Score: +7
(7/7/0)
Humboldt County Grand Jury
• 2021-2022
Preface The Humboldt County Civil Grand Jury conducted an investigation of Humboldt County's financial management and
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 17 findings
F1
The Office of the Auditor-Controller lacks institutional knowledge due to staff turnover and with outdated written policies and procedures in place; therefore, staff in the Auditor-Controller’s office interpret procedures on a case-by-case basis, without certainty that their interpretation is correct. (R1, R3)
Related Recommendations (2)
R1
The Humboldt County Civil Grand Jury recommends the Auditor-Controller develop and maintain an accessible (and regularly updated) written and comprehensive operations policy and procedures manual that is available to current staff and new-hires. The Grand Jury recommends a draft manual be completed by Dec. 31, 2022, and fully implemented by July 1, 2023. (F1, F2, F4, F14)
R3
The Humboldt County Civil Grand Jury recommends the Auditor-Controller, in cooperation with financial managers from County departments, develop an agreed-upon written process for recommending, implementing, and giving notice of changes to financial procedures. This should be completed by Oct. 1, 2022. (F1, F4, F10, F11, F14)
F2
To address the lack of written procedures, the Auditor-Controller introduced several new operating strategies that improved Humboldt County fiscal operations into the future.
Related Recommendations (3)
R1
The Humboldt County Civil Grand Jury recommends the Auditor-Controller develop and maintain an accessible (and regularly updated) written and comprehensive operations policy and procedures manual that is available to current staff and new-hires. The Grand Jury recommends a draft manual be completed by Dec. 31, 2022, and fully implemented by July 1, 2023. (F1, F2, F4, F14)
R4
The Humboldt County Civil Grand Jury recommends the Auditor-Controller provide accessible, written policies and procedures to County departments, school and special districts and other organizations for which financial services are provided. These will clearly state terminology and methods required by the Auditor-Controller. The Grand Jury recommends this be completed by Dec. 31, 2022, as part of the policies and procedures manual development. (F2, F4, F10, F11, F14)
R8
The Humboldt County Civil Grand Jury recommends the Board of Supervisors establish an Advisory Committee to include the County Administrative Officer, Auditor- Controller and Board appointees of no less than three other elected officers or department heads. This committee may include a facilitator to help enable the transfer of institutional 22 knowledge, set goals and build on complementary strengths. The Grand Jury recommends this committee be established by Oct. 1, 2022. (F2, F4, F5, F6)
F3
The Auditor-Controller did not submit a proposed budget to the County Administrative Office for Fiscal Years 2020/2021, 2021/2022, or 2022/2023 where, per established procedures, staffing requests are to be made. (R5, R6)
Related Recommendations (2)
R5
The Humboldt County Civil Grand Jury recommends the Auditor-Controller follow established procedures by submitting an annual budget proposal to the County Administrative Office for Fiscal Year 2022/2023, and for each subsequent fiscal year. (F3, F6)
R6
The Humboldt County Civil Grand Jury recommends that with the Fiscal Year 2022/2023 budget request, the Auditor-Controller submit a plan to meet operational requirements, including staffing requirements needed to achieve the plan's goal. When the budget request is approved, the plan, which will reduce the need for the County to hire consultants, should be implemented by June 30, 2023. (F3, F6)
F4
The Auditor-Controller and County departments have different interpretations of fiscal policies; therefore, they utilize different operational reporting structures and technology resulting in inefficient operations and delayed budget and audit reporting. (R1, R2, R3, R4)
Related Recommendations (5)
R1
The Humboldt County Civil Grand Jury recommends the Auditor-Controller develop and maintain an accessible (and regularly updated) written and comprehensive operations policy and procedures manual that is available to current staff and new-hires. The Grand Jury recommends a draft manual be completed by Dec. 31, 2022, and fully implemented by July 1, 2023. (F1, F2, F4, F14)
R2
The Humboldt County Civil Grand Jury recommends that when the policy and procedures manual is adopted, the following specific items be included: a) When procedures are updated, give advanced written notification to all County departments of all changes, including chart of account object lines. b) Restrict changes to the chart of accounts to the first day of a fiscal year. (F4, F10, F11, F14)
R3
The Humboldt County Civil Grand Jury recommends the Auditor-Controller, in cooperation with financial managers from County departments, develop an agreed-upon written process for recommending, implementing, and giving notice of changes to financial procedures. This should be completed by Oct. 1, 2022. (F1, F4, F10, F11, F14)
R4
