HomeMy WebLinkAboutMINUTES - 06271995 - D3 R,
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TO: BOARD OF SUPERVISORS
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Phil Batchelor, County Administrator 't
County
DATE: June 27, 1995
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SUBJECT: County Contract with Pittsburg Pre-School Coordinating Council
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1 . ACKNOWLEDGE that the County has had in place an ad hoc group
of three department heads and the County Auditor-Controller
who have been reviewing County concerns with the agency for
the last five months .
2 . ACKNOWLEDGE Pittsburg Pre-School 's agreement to a pre-audit of
all payment demands; provision of bi-monthly reports
resolving the weaknesses identified in the agency's internal
audit report; and new controls which the agency has installed
to strengthen its fiscal and administrative capacities .
3 . APPROVE County Administrator's report to release funds of
previously approved contracts subject to continued review and
monitoring by the ad hoc group.
4 . APPROVE the following contracts, amendments and reallocation:
Contract Purpose Funding/Source
PATHS 1993-94 Homeless Services $18,818 (Federal)
PATHS. 1994-95 Homeless Services 26,907 (Federal)
HIV/AIDS Counseling 77,622 (Federal)
HIV Housing Advocacy 96,000 (Federal)
HIV Housing Case Management 29,400 (Federal)
HIV/AIDS Education/Prevention 6,500 (State)
and AUTHORIZE Community Services Director, Health Services
Director and Community Development Director to execute these
contracts and/or amendments subject to the continued review
and monitoring of the ad hoc group.
CONTINUED ON ATTACHMENT': YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE _OTHER
SIGNATURE S :
ACTION OF BOARD ON June 27 , 1995 APPROVED AS RECOMMENDED X_ OTHER
The recommendations as set forth above are APPROVED with the understanding
that accountability and regular audits shall continue to be required; REFERRED
to the Family and Human Services Committee review of these contracts as part
of the ongoing auditing process .
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT- ) AND CORRECT COPY OF AN ACTION TAKEN
AYES:1{ 7 , 4 . 5 NOES: 3 AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED June 27, 1995
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
CC: SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
r
BACKGROUND:
Beginning on January 18 when the County Administrator received an
independent audit of Pittsburg Pre-School Coordinating Council
(PPS) by Wilson, McCall & Daoro, the County has been involved in an
ongoing review of the reportable conditions identified, and the
material weaknesses in the agency' s system of internal controls, on
account of the contractual relationships the County has with this
agency.
An ad hoc review group of Mark Finucane, Director of Health
Services, Bob Hofmann, Acting Director of Social Service, Joan
Sparks, Director of Community Services, and Ken Corcoran, Auditor-
Controller, have been reviewing the areas of concern identified in
the audit and reviewing their departments ' contractual relationship
with Pittsburg Pre-School . The County Administrator and department
representatives have had two meetings with members of the agency' s
Board and staff . On February 2 the County Administrator sent the
Pittsburg Pre-School Board of Directors a letter requesting their
plan to deal with the deficiencies identified and simultaneously
withheld the implementation of several contracts pending a response
from the agency.
On March 23 the agency responded through. its attorney John Coker
that the agency disagreed with portions of its own independent
audit but had taken steps to eliminate the "going concern" issue.
According to Mr. Coker additional financial expertise had been
brought into the agency to deal with the State Department of
Education concerns regarding its contract and to respond to the
County' s concerns .
In addition, the agency appealed to the State Department of
Education to reevaluate the audit findings and to request a
corrective action plan.
On April 14 the County Administrator requested further information
regarding the State appeal and a listing of the members of the
Board of Directors . On April 21 Mr. Coker informed the County of
the State' s decision to put Pittsburg Pre-School on a 12-month
provisional status rather than the originally announced de-funding
beginning July 1, 1995.
On May 3 members of the ad hoc group and the County Administrator
met with Pittsburg Pre-School representatives at which time the
agency agreed to comply with the County' s requests for the
following:
a. Monthly financial reports and agency-wide financial statement
to the County Auditor-Controller and contracting departments;
b. Agency demands against County contracts will be subject to
pre-audit through County departments prior to payment of
demands by the County Auditor-Controller;
C. Bi.-monthly reports issued on the progress in resolving the
serious and material weaknesses identified;
d. Strengthening of the administration and Board regarding fiscal
and administrative capabilities; and
e. Revision of personnel and fiscal procedures including monthly
monitoring of financial activities by the Board of Directors
comparing budget to actual financial statements .
On May 23 and as a result of the Board of Directors ' agreement to
the County' s five requests for compliance, the County Administrator
informed Joyce Tensley, President, and members of the Board of
Directors that recommendations would be made to the Board of
Supervisors to complete the contracts that had been previously held
up.
a
These contracts will provide for important public services and, not
withstanding the internal problems of the agency, we have not been
informed by our departments (Health Services, Community Services
and Social Service) that the Pittsburg Pre-School has failed to
provide program services for which it contracts . In addition,
given the Board of Directors expressed willingness to address its
fiscal problems, we are recommending the approval of these
contracts and amendments .
Contact: Scott Tandy 464-4087
cc: County Administrator
County Counsel
Community Services Director
Health Services Director
Social Service Director
Auditor-Controller
Pittsburg Pre-School Coordinating Council, Inc.
r DATE:
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