Report 2012-111 Recommendation 5 Responses

Report 2012-111: California Department of Public Health: It Needs to Improve Accuracy in Accounting and Charging for Compliance Inspections Designed to Reduce Youth Access to Tobacco and It Could Enhance Its Compliance Inspections (Release Date: June 2013)

Recommendation #5 To: Public Health, Department of

Public Health should amend its recent contract with the city of Los Angeles to correct the rate it charges for a local compliance inspection to reflect its true cost.

Agency Response*

Public Health has used the CORE system and the data from its new time tracking system to determine the true cost per compliance check. This data has revealed that the contracted rate was higher than needed to reimburse Public Health for its true cost per compliance check. Public Health contacted the City of Los Angeles and requested to amend its current contract to reflect the correct rate. However, as the contract was towards the end of the term, the City of Los Angeles chose not to amend the contract. As a result, Public Health will reimburse the City of Los Angeles the difference.

On January 5, 2015, Public Health reimbursed the City of Los Angeles $161,369.98.

Public Health has used the new rate in included language in the current contract to ensure that the total cost of contracted compliance inspections will not exceed Public

  • Response Type†: Annual Follow Up
  • Completion Date: July 2014
  • Response Date: October 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The status of this recommendation is unchanged.

  • Response Type†: Annual Follow Up
  • Estimated Completion Date: 2/2015
  • Response Date: October 2014

California State Auditor's Assessment of Status: Not Fully Implemented


Agency Response*

Public Health has used the data from its new time tracking system to determine the true cost per compliance check. This data has revealed that the contracted rate was higher than needed to reimburse Public Health for its true cost per compliance check. Public Health contacted the City of Los Angeles and requested to amend its current contract to reflect the correct rate. However, due to the fact that the contract was towards the end of the contract, the City of Los Angeles chose not to amend the current contract. As a result, Public Health will reimburse the City of Los Angeles the difference. Public Health will utilize the new rate in the future contract discussions with the City of Los Angeles and will include language in the contract to ensure that the total cost of contracted compliance inspections will not exceed Public Health's expenditures.

  • Response Type†: 1-Year
  • Completion Date: July 2014
  • Response Date: August 2014

California State Auditor's Assessment of Status: Pending

  • Auditee did not substantiate its claim of full implementation

Agency Response*

By March 31, 2014, the Food and Drug Branch (FOB) will use data from its new time tracking system to determine the true cost per compliance check and determine if it should amend the City of Los Angeles contract.

  • Response Type†: 6-Month
  • Estimated Completion Date: March 31, 2014
  • Response Date: December 2013

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


Agency Response*

By March 31, 2014, FDB will use data from its new time tracking system to determine the true cost per compliance check and determine if it should amend the City of Los Angeles contract.

  • Response Type†: 60-Day
  • Estimated Completion Date: March 31, 2014
  • Response Date: August 2013

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


All Recommendations in 2012-111

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.


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