The Humboldt County Civil Grand Jury recommends the Auditor-Controller provide accessible, written policies and procedures to County departments, school and special districts and other organizations for which financial services are provided. These will clearly state terminology and methods required by the Auditor-Controller. The Grand Jury recommends this be completed by Dec. 31, 2022, as part of the policies and procedures manual development. (F2, F4, F10, F11, F14)
R8
The Humboldt County Civil Grand Jury recommends the Board of Supervisors establish an Advisory Committee to include the County Administrative Officer, Auditor- Controller and Board appointees of no less than three other elected officers or department heads. This committee may include a facilitator to help enable the transfer of institutional 22 knowledge, set goals and build on complementary strengths. The Grand Jury recommends this committee be established by Oct. 1, 2022. (F2, F4, F5, F6)
F5
The Board of Supervisors is responsible for the administration and management of the County’s business practices; however, the Supervisors did not respond in an effective manner to information provided to them regarding dysfunction on many levels between the County Administrative Officer, Auditor-Controller, other elected officials, and department directors. (R7, R8, R9, R10)
Related Recommendations (3)
R7
The Humboldt County Civil Grand Jury recommends that when notified of conflicts between elected and appointed officials, the Board of Supervisors act promptly to investigate and take necessary actions. (F5)
R8
The Humboldt County Civil Grand Jury recommends the Board of Supervisors establish an Advisory Committee to include the County Administrative Officer, Auditor- Controller and Board appointees of no less than three other elected officers or department heads. This committee may include a facilitator to help enable the transfer of institutional 22 knowledge, set goals and build on complementary strengths. The Grand Jury recommends this committee be established by Oct. 1, 2022. (F2, F4, F5, F6)
R10
The Humboldt County Civil Grand Jury recommends the County Administrative Officer and the Auditor-Controller establish effective communications in person, by telephone and by email, actively seeking mutual agreements for the general welfare of the County. (F5, F6)
F6
Humboldt County Code, Sec. 241-6(a) requires the County Administrative Officer and the Auditor-Controller to cooperate in the preparation of the County’s annual budget. There is a general obligation that the two offices collaborate to ensure fiscal responsibility; however, this is being obstructed by a breakdown of trust and communications between the two offices. (R5, R6, R8)
Related Recommendations (4)
R5
The Humboldt County Civil Grand Jury recommends the Auditor-Controller follow established procedures by submitting an annual budget proposal to the County Administrative Office for Fiscal Year 2022/2023, and for each subsequent fiscal year. (F3, F6)
R6
The Humboldt County Civil Grand Jury recommends that with the Fiscal Year 2022/2023 budget request, the Auditor-Controller submit a plan to meet operational requirements, including staffing requirements needed to achieve the plan's goal. When the budget request is approved, the plan, which will reduce the need for the County to hire consultants, should be implemented by June 30, 2023. (F3, F6)
R8
The Humboldt County Civil Grand Jury recommends the Board of Supervisors establish an Advisory Committee to include the County Administrative Officer, Auditor- Controller and Board appointees of no less than three other elected officers or department heads. This committee may include a facilitator to help enable the transfer of institutional 22 knowledge, set goals and build on complementary strengths. The Grand Jury recommends this committee be established by Oct. 1, 2022. (F2, F4, F5, F6)
R10
The Humboldt County Civil Grand Jury recommends the County Administrative Officer and the Auditor-Controller establish effective communications in person, by telephone and by email, actively seeking mutual agreements for the general welfare of the County. (F5, F6)
F7
With transactions of more than $5 million per day by the Treasurer-Tax Collector, failure to reconcile cash and investment accounts creates a general lack of transparency and possible General Ledger posting errors. These include bank transactions or debits and credits to funds overseen by the Treasurer-Tax Collector and the Auditor-Controller, which may be over or understated, thereby compromising the integrity of financial statements. (R11)
Related Recommendations (1)
R11
The Humboldt County Civil Grand Jury recommends the Auditor-Controller and Treasurer-Tax Collector begin reconciling cash and investment accounts for which they are responsible no later than the last day of each month for the preceding month as required by Government Code §26905. The Grand Jury recommends this commence at the beginning of the new fiscal year on July 1, 2022. (F7)
F8
The Auditor-Controller notified the Treasurer-Tax Collector that a “certificate of the auditor” would no longer be provided as a receipt for deposits to the Treasury but did not establish an alternative control procedure as provided by statute and recommended by the Treasurer-Tax Collector. (R12) 20
