HomeMy WebLinkAboutMINUTES - 09171996 - C72 (ru: BOARD OF SUPERVISORS F8�HS-02 ,,E..SE,_L-..o Contra
FROM: FAMILY AND HUMAN SERVICES COMMITTEE Costa
Count
DATE: September 9, 1996
rT'9 COUN'�
QUARTERLY REPORTS ON THE STATUS OF THE HEAD START
SUBJECT: PROGRAM AND ON THE USE OF THE COMMUNITY SERVICES BLOCK
GRANT
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. ACCEPT this report from the Family and Human Services Committee on the
status of the Head Start Program and on the status of the use of the
Community Services Block Grant.
2. DIRECT the Community Services Director to make a further report to our
Committee on the Head Start Program and on the use of the Community
Services Block Grant on December 9, 1996.
BACKGROUND:
On May 14, 1996, the Board of Supervisors directed that the Community Services
Director make quarterly reports to our Committee on the status of the Head Start
Program. In addition, on July 16, 1996, the Board of Supervisors referred to our
Committee a June 26, 1996 letter from the U.S. Department of Health and Human
Services summarizing the results of their audit of the Head Start Program during the
period from May 29, 1996 to May 31, 1996.
On June 25, 1996, the Board of Supervisors directed that the Community Services
Director make quarterly reports to our Committee on the use of the Community
Services Block Grant funds.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOA DCO
APPROVE OTHER
SIGNATURESChAITW
ACTION OF BOARD ON Suptembe APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: I. IV and II-NOES: III AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: V ABSTAIN: None OF SUPERVISORS ON THE DATE SHOWN.
County Administrator ATTESTED '7,PntPmhPr 17, 19Q6
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: Community Services DirectorVISORS AND COUNTY MI ISTRAT
Auditor-Controller
County Counsel
BY
r a
Q � .
F&HS-02
On September 9, 1996, we met with the Community Services Director, Scott Tandy,
and reviewed the attached report with him.
In regard to the Head Start report, Mr. Tandy reported that he was bringing a former
Federal Regional Office Head Start official on as interim Head Start Director
effective immediately. At the same time, recruitment is underway for a permanent
Head Start Director. The grant application for 1997 for the Head Start Program has
been completed and is on the Board's agenda on September 17, 1996, for approval.
In answer to a question from Supervisor DeSaulnier, Mr. Tandy noted that there have
been problems with the accounting in the Department because accounting has been
delegated to individual divisions. While this, in and of itself, is not a problem, these
off-line accounting systems have not always reconciled with the County's books and
this has caused a problem. Mr. Tandy reported that he is working with the Auditor-
Controller and staff in the County Administrator's Office to resolve these problems.
In regard to the Community Services Block Grant (CSBG) and the delinquent reports
which are reflected in the attached correspondence from the State Department of
Community Services and Development, Mr. Tandy reported that he and his staff are
working very hard to insure that all delinquent reports are completed and submitted.
He noted that State staff had just completed a three-day audit. The result of this
audit is that the State staff identified problems with nearly every contract the
Department has involving CSBG funds. As a result, the State will be asking for a
fiscal audit of the use of Community Services Block Grant funds. A formal letter
should be arriving from the State within two weeks.
We appreciate the efforts Mr. Tandy and all of the staff are making to get better
control of the Community Services Department and its programmatic and fiscal
affairs. We are asking that a further quarterly report be made to our Committee on
December 9, 1996 and we will make a further report to the Board of Supervisors
following that meeting.
-2-
,Comrhulnity Services Department . Child Development 374-3994
Contra., Child Nutrition 374-3850
AdministrationO Costa CommHead Start 646-5540unty Action 313-7363
1220 Morello Avenue, Suite 101
Martinez, California 94553-4711 Count Housing and Energy 646-5756
(510)313-7350
Fax: (510)313-7385
Scott Tandy, { -
Director
srd"cou'n`'+K
August- 12, 1996
TO: Family and Human Services Committee
FROM: Scott Tandy
c
SUBJECT: Community Services Block Grant - Quarterly
Report
Recently the Board of Supervisors directed the Human Services
Committee to provide additional oversight to the Head Start and the
Community Services Block Grant programs. The following is the
first quarterly report and while I have attempted to obtain all
relevant information it is entirely possible that further facts
currently unknown may negatively impact the County General Fund
beyond what I have reported to date.
Head Start
1. A Transition Team made up 'of elected representatives from all
levels of the organization has been meeting .weekly throughout
the summer to advise on the restructuring of the program and
its component parts. The Transition Team has developed a
Mission Statement. A new organizational chart has been
prepared and there has been detailed discussion on all
elements of the program including a number of positions and
position titles, the need for training, and improving our
relationship with delegate agencies.
