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Findings and Recommendations 6 findings
Additional Recommendations 9
These recommendations are not explicitly linked to specific findings.
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R7The problem of duplicate employee numbers is due to the use of five-digit maximum employee number (99,999 is the highest available) for approximately 85,000 different employees paid during each year. The high level of turnover requires frequent reuse of old employee numbers. By adjusting the programs to accept a six-digit number, 999,999 numbers would be available, the reuse of numbers eliminated for many years. If this suggestion presents a major problem in redesigning the computer system, an alternative is to use an alphabetical character as the first digit of the employee number. This would expand the available numbers to approximately 260,000. As a minimum procedure, an edit step should be added to the computer program to check its file for duplicate numbers every time the payroll is processed. If the County desires to continue issuing their former numbers to rehired employees, the computer would catch duplicates as soon as they enter the system and corrective action can be taken.
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R8For better control of unclaimed warrants, consideration sould be given to the use of a te suspense control account with a periodic detailed listing of the warrants. Release of an unclaimed warrant should be only upon the written approval of a responsible Special Claims employee, and the unclaimed warrants on hand should be compared at surprise intervals with the detail listing.
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R9We recommend a change in the method of computing deductions from pay for un- excused absences to a system which is based upon annualized working days rather than calendar days in the month of occurrence.
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R10To minimize the possibility of human error and to eliminate the cost and time re- quired for the manual computation of monthly salary rates, we suggest the incorpora- tion of the required factors into the computer program so that the monthly salary g rate for each employee can be computed automatically and placed in the computer master file. Special pay rates for certain employees could also be built into the system.
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R11Meaningful controls should be built into the computer program. Hours worked and gross and net pay would seem to be the logical control totals. For example, routines could be built into existing programs to compare the number of overtime or total hours input to some reasonable limit. Any item exceeding this amount would give rise to an exception listing which would be forwarded to the control group for resolution prior to the distribution of payroll checks. The same approach could be taken with regard to both gross and net pay. In this manner, any unreasonable salary (and hours) would be flagged for closer scrutiny.
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R12We think meaningful control totals (such as document counts or total number of hours and/or days absent) could be used to minimize the chances of data loss or conversion error during the master file updating process for employee absence information. The need for control totals during updating is emphasized by the fact that once information is placed on the master file the pay calculation is directly
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R13Magnetic tapes in use should not be available to computer room personnel. While it may not be economically feasible to have a library area and librarian for the Admin- istrative Data Center alone (the volume of tapes is not that great), it would seem reasonable to bring the files for the Property, Justice and Administrative Data Center utilize the library and librarian of one of the two adjoining centers. Closing Comments It is apparent from our findings that many of the problems in processing the County's huge payroll are due to the handling of paperwork at the individual departmental level by both a personnel section and a payroll section. When the proposed computerized PPBR (Personnel, Payroll, Budget and Retirement) system is installed, perhaps a year and a half from now, it is to be hoped that many of the functions of the departmental personnel and payroll sections can be eliminated and that these sections will be consol- idated so that duplicate handling (and cost) of data before transmission to the Auditor-Controller's Special Claims section can be avoided. BUREAU OF RESOURCES AND COLLECTIONS: Corrections Indicated A) The BRC receivable records should be computerized to aid in controlling accounts and to provide more timely and analytical information on the accounts receivable. B) BRC should upgrade the security of its records. C) Outstanding field receipt forms should be audited by either the Auditor-Controller or BRC on a frequent and surprise basis. WELFARE EXPENDITURES AND REVENUES: Corrective Actions Needed
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R382) The development of public transportation systems that will reduce air pollution should
