Report 2010-036 Recommendations and Responses in 2013-041

Report 2010-036: Indian Gaming Special Distribution Fund: Local Governments Continue to Have Difficulty Justifying Distribution Fund Grants

Department Number of Years Reported As Not Fully Implemented Total Recommendations to Department Not Implemented After One Year Not Implemented as of 2012-041 Response Not Implemented as of Most Recent Response
Amador County 1 5 3 n/a 2
Humboldt County 1 3 3 n/a 2
Riverside County 1 4 4 n/a 1
San Diego County 1 3 1 n/a 1
Santa Barbara County 1 6 6 n/a 3
Shasta County 1 5 5 n/a 3
Yolo County 1 4 3 n/a 0

Recommendation To: San Diego, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

The County has taken this recommendation under advisement. Although the County will not be implementing this recommendation, the San Diego County Auditor conducted a review of the SD IGLCBC grant procedures on February 14, 2011, validated the SD IGLCBC's methods used to quantify impacts, and will continue to periodically review SD IGLCBC procedures going forward.

  • California State Auditor's Assessment of Status: Will Not Implement
  • Response Date: October 2013

Recommendation To: Shasta County

To help ensure that they meet the grant requirements established in the Government Code, counties should more rigorously review applications that are to be administered and spent by an entity other than the local government that applies for the funds. Specifically, benefit committees should require that each grant application clearly show how the grant will mitigate the impact of the casino on the applicant agency.

Response

The Redding Rancheria (tribe paying into the Indian Gaming Special Distribution Fund in Shasta County), reviews all applications to determine if the grant will specifically mitigate the impact of the casino. Grant applications found not to mitigate the impacts of the casino are not considered for funding by the full Indian Gaming LCBC.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: January 2011
  • Response Date: October 2013

Recommendation To: Shasta County

To help ensure that they meet the grant requirements established in the Government Code, counties should encourage eligible local governments to submit multiple applications so that the benefit committees can choose appropriate projects while ensuring that local governments are awarded the amount defined in law.

Response

Shasta County sends the grant application to 26 different entities (eligible for grant funding) along with the three incorporated cities in the County and every County department. A press release is also sent to media outlets in the County. It is not uncommon for the Indian Gaming LCBC to receive multiple applications from the same entity.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: January 2011
  • Response Date: October 2013

Recommendation To: Shasta County

To help ensure that they meet the grant requirements established in the Government Code, counties should require benefit committee filing officers to avail themselves of the free training provided by the FPPC so that the filing officers are aware of and meet their responsibilities under the political reform act. Counties should also adhere to FPPC guidelines for notifying filers of the need to submit statements of economic interests.

Response

Members of the Indian Gaming LCBC are listed as "Designated Position" in Shasta County's Conflict of Interest Code. All members are current in their filings with the FPPC. Members are encouraged to participate in the free training provided by the FPPC.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: May 2011
  • Response Date: October 2013

Recommendation To: Shasta County

To help ensure that they meet the grant requirements established in the Government Code, counties should ensure that benefit committees' conflict-of-interest codes comply with the political reform act by reviewing the act and their codes, and changing the codes as necessary to meet the act's requirements.

Response

Shasta County is currently in the process of reviewing and updating the LCBC Bylaws to include a requirement that the LCBC members comply with the political reform act.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: June 2014
  • Response Date: October 2013

Recommendation To: Shasta County

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

Shasta County's Auditor-Controller will make himself available to review grant applications that the Shasta County Indian Gaming Local Community Benefit Committee may feel need to be reviewed to determine that the grant funds requested will be proportional to the casino's impact.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: June 2014
  • Response Date: October 2013

Recommendation To: Yolo, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

The Yolo IGLCBC is an independent agency that is not subject to the authority of the County of Yolo. However, the County of Yolo did recommend to the IGLCBC that they establish a grant process that includes a rigorous analysis of the casino's impact and of the proportion of funding for the project provided by the grant. The IGLCBC approved a grant application that requires applicants to provide a description of the impacts on the jurisdiction associated with the tribal casino in Yolo County (Indian Gaming Impacts, attachment B to the grant application), an explanation of how the proposed project will mitigate impacts of the casino (Mitigation Objectives, attachment C ), and the completion of a Proportional Funding Worksheet (attachment D) that describes the method used to determine the proportional funding. The grant application and attachments are utilized as the basis for Yolo County staff to certify the impacts and proportionate share.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: April 2013
  • Response Date: October 2013

Recommendation To: Yolo, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should review the law for changes that may affect applicants' eligibility for distribution fund grants before awarding the grants so that ineligible entities do not receive grants.