Related Recommendations (1)
R12
The Humboldt County Civil Grand Jury recommends the Auditor-Controller either reinstate issuing “certificates of the auditor” or reach an agreement with the Treasurer- Tax Collector for an alternative control procedure as directed by Government Code §27008. The Grand Jury recommends this commence at the beginning of the new fiscal year on July 1, 2022. (F8)
F9
The Auditor-Controller did not file financial reports and audits on time as required by the Federal Government and the State of California in 2019, 2020, 2021 and 2022, causing loss of substantial public funds to the County, schools and special districts, and putting past, current, and future funds at risk. (R13, R14)
Related Recommendations (2)
R9
The Humboldt County Civil Grand Jury recommends the Advisory Committee convene on a regularly scheduled monthly basis or more frequently whenever a majority of the members deems it desirable or necessary. Effective upon establishment of the committee. (F5, R8)
R13
The Humboldt County Civil Grand Jury recommends the Auditor-Controller file all required financial reports and audits by their due dates, beginning with the next required report. (F9, F13)
F10
The Auditor-Controller made changes to the chart of accounts and object lines resulting in deletion of data leading to the inability for County programs to make claims for reimbursements. (R2, R3, R4)
Related Recommendations (3)
R2
The Humboldt County Civil Grand Jury recommends that when the policy and procedures manual is adopted, the following specific items be included: a) When procedures are updated, give advanced written notification to all County departments of all changes, including chart of account object lines. b) Restrict changes to the chart of accounts to the first day of a fiscal year. (F4, F10, F11, F14)
R3
The Humboldt County Civil Grand Jury recommends the Auditor-Controller, in cooperation with financial managers from County departments, develop an agreed-upon written process for recommending, implementing, and giving notice of changes to financial procedures. This should be completed by Oct. 1, 2022. (F1, F4, F10, F11, F14)
R4
The Humboldt County Civil Grand Jury recommends the Auditor-Controller provide accessible, written policies and procedures to County departments, school and special districts and other organizations for which financial services are provided. These will clearly state terminology and methods required by the Auditor-Controller. The Grand Jury recommends this be completed by Dec. 31, 2022, as part of the policies and procedures manual development. (F2, F4, F10, F11, F14)
F11
Department financial managers have reported changes by the Auditor-Controller to financial procedures made without timely notification or consultation are disruptive to their departments. (R2, R3, R4)
Related Recommendations (3)
R2
The Humboldt County Civil Grand Jury recommends that when the policy and procedures manual is adopted, the following specific items be included: a) When procedures are updated, give advanced written notification to all County departments of all changes, including chart of account object lines. b) Restrict changes to the chart of accounts to the first day of a fiscal year. (F4, F10, F11, F14)
R3
The Humboldt County Civil Grand Jury recommends the Auditor-Controller, in cooperation with financial managers from County departments, develop an agreed-upon written process for recommending, implementing, and giving notice of changes to financial procedures. This should be completed by Oct. 1, 2022. (F1, F4, F10, F11, F14)
R4
The Humboldt County Civil Grand Jury recommends the Auditor-Controller provide accessible, written policies and procedures to County departments, school and special districts and other organizations for which financial services are provided. These will clearly state terminology and methods required by the Auditor-Controller. The Grand Jury recommends this be completed by Dec. 31, 2022, as part of the policies and procedures manual development. (F2, F4, F10, F11, F14)
F12
Departments, other than that of the Auditor-Controller, are not able to utilize Finance Enterprise workflow modules to submit journal entries, invoices and accounts receivable as well as run reports. This requires information to be entered into spreadsheets and transmitted to the Auditor-Controller’s office, where staff in that office, in a duplication of effort, enters the same information into Finance Enterprise. (R15)
Related Recommendations (1)
R15
The Humboldt County Civil Grand Jury recommends the Auditor-Controller provide training to fiscal staff in all County departments to properly use the workflow modules of Finance Enterprise and authorize trained employees to use those modules to submit journal entries, invoices and accounts receivable as well as run reports. This will reduce redundancy on a countywide basis. Training to be completed and Finance Enterprise access permission to be given by Dec. 31, 2022. (F12)
F13
