Title
District Attorney's Office recommending the Board consider the following:
1) Adopt and authorize the Chair to sign Resolution 227-2024 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 (FY) 2024-25 in the amount of $184,175, based on the received grant award letter, including any extensions or amendments thereafter which would not increase net county costs;
2) Adopt and authorize the Chair to sign Resolution 228-2024 authorizing the District Attorney to execute a Grant Award Agreement with the California Department of Insurance for the Workers' Compensation Insurance Fraud Program for FY 2024-25 in the amount of $549,185 including any extensions or amendments thereafter which would not increase net county cost; and
3) Approve and authorize the Chair to sign FY 2024-25 budget transfer adjusting estimated appropriations and revenue in the Workers’ Compensation Fraud Special Revenue Fund, Automobile Fraud Special Revenue Fund, and the District Attorney’s Office to reflect actual grant award and carryforward amounts. (4/5 vote required)
FUNDING: California Department of Insurance Grant Programs.
Body
DISCUSSION / BACKGROUND
The District Attorney's Office has received Automobile Insurance Fraud and Workers' Compensation Insurance Fraud grant funding since FY 2004-05, as administered by the California Department of Insurance (CDI).
Automobile Insurance Fraud Grant
The District Attorney's Office actively investigates and prosecutes automobile insurance fraud. 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 2024-25 Auto Fraud award amount is $184,175, which is $6,264 less than what was anticipated in the FY 2024-25 Adopted Budget. A budget transfer reducing revenue under the Special Revenue Fund is being requested. Additionally, the program maintains carryforward funding from the prior FY 2023-24 grant award in the amount of $114,366 which is anticipated to fund potential overtime and extra-help salaries of participating staff. The enclosed budget transfer adjusts total budgeted operating transfers in for the Automobile Fraud program to match the adjusted grant total of $298,541.
Workers' Compensation Insurance Fraud Grant
The District Attorney's Office has received this grant for the past twelve 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.
The 2023-24 Workers’ Compensation Fraud award amount is $549,185, which is $37,760 higher than what was anticipated in the FY 2024-25 Adopted Budget. A budget transfer increasing revenue and appropriations is being requested to account for the change in funding amount. Additionally, the program maintains carryforward funding from the prior FY 2023-24 grant award in the amount of $154,868, which is anticipated to fund as-needed extra-help salaries of participating staff, professional services related to casework, and the cost for District Attorney hosted Science Based Interview Training as it relates to fraud investigation techniques. The enclosed budget transfer adjusts total budgeted operating transfers in for the Workers’ Compensation Fraud program to match the adjusted grant total of $704,053.
A signed resolution is required for the District Attorney to sign and accept the Grant Award Agreements with CDI. Approval of these recommendations will allow the District Attorney's Office to continue receiving grant funds that support their consumer protection efforts.
The budget transfer also allows for a transfer from the District Attorney's General Fund to the Workers' Compensation Insurance Fraud Special Revenue Fund (SRF) in the amount of $131 to correct a shortage in the SRF. This shortage is estimated to have occurred 8-10 years ago and has been rolling forward since. Although staff have not identified the exact error, it is very likely that the discrepancy is due to SRF dollars being transfer to the General Fund for ineligible purposes, and therefore a transfer from the General Fund back to the SRF would be an appropriate resolution to the issue.
ALTERNATIVES
Should the Board opt not to approve and authorize the Chair to execute the enclosed resolutions, the District Attorney’s Office will not be able to accept the FY 2024-25 CDI grant awards.
PRIOR BOARD ACTION
06/11/2024 Legistar file 24-0990 - The Board approved the District Attorney’s Office acceptance of additional grant funds under the CDI Automobile Fraud and Workers’ Compensation Fraud grant programs for FY 2023-24 and executed associated budget transfer.
12/12/2023 Legistar file 23-1756 - The Board approved the District Attorney’s Office to accept the FY 2023-24 CDI Automobile Fraud and Workers’ Compensation Fraud grant awards and executed associated proof of authority resolutions and budget transfer.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Auditor Controller’s Office, County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Due to the variance between actual awards for both CDI Programs as compared to the projections included on the FY 2024-25 Adopted Budget, a budget transfer is necessary. The recommended budget transfer increases appropriations and revenue for the Workers’ Compensation Program. The budget transfer also decreases incoming revenue under the Auto Fraud Program, while appropriating the use of carryforward funds from the previous grant cycle for both programs. There is no matching requirement relative to these grants.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon approval, Clerk of the Board to:
1) Return one certified copy of each resolution to the CAO Central Fiscal Unit, Attn: Justene Cline; and
2) Forward executed budget transfer to the Auditor Controller’s Office.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Vern Pierson, District Attorney