Report I2015-1 All Recommendation Responses

Report I2015-1: Investigations of Improper Activities by State Agencies and Employees (Release Date: August 2015)

Case Number I2014-1398

Recommendation #1 To: Water Resources, Department of

Train the division chief, maintenance manager, administrative manager, and business services supervisor regarding the proper procedures for disposing of state-owned surplus property and for handling recycling proceeds.

Agency Response*

Water Resources provided us with attendance logs verifying that the individuals we recommended to take the training actually attended the training.

  • Response Date: December 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Water Resources stated that it held seven separate training sessions with more than 40 of its personnel, including division and field division chiefs, supervisors, managers, and administrative and business services staff to ensure that they a thorough and consistent understanding of the proper procedures for disposing surplus property, separating high-value items for recycling, and handling recycling proceeds. We have requested confirmation that the individuals for whom we recommended the training actually attended it.

  • Response Date: November 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1398

Recommendation #2 To: Water Resources, Department of

Establish a policy requiring valuable surplus property that will be recycled to be set apart and separately weighed to maximize the recycling proceeds.

Agency Response*

Water Resources issued a new instruction in October 2015 that requires staff to separate high-value items, such as non-ferrous metals, to maximize recycling proceeds and to take photos of the recyclable scrap metal material.

  • Response Date: November 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-1398

Recommendation #3 To: Water Resources, Department of

Develop an internal control process to ensure that each field division properly documents, tracks, safeguards, and promptly deposits all checks received into Water Resources' accounts.

Agency Response*

Water Resources reported in December 2015 that it relied on previously established procedures for processing cash and checks in its Enterprise Process Guide, Department Administrative Manual, and the State Administrative Manual. After we reviewed the applicable procedures, we requested that Water Resources revise its Department Administrative Manual to include language found in the State Administrative Manual that prohibits checks to remain undeposited for more than five working days. Water Resources reported in February 2016 that it had made the suggested changes.

  • Response Date: February 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Water Resources issued a new instruction in October 2015, which aims to establish procedures for properly disposing state-owned surplus property. However, the instruction lacks internal controls to ensure the tracking, safeguarding, and prompt depositing of all checks received by its field divisions.

  • Response Date: November 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1440

Recommendation #4 To: Transportation, Department of

To remedy the effects of the improper governmental activity substantiated in this report and to prevent it from recurring, Caltrans should continue its efforts to recover the undercharged rent from the telecommunications companies.

Agency Response*

Caltrans reported that several telecommunications companies contested its efforts to recover the undercharged rent by citing conflicts with the master license agreement signed by Caltrans and each telecommunications company. Specifically, they cited that the master license agreement remains in effect for 25 years if all extensions to the agreement are exercised. In addition, the annual increase in rental rates is set at 3.5 percent and no other increases were applicable until 2012. Further, the base rental rate could be renegotiated by mutual agreement only in 2012 to reflect the fair market value. Finally, the master license agreement requires Caltrans to notify the telecommunications companies in writing about any rental rate increases. However, in 2014 and 2015 Caltrans only notified the telecommunications companies of the rental rate increases by email or telephone. Consequently, Caltrans stated that it is revising the master license agreement to reflect the appropriate rental rate increases and other issues, and Caltrans stated that it will ensure that it follows appropriate notification procedures.

  • Response Date: April 2017

California State Auditor's Assessment of Status: Resolved


Agency Response*

Caltrans reported that several telecommunications companies contested its efforts to recover the undercharged rent by citing conflicts with the master license agreement signed by Caltrans and each telecommunications company. Specifically, they cited that the master license agreement remains in effect for 25 years if all extensions to the agreement are exercised. In addition, the annual increase in rental rates is set at 3.5 percent and no other increases were applicable until 2012. Further, the base rental rate could be renegotiated by mutual agreement only in 2012 to reflect the fair market value. Finally, the master license agreement requires Caltrans to notify the telecommunications companies in writing about any rental rate increases. However, in 2014 and 2015 Caltrans only notified the telecommunications companies of the rental rate increases by email or telephone. Consequently, Caltrans stated that it is revising the master license agreement to reflect the appropriate rental rate increases and other issues, and Caltrans stated that it will ensure that it follows appropriate notification procedures.

