Report 2013-130 Recommendation 9 Responses
Report 2013-130: California Public Utilities Commission: It Fails to Adequately Ensure Consumers' Transportation Safety and Does Not Appropriately Collect and Spend Fees From Passenger Carriers (Release Date: June 2014)
Recommendation #9 To: Public Utilities Commission
To ensure that passenger carriers submit accurate fee payments, the commission should require its fiscal staff to implement a process to verify passenger carrier fee payments and associated revenue.
Annual Follow-Up Agency Response From November 2020
The audit function resumed in January 2020 and we have new audit staff dedicated in performing this function now. In addition, the new Transportation Carrier Portal, which will be implemented in May will allow Accounting to secure these required documents online.
- Completion Date: June 2020
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
The commission developed an audit process for its fiscal staff to follow to verify passenger carrier fee payments and associated revenue. It also provided evidence demonstrating that it has implemented this process by completing some of these audits.
Annual Follow-Up Agency Response From October 2019
Pending. CPUC has had to redirect the audit staff to help with FI$Cal transition. March 1, 2019, Fiscal Office will redirect staff back to audits and proceed. First audit expected to be completed 9/30/19. Did not happen in FY 18-19 as the audit person hired helped in Year-end Fi$cal close. GL unit only has 2 reconcilers with 28 funds to reconcile. Once FY-18-19 is close the audit person can start doing it in the new FY.
- Estimated Completion Date: 6/30/2020
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2018
The Fiscal Office has hired an audit staff to complete this function. No audits have been completed yet; staff was brought on board 5/31/2018. Expected to have completed transportation audits by 12/31/2018. Previous incumbents in this position have not stayed long and is a difficult position to fill.
- Estimated Completion Date: 12/31/2018
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From November 2017
The Fiscal Office has secured an Auditor I position through a BCP to conduct preliminary risk-based audits of the revenues. However, due to issues staffing the position, only the basic audit plan has been developed and no audits have been completed. The Fiscal Office is looking for options with other CPUC divisions to try to find a place for the position and workload that have more promotional opportunity that would keep incumbents in the position for a longer time.
- Estimated Completion Date: 6/30/2018
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2016
An auditor position within the Fiscal Office was approved as part of the FY15-16 budget process to perform audits of self-reported revenue various regulated entities, including transportation carriers. pursuant to the audit protocol and process previously developed. The FY 15-16 budget took effect July 1, 2015 and after completion of the application and selection process, a new auditor was brought onboard October 1, 2016. The new auditor is currently being trained and is expected to begin auditing responsibilities in December 2016.
- Estimated Completion Date: 12/31/2016
California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented
Annual Follow-Up Agency Response From October 2016
This is an ongoing process, implementation is underway; CPUC will consider this corrective action fully completed when the first audited claims are turned over to the Collections Unit, TEB or attorneys. MM Update: After hiring difficulties, employee hired 10/1/16 (BCP for position approved 7/1/15). Currently training staff, anticipate to have first audit completed by 12/31/16.
- Estimated Completion Date: 12/31/2016
California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented
Annual Follow-Up Agency Response From October 2015
See one-year response.
- Estimated Completion Date: 11-15-2015
California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented
1-Year Agency Response
CPUC developed an audit protocol as a means to verify self-reported revenue of passenger carriers submitting user fee payments to the Transportation Account (Fund 0461). Fiscal Office staff in the Cashiering Unit is responsible for conducting audits and reviewing utility financial records against self-assessed user fees calculations, and revenues received. CPUC is documenting this process in its entirety; If revenues are found to be insufficient, the case will turned over to the Collections Unit, the Transportation Enforcement Branch (TEB) or CPUC attorneys for consequential action.
- Estimated Completion Date: November 2015
- Response Date: June 2015
California State Auditor's Assessment of 1-Year Status: Partially Implemented
Although the California Utilities Commission has developed an audit protocol and process to verify passenger carrier fee payments and associated revenue, it has not yet fully implemented this process.
6-Month Agency Response
CPUC has developed an audit protocol as a means to verify self-reported revenue of passenger carriers submitting user fee payments to the Transportation Account (Fund 0461). Fiscal Office staff in the Cashiering Unit will be responsible for conducting audits and reviewing utility financial records against self-assessed user fees calculations, and revenues received. CPUC is documenting this process in its entirety; If revenues are found to be insufficient, the case will turned over to the Collections Unit, the Transportation Enforcement Branch (TEB) or CPUC attorneys for consequential action.
This is an ongoing process, implementation is underway; CPUC will consider this corrective action fully completed when the first audited claims are turned over to the Collections Unit, TEB or attorneys.
- Estimated Completion Date: July 1, 2015
- Response Date: December 2014
California State Auditor's Assessment of 6-Month Status: Partially Implemented
The commission developed an audit process and checklist for its fiscal staff to follow to verify passenger carrier fee payments and associated revenue. However, as indicated in its response, the commission has not yet conducted these audits.
60-Day Agency Response
CPUC has developed an audit protocol as a means to verify self-reported revenue of passenger carriers submitting user fee payments to the Transportation Account (Fund 0461). Fiscal Office staff in the Cashiering Unit will be responsible for conducting audits and reviewing utility financial records against self-assessed user fees calculations, and revenues received. CPUC is documenting this process in its entirety; If revenues are found to be insufficient, the case will turned over to the Collections Unit, the Transportation Enforcement Branch (TEB) or CPUC attorneys for consequential action.
- Estimated Completion Date: November 2014
- Response Date: August 2014
California State Auditor's Assessment of 60-Day Status: Partially Implemented
All Recommendations in 2013-130
Agency responses received are posted verbatim.