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HomeMy WebLinkAboutMINUTES - 05061997 - C115 C -116 F&HS-04 TO: BOARD OF SUPERVISORS Contra FROM: FAMILY AND HUMAN SERVICES COMMITTEE Costa County DATE: April 28, 1997 v �'••. •fir °asrq co�T' SUBJECT' REPORT ON CONTRACTS WITH THE UNITED COUNCIL OF SPANISH SPEAKING ORGANIZATIONS (UCSSO) AND THE PITTSBURG aoII 6GOGI L�4LC0- 0- R-INA TING C01-INCII (E?E?SC SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACCEPT the attached report on the status of the contracts between the County and the United Council of Spanish.Speaking Organizations (UCSSO) and between the County and the Pittsburg Preschool Coordinating Council (PPSCC). 2. REQUEST the Community Services Director to report to the Family and Human Services Committee on May 12, 1997, and provide a recommendation regarding whether the'Department should be authorized to remove PPSCC from the current pre-audit procedures to which it is subjected because of the conditional status it had been placed on by the State Department of Education. 3. AUTHORIZE the Chair of the Board of Supervisors to write to the Board of Directors of UCSSO, asking that they continue to stay in touch with the Family and Human Services Committee regarding their current and future plans and viability as an agency. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD O ITTEE APPROVE OTHER V ' SIGNATURE(S)- MARK DeSAULNIER DONNA GER R ACTION OF BOARD ON Mny R� 1997 APPROVED AS MMENDED 2L OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE _UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: _NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: ATTESTED May 6, 1997 PHIL BATCHELOR.CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M BY DEPUTY 382 (10/88) F&HS-04 4. REQUEST the Public Health Director to report to the Family and Human Services Committee as soon as the pending evaluation of the Senior Nutrition Program contracts is completed but no later than June 23, 1997, and provide the Committee with a recommendation regarding whether some or all of those contracts should be put out to bid through a Request for Proposals. 5. REQUEST the Community Services Director to report to the Family and Human Services Committee on June 23, 1997 regarding the status of the remaining outstanding unresolved items from the 1995 contract with the UCSSO and any additional information which is available by that date regarding the Inspector General's review of UCSSO. 6. REQUEST the Health Services Director, Social Service Director, Community Services Director and Executive Director, Private Industry Council to provide additional updated reports to the Family and Human Services Committee on June 23, 1997 regarding the status of all contracts with UCSSO and PPSCC. BACKGROUND: Our Committee has been closely monitoring the status of the County's contracts with UCSSO.and PPSCC. On April 28, 1997, our Committee met again with staff from the Health Services Department, Community Services Department and Private Industry Council, along with staff from PPSCC. No one was present from UCSSO. Our Committee reviewed the attached reports. We are concerned about the comments in the Social Service Director's report regarding the cash flow problems which may be faced by PPSCC. We are pleased that the State Department of Education has removed the conditional status from their contracts with PPSCC. The Community Services Director is prepared to recommend the removal of PPSCC from pre-audit requirements as soon as several outstanding issues are resolved. He is being asked to report back to our Committee on May 12 regarding this issue. Additional reports will be made by all four departments in June and we are specifically asking that the issue of cash flow be addressed at that time. The Community Services Director noted that UCSSO has asked for a meeting with him and the County Administrator to discuss the issues which are identified in Mr. Tandy's March 21, 1997 letter(attached). While it is entirely appropriate for UCSSO staff to meet with County staff to discuss the remaining audit issues, we also believe that it is important for UCSSO to meet with our Committee when we are discussing their contracts so they can respond publicly to comments which are made about their agency. We are, therefore, asking that the Chair be authorized to write to the UCSSO Board of Directors asking that they Continue to meet with our Committee. We remain concerned about the unresolved issues which are identified in Mr. Tandy's March 21,-.1997 letter and in Mr. Perales' March 14, 1997 letter regarding the issue of the time cards lacking sufficient documentation. We are also concerned about the comments of the Executive Director, Private Industry Council to the effect that UCSSO does not have adequate accounting