  • Response Date: April 2017

California State Auditor's Assessment of Status: Resolved


Agency Response*

Caltrans reported that it has confirmed that the correct fair market rental rates were applied and stated that it has sent letters to all the telecommunications companies requesting payment for undercharged rent. Consequently, Caltrans stated that 35 telecommunications companies have paid their outstanding balances. In addition, Caltrans stated that it received approximately $500,000 from the telecommunications companies and that it is continuing its efforts to recover any remaining undercharged rent.

  • Response Date: October 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported that it has continued its efforts to recover the undercharged rent from the telecommunications companies. Specifically, it sent payment notices to the 30 accounts that have outstanding balances. However, Caltrans stated that its legal division must confirm that the correct fair market rental rates were applied.

  • Response Date: July 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported that it is continuing its efforts to recover the undercharged rent from the telecommunications companies. In particular, Caltrans stated that it has received full payment of the outstanding balances for 29 of the accounts and that it is continuing to recover the undercharged rent from the remaining accounts. Caltrans reported that next it will send these accounts "pay or quit" notices.

  • Response Date: June 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported it is continuing its efforts to recover the undercharged rent from the telecommunications companies. In particular, Caltrans stated that it has received full payment of the outstanding balances from about 10 of the companies. It also reported that within the next few weeks, it expects to receiving full payment from about 12 companies. For the remaining accounts, it is continuing its efforts to collect the undercharged rent.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported that by October 31, 2015, it plans to notify each of the affected telecommunications companies regarding how much undercharged rent is owed.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Pending


Case Number I2014-1440

Recommendation #5 To: Transportation, Department of

To remedy the effects of the improper governmental activity substantiated in this report and to prevent it from recurring, Caltrans should ensure that accounting records accurately reflect the funds received and owed to Caltrans from the telecommunications companies.

Agency Response*

Caltrans reported that it completed the reconciliation of the accounting records to accurately reflect the proper payments received and owed. In addition, Caltrans stated that it will continue to monitor the accounting records to ensure their accuracy.

  • Response Date: October 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Caltrans reported that is reconciling about 22 accounts as it had previously miscounted the number of accounts with outstanding balances. It again stated that many of these remaining accounts show a credit balance.

  • Response Date: July 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported it is still reconciling about 14 accounts. It stated that many of these remaining accounts show a credit balance.

  • Response Date: June 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported that it has reconciled 85 percent of the accounts to ensure that they accurately reflect the correct billing and payment amounts for the telecommunications companies.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Caltrans reported that it updated its internal property management system so that the accounting records accurately reflect the correct amounts owed by each telecommunications company that Caltrans should have billed to them. In addition, Caltrans stated that the accounting records already accurately reflect the funds received from each telecommunications company. However, Caltrans has not yet conducted a reconciliation to ensure that the correct amounts have been billed to the telecommunications companies and paid by them.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1440

Recommendation #6 To: Transportation, Department of

To remedy the effects of the improper governmental activity substantiated in this report and to prevent it from recurring, Caltrans should establish a process and train the two District 4 right-of-way agents to ensure that they consistently adjust rental rates in accordance with license provisions. The process should include a method to calculate and notify each telecommunications company of its annual rental rate before the payment is due on July 1 of each year.

Agency Response*

Caltrans reported that it provided training to the two District 4 right-of-way agents. The training covered when to adjust rental rates, how to calculate the rental rates, and how to communicate with telecommunications companies regarding the rent owed to Caltrans.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-1440

Recommendation #7 To: Transportation, Department of

To remedy the effects of the improper governmental activity substantiated in this report and to prevent it from recurring, Caltrans should provide sufficient training to the supervisor in District 4 to ensure that he has a necessary understanding of the license provisions and process so he can provide adequate oversight to the program's right-of-way agents.

Agency Response*

Caltrans reported that in September 2015 the chief of its Office of Real Property Services and two senior right-of-way agents provided the recommended training to the District 4 supervisor.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2012-1655

Recommendation #8 To: Transportation, Department of

Take the appropriate disciplinary action to address Supervisor A's neglect of duty.

Agency Response*

In August 2015 Supervisor A retired, and Caltrans placed in his personnel file a letter acknowledging his retirement during the investigation. Similarly, in July 2015 Caltrans placed in Employee 1's personnel file a letter acknowledging his retirement that month during the investigation.

