Report I2014-1 All Recommendation Responses

Report I2014-1: Investigations of Improper Activities by State Agencies and Employees (Release Date: December 2014)

Case Number I2010-1250

Recommendation #1 To: Military Department, California

Return to headquarters the remaining excess expendable materials seen in August 2013.

Agency Response*

The Military Department reported in August 2015 that Camp Roberts has turned in all expendable state property to headquarters.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Military Department reported that as of December 2014 it had returned 120 pallets of expendable state property to headquarters since August 2013 and that 30 pallets are still at Camp Roberts awaiting return. It stated that it intends to return all remaining pallets by September 2015.

  • Response Date: December 2014

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2010-1250

Recommendation #2 To: Military Department, California

Identify a barcode system that can be used to inventory expendable state property and implement that system.

Agency Response*

The Military Department reported in March 2016 that it is currently beta testing a new asset management system that bridges the gap between approved purchase requests and receiving inventory. In addition, the system will include an inventory number along with a corresponding bar code. It intends to test the system at Camp Roberts and two other locations.

  • Response Date: March 2016

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Military Department reported in November 2015 that it is working with its information technology staff to test another barcode system.

  • Response Date: November 2015

California State Auditor's Assessment of Status: Pending


Agency Response*

The Military Department reported in August 2015 that it tried using the new software system but determined that the software was not compatible with the federal Department of Defense portal. The Military Department is working with another company to determine if that system is compatible. In the meantime, Camp Roberts continues to use the State's existing system to track expendable state property until it is able to find a suitable solution.

  • Response Date: August 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The Military Department reported that it purchased software that it will implement at multiple locations, including Camp Roberts, to allow it to conduct inventory of expendable state property. The Military Department stated that it hopes to provide training on using the software by July 2015.

  • Response Date: June 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The Military Department stated that it will continue to work on identifying a barcode system that is compatible with its network but feels confident that the internal control processes it adopted in August 2013 will provide for better accountability and management of state property.

  • Response Date: December 2014

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2010-1250

Recommendation #3 To: Military Department, California

Establish a routine of completing a monthly inventory of expendable state property after the barcode system is implemented.

Agency Response*

The Military Department reported that it completed its beta testing of the asset management system at Camp Roberts and two other locations. The Military Department stated that it has fully implemented the system at one location, is implementing the system at Camp Roberts, and plans to implement it at the last location. It plans to complete implementation in June 2018. Finally, the Military Department stated that it has revised its internal processes to centralize facilities project management and that on-site inventories of expendable state property now is limited to a 90-day supply for identified maintenance and repair work.

  • Response Date: November 2017

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The Military Department reported in March 2016 that it is currently beta testing a new asset management system that bridges the gap between approved purchase requests and receiving inventory. In addition, the system will include an inventory number along with a corresponding bar code. It intends to test the system at Camp Roberts and two other locations.

  • Response Date: March 2016

California State Auditor's Assessment of Status: Pending


Agency Response*

The Military Department reported in August 2015 that it tried using the new software system but determined that the software was not compatible with the federal Department of Defense portal. The Military Department is working with another company to determine if that company's system is compatible. In the meantime, Camp Roberts continues to use the State's existing system to track expendable state property until it is able to find a suitable solution.

  • Response Date: August 2015

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


Agency Response*

The Military Department feels confident that the internal control processes it adopted in August 2013 will provide for better accountability and management of state property.

  • Response Date: December 2014

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


Case Number I2011-0815

Recommendation #4 To: Industrial Relations, Department of

To address the dishonesty and incompatible activities of the employee, place information in the employee's personnel file regarding his dishonesty and incompatible activities so the information may be considered if the employee seeks future employment with the State.

Agency Response*

In September 2013 Industrial Relations reported that it placed a memorandum in the employee's personnel file regarding his involvement with dishonesty and incompatible activities.

  • Response Date: September 2013

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2011-0815

Recommendation #5 To: Industrial Relations, Department of

To address the neglect of supervisory duties by the manager, take adverse action against the manager.

Agency Response*

Industrial Relations reported that in September 2013 it issued a counseling memorandum to the manager rather than an adverse action because it concluded that an adverse action would be too harsh of a consequence in light of Industrial Relations not having an effective telecommuting policy in place.

  • Response Date: September 2013

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2011-0815

Recommendation #6 To: Industrial Relations, Department of

To address the failure to adopt a telecommuting program consistent with General Services' guidance, adopt a telecommuting program consistent with General Services' policies, procedures, and guidelines, including the model program, and train staff regarding the requirements of that program.

