Report 2013-130 Recommendation 9 Responses

Report 2013-130: California Public Utilities Commission: It Fails to Adequately Ensure Consumers' Transportation Safety and Does Not Appropriately Collect and Spend Fees From Passenger Carriers (Release Date: June 2014)

Recommendation #9 To: Public Utilities Commission

To ensure that passenger carriers submit accurate fee payments, the commission should require its fiscal staff to implement a process to verify passenger carrier fee payments and associated revenue.

Annual Follow-Up Agency Response From October 2016

An auditor position within the Fiscal Office was approved as part of the FY15-16 budget process to perform audits of self-reported revenue various regulated entities, including transportation carriers. pursuant to the audit protocol and process previously developed. The FY 15-16 budget took effect July 1, 2015 and after completion of the application and selection process, a new auditor was brought onboard October 1, 2016. The new auditor is currently being trained and is expected to begin auditing responsibilities in December 2016.

  • Estimated Completion Date: 12/31/2016

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


Annual Follow-Up Agency Response From October 2016

This is an ongoing process, implementation is underway; CPUC will consider this corrective action fully completed when the first audited claims are turned over to the Collections Unit, TEB or attorneys. MM Update: After hiring difficulties, employee hired 10/1/16 (BCP for position approved 7/1/15). Currently training staff, anticipate to have first audit completed by 12/31/16.

  • Estimated Completion Date: 12/31/2016

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


Annual Follow-Up Agency Response From October 2015

See one-year response.

  • Estimated Completion Date: 11-15-2015

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


1-Year Agency Response

CPUC developed an audit protocol as a means to verify self-reported revenue of passenger carriers submitting user fee payments to the Transportation Account (Fund 0461). Fiscal Office staff in the Cashiering Unit is responsible for conducting audits and reviewing utility financial records against self-assessed user fees calculations, and revenues received. CPUC is documenting this process in its entirety; If revenues are found to be insufficient, the case will turned over to the Collections Unit, the Transportation Enforcement Branch (TEB) or CPUC attorneys for consequential action.

  • Estimated Completion Date: November 2015
  • Response Date: June 2015

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

Although the California Utilities Commission has developed an audit protocol and process to verify passenger carrier fee payments and associated revenue, it has not yet fully implemented this process.


6-Month Agency Response

CPUC has developed an audit protocol as a means to verify self-reported revenue of passenger carriers submitting user fee payments to the Transportation Account (Fund 0461). Fiscal Office staff in the Cashiering Unit will be responsible for conducting audits and reviewing utility financial records against self-assessed user fees calculations, and revenues received. CPUC is documenting this process in its entirety; If revenues are found to be insufficient, the case will turned over to the Collections Unit, the Transportation Enforcement Branch (TEB) or CPUC attorneys for consequential action.

This is an ongoing process, implementation is underway; CPUC will consider this corrective action fully completed when the first audited claims are turned over to the Collections Unit, TEB or attorneys.

  • Estimated Completion Date: July 1, 2015
  • Response Date: December 2014

California State Auditor's Assessment of 6-Month Status: Partially Implemented

The commission developed an audit process and checklist for its fiscal staff to follow to verify passenger carrier fee payments and associated revenue. However, as indicated in its response, the commission has not yet conducted these audits.


60-Day Agency Response

CPUC has developed an audit protocol as a means to verify self-reported revenue of passenger carriers submitting user fee payments to the Transportation Account (Fund 0461). Fiscal Office staff in the Cashiering Unit will be responsible for conducting audits and reviewing utility financial records against self-assessed user fees calculations, and revenues received. CPUC is documenting this process in its entirety; If revenues are found to be insufficient, the case will turned over to the Collections Unit, the Transportation Enforcement Branch (TEB) or CPUC attorneys for consequential action.

  • Estimated Completion Date: November 2014
  • Response Date: August 2014

California State Auditor's Assessment of 60-Day Status: Partially Implemented


All Recommendations in 2013-130

Agency responses received are posted verbatim.


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