Committee Audit/fiscal Committee

R09-06

Provide language translation service to those appellants requesting such a service. (Finding 1)

R09-12

Upgrade environmental controls to approximate archival climate conditions. (Finding 1)

R09-19

Amend the Charter to include language to establish the numbers and names of the audit classifications, and the time frame the various audit classifications are to be accomplished. (Finding 1)

R09-07

Collect a filing fee for an Application for Changed Assessment and a fee for a Finding of Fact. (Finding 2)

R09-13

Modify the County Historical Archives fire sprinkler system and change to the zone type, dry charge system. (Finding 2)

R09-20

Revise the ICCM to be commanding instead of instructional. Replace the words should and must with the word will. The Grand Jury recommends Manual language that encourages support to management and supervisors, while giving instructions and direction to staff. (Finding 2)

R09-08

Utilize a private legal firm, or County Council personnel, knowledgeable in the field of appraisals and assessment appeals, to represent the Office of the Assessor during major appeals. (Finding 3)

R09-14

Add security bracing between shelves and straps across shelf openings to help decrease damage to documents during an earthquake. (Finding 3)

R09-21

Establish oversight of internal operational audits along with the ACR office to ensure enforcement. Continued follow-up by ACR as done currently, along with a review each quarter from the Board of Supervisors and County Administration Officer to support department management in compliance with written procedures and policies. (Finding 3)

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09-15 Expand the square footage of the Historical Archives as adjacent space becomes available. (Finding 4) 09-16 Upgrade security measures with the addition of a video security and surveillance system. (Finding 5) 09-17 Digitize, catalog, and backup all historical documents. (Finding 6) 09-18 Fill the three vacant positions at the Archives with permanent employees. (Finding 7) INTERNAL AUDITS DIVISION

R09-09

Take the necessary steps to regulate third-party assessment appeals vendors. (Finding 4)

R09-15

Expand the square footage of the Historical Archives as adjacent space becomes available. (Finding 4)

R09-22

Install video surveillance cameras at all cash-handling locations in all departments throughout the County to safeguard against cash-handling overages and shortages and to ensure better security for County employees and the general public. (Finding 4) 18

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09-15 Expand the square footage of the Historical Archives as adjacent space becomes available. (Finding 4) 09-16 Upgrade security measures with the addition of a video security and surveillance system. (Finding 5) 09-17 Digitize, catalog, and backup all historical documents. (Finding 6) 09-18 Fill the three vacant positions at the Archives with permanent employees. (Finding 7) INTERNAL AUDITS DIVISION

R09-10

Post a permanent and more detailed notice on Assessor's website, warning that third-party vendors are not necessary in the assessment appeals process. (Finding 5) 12

R09-16

Upgrade security measures with the addition of a video security and surveillance system. (Finding 5)

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09-15 Expand the square footage of the Historical Archives as adjacent space becomes available. (Finding 4) 09-16 Upgrade security measures with the addition of a video security and surveillance system. (Finding 5) 09-17 Digitize, catalog, and backup all historical documents. (Finding 6) 09-18 Fill the three vacant positions at the Archives with permanent employees. (Finding 7) INTERNAL AUDITS DIVISION