The County paid unnecessary credit card interest; lost bank interest; paid for consultants to assist with finances and other professional or personnel services; faced delays in receiving funds; paid fines and late fees; and missed opportunities to secure grants. These losses were the results of payments or required reports not submitted on time by the Auditor-Controller. (R13, R14)
Related Recommendations (1)
R13
The Humboldt County Civil Grand Jury recommends the Auditor-Controller file all required financial reports and audits by their due dates, beginning with the next required report. (F9, F13)
F14
The County’s financial procedures are decentralized in that different processes for accounting are used by different departments, including the use of spreadsheets and some use of paper timecards. (R1, R2, R3, R4, R16)
Related Recommendations (6)
R1
The Humboldt County Civil Grand Jury recommends the Auditor-Controller develop and maintain an accessible (and regularly updated) written and comprehensive operations policy and procedures manual that is available to current staff and new-hires. The Grand Jury recommends a draft manual be completed by Dec. 31, 2022, and fully implemented by July 1, 2023. (F1, F2, F4, F14)
R2
The Humboldt County Civil Grand Jury recommends that when the policy and procedures manual is adopted, the following specific items be included: a) When procedures are updated, give advanced written notification to all County departments of all changes, including chart of account object lines. b) Restrict changes to the chart of accounts to the first day of a fiscal year. (F4, F10, F11, F14)
R3
The Humboldt County Civil Grand Jury recommends the Auditor-Controller, in cooperation with financial managers from County departments, develop an agreed-upon written process for recommending, implementing, and giving notice of changes to financial procedures. This should be completed by Oct. 1, 2022. (F1, F4, F10, F11, F14)
R4
The Humboldt County Civil Grand Jury recommends the Auditor-Controller provide accessible, written policies and procedures to County departments, school and special districts and other organizations for which financial services are provided. These will clearly state terminology and methods required by the Auditor-Controller. The Grand Jury recommends this be completed by Dec. 31, 2022, as part of the policies and procedures manual development. (F2, F4, F10, F11, F14)
R14
The Humboldt County Civil Grand Jury recommends if the Auditor-Controller anticipates a required financial report or audit cannot be filed on time, the Board of Supervisors be notified and assistance be requested from the County Administrative Officer, and if needed, from the Treasurer-Tax Collector, impacted departments or agencies, and the State Controller’s Office. (F9, F13, R13)
R16
The Humboldt County Civil Grand Jury recommends the Board of Supervisors exercise supervision over the accounting forms and methods of keeping the accounts that are under their control by directing the Auditor-Controller to standardize the accounting methods used throughout County government. These forms and methods should be developed by Dec. 31, 2022, and fully implemented by July 1, 2023. (F14) 23
F15
Adjustments or corrections to financial items in the accounting system, called journal entries, were not posted in a timely manner by the Auditor-Controller resulting in County departments not having accurate information to determine current budget funds and bank balances. (R17)
Related Recommendations (1)
R17
The Humboldt County Civil Grand Jury recommends the Auditor-Controller post all journal entries no later than 30 days from the date they were submitted. (F15)
F16
The Board of Supervisors adopted Resolution 21-128 affirming, unless otherwise authorized by law, all interest on monies deposited with the County belongs to and shall be paid quarterly into the General Fund and the Auditor-Controller is authorized and directed to act in compliance with the resolution and Government Code section 53647. (R18)
Related Recommendations (1)
R18
The Humboldt County Civil Grand Jury recommends the Auditor-Controller comply with the Board of Supervisors’ Resolution 21-128. (F16)
F17
The County Administrative Officer is responsible for supervising County business affairs, as charged by the Board of Supervisors, specifically including, supervising all departments for whom the Board adopts an annual budget. (R19) 21
No recommendations for this finding
Additional Recommendations 1
These recommendations are not explicitly linked to specific findings.
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R19The Humboldt County Civil Grand Jury recommends the County Administrative Officer comply with the County Code requirement of supervising all County departments by requiring all departments to submit financial documents to the Auditor-Controller within the timeframe and in the manner necessary to meet established reporting and filing deadlines.
Agency Responses 2
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
No Responses Found 4
Government entities assigned to respond to this report. No response documents have been linked in our database.
County of Humboldt
Agency
Humboldt County Auditor-Controller
Elected County Office
Humboldt County Board of Supervisors
Elected County Office
Humboldt County Sheriff
Elected County Office