Herald Fire Protection District Update

Recommendations 31

• R1

  Page 97
  HFPD has made progress in implementing the recommendations contained in the report especially in the area of improving the safety of its volunteers.
• R2

  Page 97
  The annual financial audits have not been completed and there are still six years outstanding from Fiscal Year (FY) 2010-2011 through FY 2015- 2016
• R3

  Page 97
  Additional work needs to be done to address the district’s financial vulnerabilities, especially in paying funds owed to CalPERS.
• R4

  Page 97
  Sacramento Local Agency Formation Commission (LAFCo) never completed the Municipal Service Review (MSR) of the HFPD that it agreed to conduct in response to the report. Summary of Recommendations
• R5

  Page 97
  The HFPD should continue to maintain a safe working environment by updating its policies, procedures, equipment and training for its volunteer firefighters.
• R6

  Page 97
  The district should take steps to ensure that audits of past years are expedited bringing the financial records up to date.
• R7

  Page 97
  The district should set aside a specific fund to pay any outstanding debts identified in the audits and the amounts owed to CalPERS. This fund should not be tapped to pay other ongoing expenses. 87 -2018
• R8

  Page 98
  LAFCo should complete an MSR of the district no later than the end of FY 2017-2018, either as a separate entity or as part of a general review of fire district services in the southern part of the county. Summary of Responses
• R9

  Page 98
  HFPD started with enhancing the individual safety equipment used by each volunteer. The investment of personal protection equipment totaled approximately $20,000 per volunteer. It is not the intent of the district to ignore the CalPERS contract termination. It has been a conscious effort to utilize the limited resources where they are most needed; protecting the safety of our volunteers and our community.
• R10

  Page 98
  On August 30, 2017, Richardson & Company began the audit for FY2010-2011 and FY 2011-2012. District staff is making preparations for the remaining audits of FY 2012-2013 through FY 2015-2016 with a goal to begin those in the spring of 2018. The completion of these remaining audits will remain a top priority of the district and they will continue to strive to meet the internal completion deadline of December 31, 2018. These audits are also subject to budgetary restrictions.
• R11

  Page 98
  Upon submitting the response to the grand jury in September 2017, the district has no outstanding debts, aside from the recent purchase of a new command vehicle. All outstanding debts that were found by district staff or auditors have been paid, including all payments requested thus far from CalPERS. The District received a letter from CalPERS, acknowledging their receipt of HFPD’s intent to terminate the contract and indicated that a valuation of the potential unfunded liability or surplus would be provided to the District in 4-6 weeks. As of September 2017, when the grand jury response was prepared, the district has not received a final valuation on the potential unfunded liability or surplus from CalPERS. Therefore, the District has chosen to budget neutrally for CalPERS, until receipt of the final valuation.
• R12

  Page 98
  The Herald Fire Protection District MSR was completed in December 2017 by LAFCo. Comments The 2017 – 2018 Grand Jury notes that the required response was submitted in a timely fashion in compliance with Penal Code Sections 933 and 933.05. HFPD put in place an aggressive plan to have all previous year audits completed at the close of the calendar year 2018. The district acknowledges a potential budget issue in relationship to CALPERS. However, HFPD has not received any indication from CALPERS as to either an unfunded liability or 88 when HFPD responded to the grand jury report. The district has decided to budget “neutrally” until final valuation has been received. HFPD has upgraded all of their personal protection equipment, as well as made changes to their training program, to improve the volunteer skills and knowledge of fire service. Their current budget funds the enhancement of equipment, service and hiring of additional personnel to increase the overall response levels. The district should be commended for the numerous steps made in increasing the ability to provide better service to their community. Note In November of 2017, after Herald Fire submitted their response to the 2016- 2017 Grand Jury report, CalPERS issued Herald Fire Protection District a $404,535 invoice. According to the January 31, 2018 Galt Herald a board representative stated, “The district is committed to fully executing this contract dissolution, including payment of the termination liabilities and finally ending this long chapter with CalPERS.” 89
• R13

  Page 97
  The annual financial audits have not been completed and there are still six years outstanding from Fiscal Year (FY) 2010-2011 through FY 2015- 2016
• R14

  Page 97
  Additional work needs to be done to address the district’s financial vulnerabilities, especially in paying funds owed to CalPERS.
• R15

  Page 97
  Sacramento Local Agency Formation Commission (LAFCo) never completed the Municipal Service Review (MSR) of the HFPD that it agreed to conduct in response to the report. Summary of Recommendations
• R16

  Page 97
  The HFPD should continue to maintain a safe working environment by updating its policies, procedures, equipment and training for its volunteer firefighters.
• R17

  Page 97
  The district should take steps to ensure that audits of past years are expedited bringing the financial records up to date.
• R18

  Page 97
  The district should set aside a specific fund to pay any outstanding debts identified in the audits and the amounts owed to CalPERS. This fund should not be tapped to pay other ongoing expenses. 87 -2018
• R19

  Page 98
  LAFCo should complete an MSR of the district no later than the end of FY 2017-2018, either as a separate entity or as part of a general review of fire district services in the southern part of the county. Summary of Responses
• R20

  Page 98
  HFPD started with enhancing the individual safety equipment used by each volunteer. The investment of personal protection equipment totaled approximately $20,000 per volunteer. It is not the intent of the district to ignore the CalPERS contract termination. It has been a conscious effort to utilize the limited resources where they are most needed; protecting the safety of our volunteers and our community.
• R21

