Visalia City

CITY OF VISALIA 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 BETTY T. YEE California State Controller October 2020 BETTY T. YEE California State Controller October 14, 2020 CERTIFIED MAIL—RETURN RECEIPT REQUESTED Renee Nagel, Finance Director City of Visalia 707 West Acequia Avenue Visalia, CA 93291 Dear Ms. Nagel: The State Controller’s Office audited the costs claimed by the City of Visalia 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 $1,261,518 for costs of the mandated program. Our audit found that $490,560 is allowable and $770,958 is unallowable. The costs are 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 $490,560, 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 JIM L. SPANO, CPA Chief, Division of Audits JLS/ac Renee Nagel, Finance Director -2- October 14, 2020 cc: Bob Link, Mayor City of Visalia Chris Hill, Principal Program Budget Analyst Local Government Unit California Department of Finance Steven Pavlov, Finance Budget Analyst Local Government Unit California Department of Finance Debra Morton, Manager Local Reimbursement Section State Controller’s Office City of Visalia Crime Statistics Reports for the Department of Justice Program Contents Audit Report Summary ............................................................................................................................ 1 Background ........................................................................................................................ 1 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 .............................................................................................. 9 Attachment—City’s Response to Draft Audit Report City of Visalia 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 Visalia 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 $1,261,518 for costs of the mandated program. Our audit found that $490,560 is allowable and $770,958 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 $490,560, contingent upon available appropriations. BBaacckkggrroouunndd 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 constitutes a new program or higher level of service and imposes a reimbursable state-mandated program on city and county claimants beginning on July 1, 2001, within the meaning of Article XII B, section 6 of the California Constitution and Government Code (GC) section 17514. 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 also found that this test claim legislation constitutes 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:  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);  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 cause physical injury, emotional suffering, or property damage -1- City of Visalia Crime Statistics Reports for the Department of Justice Program 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, or physical or mental disability, or 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 PC section 12025 (carrying a concealed firearm) or section 12031 (carrying a loaded firearm in a public place), and any other offense charged in the same complaint, indictment, or information. The Commission found that this activity is a reimbursable mandate from July 1, 2001, through January 1, 2005. (PC sections 12025 [h][1] and [h][3], and 12031 [m][1] 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 agency to report the following in a manner to be prescribed by the Attorney General: o Any information that may be required relative to hate crimes, 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; and 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 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, SCO issues claiming instructions to assist local agencies in claiming mandated program reimbursable costs. Objective, Scope, The objective of our audit was to determine whether costs claimed 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 costs claimed were supported by appropriate source documents, were not funded by another source, and were not unreasonable and/or excessive.1 1 Unreasonable and/or excessive costs include ineligible costs that are not identified in the program’s parameters and guidelines as a reimbursable cost. -2- City of Visalia Crime Statistics Reports for the Department of Justice Program The audit period was July 1, 2001, through June 30, 2012. To achieve our objective, 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. Determined whether there were any errors or unusual or unexpected variances from year to year. Reviewed the