R09-11

Include on the Assessor's website a time-line of important dates to remember during the year in order to assist the public in keeping abreast of time limits and due-dates of the property assessment processes as the year progresses. (Finding 6) 13 AUDITOR/CONTROLLER-RECORDER (ACR) HISTORICAL ARCHIVES SUMMARY In 2006, the San Bernardino County Historical Archives (Archives) was moved from its old facility on Rialto Avenue to its new home at 1806 Commercenter West. The facility houses the county’s oldest and rarest information, plus the first 41 years of the County of Riverside’s historical documents. The 2008-2009 Grand Jury checked on the progress and improvement of the preservation of these priceless and one-of-a-kind artifacts and found some interesting results. Those results are documented in the findings and recommendations sections at the end of this report. BACKGROUND The old facility on Rialto Avenue had not been adequately equipped to maintain the historical material, nor was it secure. The facility we inspected on Commercenter was secure but still lacked archival storage infrastructure common to similar operations of this kind. There was a need for environmental controls that would prolong the useful life of the materials. The storage area was air-conditioned, but the air conditioning was intended for common warehouse activities and was inadequate for archival storage. Rare documents need more sophisticated and accurate controls and alarms. Archivists agree that temperature and humidity be kept steady in the archive storage area. Humidity must be between 40 and 55 percent, while a temperature between 60 and 70 degrees must be established. If those environmental standards cannot be met, archivists agree that at least a storage facility be kept at a steady climate using the equipment at the facility's disposal. Upgrades to the current heating and cooling need not be expensive. Additions of dust filtering and secondary humidity and temperature monitoring and logging equipment are essential for long- term preservation of historical materials. Most of the archives were stored on open shelves. If the fire sprinklers were activated, the Archives would be heavily damaged, if not destroyed outright. Acid-free storage boxes were in abundance and a primary means of protection of materials from light, dust and moisture. The ability of the proper storage box to preserve the material cannot be understated. However, there is not much that boxes can do to protect the valuables from a discharge from the standard-type sprinkler system now employed at the Archives. For archival use, the sprinkler systems are customarily the Victaulic or dry type. In a dry system the piping between the valve and sprinklers is filled with pressurized air or nitrogen rather than water. A sprinkler-head opening causes air pressure to drop. When the pressure deteriorates in the pipes sufficiently, the valve clapper is allowed to open, flooding the lines with water. This system prevents the entire collection from being soaked. The storage area of the Archives was an open warehouse-type interior with metal shelving located below and open to sprays of water from overhead fire sprinklers. The shelving meets San Bernardino City codes and was inspected by the City Fire Marshal when installed. However, two equipment standards were lacking. One, cross bracing between standing metal shelving and two, the addition of bungee-style strapping across the shelf openings to reduce the incident of materials falling in case of an earthquake. The expansion of the Archives to adjacent offices as they become vacant would increase the volume of materials stored at the archives. The current contents of materials held by Historical Archives and by other County departments necessitates expansion of storage area. The Archives currently hold about 60% to 65% Auditor/Controller-Recorder (ACR) records, and the remainder belong to other departments. Some departments hold their own historical documents in less than satisfactory storage areas. Security consists of ACR-hired private agency 7 AM to 7 PM. There was an every-other-hour check of the premises, and the security personnel was shared with the main ACR building across the street. After 7 PM, the Archives relied on burglar and fire alarms monitored by an agency. The ACR building manager would be called in case of an alarm anytime during the night. Two staff were on duty during business hours. The Archives maintained a policy that absolutely no one can remove material of any kind from the archives. However, there were no security cameras in the archives. The staff wore personal alarms. Archivists stressed the importance of a video recording security system. The public was not allowed in the storage area and must wear cotton gloves when inspecting materials. Many of the very oldest books needed restoration. Technology exists that allows old material to be digitized for public use. There was no computer database of materials and the resulting handling of documents contributed to excessive wear on the original document. Staff says they were shopping for software to facilitate creation of a document database. Staffing was an original concern of the Grand Jury when it noticed that the organizational chart for ACR showed only one employee working at the archives. There were four positions allocated, but three were unfilled. ACR sent two employees on a part-time basis to the Archives at different times of the day, so no one was there alone. No approval from the County Administrative Officer (CAO) to interview and hire anyone to fill the empty positions has been received by the ACR. Archivist literature states that it is important to secure the old documents from public mishandling and that knowledgeable people are necessary to protect the documents. FINDINGS 1. The current environmental climate and control is not adequate for historical document preservation. 2. Nearly all of the documents are vulnerable to damage from the fire sprinkler 15 system if that system activates. The current fire sprinkler system is not appropriate for historical document preservation. 3. Metal shelving is not adequately braced to protect valuable documents from falls during an earthquake. 4. The Historical Archives are in need of additional storage space. 5. The addition of a video security system will enhance document and employee protection. 6. The Historical Archives does not have a program in place to digitize, catalog, and backup its historical documents. 7. The Historical Archives is understaffed and in need of full-time employees. RECOMMENDATIONS