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R18-36months. STATE DIRECTOR OF SOCIAL WELFARE Since most of the fifty or more social welfare programs administered by the county are created by state legislation based on federal law (only General Relief is under county control and 100% county financed - about 15% of the county expenditure) Robert Martin, State Director of Social Welfare, was invited to speak to the Jury. He stated that his department fulfills the federal requirement for one state agency to receive all federal monies and prepare one basic plan for all the counties based on the Social Security Act, HEW regulations, etc. It also supervises local administration through county welfare departments of all categorical aid programs (AFDC, AB, OAS, ATD), Food Stamps and others. He briefly outlined parts of the President's proposed welfare reforms - FAP - still slowly moving through Congress and which could result in substantial changes in welfare administration and procedures. The effects FAP would have in California must await an analysis of the measure in its finally passed form. He called the following points to the Jury's attention: 1) A welfare recipient often can do better financially than someone working, particularly when additional benefits such as Medi-Cal are taken into consideration. 2) The changes in social conscience and structure because of which the state is replacing former family ties and responsibilities. State of Calif.-Human Relations Agency, Dept. of Social Welfare, Annual Statistical Report, Public Welfare in Calif. 1968-69 Increased activity of community action groups (funded by OEO, often) legal 3) assistance groups, welfare rights organization which have emphasized that "welfare is a right, not privilege" and not stressed responsibility. Class court suits of which 65% have been won by the plaintiff and in each case result 4) in liberalized regulations which the county must implement at an inordinate price tag, i.e., welfare payments to needy children can no longer take into account the income of a step-father. Services should be separated from income maintenance; there has been an "over-sell" 5) of services and too little practical help. THE MANAGEMENT COUNCIL Lawrence T. Cooper, President, the Management Council, told the committee of his organization's work and the efforts of some of the private sector in providing jobs. The Council was started in 1965 follow- ing the Watts Riots. It is a catalyst whose major function is to encourage employers to reach into dis- advantaged areas to discover, recruit and hire qualified persons to fill open jobs without lowering their standards. The goal is to provide an escape route for the needy to permanently remove themselves from the disadvantaged category. He reported: According to a 1966 USC survey, fifteen months after the program began 203 1) companies had hired 17,903 persons; two-thirds of these were still with the same company; of the one-third who left their original job, one-half were working for higher pay (average for men and women, $2.75 per hour). Most of the persons had obtained raises, about one-third had moved into better homes, all the companies were satisfied, and none of the terminations indicated discrimination. There has been real progress towards cooperation and proper job opportunity fore- 2) casting between business, industry and educational, training institutions. Appreciable improvements have been noticed in communication, overcoming of 3) resentments, frustration, bitterness and distrust. However, these areas remain as a continuing need and challenge. The Council works with CAMPS, National Alliance of Businessmen, and refers 4) persons to proper Manpower Development Training Programs. He noted that, in his experience, MDTA funds were well spent in this county. In 1970 the problems are greater and somewhat different. 90% of the unemployed 5) lack basic education and skills - 0-3 grade reading level, whereas 4th or 5th grade level is considered minimum. About 150,000 new arrivals settle in the county's disadvantaged areas each year (about 1,000 black, 800 Mexican-American per month). Were it not for this influx of new residents, he felt the problems could be solved in six or seven years. Some advances, but too slowly, are being made in placing people as apprentices with 6) the union trades. Lack of basic business know-how dooms most small independent business ventures 7) to failure. About 11% are considered sound enough to be given help. On the committee's recommendation, the 1970 Grand Jury adopted a letter - "commending the Management Council for its outstanding success in bringing together qualified job applicants from disadvantaged areas and employers in need of workers . . ." Copies of this letter were sent to the Governor and other concerned Federal, State and local public officials. COOPERATIVE AREA MANPOWER PLANNING SYSTEM In further pursuit of evaluating training programs and job opportunities, the committee investigated CAMPS. Donald Fishel, Executive Secretary, Los Angeles Committee, Cooperative Area Manpower Planning System, spoke to the committee. CAMPS is a network of national, regional, state and local committees created in 1967 to provide a coordinated framework for the identification of manpower needs and solutions of manpower problems in the disadvantaged areas. It is to develop operating and financial linkages among agencies and programs to reduce duplication and to make the best uses of all available resources. Each local committee must prepare a yearly Area Plan which is to be an inventory of resources, identify needs and serve as a guide for all subsequent actions. The goal of CAMPS is to provide aid to needy clients by providing education and training for employment, placement in jobs while providing related services to overcome individual obstacles. CAMPS is badly needed and a most commendable concept which may yet develop into an effective means for coordination. There are, however, at present a number of deficiencies: 1) It lacks authority and control, particularly over the funding of projects and programs. 