County of Humboldt John Bartholomew*

The handling of large sums of cash used by applicants to conduct transactions with the Planning and Building Department lacks transparency and creates the perception of potential for fraud. (R-2, 3, 4) To the best of my knowledge I agree. • The potential for fraud will always exist but that potential will be greatly reduced once a county wide 'Cash Handling Policy' is in place which all departments follow. • The Treasurer-Tax Collector (T-TC) and Treasury Staff wrote and submitted a draft 'Cash Handling Policy' in November 2019 but it has not yet been authorized and required for use by all county departments; and remains in draft form while other county departments weigh in about it with the HUM 21 'Cash Handling Committee'.

Cash transactions jeopardize the safety of the public and department personnel due to a lack of robust security infrastructure. (R-2, 3, 4) I agree. • Cash handling without physical security, and secure handling and deposit procedures, is . an environment with uncontrolled risk.; i.e. potentially unsafe conditions.

Lack of transparent accounting for cannabis-related revenues (permit fees, Trust Fund monies, fines) makes it difficult to determine the economic impact of the legalization of the cannabis industry on the county. (R-2, 3) I agree to the best of my understanding. I am not familiar with the cannabis-related revenue accounting used by the Planning & Building Department; therefore my understanding is based on the Grand Jury report and not any personal knowledge gained from independent research and review of the processes and procedures about which the report was written. RECOMMENDATIONS: