Score: +19
(19/0/0)
Sonoma County Grand Jury
• 2022-2023
City of Sonoma Cemeteries Don’t Bury Your Problems
⚠️ 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 and Recommendations 7 findings
F1
The City of Sonoma is seriously remiss in not charging, collecting, reporting, or paying sales tax on tangible items sold through the cemeteries, resulting in a liability for the City.
Related Recommendations (3)
R1
By July 31, 2023, The City of Sonoma contacts the California Department of Tax and Fee Administration to establish procedures to collect, report, and pay sales tax on tangible items sold at the cemeteries. (F1)
R2
By December 31, 2023, The City of Sonoma conducts a thorough analysis of the systems, processes, and procedures related to cemeteries, to include the current software program used. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in the Fund, and we encourage the City to include an operational analysis as well. (F1, F2, F3, F4, F7)
R3
By December 31, 2023, the City of Sonoma develops a policies and procedures manual for the operations of the Cemetery Program. (F1, F2, F4, F5, F7)
F2
Responsibility for managing collection and payment of sales tax on cemeteries’ tangible items is not delegated to any staff member or department, which has contributed to the City’s failure to meet its responsibility to report and pay the sales tax obligation.
Related Recommendations (3)
R2
By December 31, 2023, The City of Sonoma conducts a thorough analysis of the systems, processes, and procedures related to cemeteries, to include the current software program used. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in the Fund, and we encourage the City to include an operational analysis as well. (F1, F2, F3, F4, F7)
R3
By December 31, 2023, the City of Sonoma develops a policies and procedures manual for the operations of the Cemetery Program. (F1, F2, F4, F5, F7)
R4
By December 31, 2023, the City of Sonoma designates a manager to oversee the cemetery day-to-day operations. (F2)
F3
The cemeteries have been losing money for an undetermined number of years and the operating expenses must be subsidized annually by the Endowment Fund which is not invested to generate adequate income; $50,000 has been transferred for each of the past seven years and presumably will continue, resulting in the eventual depletion of the Endowment Fund.
Related Recommendations (2)
R2
By December 31, 2023, The City of Sonoma conducts a thorough analysis of the systems, processes, and procedures related to cemeteries, to include the current software program used. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in the Fund, and we encourage the City to include an operational analysis as well. (F1, F2, F3, F4, F7)
R5
By December 31, 2023, the City of Sonoma conducts a thorough review of the Cemetery Endowment Fund. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in that fund and the Grand Jury recommends that the Endowment fund is included in that analysis. (F3, F5)
F4
Sonoma is undercharging for lettering services and ring and vase sets, resulting in financial loss to the Cemetery Enterprise Fund.
Related Recommendations (2)
R2
By December 31, 2023, The City of Sonoma conducts a thorough analysis of the systems, processes, and procedures related to cemeteries, to include the current software program used. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in the Fund, and we encourage the City to include an operational analysis as well. (F1, F2, F3, F4, F7)
R3
By December 31, 2023, the City of Sonoma develops a policies and procedures manual for the operations of the Cemetery Program. (F1, F2, F4, F5, F7)
F5
The Cemetery Endowment Fund is shrinking since the cemeteries are nearly built out, therefore there are limited opportunities to assess endowment fees. The Fund does not appear to be invested based upon the financial statements.
Related Recommendations (2)
R3
By December 31, 2023, the City of Sonoma develops a policies and procedures manual for the operations of the Cemetery Program. (F1, F2, F4, F5, F7)
R5
By December 31, 2023, the City of Sonoma conducts a thorough review of the Cemetery Endowment Fund. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in that fund and the Grand Jury recommends that the Endowment fund is included in that analysis. (F3, F5)
F6
Recently, the City of Sonoma has had high turnover in several senior management positions. No evidence of a policies and procedures manual exists for any of the cemeteries, nor does the City published information on cemetery fee schedules; all indicating neglect of cemetery operations.
No recommendations for this finding
F7
The cemetery invoice forms do not have a line item for calculating sales tax for tangible items therefore, the accounting software program used by Sonoma does not report on their sales tax liability, resulting in failure to charge, collect, report, or pay sales tax to the CDTFA.
Related Recommendations (2)
R2
By December 31, 2023, The City of Sonoma conducts a thorough analysis of the systems, processes, and procedures related to cemeteries, to include the current software program used. The Grand Jury is aware that the City of Sonoma has cited their intention, in their fiscal year (2022-2023) goals, to complete a financial analysis of the Cemetery Fund and develop a plan for resolution of the deficit in the Fund, and we encourage the City to include an operational analysis as well. (F1, F2, F3, F4, F7)
R3
By December 31, 2023, the City of Sonoma develops a policies and procedures manual for the operations of the Cemetery Program. (F1, F2, F4, F5, F7)
Conclusions 1
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CL1 Page 10The Grand Jury examined numerous documents and compared vendor invoices to the sales receipts issued to people who purchased tangible items and services sold by the cemeteries. The Grand Jury found that no sales tax was charged on any of the supplied invoices for tangible items. The only fees indicated on City of Sonoma sales invoices are a flat administrative service charge. The CDTFA states that tangible products sold are subject to sales tax. After reviewing Sonoma’s financial reports created by their software program, it does not appear that the City charges, reports, or remits sales tax for tangible cemetery sales. Sonoma has three cemeteries that are not self-sustaining. The Endowment Fund has been financially supplementing the cemeteries since 2016. The general response from staff to questions regarding the cemeteries indicated that they are a service for the public and thus not there to make a large profit. This sentiment is admirable, but the reality is that maintenance costs have risen without an increase in fees. This lack of attention to accounting, pricing, and marketing has contributed to the need to subsidize the cemeteries from the Endowment Fund. Once this fund is depleted, the cemeteries’ maintenance will have to be subsidized by Sonoma and its taxpayers.
Agency Responses 2
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.