Financial Services and Government Services Committee

Tax collections were being held for several months before being deposited, causing a significant loss in earned interest income in the Lake County General Fund, as well as serious concerns by the tax payers of Lake County regarding their seemingly unpaid tax bills and uncleared checks. Checks received were not being endorses upon receipt, creating a critical daily security risk. Cash drawers were being allowed to collect excessive amounts without being drawn and without being reconciled on a daily basis, creating a critical security risk. As a result of the Grand Jury investigation, collections are now being routinely deposited, cash drawers are being drawn down in a timely manner and checks are being endorsed immediately upon receipt. However, daily reconciliations are still not occuring. http://www.co.lake.ca.us/generalinformation/grandjury/report0001/treasurer-taxcomplaint.html (1 of 2)4/17/2007 3:09:33 PM County of Lake - 1999/2000 Grand Jury Report

Monthly reports are not being submitted to the office of the Auditor/County Clerk as required by state law.

In the past three plus years, the Treasurer/Tax Collector has allowed tax delinquent properties to remain on the tax rolls without implementing the foreclosure procedure. Property Tax revenues replenish the 689.02 Redemption Fund For Funding of 1995 Bonds for the payment on existing Bonds. Without these tax revenues, the 689.02 fund will be depleted by September, 2001, and the monies to make the bond payments will have to be drawn from the Lake County General Fund. As a result of this Grand Jury investigation, and by agreement of the Treasurer/Tax Collector, a small number of the tax delinquent properties were placed into the foreclosure process and more than $66,000 was collected through March 1, 2001.

The installation of and training on the Mega-Byte computer system took longer than expected. There were also marked problems concerning the delegation of duties and the cross-training of staff. During the course of the grand jury investigation, a Chief Deputy Treasurer/Tax Collector was hired and some delegation of duties and cross-training of staff has occured.

The Lake County Treasurer's Oversight Committee does not meet quarterly as required by state of law.