2 . Daneen Cali resigned as Program Manager, effective August 5,
1996. On July 18th I informed the Policy Council of my
recruitment plans. I have appointed Rose Manning, former
Deputy Director in Social Services for Child Welfare, to be
the interim director, subject to approval by the Policy
Council on August 16th. She will be working three days a week
providing management support and guidance to the program. It
is my intention to replace her with a former Head Start
manager from the federal level some time next month, as we
recruit for a permanent, full time Program Manager.
3 . Central office staff has been diligently working on the 1997
grant application, modeled after the successful Sacramento
County program and we anticipate will be considered by the
Policy Council and the Board of Supervisors in the near
future.
Affirmative Action/Equal Opportunity Employer
4. We are actively engaged in a wide range of discussions
requiring meet and confer sessions with Local 1 in an effort
to resolve problems and agree upon new systems and processes
as they affect our employees.
5. I believe that Head Start employees should be commended for
their continued commitment to children and families. Your
Committee has recognized the difficult environment in which
they have had to perform their duties and your continued
support and encouragement is welcomed. I believe the Head
Start program is in a period of recovery and look forward to
this coming year in solving problems in a collaborative
manner.
6. The Head Start Accountant has brought to my attention a
$385, 000 accounting error that may negatively affect the
General Fund. We are working with the Auditor-Controller's
Office and the CAO's Budget officer to see if this error can
be corrected. The accounting error occurred in August of 1995
and was not detected until late July of 1996. The
decentralization of the CSD accounting system took place in
December, 1994 .
7. A major and serious concern is the discovery that the Head
Start allocation to support the central administration costs
(personnel, accounting, secretarial and administration) was
exhausted in June, 1996. Unbudgeted administrative costs
continue to be charged to Head Start. This problem must be
addressed by either an infusion of General Fund cash, a budget
change or layoff of central administrative staff or
combination of the above.
Community Services Block Grant
On July 24, 1996, I provided the Board of Supervisors my ninety day
report on the status of the CSBG program and the relationship with
the Economic Opportunity Council (copy attached) . Since that time,
the following new developments can be shared:
1. Status report from the State of California on reports, both
pending and delinquent (copy attached) .
2 . Copy of notice from the State of California regarding failure
to receive reports and withholding of funds (copy attached) .
3 . The 12-month continued review of CSBG revenues leads me to
believe that the 1996 allocation will be exhausted by
approximately mid-September as a result of the over-commitment
of expenditures in both Personnel and Contracts. Without an
infusion of General Fund money it will be necessary to prepare
quickly a Phase II layoff plan in order to minimize the impact
on the County treasury.
4. I continue to have serious concern about the ability of some
department staff to respond in an accurate and timely manner
to the requirements of the State of California for both
program and fiscal reports.
ST/jm
cc: Board of Supervisors
Phil Batchelor
09-09-1996 02:19PM FROM CCC COMM SVCS DEPT TO 8-64098 P.02
oar munity Services Departmen# Child;l�e,�i�9 ,ent 3T4-MJ
y,
Contra Child NuSlion 374-SNO
Adminisfraticfi
Costa +Communty Acgon 313-Mi
12.20 Morella Avenue,Suite 101 County
Head Start 646-5640
Martinez.C�lilomia 94553-.4711 L.J1J 4 01 1� Housing and Enemy 645758
(510)313-735f�
F=(510)313-7355
Scott Tandy,
I
I
FROM.= July 25, 1996
i
TO: Board of Supervisors and County Administrator
FROM: Scott Tandy, Director, Community Services Department
SUBJECT: 90 Day Status Report on the Community Services Department
t
Purpose,
The pub of this report is tco provide the Board of Supervisors and CAO with a 9.0'day status
t
report cf my findings and experiences in the Community Services Department. It documents'the
conditions l'have found, actions I have taken, additional fiscal and administrative concerns and
the need for a Phase I and Phase ll layoff plan.
On May 7, 1996, as part the Third Quarter Budget Report, after an initial review of the GSD
budget advised you of a prolpcted deficit at June 30, 1996, of$250,000 to $300,000. On May
17, 19964 provided the CACI a report further detailing my concerns particularly in the
administration of the COMMt nity Services Black Grant and significant over spending in the
Weatheriaation program. Aft r a more thorough review and a number of new revelations, I
believe that the projected deficit is still in this range and could grow even higher.
