Special Committee Final Report - Compliance on Annual Audits for Special Districts*

Conclusions 1

• CL1
  The Grand Jury thanks all of those volunteers who serve their particular area of interest especially the Fire Fighters and Medical Aid personnel. The escalating costs of the audit, as prescribed by Government Code §26909, is increasingly difficult for some District's within the county to pay from their budgets. In some cases the cost of the audit(s) actually impedes the District's from performing the very services they are intended to perform. The Grand Jury, by this Final Report, continues to highlight the appropriate section of Government Code §26909 (f), which can authorize a one-year, two-year or five-year audit cycle, as applicable. SPECIAL NOTICE: The Grand Jury takes Special Notice that some current Grand Juror's serve on selected District's or Community Service organizations covered by this report. Those affected Grand Jurors excluded themselves from participating in discussion or voting. RESPONSES REQUIRED: All of the recommendations listed above are directed to the Board of Supervisors or their designated staff. Under Penal Code 933, the following entities are required to respond to the listed findings within the time period indicated: Board of Supervisors (BOS) 90 Days Auditor/Controller 60 Days Acting County Administrative Officer (CAO) 60 Days RECENED TRINITY COUNTY BRIAN E. MUIR, COUNTY AUDITOR-CONTROLLER DAVID NELSON, CHIEF DEPUTY AUDITOR-CONTROLLER P.O. BOX 1230, WEAVERVILLE, CALIFORNIA 96093 PHONE (530) 623-1317 FAX (530) 623-1323 TO: The Honorable Anthony Edwards, Presiding Judge of the Superior Court Brian Muir, Auditor - Controller FROM: CC: Kelly Frost, Deputy Clerk to the Board of Supervisors SUBJECT: Response to Recommendations of 2003-04 Grand Jury Special Committee Report re: Compliance on Annual Audits for Special Districts DATE: July 2, 2004 The Grand Jury Special Committee has requested a written response to their final report on Compliance on Annual Audits for Special Districts. In my capacity as Auditor/Controller performing the duties of County Administrative Officer my response is as follows: Finding #1: The Special Grand Jury Committee found a great deal of misunderstanding exists within the County regarding the audit cycle requirements of Government Code §26909(f) for District's, which allows a one-year or two-year or five-year audit cycle. It was further discovered by conversations with the County Auditor/Controller, Board of Supervisors members and Special District Board members that varying interpretations or requirements are being applied, at will. This variation of audit cycle selections is not well understood. Response: I disagree. The requirements of the law are not being applied at will. In fact, the requirements of the law are being uniformly applied. Recommendation #1: The recommendation has been implemented. As County Auditor/Controller I have read and understand Government Code 26909. As in the past, I will be available to assist special districts in understanding the Code provisions and advising them on appropriate audit cycles. Finding #2: Government Code §26909(f) authorizes a five-year audit cycle providing the BOS adopts an annual budget threshold not to be exceeded by the District. Response: I agree. Recommendation #2: Implementation of the recommendation is a decision of the Board of Supervisors. The issue will be placed on the Board agenda within 60 days. The Board will have to weigh the right of citizens to know how government funds are used against the minimal savings created by a five-year audit cycle. BM:wt FIECETORET. TRINITY COUNTY BOARD OF SUPERVISORS P.O. BOX 1613, WEAVERVILLE, CALIFORNIA 96093 PHONE (530) 623-1217 FAX (530) 623-8365 WATER ∕ૐ m, TO: The Honorable Anthony Edwards FROM: Trinity County Board of Supervisors SUBJECT: Response to the 2003-04 Trinity County Grand Jury &-17-04 Special Committee Final Report "Compliance on Annual Audits for Special Districts" DATE: August 9, 2004 The Grand Jury Special Committee has requested a written response to their final report on "Compliance on Annual Audits for Special Districts". Finding # 1: We disagree with the finding. The requirements of the law are not being applied at will. The requirements of the law are being uniformly applied. Recommendation #1: The recommendation has been implemented. The Board of Supervisors and the County Auditor/ Controller understand Government Code 26909. The Auditor/Controller is available to assist Special Districts in understanding the Code and advising them on appropriate audit cycles. If the Special Districts need assistance, they should contact the Auditor/Controller immediately. Finding #2: We agree with the finding. Government Code 26909 authorizes a five-year audit cycle providing the Board of Supervisors adopts an annual budget threshold not to be exceeded by the District. Recommendation #2: The recommendation was on the Board of Supervisor's Agenda for July 20, 2004. At that meeting the Board voted to not set a budget threshold that would allow a 5-year cycle for audits. That decision was based on the minimal savings created by a 5-year audit cycle vs. the public's right to know how government funds are used. Also, the changing of personnel within the Special Districts can make a 5-year audit cycle extremely difficult. If saving precious dollars is the issue, perhaps the Special Districts should consider forming a Joints Power Agreement that would allow them, as a larger organization, to go to a competitive bid process for all of their audits. -146- BILL CHAMBERS BILLIE MILLER RALPH MODINE HOWARD FREEMAN VACANT DISTRICT 1 DISTRICT 2 DISTRICT 3 DISTRICT 4 DISTRICT 5

No Responses Found 3

Government entities assigned to respond to this report. No response documents have been linked in our database.