  • Response Date: November 2015

California State Auditor's Assessment of Status: Resolved


Case Number I2012-1655

Recommendation #9 To: Transportation, Department of

Provide appropriate counseling and training to the district staff management involved so that they are aware of the proper procedures of maintaining daily reports and recording, reviewing, and approving accurate time sheets.

Agency Response*

Caltrans stated that the district division chief of construction held a meeting with senior engineers in July 2015 to remind them of the requirement for resident engineers to submit daily reports, in accordance with the Caltrans' construction manual. The district division chief has ensured that staff have been submitting reports regularly.

  • Response Date: February 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Caltrans provided documentation to support that time sheet submission has improved since the district director issued a memorandum in June 2015 regarding the timely submission and approval of time sheets. In addition, the district implemented mandatory weekly submission of daily activity reports from all construction resident engineers to senior engineers. District staff report compliance or noncompliance to district management.

  • Response Date: November 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1011

Recommendation #10 To: Correctional Health Care Services, California

To recoup the payment and leave accumulations to which its employees were not entitled, Corrections and Correctional Health Care should reduce the accumulated leave balances of Employee A by 886 hours. If his accumulated leave balances are not sufficient, offset any remaining hours against future accumulations of leave.

Agency Response*

Correctional Health Care Services reported that it will defer to Corrections the recoupment of excess compensation and leave adjustments for Employee A and will collaborate with Corrections as needed.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Resolved


Case Number I2014-1011

Recommendation #11 To: Corrections and Rehabilitation, Department of

To recoup the payment and leave accumulations to which its employees were not entitled, Corrections and Correctional Health Care should reduce the accumulated leave balances of Employee A by 886 hours. If his accumulated leave balances are not sufficient, offset any remaining hours against future accumulations of leave.

Agency Response*

Corrections reported that in November 2016 Employee A filed a lawsuit with the California Department of Human Resources. As a result, Corrections put on hold its collection efforts pending the outcome of the lawsuit.

  • Response Date: November 2017

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it voided 803 hours of compensating time off to account for the bulk of the leave to which Employee A was not entitled. In addition, Corrections stated that it intends to reduce other leave balances to account for the remaining leave to which the employee was not entitled. Consequently, Corrections stated that it sent an accounts receivable to be established by the State Controller's Office to begin the process to reduce Employee A's leave balances.

  • Response Date: October 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it is moving forward with the collection process for Employee A.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it denied Employee A's grievance and stated that its human resources office is awaiting notification of the denial to Employee A before its begins the collection process.

  • Response Date: March 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that Employee A filed a grievance in November 2015 regarding having his leave balances reduced; thus, its effort to reduce Employee A's leave balances are on hold until the grievance is resolved.

  • Response Date: December 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that in October 2015 Prison 1 issued to Employee A a notice of accounts receivable. Corrections stated that Employee A had 15 days to respond before the prison establishes an accounts receivable with the State Controller's Office to recover the overpayment.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it is reviewing Employee A's time sheets to determine if it needs to make adjustments to his leave balances. It intends to complete its review by November 30, 2015.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1011

Recommendation #12 To: Correctional Health Care Services, California

To recoup the payment and leave accumulations to which its employees were not entitled, Corrections and Correctional Health Care should work with the California Public Employees' Retirement System and attempt to recoup the $22,766 in CTO leave hours Employee B—who retired in April 2015—cashed out but to which he was not entitled.

Agency Response*

Correctional Health Care reported that it will defer to Corrections the recoupment of excess compensation and leave adjustments for Employee B and will collaborate with Corrections as needed.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Resolved


Case Number I2014-1011

Recommendation #13 To: Corrections and Rehabilitation, Department of

To recoup the payment and leave accumulations to which its employees were not entitled, Corrections and Correctional Health Care should work with the California Public Employees' Retirement System and attempt to recoup the $22,766 in CTO leave hours Employee B—who retired in April 2015—cashed out but to which he was not entitled.

Agency Response*

Corrections reported that in November 2016 Employee A filed a lawsuit with the California Department of Human Resources that included Employee B. Although Corrections stated that it had established an accounts receivable for Employee B, Corrections put its collection efforts on hold pending the outcome of the lawsuit.

