Score: 0 (0/2/0)
San Bernardino County Grand Jury • 2000-2001

With Justice for All*

Published: February 08, 2005 181 pages Consolidated Report
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Note: Missing finding numbers detected: F6, F8, F10, F11, F12, F16, F17, F18, F19, F20, F21, F22, F23, F24, F25, F26, F27, F28, F29, F30, F31, F32, F33, F34, F35, F36, F37, F38, F39, F40, F41, F42, F43, F44, F45, F46, F47, F48, F49, F50, F51, F52, F53, F54, F55, F56, F57, F58, F59, F60, F61, F62, F63, F64, F65, F66, F67, F68, F69, F70, F71, F72, F73, F74, F75, F76, F77, F78, F79, F80, F81, F82, F83, F84, F85, F86, F87, F88, F89, F90, F91, F92, F93, F94, F95, F96, F97, F98, F99, F100, F101, F102, F103, F104, F105, F106, F107, F108, F109, F110, F111, F112, F113, F114, F115, F116, F117, F118, F119, F120, F121, F122, F123, F124, F125, F126, F127, F128, F129, F130, F131, F132, F133, F134, F135, F136, F137, F138, F139, F140, F141, F142, F143, F144, F145, F146, F147, F148, F149, F150, F151, F152, F153, F154, F155, F156, F157, F158, F159, F160, F161, F162, F163, F164, F165, F166, F167, F168, F169, F170, F171, F172, F173, F174, F175, F176, F177, F178, F179, F180, F181, F182, F183, F184, F185, F186, F187, F188, F189, F190, F191, F192, F193, F194, F195, F196, F197, F198, F199, F200, F201, F202, F203, F204, F205, F206, F207, F208, F209, F210, F211, F212, F213, F214, F215, F216, F217, F218, F219, F220, F221, F222, F223, F224, F225, F226, F227, F228, F229, F230, F231, F232, F233, F234, F235, F236, F237, F238, F239, F240, F241, F242, F243, F244, F245, F246, F247, F248, F249, F250, F251, F252, F253, F254, F255, F256, F257, F258, F259, F260, F261, F262, F263, F264, F265, F266, F267, F268, F269, F270, F271, F272, F273, F274, F275, F276, F277, F278, F279, F280, F281, F282, F283, F284, F285, F286, F287, F288, F289, F290, F291, F292, F293, F294, F295, F296, F297, F298, F299, F300, F301, F302, F303, F304, F305, F306, F307, F308, F309, F310, F311, F312, F313, F314, F315, F316, F317, F318, F319, F320, F321, F322, F323, F324, F325, F326, F327, F328, F329, F330, F331, F332, F333, F334, F335, F336, F337, F338, F339, F340, F341, F342, F343, F344, F345, F346, F347, F348, F349, F350, F351, F352, F353, F354, F355, F356, F357, F358, F359, F360, F361, F362, F363, F364, F365, F366, F367, F368, F369, F370, F371, F372, F373, F374, F375, F376, F377, F378, F379, F380, F381, F382, F383, F384, F385, F386, F387, F388, F389, F390, F391, F392, F393, F394, F395, F396, F397, F398, F399, F400, F401, F402, F403, F404, F405, F406, F407, F408, F409, F410, F411, F412, F413, F414, F415, F416, F417, F418, F419, F420, F421, F422, F423, F424, F425, F426, F427, F428, F429, F430, F431, F432, F433, F434, F435, F436, F437, F438, F439, F440, F441, F442, F443, F444, F445, F446, F447, F448, F449, F450, F451, F452, F453, F454, F455, F456, F457, F458, F459, F460, F461, F462, F463, F464, F465, F466, F467, F468, F469, F470, F471, F472, F473, F474, F475, F476, F477, F478, F479, F480, F481, F482, F483, F484, F485, F486, F487, F488, F489, F490, F491, F492, F493, F494, F495, F496, F497, F498, F499, F500, F501, F502, F503, F504, F505, F506, F507, F508, F509, F510, F511, F512, F513, F514, F515, F516, F517, F518, F519, F520, F521, F522, F523, F524, F525, F526, F527, F528, F529, F530, F531, F532, F533, F534, F535, F536, F537, F538, F539, F540, F541, F542, F543, F544, F545, F546, F547, F548, F549, F550, F551, F552, F553, F554, F555, F556, F557, F558, F559, F560, F561, F562, F563, F564, F565, F566, F567, F568, F569, F570, F571, F572, F573, F574, F575, F576, F577, F578, F579, F580, F581, F582, F583, F584, F585, F586, F587, F588, F589, F590, F591, F592, F593, F594, F595, F596, F597, F598, F599, F600, F601, F602, F603, F604, F605, F606, F607, F608, F609, F610, F611, F612, F613, F614, F615, F616, F617, F618, F619, F620, F621, F622, F623, F624, F625, F626, F627, F628, F629, F630, F631, F632, F633, F634, F635, F636, F637, F638, F639, F640, F641, F642, F643, F644, F645, F646, F647, F648, F649, F650, F651, F652, F653, F654, F655, F656, F657, F658, F659, F660, F661, F662, F663, F664, F665, F666, F667, F668, F669, F670, F671, F672, F673, F674, F675, F676, F677, F678, F679, F680, F681, F682, F683, F684, F685, F686, F687, F688, F689, F690, F691, F692, F693, F694, F695, F696, F697, F698, F699, F700, F701, F702, F703, F704, F705, F706, F707, F708, F709, F710, F711, F712, F713, F714, F715, F716, F717, F718, F719, F720, F721, F722, F723, F724, F725, F726, F727, F728, F729, F730, F731, F732, F733, F734, F735, F736, F737, F738, F739, F740, F741, F742, F743, F744, F745, F746, F747, F748, F749, F750, F751, F752, F753, F754, F755, F756, F757, F758, F759, F760, F761, F762, F763, F764, F765, F766, F767, F768, F769, F770, F771, F772, F773, F774, F775, F776, F777, F778, F779, F780, F781, F782, F783, F784, F785, F786, F787, F788, F789, F790, F791, F792, F793, F794, F795, F796, F797, F798, F799, F800, F801, F802, F803, F804, F805, F806, F807, F808, F809, F810, F811, F812, F813, F814, F815, F816, F817, F818, F819, F820, F821, F822, F823, F824, F825, F826, F827, F828, F829, F830, F831, F832, F833, F834