procedures in place. We are, of course, also concerned about what findings may be made by the Inspector General's Office as a result of their very intensive investigation. As a result, we are asking that we be updated on this entire subject again in June. CC: County Administrator Health Services Director Public Health Director Social Service Director . Community Services Director Executive Director, Private Industry Council Executive Director, UCSSO Executive Director, PPSCC -2- l,i N 1 tai lit..S 1 A LSI U1q 1 V APR 2 41997 '. SOCIAL SERVICE DEPARTMENT a=„. , .;,_; CONTRA COSTA COUNTY Q+)UNTY ADMINISTRATOR TO: Claude Van Marter DATE: April 22, 1997 Assistant County Administrator FROM: John Cullen, Director SUBJ: FOLLOW-UP REPORT TO THE FAMILY AND HUMAN SERVICES COMMITTEE REGARDING SOCIAL SERVICE DEPT. CONTRACTS WITH PITTSBURG PRE-SCHOOL COORDINATING COUNCIL This report summarizes program and financial auditing of Pittsburg Pre-School Coordinating Council's (PPSCC) contracts subsequent'to Department reports sent to you dated June 5, 1996 and September 16, 1996. The Department currently has four contracts with PPSCC totaling $229,756. These contracts are as follows: 21-050-1 Family Preservation support services - referrals to recovery services; individual or group therapy and support; parenting & life skills training; therapeutic day care with developmental activities and/or academic tutoring, counseling and therapy; transportation as needed Contract term 7/1/96 - 6/30/97 Payment limit $27,228 - 66% of the contract limit paid through February 21-302 1 & R; parent education classes with child care--classes in English and Spanish; on-site family therapy Contract term 10/1/96 to 9/30/97 Payment limit $93,352 - 42% of the contract limit paid through February 20-443-18 Provision of state paid child care to current and CPS referred children Contract term 7/1/96 6/30/97 Payment limit $9,236 - 56 % of the contract expended through February 1 Gen 9c (New 3/86) Follow-up Report to the Family & Human Services Comm. Regarding April 22, 1997 Social Service Dept. Contracts with Pittsburg Pre-School Coord. Council 21-246-1 Prevention, intervention, treatment and education for infants and families where child abuse has occurred or there is a high risk Contract term 7/1/96 - 6/30/97 Payment limit $99,850 67 % of the contract expended through February We continue to monitor both the program performance and financial records of PPSCC. Services are being provided at a level consistent with contract requirements. While we have noticed significant improvements in the accounting practices of PPSCC, we have some concern about the marginal cash flow of the organization. We have not experienced any adverse program impact due to this, but feel that continu- ation at this cash flow level could jeopardize their ability to maintain their level of service. We will be closely monitoring this situation. JT/dc ppscc47.wp5 2 Community Services DepartmentContra Child Development 374-3994 tChild Nutrition 374-3850 Administration C O S l Communty Action 313-7363 1220 Morello Avenue,Suite 101 Head Start 646-5540 Martinez,California 94553-4711 County Housing and Energy 646 5756 (510)313-7350 Fax:(510)313-7385 S------ Scott Tandy, Director / r'9 COVK� DATE: April 24, 1997 TO: Family & Human Services Committee FROM: Scott Tandy, Director, Community Services Department SUBJECT: Status Report..Pittsburg Preschool Coordinating'Council This memorandum is to provide members of the Committee with a status report concerning the Pittsburg Preschool Coordinating Council (PPCC). Please find attached the most recent correspondence dated March 281 1997 from PPCC notifying the County that the State Department of Education had removed the conditional status from the agency's FY 1996-97 Child- Development contracts. In previous correspondence to the Committee, the Department recommended that upon receipt of this notification, the Department would consider lifting the pre-audit requirement from the current contract. The Department is in agreement with this recommendation after we have met with PPCC to discuss and resolve several outstanding issues that continue to cause the Department to question certain costs that appear in monthly expenditure reports. The costs are: Administrative cost allocation Cost allocation plan Food Service charges Upon the resolution of the-above issues, the Department would confirm this recommendation at the next Committee meeting. cc: Frances Greene 2 • (510)439.2061 FAX(510)432-7473 C oord i n a.t rn g Council, Inc. 1760 Chester Drive, Pittsburg,California 94565-3920 O O mc �! � RECEIVED „ s APR 15 1997 CL err ICE d1F 28 March 1997 Contra Costa County Mr. Phil Batchelor, Administrator 651 Pine Street Martinez , Ca 94553 Dear. Mr. Batchelor: We are happy to advise