Report 2012-042 Recommendation 4 Responses

Report 2012-042: Children's Hospital Program: Fund Disbursements Are Appropriate, but Estimates of Cash Needs Have Been Consistently High (Release Date: July 2012)

Recommendation #4 To: Health Facilities Financing Authority, California

For hospitals with existing projects, the authority should request written confirmation from hospitals that detail when the hospitals will submit disbursal requests for approved funds.

1-Year Agency Response

Hospitals with active grants that have not been fully disbursed are asked to provide written projections of disbursement requests covering four quarters, and to update those projections at least twice a year.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The Authority is developing a system whereby, for each approved grant, hospitals will outline in writing and then regularly confirm estimates of grant disbursement amounts and timelines. In addition, the Authority will maintain a forecasting spreadsheet that aggregates all of the disbursement estimates and use it as a basis for bond funding requests.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

The authority indicates that, upon execution of new grant agreements, it will request that the grantee provide in writing the projections of timing and the amount of disbursement requests. (See 2013-406, p. 90)

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2012-042

Agency responses received after June 2013 are posted verbatim.