2) Frequently local plans are funded unilaterally by Washington without local CAMPS consultation; evaluation by and recommendations from CAMPS should be mandatory. 3) A mass of independent legislation added since the Manpower Development Training Act was enacted in 1962 has produced duplication and confusion aggravated by the great number of governmental agencies involved (Labor, HEW, OEO, Commerce, Housing and Urban Affairs, Agriculture, Interior, Civil Service . . .) 4) Lack of committment to CAMPS on the part of some agencies and representatives. However, to date, CAMPS has led to inter-agency dialogue, sharing of information and some areas of agreement. Mr. Fishel expressed the hope that the President's MTA of 1969 (particularly SB 2838) would be enacted this year. These measures would de-categorize and consolidate many programs and give more local authority. FOOD STAMPS The Food Stamp Program was of continuing concern to the committee. While this was essentially conceived as a program to increase the consumption of domestic foods, it does have a prime human goal - the better feeding of hungry people. Mrs. Eileen Jensen, Chief, Food Stamp Program, State of California and Steve Larson, County Coor- dinator, spoke to the committee on separate occasions. USDA has full approval over a county's participation in the program. The State Department of Social Welfare administers it but delegates the certification of applicants, storage and protection of stamps and issuance of stamps to the counties. Basically, all assistance families and certain non-assistance, low-income families are eligible to participate in the program. The two speakers were in substantial agreement about the problems in the program as it now operates: 1) Only about 25% of the potentially eligible low-income families use the stamps in California; only about 21% of assistance families (33% of AFDC, 15% of ATD, OAS, etc.) 2) Differences and inconsistencies between HEW and USDA regulations and determina- tion of gross-net income adds unnecessarily to administrative and audit costs of the program. The lack of convenient, efficient economical delivery system discourages potential 3) participants in the program. In the county there are, at latest count, only 106 sales outlets. Delays caused by re-certification and monthly distribution of ATP's (authorization 4) to purchase). There is some philosophical resistance to the program, as voiced by Welfare Rights 5) Organization representatives, and particularly an objection to the restrictions on purchases. The expense (100% county) of each sale handled by the contract banker or other 6) outlet. (Almost $1.00 per transaction at present.) The committee adds these observations: The use and definition of "household" in the program enables, for instance, several 1) persons in a commune to qualify for food stamps. Present eligibility procedures make it possible for persons for whom the program is 2) not intended to take advantage of it. For example, college students - married or in a "household" - who do not choose to work and participate illegally in the program. Registering for and accepting employment should be an enforced, mandatory condi- tion for participation in the program. Stricter security measures to protect against theft of food stamps and the use of such 3) stolen stamps are urgently needed. A pilot program, currently in two county offices, would seem to overcome some of the above problems. This allows a recipient to authorize the purchase price of his stamp allocation to be deducted from his monthly grant check. The stamps and net amount of the grant are then mailed to him. This procedure eliminates the distasteful, inconvenient standing in line to buy stamps. It is recommended that a careful evaluation of this pilot be undertaken next year. WATTS SKILL CENTER The committee and other jurors visited the Watts Skill Center serving South Central Los Angeles. It is, since 1966, housed in an old mattress factory and has "Name of the Game is Jobs!" as its motto. The Center is funded by Manpower Development Training Act monies; the State Human Resources Department has the responsibility of selecting participants and referring them to the Center and the Los Angeles City School District operates the school. Once a trainee is enrolled, attendance in assigned classes is mandatory since acceptance of responsibil- ity and a regular schedule are essential components of the program. A single trainee receives $53 per week and is "docked" for tardiness and unexcused absences. Training programs are open-ended - average length of a class is 40 weeks - and a trainee must leave the program when he has reached his employability level. Vocational counselors and others at the Center work on job development for and placement of the job-ready trainee. The varied vocational training programs include one operated by Pacific Telephone Company which guarantees employment with the company upon satisfactory completion. These were the main facts to which the committee wishes to call attention: 80% of the enrollees are on probation or parole and this seriously affects their 1) employability. 