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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.

San Mateo County Grand Jury • 2012-2013

SAN Mateo County Special Districts:

Published: July 12, 2013 77 pages
View PDF View Full Original

Findings 14 findings

F1 Page 60
The Board and the Manager share in responsibilityfor the lack of oversightthat was instrumental in allowing the embezzlement to occur. The City ofHalf Moon Bay agreeswith this finding.
F2 Page 60
The Manager and the Board' s finance committee did not recognize red flags in the financial reports that could have revealed the embezzlement far sooner. The City of Half Moon Bay agreeswith this finding.
F3 Page 60
The insurance company's denial ofthe District's embezzlement loss claim reinforces the conclusion that there were inadequate management practices, insufficient accountability, and inadequate oversight ofthe District. The City of Half Moon Bay disagrees with this finding. The issue of insurance coverage is complex, with multiple legal issues. It is not possible totake a position without an in -depth understanding ofthe District's insurance policies.
F4 Page 61
The District's Manager did notfollow policies and procedures in the hiring of one ofthe employees subsequently charged with embezzlement. The City of Half Moon Bay agrees with this finding.
F5 Page 61
The District did not have adequate internal financial controls in place to prevent the embezzlement or lead to its early discovery. The City ofHalf Moon Bayagrees with this finding.
F6 Page 61
Trustees and senior District staff should receive monthly financial reports. The City of Half Moon Bayagrees with thisfinding.
F7 Page 61
The Board in general and its finance committee in particular did an inadequate job of overseeing the District's operations. The City of Half Moon Bay agrees with thisfinding.
F8 Page 61
The Board's evaluation ofthe Manager revealed significant differences in the levels of confidence in the Manager's ability to manage the District. The Cityof Half Moon Bay agreeswith this finding.
F9 Page 61
The District would benefit from a redesigned Manager evaluation process. The City of Half Moon Bay agrees with this finding.
F10 Page 61
Trustees are confused about their responsibilities, some feeling their only role isto make district policy, while others feel they have more oversight responsibility. The City of Half Moon Bay agrees with this finding.
F11 Page 61
Even though LAFCo Commissioners rejected the recommendation to dissolve the District and transfer itsfunctions to the CEHD, this issue needs further evaluation. The City of Half Moon Bay agrees with this finding and would support further evaluation of the matter.
F12 Page 61
Cost savings could possibly be achieved with a transfer ofthe District's functions to the CEHD. of3 The City of Half Moon Bay agrees with this findingand would support further evaluation of the matter.
F13 Page 28
LAFCo would benefit from additional resources to ensure Service Reviews, as mandated by State law, are performed in a timely fashion' Response: son Mateo LAFCo ogrees with the finding ond offers additional information' The Cortese Knox Hertzberg Act (Act) sets forth budget adoption process and the funding formula for LAFCos. The Act sets forth that each LAFCo shalt adopt a budget os on Ìndependent agency' Once adopted the Act stipulates that the budget shatl be apportioned in thirds to the County, cities and independent special districts. Pursuont to the formulo, the city and independent special district shares ore determined proportionally based generalfund revenues as reported to the stote controller. The Board of supervisors does not have exclusive authority to increose the LAFCo budget. As noted in the Grond Jury Report, LAFCo composition consists of two members of the boord of supervisors, two members of city councils, two independent special dìstrict board members and a public member. This composition gives eoch lunding entity representotion in determining the LAFCo budget. tn the current fiscot year, the Commission augmented the budget by 550,000 to fund consultønt prepared reports to expedite completion of munìcipal service reviews' The Commission has the discretion in future years to odopt a budget that includes resources to complete municipol service reviews. ZO¡Z-I3 Civil Grand Jury -San Mateo County Mosquito and Vector Control District September L6,2OI3
F14 Page 62
Not all cities appoint a representative to the Board in a timelyfashion or select a qualified individual as stipulated in the Health Code. The City of HalfMoon Bay agrees with this finding.

Recommendations 3