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Home My WebLink AboutMINUTES - 05201997 - C83 C.83 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY CALIFORNIA Adopted this Order on May 20, 1997 by the following vote: AYES: Supervisors Rogers, Uilkema, Canciamilla, DeSaulnier NOES: None ABSENT: Supervisor Gerber ABSTAIN: None ----------------------------------------------------------------- ----------------------------------------------------------------- SUBJECT: Grand Jury Report IT IS BY THE BOARD ORDERED that the 1996-97 Contra Costa Grand Jury Report No. 9705, " Independent Auditor's Opinions and Financial Systems Modernization, " is REFERRED to the County Administrator and the 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 Board of Supervisors on the date shown. ATTESTED: May 20, 1997 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By ,Deputy cc: County Administrator Internal Operations Committee .3a—C17 C $3 A REPORT BY THE 1996-97 CONTRA COSTA COUNTY GRAND JURY 1020 Ward Street Martinez California 94553 RECEIVED (510) 646-2345 MAY 1 31997 Report No. 9705 CLERK BOARD OF SUPERVISORS P CONTRA COSTA CO. INDEPENDENT AUDITOR'S OPINIONS AND FINANCIAL SYSTEMS MODERNIZATION APPROVED BY THE GRAND JURY: Date: � •�� / 97 ��%�'�� IRO JURY FOREMAN ACCEPTED FOR FILING: Date: S 5 J HNF 1/AN DE POEL J DGE OF THE SUPERIOR COURT `933. Comments and Rcpor-ts on Crimd .Jrrry Reconrntendat ions. (a) No Inter 11;ut the end of each fiscal or r;l1cm :ir \ear of it county. ciwh Lr+ncl jury irnlx+ncled aurin,, (Imt h�,c;lf or calendar year stall suhntil to tic presidin, jud_e of the superior court it 1111;+1 report of its 1111diligS anti reef ln- mendations 01,11 perimil to county ,osernntrnt ln;mcl. other than fiscal matins elurin1 the IISCaI or calend;n %r;Ir. ` Final reports on ;uty a t ro)ri;uc subject ct nt.+ he urhfit ittect to Ilse presteling judge of the superior court ;u anv I ilic w c.. during the lernt of service of a grand jury. \ fin;Il rc(atn ' may he submitted for Comment to re.sponsihlc ofliccrs. rip agencies, or departments. Includin, the county hoard of supervisors, when ;+pplicable, upon findrn'o! of tile• presid- �'• In,, judge that the report Is In compliance with Illi Iltic. One copy of each report found to be in compliance %ki(It this title shall be placed on file with the county clerk incl remain on file in the office of the county clerk. (b) No later than file end of each fiscal or calendar Near. each ;rand jury impaneled during that fiscal or calendar year shall submit Io the presiding judge of the superior court a final report of its lindings and recommendmions that pertain to fiscal nw(ters of county government during the fiscal or calendar Year of the county. (c) No later than 90 days after the grand jury submits a final report on the operations of any public a,ency subject to its reviewing authority, the governing body of' the public agency shall continent to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the gosernim, body, and every elective countN officer or iwencv lead for which the _rand jury has responsibility pul:suwnt to Section 914.1 shall comment within 60 clays to the r presiding judge of the superior court, with an inforrttalion COPY sent to the hoard of supervisors, on Ilse lindings ;Ind recommendations pemimin to matters under the control of that county ofticcr or ;wet?Cy head and anti ;+,encu 01 agencies which tial of licer or agency head super isc s or controls. In ;uty city incl county, the milvor shall .1ko continent on the lirtdinl-s ;Ind wconunend;Itions. i\II �uc1 comments and reports s1;111 forthwith he suN11111rd 10 11e presiding Jud,-,c of tic superior court who impanc Icd tic• "rlllid jury. A Copy of ;Ill w�pon.\x..s to gr;Ind lmWI)O111 shall be placed un f11c c%111 the clerk of tie, puhlic .1_cnc% ;uul the office of the c'mmy clerk, or the ni;mIt cchcn applic;Ihlc, ;Ind sJIJII rrul:un on file in those Officr.. O1w copy shall he placed on file will 11e ;Ipplic'ahlc ,LI;Iml lul\ final report hv, ,Ind in 11e ( Omlol of tic cunrntk inlp;ul Bled Lrind jury, cvlcic 11 s1,111 hr nulinl;lincd I u nlininlunl r)I Irc vc;w, lxg.11. P)01 ch. 12X-). Iclh t ,h 074, 1974 cls. ;c)(. 111)(,. 1')-17 cls. I1)7. 1)17, 1 11 5•!�, I')K I (1_ ?II i. 1')x' t 1 1•111X §S, 11)X5 c 1. '-'1 1. clicciive lIIIy I'. I'I\�. I')�1 c 1_ w)(I AI. I1)X i w ' Independent Auditor's Opinions and Financial Systems Modernization Background The government of Contra Costa County has grown steadily over the years, becoming a major economic entity, employing nearly 7000 people and administering revenues and expenditures of nearly $900 million annually. Effective management of such a large and complex enterprise requires financial systems that accurately and promptly record, report and control all financial transactions. Findings. 1. The County utilizes three major financial systems: general accounting, payroll and property tax. 2. The Board of Supervisors selected the firm of KPMG Peat Marwick LLP to perform the annual audit of financial statements for the fiscal year 1995-96. 3. In addition to auditing the general-purpose financial statements of the County, the independent auditors made separate audits of State and Federal grants, Child Development Programs and the Contra Costa County Redevelopment Agency. 4. In all cases, the auditors gave an unqualified opinion that the audited statements fairly presented the financial positions set forth in the audited documents. 5. The County's current general accounting system does not provide the details and formats required for reporting financial information to granting agencies and that various County Departments have built and are maintaining separate accounting systems. 6. The current general accounting system does not have a reporting module to prepare the Comprehensive Annual Financial Report, requiring financial data to be downloaded into a personal computer-based reporting package, a process that utilizes a significant amount of time of the County's staff. 7. The County established a task force to plan and direct modernization of the County's financial systems. 8. This task force decided that the first system to be modernized would be the payroll system, the one most vulnerable to collapse. This would be followed, in turn, by the general accounting system and then the property tax system. 9. The payroll system modernization is scheduled for completion in the summer of 1997, at total cost of approximately $3.1 million. 10. Modernization of the general accounting system is estimated to cost approximately the same as modernization of the payroll system. 11. The task force is contemplating delaying modernizing the general accounting system until 2000 or later because of the amount of staff time involved, the unpredictability of technology suppliers and the funding required. Conclusions 1. Delaying modernization of the general accounting system will not improve the staff time requirement, the unpredictability of suppliers or the funding requirement. 2. Completing the modernization of the general accounting system before 2000 would solve the "2000 problem" (the inability of most current computer systems to accommodate the four-digit date required by the move into a new century) and save the cost of resolving that problem, about $300,000, in the absence of modernization. 3. Completing the modernization of the general accounting system would provide County managers with enhanced financial data at the earliest practicable date, thus increasing both efficiency and control. Recommendation The 1996-97 Contra Costa County Grand Jury recommends that: A. the County proceed with modernization of the general accounting system forthwith.