Report 2016-128 Recommendation 3 Responses

Report 2016-128: In‑Home Supportive Services: The State Could Do More to Help Providers Avoid Future Payment Delays (Release Date: March 2017)

Recommendation #3 To: Social Services, Department of

To ensure that counties follow a consistent and expeditious policy for responding to providers who report lost or stolen paychecks, Social Services should issue a policy by September 2017 that allows providers to request replacement paychecks after five business days from the issue date of the lost or stolen paychecks.

Annual Follow-Up Agency Response From November 2018

CDSS released All County Letter 18-36 on April 6, 2018, providing direction to the county that they must wait 5 business days from the issue date to initiate any warrant replacement and that an STD 435 must be submitted to the SCO before a warrant can be replaced.

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

1-Year Agency Response

The ACL, which provides direction on reporting lost or stolen paychecks and how to request a replacement paycheck, is currently routing for final approval through the Department and should be released

March 31, 2018. Additionally, CDSS collaborated with the State Controller's Office (SCO) to identify the required timeframe for when counties can perform the action to replace a lost or stolen paycheck. The 10-calendar day timeframe, as previously reported, has been changed to five business days, which allows time for mailing and gives the State Treasurer's Office and SCO enough time to return cashed warrant information, and CMIPS to be updated.

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

6-Month Agency Response

CDSS sent the draft All County Letter (ACL) for stakeholder review in August 2017. CDSS will release the final ACL by October 2017. The policy will allow providers to request a replacement paycheck after 10 calendar days from the issue date of the lost or stolen paycheck.

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

Social Services states that its draft policy will allow providers to request a replacement paycheck after 10 calendar days from the issue date of the lost or stolen paycheck. This amount of time is shorter than the period of 10 business days specified in its original response to the audit. However, as stated in our report, we believe a more reasonable amount of time is five business days, which allows the average two to three business days for first-class mail delivery, plus two extra days for any unforeseen circumstances.

60-Day Agency Response

CDSS has met with the State Controller's Office to discuss its requirements for void and replacement of lost or stolen warrants. CDSS is writing and will release for stakeholder comment a draft All County Letter (ACL) by July 2017. CDSS will release the final ACL by September 2017.

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

All Recommendations in 2016-128

Agency responses received are posted verbatim.