, F835, F836, F837, F838, F839, F840, F841, F842, F843, F844, F845, F846, F847, F848, F849, F850, F851, F852, F853, F854, F855, F856, F857, F858, F859, F860, F861, F862, F863, F864, F865, F866, F867, F868, F869, F870, F871, F872, F873, F874, F875, F876, F877, F878, F879, F880, F881, F882, F883, F884, F885, F886, F887, F888, F889, F890, F891, F892, F893, F894, F895, F896, F897, F898, F899, F900, F901, F902, F903, F904, F905, F906, F907, F908, F909, F910, F911, F912, F913, F914, F915, F916, F917, F918, F919, F920, F921, F922, F923, F924, F925, F926, F927, F928, F929, F930, F931, F932, F933, F934, F935, F936, F937, F938, F939, F940, F941, F942, F943, F944, F945, F946, F947, F948, F949, F950, F951, F952, F953, F954, F955, F956, F957, F958, F959, F960, F961, F962, F963, F964, F965, F966, F967, F968, F969, F970, F971, F972, F973, F974, F975, F976, F977, F978, F979, F980, F981, F982, F983, F984, F985, F986, F987, F988, F989, F990, F991, F992, F993, F994, F995, F996, F997, F998, F999, F1000, F1001, F1002, F1003, F1004, F1005, F1006, F1007, F1008, F1009, F1010, F1011, F1012, F1013, F1014, F1015, F1016, F1017, F1018, F1019, F1020, F1021, F1022, F1023, F1024, F1025, F1026, F1027, F1028, F1029, F1030, F1031, F1032, F1033, F1034, F1035, F1036, F1037, F1038, F1039, F1040, F1041, F1042, F1043, F1044, F1045, F1046, F1047, F1048, F1049, F1050, F1051, F1052, F1053, F1054, F1055, F1056, F1057, F1058, F1059, F1060, F1061, F1062, F1063, F1064, F1065, F1066, F1067, F1068, F1069, F1070, F1071, F1072, F1073, F1074, F1075, F1076, F1077, F1078, F1079, F1080, F1081, F1082, F1083, F1084, F1085, F1086, F1087, F1088, F1089, F1090, F1091, F1092, F1093, F1094, F1095, F1096, F1097, F1098, F1099, F1100, F1101, F1102, F1103, F1104, F1105, F1106, F1107, F1108, F1109, F1110, F1111, F1112, F1113, F1114, F1115, F1116, F1117, F1118, F1119, F1120, F1121, F1122, F1123, F1124, F1125, F1126, F1127, F1128, F1129, F1130, F1131, F1132, F1133, F1134, F1135, F1136, F1137, F1138, F1139, F1140, F1141, F1142, F1143, F1144, F1145, F1146, F1147, F1148, F1149, F1150, F1151, F1152, F1153, F1154, F1155, F1156, F1157, F1158, F1159, F1160, F1161, F1162, F1163, F1164, F1165, F1166, F1167, F1168, F1169, F1170, F1171, F1172, F1173, F1174, F1175, F1176, F1177, F1178, F1179, F1180, F1181, F1182, F1183, F1184, F1185, F1186, F1187, F1188, F1189, F1190, F1191, F1192, F1193, F1194, F1195, F1196, F1197, F1198, F1199, F1200, F1201, F1202, F1203, F1204, F1205, F1206, F1207, F1208, F1209, F1210, F1211, F1212, F1213, F1214, F1215, F1216, F1217, F1218, F1219, F1220, F1221, F1222, F1223, F1224, F1225, F1226, F1227, F1228, F1229, F1230, F1231, F1232, F1233, F1234, F1235, F1236, F1237, F1238, F1239, F1240, F1241, F1242, F1243, F1244, F1245, F1246, F1247, F1248, F1249, F1250, F1251, F1252, F1253, F1254, F1255, F1256, F1257, F1258, F1259, F1260, F1261, F1262, F1263, F1264, F1265, F1266, F1267, F1268, F1269, F1270, F1271, F1272, F1273, F1274, F1275, F1276, F1277, F1278, F1279, F1280, F1281, F1282, F1283, F1284, F1285, F1286, F1287, F1288, F1289, F1290, F1291, F1292, F1293, F1294, F1295, F1296, F1297, F1298, F1299, F1300, F1301, F1302, F1303, F1304, F1305, F1306, F1307, F1308, F1309, F1310, F1311, F1312, F1313, F1314, F1315, F1316, F1317, F1318, F1319, F1320, F1321, F1322, F1323, F1324, F1325, F1326, F1327, F1328, F1329, F1330, F1331, F1332, F1333, F1334, F1335, F1336, F1337, F1338, F1339, F1340, F1341, F1342, F1343, F1344, F1345, F1346, F1347, F1348, F1349, F1350, F1351, F1352, F1353, F1354, F1355, F1356, F1357, F1358, F1359, F1360, F1361, F1362, F1363, F1364, F1365, F1366, F1367, F1368, F1369, F1370, F1371, F1372, F1373, F1374, F1375, F1376, F1377, F1378, F1379, F1380, F1381, F1382, F1383, F1384, F1385, F1386, F1387, F1388, F1389, F1390, F1391, F1392, F1393, F1394, F1395, F1396, F1397, F1398, F1399, F1400, F1401, F1402, F1403, F1404, F1405, F1406, F1407, F1408, F1409, F1410, F1411, F1412, F1413, F1414, F1415, F1416, F1417, F1418, F1419, F1420, F1421, F1422, F1423, F1424, F1425, F1426, F1427, F1428, F1429, F1430, F1431, F1432, F1433, F1434, F1435, F1436, F1437, F1438, F1439, F1440, F1441, F1442, F1443, F1444, F1445, F1446, F1447, F1448, F1449, F1450, F1451, F1452, F1453, F1454, F1455, F1456, F1457, F1458, F1459, F1460, F1461, F1462, F1463, F1464, F1465, F1466, F1467, F1468, F1469, F1470, F1471, F1472, F1473, F1474, F1475, F1476, F1477, F1478, F1479, F1480, F1481, F1482, F1483, F1484, F1485, F1486, F1487, F1488, F1489, F1490, F1491, F1492, F1493, F1494, F1495, F1496, F1497, F1498, F1499, F1500, F1501, F1502, F1503, F1504, F1505, F1506, F1507, F1508, F1509, F1510, F1511, F1512, F1513, F1514, F1515, F1516, F1517, F1518, F1519, F1520, F1521, F1522, F1523, F1524, F1525, F1526, F1527, F1528, F1529, F1530, F1531, F1532, F1533, F1534, F1535, F1536, F1537, F1538, F1539, F1540, F1541, F1542, F1543, F1544, F1545, F1546, F1547, F1548, F1549, F1550, F1551, F1552, F1553, F1554, F1555, F1556, F1557, F1558, F1559, F1560, F1561, F1562, F1563, F1564, F1565, F1566, F1567, F1568, F1569, F1570, F1571, F1572, F1573, F1574, F1575, F1576, F1577, F1578, F1579, F1580, F1581, F1582, F1583, F1584, F1585, F1586, F1587, F1588, F1589, F1590, F1591, F1592, F1593, F1594, F1595, F1596, F1597, F1598, F1599, F1600, F1601, F1602, F1603, F1604, F1605, F1606, F1607, F1608, F1609, F1610, F1611, F1612, F1613, F1614, F1615, F1616, F1617, F1618, F1619, F1620, F1621, F1622, F1623, F1624, F1625, F1626, F1627, F1628, F1629, F1630, F1631, F1632, F1633, F1634, F1635, F1636, F1637, F1638, F1639, F1640, F1641, F1642, F1643, F1644, F1645, F1646, F1647, F1648, F1649, F1650, F1651, F1652, F1653, F1654, F1655, F1656, F1657, F1658, F1659, F1660, F1661, F1662, F1663, F1664, F1665, F1666, F1667, F1668, F1669, F1670, F1671, F1672, F1673, F1674, F1675, F1676, F1677, F1678, F1679, F1680, F1681, F1682, F1683, F1684, F1685, F1686, F1687, F1688, F1689, F1690, F1691, F1692, F1693, F1694, F1695, F1696, F1697, F1698, F1699, F1700, F1701, F1702, F1703, F1704, F1705, F1706, F1707, F1708, F1709, F1710, F1711, F1712, F1713, F1714, F1715, F1716, F1717, F1718, F1719, F1720, F1721, F1722, F1723, F1724, F1725, F1726, F1727, F1728, F1729, F1730, F1731, F1732, F1733, F1734, F1735, F1736, F1737, F1738, F1739, F1740, F1741, F1742, F1743, F1744, F1745, F1746, F1747, F1748, F1749, F1750, F1751, F1752, F1753, F1754, F1755, F1756, F1757, F1758, F1759, F1760, F1761, F1762, F1763, F1764, F1765, F1766, F1767, F1768, F1769, F1770, F1771, F1772, F1773, F1774, F1775, F1776, F1777, F1778, F1779, F1780, F1781, F1782, F1783, F1784, F1785, F1786, F1787, F1788, F1789, F1790, F1791, F1792, F1793, F1794, F1795, F1796, F1797, F1798, F1799, F1800, F1801, F1802, F1803, F1804, F1805, F1806, F1807, F1808, F1809, F1810, F1811, F1812, F1813, F1814, F1815, F1816, F1817, F1818, F1819, F1820, F1821, F1822, F1823, F1824, F1825, F1826, F1827, F1828, F1829, F1830, F1831, F1832, F1833, F1834, F1835, F1836, F1837, F1838, F1839, F1840, F1841, F1842, F1843, F1844, F1845, F1846, F1847, F1848, F1849, F1850, F1851, F1852, F1853, F1854, F1855, F1856, F1857, F1858, F1859, F1860, F1861, F1862, F1863, F1864, F1865, F1866, F1867, F1868, F1869, F1870, F1871, F1872, F1873, F1874, F1875, F1876, F1877, F1878, F1879, F1880, F1881, F1882, F1883, F1884, F1885, F1886, F1887, F1888, F1889, F1890, F1891, F1892, F1893, F1894, F1895, F1896, F1897, F1898, F1899, F1900, F1901, F1902, F1903, F1904, F1905, F1906, F1907, F1908, F1909, F1910, F1911, F1912, F1913, F1914, F1915, F1916, F1917, F1918, F1919, F1920, F1921, F1922, F1923, F1924, F1925, F1926, F1927, F1928, F1929, F1930, F1931, F1932, F1933, F1934, F1935, F1936, F1937, F1938, F1939, F1940, F1941, F1942, F1943, F1944, F1945, F1946, F1947, F1948, F1949, F1950, F1951, F1952, F1953, F1954, F1955, F1956, F1957, F1958, F1959, F1960, F1961, F1962, F1963, F1964, F1965, F1966, F1967, F1968, F1969, F1970, F1971, F1972, F1973, F1974, F1975, F1976, F1977, F1978, F1979, F1980, F1981, F1982, F1983, F1984, F1985, F1986, F1987, F1988, F1989, F1990, F1991, F1992, F1993, F1994, F1995, F1996, F1997, F1998, F1999

Findings and Recommendations 11 findings

F1 Page 37
Centralized cash management 2. Centralized billings 3. Centralized collection 4. Lack of uniform departmental bad debt policies Based on this audit, an Executive Summary of the findings and recommendations follows. The complete audit report is included in the Grand Jury's Final Report. 21 . 2000-2001 San Bernardino County Grand Jury Final Report Executive Summary Based on our interviews, on site observations, survey of County departments, and related analyses, it appears that the County may benefit from centralizing the process by which selected types of payments are remitted to County departments. The "centralized remittance processing" system outlined in this report will yield net financial savings to the County, primarily from re-allocation of staff time now devoted to payment processing, i.e. receiving mail, opening envelopes, routing payments, etc. In addition, the County can realize additional earnings from investment of revenue because float time can be reduced by centralizing remittance processes. Other opportunities for centralizing cash management procedures are more limited. The nature of services provided by individual departments is so diverse, and governed by such disparate regulatory mechanisms, that centralizing invoicing is impractical. However, it is possible and advantageous to standardize policies and procedures with respect to account management, especially with regard to the timely and ongoing reporting of information by departments to the Treasurer. Similarly, gains may be made by standardizing policies and procedures governing how departments handle slow pay and delinquent accounts. Our findings and recommendations are summarized in the sections that immediately follow. Details on selected departments as well as the financial schedules that form the core of our analyses are then presented in the subsequent Chapters of this report. Departmental Billings As a result of our review of the billing procedures for most of the County's departments, we have the following general findings: 1. There is no standardization of billing policies and procedures throughout the County.
