DATE: April 28, 2020
TO: Board of Supervisors
SUBMITTED BY: Lisa A. Smittcamp, District Attorney
SUBJECT: Adopt Budget Resolution increasing available appropriations for the California Department of Insurance Grant Programs.
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing FY 2019-20 appropriations and estimated revenues in the amount of $58,212 in the District Attorney’s Special Revenue Fund 0060, DOI Disability and Healthcare Insurance Fraud Program, Org 1102 (4/5 vote);
2. Adopt Budget Resolution increasing FY 2019-20 appropriations and estimated revenues in the amount of $58,212 in the District Attorney-Grants Org 2862 (4/5 vote);
3. Adopt Budget Resolution increasing FY 2019-20 appropriations and estimated revenues in the amount of $331,505 in the District Attorney’s Special Revenue Fund 0060, DOI Auto Insurance Fraud Program, Org 1104 (4/5 vote);
4. Adopt Budget Resolution increasing FY 2019-20 appropriations and estimated revenues in the amount of $331,505 in the District Attorney-Grants Org 2862 (4/5 vote);
5. Adopt Budget Resolution increasing FY 2019-20 appropriations and estimated revenues in the amount of $439,712 in the District Attorney’s Special Revenue Fund 0060, DOI Workers Comp Fraud Program, Org 1107 (4/5 vote); and
6. Adopt Budget Resolution increasing FY 2019-20 appropriations and estimated revenues in the amount of $439,712 in the District Attorney-Grants Org 2862 (4/5 vote).
REPORT
There is no increase in Net County Cost associated with these actions, which are necessary to facilitate the transfer of the California Department of Insurance (DOI) grant funds from the Special Revenue Fund to the General Fund. This item is countywide.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved, the department will not be able to transfer restricted funds for FY 2019-20 qualified expenditures.
FISCAL IMPACT:
There is no increase in Net County Cost associated with these actions. The DOI awarded to Fresno County $183,653 for the Disability and Healthcare Fraud program, $405,405 for the Auto Insurance Fraud program, and $1,275,026 for the Workers Comp Insurance Fraud program. These appropriations are included in in the FY 2019-20 Adopted Budget for the District Attorney - Grants Org 2862.
There was an unanticipated delay in receiving revenue distributions from DOI and FY 2018-19 funds were not received until FY 2019-20. As a result, the department had to utilize available FY 2019-20 appropriations for the transfer of FY 2018-19 qualified expenditures. These transfers represent the costs for the last quarter of FY 2018-19 based on final audited expenditures. The recommended actions will restore appropriations in order to transfer qualified FY 2019-20 expenditures. Increases in both Orgs for each program are necessary to facilitate the transfer of funds from the Special Revenue Funds to the General Fund. There is a possibility of a delay in receiving FY 2019-20 revenues. However, we will continue to communicate with the County Administrative Office (CAO) to ensure that sufficient appropriations will be included in the Departments future budget requests.
DISCUSSION:
Per Management Directive 780 Fund Balance Policy, all departments are required to transfer restricted funds at least quarterly to the fund in which the qualified expenditures have been incurred. Additionally, in a memo dated March 23, 2020 from the County Administrative Officer and the Auditor-Controller/Treasurer-Tax Collector, County departments have been directed to transfer restricted funds immediately upon incurring qualified expenditures. Approval of the recommended actions will align appropriations and revenues with the funding amount received from the DOI this fiscal year and allow the District Attorney to fulfill the County policy of immediate transfer of qualified expenditures.
REFERENCE MATERIAL:
BAI #24, October 22, 2019
BAI #25, October 22, 2019
BAI #26, October 22, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Resolutions (Orgs 1102,1104,1107 and 2862)
CAO ANALYST:
Samantha Buck