  • Response Date: November 2017

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that its office of labor relations denied Employee B's grievance. Consequently, it established an accounts receivable for the overpayment. In addition, Corrections stated although it notified Employee B of the need for repayment, the employee made no effort to arrange for repayment. Thus, Corrections stated that it will start the collection process through the Internal Revenue Service.

  • Response Date: October 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it is moving forward to collect the overpayment from Employee B.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it had not received a response to the grievance filed on behalf of Employee B.

  • Response Date: March 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that in November 2015 Employee A filed a grievance on behalf of Employee B. Thus, Corrections stated that its collection efforts were on hold.

  • Response Date: January 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that in October 2015 Prison 1 issued to Employee B a notice of accounts receivable. Corrections stated that since Employee B had retired previously from state service, its accounting office would send Employee B three additional notices, once every 30 days. If Employee B does not respond to the notices, Corrections stated that it would work with the Franchise Tax Board or a credit bureau to assist with seeking payment from him.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it is reviewing Employee B's time sheets to determine if it needs to make adjustments to his CTO leave hours. It intends to complete its review by November 30, 2015.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1011

Recommendation #14 To: Correctional Health Care Services, California

To recoup the payment and leave accumulations to which its employees were not entitled, Corrections and Correctional Health Care should reduce the accumulated leave balances of Employee C by 261 hours. If his accumulated leave balances are not sufficient, offset any remaining hours against future accumulations of leave.

Agency Response*

Correctional Health Care Services reported that it will defer to Corrections the recoupment of excess compensation and leave adjustments for Employee C and will collaborate with Corrections as needed.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Resolved


Case Number I2014-1011

Recommendation #15 To: Corrections and Rehabilitation, Department of

To recoup the payment and leave accumulations to which its employees were not entitled, Corrections and Correctional Health Care should reduce the accumulated leave balances of Employee C by 261 hours. If his accumulated leave balances are not sufficient, offset any remaining hours against future accumulations of leave.

Agency Response*

Corrections reported that in March 2016 Prison 2 granted Employee C's grievance. Therefore, the accounts receivable that Corrections established has been rescinded and Employee C does not have to reduce his leave balances or repay any overpayment.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Resolved


Agency Response*

Corrections reported that in October 2015 Prison 1 issued to Employee C a notice of accounts receivable. Employee C filed a grievance in response to the notice. Thus, Corrections stated that its effort to reduce his leave balances or to recover any overpayment is on hold.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it is reviewing Employee C's time sheets to determine if it needs to make adjustments to his leave balances. It intends to complete its review by November 30, 2015.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1011

Recommendation #16 To: Correctional Health Care Services, California

Corrections and Correctional Health Care should develop a policy requiring all labor relations analysts, including the labor relations analyst at Prison 1, to document any communications from the Office of Labor Relations at Corrections that affect employee compensation.

Agency Response*

Correctional Health Care reported that the Compliance and Oversight Unit at its headquarters would be fully staffed effective October 19, 2015. As stated in Correctional Health Care's previous response, the unit will ensure that policies are uniformly applied, effective, and comply with all relevant bargaining agreements, laws, rules, and regulations. Additionally, it will ensure that communications from the Office of Labor Relations at Corrections that affect employee compensation will be appropriately documented.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Resolved


Agency Response*

Correctional Health Care reported that it is creating a new Compliance and Oversight Unit with its Human Resources. The unit will ensure that human resources policies, procedures, and guidelines are uniformly applied statewide, operationally effective, and comply with applicable bargaining units, its human resources' standards, and state laws, rules, and regulations.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Pending


Case Number I2014-1011

Recommendation #17 To: Corrections and Rehabilitation, Department of

Corrections and Correctional Health Care should develop a policy requiring all labor relations analysts, including the labor relations analyst at Prison 1, to document any communications from the Office of Labor Relations at Corrections that affect employee compensation.

Agency Response*

Corrections reported that in August 2015 it issued to all of its labor relations analysts and staff a policy memo that discussed the need to verify existing policies and provisions prior to discussions with and dissemination of information to stakeholders when dealing with traditionally sensitive areas such as pay, overtime, regular days off, and benefits. It further stressed that prior to such discussions, labor relations analysts should vet all correspondence through the Office of Labor Relations at headquarters.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-1011

Recommendation #18 To: Correctional Health Care Services, California

Corrections and Correctional Health Care should run a query of exempt positions related to the chief psychologist classification, such as clinical psychologists and senior 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.