you that our child development contracts for .Fiscal Year 1996-97 are cleared of conditional status. Please see attached letter dated 3-24-97, from the California Department of Education. We look forward to continuing working with the County, especially during the welfare reform process. Itis crucial, that we as a community-based Agency, that serve low-income families, and your County organization work together to insure that the families in Contra Costa County become self-sufficient. Thank you for your cooperation and we look forward to our continued workingrelationship. If any other information is necessary, please do not hesitate to contact me. FOR OUR CHILDREN Frances Greene Executive Director FG/jm ; CALI FOR' OELAINE EASTINENT w� State Superintendent of Public,lnstruction • aEDUCATION March 24, 1997 t Frances Greene, Executive Director Pittsburg Preschool Coordinating Council 1760 Chester Drive - - - Pittsburg, California 94565 Dear Ms. Greene: The Case Conference Staff Review Committee (Committee)recently received information from our Office of External Audits regarding your agency's Fiscal Year 1995-96 audit. Your child development contracts for Fiscal Year 1996-97 were placed;on 12-month conditional status because your audit was submitted late during the previous fiscal year. We are pleased to reinstate your contracts to clear status as a result of your agency's compliance with the Fiscal Year 1996-97 Conditional Contract Addendum. The Committee wishes to express its appreciation for all your efforts in compiling with the additional contract provisions. This status change is effective immediately. Enclosed is a copy of this notice for you to forward to your Board Chairperson. If you have any questions,please contact your Child Development Division Consultant,Dan Cross at (916) 323-1341. Sincerely, Mario A. Muniz,Administrator Field Services Unit Child Development Division Enclosure cc: Dan Cross,Consultant Barbara Krabbenhoft, OAS Manager Stephen Shaltes, External Audits Donna Salaj, Contracts Office Judy Stucki,Education Finance Community Services DepartmentCOn}�� Child Development 374-3994 +l Child Nutrition 374-3850 Administration COS L� Communty Action 313-7363 1220 Morello Avenue,Suite 101 Head Start 646-5540 Martinez,California 94553-4711 County O' t n}` , Housing and Energy 646 5756 1.1 (510)313-7350 L�/ Fax:(510)313-7385 s Scott Tandy, f — Director of nkon _ sra'coiii+`� DATE: April 24, 1997 TO: Family & Human Services Committee FROM: Scott Tandy, Director, Community Services Department SUBJECT: Status Report..United Council of Spanish Speaking Organizations. This memorandum is to provide members of the Committee with a status report concerning the United Councilof Spanish Speaking Organizations. (UCSSO). Please find attached the most recent correspondence dated March 211 1997 between the agency and the Department regarding this matter. We have been advised by staff from the Office of the Inspector General ( OIG ) that their agency is still in the process of their investigation, which began in November of 1996. A preliminary report from the OIG may be issued as early as June. cc: Michael Ornelas Community Services Department Con}Ya Child Development 374-3994 Contra L 1 a Child Nutrition 374-3850 Costa Communty Action 313-7363 Administration C o S L Head Start 646-5540 1220 Morello Avenue,Suite 101 Housing and Energy 646-5756 Martinez,California 94553-4711 County 1 1 (510)313-7350 U 1 Fax:(510)313-7385 Scott Tandy, Director - March 21, 1997 sr,��- Mr. Michael Ornelas, Chairman, and Members, Board of Directors United Council of Spanish Speaking Organizations 120 Oak Street Brentwood, Ca 94513 Dear Mr. Ornelas and Members of the Board: The purpose of this letter is to provide you the status of your agency's 1995 demands for reimbursement of allowable Head Start program expenditures for the five month period of August 1, 1995, through December 31, 1995. County processing of a final claim for 1995 will be delayed pending the resolution of the following issues: Caesar Perales' Report On March 14, 1997, Caesar Perales, Certified Public Accountant compiled a report of the work he.performed for the County in assisting UCSSO in preparing your Head Start records and-demands for the period of August 1, 1995, through December 31, 1995. Mr. Perales' letter dated 3/14/97 discloses underdocumented Head Start time cards totaling $143,000 for the period of August 1, 1995,.through December 31, 1995, that may or may not meet the requirements of OMB Circular A-122, Cost Principles For Nonprofit Organizations, as well as other pertinent State and Federal Regulations (copy attached). The Department has requested a meeting with staff at the Administration for Children and Families to discuss this issue and any financial ramifications of