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.

Annual Follow-Up Agency Response From October 2015

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

  • Completion Date: July 2014

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented


Annual Follow-Up Agency Response From October 2014

The status of this recommendation is unchanged.

  • Estimated Completion Date: 2/2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


1-Year 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.

  • Completion Date: July 2014
  • Response Date: August 2014

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

  • Auditee did not substantiate its claim of full implementation

6-Month 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.

  • Estimated Completion Date: March 31, 2014
  • Response Date: December 2013

California State Auditor's Assessment of 6-Month Status: No Action Taken


60-Day 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.

  • Estimated Completion Date: March 31, 2014
  • Response Date: August 2013

California State Auditor's Assessment of 60-Day Status: No Action Taken


All Recommendations in 2012-111

Agency responses received are posted verbatim.