OFFICE OF THE AUDITOR-CONTROLLER

June 19, 1995

TO: Rodney S. Melville, Presiding Judge of the Superior Court
Robert Glick, Grand Jury Foreman

FROM: John Torell, CPA, Asst. Auditor-Controller

RE: Grand Jury Interim Final Report - Budget, Planning and Control

Per the Grand Jury's request, and as required by law, we are responding to those recommendations made in the subject report which pertain to our Department.

Recommendation 1: The County Administrator or the Auditor Controller should provide at least one summary page in both the Proposed and Final Budgets that shows the total amount of funds under the budgetary control of the Board, omits duplication, and clearly tracks how all costs roll into this total of County expenditures.

Auditor-Controller's Response: We agree with the Grand Jury's recommendation and will work with the County Administrator to develop a clear, straightforward presentation of the total amount of funds to be appropriated by the Board as well as a clear description of how the various costs roll up into the total expenditure plan.

Recommendation 4: The Auditor-Controller, in cooperation with the County Administrator, should complete and implement the new accounting system as quickly as feasible to permit the central monitoring of expenditures by program, since it is programs and their costs that are more readily understood by the public.

Auditor-Controllet's Response: The County's new Financial Information Network (FIN), due to come "on-line" July 1, 1995, is designed to permit the tracking of expenditures by program. The definition of specific "program" criteria and the development of program budgeting and monitoring procedures should, we believe, require one to two fiscal year periods to be fine-tuned and operational.

Recommendation 5: The County Administrator, in conjunction with the Auditor-Controller, should revise the accounting for internal services to reflect the cost of all necessary support services as expenses to the operating departments, particularly those who recover overhead from other governmental agencies.

Auditor-Controller's Response: We agree with the Grand Jury that "the concept of Net County Cost as currently applied misleads the public, and possibly even the Board of Supervisors, as to how and where discretionary funds are to be spent-,. W,6 agree with the need to revise the accounting for internal services to reflect the cost of all necessary support services as expenses to operating departments as recommended by the Grand Jury.

c: Kent Taylor, County Administrator