Agency Response*

Correctional Health Care reported that by October 31, 2016, it sent 228 letters notifying employees of net overpayments totaling $398,162. In addition, Correctional Health Care identified a net 2,718 hours of compensating time off that was erroneously earned by employees. During November 2016, Correctional Health Care submitted the results of its reviews and supporting documentation to each affected employee's personnel office within Corrections to initiate the collection process.

  • Response Date: December 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Correctional Health Care reported in February 2016 that it had identified 1,198 exempt employees for inclusion in its review of the pay periods from January 2013 through June 2015. The review determined if clinical providers were compensated appropriately for on-call, standby, or call-back hours earned. In November 2015 Correctional Health Care stated that it had concluded its review of the 1,198 exempt employees. The review uncovered overpayments that would result in 32 accounts receivable as well as overreporting and underreporting of compensated time off affecting 106 employees. Correctional Health Care reported that it is issuing formal notifications to the affected employees prior to Corrections making adjustments to leave balances and establishing accounts receivable. In addition, Correctional Health Care stated that there are no pending negotiations with unions, but stated that its labor relations unit has advised the largest relevant union of the steps it will take regarding the overpayments and underpayments.

  • Response Date: November 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Correctional Health Care reported that as of December 31, 2015, the Compliance and Oversight Unit (unit) in Human Resources completed its initial review of all 35 institutions involving approximately 3,600 employees from all affected bargaining units. In addition, Correctional Health Care stated that the unit now would focus on the approximately 750 employees who annually claimed on-call, standby, or call-back pay.

  • Response Date: January 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Correctional Health Care ran a query of classifications to audit and is conducting a statewide review of all impacted classifications. It plans to report this information quarterly. Upon completion of the audit by Correctional Health Care, Corrections will establish accounts receivables as appropriate. Corrections anticipates completion by June 30, 2017.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Correctional Health Care reported that at the three institutions, it is conducting reviews of on-call and call-back assignments.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1011

Recommendation #19 To: Corrections and Rehabilitation, Department of

Corrections and Correctional Health Care should run a query of exempt positions related to the chief psychologist classification, such as clinical psychologists and senior 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.

Agency Response*

Corrections provided no new information relevant to this recommendation.

  • Response Date: November 2017

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that Correctional Health Care had identifed and completed its review of 1,198 exempt employees for pay periods January 2013 through June 2015. In addition, it stated that Correctional Health Care is issuing formal notification letters to the affected employees regarding accounts receivable and changes to compensated time off. Once the notifications are sent, Corrections will make adjustments to leave balances and establish accounts receivable as appropriate.

  • Response Date: October 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that Correctional Health Care had completed its initial review of all 35 institutions involving approximately 3,600 employees and that Correctional Health Care now would focus its review on the approximately 750 employees who annually claimed on-call, standby, or call-back pay. Once Correctional Health Care completes this review, Corrections stated that it would establish accounts receivables as appropriate.

  • Response Date: January 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that Correctional Health Care ran a query of classifications to audit and is conducting a statewide review of all impacted classifications. Correctional Health Care will report this information on a quarterly basis. Upon completion of the audit by Correctional Health Care, Corrections will establish accounts receivables as appropriate. Corrections anticipates completion by June 30, 2017.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Corrections reported that it would coordinate with Correctional Health Care to determine if employees were improperly credited or paid for on-call or call-back assignments. In addition, Corrections stated that it would take the appropriate corrective actions, including seeking repayment or reducing leave balances.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Pending


Case Number I2015-0384

Recommendation #20 To: Veterans Affairs, Department of

To recoup some of the wasted funds the Chula Vista Veterans Home spent on purchasing the boom lift, the Department of Veterans Affairs should determine the boom lift's present-day value and consider either selling or auctioning it.

Agency Response*

The Department of Veterans Affairs (Veterans Affairs) reported in September 2015 that it considered selling or auctioning the boom lift. Instead, Veterans Affairs opted to transfer the lift from the Chula Vista Veterans Home (Chula Vista home) to the Yountville Veterans Home (Yountville home) because the Yountville home demonstrated a need for the lift. The Yountville home reported to Veterans Affairs that using the lift from the Chula Vista home would address 85 percent of its needs and would save approximately $9,000 from its contracting costs. Veterans Affairs directed staff at the Yountville home to monitor the boom lift's actual usage. If the usage does not achieve sufficient cost savings, Veterans Affairs stated that it again would consider selling or auctioning the boom lift.