No recommendations for this finding
F2 Page 38
Each County department generally provides a unique service that requires department employees to have specialized knowledge and training; consequently, billing policies and procedures have been developed by each department to deal with the individual needs of the governmental agencies, clients, customers, patients, etc. receiving services from that department.
No recommendations for this finding
F3 Page 38
Policies and procedures range from the use of complex, computerized invoicing to individually-prepared invoices. Arroyo Associates, Inc. 2000-2001 San Bernardino County Grand Jury Final Report 01-26 BASED ON THESE FINDINGS, WE HAVE THE FOLLOWING RECOMMENDATIONS: A. DUE TO THE UNIQUE NATURE OF THE SERVICES PROVIDED BY EACH DEPARTMENT, WE DO NOT RECOMMEND THAT THE COUNTY IMPLEMENT A CENTRALIZED BILLING SYSTEM. MANY OF THE BILLING PROCEDURES ARE FAR TOO COMPLEX TO INTEGRATE INTO ONE DEPARTMENT AND INTO ONE COMPUTER SYSTEM. WHILE SOME COUNTY DEPARTMENTS ISSUE A SMALL NUMBER OF INVOICES PER MONTH AND HAVE RELATIVELY SIMPLE INVOICES, WE SEE NO PARTICULAR OPERATIONAL OR COST ADVANTAGE TO CENTRALIZING THE BILLING FUNCTION OF THESE SMALLER DEPARTMENTS. B. WE DO RECOMMEND THAT THE COUNTY ADOPT A CENTRALIZED REPORTING SYSTEM FOR BILLINGS. WE SUGGEST THAT THIS REPORTING SYSTEM BE ESTABLISHED UNDER THE CONTROL OF THE COUNTY TREASURER'S OFFICE, BECAUSE THE CENTRAL COLLECTIONS FUNCTION IS ALREADY UNDER THE DIRECTION OF THAT OFFICE. THIS SYSTEM SHOULD INCORPORATE THE FOLLOWING ELEMENTS: a. REGULAR AND TIMELY REPORTING OF BILLINGS AND RECEIVABLES TO THE TREASURER b. DEPARTMENT-SPECIFIC INVOICING POLICIES c. USE OF ELECTRONIC FUND TRANSFERS, AS APPROPRIATE d. AGING OF ACCOUNTS TO BE SUBMITTED TO THE TREASURER'S OFFICE Further information on these recommendations, as well as findings and recommendations for selected departments, are given in Chapter 2 of this report. (See full Audit Report, Section II, Departmental Billings, pages 10-11, for amplification.) Arroyo Associates, Inc. 2000-2001 San Bernardino County Grand Jury Final Report Departmental Collections As a result of our review, we have the following findings: 1. Most departments open their mail by hand, process and prepare deposits manually. Also, in many departments, photocopies are taken of checks received.
No recommendations for this finding
F4 Page 40
The County Treasurer's Office has unused capacity available to accept and process deposits currently being received by each County department. Accordingly, the Treasurer can provide this service with virtually no additional capital investment and a nominal amount of incremental costs. — 01-27 IN LIGHT OF THE ABOVE FINDINGS, WE RECOMMEND THE FOLLOWING TO THE GRAND JURY: WE RECOMMEND THAT THE COUNTY BOARD OF SUPERVISORS ADOPT A POLICY REQUIRING ALL COUNTY DEPARTMENTS TO USE CENTRALIZED REMITTANCE PROCESSING. DEVELOPMENT OF THE SYSTEM FOR CENTRALIZED REMITTANCE PROCESSING SHOULD BE A COORDINATED EFFORT AMONG VARIOUS DEPARTMENTS AND THE COUNTY TREASURER'S OFFICE. THIS WILL HELP ENSURE THAT THE SYSTEM WILL FUNCTION AS INTENDED WHILE REMAINING SENSITIVE TO THE NEEDS OF INDIVIDUAL DEPARTMENTS. UNDER THIS SYSTEM, ANY REMITTANCE FROM AN OUTSIDE ENTITY OR PERSON, WHETHER BY ELECTRONIC FUNDS TRANSFER (EFT) OR CHECK, WOULD BE REQUIRED TO BE REMITTED DIRECTLY TO THE COUNTY TREASURER'S OFFICE. (See full Audit Report, Section III, Centralized Remittance Processing, pages 14-15, for amplification.) We have estimated that the County can achieve a net annual savings of $1,470,961 by adopting a centralized remittance processing system, determined as follows: Arroyo Associates, Inc. 2000-2001 San Bernardino County Grand Jury Final Report Estimated Increase In Investment Earnings from Centralized Remittance Processing $960,233 Estimated Salary and Benefits Cost Savings at the Department Level from Centralized Remittance Processing 560,000 Estimated Cost Savings from Reduction in Armored Car Services 35,728 Estimated Cost Increases in County Treasurer's Office from Centralized Remittance Processing (85,000) TOTAL $1,470,961 Details on the determination of these savings are provided in Chapter 3, Schedules 1 through 6. The table above does not include one-time costs (for software and forms) necessary to implement a centralized remittance processing system. Those costs would total approximately $200,000. In addition to the financial gains from implementing this system, the County should also realize substantially enhanced internal control. By moving remittance processing to the Treasurer's Office, the functions of billing and recordkeeping would be totally separated from most payment processing in all departments. Collection of Slow Pay and Delinquent Accounts As part of this engagement, we reviewed the written policies and procedures of the Central Collections Department, as well as the policies and procedures of the various County departments, with respect to overdue accounts. We have the following findings: Individual County Departments: a. To our knowledge, the County Board of Supervisors has not adopted any standardized collection policies and procedures that each department is required to follow. b. In practice, the individual County departments have a wide range of policies and procedures with respect to the collection of slow pay and delinquent accounts. Many departments have no written collection policies and procedures. Arroyo Associates, Inc. 2000-2001 San Bernardino County Grand Jury Final Report c. Many County departments have slow pay and delinquent accounts receivable that are not being collected fully or on a timely basis. The total value of accounts written off in 2000, as reported by respondents to our survey, was $1,292,062.
