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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.
Los Angeles County Grand Jury
• 2016-2017
Make Invsetments that Transform Lives
⚠️ 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 13 findings
F1
The CGJ’s study is only an approximate gauge but the resulting numbers are found to be significant enough to justify a formal audit. Potential County Annual Savings Percent of cellular users who have a desk phone and relinquish it. Annual Savings from relinquishing desk phone 20% relinquishment $ 480,000 33% relinquishment $ 792,000 50% relinquishment $1,200,000 122 2016-2017 LOS ANGELES COUNTY CIVIL GRAND JURY FINAL REPORT
F2
Given the growth trend in the use of mobile telephone technology, guidelines for managers would be advantageous to help them decide whether there is no longer a need for a landline when an employee has been issued a cellular phone.
F3
The County employee population is approximately 100,000 and it operates 140,000 landlines. There is a potential for part of the 40,000 hard wired miscellaneous functions to shift to wireless communication.
F4
Internal Services Department’s (ISD) Expense Management System (EMS) reduces the disarray associated with handling, reviewing and approving monthly paper telephone bills that were previously delivered by telephone service providers. This system can handle both cellular and landline phone bills.
F5
Subscription to EMS is currently voluntary by each department. By having all departments subscribe to this system the County will possess a centralized inventory for cellular phones. EMS can be modified to track stipend phones.
F6
ISD is working to convert from legacy PBX and Centrex technology to VoIP where possible to reduce costs. PBX is being phased out as a communication technology in the telecommunication industry.
F7
The single estimated monthly average landline charge to the County departments is $12.50.
F8
Implementation of a stipend program can reduce cellular phone costs for the County based on the results of Phase I and II pilot programs. A stipend program allows employees to use a personal cellular device in lieu of a County-issued device as a cost-effective option. The Phase II pilot demonstrated savings of up to 25% when compared to the cost of a cellular phone purchased from a telephone carrier approved by the County.
F9
Security concerns regarding County Data residing on private devices and the County’s ability to wipe data remotely due to a device being lost or stolen is to be addressed. The storage and retrieval of information subject to the California Public Records Act should be addressed.22,23 Implementation of a Bring Your Own Device (BYOD) policy and associated technical solution is in development and is a prerequisite to rolling out a stipend program.
F10
The County’s monthly cost for a smartphone is approximately $52.50 for those procured through ISD. These smartphones are the previous years’ models with voicemail service, capped pooled minutes/data/unlimited text. The County pays the sales tax on the retail price of the phone and incurs the cost of loss or breakage. California Government Code, Sec. 6250, et seq. City of San Jose v. Superior Court (Smith), No S218066, March 2017.Re. conduct of public business on personal account may be subject to disclosure under the California Public Records Act. 2016-2017 LOS ANGELES COUNTY CIVIL GRAND JURY FINAL REPORT 123
F11
The County has established appropriate policies identified in Board Policy 3.16024 and Fiscal Manual Reference 4.725 for managing cellular phones.
F12
There is no centralized procurement policy for cellular phones. Some departments negotiate their own agreements though this service is available from the County ISD. This is permissible providing they acquire services at rates available through County master agreements negotiated by ISD.
F13
Based on technology trends26, the County workplace of the future will likely see a continuous growth in use of mobile devices with the expectation that costs will be off-set with measured increase of productivity. V
Recommendations 8
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R1Page 134The Auditor-Controller should conduct an audit to quantify cost savings from eliminating cellular/ landline redundancy, where possible, when these devices are assigned to the same person.
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R2Page 134The Auditor-Controller should recommend guidelines for determining when a landline should be eliminated or shared by two or more employees.
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R3Page 134The Internal Services Department should modify the inventory process for tracking 40,000 landlines dedicated to miscellaneous functions like elevators, alarms and facsimile to flag devices that will be converted to wireless communication.
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R4Page 134The Chief Executive Office should require all departments to use the Internal Service Department Expense Management System (EMS) to ensure all cellphones are tracked, monitored and cost-controlled.
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R5Page 134The Chief Executive Office should seek approval of the Board of Supervisor to implement a County Cellular Phone and Data Stipend Program and associated Bring Your Own Device (BYOD) policy.
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R6Page 134The Chief Executive Office should require that cyber security and information subject to the California Public Records Act be addressed in a stipend phone policy.
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R7Page 134The Chief Executive Office should initiate a project to determine how to track stipend phones. BOS Policy Manual 25 See County of Los Angeles Fiscal Manual Section 4.7.0 Cellular Telephone and Other Wireless Data Devices Usage Policy: footnote 7 26 Forbes Magazine February 27, 2015 Niall McCarthy 2016-2017 LOS ANGELES COUNTY CIVIL GRAND JURY FINAL REPORT 123
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R8Page 134The Internal Services Department should modify the Expense Management System to track and inventory stipend phones. VI REQUEST FOR RESPONSE California Penal Code Sections 933(c) and 933.05 require a written response to all recommendations contained in this report. Such responses shall be made no later than ninety (90) days after the Civil Grand Jury publishes its report (files it with the Clerk of the Court). Responses shall be made in accord with Penal Code Sections 933.05 (a) and (b). All responses to the recommendations of the 2016-2017 Civil Grand Jury must be submitted on or before September 30, 2017, to: Presiding Judge Los Angeles County Superior Court Clara Shortridge Foltz Criminal Justice Center 210 West Temple Street Eleventh Floor-Room 11-506 Los Angeles, CA 90012 Responses are required from: Responding Agency Recommendations Findings Los Angeles County Auditor- 10.1, 10.2 10.1, 10.2 Controller Los Angeles County Chief 10.4, 10.5, 10.6, 10.7 10.4, 10.5, 10.8, 10.9, 10.12 Executive Office Los Angeles County Internal 10.3, 10.8 10.3,10.4,10.5 Services Department VII ACRONYMS APP Application BOS Los Angeles County Board of Supervisors BYOD Bring Your Own Device CEO Chief Executive Office CGJ 2016-2017 Los Angeles County Civil Grand Jury EMS Expense Management System ISD Internal Service Department PBX Private Branch Exchange TMS Telecommunications Service Management Section VoIP Voice over Internet Protocol 124 2016-2017 LOS ANGELES COUNTY CIVIL GRAND JURY FINAL REPORT VII COMMITTEEE MEMBERS Henry C. Guerrero Chair Regi Block Secretary Hilda Dallal London Jones Patrick Lyons 2016-2017 LOS ANGELES COUNTY CIVIL GRAND JURY FINAL REPORT 125 THIS PAGE INTENTIONALLY LEFT BLANK. 126 2016-2017 LOS ANGELES COUNTY CIVIL GRAND JURY FINAL REPORT LOS ANGELES RIVER REVITALIZATION Douglas Benedict Chair Gerard Duiker Gloria Garfinkel Shelley Strohm