Report 2013-501 All Recommendation Responses

Report 2013-501: Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun: It Continues to Lack Sufficient Controls Over Certain Travel Reimbursements (Release Date: March 2014)

Recommendation #1 To: Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun, Board of

To ensure that its expenditures are appropriate, the board should do the following:
Develop and implement a policy that requires the Bar Pilots to submit documentation demonstrating that they booked the most economical refundable airfare and made travel arrangements in the best interest of the State before the board reimburses travel costs. To the extent that the Bar Pilots cannot demonstrate that they booked the most economical refundable fare, the board should reimburse the Bar Pilots only the equivalent of the most
economical fare.

60-Day Agency Response

The Board revised its interpretation of most economical refundable fare airline ticket fare requirements contained in its contract with the San Francisco Bar Pilots (SFBP) to mean an airline ticket purchased at the economy fare basis that is refundable subject to a small cancellation fee, and sent a letter to the SFBP

confirming this interpretation on February 24, 2014. (See enclosed.) Prior to this contract language interpretation, the San Francisco Bar Pilots purchased and requested reimbursement for airfare that was purchased at the most economical fully refundable airfare, and therefore was in compliance with the contract as then interpreted by the Board. To ensure contemporaneous compliance with this new contract language interpretation, the Board had proactively instructed the San Francisco Bar Pilots to re-ticket any traveler that was scheduled to attend training in May or June of 2014 for whom a ticket was purchased as of January 31, 2014 (and not previously modified by the traveler prior to that date), to a refundable fare with a small cancellation fee. The SFBP successfully completed the re-ticketing process. All subsequent airline tickets purchased under the contract with the SFBP will be consistent with this new fare basis interpretation.

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

Recommendation #2 To: Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun, Board of

To ensure that its expenditures are appropriate, the board should do the following:
Develop and implement a process for reviewing travel reimbursement invoices, such as requiring the Bar Pilots to submit original receipts and disallowing individual costs for extended travel that exceed the costs for required travel.

60-Day Agency Response

The Executive Director had instituted written invoice processing procedures to ensure that duplicate payment of travel costs does not occur, and to disallow travel costs that exceed the cost for the required travel. The new procedures require original invoices, when available, and ensure a thorough review of travel itineraries and invoice costs. (See enclosed.)

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

Recommendation #3 To: Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun, Board of

To ensure that it consistently adheres to requirements in state law when licensing pilots, the board should do the following:
Revise its checklist for processing license renewals to include all requirements specified in state law, including evidence that pilots piloted vessels in the past year, and retain copies of pilots continuing education training evaluations.

60-Day Agency Response

The Board had amended its pilot license renewal checklist to include confirmation that the pilot has actively piloted a ship in the past year, and to include documentation the pilot has completed the periodic mandatory training within the past five years. (See enclosed.)

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

Recommendation #4 To: Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun, Board of

To ensure that it consistently adheres to requirements in state law when licensing pilots, the board should do the following:

Develop and use a checklist for issuing original licenses that includes all requirements specified in state law.

60-Day Agency Response

The Board had developed an original pilot license issuance checklist that includes confirmation of the satisfaction of all initial license requirements as required by state law. (See enclosed.)

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

All Recommendations in 2013-501

Agency responses received are posted verbatim.