Fresno County

FRESNO COUNTY Audit Report PRISONER PARENTAL RIGHTS PROGRAM Chapter 820, Statutes of 1991 July 1, 1999, through June 30, 2002 STEVE WESTLY California State Controller July 2004 STEVE WESTLY California State Controller July 21, 2004 The Honorable Vicki Crow Auditor-Controller Fresno County P.O. Box 1247 Fresno, CA 93715-1247 Dear Ms. Crow: The State Controller’s Office has completed an audit of the claims filed by Fresno County for costs of the legislatively mandated Prisoner Parental Rights Program (Chapter 820, Statutes of 1991) for the period of July 1, 1999, through June 30, 2002. The county claimed $530,686 ($531,686 in costs less a $1,000 penalty for filing late) for the mandated program. Our audit disclosed that $491,277 is allowable and $39,409 is unallowable. The unallowable costs occurred because the county claimed unsupported costs. The county was paid $118,835. Allowable costs claimed in excess of the amount paid total $372,442. If you have any questions, please contact Jim L. Spano, Chief, Compliance Auidts Bureau, at (916) 323-5849. Sincerely, Original Signed By: VINCENT P. BROWN Chief Operating Officer VPB:jj/ams cc: Richard Pierce, Sheriff Fresno County Jean Rousseau Chief Accountant Auditor-Controller’s Office Fresno County James Tilton, Program Budget Manager Corrections and General Government Department of Finance Fresno County Prisoner Parental Rights Program Contents Audit Report Summary............................................................................................................................ 1 Background........................................................................................................................ 1 Objective, Scope, and Methodology................................................................................. 1 Conclusion.......................................................................................................................... 2 Views of Responsible Officials.......................................................................................... 2 Restricted Use.................................................................................................................... 3 Schedule 1—Summary of Program Costs........................................................................... 4 Findings and Recommendations........................................................................................... 6 Attachment—County’s Response to Draft Audit Report Steve Westly • California State Controller Fresno County Prisoner Parental Rights Program Audit Report Summary The State Controller’s Office (SCO) has completed an audit of the claims filed by Fresno County for costs of the legislatively mandated Prisoner Parental Rights Program (Chapter 820, Statutes of 1991) for the period of July 1, 1999, through June 30, 2002. The last day of fieldwork was September 16, 2003. The county claimed $530,686 ($531,686 in costs less a $1,000 penalty for filing late) for the mandated program. The audit disclosed that $491,277 is allowable and $39,409 is unallowable. The unallowable costs occurred because the county claimed unsupported costs. The county was paid $118,835. Allowable costs claimed in excess of the amount paid total $372,442. Background Chapter 820, Statutes of 1991, expanded juvenile court actions eligible for parental attendance rights to include legal guardianship proceedings that require prisoner parental appearance before the Superior Court. On September 23, 1993, the Commission on State Mandates (COSM) determined that Chapter 820, Statutes of 1991, resulted in state-mandated costs that are reimbursable pursuant to Government Code Section 17561. Because the Trial Court Funding Act prohibits counties from claiming reimbursement for activities related to court operations, the COSM found that only the activities of transporting prisoners to and from the court, and housing prisoners if required in the course of transport, are reimbursable activities. Parameters and Guidelines, adopted by the COSM on November 17, 1994 (and amended on November 20, 1997) establishes state mandates and defines criteria for reimbursement. In compliance with Government Code Section 17558, the SCO issues claiming instructions for each mandate requiring state reimbursement to assist local agencies in claiming reimbursable costs. Objective, The audit objective was to determine whether costs claimed are increased Scope, and costs incurred as a result of the legislatively mandated Prisoner Parental Rights Program (Chapter 820, Statutes of 1991) for the period of July 1, Methodology 1999, through June 30, 2002. The auditor performed the following procedures: • Reviewed the costs claimed to determine if they were increased costs resulting from the mandated program; • Traced the costs claimed to the supporting documentation to determine whether the costs were properly