Should the Commission authorize the Executive Director to enter into an inter-agency agreement with the State Controller's Office (SCO) during FY 2020-21 in an amount not to exceed $250,000 to audit law enforcement agency reimbursement claims?

In accordance with Commission Regulations 1010(a)(3) Inspection of Records, POST annually negotiates an inter-agency agreement with the State Controller's Office (SCO) to conduct up to fourteen (14) audits of selected local agencies that receive POST reimbursement funds.

The purpose of these audits is to verify state reimbursement funding is properly disseminated to law enforcement agencies.

POST has historically contracted with the SCO to randomly audit the training reimbursement claims made by local agencies against the State Penalty Fund. These audits ensure compliance with Penal Code 13523 and Commission Regulation regarding the proper utilization of POST monies.

During FY 2018-19, these audits found that $35,425 was not allowable and was paid back to POST by the audited agencies.

The estimated contract cost is reflected in Attachment A. The estimate is bifurcated to reflect costs for actual audits, in addition to costs associated with administrative costs. 

Actual costs include review of reimbursements, review of funds paid to presenters by agencies and report writing of audit findings. Administrative tasks include managing auditors, reviewing reports, overseeing contract and invoice billing and following up on corrective action plans based on audit findings if reimbursement is owed to POST. 

This project is supported by POST Strategic Plan Objective B.4: The efficiency of operations and business is increased.

Staff recommends the Commission authorize the Executive Director to enter into an inter-agency agreement with the State Controller's Office in an amount not to exceed $250,000 to audit agency reimbursement claims.