Report 2012-117 Recommendation 8 Responses

Report 2012-117: State Athletic Commission: Its Ongoing Administrative Struggles Call Its Future Into Question (Release Date: March 2013)

Recommendation #8 To: Athletic Commission, State

To ensure that it accurately collects revenue, the commission should formalize policies and procedures directing inspectors to take the necessary steps to make sure they correctly and consistently calculate taxes, assessments, and fees in accordance with state law and regulations.

Annual Follow-Up Agency Response From September 2015

The Commission has formalized and implemented procedures to ensure the Commission is correctly and consistently calculating taxes, assessments and fees in accordance with the state law and regulations.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From September 2014

As we said in April, we expect this to be completed by January of 2015.

We may need a little more time due to unexpected leave of absences.

Please see our response from April 2014

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

This is a policy that the Commission is discussing at the June 9th inspector training in southern California. We are covering box office, but more importantly, we are working to get everyone to perform the box office functions the same way. The Commission has created an MS Excel file that calculates box office automatically; some inspectors continue to use a calculator. While the Commission is more focused on the amount being correct and not the micromanagement of individual inspectors, we agree that a standardized process would be beneficial.

Update: During the latest training for inspectors, a large portion of the classes were spent on box office. We are still formulating a policy, but educating the inspectors for proper calculation is paramount to the success of any policy. We used several models to educate the inspectors and worked in groups to solve the calculation exercises. Based upon our internal best practices, the training was taught to the inspectors on the proper way to calculate the box office. The policy to make this calculation is being created using this method established in the training. This method is obviously directly linked to the fees set by the Commission that are established by the Title 4 regulations and the Business and Professions code. Final policy will be developed once SB309 is signed into law by the Governor.

Update: SB309 became effective January 1, 2014 and the Athletic Commission began assessing the new fees associated with the new legislation. New forms have been developed and box office reports are being audited. We anticipate creating the final process within the next few months.

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

6-Month Agency Response

CSAC Response: This is a policy that the Commission is discussing at the June 9th inspector training in southern California. We are covering box office, but more importantly, we are working to get everyone to perform the box office functions the same way. The Commission has created an MS Excel file that calculates box office automatically; some inspectors continue to use a calculator. While the Commission is more focused on the amount being correct and not the micromanagement of individual inspectors, we agree that a standardized process would be beneficial. The Executive Officer and the Chief Athletic Inspector plan to meet with the lead inspectors to standardize this practice. Once that is established, a formal procedure can be written. We agree that this should be performed, and the Commission has taken steps to address this, but we are still in the development phase of implementing this recommendation.

Update: During the latest trainings for inspectors, a large portion of the classes were spent on box office. We are still formulating a policy, but educating the inspectors for proper calculation is paramount to the success of any policy. We used several models to educate the inspectors and worked in groups to solve the calculation exercises. Based upon our internal best practices, the training was taught to the inspectors on the proper way to calculate the box office. The policy to make this calculation is being created using this method established in the training. This method is obviously directly linked to the fees set by the Commission that are established by the Title 4 regulations and the Business and Professions code. Final policy will be developed once SB309 is signed into law by the Governor. Please see attachment 5.

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

Although the commission has made great strides in implementing appropriate measures to make sure that inspectors are correctly and consistently calculating taxes, assessments, and fees in accordance with state law and regulations, it is still formulating a policy.

60-Day Agency Response

The commission stated that it is in the process of developing these policies and procedures.

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

All Recommendations in 2012-117

Agency responses received after June 2013 are posted verbatim.