Agency Response*

Industrial Relations reported that it adopted a telecommuting program, which is consistent with General Services' model program, that became effective January 1, 2014. Prior to implementing the telecommuting program, Industrial Relations provided training to its managers, supervisors, and other employees.

  • Response Date: November 2013

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2012-0355

Recommendation #7 To: General Services, Department of

Either cease providing Inter-Con's evening and weekend security guards with free parking or amend its contract with Inter-Con to disclose that it is providing free parking to Inter-Con employees as part of the price of the contract to protect the safety of the guards working evening and weekend shifts.

Agency Response*

In February 2015, General Services provided us with a copy of the amended contract with Inter-Con. The amended contract provides two parking spaces at no charge for late evening and graveyard shift Inter-Con employees.

  • Response Date: February 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

General Services reported in November 2014 that to provide assurance for the safety of security guards, it will amend the contract with Inter-Con to allow security guards working evenings and weekends to park in the building's garage without charge.

  • Response Date: November 2014

California State Auditor's Assessment of Status: Pending


Case Number I2011-1622

Recommendation #8 To: Transportation, Department of

Seek reimbursement of $415 from the transportation engineer for his misuse of the state vehicle.

Agency Response*

Caltrans reported that in March 2015 it sent the transportation engineer an invoice for $415 to repay for his misuse of the state vehicle.

  • Response Date: March 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Caltrans reported in November 2014 that it intends to pursue reimbursement of $415 from the transportation engineer for his misuse of the state vehicle.

  • Response Date: November 2014

California State Auditor's Assessment of Status: Pending


Case Number I2011-0878

Recommendation #9 To: Employment Development Department

Provide training regarding headquarters designations and their impact on travel expense claims to all Facilities Office staff who regularly submit travel expense claims.

Agency Response*

EDD reported that it held training for all Facilities Office staff who regularly submit travel expense claims. EDD provided us with evidence that the applicable Facilities Office staff attended the training. It also provided us with the materials the training covered. Our review of the materials determined that EDD held the recommended training regarding headquarters designations and their impact on travel expense claims.

  • Response Date: January 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

EDD reported that it had instructed all employees of the Facilities Office about the laws and regulations regarding headquarters designations and long-term assignments. In addition, EDD stated that it required staff to review EDD's Travel Handbook and two specific memos issued by EDD that discussed long-term assignments and travel expense claim requirements. Moreover, EDD stated that it had created a training class that all staff who submit travel expense claims must attend. This class will provide information to employees on long-term assignments and how an employee's headquarters designation impacts his or her travel expense claim. EDD stated that it scheduled the training to be held in January 2015.

  • Response Date: December 2014

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2011-0878

Recommendation #10 To: Employment Development Department

Provide training to all Facilities Office supervisors who oversee traveling staff to ensure that they understand how to determine and designate headquarters locations for their employees properly.

Agency Response*

EDD reported that in January 2015 it held training for all Facilities Office supervisors who oversee traveling staff. EDD provided us with evidence that the supervisors attended the training, and it also provided us with the materials the training covered. Our review of the materials determined that EDD held the recommended training regarding how to determine and designate headquarters locations for their employees properly. In particular, the training clearly outlined to supervisors that when an employee is required to spend the majority of his or her time in an alternate work location, the employee's supervisor is responsible for changing the employee's headquarters location.

  • Response Date: January 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

EDD stated that it is requiring the Facilities Office supervisors to attend the January training mentioned under recommendation #9 to ensure that they understand how to determine and designate headquarters locations for their employees.

  • Response Date: December 2014

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2011-0878

Recommendation #11 To: Employment Development Department

Require all Facilities Office supervisors to evaluate the current headquarters designations for their traveling staff to ensure that the headquarters designations are correct.

Agency Response*

EDD reported that it had reviewed and validated the headquarters designations for all Facilities Office staff. In addition, EDD stated it had determined that all the current headquarters designations of these employees were appropriate.

  • Response Date: December 2014

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2011-0878

Recommendation #12 To: Employment Development Department

Provide training to the travel unit to ensure that its employees understand the relevant laws and regulations governing headquarters designations.

Agency Response*

EDD stated that it provided training to the travel unit when we expressed concerns regarding EDD's headquarters designation practices during our investigation. As a result of the additional training and increased awareness about headquarters designations, EDD stated that its travel unit has been successful in identifying improper travel expenses.

  • Response Date: December 2014

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2012-0086

Recommendation #13 To: Water Resources Control Board

Make reasonable efforts to recover the outstanding $994 from the manager.