  • Response Date: September 2015

California State Auditor's Assessment of Status: Resolved


Case Number I2012-2137

Recommendation #21 To: Employment Development Department

To ensure state departments that are considering whether to hire the accounting officer are aware of her improper activities, including using state equipment and materials to type and print a large volume of personal documents, and using her position to improperly access the department's database, the Employment Development Department should determine what documentation, if any, it should place in the accounting officer's personnel file to indicate that she resigned while under investigation.

Agency Response*

The Employment Development Department reported in June 2015 that it placed a memorandum in the accounting officer's personnel file stating that it served her with a notice of dismissal in December 2014 and that she resigned from state service prior to its effective date.

  • Response Date: June 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2012-1250

Recommendation #22 To: Industrial Relations, Department of

To alert future state employers to the supervisor's improper activities, Industrial Relations should determine what documentation, if any, it should place in the supervisor's personnel file indicating that he resigned while under investigation. The improper activities substantiated by this investigation include misusing state-compensated time and state email account to coordinate the sale of copied movies and music, sending sexually suggestive emails during his work hours, and misusing a state printer to print materials for a co-worker's fitness studio.

Agency Response*

On October 31, 2016, Industrial Relations placed in the supervisor's personnel file a memorandum noting that he resigned while under investigation for the misuse of state time and equipment.

  • Response Date: October 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Industrial Relations reported that in cases of serious misconduct, it could place in an employee's personnel file a notice that the employee resigned while under investigation. However, Industrial relations also stated that it must weigh this option against an employee's collective bargaining rights and civil service rights. Consequently, in this instance, Industrial Relations stated that it would not place any documentation in the supervisor's personnel file indicating that he resigned while under investigation.

  • Response Date: May 2015

California State Auditor's Assessment of Status: Will Not Implement


Case Number I2013-1902

Recommendation #23 To: Forestry and Fire Protection, Department of

Take disciplinary action against the senior personnel specialist to ensure that she fully and accurately accounts for her time.

Agency Response*

The Department of Forestry and Fire Protection (Cal Fire) reported in August 2015 that it served the senior personnel specialist with a five-day suspension. After a settlement conference, Cal Fire and the senior personnel specialist agreed to reduce the suspension from five days to four days.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2013-1902

Recommendation #24 To: Forestry and Fire Protection, Department of

Recover $848 for the 32 hours of leave the senior personnel specialist did not use for being late during the period of investigation.

Agency Response*

The Department of Forestry and Fire Protection (Cal Fire) reported in October 2015 that it set up an accounts receivable to collect $848 from the senior personnel specialist.

  • Response Date: October 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Department of Forestry and Fire Protection (Cal Fire) reported in August 2015 that it was in the process of collecting the amount and anticipated completion in September 2015.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Pending


Case Number I2013-1902

Recommendation #25 To: Forestry and Fire Protection, Department of

Require the supervisor to provide the senior personnel specialist with a formal annual performance evaluation so that both parties understand office expectations for arriving to work on time and reporting absences and tardiness.

Agency Response*

The Department of Forestry and Fire Protection (Cal Fire) reported in August 2015 that the senior personnel specialist transferred from the unit but remained a CalFire employee. Her new unit supervisor subsequently discussed and documented his expectations including, but not limited to, call-in procedures and start and end times, and he documented the senior personnel specialist's acknowledgement. Finally, the new supervisor will complete a formal performance evaluation for the senior personnel specialist and all other employees in the unit.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2013-1902

Recommendation #26 To: Forestry and Fire Protection, Department of

Take disciplinary action against the supervisor to ensure that he properly supervises his employees and ensures they are fully and accurately accounting for their time.

Agency Response*

The Department of Forestry and Fire Protection (Cal Fire) reported that it issued a letter of warning to the supervisor in July 2015.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2013-0082

Recommendation #27 To: Employment Development Department

The Employment Development Department should pursue appropriate disciplinary action against the employee to ensure that she discontinues misusing public resources.

Agency Response*

The Employment Development Department reported in February 2016 that it issued a corrective action memorandum to the employee in May 2015. It had erroneously omitted this information from its previous response.

