0 ( 1 1 .9 ( 3 ,4 3 0 .0 t 688222604200 )))))))))))) The following table summarizes, by fiscal year, the claimed, allowable, and adjusted hours for Police Officers and Patrol Officers to review and edit incident reports: 22222222222T 00000000000o F is c a l Y e a r 0 1 - 0 2 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 ta l C la im e H o u r s 1 5 1 4 1 255 1 0 1 09747 1 ,0 4 d 049764549330 .6.8.8.9.7.5.0.8.5.4.3.9 248785666282 A llo w a b le H o u r s - - - - - - - - - - - - A u d it A d ju s tm e n ( 1 5 0 .6 ( 1 4 4 .8 ( 1 2 9 .8 ( 5 7 .9 ( 5 6 .7 ( 1 0 4 .5 ( 1 0 5 .0 ( 9 4 .8 ( 7 9 .5 ( 4 3 .4 ( 7 3 .3 ( 1 ,0 4 0 .9 t 248785666282 )))))))))))) The following table summarizes, by fiscal year, the claimed, allowable, and adjusted hours for Lieutenants to review and edit incident reports: Fiscal Claimed Allowable Audit Year Hours Hours Adjustment 2001-02 51.68 - ( 51.68) 2002-03 49.70 - ( 49.70) 2003-04 44.57 - ( 44.57) 2004-05 19.89 - ( 19.89) 2005-06 19.48 - ( 19.48) 2006-07 35.88 - ( 35.88) 2007-08 36.05 - ( 36.05) 2008-09 32.55 - ( 32.55) 2009-10 27.30 - ( 27.30) Total 317.10 - ( 317.10) City of Vallejo Crime Statistics Reports for the Department of Justice Program Productive Hourly Rates For the audit period, the city calculated average PHRs for Police Officers and Patrol Officers to write, review, and edit incident reports and for Sergeants to review and edit incident reports. For FY 2001-02 through FY 2009-10, the city calculated average PHRs for Lieutenants to review and edit incident reports. During testing, we interviewed a Police Department staff member who was responsible for performing the mandated activities during the audit period, and we conducted additional interviews with city staff members. Based on our interviews, we found that Police Officers and Patrol Officers write incident reports and Sergeants review and edit incident reports. We also found that the city did not maintain and was not able to provide source documentation to support the claimed PHRs for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports during the audit period. Therefore, the costs claimed for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports were unsupported and unallowable for the audit period. We recalculated the PHRs for Police Officers, Patrol Officers, Sergeants, and Lieutenants using salary records that the city provided for the audit period. We determined that the city overstated the claimed PHRs in FY 2003-04 through FY 2005-06, and in FY 2010-11. The city claimed overstated costs as a result of overstating the PHRs in those fiscal years and claiming unsupported costs for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports. The following table summarizes the claimed, allowable, and adjusted PHRs for Police Officers to write incident reports for the fiscal years that resulted in audit adjustments: -13- 2 2 2 2 0 0 0 0 F Y 0 3 0 4 0 5 1 0 is c e a - 0 - 0 - 0 - 1 a r 4 5 6 1 l $ C la im P H 4 5 5 6 R 9 0 1 2 e . . . . d 0 0 0 9 7 5 5 7 A llo w P H $ 4 4 4 5 a R 6 8 9 9 b . . . . le 2 1 0 5 2 6 1 3 A $ A u d d j u s t m ( 2 ( 2 ( 1 ( 3 it . . . . e 8 0 7 8 n 6 0 9 4 t ) ) ) ) The following table summarizes the claimed, allowable, and adjusted PHR for Sergeants to review and edit incident reports for the fiscal years that resulted in an audit adjustment: Fiscal Claimed Allowable Audit Year PHR PHR Adjustment 2010-11 $ 77.95 $ 67.86 $ (10.09) City of Vallejo Crime Statistics Reports for the Department of Justice Program The following table summarizes, by fiscal year, the claimed, allowable, and adjusted PHRs for Police Officers and Patrol Officers to review and edit incident reports: -14- 22222222222 00000000000 F is c a l Y e a r 0 1 - 0 2 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 C la im P H $ 3 4 4 5 5 5 5 5 5 6 6 R 80901679823 e d .1.5.0.0.0.8.8.2.2.9.5 47755030971 A llo w a b P H R $ - - - - - - - - - - - le A u d it A d ju s tm e $ ( 3 8 .1 ( 4 0 .5 ( 4 9 .0 ( 5 0 .0 ( 5 1 .0 ( 5 6 .8 ( 5 7 .8 ( 5 9 .2 ( 5 8 .2 ( 6 2 .9 ( 6 3 .5 n 47755030971 t ))))))))))) The following table summarizes, by fiscal year, the claimed, allowable, and adjusted PHRs for Lieutenants to review and edit incident reports: 222222222 000000000 F is c a l Y e a r 0 1 - 0 2 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9 0 9 - 1 0 C la im P H $ 5 5 6 6 6 8 9 8 8 R 476785193 e d .4.9.1.4.7.5.1.1.7 740274832 A llo w a b P H R $ - - - - - - - - - le A u d it A d ju s tm e $ ( 5 4 .4 ( 5 7 .9 ( 6 6 .1 ( 6 7 .4 ( 6 8 .7 ( 8 5 .5 ( 9 1 .1 ( 8 9 .1 ( 8 3 .7 n 740274832 t ))))))))) Benefit Rates For the audit period, the city calculated benefit rates for Police Officers and Patrol Officers to write, review, and edit incident reports and for Sergeants to review and edit incident reports. For FY 2001-02 through FY 2009-10, the city also calculated benefit rates for Lieutenants to review and edit incident reports. During testing, we interviewed a Police Department staff member who was responsible for performing the mandated activities during the audit period, and we conducted