Report 2019-121 All Recommendation Responses

Report 2019-121: California Department of Food and Agriculture: Poor Management Threatens the Success of the Pet Lover's Specialized License Plate Program (Release Date: March 2020)

Recommendation #1 To: Food and Agriculture, Department of

In order to ensure a fair and defensible grant award process for the Pet Lover's program, Food and Agriculture should immediately adopt and begin following policies and procedures that direct its staff to verify and document that grant applicants are eligible for funding from the Pet Lover's program before forwarding the applications to the technical review panel.

Annual Follow-Up Agency Response From October 2022

In the six-month, one-year, and 2021 annual agency responses submitted to the California State Auditor, the California Department of Food and Agriculture (CDFA) indicated that this recommendation had been fully implemented. Copies of the administrative review tracking sheet which notes the date of administrative review, a sample administrative review form with supporting documentation, and a sample review committee welcome email to demonstrate that technical review began after eligibility verification for each grant year since 2020 have been provided via email to the California State Auditor.

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

Food and Agriculture provided evidence that it adopted and began following policies and procedures that direct its staff to verify and document that grant applicants are eligible for funding from the Pet Lover's program before forwarding the applications to the technical review panel.

Annual Follow-Up Agency Response From October 2021

In the one-year agency response submitted to the California State Auditor on March 19, 2021, the California Department of Food and Agriculture (CDFA) indicated that this recommendation had been fully implemented. CDFA has adopted and implemented comprehensive procedures to verify and document that grant applicants are eligible to receive funding before forwarding to the applications to the technical review panel. Concurrent to the submission of this response, CDFA provided a copy of the Pet Lover's Procedures Manual to Katrina Solario via email. As of this writing, it appears that the California State Auditor has not assessed CDFA's six-month response nor published and assessed the one-year agency response. We look forward to timely acceptance of this response or any feedback from the California State Auditor so that we may formally resolve this recommendation.

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

Although Food and Agriculture developed procedures that direct its staff to verify and document that grant applicants are eligible for funding from the Pet Lover's program before forwarding the applications to the technical review panel, it did not provide evidence that it has begun following those procedures as we recommended. Until it does so, we will continue to assess this recommendation implementation status as pending.

1-Year Agency Response

The California Department of Food and Agriculture (CDFA) has developed and adopted a formal procedures manual for the Pet Lover's License Plate Grant Program (Pet Lover's). The procedures manual includes instruction to verify and document grant applicant eligibility before proposals advance to technical review. All applicants are verified to ensure current licensing with the Veterinary Medical Board and verification of eligibility is printed and attached to the administrative review. In the case of non-profit applicants, current registration with the Secretary State is also verified and attached to the administrative review. All applicants are also verified for current reporting with the California Department of Public Health based on the most recent year available. For 2020, this review occurred concurrent to technical review. For 2021, Pet Lover's administrative review and verification of eligibility occurred prior to technical review.

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

Although Food and Agriculture developed procedures that direct its staff to verify and document that grant applicants are eligible for funding from the Pet Lover's program before forwarding the applications to the technical review panel, it did not provide evidence that it has begun following those procedures as we recommended.

6-Month Agency Response

The California Department of Food and Agriculture (CDFA) is in the process of developing a formal procedures manual specific for the Pet Lover's License Plate Grant Program (Pet Lover's), which will be in place before the beginning of the 2021 Pet Lover's grant solicitation period. CDFA has already substantially augmented the Pet Lover's eligibility verification within the administrative review process beginning with the 2020 Pet Lover's grant solicitation. All applicants are verified to ensure current licensing with the Veterinary Medical Board and verification of eligibility is printed and attached to the administrative review. In the case of non-profit applicants, current registration with the Secretary State is also verified and attached to the administrative review. All applicants are also verified for current reporting with the California Department of Public Health. For 2020, this review occurred concurrent to technical review. CDFA anticipates that proposed changes to the 2021 Pet Lover's timeline will ensure that eligibility verification can be completed before technical review on a going forward basis.

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

60-Day Agency Response

The department indicated it will respond at the six-month mark.

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

Recommendation #2 To: Food and Agriculture, Department of

In order to ensure a fair and defensible grant award process for the Pet Lover's program, Food and Agriculture should immediately adopt and begin following policies and procedures that direct its staff to have multiple reviewers score each application that progresses to a technical review.

Annual Follow-Up Agency Response From October 2022

In the six-month, one-year, and 2021 annual agency responses submitted to the California State Auditor, CDFA indicated that this recommendation had been fully implemented. CDFA has previously offered to provide documentation in support of this response to the California State Auditor. Copies of the reviewer score sheet for each year of the grant since 2020 that evidence each proposal was reviewed and scored by more than one reviewer have been provided via email to the California State Auditor.