No recommendations for this finding
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For those County departments that utilize Central Collections, we recommend a "two-tier" cost structure for collection fees that are charged back against departmental operations, one for "slow pay" accounts, and another for accounts that a department decides should be assigned for collection. Details are provided in Chapter 4. Adoption of the policy described above should yield financial benefits, in the form of more timely collection of delinquent accounts. It will also yield enhanced internal control, because more information will be gathered on the status of any one account, and that information would be available centrally. If the above policy is adopted by the County Board of Supervisors and if a significant number of County departments begin to utilize Central Collections, this could result in Central Collections adding additional collection agents, and a corresponding reduction in collection costs at the department level. We have not attempted to quantify the dollar magnitude of such changes in operations. San Bernardino County Grand Jury A/F-7 Arroyo Associates, Inc II. DEPARTMENTAL BILLINGS In this Chapter, we present a summary of findings and recommendations on selected County departments and opportunities for centralized billing. Current Department Practices We have observed that each of the various County departments provides a unique service, often to many different types of clients. In addition to the complexity presented by the nature of the services themselves, those services are often governed by varying federal and/or state laws and regulations. The business of each department is therefore typically complex, and not easily standardized. A sample profile of selected departments is given immediately below. ARROWHEAD REGIONAL MEDICAL CENTER (ARMC) ARMC bills and collects approximately $400,000,000 in annual revenues. Invoices must be prepared and transmitted to a wide variety of recipients, including: Medicare/Medi-Cal · Various insurance companies Individual patients Medical billings are highly complex and require a high degree of training and experience. Also, the obtaining of confidential patient information is a critical element in the timely and accurate billing of medical claims. Generally, this information is obtained by hospital personnel in the admitting department, who work closely with the personnel involved in medical billing. AGRICULTURE The Department of Agriculture/Weights and Measures is divided into three divisions and an administrative unit. The essential duties of each Division are as follows: The Consumer Protection Division inspects weighting and measuring devices used for commercial transactions and enforces regulations dealing with the quality and marketing of produce and eggs. A/F-8 San Bernardino County Grand Jury Arroyo Associates, Inc. The Pest Prevention Division enforces plant quarantine laws, regulated plant • nurseries, certifies pest-free status for agricultural commodity shipments, and performs surveys to detect foreign pests. The Pesticide Regulatory Division regulates the use of pesticides, performs ٠ pest control work for other County Departments and select governmental agencies, and manufactures rodent baits for sale to the public. Clients include all stores using price scanners, businesses manufacturing or packing commodities for sale, gasoline stations, rock and gravel operations, farmers, pest control businesses, nurseries, other governmental organizations, supermarkets, private citizens, beekeepers, mobile home parks, ranchers and others. Services are provided at the business' or individual's site as well as in each of the Department's seven locations. Payment may be received at any of these locations. Businesses with large transactions or frequent service requests are generally invoiced for the service from the Department's main office in San Bernardino. CHILD SUPPORT SERVICES The Department of Child Support Services receives all of its program funds from State and Federal funding. All funds are received electronically. Therefore, there would be no benefit to the County of San Bernardino to change the current procedures for billing and collecting program funds. BEHAVIORAL HEALTH The Department of Behavioral Health provides services to individuals with mental health needs and alcohol or drug addiction. The Department operates or contracts for the provision of 24-hour care, day treatment, outpatient services, case management and crisis and referral services to maintain continuous care. Funds are received from State and Federal agencies, from insurance companies, and from individuals. The Department does some billings electronically depending on the funding agencies requirements and the Department receives electronic deposits from the State of California. The Department does not accept credit cards. Due to these factors, department services will be substantially more effective if employees possess the requisite, specialized knowledge and training. In turn, billing policies and procedures have been developed by each department to address the particular needs of the department and other agencies. Policies and procedures range from the use of complex, computerized invoicing to individually prepared invoices. Currently, only one County department utilizes centralized billing. The Public Defender's Office uses the County Treasurer's Office to process and mail billings. San Bernardino County Grand Jury A/F - 9 Arroyo Associates, Inc. Recommendations Regarding Centralized Billing Due to the unique nature of the services provided by each department, we do not recommend that the County implement a centralized billing system. Many of the billing procedures are far too complex to integrate into one department and into one computer system. For example, a centralized computer billing system would need to be programmed to handle the individual and unique features of all County departments. The employees of a centralized billing department would need to be trained regarding the services and unique problems of every department. In our view, such a system would be impractical, burdensome and would most likely result in a reduced service level to County clients and customers. Notwithstanding the above comments, we recommend that the County adopt a centralized reporting system for billings. We further recommend that this system be established within the County Treasurer's Office, due to the fact that the Central Collections function is already under the Treasurer's Office direction. Locating both functions in the same office will facilitate sharing of information and help ensure more efficient and effective collections processes. It will also be to the County's advantage with respect to investment to centralize billings reporting in this way. The Treasurer's Office will have ready access to the most current information on various measures that indicate the status of the County's cash management processes. This information will enhance that office's ability to best manage County investments. To establish a centralized reporting system for billings, we recommend that the County do the following: a. Adopt a policy that all County departments must report billing and receivable data to the County Treasurer's Office on a monthly basis. b. Establish a separate policy for each department, requiring that invoices be issued within a specified period of days after the County service is rendered. (The number of days in each department will depend on the nature of the service and established billing practices.) c. Establish a policy requiring that billings be submitted to governmental agencies, clients, customers, patients, etc. by electronic transmission, if this type of billing is allowable by the billing recipient. d. Require each department to produce a monthly accounts receivable aging, reporting receivables by the following due date categories: current, 30 days, 60 days, 90 days, 120 days, over 120 days. Also, require each department to submit its account receivable aging to the County Treasurer within 10 days after month end. San Bernardino County Grand Jury A/F-10 Arroyo Associates, Inc. e. Assign an employee in Central Collections the responsibility to monitor billing and receivable data on a monthly basis to assure compliance with these new policies. Department-Specific Recommendations Based on information gathered from specific departments, we are providing the following recommendations for modifying billing procedures in selected departments.