activities claimed to determine whether they adhered to the SCO’s claiming instructions and the program’s parameters and guidelines;  Completed an internal control questionnaire by interviewing key city staff. Discussed the claim preparation process with city staff to determine what information was obtained, who obtained it, and how it was used;  Interviewed city staff to determine what employee classifications were involved in performing the reimbursable activities;  Traced productive hourly rate (PHR) calculations for all employee classifications performing the mandated activities to the job classification and salary range documentation provided by the city;  Determined whether the benefit rates were properly supported and applied. Recomputed the benefit rates for FY 2003-04, FY 2008-09, FY 2010-11, and FY 2011-12;  Assessed whether the average time increments (ATIs) 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;  Reviewed and analyzed the claimed domestic violence incident report counts for consistency and possible exclusions, and verified that the counts were supported by the reports that the city submitted to the DOJ;  Traced a judgmentally selected non-statistical sample of 248 reports (76 for fiscal year [FY] 2009-10, 80 for FY 2010-11, and 92 for FY 2011-12) out of 9,519 total allowable written incident reports of domestic violence calls for assistance. Verified that the written incident reports were related to domestic violence calls for assistance. Errors found were not projected to the population;  Determined whether the indirect cost rates were properly supported and applied. Recomputed the indirect cost rates for FY 2003-04, FY 2008-09, FY 2010-11 and FY 2011-12; and  Verified that costs claimed were not funded by another source, based on discussions with the city’s representative. GC sections 12410, 17558.5, and 17561 provide the legal authority to conduct this audit. 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 -3- City of Visalia Crime Statistics Reports for the Department of Justice Program 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. We limited our review of the city’s internal controls to gaining an understanding of the transaction flow and claim preparation process as necessary to develop appropriate auditing procedures. Our audit scope did not assess the efficiency or effectiveness of program operations. We did not audit the city’s financial statements. Conclusion As a result of performing the audit procedures, we found instances of noncompliance with the requirements described in our audit objective. We found that the city did not claim costs funded by another source; however, the unallowable costs are ineligible and unsupported, as quantified in the Schedule and described in the Finding and Recommendation section of this audit report. For the audit period, the City of Visalia claimed $1,261,518 for costs of the legislatively mandated Crime Statistics Reports for the Department of Justice Program. Our audit found that $490,560 is allowable and $770,958 is unallowable. The State made no payments to the city. The State will pay $490,560, 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 September 16, 2020. Renee Nagel, Responsible Finance Director, responded by letter dated September 24, 2020 (Attachment). The city agrees with the finding. This audit report includes Officials the city’s complete response. Restricted Use This audit report is solely for the information and use of the City of Visalia, the California Department of Finance, and 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 JIM L. SPANO, CPA Chief, Division of Audits October 14, 2020 -4- City of Visalia Crime Statistics Reports for the Department of Justice Program Schedule— Summary of Program Costs July 1, 2001, through June 30, 2012 Actual Costs Allowable Audit Cost Elements Claimed Per Audit Adjustment1 July 1, 2001, through June 30, 2002 Direct costs: Domestic violence related calls for assistance $ 75,616 $ 2 6,032 $ (49,584) Total direct costs 75,616 26,032 (49,584) Indirect costs 31,608 10,881 (20,727) Total program costs $ 107,224 36,913 $ (70,311) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 3 6,913 July 1, 2002, through June 30, 2003 Direct costs: Domestic violence related calls for assistance $ 70,064 $ 2 5,731 $ (44,333) Total direct costs 70,064 25,731 (44,333) Indirect costs 30,772 11,301 (19,471) Total program costs $ 100,836 37,032 $ (63,804) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 3 7,032 July 1, 2003, through June 30, 2004 