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

Food and Agriculture provided evidence that it adopted and began following policies and procedures that direct its staff to have multiple reviewers score each application that progresses to a technical review.

Annual Follow-Up Agency Response From October 2021

In the one-year agency response submitted to the California State Auditor on March 19, 2021, CDFA indicated that this recommendation had been fully implemented. CDFA has developed and adopted policies and procedures that ensure multiple reviewers score each application that progressed to a technical review. This process was implemented for both the 2020 and 2021 Pet Lover's programs. As with Recommendation 1, it appears that the California State Auditor has not assessed CDFA's six-month response nor published and assessed the one-year agency response. We look forward to timely acceptance of this response or any feedback from the California State Auditor so that we may formally resolve this recommendation.

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

Although Food and Agriculture developed procedures that direct its staff to have multiple reviewers score each application that progresses to a technical review, it did not provide evidence that it has begun following those procedures as we recommended. Until it does so, we will continue to assess this recommendation implementation status as pending.

1-Year Agency Response

The Pet Lover's procedures manual requires that all proposals are reviewed by more than one technical reviewer. For both 2020 and 2021 Pet Lover's each proposal was reviewed by multiple volunteer technical reviewers.

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

Although Food and Agriculture developed procedures that direct its staff to have multiple reviewers score each application that progresses to a technical review, it did not provide evidence that it has begun following those procedures as we recommended.

6-Month Agency Response

As above, CDFA is developing a formal procedure manual for Pet Lover's. However, for the 2020 Pet Lover's solicitation each proposal was reviewed by multiple volunteer technical reviewers. Understanding that compliance with this recommendation relies on volunteers committing time to participate, a process which involves multiple reviewers for each proposal is anticipated to continue in future years.

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

60-Day Agency Response

The department indicated it will respond at the six month mark.

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

Recommendation #3 To: Food and Agriculture, Department of

In order to ensure a fair and defensible grant award process for the Pet Lover's program, Food and Agriculture should immediately adopt and begin following policies and procedures that direct its staff to select the highest-ranked applications to receive grant awards, and document the reasons for these selections.

Annual Follow-Up Agency Response From October 2022

In the six-month, one-year, and 2021 annual agency responses submitted to the California State Auditor, CDFA indicated that this recommendation had been fully implemented. The reviewer score sheets provided to the California State Auditor in response to recommendation 2 demonstrate that the highest ranked proposals were recommended for funding. Copies of the published project abstracts that demonstrate the highest scored proposals were funded have also been provided via email to the California State Auditor.

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

Food and Agriculture provided evidence that it adopted and began following policies and procedures that direct its staff to select the highest-ranked applications to receive grant awards and to document the reasons for these selections.

Annual Follow-Up Agency Response From October 2021

In the one-year agency response submitted to the California State Auditor on March 19, 2021, CDFA indicated that this recommendation had been fully implemented. CDFA has developed and adopted policies and procedures that ensure the funding recommendation for the Secretary of CDFA's approval is based solely on highest average technical review score. For the 2020 and 2021 Pet Lover's programs both funding recommendations and grant awards were based solely on highest average score. As with Recommendations 1 and 2, it appears that the California State Auditor has not assessed CDFA's six-month response nor published and assessed the one-year agency response. We look forward to timely acceptance of this response or any feedback from the California State Auditor so that we may formally resolve this recommendation.

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

Although Food and Agriculture developed procedures that direct its staff to select the highest-ranked applications to receive grant awards, and document the reasons for these selections, it did not provide evidence that it has begun following those procedures as we recommended. Until it does so, we will continue to assess this recommendation implementation status as pending.

1-Year Agency Response

The Pet Lover's procedures manual directs CDFA staff to develop a funding recommendation for the Secretary of CDFA's approval based solely on highest average technical review score. In 2020 the highest scored proposals were selected for funding based on the average score of multiple reviewers. The 2021 Pet Lover's funding recommendation is based solely on highest average score.

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

Although Food and Agriculture developed procedures that direct its staff to select the highest-ranked applications to receive grant awards, and document the reasons for these selections, it did not provide evidence that it has begun following those procedures as we recommended.

6-Month Agency Response

As above, CDFA is developing a formal procedure manual for Pet Lover's. During the 2019 Pet Lover's program, one highly scored proposal was not funded, an error which CDFA rectified prior to the conclusion of the audit report. In 2020 the highest scored proposals were selected for funding based on the average score of multiple reviewers. Multiple layers of internal review were integrated into the process to prevent any potential oversights or errors. This process will continue in future years.

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

60-Day Agency Response

The department indicated it will respond at the six-month mark.

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

Recommendation #4 To: Food and Agriculture, Department of

To correct its error in making grants to ineligible entities, by June 2020 Food and Agriculture should complete efforts to either cancel those contracts and recoup unspent funds from the two ineligible organizations or work with those organizations to ensure that they meet eligibility requirements.