Response

This item was fully implemented and a complete explanation was included in the September 25, 2012 report to your agency. We have reprinted it below for your convenience.

It is the practice of the Yolo IGLCBC to review the Government Code to determine which government entities are eligible for grants from the Indian Gaming Special Distribution Fund. At the April 11, 2011 Yolo IGLCBC meeting, agenda item 7 was a review of local government entities eligible for grants. The attachment for agenda item 7 includes a reference to the relevant section of the government code. The meeting summary minutes reflect that the committee reviewed the list and requested the addition of an additional special district. The committee also requested modification of the draft grant application form to include a reference code sections governing the IGLCBC process.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: November 2011
  • Response Date: October 2013

Recommendation To: Humboldt, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

The County of Humboldt agrees in part with this recommendation. The County agrees that conducting additional review to insure that the grant applications quantify the impact of the casino and that the funds requested are proportional may be warranted. We do not agree that the county auditor is the only option and are concerned that this recommendation could delay the grant review process. We also do not believe that sufficient funds are provided to support this review by the county auditor. Other qualified County staff exist and are available to carry out this function.

  • California State Auditor's Assessment of Status: Will Not Implement
  • Response Date: October 2013

Recommendation To: Humboldt, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should more rigorously review applications that are to be administered and spent by an entity other than the local government that applies for the funds. Specifically, benefit committees should require that each grant application clearly show how the grant will mitigate the impact of the casino on the applicant agency.

Response

The County of Humboldt is conducting additional review to insure that the grant applications quantify the impact of the casino and that the funds requested are proportional to the impacts. To this end, County staff is working in conjunction with the benefit committee to ensure a more rigorous review of the applications.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: July 2011
  • Response Date: October 2013

Recommendation To: Humboldt, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require benefit committee filing officers to avail themselves of the free training provided by the FPPC so that the filing officers are aware of and meet their responsibilities under the political reform act. Counties should also adhere to FPPC guidelines for notifying filers of the need to submit statements of economic interests.

Response

The County of Humboldt has implemented this recommendation. The benefit committee filing officer currently utilizes the free FPPC training and will adhere to the FPPC guidelines for notification.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: February 2013
  • Response Date: October 2013

Recommendation To: Santa Barbara, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

A more rigorous review of grant applications may be in order. Because counties are already reimbursed up to 2% of the amount awarded to administer grants, they may be better served by using these funds to reimburse the county Auditor-Controller to review the grant applications and certify those that quantify the casino's impact and fund projects in proportion to the casino's impact.

Santa Barbara County agrees in part with this recommendation. The County agrees that conducting additional review to insure that the grant applications quantify the impacts of the casino and that the funds requested are proportional to the impact. We do not believe that the 2% administrative cost reimbursement is sufficient to pay for the actual grant administration, administrative processing of applications and measuring impacts. Adding an additional review by the Auditor-Controller could not be cost justified within the 2% allowance.

  • California State Auditor's Assessment of Status: Will Not Implement
  • Response Date: October 2013

Recommendation To: Santa Barbara, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should more rigorously review applications that are to be administered and spent by an entity other than the local government that applies for the funds. Specifically, benefit committees should require that each grant application clearly show how the grant will mitigate the impact of the casino on the applicant agency.

Response

The grant application was redesigned and adopted by the Indian Gaming Community Benefit Committee at the April 22, 2011 meeting. The grant application now requires a full response to two separate information requests:

+ Purpose of Grant/Description of Project

+ Please describe, in detail, the impacts associated with the Tribal casino and/or gaming which the grant is designed to mitigate: (please include historical data, if available. Attach additional sheets if necessary to provide a detailed description of impacts.

