Report 2015-125 Recommendation 3 Responses

Report 2015-125: San Joaquin Valley Air Pollution Control District: To Cover Its Costs, It Recently Increased Permit Fees and Continues to Use Supplemental Revenue but Can Improve Consistency and Transparency for Certain Program Requirements (Release Date: April 2016)

Recommendation #3 To: San Joaquin Valley Air Pollution Control District

To ensure that the district is adequately protected from the costs of litigation, it should develop a protocol to maintain all required legal documents accurately and to make sure that those documents remain in effect. By July 2016, the district should adopt such a protocol for management of its centralized system for requesting, tracking, storing, and following up on indemnification agreements and letters of credit.

60-Day Agency Response

District's internal methodology document, FYI-141, contains details of a centralized electronic tracking mechanism for indemnity agreements and letters of credit, including specific identification of staff responsibilities associated with that tracking process. This tracking mechanism has been implemented.

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

The district provided a copy of its revised internal methodology that requires staff to enter information regarding indemnification agreements and letters of credit into a database and provide a report from the database.

All Recommendations in 2015-125

Agency responses received are posted verbatim.