Annual Follow-Up Agency Response From October 2022

In the six-month, one-year, and 2021 annual agency responses submitted to the California State Auditor, CDFA indicated that this recommendation had been fully implemented. CDFA has provided a copy of accounting payment logs for each agreement that demonstrates the amount of funding awarded and the amount spent, via email to the California State Auditor.

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

Food and Agriculture provided evidence that it recouped unspent funds from the two ineligible organizations.

Annual Follow-Up Agency Response From October 2021

In the six-month and one-year agency responses submitted to the California State Auditor, CDFA indicated that this recommendation had been fully implemented. CDFA recovered $5,690 in unspent funds from those organizations and the recovered funds will be reallocated to the program in future years. As with Recommendations 1 through 3, it appears that the California State Auditor has not assessed CDFA's six-month response nor published and assessed the one-year agency response. We look forward to timely acceptance of this response or any feedback from the California State Auditor so that we may formally resolve this recommendation.

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

Food and Agriculture did not provide evidence that it recovered $5,690 in unspent funds from the two ineligible organizations and that the recovered funds were reallocated to the program.

1-Year Agency Response

Resolved in six-month report. CDFA recovered $5,690 in unspent funds from those organizations and the recovered funds will be reallocated to the program in future years.

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

Food and Agriculture did not provide evidence that it recovered $5,690 in unspent funds from the two ineligible organizations and that the recovered funds were reallocated to the program.

6-Month Agency Response

CDFA acknowledges that two organizations were awarded Pet Lover's grants in error. CDFA recovered $5,690 in unspent funds from those organizations and the recovered funds will be reallocated to the program in future years. CDFA also notes that all funds expended by those organizations supported allowable spay/neuter activities. Additionally, those spay/neuter activities were provided by contractors that did meet the eligibility requirements for the Pet Lover's program.

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

First, Food and Agriculture only addressed one part of the recommendation in the narrative of their response. Second, Food and Agriculture did not provide support for its assertion that it recouped the unspent funds. I have requested it and will let you know once I receive it.

This response does not state that they canceled the contract. However, I suppose we can overlook that if they actually provide evidence demonstrating that they canceled those contracts.

60-Day Agency Response

The department indicated it will respond at the six month mark.

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

Recommendation #5 To: Food and Agriculture, Department of

To ensure that the Pet Lover's program remains viable, Food and Agriculture should immediately begin using marketing and promotional strategies similar to those used by other specialized license plate programs to encourage vehicle owners to purchase the Pet Lover's plate, and should continue to ensure that the Pet Lover's plate remains on DMV flyers.

Annual Follow-Up Agency Response From October 2022

CDFA previously indicated that this recommendation had not been fully implemented as the DMV temporarily halted the purchase of specialized plates due to impacts of COVID-19. While the DMV has resumed accepting orders for personalized plates there have been substantial delays in delivery of new plates that have minimized the reasonableness of aggressive promotion of the plate. Nonetheless CDFA has promoted the plate through the DMV flyer, a blog post on the CDFA website, developing a QR Code for use by recipients at Pet Lover's funded spay/neuter events and developing an Instagram account to promote the plate. Copies of either the DMV insert or the STD -067 for the upcoming DMV insert, printouts of the blog post, QR code, and Instagram posts have been provided via email to the California State Auditor

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

Food and Agriculture provided evidence that it began using marketing and promotional strategies similar to those used by other specialized license plate programs to encourage vehicle owners to purchase the Pet Lover's plate and that it is continuing to ensure that the Pet Lover's plate remains on DMV flyers.

Annual Follow-Up Agency Response From October 2021

In the one-year agency response submitted to the California State Auditor on March 19, 2021, the California Department of Food and Agriculture (CDFA) indicated that this recommendation had not been fully implemented as the DMV temporarily halted the purchase of specialized plates due to impacts of COVID-19. As the DMV has resumed accepting orders for personalized plates CDFA will continue to promote the plate. Ongoing efforts to promote the plate include the following: DMV flyer; the 2021 Pet Lover's Request for Proposals encouraged participants to promote the purchase and renewal of the personalized plate; the 2020 Pet Lover's final report requests that grant recipients share images or links of project successes that CDFA can share through social media to promote the plate in the future; and all press releases related to the grant program (at least three annually) provide information for readers interested in purchasing the plate.

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

Food and Agriculture did not provide evidence that it has begun using marketing and promotional strategies similar to those used by other specialized license plate programs to encourage vehicle owners to purchase the Pet Lover's plate, or that it has continued to ensure that the Pet Lover's plate remains on DMV flyers.