2) Many enrollees have legal, personal and health (alcohol) problems and these are more prevalent among men. 3) Extensive counseling to change attitudes, convince participants to accept education, training and responsibility is required in almost all cases. 4) The Center serves 800-900 persons per year and reports that, to date, 75-80% of the graduates have remained employed. 5) The use of nearby Los Angeles City School facilities is an efficient use of public resources and one that should be continued and expanded if possible. 6) Practical illiteracy is a serious problem; the goal is to enroll trainees in basic education and bring them to 5th grade level before they enter a vocational program. DEPENDENT CHILDREN Visits were made to Mac Laren Hall and the Olive View Cottages. These facilities are operated by the county for dependent, neglected or abused children who are in protective custody for a few hours to several months. (A few "non-placeables" may remain for years.) By law these children must be kept separate from delinquent juveniles; there are about 12,000 of these youngsters in the county at any one time. Depending on the child's needs and problems as well as his home situation he is returned to his home (about 50% in one - two weeks), placed in a foster home, private child care institution, state mental hygiene facility, or with relatives. The institution's program includes physical care, continued partic- ipation in education, individual guidance, and professional observation of each child to plan for his future. The committee arrived at the following conclusions: 1) It must be decided which department has final authority over and responsibility for MacLaren Hall and its charges since Probation Social Services, Education and others are involved. 2) Regrettably, there are far too many repeaters among the neglected, abused children in protective custody - a parent must be proven unfit or guilty of abuse. 3) More and better foster homes are needed especially for teenagers; these offer a more home-like, natural environment at about half the cost of institutional custody. 4) When financially able, legal parents or guardians should be made to pay all or at least part of the cost of caring for their children. The committee recommended and the Grand Jury adopted: 1) That MacLaren Hall be replaced, as already authorized, with the greatest possible speed. The CAO replied that funds for architectural plans are in the 1970-71 budget and that a timetable is being developed. 2) That the two dependent children's cottages at Olive View be immediately phased out because of their excessive costs and staff problems. The CAO replied that the pilot cottage program is being phased out in 1970. LOS ANGELES TRADE TECHNICAL COLLEGE In response to publicity charging that Los Angeles Trade Technical College has free, unfilled classes and two or three job offers for every graduate, the committee questioned Ellis P. Murphy, Director of the Department of Public Social Services. These are the obstacles cited which prevent greater utilization of the college by welfare recipients and other unskilled, unemployed persons: In addition to the cost of books, tools, transportation, etc., there are some charges: 1) $6.50 per semester for a minimum of 12 units for day students and $2.50 plus $3.00 per unit per semester for night students. Some WIN enrollees have been placed in the college and it is expected that further 2) placements will be made when Educational and Training Services Program funds become available. The college, a public school, is limited in the extent to which it may promote or 3) advertise its services. A schedule of classes is available free at the school and all public libraries but none is mailed except on request. There is too much emphasis, to a certain extent, on a liberal arts college program 4) and a resultant rejection of education and training for skilled, blue-collar work. CHILD SUPPORT PAYMENTS Earl Osadchey, Head Deputy District Attorney, Child Support Division, and Captain Bert Dreebin, Office of the District Attorney Bureau of Investigation, explained the laws and efforts pertaining to collecting child-support payments from fathers. In civil welfare cases the superior court must order payments made to the Court Trustee who forwards them to DPSS. The Court Trustee must notify the district attorney if payments are not made as ordered. In criminal, e.g., "willful failure to provide necessities" cases, the mother must sign a complaint against the father. The committee learned the following: About ¾ of the criminal cases received are from welfare families. 