No recommendations for this finding
F7 Page 78
Clients (Please describe the general types of clients that receive services from your Department, for which they are charged a fee that you must collect) San Bernardino County Grand Jury A/F-31 Arroyo Associates, Inc. Cash Management Survey continued... 8. Points of service—where do these clients receive your services, and where do they pay for those services, if different.
No recommendations for this finding
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Number of invoices & dollar value, per month, for July 1 through December 31, 2000. July _____/ $_____ August _____/ $_____ Sept _____/ $_____October ____/ $_____ Nov _____/ $ _____________________________ 10. What proportion of annual transactions are "cash and carry?" (service received AFTER payment is made.) _____% 11. Current statement of accounts receivable (Number and dollar value--Please attach details) 12. Year-end statement of accounts receivable for 1999/2000 and 1998/99.
No recommendations for this finding
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Number and dollar value of cases forwarded to central or other collections in FY1999/00.
No recommendations for this finding
F14 Page 79
Number and dollar value of any accounts "written off" in FY1999/00.
No recommendations for this finding
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Policies and procedures regarding a. Invoicing b. Credit c. Bad debt (e.g. how is "delinquency" defined?) d. Documentation, management of accounts receivable (e.g. are accounts aged?) 16. Does your Department automate any part of its invoicing and collections processes? (e.g. automatic triggering of follow-up invoices after a certain number of days) THANK YOU AGAIN FOR YOUR COOPERATION! Arroyo Associates, Inc. A/F-32 San Bernardino County Grand Jury APPENDIX C-DEPARTMENT DATA Staffing Budget (GenFd) Clients Department Invoices Total Total Mo. Average Proj. Annual Number Value Stores using price scanners, Agriculture 68 S 4,490,832 businesses manufacturing or packing 569 $2,915,830 $208,466 Pilots, smail businesses, govt 29 Airports 2,415,182 agencies $2,729,186 s 365 $227,432 Arrownead Patients 36,206 $ 35,517,683 $426,212,198 Public, cities, water districts, title companies, private businesses 210 $ 10,684,193 Assessor 36 $6,789 $81,473 Auditor 176 $ 10,415,522 1,082 $1,500,680 $18,008,160 Mentaliv III, substance abusers, & people receiving public/ social 770 S 93,093,633 Behavioral Health 2,522 $29,082,159 $2,423,513 435 5 28,967,187 District Attorney n/a n/a $22,000,000 County Fire Total 1,467 $502,757 $6,033,086 Residents of community (Info for all fire districts inc) Ambulance Billing 329 $278,438 $3,341,258 OES, ColtonFD, Moreno Valley FD, SB 30 Airport, SBCC, & City of Loma Linda Auto parts/repairs 3 $4,771 $57,249 Persons/ businesses in community Cost Recovery that req. emergency response in 1 53 $56,949 $683,389 Businesses w/underground storage Hazmat Permit Billing tanks, generator or hazardous waste 1,083 $162,599 $1,951,192 HumRes/RiskMgt 53 $ 6,243,653 | Departments and employees 46 $40,585 $487,017 Information Services 378.2 $ 41,576,646 Internal Service (SBCty) 36 $146,948 $1,763,374 Building Safety, Code Enforcement, 138 $ 14,035,684 planning, habitat conservation, weed Land Use Services 398 $4,325,932 $360,494 200.1 $ 10,747,614 Library Patrons Library n/a $47,915 $574,982 Public Works Total $ 149,728,247 $2,798,857.90 $ 33,586,294.74 1,012 Transport-Permits 305 336 s 27,450.33 $329,404 28,454,735 Public, other govts, businesses Transport-Misc 305 $ 5 S 427,064.54 $5,124,775 Flood Control 151 Pubłic, govts, businesses 17 $ 58,434.09 $677,209 5 GIMS $ 415,127 8 $3,721 $44,650 50 Regional Parks $ 11,593,924 301 $68,199 $818,382 34,6 S Surveyor 905,817 100 $5,934 $71,205 Haulers, military, cities, businesses, $ 64,793,569 individuals Solid Waste 246 $2,210,058 $26,520,670 Other County Depts., Other govt Real Estate 24 S 1,037,016 agencies 34 $13,261 $159,132 All cities, school districts, college 32 2,882,194 districts, and special districts located $ Registrar of Voters 12 $288,313 $3,579,754 $ Sheriff 226,635,524 Other govt agencies. 53 $4,708,983 $56,507,800 Taxpayers- property tax collection; Treasurer/Tax Collector $ 4,820,510 Invest- Manage funds for Co., schools 55.3 $353,427,669 $1,060,283,006 Courts, Arrowhead Medical Center. 88.5 $ 6,142,170 Public Defender and othe Co. Depts Central Collections $452,460 $5,429,514 Vehicle Services 113 $ 21.042,623 | Govt agencies 26 $98,187 $1,178,242 $790,552 Water and Sanitation 10,805 $9,486,620 property owners and contractors Crestline Sanitation Homeowners, businesses, schools $167,998 $2,015,980 2,736 TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL $403,287,084 $1,681,010,227 AVERAGE $21,225,636 $84,050,511 3,376 A/F-33 San Bernardino Grand Jury Arroyo Associates, Inc. APPENDIX C-DEPARTMENT DATA Department Accounts Receivable Accounts to Central Collections Current 2000 Number Amount Number Amount Number Amount Apriculture 22 $ 299,501.69 2 $ 21,716.44 64 S 6,100.33 Airports 220 $ 284,593.96 n/a 7 8 r√a 240,667.39 Arrownead 205,769 $ 170,826,322.00 215,278 $ 161,305,874.00 80368 $ 58,433,197.00 Assessor 68 $ 15,918.20 324 $ 181,522,60 0 $ ٠ Auditor 187 $ 1,702,290.00 131 $ 64,952.00 453 $ 29,019.00 Behavioral Health 2,443 2,320,834,71 $ r/a 314 n/a $ 142,458.66 District Attorney rva n/a n/a n/a r/a n/a County Fire Total 2,485 $ 968,583.38 2,017 $ 1,537,885.29 411 $ 260,231.85 Ambulance