Orange County Auditor-controller September 13, 2019 The Honorable Kirk H. Nakamura Presiding Judge of the Superior Court*

The Auditor Controller's department identity as a "taxpayer watchdog", complete with a "bulldog logo", created an adversarial image for some members of the Board of Supervisors. Response: Agrees with the finding. The late Auditor-Controller, Eric Woolery, did not intend to create an adversarial image. As stated in the Grand Jury report, the watchdog branding was meant to encourage fiscal responsibility, such as recognizing individuals in the community "who [exhibit] excellence in monitoring public money." The logo was created at the direction of the late Auditor-Controller. The next Auditor-Controller may choose to retain, modify, or end this image.

The need for the Auditor Controller's "Community and Government Relations" team has been questioned by the Board of Supervisors. Response: Agrees with the finding. The Grand Jury found a number of other County Auditor- Controllers with similar units.

Realignment of the Internal Audit Department from the Auditor Controller to the Board of Supervisors has reduced staff mobility and cross training and may have adversely affected morale. Response: Agrees with the finding. Staff mobility and cross training have been significantly reduced, requiring a transfer application and interview for employees wishing to expand their accounting and auditing skills. This contributes to lower morale, as it hinders employees' career paths.

Disagreements between the Board of Supervisors and the Auditor Controller's Office over Supervisor mailers and a controversial pension payment were argued in the public arena, creating public dismay as well as distrust between the departments. Response: Agrees with the finding. Although there were initially public conflicts over Supervisorial mailers, subsequent conflicts were prevented by developing a process in which County Counsel would confirm the legality of each mailer before payment.