HomeMy WebLinkAboutMINUTES - 04271993 - 1.74 s
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on April 27, 1993 by the following vote:
AYES: Supervisors Powers, Smith, Bishop, McPeak, Torlakson
NOES: None
ABSENT: None
ABSTAIN: None
SUBJECT: Grand Jury Report on Need for Management Audits
The Board received Grand Jury Report No. 9304 dated � .
April 7, 1993 from the 1992-1993 Contra Costa County Grand
Jury entitled "The Need for Management Audits in Contra
Costa County" .
IT IS BY THE BOARD ORDERED that the aforementioned
report is ACKNOWLEDGED and REFERRED to the County
Administrator and the Internal Operations Comittee.
cc: County Administrator
Grand Jury Foreman
Internal Operations Committee
I hereby certify that this is a true and correct copy of
an action taken and entered on the minutes of the
Boar!of Supery * rs on the da a ah wn.
ATTESTED:
PHIL BATHELOR,Cierk of the 6oarcl
of Supervisors and County Administrator
7z i JI'd 11,11L
by Deputy
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A REPORT BY
THE 1992-93 CONTRA COSTA COUNTY GRAND JURY
1020 Ward Street
Martinez, CA 94553
(510) 646-2345
Report No. 9304
THE NEED FOR MANAGEMENT AUDITS
IN CONTRA COSTA COUNTY
"Elected officials who are by law accountable for all
expenditures of taxpayer funds have an obligation to insure
that those funds are used in the most cost-effective manner."
Approved by the Grand Jury:
Date:- 011,
Z4nnemariiieGoldstein
Grand Jury Foreman
Accepted for Filing:
Date: 9j a0 /4 93
Richard S. Flier
Judge of the Superior Court
THE NEED FOR MANAGEMENT AUDITS IN CONTRA COSTA COUNTY
SUMMARY:
In these days of diminishing revenues and resistance by the public to increased
taxes, Contra Costa County could benefit from an aggressive Management Audit
Program.
Such a program, properly directed, would allow the County to decrease costs
and/or maintain or increase services to the public without additional expenditures.
DEFINITION:
Management Audits.
These audits are designed to investigate whether an operating unit is meeting its
objectives in the most efficient, economical manner.
Management audits have flexible methods of approach; however all contain
certain basic elements. They investigate and report on all duplication of effort,
overstaffing or other inefficient practices. Audits include critical reviews of
existing programs, the management systems used and any other factors that
inhibit maximum performance.
The basic objective of all Management Audit Programs is to improve performance
and/or reduce costs.
FINDINGS:
1. The State of California Government Code section 25250 states:
"...The Board of Supervisors shall examine and audit, or cause to be
audited, the financial accounts and records of all officers having
responsibility for the care, management, collection, or disbursement of
money belonging to the County or money received or disbursed by them
under authority of law."
2. The Board of Supervisors meets the requirements of Government Code
25250 by engaging outside auditors to conduct an annual financial audit of
Countv activities.
3. The major objective of financial audits is to determine whether financial
statements fairly present the audited entities' financial condition according
to generally accepted accounting principles. This type of audit is commonly
referred to as "bean counting." Contra Costa County's Comprehensive
Annual Financial Report (CAFR) is an example of this type of audit.
4. An increasing number of cities and counties throughout the state are
conducting a type of Management Audit Program on an ongoing basis.
One example is the city of San Jose. From 1985 to 1989 their program has
shown savings in excess of 13 million dollars; which was more than three
dollars saved for each dollar of program expense.
5. Recent economic trends have reduced revenues available to public agencies.
6. There is a demonstrated resistance by the public for increased taxes.
7. Management audits have been successfully implemented in a public setting.
8. Management Audit Programs have been accomplished through the use of
private, qualified companies or by the establishment of in-house
departments.
CONCLUSIONS:
1. Changes resulting from an aggressive Management Audit Program can
meet overall operating objectives at less cost.
2. Contra Costa County meets the requirement of law regarding financial
audits; however recent economic events coupled with public resistance to
increased taxes indicate the need to evaluate cost effectiveness of all County
operating units.
RECOMMENDATIONS:
The Contra Costa County Grand Jury recommends that the Board of Supervisors:
1. Within six months, establish a Management Audit Program that insures
that monies expended will result in a net saving to the County.
2. The recommendations of the Management Audit Program should be made
to the highest possible level of responsibility.
r•.ti't
COMMENT:
Increasing fees or the establishment of benefit assessment districts should
not be seen as a substitute for increased efficiency. Elected officials who are
by law accountable for all expenditures of.taxpayer funds have an
obligation to insure that those funds are used in the most cost-effective
manner.
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