Unfortunately, there is no realistic way for the Department itself to balance its budget other than
through significant expenditure reductions.
i
Backg und:
My first`n#n*-days wiith the 30mmunity Services Department has been both exciting and
difficult. Exciting because ol the opportunity to work with dedicated line staff in the programs
where airect services are pr<vided to people on a daily basis. Difficuft, because of the internal
management conflicts and $ ady stream of revelations exposing administrative
inadesgLacies and fiscal deficits.
I 1 :
i
i
Affirmative Action/Equal Opportunity Employer
I
08-09-1996 02:19PM FROM CCC COMM SVCS DEPT TO 9-64098 P.03
It is ap rarent to me that not all of the problems facing this Department have been discovered.
Due to the extensive and su::=ssful efforts necessary to correct deficiencies in the
Head Start program during.he months of April and May, I was unable to begin any! meaningful
analysi!s orf the WeatherizaWn and Community Action programs until early June.
For exed.iple, accounting systems and procedures have been decentralized to the extent that it
is extremely difficult to obtain factual fiscal information on a timely basis. Combined:with internal
perfor .6,nce problems and conflicts between -managers has made it difficult in reaching final
closure do a number of issues. Nevertheless, I believe it critical that you be apprist,.%d of the
major fi ridings to date, as well as the projected cost to the County General Fund for:FY 1995-96
and additional costs for FY t9W97-
1. Weatherizatlon Deficit FY 1995-96 j$116,000)
In discussions with the Adminisbrative Services Officer, I was advised that the Weathedzation
program has been spending between $5,000 and $12,000 per month more than whOt was
being e in revenue. TI-is opinion was confirmed by the Accounting Supervisor`. Bot
indic at program losses in this Division had been occurring for more than a year. Despite
their doUmen and repeated warnings to their superiors, the cost overruns and program
losses tre apparently ignored.
As of Jurie 30, 1996, the deftit stands at approximately$116,000, and this will bean obligation
of the Colunty General Fund. In order to verify how this happened, I have engagedthe audit firm
of KMP�Peat Marwick to perform an independent review.
In order t6 avoid further losses, the proposed County budget for the Housing & Ensr'gy Division
budget f6r FY 1996-97 calls`or phasing out Division operations by September 1, 1996 becau'
of a lack of available contras funds combined with continued Division losses. This 0hase I
closure Will impact a total of seven full time employees, will result in an additional oast of
$24,00P 110 the FY 1996-97 General Fund for continued program losses, and cause the
temporary cessation of weatherization services for eligible residents for the remainder of 1996.
In the past month I have:
Hold weekly meetings every Tuesday for the last four weeks with the affected
erriployees to get their input on possible solutions;
Reviewed and evalu2ted the feasibility of possible contracts with EBMUD, City of
00nooFd and CAUNEVA to avoid layoffs and provide possible employment over the
nekt several months;
2
08-09-1996 02:20PM FROM CCC COMM SVCS DEPT TO 8-64098 P.04
Contacted the General Services Director and labor organizations to discuss possible
ialnsf6rs options into trade positions if no realistic alternatives are available;
rted the process to restructure the Weatherization program and restore it :in January
(1997 to function vw"rh a balanced budget;
2. Head Start Local Match Deficit IFY 1996-96 ($�63,000)
Head Start Regulations require a 25 % Non-Federal Local Matoh- For our 1995 Head Start
grant of.approximately $5.6 million dollars, an additional $1.4 million dollar Non Fed6ral Local
Match ip required . Areview of the 1995 program year Head Start fiscal report sent W ACF on.
March Zi 1., 1996, documented ashortfall in Non-Federal Local Match of approximat441y
$ 319,010, We are searching for all methods to document In-Kind and volunteer services in
order to fill this gap. The net liability could be as high as $253,000 to the County General Fund.
I have made this a high priority item,
3. 1996 Cent-.*I Administration Deficit FY 1996-97 ($221,416)
There i rno formalized budget for the Department's Central Administrative Office. This offloe,
housespr'oximately 18 employees and contract personnel, and provides administiative
oversight and support to the Department's four Divisions. In order to determine the host of this
function I'have had constructed the following 1996 Central Administration budget of'projected
expenditures and revenues:
LZomditure DescriMign daunt
personnel &Contractors $ $95,351
Space 65$269
$$8G Sub-Contractors 81,900
her Costs -62-4-14
Total Projected Costs. $1,1104,934
Re�e�ue Sources Amount
Community Services Block Grant 389,188
Child Development Division 269,378
Fie0d Start Division 106,200
oth,er Available Reverues
Available Revenue 883,606
Projected Deficit (221,328)
3
00-09-1996 02:20PM FROM CCC COMM SVCS DEPT TO 9-64098 P.05
The prc leded defidt that will need additional analysis in order to determine-the ext4int of cost
