Report 2015-047 Recommendation 10 Responses

Report 2015-047: The State Bar of California: Its Lack of Transparency Has Undermined Its Communications With Decision Makers and Stakeholders (Release Date: May 2016)

Recommendation #10 To: Bar of California, State

To ensure that it accounts appropriately for information technology project costs and their related funding sources, the State Bar should apply its new cost-allocation method to the costs of its Technology Improvement Fund.

Annual Follow-Up Agency Response From October 2018

Staff developed a method for allocating indirect costs to/from information technology projects and building projects, which was reviewed with the Finance & Planning Committee on March 8, 2018 and May 17, 2018. The Final Proposed Budget adopted by the State Bar in February 2018 accurately reflects project accounting that is consistent with this method. A written cost allocation policy and procedures is expected to be finalized by January 2019.

  • Estimated Completion Date: January 2019

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

Although the State Bar says it has applied a cost allocation methodology to its Technology Improvement Fund costs, it has not provided us with a written methodology for allocating IT project costs. The State Bar says it expects to finalize a written policy by January 2019.


Annual Follow-Up Agency Response From August 2018

Staff developed a method for allocating indirect costs to/from information technology projects and building projects, which was reviewed with the Finance & Planning Committee on March 8, 2018 and May 17, 2018. The Final Proposed Budget adopted by the State Bar in February 2018 accurately reflects project accounting that is consistent with this method. A written cost allocation policy and procedures is expected to be finalized by January 2019.

  • Estimated Completion Date: January 2019

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


Annual Follow-Up Agency Response From December 2017

The State Bar is in agreement with the recommendation that a written policy regarding cost allocation for IT projects should be adopted. Cost allocation will vary by project, but a policy requiring the funding source and cost allocation methodology for each project to be identified is consistent with the Bar's commitment to improving the fiscal and operational management of the State Bar, emphasizing integrity, transparency, accountability and excellence. This recommendation will be implemented with the submission of the Bar's final budget in February 2018.

  • Estimated Completion Date: February 2018

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


1-Year Agency Response

The cost allocation methodology has been applied to the costs of the Technology Improvement Fund.

  • Completion Date: March 2017
  • Response Date: May 2017

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

Although the State Bar says it has applied a cost allocation methodology to its Technology Improvement Fund costs, it has not provided us with a written methodology for allocating IT project costs.


6-Month Agency Response

Once completed, the cost allocation methodology will be applied.

  • Estimated Completion Date: February 1, 2017
  • Response Date: November 2016

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


60-Day Agency Response

Once implemented, the cost-allocation method for IT projects will be applied.

  • Estimated Completion Date: 09/30/2016
  • Response Date: July 2016

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


All Recommendations in 2015-047

Agency responses received are posted verbatim.