Report I2019-0559 Recommendation 2 Responses
Report I2019-0559: California Prison Industry Authority: It Gave Nearly $1.3 Million in Unlawful Gifts to Other State Agencies and Repeatedly Violated Merit‑Based Employment Principles (Release Date: July 2021)
Case Number I2019-0559
Recommendation #2 To: Prison Industry Authority
CalPIA should work with the Prison Industry Board to establish sufficient controls, such as providing training to executive staff to better understand how CalPIA funds and resources should be used, and implement a more thorough approval process to ensure that CalPIA does not gift funds to other state agencies.
Agency Response From March 2022
In February 2022, CalPIA provided evidence that it held a training with executive staff to instruct them that CalPIA purchases must support the mission, vision, and goals of CalPIA, all of which focus on benefitting incarcerated individuals.
California State Auditor's Assessment of Status: Fully Implemented
Agency Response From January 2022
In January 2022, CalPIA reported that it would update its internal training materials to ensure that executive staff are trained on how CalPIA funds should only be used to benefit or further the purposes of CalPIA. It has agreed to provide us with copies of the new training materials once completed.
California State Auditor's Assessment of Status: Partially Implemented
Agency Response From September 2021
CalPIA reported that it has implemented a new policy for transferring sample products to other agencies. This policy states that the Prison Industry Board will review all sample transfer requests that cost CalPIA more than $5,000 and will determine whether the potential marketing value justifies the cost to CalPIA.
Moreover, CalPIA began training its staff in 2019 on various procurement methods. CalPIA reported that all levels of staff, including executives involved in the procurement process, are required to take this training on an annual basis. We reviewed the training materials and found that the training provided sufficient instruction on how to properly complete the necessary forms for purchases but did not address the factors an employee or executive should consider when determining whether a purchase or service contract is appropriate. We requested that CalPIA notify us when all its executives have completed the recommended training.
California State Auditor's Assessment of Status: Partially Implemented
Agency Response From June 2021
CalPIA stated that it is working with the Prison Industry Board to establish functioning sub-committees of oversight for CalPIA. One of these sub-committees is focused on CalPIA's financial operations to ensure that its financial controls are appropriate and are followed. CalPIA also stated that it plans to train executive staff on the appropriate use of CalPIA funds and resources to prevent it from gifting funds or resources to other state agencies.