Billing 2,294 $ 748,158.00 1,758 $ 1,150,640.00 383 $ 252,015.00 Auto parts/repairs $ n/a 4,504.15 n/a ŝ 135,821.34 0 $ Cost Recovery $ 191 96,168.75 259 $ 124,287.31 28 $ 8,216.85 Hazmat Permit Billing $ 121,754,48 rva r/a $ 127,136.64 r/a n/a HumRes/RiskMgt n/a n/a n/a n/a na n/a Information Services 149 $ 450,044.29 n/a $ 10,420.00 ol s Land Use Services rva r/a n/a rva < 50 n/a Library n/a n/a n/a n/a n/a n/a Public Works Total $ 621 7,193,152.78 182 $ 6,252,893.58 21 $ 11,662.63 Transport-Permits 83 S 11,022.00 n/a 0 $ r/a Transport-Misc 76 $ 3,619,960.49 40 $ 1,749,376.38 21 $ 11,662.63 Flood Control 39 $ 128,970.80 39 $ 20,196.54 ol s GIMS 35 $ 10,535.00 16 $ 3,431.00 ol s ٠ Regional Parks nα n/a n/a $ 231,639.00 0 $ ٠ Surveyor $ 92 4,009.49 $ 87 5,101.66 0 $ ٠ Solid Waste 296 $ 3,418,655.00 n/a $ 4,243,149.00 ol s ٠ Real Estate 25 $ 8,576.39 n/a 0| $ n/a Registrar of Voters $ 14 1,019,672.91 19 $ 1,318,678.00 0 $ - Sherilf n/a $ 7 4,900,000.00 $ $ 17,073,784.00 0 Treasurer/Tax Collector $ 600,676,390.00 rva. $ 51,960,432.00 rva 6000 Central Collections n/a n/a n/a n/a n/a n/a $ Vehicle Services 134 399,004.52 57 $ 151,034.58 0 $ Water and Sanitation 9,709 604,947.41 $ n/a 447,980,00 411 $ 66,812.82 Crestline Sanitation 331,958.76 4,553 4,224 217,858.13 39 $ 4,411.03 TOTAL $226,399 7505792,001,781 2222,241 50 $240,545,011 88,088 AVERAGE $49,500,112 16,171 22,224 $18,503,462 5,506 $3,946,304 Note: Regional Parks Undergoing major reorganization in July 2000, in process of automating Accounts Receivable. Note: Central Collections received a total of 104,170 accounts totaling $63,205,366 in court fines and delinquent county accounts in FY99/00. A/F-34 San Bernardino Grand Juru Arrovo Associates. Inc. APPENDIX C-DEPARTMENT DATA Personnel Total FTE Involved Payment involved in in Remittance Remittance Frequency of Transactions per Processing Processing Deposits Month Age Accounts? Written Off Accounts Department Number Amount 0.5 26 700 $ weekly None . yes Agriculture 1 3 300 7 $ 8,253.37 weekly yes Almons 7 3.75 18,132 n/a daily r√a ПO Arrowhead 0.20 2 35 weekly ol $ īΟ Assessor . 5 1 dally 110 0| $ Auditor ٠ 2 2 115 dally 1229 $ 304,228.22 yes Behavioral Health 2 2 45 dally n/a n/a n/a District Attorney 7 7 2,000 34 $ 972,599.69 County Fire Total ٠ 2 2 dally n/a $ 950,901.00 765 Ambulance Billing 1 1 dally n/a 0 $ no Auto parts/repairs 1 1 n/a $ 6,092.71 dally yes Cost Recovery 1 1 34 dally n/a $ 15,605.98 yes Hazmat Permit Billing 0.2 40 3 n/a ol $ r/a HumRes/RiskMgt ol s weekly no . Information Services 0.1 dally 4 1 n/a no Land Use Services n/e 0.2 350 1 n/a n/a No various Library 17 1.20 $ 1,630 3,100.00 Public Works Total n/a 0 $ 2-3 times/week n/a n/a Transport-Permits nο 0.16 1 $ 3,100.00 2-3 times/week 70 3 no Transport-Misc 0.20 3 0 $ 2-3 times/week 87 Flood Control ΠQ ٠ 0.03 3 10 0 5 weekly no GIMS ٠ 0.13 3 0 5 weekly Regional Parks no . 0.17 4 79 0 $ weekly ΠO . Surveyor 0.5 1,384 1 ol $ dally DO Solid Waste . weekly 이 $ Real Estate . 0.01 5 2 ol $ weekly ПΦ Registrar of Voters • 1.7 60 4 2 times/week ol $ no Sherlff • n/a n/a n/a rva n/a 0 $ Treasurer/Tax Collector . n/a n/a n/a r/a n/a r/a Central Collections n/a r√a weektv 0|5 Vehicle Services . 0.99 10,707 daily 4 286 n a Water and Sanitation yes 2 0.29 2,072 3,880.32 daily 33) yes $ Crestline Sanitation 88-17-17-17-17-17-17-17-17-17-17-17-17-17- 4.5 (A) (A) (A) (A) (A) (A) (A) (A) (A) (A) 21:592 44 3:$1.292.062 - - - - - - - - - - - - - - - - - - - TOTAL WEST OF STREET 6 2413 1 $86,137 AVERAGE 106 A/F-35 Arroyo Associates, Inc. San Bernardino Grand Jury COMPLAINTS COMMITTEE 33 Al Alcantara, Chair Harry Carson, Sr. Robert Grube Roxanne Orrock Morris Wiley H 111111 2000-2001 San Bernardino County Grand Jury Final Report COMPLAINTS COMMITTEE One of the functions of the Grand Jury is to review complaints from the general public. The Complaints Committee reviews all complaints submitted to the Grand Jury on the standard complaint form. Each complaint is treated in the strictest confidence and reviewed only by the Complaints Committee, unless it is deemed appropriate to forward it to the proper committee for action. During the period July 1, 2000 to June 30, 2001 the Grand Jury received 18 complaints. One was assigned to the Economic Development/Public Services Committee and one to the Internal Services Committee for further reviews. Six were found not to be within the Grand Jury's jurisdiction, and ten were found to be within our jurisdiction. Each complainant was informed when no action was taken on his or her complaint. ECONOMIC DEVELOPMENT/ PUBLIC SERVICES COMMITTEE Dolores Barrow, Chair Robert Burkhardt Abraham Hovsepian Robert Kissinger Jenny Overton Richard McFadden Patricia Murray Jack Reilly Morris Wiley ECONOMIC DEVELOPMENT/ PUBLIC SERVICES COMMITTEE Introduction Airports Department Economic and Community Development Department Land Use Services Department County Library Public Works Department Geographic Information Management System (GIMS) . 