  • Response Date: February 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Employment Development Department reported in July 2015 that it was reviewing the matter and would take appropriate administrative action.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Pending


Case Number I2013-0440

Recommendation #28 To: Correctional Health Care Services, California

Correctional Health Care should develop a process to ensure that it uses master agreements to procure only goods and services that are within the scope of those agreements.

Agency Response*

Correctional Health Care provided a copy of its CALNET process flow for professional services. The process flow includes a statement that it will ask the Department of Technology to perform a courtesy review of its proposed procurements prior to execution of contracts.

  • Response Date: May 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Correctional Health Care provided additional information regarding its efforts to ensure staff are appropriately trained regarding CALNET 3, but it did not provide any information regarding how it will ensure staff use CALNET 2 appropriately.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

Correctional Health Care stated that it has trained its staff regarding the specifications of master agreement CALNET 3, which will replace CALNET 2. Correctional Health Care acknowledged that it continues to use CALNET 2, but did not describe any new process it has developed to ensure that it only uses CALNET 2 for goods or services that are within the scope of the agreement.

  • Response Date: January 2016

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2013-0440

Recommendation #29 To: Correctional Health Care Services, California

Correctional Health Care should ensure that it or its contractor submits to the Department of Technology (Technology) all projects that require Technology's review.

Agency Response*

Correctional Health Care provided a copy of its CALNET process flow for professional services. The process flow included a statement that Correctional Health Care will ask Technology to perform a courtesy review of its proposed procurements prior to execution of contracts.

  • Response Date: May 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Correctional Health Care stated that its staff follow Technology's process, which requires Correctional Health Care to sign certain pricing proposals before the contractor submits them to Technology for approval. It further stated that it does not authorize work to start until the pricing proposals are signed by Correctional Health Care, the contractor, and Technology.

Although Correctional Health Care's assertion that it follows this process is a positive sign, it has not provided to us any information to explain how it changed its former practice that was highlighted in our report.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Pending


Agency Response*

Correctional Health Care stated that the contractor is responsible for submitting certain pricing to Technology for review. Correctional Health Care's responsibility is to review the services and pricing in the statement of work, but it then has no involvement in the relay of information to Technology. It also stated that Technology is responsible for the contractor's compliance with the contract.

  • Response Date: January 2016

California State Auditor's Assessment of Status: No Action Taken


Case Number I2013-0440

Recommendation #30 To: Correctional Health Care Services, California

Correctional Health Care should ensure that it has received all of the goods and services for which it already paid the contractor, or for which it has been invoiced to pay by the contractor.

Agency Response*

Correctional Health Care reported that the contractor submitted all supporting documentation related to its work performed. For goods procured by the contractor, Correctional Health Care staff reviewed and validated the deliverables and has maintained supporting documentation in the contract file.

  • Response Date: April 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Correctional Health Care reported that it has outstanding invoices from the contractor that it has not paid because it has been unable to verify that the goods and services have been received. It stated that it is awaiting additional documentation from the contractor.

  • Response Date: January 2016

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2013-0440

Recommendation #31 To: Correctional Health Care Services, California

Correctional Health Care should provide appropriate counseling and training to the staff and officials involved in project procurements so they are aware of the proper procedures for contracting and for reviewing and approving invoices, including ensuring that all goods and services have been received prior to paying contractors.

Agency Response*

Correctional Health Care provided documentation to support that it provided the prescribed training to the appropriate staff.

  • Response Date: November 2016

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2013-0440

Recommendation #32 To: Correctional Health Care Services, California

Correctional Health Care should consider whether any disciplinary action is warranted.

Agency Response*

Correctional Health Care stated that it determined additional training was warranted for its staff rather than disciplinary action.

  • Response Date: September 2015

California State Auditor's Assessment of Status: Resolved


Case Number I2012-1250

Recommendation #33 To: Industrial Relations, Department of

To ensure that employees limit their personal use of state resources to minimal and incidental use, Industrial Relations should remind employees of the prohibitions against misusing state resources, including time, email, and office space.

Agency Response*

Industrial Relations reported in June 2015 that it sent email memoranda to all employees reminding them of Industrial Relations' electronic information and communications policies and the prohibited use of state resources for personal purposes.

  • Response Date: June 2015

California State Auditor's Assessment of Status: Fully Implemented


All Recommendations in I2015-1


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