Report 2015-102 Recommendation 23 Responses

Report 2015-102: Central Basin Municipal Water District: Its Board of Directors Has Failed to Provide the Leadership Necessary for It to Effectively Fulfill Its Responsibilities (Release Date: December 2015)

Recommendation #23 To: Central Basin Municipal Water District

To ensure it is efficiently using its resources, the district should eliminate its board members' automobile or transportation allowances and instead reimburse them based on their business mileage or transit use.

Annual Follow-Up Agency Response From October 2020

The board has taken action to right-size the organization. This action has resulted in a reduction in annual expenses of $1.2M - $1.5M (projected). The allowance is standard for the industry and not considered excessive.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement


Annual Follow-Up Agency Response From October 2019

At this time, the District would like to keep the response of "partially implemented" once again, as we will be addressing all benefits, including for Directors, as part of our next budget.

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


Annual Follow-Up Agency Response From October 2018

At this time, the District would like to keep the response of "partially implemented" once again, as we will be addressing all benefits, including for Directors, as part of our next budget.

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

As we noted in our assessment of previous responses to this recommendation, the district chose to take a different approach to that of our recommendation by reducing the auto allowance and instituting a mileage reimbursement for travel outside Los Angeles County. We specifically recommended elimination of the allowance rather than reduction; however, according to the district, it expects to address director benefits as part of its next budget. At this time, we consider this recommendation to be partially implemented.


Annual Follow-Up Agency Response From November 2017

This recommendation is partially implemented. Central Basin expects to address all benefits, including for Directors, as part of its next budget.

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

As we noted in our assessment of the district's 6-month response to this recommendation, the district chose to take a different approach to that of our recommendation by reducing the auto allowance and instituting a mileage reimbursement for travel outside Los Angeles County. We specifically recommended elimination of the allowance rather than reduction; however, according to the district, it expects to address director benefits as part of its next budget. At this time, we consider this recommendation to be partially implemented.


1-Year Agency Response

Central Basin's response has not changed from its 6-month response.

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

As we noted in our assessment of the district's 6-month response to this recommendation, the district chose to take a different approach to that of our recommendation by reducing the auto allowance and instituting a mileage reimbursement for travel outside Los Angeles County. We specifically recommended elimination of the allowance rather than reduction; however, according to the district's general manager, the issue could return for reconsideration in 2017. At this time, we consider this recommendation to be partially implemented.


6-Month Agency Response

At the January 25, 2016 Board meeting, the Board reduced their automobile allowance from $597 to $397 and authorized mileage reimbursement at the current IRS mileage rate for any automobile travel outside of Los Angeles County. Additionally, staff was directed to bring back revisions to the Administration Code under the section for automobile allowance.

In an effort to memorialize the actions taken by the Board in January, the Board approved revisions to the Administrative Code under Part 3, Chapter 9, Article 1, Section 1.18 Authorized Expenses, Subsection (E) Transportation policy at its February 26, 2016 Board meeting.

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

The district has chosen to take a different approach than that of our recommendation. According to information the district provided, it surveyed 11 area water districts and 19 area cities. It found that 11 of 30 entities provided an auto allowance with a median value of $335. At a board meeting in January 2016, district staff recommended three options: elimination of the auto allowance, reducing the allowance to $335, or decreasing it to another amount as determined by the board. In February 2016, the board voted to reduce the auto allowance from $597.68 to $397 and institute a mileage reimbursement, at the IRS approved rate, for travel outside Los Angeles County. We specifically recommended elimination of the allowance rather than reduction; however, according to the general manager, the issue could return for reconsideration in 2017. At this time, we consider this recommendation to be partially implemented.


60-Day Agency Response

At the January 25, 2016 Board meeting, the Board reduced their automobile allowance from $597 to $397 and authorized mileage reimbursement for any travel outside of Los Angeles County. Additionally, staff was directed to bring back revisions to the Administration Code under the section for automobile allowance.

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


All Recommendations in 2015-102

Agency responses received are posted verbatim.