R09-17

Digitize, catalog, and backup all historical documents. (Finding 6)

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09-15 Expand the square footage of the Historical Archives as adjacent space becomes available. (Finding 4) 09-16 Upgrade security measures with the addition of a video security and surveillance system. (Finding 5) 09-17 Digitize, catalog, and backup all historical documents. (Finding 6) 09-18 Fill the three vacant positions at the Archives with permanent employees. (Finding 7) INTERNAL AUDITS DIVISION

R09-18

Fill the three vacant positions at the Archives with permanent employees. (Finding 7) INTERNAL AUDITS DIVISION BACKGROUND By mandate of the County Charter, the Internal Audits Division of the Auditor/ Controller-Recorder (ACR) Office performs audits of all County departments, offices, 16 agencies and special districts. Though not distinguished in the Charter, these audits are determined to be operational, performance, and financial in content. These audits provide management with objective appraisals as to the status of operations of the audited organizations, and evaluate internal controls and assess business risks. The Grand Jury reviewed audits from three different calendar quarters and interviewed staff from seven different departments including the Auditor/Controller- Recorder Office, Board of Supervisors (BOS), and the County Administrative Officer (CAO). Some staff interviewed are not familiar with the blue-bound books published each quarter. All audits are conducted in compliance with the referenced County Charter, and the Board of Supervisor’s Policy Statement on Internal Operational Auditing. The Grand Jury review shows that all audits were accomplished according to professional standards. FINDINGS 1. The San Bernardino County Policy Manual states that all departments “will be subjected to an annual internal operational audit.” As an “essential element of management control” the Policy further states the function “must be carried out regularly and properly under the general direction of the County Administrative Officer.” Furthermore, the County Charter, amended by Charter Amendments adopted through November 7, 2006, in Article V, Section 6, states that “thorough audits from time-to-time, and not less than annually” will be accomplished for all departments under the control of the Board of Supervisors. Nowhere does the Charter reference, differentiate, or even acknowledge the Risk-Based Internal Audit Plan approved by the Board of Supervisors in February of 2003. The Risk- Based Plan divides the County departments into three classifications known as “High Risk,” “Moderate Risk” and “Low Risk.” This Plan establishes a different practice and picture of the auditing process than the Charter displays. 2. A review of the Internal Audits ending June 30, 2008, September 30, 2008, and December 31, 2008, by the Grand Jury, shows varied responses from management to the findings of the auditors. ACR and department management quite often maintain that the difficulty of enforcement of recommendations is due to habits and procedures established out of complacency and ignorance. Throughout, there is a constant practice of ACR referring to the Internal Controls and Cash Manual (ICCM) with specific chapters and pages. Also throughout, there is a constant response from management that the Manual is not available in the department. Evidence has shown the Grand Jury that even if the Manual were available, policy is often disregarded. Language used throughout the ICCM is more “advisory” than “directory” with no presence of giving command. 3. Oversight of Internal Operational audits by the Board of Supervisors and the County Administrators Officer to ensure enforcement of ACR’s Findings and Recommendations has not been required and is not being accomplished. Recent 17 reviews of audits by the Grand Jury show rhetorical and representative Responses to ACR Recommendations as opposed to specific Responses and problem-solving conclusions to ensure compliance. Grand Jury review further indicates that County management and supervisory controls on administering Auditor recommendations need to be strengthened. Without enforcement, compliance to Recommendations is nonexistent. 4. The Grand Jury learned during review of the audit reports that cash handling controls within the County departments are not always effective. While some departments have video surveillance cameras operating at some of their locations, other locations are lacking this security tool. RECOMMENDATIONS