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HomeMy WebLinkAboutMINUTES - 09092014 - C.155RECOMMENDATION(S): AUTHORIZE relief of cash shortage in Fund 831100 - Social Service Trust Fund for the Employment and Human Services Department, in the amount of $155,642.01, as recommended by the Auditor-Controller. FISCAL IMPACT: Cash shortage in the amount of $155,642.01 will be funded with 100% General Fund. BACKGROUND: In accordance with provisions of Administrative Bulletin 207.7, the Auditor-Controller has verified and concurs with the report of a cash shortage in the amount of $155,642.01 in fund 831100 - Social Service Trust Fund. The shortage accumulated over several years due to accounting and record keeping deficiencies in the Department's Trust Fund 831100 (automated) subsidiary ledger system. Specifically, there were discrepancies between the Finance System's General Ledger and the Department's subsidiary ledger involving the following areas: • Computation and inclusion APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/09/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Mary N. Piepho, District III Supervisor Contact: Laura Strobel, (925) 335-1091 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 9, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.155 To:Board of Supervisors From:David Twa, County Administrator Date:September 9, 2014 Contra Costa County Subject:Request for Relief of Cash Shortage BACKGROUND: (CONT'D) of all interest • Beginning fund balance calculations • Ongoing fund balance differences • Varying-interest-amounts (based on differing fund balances) • Duplicate Case IDs • Missing data in subsidiary ledger After the above situation came to light, the Employment and Human Services Department created a new automated trust fund (subsidiary) management system that now properly accounts for and accurately tracks and monitors the fund. The shortage amount reflects conserved funds (including interest) for foster youth whose cases have been previously closed (with the conserved funds having already been returned to Social Security Administration). To not grant the relief of shortage would penalize current children whose balances (including interest) could not be paid back to SSA when the current children vacate. There was no fraud or gross negligence on the part of any County employee or County Department. CONSEQUENCE OF NEGATIVE ACTION: The shortage will not be relieved, cash will not be in balance. CHILDREN'S IMPACT STATEMENT: Not applicable.