Report 2016-036 Recommendation 4 Responses

Report 2016-036: Indian Gaming Special Distribution Fund: The Method Used to Mitigate Casino Impacts Has Changed, and Two Counties' Benefit Committees Did Not Ensure Compliance With State Law When Awarding Grants (Release Date: March 2017)

Recommendation #4 To: San Diego, County of

If the Legislature appropriates funding from the distribution fund for mitigation grants in the future, to comply with state law, the benefit committee for San Diego County should ensure that it obtains sufficient documentation from grant applicants to demonstrate that the requested funding represents the correct proportionate share of the costs attributable to casino impacts.

Annual Follow-Up Agency Response From October 2021

The "benefit committee" refers to San Diego County's Indian Gaming Local Community Benefit Committees (IGLCBC), which was created by Government Code section 12715(b)(1). This code section was repealed by Government Code section 12718 on January 1, 2021. Consequently, neither San Diego County nor any other County has an IGLCBC for the Legislature to appropriate funding to. All projects funded through the County's IGLCBC have been completed in compliance with state law. The County has contacted the California Gambling Control Commission and will be returning all remaining funds to the State. The County respectfully requests the State Auditor to declare that this recommendation has been fully implemented.

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

We have assessed the status of this recommendation as resolved because the Legislature did not appropriate funding for mitigation grants after we reported this finding and the relevant section of law was repealed in January 2021.


Annual Follow-Up Agency Response From October 2018

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. Therefore, the San Diego IGLCBC has fully implemented the State Auditor's recommendation for ensuring that sufficient documentation from grant applicants demonstrate that the requested funding represents the correct proportionate share of the costs attributable to casino impacts.

California State Auditor's Assessment of Annual Follow-Up Status: Not Currently Feasible

This finding relates to the documentation of San Diego's analysis of the grant applications for mitigation grants. Because the Legislature has not appropriated any funding for mitigation grants since fiscal year 2013-14, it is not currently feasible for San Diego to implement this recommendation.


1-Year Agency Response

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. This finding relates to the documentation of that analysis in the grant application. If funding is awarded, the IGLCBC staff will implement additional review for compliance with this finding.

California State Auditor's Assessment of 1-Year Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


6-Month Agency Response

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. This finding relates to the documentation of that analysis in the grant application. If funding is awarded, the IGLCBC staff will implement additional review for compliance with this finding.

California State Auditor's Assessment of 6-Month Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


60-Day Agency Response

The San Diego IGLCBC has implemented several process improvements since the 2014 audit and has required increased levels of information for applicants to demonstrate proportional share for compliance with state law. IGLCBC staff explained this progress and no findings were made on the process, which includes an evaluation by County Counsel, staff, and the IGLCBC members. This finding relates to the documentation of that analysis in the grant application. If funding is awarded, the IGLCBC staff will implement additional review for compliance with this finding.

California State Auditor's Assessment of 60-Day Status: Not Currently Feasible

The Legislature has not appropriated any funding for mitigation grants since we issued our report in March 2017.


All Recommendations in 2016-036

Agency responses received are posted verbatim.