Report 2016-036 All Recommendation Responses

Report 2016-036: Indian Gaming Special Distribution Fund: The Method Used to Mitigate Casino Impacts Has Changed, and Two Counties' Benefit Committees Did Not Ensure Compliance With State Law When Awarding Grants (Release Date: March 2017)

Recommendation #1 To: Fresno, County of

If the Legislature appropriates funding from the distribution fund for mitigation grants in the future, to comply with state law, the benefit committee for Fresno County should ensure that it obtains sufficient documentation from grant applicants to demonstrate that the requested funding represents the correct proportionate share of the costs attributable to casino impacts.

Annual Follow-Up Agency Response From October 2018

The recommendation has not yet been implemented, but will be implemented in the future, if the Legislature appropriates funding from the distribution fund for mitigation grants in the future. As of today, there has been no indication that the Legislature will appropriate funding from the distribution fund for mitigation grants.

  • Estimated Completion Date: 06/30/2019

California State Auditor's Assessment of Annual Follow-Up Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


1-Year Agency Response

The recommendation has not yet been implemented, but will be implemented in the future, if the Legislature appropriates funding from the distribution fund for mitigation grants in the future. As of today, there has been no indication that the Legislature will appropriate funding from the distribution fund for mitigation grants.

  • Response Date: February 2018

California State Auditor's Assessment of 1-Year Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


6-Month Agency Response

The recommendation has not yet been implemented, but will be implemented in the future, if the Legislature appropriates funding from the distribution fund for mitigation grants in the future.

  • Response Date: August 2017

California State Auditor's Assessment of 6-Month Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


Recommendation #2 To: Fresno, County of

If the Legislature appropriates funding from the distribution fund for mitigation grants in future years, Fresno County's benefit committee should revise its procedures to include specific steps to verify that grantees will place grant funds into interest-bearing accounts when awarding any mitigation grants. These steps should include requiring grantees to report the interest accrued in their quarterly reports and to substantiate those reports with bank statements or other reports of interest earned, and following up with the grantee when the grantee reports no earned interest for the period.

Annual Follow-Up Agency Response From October 2018

The recommendation has not yet been implemented, but will be implemented in the future, if the Legislature appropriates funding from the distribution fund for mitigation grants in the future. As of today, there has been no indication that the Legislature will appropriate funding from the distribution fund for mitigation grants.

  • Estimated Completion Date: 06/30/2019

California State Auditor's Assessment of Annual Follow-Up Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


1-Year Agency Response

The recommendation has not yet been implemented, but will be implemented in the future, if the Legislature appropriates funding from the distribution fund for mitigation grants in the future. As of today, there has been no indication that the Legislature will appropriate funding from the distribution fund for mitigation grants.

  • Response Date: February 2018

California State Auditor's Assessment of 1-Year Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


6-Month Agency Response

The recommendation has not yet been implemented, but will be implemented in the future, if the Legislature appropriates funding from the distribution fund for mitigation grants in the future.

  • Response Date: August 2017

California State Auditor's Assessment of 6-Month Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


Recommendation #3 To: Fresno, County of

Fresno County's benefit committee should develop procedures to ensure it complies with the reform act by collecting all required statements of economic interest in a timely manner, and that it complies with its record retention policy by maintaining those statements for the required period of time.

60-Day Agency Response

Although confirmation was sent in the February 15, 2017 response letter regarding the recommendation's implementation, as the Filing Officer had purchased SouthTech's DisclosureDocs and eDisclosure systems. The system used to manage and maintain Statements of Economic Interests Form (Form 700) information, which is used by both the County of Fresno and the Fair Political Practices Commission. The Filing Official is aware of their responsibilities per Government Code. The annual forms for 2016 were collected timely; the members were contacted at various intervals via emails to the member's personal email address through the system referenced above and County Administrative Office staff placed a follow up phone call.

  • Completion Date: April 2017
  • Response Date: May 2017

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

As we stated in our report in response to Fresno County's February 2017 letter indicating it had purchased an electronic system to manage and maintain its statements of economic interests, Fresno County had not indicated whether it planned to develop procedures for staff to follow in using this new system that would ensure it collects all required statements in a timely manner. We also stated that developing procedures for collecting and maintaining the forms as well as following up with individuals who do not file on time will help the county ensure compliance with requirements. Subsequently, in June 2017, Fresno County provided a copy of procedures related to collecting statements of economic interests in a timely manner, and for maintaining those records for the appropriate amount of time. If followed, these procedures should ensure Fresno County complies with the reform act requiring collection of required statements of economic interests in a timely manner, and with its record retention policy requiring it to maintain those statements for the required period of time.


Recommendation #4 To: San Diego, County of

If the Legislature appropriates funding from the distribution fund for mitigation grants in the future, to comply with state law, the benefit committee for San Diego County should ensure that it obtains sufficient documentation from grant applicants to demonstrate that the requested funding represents the correct proportionate share of the costs attributable to casino impacts.

Annual Follow-Up Agency Response From October 2018

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. Therefore, the San Diego IGLCBC has fully implemented the State Auditor's recommendation for ensuring that sufficient documentation from grant applicants demonstrate that the requested funding represents the correct proportionate share of the costs attributable to casino impacts.

  • Completion Date: March 2018

California State Auditor's Assessment of Annual Follow-Up Status: Not Currently Feasible

This finding relates to the documentation of San Diego's analysis of the grant applications for mitigation grants. Because the Legislature has not appropriated any funding for mitigation grants since fiscal year 2013-14, it is not currently feasible for San Diego to implement this recommendation.

  • Auditee did not substantiate its claim of full implementation

1-Year Agency Response

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. This finding relates to the documentation of that analysis in the grant application. If funding is awarded, the IGLCBC staff will implement additional review for compliance with this finding.

  • Estimated Completion Date: After the Legislature appropriates funding
  • Response Date: March 2018

California State Auditor's Assessment of 1-Year Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


6-Month Agency Response

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. This finding relates to the documentation of that analysis in the grant application. If funding is awarded, the IGLCBC staff will implement additional review for compliance with this finding.

  • Estimated Completion Date: After the Legislature appropriates funding
  • Response Date: September 2017

California State Auditor's Assessment of 6-Month Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


60-Day Agency Response

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. This finding relates to the documentation of that analysis in the grant application. If funding is awarded, the IGLCBC staff will implement additional review for compliance with this finding.

  • Estimated Completion Date: After the Legislature appropriates funding
  • Response Date: May 2017

California State Auditor's Assessment of 60-Day Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


All Recommendations in 2016-036

Agency responses received are posted verbatim.