Score: +8 (12/0/4)
San Diego County Grand Jury • 2009-2010

Ethics in Government Codes of Ethics, Internal Controls, Fraud Hotlines

16 pages
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Findings and Recommendations 18 findings

F01
The District Auditor, with a staff of only seven auditors and investigators (one dedicated to the District Hotline) over a period of twenty months, identified recoverable District funds that (annualized) equaled three times the cost of the staff of the District Internal Auditor.
No recommendations for this finding
F02
Through December 2009, approximately 107 Hotline cases remained under investigation.
No recommendations for this finding
F03
Investigations and audits by the District Auditor, whether initiated by District Hotline calls or otherwise, often result in savings due to prevention and increased efficiency.
No recommendations for this finding
F04
The District Auditor needs additional auditors to expand the sampling of the books and records of the District; the District Hotline needs an additional investigator to mitigate the backlog of complaints; and the District Hotline phone number needs to be more prominently posted.
No recommendations for this finding
F05
The City appears to have no integrated comprehensive Code of Ethics designed, for example, for classified employees and parties dealing with the City and addressing basics such as fraud, waste, abuse and conflict of interest. However, the City Auditor publishes, on the departmental web page, explicit definitions of fraud, waste and abuse, accessed either as a separate link or through the City Employee Fraud Hotline Policy and Procedures Manual.
No recommendations for this finding
F06
The City has an effective charter-based internal audit and hotline process managed by the City Auditor and resulting in identification of significant recoverable funds and cost savings.
No recommendations for this finding
F07
Investigations and audits by the City Auditor, whether initiated by City Hotline calls or otherwise, often result in savings due to prevention and increased efficiency, not quantified in dollars.
No recommendations for this finding
F08
The City Hotline phone number is not posted on the Home page of the City website.
No recommendations for this finding
F09
The County appears to have no integrated comprehensive Code of Ethics designed, for example, for classified employees and parties dealing with the County and addressing basics such as fraud, waste, abuse and conflict of interest.
No recommendations for this finding
F10
The County has neither fraud, waste, abuse and conflict of interest anonymous hotline contracted to an independent third party provider, nor other process that addresses these issues specifically and assures the anonymity of the complainant.
Related Recommendations (21)
10-60
Page 4
Take steps to accomplish greater sampling of the books and records of
10-61
Page 4
Take steps to mitigate the backlog of District Hotline complaints.
10-62
Page 4
Consider including a non-binding recommendation regarding
10-63
Page 6
Ethics designed for classified employees and parties dealing with the
10-64
Page 7
Consider posting the City Hotline phone number on the Home page of
10-65
Page 7
Consider including a non-binding recommendation regarding
10-66
Page 8
Bring before the Board of Supervisors for its consideration in a public
10-67
Page 8
Bring before the Board of Supervisors for its consideration in a public
10-68
Page 8
If a Hotline is created as recommended in Recommendation 10-67
10-69
Page 8
If a Hotline is created as recommended in Recommendation 10-67
10-70
Page 10
Bring before the legislative body of each entity listed above for its
10-71
Page 10
Bring before the legislative body of each entity listed above for its
10-72
Page 10
Bring before the legislative body of each entity listed above for its
10-73
Page 11
Bring before the governing body of each entity listed above for its
10-74
Page 11
Bring before the governing body of each entity listed above for its
10-75
Page 11
Bring before the governing body of each entity listed above for its
10-76
Page 11
Bring before the governing body of each entity listed above for its
10-77
Page 11
Bring before the governing body of each entity listed above for its
10-78
Page 11
Bring before the governing body of each entity listed above for its
10-79
Page 11
Bring before the Board of Port Commissioners for its consideration
10-80
Page 12
Bring before the governing body of the Airport Authority for its
F11
Most of the surveyed cities have some sort of Code of Ethics, but excepting the City of San Diego, few have internal auditors or hotlines outsourced to a third party provider assuring anonymity.
No recommendations for this finding
F12
Excepting the San Diego Unified School District, most school districts have a Code of Ethics for various subject matters such as sports, but most have neither internal auditors nor fraud hotlines outsourced to third party providers assuring anonymity.
No recommendations for this finding
F13
Most community college districts have a Code of Ethics of some sort, but few have internal auditors or fraud, waste, abuse and conflict of interest hotlines and none are outsourced to third party providers assuring anonymity.
No recommendations for this finding
F14
The Unified Port of San Diego has a Code of Ethics, an internal auditor and an internal ethics (fraud, waste, abuse and conflict of interest) hotline outsourced to a third party provider assuring anonymity, but available only to employees.
No recommendations for this finding
F15
The Airport Authority has a Code of Ethics, internal auditor and Ethics Violation Form which may be accessed online and filed anonymously but does not appear to have a fraud, waste, abuse and conflict of interest hotline outsourced to a third party provider assuring anonymity. Finding #16: The Grand Jury finds that most of the governmental organizations within San Diego County lack either an integrated comprehensive fraud, waste, abuse and conflict of interest Code of Ethics, a consistently applied internal controls process compliant with Generally Accepted Government Auditing Standards and/or Generally 135 Accepted Accounting Principles, or a fraud, waste, abuse and conflict of interest hotline outsourced to a third party provider assuring anonymity.
No recommendations for this finding
F16
The Grand Jury finds that most of the governmental organizations within San Diego County lack either an integrated comprehensive fraud, waste, abuse and conflict of interest Code of Ethics, a consistently applied internal controls process compliant with Generally Accepted Government Auditing Standards and/or Generally 135 Accepted Accounting Principles, or a fraud, waste, abuse and conflict of interest hotline outsourced to a third party provider assuring anonymity. Finding 17: Governmental organizations within San Diego County are no less subject to fraud, waste, abuse and conflict of interest than the average American organization (including public and private sector), which on average loses seven percent of its annual revenues to such activities. Finding 18: Cities, school districts, community college districts, and other governmental organizations within San Diego County not named herein could benefit by considering the facts, findings and recommendations in this report and should consider adoption and implementation of some, if not all, of the recommendations set forth below.
No recommendations for this finding
F17
Governmental organizations within San Diego County are no less subject to fraud, waste, abuse and conflict of interest than the average American organization (including public and private sector), which on average loses seven percent of its annual revenues to such activities.
No recommendations for this finding
F18
Cities, school districts, community college districts, and other governmental organizations within San Diego County not named herein could benefit by considering the facts, findings and recommendations in this report and should consider adoption and implementation of some, if not all, of the recommendations set forth below.
No recommendations for this finding

Agency Responses 4

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

No Responses Found 10

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

Carlsbad City
Chula Vista City
Coronado City
County of San Diego Agency
Del Mar City
El Cajon City
Escondido City
San Diego City
San Diego County Board of Supervisors Elected County Office
San Diego County Office of Education Agency