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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.
⚠️ 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 8 findings
F1
Tbe MCSD sbould carefully monitor tbe revenue and expenditures of its Benefits Insnrance Program and provide timely reports to tbe DTA that clearly reflect the status oftbe Program.
F2
Tbe MCSD sbould augment its efforts to communicatef"mancial transactions within the Benefits Insurance Program in a manner that can be easily understood by certificated employees.
F3
Tbe MCSD sbould give serions consideration to tbe DTA's request for tbe establisbmentofa Trust Fund for specific purpose of compartmentalizing all financial transactions related to tbe Employee Benefits Insurance Program. 16 ereed ~~c<dc -l:il: 444 West23t<l Stree1,Men:ed,CA 95340 '" ~t9&k7l'lfUdi1II ~OOI Phone (209)385-6600Fax(209) 385-6393 D\S"<- BoardofEduc:ation: PresidentDennisJordan;ClerkTomParker,DarrellCberf;GeneStamm;SusanWalsh ActingDistrictSuperintendent: RoseMaryP. Duran. Ed.D. February, 25, 2009 Mr. Harlan Dake, DeputyForeperson 2008-2009 Merced Couoty Grand Jury P.O. Box 2034 Merced, California 95344 Rc: Merced City Scbool DistrictResponseto GrandJury Complaint 08-09-5 Dear Mr. Dake: TheMerced CitySchool District bas reviewed the findings and recommendations oftheMerced County Grand Jury Report coocerning complaintNo. 08-09-5. Iunderstand that this complaint was presented to the Grand JurybytheMerced CityTeachers' Association (MCTA) overtheir feeling that the District had mismanaged theself-insured health careplan. Grand Jury Recommendations: Finding: TheMCSD shouldcarefullymonilortherevenueandexpendituresofitsBenefits Insurance Programandprovidetimelyreports to theDTA thatclearlyreflect thestatusa/the Program. District Response: The Districtwill revise its financial reports to present the revenueand expenditure information to DTA in a more easilyunderstood fonnat. Finding: TheMCSDshouldaugmenl itsefforts10 communicntejinancialtransactionrwithin Ihe BenefitsInsuranceProgram ina mannerthatcan beeasilyunderstoodbycertificatedemployees. DistrictResponse: The Districtdiscontinuedits Self-InsuranceProgram. withtheexceptionof Dental, asofJune30, 2008. Everyeffort will bemadetoensure DTAcompletelyunderstands anyfinancial information presented tothem.. Finding: The MCSDshouldgiveseriousconsideration to theDTA'srequestforthe establishmentofa Trust Fundforspecificpurposeofcompartmentalizinga//financial transactionsrelatedto theEmployeeBenefitInsurance Program. District Response: The District maintains aseparateFund attheCountyTreasurysolely forthe purposeoftrackingrevenues and expenses for theHealth Insurance Program. 17 "ToansurethataverystudantuceJs~cadfH1lJcaIJy.buildscharacter, andIsaproductivemamblJrofourcommunity... -- """"""'" Fdlfuafy25.2009 PageZ0(2 I appreciate theopportunityto respond to the Merced CountyGrand Jury findings. Sincerely, rtrrt~ ~~ao, RoseMary Ed.D. RD:ktk 18 MERCED COUNTY 2008-2009 GRAND JURY COMPLAINT # 08-09-09 Board ofCommissioners Housing Authority ofthe County ofMerced (HACM) SUMMARY The Grand Jury received a complaint regarding Board ofSupervisor appointments made to the Housing Authority's Board ofCommissioners. (BABC) The complaint was accepted by the Grand Jury and assigned to the Law and Justice Committee. The complaint alleges that the recent appointees to the BABC were biased and had financial conflicts ofinterests; moreover, tbe complaint alleges tbat these appointees were responsible for the financial losses incurred by tbe Housing Authority (HA). The complaint also alleges harassment and retaliatory behavior by at least one commissioner directed at the Executive Director. INTRODUCTION On February 26, 2008, the Board ofSupervisors adopted Resolution 2008-28 which was intended to provide a formal, fair and equitable process for making appointments to boards, commissions and committees ofMerced County. Provisions ofthis resolution stipulate that candidates for at-large Board of Supervisorappointments complete an application and supplemental questionnaire that details their background and experience. Also, candidates must submit to an interview before the full Board ofSupervisors. Each Board member evaluates the candidates' applications, questionnaires, and interviews. Tbe top scorers above a minimum of70% are eligible for appointment. As reflected in the Board ofSupervisors minutes ofthe February 26" meeting, Supervisor Nelson stated words to the effect that the aforementioned resolution will not only require the completion ofForm 700 (disclosure ofpotential conflicts ofinterest) for people interested in serving on Boards, Commissions and Committees, but also will require the stated additional steps in the appointment process. He also stated that the proposed changes will, "ensure the County has ethical representatives." The complaint delineates five (5) major areas ofconcern regarding the process by which commissioners are appointed and warranted examination for possible abuses or conflicts ofinterest, to wit: 19
F4
A Commissioner ofthe HA asked tbe BABC to use HACM funds to satisfy bis personal dehts and to indemnify him against any legal action stemming from his association with Firm Build. Tbe BABC voted to partially approve the Commissioner's request by payingseveral thousand dollars ofthe Commissioner's personal debt.