reductions and potential need for a Phase If layoff plan
4. Problems with the State Department of Community Services and DevellQp ment.
Serious.deficiencies have been uncovered in the administration of the four programs with the
State Department of Community Services and Development(SDCSD), which provides funding
the fallowing contracts:
Community Service Block Grant(CSBG),
Department of Energy (DOE);
Low Income Housing & Energy Assistance Program (LIHEAP)
Stewart B. McKinney
I was-nntacted in mid June :)y Lupe Urretia of SDCSD who advised me of her agency's serious
concerr S-about the poor communication , delinquent reports, lack of attendance at.State
trai nings and the general relationship between her agency and the Departments management
She advised that the County is now being recognized as a �concemed contractor and that the
States intends to conduct a fill audit in August.
-Some examples of the deficiencies I have discovered are:
$80,000 in 199.5) CS13G funding earmarked for community based orgahizatidn's
poverty programs was not provided to those agencies due to a late contract start-
up;
Failure to subrinit a 1995 CSBG contract extension resulted in the loss of$58,000
in poverty program dollars for the County and must be returned to the State;
$24,598 in Stewart B. McKinney funds were billed to the State that internal
accounting records indicate were never expended. This matter requires further
review by a pro essional investigator,
Both the 1998 and 1997 Community Action Plan were submitted late, placing
CSBG funds at jeopardy
A tremendous amount of work still needs to be done to resolve the current list of the
outstanding problems with SDCSD to bring the department back into compliance.Tli e
Depart ent's credibility with this State agency has been tarnished, and needs to be 'restored.
4
08-09-1996 02:21PM FROM CCC COMM SVCS DEPT TO 9-6409e P.oe
i .
5. gt-:onornic Opportunity Council Concerns.
The EOomio Opportunity Council (EOC) serves as a advisory body to the Board in its
capacz;as the County's Community Action Agency. The EOC has expressed extreme
€rustratioir and Retion with the Department's lack of communication, loss of 1995 C88G
money and general neglect of their needs. Discussions with the CSBG Program Coordinator
have confirmed these claims, and at least one EOC member has recently resigned.:
The EOC was given the authority by the Board of Supervisors to provide critical oversight to the
Department on poverty program issues. The Department has failed to follow through in its
responsioility to provide the EOC with the support it needs and requires to be an essential
element 6f the C8BG contrast and program-
I am a qe ely concerned about the impact of these problems as they relate to current and
future n ing given the lack of EOC participation for the last 18 months.
In June I took immediate act;on to schedule EOC meetings in June and July, and am working
closely N,ith the Council-to resolve their concerns.
6. L)ficollectable F"fior Year Revenues. IFY 1995-96 ($75,000)
Approxi�ately$75,000 in ac.-awed Departmental revenues from prior periods is probably
uncolWWble, should be recognized as uncallectable, and will be a charge to the IFY. 1995-96
General Fund.
7. 11996 Unbudgelled Head Start Occupancy Costs.
Approxi-motely $166,000 of soace and occupancy costs for the 1996 Head Start program were
not budo,&ted in the application. I have advised ACF of this problem, and am working with Head
Start StAff to resolve this profi-ated budget issue-
08-09-1996 02:21PM FROM CCC COMM SVCS DEPT TO 5-64098 P.07
f E
i
R
Cumulative Surnmary of Fiscal Problems:
Lased an the above issues,the following represents by fiscal year the best estimates of the
actual aria potential financia impacts to the County General Fund: i
� 9
FY 9 FY. 96-97*
Weatherization Deficit ($116,000) ( 24,000)
1995 Heid Mart Local Match Deficit 253,0100) 0
1996 Adrininistrativn Office Ceficit 0 {221,416)
r
UncollecWble Prior Year Revenue (--75,000) 0 i
Totals ( 444,000) 245,416)
k
*For the period ending December 31, 1996. E
6 i
i
i
I
TOTAL P.07
% el
STATE OF CALIFORNIA-HEALTH AND WELFARE AGENCY PETE WILSON.Govemor
DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT
A Quality Management Department
700 North 10th Street,Room 258
Sacramento, CA 95814
(916)322-2940
(916)327-3153(FAX)
(916)327-6318(TDD)
August 1, 1996
Mr. Scott Tandy,
Executive Director, Contra Costa County
Community Services Department
1220 Morello Avenue, Suite 101 AN _ S 1996
Martinez, CA 94553-4711
Subject: COMMUNITY SERVICES BLOCK GRANT(CSBG) 96F-�.:1333
Dear Mr. Tandy:
The Department of Community Services and Development(CSD) is unable to process
payments for two CSBG expenditure reports submitted by Contra Costa Community Services
Department on July 19, 1996. The reports cover the period of March 1, 1996 June 30, 1996.