additional interviews with city staff members. Based on our interviews, we found that Police Officers and Patrol Officers write the incident reports and Sergeants review and edit incident reports. We also found that the city did not maintain and was not able to provide source documentation to support the claimed benefit costs for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports during the audit period. Therefore, the benefit costs claimed for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports were unsupported and unallowable for the audit period. We recalculated the benefit rates for Police Officers, Patrol Officers, Sergeants, and Lieutenants using salary records that the city provided for City of Vallejo Crime Statistics Reports for the Department of Justice Program the audit period. We determined that the city overstated the claimed benefit costs as a result of claiming unsupported costs for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports. The following table summarizes, by fiscal year, the claimed, allowable, and adjusted benefit rates for Police Officers, Patrol Officers, and Lieutenants to review and edit incident reports: -15- 22222222222 00000000000 F is c a l Y e a r 0 1 - 0 2 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 B Ce n la im e d e f it R a 3 0 .2 3 5 .7 4 3 .1 3 0 .2 3 0 .2 5 4 .1 5 8 .0 5 9 .7 6 1 .8 7 6 .2 8 6 .0 te 0 % 0 % 0 % 0 % 0 % 2 % 1 % 4 % 9 % 3 % 5 % A llo w a b le B e n e f it R a te - - - - - - - - - - - A d Aju ( 3 ( 3 ( 4 ( 3 ( 3 ( 5 ( 5 ( 5 ( 6 ( 7 ( 8 us 05300489166 d it tm e n .2 0 % .7 0 % .1 0 % .2 0 % .2 0 % .1 2 % .0 1 % .7 4 % .8 9 % .2 3 % .0 5 % t ))))))))))) Criteria Section IV, “Reimbursable Activities,” of the parameters and guidelines begins: To be eligible for mandated cost reimbursement for any fiscal year, only actual costs may be claimed. Actual costs are those costs actually incurred to implement the mandated activities. Actual costs must be traceable and supported by source documents that show the validity of such costs, when they were incurred, and their relationship to the reimbursable activities. . . . Section IV of the parameters and guidelines continues: The claimant is only allowed to claim and be reimbursed for increased costs for reimbursable activities. . . . Increased cost is limited to the cost of an activity that the claimant is required to incur as a result of the mandate. Section IV.D, “Domestic Violence Related Calls for Assistance,” of the parameters and guidelines states, in part: The following activity, performed by city, county, and city and county law enforcement agencies, is eligible for reimbursement: 1. Support all domestic-violence related calls for assistance with a written incident report. 2. Review and edit the report. Reimbursement is not required to interview parties, complete a booking sheet or restraining order, transport the victim to the hospital, book the perpetrator, or other related activities to enforce a crime and assist the victim. City of Vallejo Crime Statistics Reports for the Department of Justice Program In addition, reimbursement is not required to include the information in the incident report required by Penal Code section 13730 (c)(1)(2), based on the Commission decision denying reimbursement for that activity in Domestic Violence Training and Incident Reporting (CSM-96-362-01). Reimbursement for including the information in the incident report required by Penal Code section 13730 (c)(3) is not provided in these parameters and guidelines and may not be claimed under this program, but is addressed in Domestic Violence Incident Reports II (02-TC-18). Section V.A.1, “Salaries and Benefits,” of the parameters and guidelines states: Report each employee implementing the reimbursable activities by name, job classification, and productive hourly rate (total wages and related benefits divided by productive hours). Describe the specific reimbursable activities performed and the hours devoted to each reimbursable activity performed. Recommendation The Crime Statistics Reports for the Department of Justice Program was suspended in the FY 2012-13 through FY 2023-24 Budget Acts. If the program becomes active again, we recommend that the city: • Follow the program’s parameters and guidelines and the SCO’s Mandated Cost Manual when claiming reimbursement for mandated costs; • Claim costs based on the actual time increments required to perform the mandated activities; • Claim costs based on the number of domestic violence related calls for assistance that are supported with written reports; and • Calculate PHRs based on employee classifications that performed the mandated activities and are supported by source documents for the corresponding fiscal year. City’s Response The city did not agree or disagree with the finding. -16- City of Vallejo Crime Statistics Reports for the Department of Justice Program Attachment— City’s Response to Draft Audit Report -17- -18- State Controller’s Office Division of Audits Post Office Box 942850 Sacramento, CA 94250 www.sco.ca.gov S23-MCC-0004