Title
District Attorney recommending the Board consider the following:
1) Adopt and authorize the Chair to sign Resolution 163-2019 authorizing the District Attorney to execute a Grant Award Agreement with the California Department of Insurance for the Automobile Insurance Fraud Program for Fiscal Year 2019-2020 in the amount of $220,333 including any extensions or amendments thereto which would not increase net county costs; and
2) Adopt and authorize the Chair to sign Resolution 164-2019 authorizing the District Attorney to execute a Grant Award Agreement with the California Department of Insurance for the Workers' Compensation Insurance Fraud Program for Fiscal Year 2019-2020 in the amount of $408,465 including any extensions or amendments thereof which would not increase net county cost.
FUNDING: California Department of Insurance.
Body
DISCUSSION / BACKGROUND
The District Attorney's Office has received the Automobile Insurance Fraud and Workers' Compensation Insurance Fraud grants since Fiscal Year 2004-05. El Dorado County has been commended by the California Department of Insurance for program operation and compliance. It is through the dedicated commitments of prosecutors and investigators that fraud prevention, investigation, and prosecution has been so successful over the last few years.
Automobile Insurance Fraud Grant
The District Attorney's Office actively investigates and prosecutes both auto theft and insurance fraud and continually seeks to expand their fraud unit to initiate and prosecute additional cases. In addition, the District Attorney's Office seeks new ways to educate the community and law enforcement agencies on automobile insurance fraud and resources available to assist victims. The District Attorney's Office also allows citizens of El Dorado County access to the office for protection of their rights, as well as a forum to report situations of potentially illegal conduct. As a result, the automobile insurance fraud program has become a significant component of the District Attorney's consumer protection effort.
The 2019-20 Auto Fraud award amount is less than what the department originally projected. The shortfall is $50,395. Reducing appropriations to offset the shortfall would result in a reduction in staff that are critical to delivery of the program. It's possible this shortfall could be absorbed by other general fund savings within the department. The Department and CAO will monitor expenditures and return, if necessary, with a budget transfer.
Workers' Compensation Insurance Fraud Grant
The District Attorney's Office has received this grant for the past nine years and continues to be active in the investigation and prosecution of workers' compensation insurance fraud. In addition, the District Attorney's Office continues to develop and maintain relationships with outside agencies working in this field, as well as engaging in outreach to the public for the purpose of reducing violations by providing education to employers and employees.
A signed resolution is required in order for the District Attorney to sign the Grant Award Agreements with the California Department of Insurance (CDI). Approval of these recommendations will allow the District Attorney's Office to continue receiving grant funds that support their consumer protection efforts.
ALTERNATIVES
Should the Board choose to not accept the Grant Agreement, the County would be ineligible to participate in the program.
PRIOR BOARD ACTION
Legistar Item 18-1189, October 16, 2018 - Board approved the acceptance of FY 2018-19 Grant Award Agreement with the California Department of Insurance for the Automobile Insurance Fraud Program in the amount of $231,870 and for the Workers' Compensation Insurance Fraud Program in the amount of $353,173
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
All related costs are included in the FY 2019-20 Adopted Budget. However, the grant amount is less than what is included in the FY 2019-20 Adopted Budget. Budget staff will monitor the department budget during the year for possible savings in other areas. If general fund savings within the department is not identified to cover the approximate $50,000 grant revenue shortfall, a transfer from contingency may be recommended.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon approval, Clerk of the Board to return one certified copy of each resolution to the CAO Central Fiscal Unit, Attn: Justene Grewal.
STRATEGIC PLAN COMPONENT
Public Safety
CONTACT
Vern Pierson, District Attorney