Agency Response*

The Water Board reported that in May 2015, the former manager reimbursed the Water Board $994 for the outstanding amount.

  • Response Date: May 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Water Board reported that in February 2015, it sent a letter to the former manager and requested that she repay the $994 owed to it.

  • Response Date: February 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The Water Board reported that it will pursue efforts to recover the outstanding $994 that was not repaid by the employee through its normal accounts receivable process. This includes administrative procedures to recover the funds, eventual referral to a collection agency if administrative efforts fail, and potential referral to the Attorney General's Office if all administrative remedies fail.

  • Response Date: November 2014

California State Auditor's Assessment of Status: Pending


Case Number I2012-0086

Recommendation #14 To: Water Resources Control Board

Contact the state agency that currently employs the manager to coordinate appropriate disciplinary action, to make certain the manager is not in a position to misuse or embezzle additional state funds, and to ensure that the manager's personnel file includes appropriate documentation of her misconduct.

Agency Response*

The Water Board reported that in July 2015, it sent its proposed disciplinary action to the state agency where the manager currently works.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Water Board stated that it has proposed potential disciplinary action that is undergoing internal legal review. Once its legal counsel completes the review, it will share the proposed disciplinary action with the state agency that currently employs the manager.

  • Response Date: May 2015

California State Auditor's Assessment of Status: Pending


Agency Response*

The Water Board stated that it had begun to coordinate with the state agency that currently employs the manager to determine appropriate disciplinary action.

  • Response Date: February 2015

California State Auditor's Assessment of Status: Pending


Agency Response*

The Water Board stated that it had contacted the State Agency where the employee currently works and is coordinating with its management to pursue action consistent with state personnel laws and regulations. It stated that although it cannot guarantee the follow-up actions of the other state agency, it will strongly encourage and assist the other agency's management in performing these actions, consistent with state personnel laws and regulations, to address the recommendation.

  • Response Date: November 2014

California State Auditor's Assessment of Status: Pending


Case Number I2012-0086

Recommendation #15 To: Water Resources Control Board

Refer the matter to the district attorney in the jurisdiction where the embezzlement occurred for potential prosecution.

Agency Response*

The Water Board stated that in April 2015, it submitted to the district attorney the package of materials regarding prosecution of the former manager for embezzlement. The district attorney informed the Water Board in May 2015 that it would not pursue prosecution of the case.

  • Response Date: May 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Water Board reported that it is developing a package of materials to send to the district attorney that will allow it to decide whether to pursue prosecution.

  • Response Date: February 2015

California State Auditor's Assessment of Status: Pending


Agency Response*

The Water Board reported that it plans to contact the appropriate district attorney's office so it can evaluate the case and decide whether to pursue prosecution.

  • Response Date: November 2014

California State Auditor's Assessment of Status: Pending


Case Number I2012-0086

Recommendation #16 To: Water Resources Control Board

Establish a formal policy for recycling its surplus state property. This policy should include a strict prohibition against obtaining cash for recycled state property and a requirement that staff log all recycling activities so that its accounting office periodically can reconcile those activities with accounting receipts. The policy also should include specific instructions regarding who may engage in recycling activities and detailed procedures for carrying out those responsibilities, starting with identifying the need to recycle state property and ending with delivering the recycling proceeds to the accounting office.

Agency Response*

The Water Board finalized its policy regarding the recycling of surplus state property. The policy prohibits the receipt of cash from recycling activities, specifies the employees who may engage in recycling activities, provides detailed procedures for recycling surplus state property, and requires employees to log their recycling activities. In addition, the policy specifies that check payment, receipts, and property survey reports must be submitted immediately to its accounting office.

  • Response Date: July 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The Water Board reported in March 2015 that it completed a draft policy for recycling surplus state property. It stated subsequently that it is still reviewing and revising the draft policy to ensure that it includes procedures to be used by its staff throughout the State.

  • Response Date: May 2015

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The Water Board reported that it is still establishing its policy for recycling surplus state property.

  • Response Date: February 2015

California State Auditor's Assessment of Status: Pending


Agency Response*

The Water Board stated that it plans to establish a formal internal policy for recycling surplus state property. This policy will include but not be limited to procedures to follow when recycling surplus property, such as who may perform this task, the documentation required, and the receipt and accounting for proceeds from the surplus property recycling activities. The Water Board also stated that it plans to provide training to the appropriate administrative managers and staff to make sure they are aware of, and follow, the new internal policy.

  • Response Date: November 2014

California State Auditor's Assessment of Status: Pending


All Recommendations in I2014-1


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