Stanislaus County Grand Jury • 2003-2004

Reason for Investigation The Civil Grand Jury conducted an investigation of the Chief Executive Officer and the

Published: July 08, 2003 4 pages
Ver PDF original

Findings and Recommendations 18 findings

F1
Section 2.08.010(A) of the Stanislaus County Code states, in part, “The CEO shall act under the supervision of the board of supervisors and be subject to its direction.”
No recommendations for this finding
F2
The CEO’s most recent employment agreement with the County was entered into on May 6, 2002 and was valid from June 30, 2002 through June 30, 2007.
No recommendations for this finding
F3
Section 6.01 of that Agreement states, “Employee may terminate his obligation under this Agreement by giving County at least One Hundred Eighty (180) days notice in advance…”
No recommendations for this finding
F4
Section 6.04 of the May 6, 2002 Agreement also states that, “Employee may be terminated for cause under the following conditions … (3) For any material breach of this Agreement, insubordination, or gross negligence in performing his duties as included in this Agreement and set forth in Stanislaus County Code Chapter 2.08.” This revision was not found in the May 13, 1997 Agreement.
No recommendations for this finding
F5
The May 6, 2002 Section 6.03 states that if terminated for cause, the Employee would not receive severance pay.
No recommendations for this finding
F6
The CEO resigned his duties effective July 8, 2003.
No recommendations for this finding
F7
Following the CEO’s resignation on July 8, 2003, Stanislaus County entered into an Amendment to the earlier employment agreement on July 22, 2003. The Amendment provided for mutual promises, terms and conditions under the May 6, 2002 agreement which had terminated. The Amendment allowed him to remain as a “management employee” of the Stanislaus County until October 15, 2003 to assist their staff in specific areas.
No recommendations for this finding
F8
In the Amendment to the Employment Agreement, Stanislaus County agreed to pay the CEO a total of six months’ salary plus benefits.
No recommendations for this finding
F9
Section 2.02 of the May 6, 2002 employment agreement states, “This agreement shall not be interpreted to prohibit Employee from making personal investments or conducting private business affairs otherwise legally allowed by applicable statutes, ordinances and regulations.” 25
No recommendations for this finding
F10
Stanislaus County Code Section 2.08.040, last sentence, states, “The CEO shall not engage in any other business or occupation during their appointment without prior approval of the board.”
Related Recommendations (1)
R2
The Board of Supervisors must enforce all provisions of the employment contracts of employees.
F11
The CEO did not receive approval by the Stanislaus County Board of Supervisors to engage in any other business activities outside his duties.
Related Recommendations (2)
R1
The Board of Supervisors must be diligent in overseeing the activities and expenditures of the CEO. They must have in place a monitoring system whereby the activities, and especially the expenditure records, of the CEO are periodically monitored.
R2
The Board of Supervisors must enforce all provisions of the employment contracts of employees.
F12
The CEO engaged in business arrangements with DTW Energy Corporation and Stanislaus Energy Partners. These activities were a matter of public record as of 4/4/03, as presented in the CEO’s statements in the Superior Court Case # 321449.
Related Recommendations (2)
R1
The Board of Supervisors must be diligent in overseeing the activities and expenditures of the CEO. They must have in place a monitoring system whereby the activities, and especially the expenditure records, of the CEO are periodically monitored.
R2
The Board of Supervisors must enforce all provisions of the employment contracts of employees.
F13
In Paragraph 14 of July 22, 2003 Amendment to the Employment Agreement, the CEO agreed to “resign any Director, Officer or Executive position he currently holds with DTW Energy Corporation and Stanislaus Energy Partners for which he has a personal business interest…”
No recommendations for this finding
F14
On April 4, 2003, in Stanislaus Superior Court Case # 321449, the CEO stated in his Responsive Declaration, “I am the President of DTW Energy Corporation. … I am entitled to a Director fee of $1500 per month…”
No recommendations for this finding
F15
Section 2.08.030 of the County Code states in part, “The CEO is entitled to all actual and necessary budgeted expenses for conducting county business…”
No recommendations for this finding
F16
Section 29741 of the California Government Code requires the County Auditor to “allow or reject claims” for expenditures by County officials.
No recommendations for this finding
F17
The Policies and Procedures of the Stanislaus County Auditor titled “Trip Authorization, Travel and Purchasing Cards” and “A/P Claims Process” require that all claims for payment to an employee or an outside source be backed up by supporting documentation explaining and justifying the expense.
Related Recommendations (1)
R3
The County Auditor’s staff must be diligent in scrutinizing claims for credit card payments, regardless of who the payee is. They must adhere to all state and county codes as well as all policies it establishes. 27
F18
An independent audit of the CEO’s expenses, conducted in September, 2003 by the independent accounting firm, after the CEO’s employment ended, cited claims that were paid by the County Auditor without proper documentation. CONCLUSIONS
Related Recommendations (2)
R1
The Board of Supervisors must be diligent in overseeing the activities and expenditures of the CEO. They must have in place a monitoring system whereby the activities, and especially the expenditure records, of the CEO are periodically monitored.
R3
The County Auditor’s staff must be diligent in scrutinizing claims for credit card payments, regardless of who the payee is. They must adhere to all state and county codes as well as all policies it establishes. 27

Conclusions 9

No Responses Found 2

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

Stanislaus County Auditor-Controller Elected County Office
Stanislaus County Board of Supervisors Elected County Office