supported; • Confirmed that the costs claimed were not funded by another source; and • Reviewed the costs claimed to determine that the costs were not unreasonable and/or excessive. Steve Westly • California State Controller 1 Fresno County Prisoner Parental Rights Program The SCO conducted the audit in accordance with Government Auditing Standards, issued by the Comptroller General of the United States, and under the authority provided for under Government Code Section 17558.5. The SCO did not audit the county’s financial statements. The scope was limited to planning and performing audit procedures necessary to obtain reasonable assurance concerning the allowability of expenditures claimed for reimbursement. Accordingly, transactions were examined, on a test basis, to determine whether the amounts claimed for reimbursement were supported. Review of the county’s internal controls was limited to gaining an understanding of the transaction flow and claim preparation process as necessary to develop appropriate auditing procedures. Conclusion The audit disclosed instances of noncompliance with the requirements outlined above. These instances are described in the accompanying Summary of Program Costs (Schedule 1) and in the Findings and Recommendations section of this report. For the audit period, Fresno County claimed $530,686 ($531,686 in costs less a $1,000 penalty for filing late) for costs of the legislatively mandated Prisoner Parental Rights Program. The audit disclosed that $491,277 is allowable and $39,409 is unallowable. For fiscal year (FY) 1999-2000, the county was paid $118,835 by the State. The audit disclosed that $108,978 is allowable. The amount paid in excess of allowable costs claimed, totaling $9,857, should be returned to the State. For FY 2000-01, the county was not reimbursed by the State. The audit disclosed that $189,847 ($190,847 in costs less a $1,000 penalty for filing late) is allowable. This amount will be paid by the State based on available appropriations. For FY 2001-02, the county was not reimbursed by the State. The audit disclosed that $192,452 is allowable. This amount will be paid by the State based on available appropriations. Views of The SCO issued a draft audit report on March 30, 2004. Vicki Crow, Responsible Fresno County Auditor-Controller, responded by letter dated April 26, 2004, agreeing with the audit results. The county’s response is included Officials as an attachment to this final audit report. Steve Westly • California State Controller 2 Fresno County Prisoner Parental Rights Program Restricted Use This report is solely for the information and use of Fresno County, 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 report, which is a matter of public record. Original Signed By: JEFFREY V. BROWNFIELD Chief, Division of Audits Steve Westly • California State Controller 3 Fresno County Prisoner Parental Rights Program Schedule 1— Summary of Program Costs July 1, 1999, through June 30, 2002 Actual Costs Allowable Audit Cost Elements Claimed per Audit Adjustments Reference 1 July 1, 1999, through June 30, 2000 Salaries $ — $ — $ — Benefits — — — Services and supplies 118,835 108,978 (9,857) Finding 3 Total direct costs 118,835 108,978 (9,857) Indirect costs — — — Total costs 118,835 108,978 (9,857) Less late filing penalty — — — Total reimbursable costs $ 118,835 108,978 $ (9,857) Less amount paid by the State (118,835) Allowable costs claimed in excess of (less than) amount paid $ (9,857) July 1, 2000, through June 30, 2001 Salaries $ 35,930 $ 29,882 $ (6,048) Finding 1 Benefits 12,371 8,914 (3,457) Finding 2 Services and supplies 147,805 144,680 (3,125) Finding 3 Total direct costs 196,106 183,476 (12,630) Indirect costs 9,177 7,371 (1,806) Findings 1, 2 Total costs 205,283 190,847 (14,436) Less late filing penalty (1,000) (1,000) — Total reimbursable costs $ 204,283 189,847 $ (14,436) Less amount paid by the State — Allowable costs claimed in excess of (less than) amount paid $ 189,847 July 1, 2001, through June 30, 2002 Salaries $ 22,359 $ 18,813 $ (3,546) Finding 1 Benefits 7,743 9,920 2,177 Finding 2 Services and supplies 172,048 158,547 (13,501) Finding 3 Total direct costs 202,150 187,280 (14,870) Indirect costs 5,418 5,172 (246) Findings 1, 2 Total costs 207,568 192,452 (15,116) Less late filing penalty — — — Total reimbursable costs $ 207,568 192,452 $ (15,116) Less amount paid by the State — Allowable costs claimed in excess of (less than) amount paid $ 192,452 Steve Westly • California State Controller 4 Fresno County Prisoner Parental Rights Program Schedule 1 (continued) Actual Costs Allowable Audit Cost Elements Claimed per Audit Adjustments Reference 1 Summary: July 1, 1999, through June 30, 2002 Salaries $ 58,289 $ 48,695 $ (9,594) Finding 1 Benefits 20,114 18,834 (1,280) Finding 2 Services and supplies 438,688 412,205 (26,483) Finding 3 Total direct costs 517,091 479,734 (37,357) Indirect costs 14,595 12,543 (2,052) Findings 1, 2 Total costs 531,686 492,277 (39,409) Less late filing penalty (1,000) (1,000) — Total reimbursable costs $ 530,686 491,277 $ (39,409) Less amount paid by the State (118,835) Allowable costs claimed in excess of (less than) amount paid $ 372,442 _________________________ 1 See the Findings and Recommendations section. Steve Westly • California State Controller 5 Fresno County Prisoner Parental Rights Program Findings and Recommendations FINDING 1— For FY 2000-01 and FY 2001-02, the county claimed reimbursement for time spent by Sheriff’s deputies in transporting prisoners who were not Ineligible salary costs part of the mandate. Sheriff's deputies routinely transported state prison inmates to and from the county jail and court facilities. Some of these inmates were transported for the purpose of attending court proceedings related to the Prisoner Parental Rights mandate, while the majority of prison inmates were transported for other purposes not related to the mandate. The Sheriff’s deputies sometimes spent additional time waiting to transport a group of prisoners who were not involved in the mandated program, but charged this additional time to the mandate. Parameters and Guidelines for the Prisoner Parental Rights Program specifies that only actual increased costs incurred in the performance of the mandated activities and supported by appropriate documentation are reimbursable. A summary of the adjustment to salaries and related indirect costs is as follows. Fiscal Year 1999-2000 2000-01 2001-02 Total Salaries $ — $ (6,048) $ (3,546) $ (9,594) Indirect costs — (1,149) (638) (1,787) Audit adjustment $ — $ (7,197) $ (4,184) $ (11,381) Recommendation The county should ensure that all costs claimed are eligible increased costs incurred as a result of the mandate, and are supported by its accounting records. FINDING 2— For FY 2000-01 and FY 2001-02, the county claimed fringe benefit costs for Sheriff’s deputies based on estimated benefit rates rather than on Unsupported fringe actual costs incurred. benefit costs Parameters and Guidelines for the mandate specifies that only actual increased costs incurred in the performance of the mandated activities and supported by appropriate documentation are reimbursable. A summary of the adjustment to benefits and related indirect costs is as follows. Fiscal Year 1999-2000 2000-01 2001-02 Total Benefits $ — $ (3,457) $ 2,177 $ (1,280) Indirect costs — (657) 392 (265) Audit adjustment $ — $ (4,114) $ 2,569 $ (1,545) Steve Westly • California State Controller 6 Fresno County Prisoner Parental Rights Program Recommendation The county should ensure that all costs claimed are eligible increased costs incurred as a result of the mandate, and are supported by its accounting records. FINDING 3— The county claimed services and supplies costs for the Sheriff’s Department that were unsupported. Unsupported services and supplies costs For FY 2000-01 and FY 2001-02, the county claimed the full cost of the Sheriff’s Department’s vans and buses used to transport prisoners, even though the vehicles were used for some non-mandate purposes. For FY 1999-2000 through FY 2001-02, the county claimed jail housing costs using estimated daily rates because actual costs and rates were not available at the time. Parameters and Guidelines for the mandate specifies that only actual increased costs incurred in the performance of the mandated activities and supported by appropriate documentation are reimbursable. A summary of the adjustment to services and supplies costs is as follows. Fiscal Year 1999-2000 2000-01 2001-02 Total Services and supplies: Vehicle usage costs $ — $ (10,255) $ (22,548) $ (32,803) Jail housing costs (9,857) 7,130 9,047 6,320 Audit adjustment $ (9,857) $ (3,125) $ (13,501) $ (26,483) Recommendation The county should ensure that all costs claimed are eligible increased costs incurred as a result of the mandate, and are supported by its accounting records. In its response, the county requested that the $9,857 overpaid by the state Adjustment to for its FY 1999-2000 claim be used to offset the underpaid amounts for over/underpaid its FY 2000-01 and FY 2001-02 claims. amounts SCO’s Comment Each year is funded by the Legislature through separate appropriations. Therefore, the $9,857 overpayment for FY 1999-2000 cannot be used to offset FY 2000-01 and FY 2001-02 underpayments. Steve Westly • California State Controller 7 Fresno County Prisoner Parental Rights Program Attachment— County’s Response to Draft Audit Report Steve Westly • California State Controller FFrreessnnoo CCoouunnttyy PPrriissoonneerr PPaarreennttaall RRiigghhttss PPrrooggrraamm SStteevvee WWeessttllyy •• CCaalliiffoorrnniiaa SSttaattee CCoonnttrroolllleerr State Controller’s Office Division of Audits Post Office Box 942850 Sacramento, California 94250-5874 http://www.sco.ca.gov S04-MCC-003