June 19, 1995 JUNE 19, 1995

Dear Judge Melville,

I have read and reviewed the brief report on the Annual Financial Report released on May 17, 1995. The cover sheet provided to our office indicated that I should respond to recommendations #2 and #3. Pursuant to this directive, the following is my response as required by Penal Code Section 933c:

Recommendation #2: The Grand Jury should establish a Year-round standing Financial Audit Committee to work with the Auditor Controller's Office in an on-going manner to ensure that appropriate corrections are made so that what has occurred during the year contains no surprises at year's end.

I concur that it is important to track changes in financial position throughout ft Year to assure no surprises occur at year's end. A standing committee of the Grand Jury would facilitate this. A standing committee might be able to gain a deep understanding Of ft significant variances between budgeted revenue and actual revenue s that some departments seem to encounter each year. Addressing this issue would improve the Overall management County operations.