Orange County Grand Jury
• 2014-2015
• Agency Response
Response to:
Orange County Sheriff Medical Insurance: County Failures in Negotiation, Documentation, Oversight, and Transparency
Orange County Sheriff Medical Insurance:
⚠️ 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 9 findings
F1
Numerous provisions contained in the Memorandum of Understanding are ambiguous as they relate to medical insurance coverage for Association of Orange County Deputy Sheriffs active and retiree members.
Related Recommendations (1)
R1
The County should retain a qualified, experienced, and independent negotiator to assist in the next negotiations between Orange County and the Association of Orange County Deputy Sheriffs and require that entity to prepare an internally consistent Memorandum of Understanding that, for example, makes it clear whether the Orange County contributions are to be used only for active employees. (F.1.)
F2
There are no limitations in the Memorandum of Understanding on how the Association of Orange County Deputy Sheriffs Trust’s reserves are to be used, what should be done if the reserve is over-funded, or what would happen to the funds in the Blue Cross Stabilization Fund when the agreement between the Association of Orange County Deputy Sheriffs Trust and Blue Cross is terminated.
Related Recommendations (1)
R2
The County should retain a qualified, experienced, and independent negotiator to incorporate clear terms in the Memorandum Of Understanding that define limitations on the use of Orange County contributions that become reserve funds, specify how to deal with over-funding, and resolve what is to become of the funds in the Premium Stabilization Fund if the Trust’s agreement with Blue Cross is terminated. (F.2.)
F3
The County has not insisted that the Association of Orange County Deputy Sheriffs Trust have a formal anti-fraud program, accounting policy and procedure manuals, or disaster recovery plan. 2014-2015 Orange County Grand Jury Orange County Sheriff Medical Insurance: County Failures in Negotiation, Documentation, Oversight, and Transparency
Related Recommendations (1)
R3
The County should ensure that an anti-fraud program, accounting policies and procedures manuals, and a disaster recovery plan are developed, implemented, and maintained by the Association of Orange County Deputy Sheriffs Trust. (F.3.) 2014-2015 Orange County Grand Jury Orange County Sheriff Medical Insurance: County Failures in Negotiation, Documentation, Oversight, and Transparency
F4
The jointly retained auditor selection process does not guarantee that the three auditor candidates are qualified, willing to do the work if selected, and will actually do the work if selected.
Related Recommendations (1)
R4
The County should require the County and the Association of Orange County Deputy Sheriffs Trust to have each of the three-candidate auditor firms sign a firm commitment that the nominees meet specified qualifications, want the business, and will do the business, if selected. (F.4.)
F5
The Association of Orange County Deputy Sheriffs Trust has subsidized retirees’ health benefits.
Related Recommendations (1)
R5
If the County is convinced that Sheriff retirees should not be benefiting from monthly County contributions to the Trust, the County should seek reimbursement from the Association of Orange County Deputy Sheriffs Trust for funds that the County believes are inappropriately used, e.g., Trust funds used to subsidize retirees medical insurance premiums. (F.5)
F6
Contrary to the terms of the Memorandum of Understanding, Association of Orange County Deputy Sheriffs employees are receiving health care coverage from the Association of Orange County Deputy Sheriffs Trust.
Related Recommendations (1)
R6
The County should seek reimbursement from the Association of Orange County Deputy Sheriffs Trust for funds that the County believes are inappropriately used, e.g., Trust funds used to pay for Association of Orange County Deputy Sheriffs employees’ medical insurance. (F.6)
F7
Auditors have noted a number of internal control deficiencies related to the Association of Orange County Deputy Sheriffs Trust.
Related Recommendations (1)
R7
The County should seek to include terms in the next Orange County and Association of Orange County Deputy Sheriffs Memorandum of Understanding that require that the Association of Orange County Deputy Sheriffs Trust have specific additional appropriate and necessary controls in place, and require that the Trust fully implement and maintain the Memorandum of Understanding controls the Trust currently has. (F.7.)
F8
Allowing only one Reserve study and one Administrative fee study during the entire term of the Memorandum of Understanding is inadequate.
Related Recommendations (1)
R8
The County should seek to include provisions in the next Orange County and Association of Orange County Deputy Sheriffs Memorandum of Understanding, requiring that Administrative Fees Assessments and Reserve Studies be performed more often than once a term and contain specifications and guarantees of active, equal control/access/involvement by Orange County. (F.8.)
F9
There is a general lack of transparency in the Memorandum of Understanding negotiation and approval process. RECOMMENDATIONS In accordance with California Penal Code sections 933 and 933.05, the 2014- 2015 Grand Jury requires (or, as noted, requests) responses from each agency affected by the recommendations presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation titled “Orange County Sheriff Medical Insurance: Transparency Problems Abound,” the 2014-2015 Orange County Grand Jury makes the following ten recommendations:
Related Recommendations (1)
R9
The County should support and take full advantage of Orange County’s Civic Openness in Negotiations - “COIN” ordinance in future Orange County and Association of Orange County Deputy Sheriff’s Memorandum of Understanding negotiations and approval processes. (F.9.)
Conclusions 1
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CL1 Whether the County has adequately followed through on monitoring and enforcing the implementation and operation of the Trust to ensure compliance with the MOU Whether the negotiations process between the County and the AOCDS was adequately transparent to the public, allowed sufficient time for review and comment before the MOU was adopted, and was affected by political considerations. 2014-2015 Orange County Grand Jury Page 8 Orange County Sheriff Medical Insurance: County Failures in Negotiation, Documentation, Oversight, and Transparency Although the Grand Jury has met with representatives of AOCDS to gather information for the preparation of this report, the Grand Jury does not have jurisdiction over AOCDS because it is a private, non-profit organization. The Grand Jury, therefore, focused its investigation on the actions and responsibilities of the County with respect to negotiating, interpreting, and monitoring the AOCDS MOU.
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.