Report 2005-123 Recommendation 14 Responses

Report 2005-123: Department of Corporations: It Needs Stronger Oversight of Its Operations and More Efficient Processing of License Applications and Complaints (Release Date: January 2007)

Recommendation #14 To: Corporations, Department of

Corporations should develop a plan to conduct examinations of licensees in accordance with state law and its own internal policy. Further, Corporations should establish clear guidance and response time frames for following up on deficiencies identified in examinations.

1-Year Agency Response

Corporations stated that it has identified the number of licensees that need to be examined based on statutory requirements or internal policy, as well as determined the average hours per exam. Based on this information, Corporations received additional examiner and enforcement positions in the fiscal year 2007-08 budget and requested additional examiner and enforcement positions in the fiscal year 2008-09 budget. Corporations will continue to evaluate current staffing levels to determine whether sufficient staff exists to perform the required exams. If staffing levels are insufficient after staff redirections from other programs, Corporations will pursue additional staffing through the budget process. Corporations also indicated that it developed procedures and a risk-based process to review enforcement actions taken to determine compliance by licensees, to evaluate the enforcement action, and to identify high-risk candidates for follow-up nonroutine examinations. (See 2009-406, p. 36)

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

All Recommendations in 2005-123

Agency responses received after June 2013 are posted verbatim.