1) Only about 75% of the welfare mothers give even partial cooperation and while 2) this could cause their removal from welfare in accordance with this Code, due to court decisions and DPSS policies, this, in fact, never happens. Over one-half of these cases involve illegitimate children and proving paternity is 3) very difficult. The numbers of cases are vast; in August, 1970, 22,021 criminal non-support cases 4) were opened and another 978 were reopened. There are ten regional offices employ- ing 88 people of whom only 27 are D.A. investigators to handle all these cases. Better enforcement of the laws governing non-support by fathers is indeed needed. 5) This requires greater cooperation by DPSS with this Division and added manpower to cope with the large, difficult caseload problem. VENICE CIVIC UNION Mr. Barry L. Goodman, president of the Venice Civic Union, spoke to the committee and other jurors and expressed these concerns: 1) The need to teach about crime prevention, respect for law and authority, and the dangers of drug abuse from elementary school on. 2) The importance of evaluating if government funds used to sponsor various community action programs were really used for the betterment of the community's citizens. 3) The violence, intimidation and disruption occurring in many of the area's schools. 4) The need for a Directory of Services so that one call to a Coordinator or Help Line will provide the individual with the name of the proper agency or service which he requires. Such a Directory would save time, reduce frustrations, provide inter-agency communications, and aid officials and agencies to pinpoint the community's most urgent needs and problems. On the positive side he cited these community youth programs: 1) The Marina del Rey "Junior Crime Prevention Club" and the Grandview "I'm a Helper" Club. 2) The KIWI Teen Post where there are many constructive activities. Specifically, athletic programs sponsored by members of the Los Angeles Police Department; also community service projects done in conjunction with staff members of the Venice State Service Center. COUNTY'S ROLE IN WELFARE Chief Assistant County Counsel, John Larson spoke to the committee about the county's authority in determining welfare programs and expenditures. He made these points: 1) Over the years the federal government has created numerous welfare programs which the states could or could not adopt. The federal money available upon implementation led California to implement most available programs. 2) The State of California chose to let counties administer all categorical aid (AFDC, OAS, AB, ATD) but the counties have no control over eligibility requirements, size of grants, etc. 3) When federal or state funds are reduced or cease, the county has the difficult emo- tional and political choice of reducing or eliminating the program or assuming 100\% of the cost 4) Recent federal relaxation of rigid compliance requirements to "adequate and workable" has been of some help in reducing administrative costs. 5) The state requires the county to provide some aid to all who are needy but not eligible for categorical aid. This General Relief is 100% county expense and amounted to $23.5 million in 1969-70. 6) Many Office of Economic Opportunity funded programs create further problems for the county because the joint power contracts establishing them are dictated uniformly in Washington and frequently do not meet the local needs of specific counties. There has been much publicity given to the concept of the state or federal government assuming the entire cost of welfare. Therefore, the committee asked how much of the county's welfare budget is met by the local taxpayer. The reply is that $182,082,173 ($35,341,878 administrative costs and $146,740,295 aid payments) is paid by local taxes. This out of the current $907,500,000 welfare budget in a county budget of $2.2 billion. In reply to a further question, the committee was informed that there are no citizenship requirements for categorical aid or general relief; several federal court decisions declared that welfare aid cannot be restricted to U.S. citizens, and, in fact inquiry may not be made as to whether an applicant for assistance is lawfully in the United States. WELFARE ABUSE Criminal cases involving county welfare workers and recipients revealed the following: The Department of Public Social Services and particularly DPSS District Offices are 1) apparently unconcerned and lax about applying federal, state and county provisions regarding eligibility requirements and the current status of recipients. Efforts to ascertain that only the proper payments are made are given "low priority." The required re-affirmations of eligibility are frequently completed by eligibility 2) workers without reviewing the substantiating documents as required by law. Forms used to request and obtain assistance are readily available and in no way is 3) their use controlled by, for instance, serial numbers. Discontinued cases are fed into the computer only once a month. This allows the 4) computer to process warrants for discontinued clients. Such cases should be voided immediately. Paid warrants are not checked in a manner which would reveal obviously irregular, 5) unusual, or suspicious payments. Discontinued case files are not kept in a locked location where their numbers could 6) not be used for obtaining warrants. Access to these files should require at least an eligibility worker and a supervisor's signature. Not enough emphasis is