Gran Jurado del Condado de Butte
2022-2023
Vista rápida
Detalles completos →
Hallazgos & Recomendaciones
14 hallazgos
F1:
Although achieving an unmodified opinion, the 2022 Butte County Single Audit Report flagged a significant deficiency in internal controls. The deficiency was due 34 to Butte County following the guidance proposed by the IA for the previous fiscal year-end report. The deficiency was corrected in the fiscal year ended June 30, 2022, report and caused no financial harm to Butte County. Responses are to be submitted to the presiding judge of the Butte County Superior Court in accordance with the provisions of Penal Code § 933.05. Responses must include information required by §933.05. Reports issued by the Grand Jury do not identify individuals interviewed. Penal Code §929 requires that reports of the Grand Jury not contain the name of any person or facts leading to the identity of any person who provides information to the Grand Jury. WEBSITES https://www.hrsa.gov https://www.councilofnonprofits.org 35 < This page intentionally blank> 36 2022-2023 BUTTE COUNTY GRAND JURY April 11, 2023 Unfinished Business, The Butte County Payroll Clearing Fund 1420 Analysis Report Payroll SUMMARY The Butte County Grand Jury (BCGJ) received and reviewed the Butte County Payroll Clearing Fund Analysis Report for Fiscal Years 2010-2018. It was prepared by the Independent Auditor (IA) CLIFTON, LARSON, ALLEN, LLP. The finalized report was released in February 2019 and has been under discussion by county officials for over 3 years. Some of the IA recommendations have been implemented by Butte County (BC) and others have not, due in part to inter-departmental differences of opinion as to the financial impact of a current BC practice and the absence of clear direction from the Board of Supervisors (BOS). The County Audit Committee (CAC) commissioned the IA’s report to audit the accuracy and efficiency of the practices currently in place for the Payroll Clearing Fund 1420 (Fund 1420) reconciliation. Fund 1420 is a pass-through account which accumulates the contributions for BC employee health insurance and other benefits in advance of the payments that would subsequently pass to benefit provider vendors. Approximately 40 different employee benefit ledger accounts comprise Fund 1420. CAC was concerned that due to the nature of advance collections and intermittent disbursements from Fund 1420, material deficits and cash flow shortfalls may occur and exist without detection. Also, there is a substantial (approx. $900,000) reserve fund set aside to cover Fund 1420 deficits. The IA audit would help determine if the reserve account is sufficient to cover any estimated Fund 1420 deficit or if some of the reserve was available to be released back to the BC general fund. The IA recommended various procedural and operational changes to BC practices to improve the reconciliation efficiency and transparency of Fund 1420. The IA also found that there were more than sufficient reserves to cover the estimated deficiency in Fund 1420 and recommended releasing a substantial portion of the reserve. Amongst other things, the BCGJ found that some of the proposed 2019 IA report
Recomendaciones relacionadas (1)
R1:
BOS address and resolve all recommendations that appear in the outstanding BC commissioned IA audit reports or internal audit reports by June 30, 2024.
F2:
The compensation contracts between BC and third-party entities for providing payroll and benefit administration servicing have not been updated since origination which causes BC to provide those services at a charge rate below cost.
Recomendaciones relacionadas (1)
R2:
BOS outsource third-party agency payroll administration and servicing functions to an outside vendor by June 30, 2024.
F3:
The BC practice of advancing benefit premium funds to off-payroll employees does not follow BOS policy.
Recomendaciones relacionadas (1)
R3:
BCHR should comply with BOS Resolution 21-005 by June 30, 2024. 47
F4:
There is no applicable BC termination policy for ex-employees who fail to repay their benefit contribution fund advancements.
Recomendaciones relacionadas (1)
R4:
The funds in the set-aside reserve account for Fund 1420 should not be released until an accounting true up is performed by BCAC to identify the amount needed to cover anticipated Fund 1420 deficits. This should be completed by June 30, 2024.
F5:
It is unclear as to the amount of the set-aside reserve fund for Fund 1420 that is available for release.
