DATE: May 26, 2020
TO: Board of Supervisors
SUBMITTED BY: David Pomaville, Director, Department of Public Health
SUBJECT: Budget Adjustments for Department of Public Health FY 2019-20
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Department of Public Health Org 5620 in the amount of $1,458,061 (4/5 vote).
2. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for Local Public Health Preparedness Special Revenue Fund 0080, Org 1159 in the amount of $1,137,714 (4/5 vote).
3. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Environmental Health Surcharges Special Revenue Fund 0080, Org 1157 in the amount of $30,000 (4/5 vote).
4. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for Hospital Preparedness Program Special Revenue Fund 0080, Org 1160 in the amount of $217,874 (4/5 vote).
5. Adopt Budget Resolution increasing the FY 2019-20 appropriations for the Emergency Medical Services Fund 0130, Org 5244 in the amount of $590,389 (4/5 vote).
6. Approve and Authorize the Clerk of the Board to execute Budget Transfer No. 16 ($529,236) transferring FY 2019-20 appropriations from Health Special Deposit Special Revenue Fund 0080 Org 1152 Account 7910 (Operating Transfer Out) to the Perinatal Equity Nursing Special Revenue Fund 0080, Org 1165 Account 7910 (Operating Transfer Out).
REPORT
Approval of the recommended actions will allow for the Department to budget for increased costs related to the Coronavirus 2019 (COVID19). These related costs will be offset with a supplemental allocation received from the California Department of Public Health, Emergency Preparedness Office (EPO) ($1,137,714), and expected Public Assistance funds from the Federal Emergency Management Administration (FEMA). Additionally, the recommended actions will address the spending authority issues in the Special Revenue funds related to year end process adjustments in FY 2018-19 and very minor increases in expected revenues. The Department with the Auditor Controllers guidance was able to adjust year end process to record both cost and corresponding revenues in the appropriate fiscal year. Implementing the year end change ultimately used current year spending authority to complete transactions between special revenue funds and the general fund. The increase need for spending authority in the special revenue funds will allow for the Department to move existing revenues into the General fund, with no increase in Net County Cost.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. If the actions are not approved, the Department will not be able to meet current year expected expenses relate to COVID19, nor will it be able to move existing revenue from the Special Revenue Funds to the General Fund.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Approval of the first and second recommended actions will increase the FY 2019-20 appropriations and estimated revenues in the Department of Public Health Org 5620 in the amount of $1,458,461 to primarily address increase spending related to COVID19 activities. Most of the offsetting Revenues will be received through an allocation from the CDPH-OEP ($1,137,714).
Approval of the third action will allow for recognition of unexpected additional receipts for Org 1157 - Environmental Health Surcharges ($30,000). The Approval of the fourth and fifth action will allow the Department to make adjustments to Org 1160 - Hospital Preparedness Program ($217,874), and Org 5244 - Emergency Medical Services ($590,389), to ensure there is sufficient budgetary authority to correctly report FY 2018-19 cost and revenues in the correct reporting period.
Approval of the sixth recommended action will transfer appropriations from Account 7910 ($529,236) Org 1152 to Account 7910 ($529,236) Org 1165 in the FY 2019-20 Adopted budget.
DISCUSSION:
On April 23, 2020, the Department received a supplemental allocation of $1,137,714 from the California Department of Public Health, Office of Emergency Preparedness for COVID19 related activities. The funding is intended for local health departments to carry out surveillance, epidemiology, laboratory capacity, infection control, mitigation, communications and other preparedness and response activities. Since March 2020 the Department has been using internal staff to manage these activities, requiring reassignment of staff internally. However, most of the funding will assist in increasing laboratory capacity as well as bridging specimen collection gaps that are slowly being corrected through the Department’s collaboration and training of community clinics and new State supports.
Additionally, with guidance and assistance from the Auditor Controller the Department has implemented some new year-end processes that will allow for the Department to correctly report cost and revenues in the appropriate period for FY 2018-19. This change has required that the Department go from recording on a cash basis to a modified accrual. The Department did not have sufficient budgetary authority to complete some transactions within the year-end extended period, as some special revenue funds were pending cash receipts. To complete appropriate transactions for reporting current year budget authority was used, which requires us now to correct current year budget. There were some small amounts under the Environmental Health Surcharges Fund 1157 that were received above budget, these funds are used to collect and to record surcharges mandated under the California Code of Regulations, Title 27, Environmental Protection, pursuant to Section 15250 under the Certified Unified Program Agency. Per code, surcharges collected are sent to the state on a quarterly basis. Additional appropriations are needed to meet state mandate. The requested budget transfer is needed as funds received under the Perinatal Equity Initiative, require funds be tracked separately
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 5620)
On file with Clerk - Resolution (Org 1157)
On file with Clerk - Resolution (Org 1159)
On file with Clerk - Resolution (Org 1160)
On file with Clerk - Resolution (Org 5244)
On file with Clerk - Budget Transfer
CAO ANALYST:
Raul Guerra