placed on determining the actual existance and custody of 7) children in the county's 103,000 AFDC families (450,000 recipients). It is surprisingly easy to use a number of county warrants for the down payment on 8) an expensive automobile or to deposit these in a savings account. Supplementary grants are readily made and without verification of need nor a review 9) of the number of reasons for such prior grants. For further data and recommendations, refer to the 1970 contract-auditor's findings report - . WEST DISTRICT HEALTH CENTER The committee visited the New West District Health Center which opened in March 1970 and serves 600,000 residents of the area. Historically the function of the Health Department is prevention of disease and protection of the community. However, there is a growing trend towards a more curative approach as evidenced by the pilot family health care clinic. Also, there are greater efforts to develop programs to meet local needs as the community sees them within legal limits. These goals and programs were outlined by District Health Officer George Prichard, M.D., and County Health Officer Gerald Heidbreder, M.D. Clinic services provided include birth control and family planning, venereal disease detection and treatment, pre-natal care, immunizations, etc. A Youth Clinic is held at the Venice Sub-center Monday-Friday evenings from 4 to 10 p.m. Veneral disease, serum pepatitis, malnutrition, and drug abuse present the most serious problems at this location. The Hospital Department has staff for medical aid and referral to physicians and hospitals in this Center. The Mental Health Department will begin offering services from this location in the future. The further development of coordinated health services from this Center is called to the attention of the 1971 Grand Jury. Of note is the proposed merger, adopted in principle by the Board of Supervisors, of the three departments involved into one Department of Health Services. Of special concern is needed growth in these areas: 1) The drug-abuse clinic in the Venice Sub-center with enough competent, qualified personnel and the availability of hospital beds for those suffering from barbiturate withdrawal - this is an urgent, immediate need. 2) Acceptance by the Venice community of the Center's location and services which requires, among others, the overcoming of worries regarding child care, transportation and emergency services. 3) Cooperation between the county, local volunteer groups and public and private agencies to provide the community with necessary health-care services. RECOMMENDATIONS The following recommendations from this committee, adopted by the Grand Jury, are called to the attention of the 1971 Grand Jury: 1) Consolidation of Adult Aid Programs (OAS, AB, ATD) under Social Security so as to simplify procedures, avoid duplication and save administrative costs. The Board of Supervisors and Mr. Murphy approve and recommend this action. However, legislative changes at the state level are required and they advised their legislative advocate of the matter. 2) Opposition to a proposed $6.4 million remodeling of Old Olive View Hospital as submitted by the Hospitals Department. Also, that serious consideration be given to the sale of an apparently unused 380 acres of land at Olive View. The Board of Supervisors referred this matter to the CAO and Director of Hospitals on October 13, 1970. 3) The approval of a contract between Olive View Hospital and UCLA Medical Center with utmost speed so that there may be the varied, quality staff needed by a complete community hospital. The Board of Supervisors referred this matter to the CAO for report on May 12, 1970. 4) Concurrence in an Alameda County Grand Jury resolution that the state legislature amend the Welfare and Institutions Code to provide identical penalties for theft of welfare funds by welfare recipients as theft of funds from any other source by any other person. Action by Congress to change the 1967 amendments to the Social Security Act to 5) close a loophole and set a definite ceiling on the gross income an AFDC family may have and still be eligible for welfare payments. Allowing deductions of "exemptions and allowable expenses" from a gross income of $1,048 per month (mother with three children) to arrive at a "net" income entitling the recipient to $152 welfare grant is violating the intent of welfare. The Board of Supervisors approved and so advised its legislative advocate. Requested a reaction to the comments that the raising of county intern and resident 6) salaries to such a large extent has had an adverse effect upon recruitment of staff on UCLA Medical Center and other state and private institutions within the county. The matter was referred to the CAO for report on July 10, 1970. The need for a Directory of Services for the Venice area so that one call to a Coor- 7) dinator or Help Line will provide the individual with the name of the proper agency or service which he requires. Such a directory would save time, reduce frustrations, provide inter-agency communication, and aid officials and agencies to pinpoint the community's most urgent needs and problems. The matter was referred to the CAO and other affected departments to prepare a recommendation on October 27, 1970.
* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.