Report 2010-117 Recommendations and Responses in 2012-041
Report 2010-117: General Obligation Bonds: The Departments of Water Resources and Finance Should Do More to Improve Their Oversight of Bond Expenditures
| Department | Number of Years Reported As Not Fully Implemented | Total Recommendations to Department | Not Implemented After One Year | Not Implemented as of Most Recent Response |
|---|---|---|---|---|
| Department of Finance | 1 | 3 | 3 | 2 |
| Department of Water Resources | 1 | 2 | 1 | 1 |
Recommendation To: Water Resources, Department of
To provide the public with accurate and complete information on the bond-funded projects it administers, Water Resources should develop and consistently use a formalized, documented review process that will provide greater assurance that project information posted to the Bond Accountability Web site is regularly updated and contains accurate information.
Response
In general, DWR is has met Recommendation 1.2, in that we are providing the required program and project level information to the Bond Accountability website. However, BSA is requesting that DWR provide a level of detail which is in excess of those established by the Department of Finance (DOF). Therefore, we will not be providing the suggested, excess detail. Additionally, DWR is reviewing the posted information against the Bond Sale Master Project list to ensure that the project information is consistent across the various tracking systems.
It should also be noted that DWR is in full compliance with the DOF guidelines and that DWR continues to work directly with the Natural Resources Agency (CNRA) to ensure that the 3-part bond accountability is approved to be posted on the web site. DWR has also developed an internal website review report to ensure the integrity of the information posted to the website and is developing more complete written procedures for the review and posting of information to the Bond Accountability website. It should also be noted that these actions are “interim” actions because DWR continues to work with CNRA to ensure the successful migration of DWR bond accountability information to the new Agency Bond Consolidated Reporting System (ABCRS).
- California State Auditor's Assessment of Status: Will Not Implement
- Response Date: December 2012
Recommendation To: Finance, Department of
To enhance the value of the Bond Accountability Web site, Finance should require administering agencies to provide information about the actual amounts of bond funds spent on posted projects at least semiannually.
Response
As noted in our July 2011 response, Finance currently requires agencies to post amounts awarded to each project and subsequently to post the actual amount incurred, if different, when the project is complete. We believe this information meets the requirements outlined in Executive Order S-02-07. We do not believe that reporting actual amounts expended, during the life of thousands of grants and projects, provides any more benefit compared to the added cost to complete the work.
- California State Auditor's Assessment of Status: Will Not Implement
- Response Date: November 2012
Recommendation To: Finance, Department of
To enhance the value of the Bond Accountability Web site, Finance should develop a tracking and review process to periodically assess the completeness of the project information posted to the Web site. Such a process should include a review of whether state agencies are describing, in terms the public can easily understand, the expected or realized benefits of bond-funded projects.
Response
Finance will continue to review state agencies' reporting compliance during department audits and during special project reporting compliance reviews. As noted in our audit reports, our methodology includes a project reporting compliance review during each bond audit.
- California State Auditor's Assessment of Status: Will Not Implement
- Response Date: November 2012
Recommendation To: Finance, Department of
To ensure that expenditures were consistent with bond laws and that the project achieved the intended benefits or outcomes agreed to when the project was originally awarded, Finance should conduct audits of, or approve and assure that, Water Resources and other agencies obtain audits of, Strategic Growth Plan bond expenditures.
Response
As of July 2011, Finance has issued four additional Strategic Growth Plan (SGP) department bond audit reports and Finance is currently auditing Water Resources. Additionally, in fiscal year 2011-12 we completed audits of 69 grant awards totaling over $95 million in bond proceeds. As previously noted, all state agencies administering SGP bonds have either entered into an interagency agreement with Finance to conduct audits or have made arrangements with other entities, with the approval of Finance, to conduct the required audits. Accordingly, we will continue to conduct audits as required by Executive Order S-02-07. All bond audit reports are posted the Bond Accountability website at www.bondaccountability.ca.gov.
- California State Auditor's Assessment of Status: Fully Implemented
- Completion Date: November 2012
- Response Date: November 2012