Direct costs: Domestic violence related calls for assistance $ 69,345 $ 2 7,095 $ (42,250) Total direct costs 69,345 27,095 (42,250) Indirect costs 33,244 12,989 (20,255) Total program costs $ 102,589 40,084 $ (62,505) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 0,084 -5- City of Visalia 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: Domestic violence related calls for assistance $ 84,032 $ 3 1,449 $ (52,583) Total direct costs 84,032 31,449 (52,583) Indirect costs 60,603 22,681 (37,922) Total program costs $ 144,635 54,130 $ (90,505) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 5 4,130 July 1, 2005, through June 30, 2006 Direct costs: Domestic violence related calls for assistance $ 87,608 $ 3 0,289 $ (57,319) Total direct costs 87,608 30,289 (57,319) Indirect costs 44,961 15,544 (29,417) Total program costs $ 132,569 45,833 $ (86,736) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 5,833 July 1, 2006, through June 30, 2007 Direct costs: Domestic violence related calls for assistance $ 69,897 $ 2 7,403 $ (42,494) Total direct costs 69,897 27,403 (42,494) Indirect costs 36,871 14,455 (22,416) Total program costs $ 106,768 41,858 $ (64,910) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 1,858 July 1, 2007, through June 30, 2008 Direct costs: Domestic violence related calls for assistance $ 78,985 $ 3 0,229 $ (48,756) Total direct costs 78,985 30,229 (48,756) Indirect costs 36,277 13,884 (22,393) Total program costs $ 115,262 44,113 $ (71,149) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 4,113 -6- City of Visalia Crime Statistics Reports for the Department of Justice Program Schedule (continued) Actual Costs Allowable Audit Cost Elements Claimed Per Audit Adjustment1 July 1, 2008, through June 30, 2009 Direct costs: Domestic violence related calls for assistance $ 74,268 $ 2 8,895 $ (45,373) Total direct costs 74,268 28,895 (45,373) Indirect costs 34,364 13,370 (20,994) Total program costs $ 108,632 42,265 $ (66,367) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 2,265 July 1, 2009, through June 30, 2010 Direct costs: Domestic violence related calls for assistance $ 78,997 $ 3 0,965 $ (48,032) Total direct costs 78,997 30,965 (48,032) Indirect costs 46,284 18,142 (28,142) Total program costs $ 125,281 49,107 $ (76,174) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 9,107 July 1, 2010, through June 30, 2011 Direct costs: Domestic violence related calls for assistance $ 92,021 $ 3 5,210 $ (56,811) Total direct costs 92,021 35,210 (56,811) Indirect costs 35,075 13,421 (21,654) Total program costs $ 127,096 48,631 $ (78,465) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 4 8,631 -7- City of Visalia Crime Statistics Reports for the Department of Justice Program Schedule (continued) Actual Costs Allowable Audit Cost Elements Claimed Per Audit Adjustment1 July 1, 2011, through June 30, 2012 Direct costs: Homicide Reports $ 298 $ 298 $ - Domestic violence related calls for assistance 65,430 36,264 (29,166) Hate Crime Reports 298 2 98 - Total direct costs 66,026 36,860 (29,166) Indirect costs 24,600 13,734 (10,866) Total program costs $ 90,626 50,594 $ (40,032) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 5 0,594 Summary: July 1, 2001, through June 30, 2012 Direct costs: Homicide Reports $ 298 $ 298 $ - Domestic violence related calls for assistance 846,263 3 29,562 (516,701) Hate Crime Reports 298 2 98 - Total direct costs 846,859 3 30,158 (516,701) Indirect costs 414,659 1 60,402 (254,257) Total program costs $ 1,261,518 4 90,560 $ (770,958) Less amount paid by the State2 - Allowable costs claimed in excess of amount paid $ 490,560 _________________________ 1 See the Finding and Recommendation section. 2 Payment amount current as of September 25, 2020. -8- City of Visalia Crime Statistics Reports for the Department of Justice Program Finding and Recommendation FINDING— The city claimed $846,263 in salaries and benefits for the Domestic Violence Related Calls for Assistance cost component. We found that Overstated salary and $329,562 is allowable and $516,701 is unallowable. Unallowable related benefit costs indirect costs total $254,257, for a total finding of $770,958. 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 claimed salaries and benefits, the city multiplied the number of written incident reports by the ATIs necessary to process a report, then multiplied the resulting hours by a PHR and related benefit rate. During testing, we found that the city overstated the number of domestic violence related calls for assistance; misstated the ATIs used to perform the mandated activities; claimed ineligible costs for a classification that did not perform the mandated activity; overstated the PHRs; and overstated 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 State Controller’s Office Mandated Cost Manual for Local Agencies. 