  Page 98
  On August 30, 2017, Richardson & Company began the audit for FY2010-2011 and FY 2011-2012. District staff is making preparations for the remaining audits of FY 2012-2013 through FY 2015-2016 with a goal to begin those in the spring of 2018. The completion of these remaining audits will remain a top priority of the district and they will continue to strive to meet the internal completion deadline of December 31, 2018. These audits are also subject to budgetary restrictions.
• R22

  Page 98
  Upon submitting the response to the grand jury in September 2017, the district has no outstanding debts, aside from the recent purchase of a new command vehicle. All outstanding debts that were found by district staff or auditors have been paid, including all payments requested thus far from CalPERS. The District received a letter from CalPERS, acknowledging their receipt of HFPD’s intent to terminate the contract and indicated that a valuation of the potential unfunded liability or surplus would be provided to the District in 4-6 weeks. As of September 2017, when the grand jury response was prepared, the district has not received a final valuation on the potential unfunded liability or surplus from CalPERS. Therefore, the District has chosen to budget neutrally for CalPERS, until receipt of the final valuation.
• R23

  Page 98
  The Herald Fire Protection District MSR was completed in December 2017 by LAFCo. Comments The 2017 – 2018 Grand Jury notes that the required response was submitted in a timely fashion in compliance with Penal Code Sections 933 and 933.05. HFPD put in place an aggressive plan to have all previous year audits completed at the close of the calendar year 2018. The district acknowledges a potential budget issue in relationship to CALPERS. However, HFPD has not received any indication from CALPERS as to either an unfunded liability or 88 when HFPD responded to the grand jury report. The district has decided to budget “neutrally” until final valuation has been received. HFPD has upgraded all of their personal protection equipment, as well as made changes to their training program, to improve the volunteer skills and knowledge of fire service. Their current budget funds the enhancement of equipment, service and hiring of additional personnel to increase the overall response levels. The district should be commended for the numerous steps made in increasing the ability to provide better service to their community. Note In November of 2017, after Herald Fire submitted their response to the 2016- 2017 Grand Jury report, CalPERS issued Herald Fire Protection District a $404,535 invoice. According to the January 31, 2018 Galt Herald a board representative stated, “The district is committed to fully executing this contract dissolution, including payment of the termination liabilities and finally ending this long chapter with CalPERS.” 89
• R24

  Page 97
  The HFPD should continue to maintain a safe working environment by updating its policies, procedures, equipment and training for its volunteer firefighters.
• R25

  Page 97
  The district should take steps to ensure that audits of past years are expedited bringing the financial records up to date.
• R26

  Page 97
  The district should set aside a specific fund to pay any outstanding debts identified in the audits and the amounts owed to CalPERS. This fund should not be tapped to pay other ongoing expenses. 87 -2018
• R27

  Page 98
  LAFCo should complete an MSR of the district no later than the end of FY 2017-2018, either as a separate entity or as part of a general review of fire district services in the southern part of the county. Summary of Responses
• R28

  Page 98
  HFPD started with enhancing the individual safety equipment used by each volunteer. The investment of personal protection equipment totaled approximately $20,000 per volunteer. It is not the intent of the district to ignore the CalPERS contract termination. It has been a conscious effort to utilize the limited resources where they are most needed; protecting the safety of our volunteers and our community.
• R29

  Page 98
  On August 30, 2017, Richardson & Company began the audit for FY2010-2011 and FY 2011-2012. District staff is making preparations for the remaining audits of FY 2012-2013 through FY 2015-2016 with a goal to begin those in the spring of 2018. The completion of these remaining audits will remain a top priority of the district and they will continue to strive to meet the internal completion deadline of December 31, 2018. These audits are also subject to budgetary restrictions.
• R30

  Page 98
  Upon submitting the response to the grand jury in September 2017, the district has no outstanding debts, aside from the recent purchase of a new command vehicle. All outstanding debts that were found by district staff or auditors have been paid, including all payments requested thus far from CalPERS. The District received a letter from CalPERS, acknowledging their receipt of HFPD’s intent to terminate the contract and indicated that a valuation of the potential unfunded liability or surplus would be provided to the District in 4-6 weeks. As of September 2017, when the grand jury response was prepared, the district has not received a final valuation on the potential unfunded liability or surplus from CalPERS. Therefore, the District has chosen to budget neutrally for CalPERS, until receipt of the final valuation.
• R31

  Page 98
  The Herald Fire Protection District MSR was completed in December 2017 by LAFCo. Comments The 2017 – 2018 Grand Jury notes that the required response was submitted in a timely fashion in compliance with Penal Code Sections 933 and 933.05. HFPD put in place an aggressive plan to have all previous year audits completed at the close of the calendar year 2018. The district acknowledges a potential budget issue in relationship to CALPERS. However, HFPD has not received any indication from CALPERS as to either an unfunded liability or 88 when HFPD responded to the grand jury report. The district has decided to budget “neutrally” until final valuation has been received. HFPD has upgraded all of their personal protection equipment, as well as made changes to their training program, to improve the volunteer skills and knowledge of fire service. Their current budget funds the enhancement of equipment, service and hiring of additional personnel to increase the overall response levels. The district should be commended for the numerous steps made in increasing the ability to provide better service to their community. Note In November of 2017, after Herald Fire submitted their response to the 2016- 2017 Grand Jury report, CalPERS issued Herald Fire Protection District a $404,535 invoice. According to the January 31, 2018 Galt Herald a board representative stated, “The district is committed to fully executing this contract dissolution, including payment of the termination liabilities and finally ending this long chapter with CalPERS.” 89