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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
⚠️ 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 5 findings
F1
Page 36
The current RHCSD Board of Directors has not produced a budget for either 2007-2008 or for the 2008-2009 years as required by California Government Code § 61110.
F2
Page 36
Based on previous Financial Statements reviewed no payroll expenses were found. Therefore, it is assumed all “employees” of RHCSD are outside contractors. Outside contractors hired by the RHCSD did not receive their copies of IRS form 1099 in a timely manner for the years of 2007 and 2008. This lack of attention may have caused undue tax penalties to some contractors and for the RHCSD.
F3
Page 36
Multiple violations, according to California Government Code § 61047, were found when reviewing stipend payments to some past and current board members. These stipend payments only added to the already overburdened costs to the RHCSD.
F4
Page 36
California Government Code §§ 53234 and 53235.1 require ethics training, if the local agency provides any type of compensation, salary or stipend to those officials. Yuba County Grand Jury Final Report June 25, 2009
F5
Page 37
The dissolution of the RHCSD is being considered by the County and LAFCO. The County is in the process of determining the liability of the bonds for which the RHCSD has administrative responsibilities.
Recommendations 5
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R1Page 36The RHCSD Board of Directors must establish a budget for the coming year as required by California Government Code § 61110.
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R2Page 36Work with the RHCSD accounting firm to ensure timely distribution of IRS Form 1099 for contractors as required by law.
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R3Page 36Audit previous stipend payments and require reimbursement to RHCSD for those payments which did not meet the requirements of the law. Establish a procedure to review stipend requests for payment that will conform to the law.
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R4Page 37Establish a procedure to review ethics training and ensure all board members have the training available per California Government Code §§ 53234 and 53235.1. There is an on-line course available at no charge through the State and classes are also available through other training agencies.
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R5Page 37The Committee concurs with the County and LAFCO that RHCSD should be dissolved and its various contracts and obligations transferred to appropriate entities. PASSED and ADOPTED by the Yuba County Grand Jury on May 26, 2009