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 $ 75,616 $ 26,032 $ (49,584) $ (20,727) $ (70,311) 2002-03 70,064 25,731 (44,333) (19,471) (63,804) 2003-04 69,345 27,095 (42,250) (20,255) (62,505) 2004-05 84,032 31,449 (52,583) (37,922) (90,505) 2005-06 87,608 30,289 (57,319) (29,417) (86,736) 2006-07 69,897 27,403 (42,494) (22,416) (64,910) 2007-08 78,985 30,229 (48,756) (22,393) (71,149) 2008-09 74,268 28,895 (45,373) (20,994) (66,367) 2009-10 78,997 30,965 (48,032) (28,142) (76,174) 2010-11 92,021 35,210 (56,811) (21,654) (78,465) 2011-12 65,430 36,264 (29,166) (10,866) (40,032) Total $ 846,263 $ 329,562 $ (516,701) $ (254,257) $ (770,958) -9- City of Visalia Crime Statistics Reports for the Department of Justice Program Incident Reports The city provided monthly reports to the DOJ for the audit period. During our review of these monthly reports, we found that the city overstated the number of domestic violence related calls for assistance in FY 2001-02, FY 2002-03, FY 2004-05, FY 2005-06, FY 2007-08, FY 2010-11 and FY 2011-12. The city overstated domestic violence related calls for assistance because it claimed unsupported calls that did not result in a written incident report. We recalculated the allowable costs using the supported incident report counts. The following table summarizes the claimed, allowable, and overstated number of written incident reports: Fiscal Amount Amount Audit Year1 Claimed Allowable Adjustment 2001-02 1,177 1 ,037 (140) 2002-03 981 9 22 (59) 2004-05 944 9 01 (43) 2005-06 919 8 43 (76) 2007-08 797 7 84 (13) 2010-11 914 8 98 (16) 2011-12 930 9 11 (19) Total 6,662 6 ,296 ( 366) 1The table identifies the fiscal years that resulted in audit adjustments. Average Time Increments For FY 2001-02 through FY 2010-11, the city estimated that it took Police Officers 30 minutes (0.50 hours) to write and 10 minutes (0.17 hours) to edit incident reports and Sergeants 45 minutes (0.75 hours) to review incident reports. For FY 2011-12, the city estimated that it took Police Officers 60 minutes (1 hour) to write, Sergeants three minutes (0.05 hours) to review, and Crime Analysts three minutes (0.05 hours) to edit incident reports. The city did not maintain documentation to support the ATIs claimed for Police Department staff members performing the mandated activities. During testing, we interviewed Police Department staff members who were responsible for performing the mandated activities. Based on our interviews, we found that Police Officers, not Crime Analysts, edit incident reports. We also found that it took Police Officers an average of 15 minutes (0.25 hours) to write and 10 minutes (0.17 hours) to edit incident reports, and Sergeants an average of 13 minutes (0.22 hours) to review incident reports. The city claimed overstated salary and benefit costs as a result of overstating ATIs and claiming ineligible costs for the Crime Analyst classification to edit incident reports in FY 2011-12. We recalculated the allowable costs based on the ATIs and classifications allowable for the audit period. -10- City of Visalia Crime Statistics Reports for the Department of Justice Program The following table summarizes the claimed, allowable, and adjusted hours by fiscal year: Hours Claimed Hours Allowable Police Officer & Police Police Sergeant Sergeant Crime Analyst Officer Officer Fiscal Write & Edit Review Write Edit Review Audit Year Reports Reports Total Reports Reports Reports Total Adjustment 2001-02 784.67 882.75 1,667.42 259.25 228.14 176.29 663.68 ( 1,003.74) 2002-03 654.00 735.75 1,389.75 230.50 202.84 156.74 590.08 ( 799.67) 2003-04 602.67 678.00 1,280.67 226.00 198.88 153.68 578.56 ( 702.11) 2004-05 629.33 708.00 1,337.33 225.25 198.22 153.17 576.64 ( 760.69) 2005-06 612.67 689.25 1,301.92 210.75 185.46 143.31 539.52 ( 762.40) 2006-07 514.67 579.00 1,093.67 193.00 169.84 131.24 494.08 ( 599.59) 2007-08 531.33 597.75 1,129.08 196.00 172.48 133.28 501.76 ( 627.32) 2008-09 514.00 578.25 1,092.25 192.75 169.62 131.07 493.44 ( 598.81) 2009-10 517.33 582.00 1,099.33 194.00 170.72 131.92 496.64 ( 602.69) 2010-11 609.33 685.50 1,294.83 224.50 197.56 152.66 574.72 ( 720.11) 2011-12 976.50 46.50 1,023.00 227.75 200.42 154.87 583.04 ( 439.96) Total 