1-Year Agency Response

Due to impacts of COVID-19, the DMV temporarily halted the purchase of specialized plates. During that period of time, the Pet Lover's plate remained on the DMV flyer. However, promotional efforts were otherwise halted as members of the public could not purchase new plates. The DMV recently resumed accepting orders for personalized plates and CDFA will continue to promote the plate. Ongoing and future efforts to promote the plate include the following: DMV flyer; the 2021 Pet Lover's Request for Proposals encouraged participants to promote the purchase and renewal of the personalized plate; the 2020 Pet Lover's final report requests that grant recipients share images or links of project successes that CDFA can share through social media to promote the plate in the future; and all press releases related to the grant program (at least three annually) provide information for readers interested in purchasing the plate.

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

6-Month Agency Response

The Pet Lover's plate will remain on the DMV flyer for the current fiscal year and CDFA anticipates this process will continue in future years. COVID-19 impacts have affected implementation of additional marketing and promotional activities; however, CDFA is developing additional strategies for marketing and promotion of the Pet Lover's license plate, both internally and as part of the 2021 Pet Lover's Solicitation. These strategies include but are not limited to highlighting Pet Lover's program success stories on the CDFA Spay/Neuter website; sharing success stories on CDFA's social media platforms; and including promotion of the Pet Lover's license plate as a requirement for 2021 Pet Lover's grant program recipients.

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

60-Day Agency Response

The department indicated it will respond at the six month mark.

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

Recommendation #6 To: Food and Agriculture, Department of

To improve the effectiveness of marketing of the Pet Lover's program, by August 2020 Food and Agriculture should contract with an eligible nonprofit organization, as state law allows, to carry out additional marketing and promotional activities for the program.

Annual Follow-Up Agency Response From September 2023

Based on guidance from the DMV, CDFA was made aware that the marketing administrative budget for the Pet Lover's License Plate is based on plate purchases and renewals, rather than budget authority. This budget is insufficient to participate in the DMV insert and partner with a non-profit for separate marketing of the plate. Should additional funding be made available in the future, CDFA will reconsider this recommendation.

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

Annual Follow-Up Agency Response From October 2022

Based on guidance from the DMV, CDFA has been made aware that the marketing administrative budget for the Pet Lover's License Plate is based on plate purchases and renewals, rather than budget authority. This budget is insufficient to participate in the DMV insert and partner with a non-profit for separate marketing of the plate. Should additional funding be made available in the future, CDFA will reconsider this recommendation.

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

Annual Follow-Up Agency Response From October 2021

In the six-month and one-year agency responses submitted to the California State Auditor, CDFA advised that this recommendation would not be implemented due to limitations on CDFA's budget authority and funding available for administrative costs that made it impossible for CDFA to administer the program, participate in the DMV flyer, and contract with an eligible nonprofit organization for additional marketing and promotional activities. As the result of a recently approved Budget Change Proposal CDFA's budget authority for Pet Lover's has increased sufficiently to include a contract with an eligible nonprofit organization for additional marketing and promotional activities. Efforts to develop a request for proposals are in early stages, but CDFA anticipates that this recommendation will be implemented within the current fiscal year.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

1-Year Agency Response

Unchanged from six-month report. CDFA's budget authority for the Pet Lover's grant program is $440,000 annually through the current state fiscal year, of which 25 percent ($110,000) can be used for administrative costs including marketing of the program. Costs to participate in the DMV flyer in the current and upcoming fiscal years will be approximately $50,000, or 45 percent of the total administrative budget. At this time, there is not administrative funding sufficient for CDFA to participate in the DMV flyer, administer in the program, and contract with an eligible nonprofit organization for additional marketing and promotional activities.

California State Auditor's Assessment of 1-Year Status: Will Not Implement

We stand by our recommendation that Food and Agriculture should contract with an eligible nonprofit organization, as state law allows, to carry out additional marketing and promotional activities for the Pet Lover's program.

6-Month Agency Response

CDFA's budget authority for the Pet Lover's grant program is $440,000 annually through the current state fiscal year, of which 25 percent ($110,000) can be used for administrative costs including marketing of the program. Costs to participate in the DMV flyer in the current fiscal year will be $50,000, or 45 percent of the total administrative budget. At this time, there is not administrative funding sufficient for CDFA to participate in the DMV flyer, administer the program, and contract with an eligible nonprofit organization for additional marketing and promotional activities.

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

60-Day Agency Response

The department indicated it will respond at the six month mark.

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

Recommendation for Legislative Action

To ensure the continued benefits of the specialized license plate programs, the Legislature should revise state law to allow a specialized license plate program to continue, regardless of the number of plates, unless the DMV or the agency determines that the program is no longer financially viable or no longer supports the purposes of the program.

Description of Legislative Action

As of March 26, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

As of March 26, 2021, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 1-Year Status: No Action Taken

Description of Legislative Action

As of September 26, 2020, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

Description of Legislative Action

As of May 25, 2020, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

All Recommendations in 2019-121

Agency responses received are posted verbatim.