F5
A recent appointee who was a former employee ofHAMC was alleged to have made threatening remarks directed to the Executive Director that were retaliatory in nature. METHOD OF INVESTIGATION The Law and Justice Committee interviewed various County Supervisors, selected HACM staffand certain members ofthe BABe. Various documents and selected correspondence pertinent to tbe complaint were also reviewed by tbe committee. Tbe Committee also attended one meeting oftbe BABe. FINDINGS l. We find that the Executive Director acted appropriately when she denied Firm Build's request to renew its contracts with the HACM.
F6
We find that the Board ofSupervisors erred in judgment by appointing a former disgruntled employee ofthe HA to the BABe.
F7
We find that the aforementioned Commissioner mentioned in finding #6 has been grossly unprofessional by displaying retaliatory and potentially slanderous behavior toward the Executive Director. We further find that such behavior is seriously detrimental to orderly conduct ofBABC business.
F8
The HA is not in compliance with its own By-Laws (Article 1,Section 4). RECOMMENDAnONS
Recommendations 6
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R2The MCOE should obtain the required building permits for future construction projects and should bavethe projects inspected as required.
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R3For all future projects, the MCOE should bave a contractsigned by both parties to ensure the speci.ficationsofthe contract are followed to the letterofthe contract.
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R4The MCOE should provide more supervision and oversight when it enters new projects. There was clearly a lack ofboth in the construction ofthe ATC and the MCOE and Finn Build needed to communicate more often and effectively.
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R5The MCOE should ensure there is no conflict ofinterest when it enters into agreements with outsideentities who desire to become involved in its operations.
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R6The MCOE is encouraged to continue to look for funding and contributions with then local community to aid in funding for the WLA.
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R7The MCOE should follow good accounting practices for aU recordkeeping, keeping careful recordsofall incurredexpenses involvingoutside parties, such as the case with Finn Build. GLOSSARY OFTERMS MCOE: MercedCounty ofEducation MOU: Memo ofUnderstanding HAMC: HousingAuthorityofMerced County ATC: Automotive Training Center QZAB: A federal bond WLA: Workplace Learning Academy 26 Postscript to FY200712008 Grand Jnry's Report On The City ofLivingston Summat")' On its own initiative, this Grand Jury voted to revisit the findings ofthe previous year"s Grand Jury as relates to the City ofLivingston. This decision was prompted by the City ofLivingston's response to those findings that primarily consisted ofdenialsofall the
Commendations 3
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CM1 Page 9Thedepartment should train oneofficerifthey determine a K-9 unil is needed.
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CM2 Page 9The department needs more space, hut it should be noted they opti~the space they currently have. - 9 Merced County Sheriff's Office Main Jail Mandated Inspection Introduction The Merced County Grand Jury inspected the mainMerced CountyJail at700 W. 22'" Street 00 February 18,2009. This inspectioo is to be performed annually as prescribed by California Penal Code Seetioo 919. MembersoftheGrnndJury met withofficerJeffMiller, who atthetimewas in chargeof thejail. He provided a quickoverviewofthejail operationsand a reportofthejails employmentneeds. Healso expressedan apparent lackofconcernby the Merced County Supervisorson the oeed for additional staffand theconditionsoftheoutdated facility.
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CM3 Page 14Chief Fitchie and Sergeant Stygar provided an informative tour and project a positive presence and attitude. The Grand Jury also commends the Los Banos Police DeparUncnt for producing well-written reports and posting them on their website. 14 ( Complaint # 08-09-5 Merced City School Teachers Association SUMMARY The Grand Jury received a complaint regarding the Merced City School District's lack ofclarity and comprehensiveness in accounting for and reporting ofrevenue and expenditures in the Employee Benefits Insurance Program for the last two years. The complaintwas accepted and assigned to the Health, Education and Welfare Committee. In it's investigation the committee found that prior to 10101103, the Merced City School District (MCSD) had serviced its health care benefitsfor certificated employees by using SISK(SelfInsure SchoolsofKern), a statewideconsortium ofschool districts that pooled their funds to minimize risk. From 10/01/03 until 06/31107, the MCSD was selffunded for health care benefits. On Jnly I, 2008, the MCSD returned to SISK. In its investigation, the committee also found that administrative staff changes within the Bnsiness Office during the above timeframe were pertinent to the complaint. INTRODUCTION Tbe Grand Jnry received a complaint that mismanagement ofhealth care funding bad caused an increase in employee contributions toward bealth care insurance premiums and that, for the last two years, requests for an accounting ofhealth care costs have been metwith varied, inconsistent and inaccurate figures. MEmOD OF INVESTIGATION Individuals from the District Teachers Association and the Business Office were interviewed. Documents presented hy these individuals were reviewed. Among the documents reviewed were revenue and expenditure reports pertinent to the Employee BenefitsInsurance Program and the MCSD Annual Financial Reports for ftseal year 03-04 through 06-07, the latter being provided by the indepe"I!ent auditing firm ofVavrinek, Trine,Day & Co. , LLP. 15