6 ,946.50 6 ,762.75 1 3,709.25 2 ,379.75 2 ,094.18 1 ,618.23 6 ,092.16 ( 7,617.09) Productive Hourly Rates For FY 2001-02 through FY 2010-11, the city calculated PHRs for Police Officers to write and edit incident reports, and for Sergeants to review incident reports. For FY 2011-12, the city calculated PHRs for Police Officers to write, Sergeants to review, and Crime Analysts to edit incident reports. During testing, we interviewed Police Department staff members responsible for performing the mandated activities. Based on our interviews, we found that Police Officers, not Crime Analysts, edit incident reports. Therefore, the claimed PHR for the Crime Analyst in FY 2011-12 to edit incident reports is ineligible for reimbursement. For FY 2001-02 through FY 2003-04, the city used the maximum annual salaries to calculate the PHRs for the Police Department staff members responsible for performing the mandated activities. For FY 2004-05 through FY 2011-12, the city used the maximum monthly salaries to calculate these PHRs. We recalculated the PHRs for the Police Officer and Sergeant classifications using the average annual salaries for FY 2001-02 through FY 2003-04, and the average monthly salaries identified in the city’s job classification and salary range documentation. We determined that the city overstated the claimed PHRs as a result of using the maximum annual and monthly salaries. We found that the city overstated the claimed salary and benefit costs as a result of overstating the PHRs and claiming an ineligible classification. We recalculated the allowable costs based on allowable PHRs and classifications. -11- City of Visalia Crime Statistics Reports for the Department of Justice Program Police Officer The following table summarizes the claimed, allowable, and adjusted PHR for the audit period: Fiscal Claimed Allowable Rate Year PHR PHR Difference 2001-02 29.58 2 6.62 (2.96) 2002-03 29.58 2 6.62 (2.96) 2003-04 29.58 2 6.62 (2.96) 2004-05 34.26 3 0.84 (3.42) 2005-06 35.63 3 0.84 (4.79) 2006-07 35.63 3 2.07 (3.56) 2007-08 38.94 3 5.04 (3.90) 2008-09 38.94 3 5.04 (3.90) 2009-10 40.49 3 6.44 (4.05) 2010-11 39.69 3 5.67 (4.02) 2011-12 39.69 3 5.67 (4.02) Sergeant The following table summarizes the claimed, allowable, and adjusted PHR for the audit period: Fiscal Claimed Allowable Rate Year PHR PHR Difference 2001-02 36.33 3 2.59 (3.74) 2002-03 36.33 3 2.59 (3.74) 2003-04 36.33 3 2.59 (3.74) 2004-05 41.34 3 7.09 (4.25) 2005-06 43.02 3 7.09 (5.93) 2006-07 43.02 3 8.60 (4.42) 2007-08 48.89 4 3.86 (5.03) 2008-09 48.89 4 3.86 (5.03) 2009-10 48.89 4 3.86 (5.03) 2010-11 49.37 4 4.30 (5.07) 2011-12 49.37 4 4.30 (5.07) Criteria Section IV of the parameters and guidelines states, in part: 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….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 – Ongoing Activities, subsection D, allows ongoing activities related to costs supporting domestic violence related calls for assistance with a written incident report, and reviewing and editing the report. -12- City of Visalia Crime Statistics Reports for the Department of Justice Program Section V of the parameters and guidelines states that cost elements must be identified for the reimbursable activities described in section IV of the parameters and guidelines. Each reimbursable cost must be supported by source documentation. For salary and benefit costs, claimants are to report each employee implementing the reimbursable activities by name, job classification, and PHR. Recommendation The Crime Statistics Reports for the Department of Justice Program was suspended in the FY 2012-13 through FY 2019-20 Budget Acts. If the program becomes active again, we recommend that the city:  Follow the mandated program claiming instructions and the parameters and guidelines when claiming reimbursement for mandated costs;  Claim costs based on the ATIs required to perform the mandated cost activities;  Claim costs based on the number of domestic violence related calls for assistance that are supported with a written report; and  Calculate PHRs based on the average annual or monthly salary identified in the city’s job classification and salary range documentation for the corresponding fiscal year. City’s Response The city agrees with the audit finding. -13- City of Visalia Crime Statistics Reports for the Department of Justice Program Attachment— City’s Response to Draft Audit Report State Controller’s Office Division of Audits Post Office Box 942850 Sacramento, CA 94250 http://www.sco.ca.gov S19-MCC-0024