2000-2001 San Bernardino County Grand Jury Final Report ECONOMIC DEVELOPMENT/ PUBLIC SERVICES COMMITTEE The Economic Development/Public Services Committee was charged with the review and investigation of the operations and functions of the following County departments: Agriculture/Weights & Measures Airports County Fire / Office of Emergency Services Economic and Community Development Jobs & Employment Services Land Use Services Library Museums Public Works / GIMS Redevelopment Agency Registrar of Voters Special Districts The Economic Development/Public Services Committee established subcommittee teams to review the operation and function of each department. Visitations were made to all twelve departments of this committee's responsibility. Following the interviews and investigations, there were no recommendations for the following departments: Agriculture/Weights & Measures County Fire / Office of Emergency Services Jobs & Employment Services Museums Redevelopment Agency Registrar of Voters Special Districts The subcommittee team efforts led to the following final reports. 33 2000-2001 San Bernardino County Grand Jury Final Report AIRPORTS DEPARTMENT BACKGROUND The San Bernardino County Airports Department provides for the management, maintenance and operation of six County-owned airports. They include Apple Valley, Baker, Barstow-Daggett, Chino, Needles and Twentynine Palms. Revenue to operate and maintain the airports is generated from fuel sales, hangar and land leases, and State and Federal grant programs. The mission of the Department of Airports is to manage, develop, operate and maintain the Airports system in a safe and fiscally responsible manner on behalf of the citizens of San Bernardino County. FINDINGS BARSTOW-DAGGETT AIRPORT The Barstow-Daggett Airport will lose income when the County Sheriff's Department and the California Highway Patrol move to other locations within the county. Hangar space is available, although rehabilitation is necessary. The manager oversees four other airports in addition to Barstow- Daggett. The manager has responsibility for a newly built swimming pool and new utilities supplied by the Federal government, as well as general upkeep and maintenance of airport facilities. The Federal Aviation Administration (FAA) provides entitlement money under Congressional Bill Air-21 allocations. These funds can accumulate for a period of three years. The Barstow-Daggett share is $60,000. A new wastewater treatment plant has been completed and is in use, and the County receives only cost recovery income from its use. A railroad spur on the property is useable, but needs repair. Advertising for rental clients is done through websites, magazines, newsletters, workshops and conferences. 34 2000-2001 San Bernardino County Grand Jury Final Report As a World War II Flight Training Center, the Barstow-Daggett Airport has historical value. RECOMMENDATIONS - 01-29 CONTINUE AGGRESSIVELY SEARCHING FOR NEW LEASE TENANTS FOR THE BARSTOW-DAGGETT AIRPORT. 01-30 DEVELOP A MARKETING PLAN FOR BARSTOW-DAGGETT AIRPORT. 01-31 USE THE FEDERAL AVIATION ADMINISTRATION ALLOCATION TO BARSTOW-DAGGETT AIRPORT TO REPAIR AND UPGRADE EXISTING FACILITIES. < 01-32 IN CONJUNCTION WITH THE SAN BERNARDINO COUNTY REGIONAL PARKS SYSTEM, UTILIZE THE BARSTOW-DAGGETT AIRPORT'S UTILITIES FOR A NEW AND VALUABLE INCOME- PRODUCING ADDITION TO THE COUNTY REGIONAL PARKS SYSTEM, INCLUDING A RECREATIONAL VEHICLE PARK. HAVE THE COUNTY REGIONAL PARKS SYSTEM ASSUME THE EXISTING FACILITIES AND UTILITIES AT BARSTOW-DAGGETT AIRPORT. FINDINGS APPLE VALLEY AIRPORT A new runway completed in the last two years at Apple Valley Airport, including east/west runway lights (not approved for night use by FAA), needs obstruction lights on hills at both ends of the runway. The airport is funded by special districts and receives one percent (1%) ad valorem tax money. Two hundred eleven (211) acres were purchased south of the airport to avoid encroachment. There is a need to construct more hangars to accommodate Apple Valley and Victorville pilots who may desire to move from other airports. The County may lose lease clients due to the slowness of the Request for Proposal (RFP) process. Groundbreaking for a new law enforcement center at the airport is anticipated for the third quarter of 2001. 35 2000-2001 San Bernardino County Grand Jury Final Report The FAA provides entitlement money of $150,000 to Apple Valley Airport under Congressional Bill Air-21 allocations. These funds can accumulate for a period of three years.
No recommendations for this finding
F2000 Page 33
On December 31, 1999 the Court terminated its contract with a private collections firm that collected Court-ordered fees and fines. Per State legislation, any amount of Court collections over and above amounts collected over the base year 1994-1995 is to be split 50-50 between the County and the State. FINDINGS The collection of delinquent fees and traffic fines did not begin until March 19, 2001. As of March 2001, only current delinquent cases are being collected. Current delinquent accounts are those accounts that failed to appear or pay during the current month only. Since no collections were made between January 1, 2000 and March 19, 2001 there is reputed to be a sum in excess of one million dollars still outstanding. 17 2000-2001 San Bernardino County Grand Jury Final Report The Treasurer-Tax Collector does not have the total of the dollars involved between January 1, 2000 and March 19, 2001. The Courts have not given this information to the Treasurer-Tax Collector's office or any other County agency. No analysis of aging, based on total receivables and characteristics on these accounts has been made. The Grand Jury inquired of the Court Executive Office for information on past due court fines and fees and was advised that there are no records of dollar amounts since January 1, 2000.
No recommendations for this finding

Commendations 5

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.