this disclosure. FY 95-96 Audit: We have completed a preliminary review of the Head Start portion of UCSSO's single audit conducted by Bohren and Company, Certified Public Accountant, for the period of July 1, 1995, through June 30, 1996 and have the following concerns: * Head Start revenues, expenditures and in-kind appear to be missing for the month of July, 1995 totaling $48,000. * Approximately $30,000 of Child Care Food program expenditures were mislabeled as ".disallowed" Head Start program costs. * Approximately $38,618 of questioned and disallowed costs from the Head Start program for both the current (1995 Extended Services grant of $25,000) and prior period (unpaid disallowed costs from 1994 of$13,618) are not referenced in the audit. * Approximately$6,000 of Child Care Food Program revenue owed to UCSSO'by Stanislaus County for its FY 95-96 Migrant Head Start grant appears to have been mistakenly includedwith the County's program. Left undetected, this error would have resulted`in the loss of these funds to your agency. * Mr. Perales' disclosure about the underdocumented time cards is not noted in the Bohren & Company audit. * Bohren & Company appears to have placed undue reliance on the work of Mr. Perales,:which was a compilation, not a review, and not an audit. Given the number of outstanding issues concerning the Head Start contract alone, and taking into consideration that other County Departments must rely on the same audit document with respect to their contracts with UCSSO, it is my recommendation that UCSSO, along with its audit firm, work with the Health Services Department, Private Industry Council and the Community Services Department in an collaborative effort to review the current audit document in its entirety, develop a corrective action plan, and bring closure to this matter. This should not be difficult, in as much as staff from CSD and Bohren & Company have been working in a positive, collaborative manner to resolve some of the above listed outstanding issues. However, given that this audit is was due in the fall of 1996, every effort should be made to resolve this matter as soon as possible. 2 1994 and 1995 Unpaid Disallowed Costs: Our records indicate that UCSSO still owes the Department the sum of $13,617.85 for disallowed costs assessed the agency in 1994. This amount represents disallowed 1994 and 1995 Head Start costs that UCSSO agreed to pay back but did not. This amount will be subtracted from the final demand for payment. 1995 Extended Services Contract: We have reviewed the material you provided concerning $25,000 in questioned costs that were assessed in a 1996 correctiveaction notice in connection with UCSSO's 1995 Head Start Extended Services grant. Based on the material submitted, the corrective action notice as stated was valid, and the sum of $25,000 charged by UCSSO for this grant needs to be paid back to the County and ACF. This amount will be subtracted from the final demand for payment. Sincerely, .17 Sc Tandy Director cc: County Administrator Auditor-Controller Head Start Director Margaret Meyerkorth, CPA Caesar Perales, CPA Norm Siegel, Office of the Inspector General Maria L. Fort, Administration for Children & Families 3 CAESAR C. PERALES CERTIFIED PUBLIC ACCOUNTANT 3650 MT.DIABLO BOULEVARD.SUITE 220 TELEPHONE:(510)284-2620 LAFAYETTE,CALIFORNIA 94549 FACSIMILE:(510)283-9898 Scott Tandy, Director Community Services Department Contra Costa County 1220 Morello Ave. , Suite 101 Martinez, CA 94553-4711 I have compiled the accompanying special form statements of allowable expenses of the United Council of Spanish Speaking Organizations, Inc. (a non-profit organization) for each of the five-month periods beginning August 1, and ending December 3i; 1995, pursuant to the 1995 Head Start program year contract between the United Council of Spanish Speaking Organizations, Inc. (UCSSO) and Contra Costa County. The accompanying special form statements and this report are subject to procedures previously agreed to with your Department which provide for Community Services staff review of the accompanying information. I understand this review remains in progress. -A. compilation is .limited to presenting in the form of financial statements information that is the representation of management . I have not audited or reviewed the °accompanying special form statements and, accordingly, do not express an opinion or any other form of assurance on them. My engagement cannot be relied upon to disclose errors, irregularities, or illegal acts, including fraud or defalcations, that may exist. I was engaged by Contra Costa County. for the purpose of assisting UCSSO prepare the accompanying special form Head Start statements pursuant to UCSSO' s contractual agreement with Contra Costa County. The presentation