Report 2012-110 Recommendation 10 Responses

Report 2012-110: Special Interest License Plate Funds: The State Has Foregone Certain Revenues Related to Special Interest License Plates and Some Expenditures Were Unallowable or Unsupported (Release Date: April 2013)

Recommendation #10 To: Emergency Management Agency

To make certain that money from the special plate funds pay only for allowable and supportable activities, Cal EMA should ensure that it only allows grantees to claim expenses for activities directly related to fighting terrorism and not for ancillary services.

1-Year Agency Response

On October 10, 2013, the California Governor's Office of Emergency Services (Cal OES) sent an electronic mail (email) message to the state's five (5) fusion centers that received antiterrorism funding. The correspondence listed eligible activities per Vehicle Code Section 5066(e) governing antiterrorism funding. Should the Cal OES receive additional antiterrorism funding in the future for the state's fusion centers, the Cal OES shall include language regarding eligible activities and the legal requirement that those funds may only be used for activities that directly relate to fighting terrorism.

California State Auditor's Assessment of 1-Year Status: Resolved


6-Month Agency Response

The California Governor's Office of Emergency Services (Cal OES) shall ensure all subgrantee expenses are eligible under Vehicle Code Section 5066 (e) by reviewing and approving application materials and documents submitted by the fusion centers that meet the aforementioned criteria and only allow subgrantees to claim expenses for activities directly related to fighting terrorism and not for ancillary services.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

As we stated on page 31 of our report, $98,000 of the $115,000 in payments to fusion centers that we reviewed were not for activities directly related to fighting terrorism. Although Cal OES provided evidence of its communication to the fusion centers to remind them of those activities for which antiterrorism funds may be used under law, this communication was silent on the legal requirement that those funds may be used only for activities that directly relate to fighting terrorism.


60-Day Agency Response

Cal EMA shall ensure all subgrantee expenses are eligible under Vehicle Code Section 5066 (e) by reviewing and approving application materials and documents submitted by the fusion centers that meet the aforementioned criteria and only allow subgrantees to claim expenses for activities directly related to fighting terrorism and not for ancillary services.

California State Auditor's Assessment of 60-Day Status: Pending

Cal EMA was not able to provide evidence of any communication or notice it shared with its grantees describing allowable expenses as defined in law, or evidence that it reviewed and approved documents from the fusion centers that met that criteria.


All Recommendations in 2012-110

Agency responses received after June 2013 are posted verbatim.