Mendocino County
Auditor-Controller Lloyd Weer and CEO Carmel Angelo issued responses to this
year’s grand jury report on the free library system which alleges the county
has misused ‘A-87 funds.’
A glossary in the grand jury
report states that A-87 “refers to the Federal Office of Management and Budget
Circular No. A-87, which establishes cost principles for the allocation of
central administrative and overhead expenses to county departments related to
federally funded grants or programs.”
Weer stated in his response
that the county is charging A-87 costs to the library correctly, which was
$181,000 in 2014-15, according to the county’s adopted budget.
The grand jury report points
out that the county is charging the library for A-87 use costs that are
believed to be not allowed. The county was allegedly calculating its percentage
owed from the library by including costs for things actually paid for with
federal grants and donations from the public or by Friends of the Library
groups, and is prohibited by state law, according to the grand jury.
“The amount of A-87 costs
charged to the library is correct and the library is not being deprived of its
funds,” Weer stated. “The county’s entire A-87 cost plan is certified annually
by the state controller’s office. The state also performs an audit on the plan
once every two years.”
Weer also defended the county’s
accounting methods saying they follow federal and state law, and are audited
each year by an outside independent certified accounting firm.
The grand jury also alleged
“erroneous” equipment charges being assessed under A-87. Weer disagreed in his
response, stating there can be compensation for the use of equipment under the
A-87 cost plan by way of a “use allowance.”
“Use allowance is the method of
allocating the cost of fixed assets to specific time periods in which the
county benefits from the use of the assets,” according to Weer.
“A standard percentage of the total cost of
each fixed asset may be claimed each year that the asset is in use. The library
must certify their fixed asset listing annually with the county, and this list
is used to determine the library’s equipment use allowance. The library’s A-87
equipment use allowance is correct and has been approved by the state
controller’s office.”
None of the grand jury’s
recommendations pertaining to the auditor-controller’s office will be
implemented.
Many of Angelo’s responses to
the questionability of A-87 cited Weer’s responses since the “Executive Office
does not determine A-87 costs and accepts the information provided by the
auditor-controller as prescribed in state statute as accurate.”
The auditor-controller is also
responsible for the calculation and administration of A-87, and the CEO has no
responsibility over the auditor-controller since it is an elected position,
according to the response.
Angelo stated the library
budget is developed annually by the county librarian and then submitted to the
Executive Office for review before being sent off to the Board of Supervisors
for approval.
Angelo agreed to one
recommendation by the grand jury, which calls for semi-annual workshops with
the Library Advisory Board, with the agenda being set by both parties.
“It has become clear during the
past year that some members of the Library Advisory Board feel ignored and
superfluous, therefore, the CEO supports this recommendation,” Angelo stated.
The full report and responses
can be viewed at http://www.co.mendocino.ca.us/grandjury/gj14-15.htm.
August 1, 2015
Ukiah
Daily Journal
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