These application materials were provided to the Indian Gaming Community Benefit Committee for the past two grant cycles. An example is attached.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: April 2011
  • Response Date: October 2013

Recommendation To: Santa Barbara, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should ensure that eligible cities and counties receive the proportional share of funding they are set aside according to the nexus test by making the governments aware of available distribution fund grants and of the minimum grant amounts that are set aside for them under the nexus test.

Response

Staff developed a nexus test spreadsheet that calculated the proportional share of funding available to each jurisdiction that accounted for the quantity of nexus tests they successfully meet. Additionally, the public notice includes the breakdown of funds available for grant funds eligible through nexus and those grants available for discretionary funds.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: April 2011
  • Response Date: October 2013

Recommendation To: Santa Barbara, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should encourage eligible local governments to submit multiple applications so that the benefit committees can choose appropriate projects while ensuring that local governments are awarded the amount defined in law.

Response

Public notices for the Spring 2013 grant funding cycle did include the suggestion that entities are encourgaed to submit multiple applications. As a result of this suggestion in the public notice, one entitity did submit a second appllication for mitigation funding.

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: February 2013
  • Response Date: October 2013

Recommendation To: Santa Barbara, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require benefit committee filing officers to avail themselves of the free training provided by the FPPC so that the filing officers are aware of and meet their responsibilities under the political reform act. Counties should also adhere to FPPC guidelines for notifying filers of the need to submit statements of economic interests.

Response

Financial disclosure and conflict of interest laws were reviewed and current processes in place for reporting by county employees, elected officials and Brown Act committees were placed into practice by the Indian Gaming Community Benefit Committee.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: April 2011
  • Response Date: October 2013

Recommendation To: Santa Barbara, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should ensure that benefit committees' conflict-of-interest codes comply with the political reform act by reviewing the act and their codes, and changing the codes as necessary to meet the act's requirements.

Response

The local committees by-laws (which include the conflict of interest provisions)have been reviewed and updated by committee counsel. The local committee will be considering the by-law/conflict of interest provisions at a special meeting in November or December 2013. The revisions to be considered for approval to the Indian Gaming Community Benefit Committee's Bylaws will align conflict of interest provisions with the political reform act.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: December 2013
  • Response Date: October 2013

Recommendation To: Amador County

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

The Amador County Local Community Benefits Committee has not implemented this recommendation at this time due to staffing and time constraints in the Auditor's Office. The Committee reviews each application and verifies the impact of the casino for each entity requesting funds and ensures proportional division relative to impact.

The Amador County Local Community Benefits Committee will forward all completed applications to the Auditor's Office for his certification and comment. The Committee will leave as much time as possible for the Auditor to complete this task and allow as vigorous an analysis as possible.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: Unknown
  • Response Date: November 2012

Recommendation To: Amador County

To help ensure that they meet the grant requirements established in the Government Code, counties should require benefit committee filing officers to avail themselves of the free training provided by the FPPC so that the filing officers are aware of and meet their responsibilities under the political reform act. Counties should also adhere to FPPC guidelines for notifying filers of the need to submit statements of economic interests.

Response

A majority of Local Community Benefits Committee members serve in some capacity of County or City Government and are made aware of the responsibility to submit statements of economic interest by staff. In addition the Clerk of the LCBC notifies each member of the need to submit their form by the deadline. Some members have attended training relative to FPPC guidelines and statements of economic interests at conferences and trainings attended throughout the year, however to my knowledge have not attended the free training.

The Clerk of the Amador County Local Community Benefits Committee will make all members aware of the free training provided by the Fair Political Practices Commission.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: Unknown
  • Response Date: November 2012

Recommendation To: Riverside, County of

To help ensure that they meet the grant requirements established in the Government Code, counties should require that the county auditor review each grant application to ensure a rigorous analysis of a casino's impact and of the proportion of funding for the project provided by the grant. Benefit committees should consider a grant application only when the county auditor certifies that the applicant has quantified the impact of the casino and verifies that the grant funds requested will be proportional to the casino's impact.

Response

The County of Riverside will attempt to fully implement the recommendation. The County Auditor-Controller is an elected official and cannot be 'required' to participate in the application review process; however, when applications are received, pursuant to AB 2515, the Auditor-Controller's participation in the review process will be requested.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: May 31, 2013
  • Response Date: October 2012

Current Status of Recommendations

All Recommendations in 2013-041