of the accompanying statements is not intended to constitute a complete presentation of UCSSO' s assets, liabilities, revenues, and expenses. During the course of this engagement I brought to your and the Chief Administrative Officer' s attention the finding of certain time cards which did not indicate the total number of hours worked each day. The amount of compensation represented by these time cards approximates $143 , 000 during the time period covered by my engagement . These amounts are reported as allowable expenses in Scott Tandy, Director Community Services Department March 14, 1997 Page 2 the accompanying information as represented by UCSSO as compensation for services by employees during the period of the Head Start grant.. Consideration should be given to determining what,- if any, contingencies exist relative to this information and compliance aspects of compensation charged to awards under OMB Circular A-122, Cost Principles For . Nonprofit Organizations, Attachment B - Selected Items of Cost, section 6 . , 1 . , as •well as under California Department of Labor regulations. Caesar C. Perales March 14, 1997 SEL Contra Costa County Health Services Department Public Health Division �; — R Administrative Offices fH Z 597 Center Avenue,Suite 200 Martinez,California 94553 ,•` __ �� Phone: (510),313-6712 ( ) Off•• '� Fax: 510 313-6721 sr' q`COUPS E-Mail:wbrunner@hsd.co.contra-costa.ca.us TO: Family& Human Services Committee Supervisor Mark De Saulnier, District 4 Supervisor Donna Gerber, District 3 FROM: Wendel Brunner, M.D. Director of Public Healthr%� '.'Z� DATE: April 28, 1997 SUBJECT: REPORT ON CONTRACTS WITH UCSSO AND PITTSBURG PRESCHOOL,AND SENIOR NUTRITION PROJECT Enclosed is the status report on Pittsburg PreSchool Coordinating Council (PPSCC) contracts and United Council of Spanish Speaking Organizations(UCSSO)contracts,updated April 23, 1997. All these contracts are meeting the pre-audit requirements,or are paid on a fee-for-service basis. Public Health staff continue to monitor the performance of these contracts. The overall HIV service needs and quality of services are also monitored by the Contra Costa HIV/AIDS Consortium, which also is involved in the RFP and selection process for many of the HIV contracts. The collapse several weeks ago of the AIDS Alliance(formerly the Contra Costa AIDS Task Force) could have an impact on AIDS services in Contra Costa. The Health Services Department had contracts with the AIDS Alliance for case management and prevention services. As we only paid under these contracts for services actually provided, no county money will be lost. We are making arrangements to take the AIDS case management services back within the Health Services Department, using existing AIDS Alliance staff, so there should be no interruption of services to AIDS clients. The prevention contracts will be reissued as an RFP. Senior Nutrition Project The main Senior Nutrition contract is a$800,000+catering contract with a for-profit food vendor. That contract is competitively bid on a periodic basis through County Purchasing. 1997 is a competitive bid year for that contract, and the RFP process is currently underway. In addition to the food vendor,the Senior Nutrition Project has 15 contracts with private non-profit and public agencies for the delivery of Congregate and Home Delivered Meal Services throughout the county. Those agencies are: Family and Community Services, United Council of Spanish t . Family & Human Services Committee Supervisors De Saulnier/Gerber April 28, 1997 Page 2 Spectrum Community Services, Contra Costa Jewish Community Center, Pleasant Hill Park and Recreation District,and the cities of Antioch, El Cerrito, Martinez, Richmond, San Pablo, and San Ramon. These agencies comprise an extensively nurtured network of community agencies and volunteers that keep the per meal cost of this program very low. The Home Delivered "Meals on Wheels" contractors bring with them 350 volunteer drivers who actually deliver the meals. One agency, West Contra Costa Meals on Wheels, has over 100 volunteers who deliver meals to homebound seniors throughout West County. The public agencies and the cities were brought into the network during the program fiscal crisis of 1992/93. These agencies provide substantial program support through direct funding or donated staffing. We would be very concerned about initiating an RFP process that might imply to the agencies that their volunteers and contributions are either not needed or not appreciated. Since 1997 is a competitive bid year for our catering contract, it would be preferable to postpone any other competitive bidding processes until the Fall or Winter, with resulting contract changes made effective July 1, 1998. 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