Recomendaciones relacionadas (1)
R5:
The CAO, in coordination with BCAC, develop a management plan for replenishing Fund 1420 by June 30, 2024.
F6:
There is no management plan in place to replenish funding shortfalls within Fund 1420.
Recomendaciones relacionadas (1)
R6:
BCHR, in coordination with BCAC, perform quarterly reconciliations of Fund 1420 by June 30, 2024.
F7:
Complete quarterly reconciliations of Fund 1420 are not occurring.
Recomendaciones relacionadas (1)
R7:
The BCGJ recommends the independent consultant (see R6) offer a redefined position and position duties/responsibilities listing, along with revised adequate financial compensation for the consideration of the OCC by June 30, 2024.
F8:
The need for significant changes to the Oroville City Charter have been reported by 4 previous Grand Juries over the past 10 years.
Recomendaciones relacionadas (1)
R8:
The BCGJ recommends the position and financial realignment recommendations from the study provided (see R7) be reviewed by the OCC and accepted recommendations be implemented by November 30, 2024.
F9:
The Oroville City Charter document is not well assembled nor easily navigated.
Recomendaciones relacionadas (1)
R9:
The BCGJ recommends the City Administrator research and select a training entity, to work with the OCC, training how to be effective leaders with positive and supportive methods by December 31, 2023. 129
F10:
The Oroville City Charter document is vague, allows multiple interpretations, and leads to opportunities for manipulation.
Recomendaciones relacionadas (1)
R10:
The BCGJ recommends this interpersonal leadership training be implemented by the City Administrator with an initial training by March 31, 2024.
F11:
Currently, the City of Oroville Charter allows the mayor to appoint administrative staff/department heads under certain conditions, creating an incentive for the mayor to help create those conditions, in order to appoint specific persons without Council super-majority approval.
Recomendaciones relacionadas (1)
R11:
The BCGJ recommends the OCC include this interpersonal leadership training to be repeated annually, as the Council body can change, to be calendarized within the first quarter of each and announced at a City Council meeting by December 31, 2023.
F12:
The 1906 City Charter document requires an elected City Treasurer. The city treasurer position is no longer necessary to administer city financial business.
Recomendaciones relacionadas (1)
R12:
The BCGJ recommends the OCC seek and hire a database consultant to begin the process of bringing the City Charter current in both platform and technological abilities by March 31, 2024.
F13:
Oroville City Charter currently requires only a vote of 3 council members in favor to terminate a department head, requires a vote of 5 council members in favor to hire a new department head, or appointment solely by the Mayor. 128
Recomendaciones relacionadas (1)
R13:
The BCGJ recommends the OCC hire a consultant to begin the process of providing the City Charter in a format that is easily understood and searchable by member of the public June 30, 2024.
F14:
The BCGJ remains uncertain why the public safety emergency access exit door was removed from the Police & Fire Department lobby.
Recomendaciones relacionadas (1)
R14:
The BCGJ recommends OCC to amend the City Charter to include each position in city administration and city government be filled by one individual; and that only a 6-month temporary appointment may occur , including all necessary steps for voter approval of this amendment by July 31, 2024.
Recomendaciones adicionales
4
No vinculadas a hallazgos específicos.
R15:
The BCGJ recommends the hired consultant(s) assist the City Administrator to ensure these changes include the culmination of all past amendments and the initial code, into a current complete statement, are given to the people to vote on November 2025 ballot.
R16:
The BCGJ recommends OCC have the Charter and Municipal Codes reviewed by an independent consultant to eliminate areas allowing the perception of unfair hiring, firing, and appointing practices by December 31, 2023.
R17:
The BCGJ recommends the OCC amend the Charter to remove the unnecessary position of City Treasurer, to include all necessary steps to having on the November 2024 ballot.
R18:
The BCGJ recommends OCC hire an independent inspector to review the Fire & Police Department lobby replacement of emergency fire exit with fire wall, to ensure the safety of employees and the general public by October 31, 2023. 130