The combined amount of expenditures is for$171,367.72.
CCCSD has failed to submit to CSD the first and second quarter program activity reports.
as required in Sections 27.A and 27.B of 1996 CSBG contract. The reports were due to CSD on
April 15, 1996 (first quarter) and July 15, 1996 (second quarter). Ms. Lupe Urrutia, CSD Field
Representative, has made various calls to Contra Costa Community Services Department
(CCCSD) program staff requesting the reports. The most recent call was to Mr. Darnel Turner
on July 31, 1996. Mr. Turner informed Ms. Urrutia that the reports will be hand delivered to
CSD on August 2, 1996. Once the reports are received.and approved by CSD, Ms. Urrutia will
inform you of the scheduled payment amount and the date it will be forwarded to the State
Controllers Office.
CSD appreciates your prompt attention to this matter. If you or your staff have any
questions regarding this letter, please call Lupe Urrutia at(916) 327-6320.
Sincerely,-
Pablo Rosales, Manager
Farm Worker/Community Services Programs
cc: Al Prince, Administrative Services Officer
Darnel Turner, Program Coordinator
(Formerly,THE DEPARTMENT OF ECONOMIC OPPORTUNITY.)
... a r-2—It"b lel;.3bt-" -Kul 1 i u yi51b 51 i�.iti5 P.01
State of California
CUN}�SERVICES,AND DEVELOPMENT
Date-, July 22, 1996
1
'I:'o: Mx. Scott Tandy
t
From: Lupe Umitia
Subject' Status Report
Per our conversation on July k 1.996, I am enclosing the status report sttbmittod to CSI] '
managem eat. I received the foilowidg documents on Fiiday hely 19, 1996:
' y
L'SBG 1997 Community Action Plan
gSBG Second and TIArd]Expenditure Reports
CSBG 1995 Close-out Raliort j
LMEAP 1995 Close-out Report
DOE 1995 Close-out pport
The attached report slow the' ilingldelin ent reports and contract dodume4s. Thank you for
your efforts in submiting th'.requir contract documents to CSD. If you or your staff have any
question or required more inf`�rmation, please call me at(916)327-6320_
•r
,i
- - ('!(-CL'-J.7]O YJl'.]C?f'f-1 rRVf•1 1 U Jl✓1VJ1J 1 JUJ r.VL
� I
f 1
STAT[ S REPORT 1996 PROGRAM YEAR
CONTRA COSTA, 1TNTY COWTUNITY SERVICES DEPARTMENT �
(CCCSD) !
' � f
L�xecatr�3 Contracts• ' •
CSBG........................ $97,297.00 (fending Amendment#1)
LUIPAP.......................... 168;364.00 (Pending Aoo:et'adment#1) f
DOE.....-.......................... 22,188.00 t
- - E
Advanced Oayments issued
i
CSBG.............................. ;$97,297.00 `
LIBEAP.......................... '� -0-
DOE..... .........I.......... I -0-
CSBG..
L .................... I ! $501158,24 (weatherization)
i
-0- (Assurance 16) '
DOB.... .�. ................. ....... ' i -a- j
Outsun_iII elm uent R ' ossa
• � i
CSBG................................... First and Second Quarter(.PPR)
LIAP. p....................
April,May, Ducie,July '
DOE..... ............................... January through July(Contract executed July 11)
t
y
Other Ponding Contract Docaments: I '
CSBG--- --------------------------- Amendment#1
LMAr....................... . Amendment Al
Audit kms" 1993-1994--.----- TR96-002(CCCSD owe CSD$16,272.06(E. voice
911494)I ; Response due to CSD 5/9196.
i
Audit FY 1994- 1995-1.— _ Has been completed is being reviewed 4y State:
Controllers Office(SCO) per Wayman Yee,the audit ;
has not been fully accepted by SCO. Fs,'Pending a
submittal of the management letter fro! the CPA firm 1
ILP.M.G-Pete Marwick.
Pro=u4matic Performance; 1
CSBG... .......I......I............ 0% Reports not submitted to CSD
LIEB?AP. .............. .......... . `39% -of planned weatherization units
... .... ............... 8% -o€required Applications/clients . f
Error Ra�........... ......... . . 8.471%-MAP applications)
DOE......•........................... 0% Reports not submitted to CSD a
i
srnTcs�wHo � I
• t -
TOTAL P.02