📋
Extracted from Consolidated Report

This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.

Nevada County Grand Jury • 1999-2000

Reason for Investigation The Nevada County Civil Grand Jury decided to investigate if the County was correctly

9 pages
View PDF View Full Original

Note: Missing finding numbers detected: F4

Findings 5 findings

F1 Page 1
Documents revealed that several Nevada County employees for whom tax withholding is required, in some circumstances are also being paid as independent contractors for ٠ whom tax withholding is not required.
F2 Page 1
At least three top-level personnel were being paid as independent contractors. Their employment contracts specified work hours and prohibited doing like work for others, clearly making them employees under IRS rules.
F3 Page 1
The IRS has 20 specific rules for determining who is an employee and who is an independent contractor. In the event of an IRS audit, should they find actual employees being paid as 4 independent contractors, the IRS could assess significant penalties against Nevada County.
F5 Page 1
A review of Auditor-Controller e-mails on dealing several cases with employee/independent contractor status revealed that no one took the responsibility to make a final binding decision upon employee/independent contractor status. The Grand Jury was unable to determine where that responsibility lay.
F6 Page 1
The Auditor-Controller testified that he believed the decision-making responsibility should belong to the County department heads. COUNTY OF NEVADA STATE OF CALIFORNIA 950 Maidu Avenue • Nevada City, California 95959-8617 Telephone: (530) 265-1480 • FAX: (530) 265-1234 Toll-Free Telephone: (888) 785-1480 E-Mail: www.co.nevada.ca.us/ncbos/clerk JUP ERV Peter Van Zant, 1st District Karen Knecht, 2nd District BOARD OF SUPERVISORS Bruce Conklin, 3rd District Elizabeth Martin, 4th District Sam Dardick, 5th District Cathy R. Thompson September 27, 2000 Clerk of the Board The Honorable Carl Bryan Presiding Judge of the Nevada County Courts Nevada County Court House Nevada City ČA 95959 Subject: Board of Supervisors Responses to the 1999-2000 Nevada County Civil Grand Jury Interim Report No. 5, dated May 31, 2000, regarding Employee/Independent Contractors; and Grand Jury Interim Report No. 6, dated June 5, 2000, regarding the Nevada County Assessor's Office. Dear Judge Bryan: The attached responses by the Board of Supervisors to the 1999-2000 Nevada County Civil Grand Jury Interim Report No. 5, dated May 31, 2000, and Interim Report No. 6, dated June 5, 2000, are submitted as required by California Penal Code §933. These responses to the Grand Jury's findings and recommendations were approved by the Board of Supervisors at their regular meeting on September 26, 2000. They are based on either personal knowledge, examination of official county records, review of the response by the Assessor, or testimony from the Auditor-Controller, Board Chairman, or county staff members. This submission completes the Board of Supervisors reply to the 1999-2000 Nevada County Civil Grand Jury Final Report, including all Interim Reports. The Board of Supervisors would like to thank the members of the 1999-2000 Grand Jury for their participation and effort in preparing this year's report. Sincerely, Bruce Conklin Chairman of the Board Attachment bc:pb Foreman, Grand Jury cc: Ted Gaebler, County Administrator County Counsel NEVADA COUNTY BOARD OF SUPERVISORS RESPONSES TO 1999-2000 CIVIL GRAND JURY INTERIM REPORT NO. DATED MAY 31, 2000 RE: NEVADA COUNTY EMPLOYEE/INDEPENDENT CONTRACTORS FINDINGS & RECOMMENDATIONS Responses to findings and recommendations are based on either personal knowledge, examination of official county records or testimony from the Auditor-Controller, board chairman or county staff members. I. GRAND JURY INVESTIGATION: Nevada County Employee/Independent Contractors A. RESPONSE TO FINDINGS & RECOMMENDATIONS: The Board of Supervisor's response to this Grand jury investigation is partially based on staff discussion with the Auditor-Controller regarding the Findings and Recommendations in the report. The Board believes it would have been appropriate for the Grand Jury to request the Auditor- Controller also formally respond to these Findings and Recommendations. Most of the Findings relate to Grand Jury contact with the Auditor-Controller, examination of Auditor-Controller contract, financial, and e-mail records, and IRS-related issues generally under the responsibility of the Auditor-Controller to monitor for the County. Additionally, the Grand Jury recommendation would directly impact Auditor-Controller operations if implemented and appears to be contrary to his recommendation, as reported by the Grand Jury in Finding No.6, on where responsibility and authority for employee/independent contractor should be assigned. Findings: Documents revealed that several Nevada County employees for whom tax withholding is 1. required, in some circumstances are also being paid as independent contractors for whom tax withholding is not required. Neither agree nor disagree. The Board has no knowledge of what documents were reviewed by the Grand Jury. Board staff discussion with the Auditor-Controller indicated he agrees with this Finding.

Recommendations 5

Conclusions 2

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.

Nevada County Auditor-Controller Elected County Office