Title
District Attorney's Office recommending the Board consider the following:
1) Adopt and authorize the Chair to sign Resolution 185-2025 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) 2025-26 in the amount of $172,419, 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 186-2025 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 2025-26 in the amount of $555,122 including any extensions or amendments thereafter which would not increase net county cost; and
3) Approve and authorize the Chair to sign FY 2025-26 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 2025-26 Auto Fraud award amount is $172,419, which is $11,756 less than what was anticipated in the FY 2025-26 Adopted Budget. A budget transfer reducing incoming revenue under the Special Revenue Fund is being requested. The program does not anticipate any carryforward funding from the prior FY 2024-25 grant award, with the exception of carryforward interest earned in the Special Revenue Fund in the amount of $4,980. This results in an overall appropriation reduction of $6,776, which will be recorded under the Auto Fraud Extra-Help budget. The enclosed budget transfer adjusts appropriations and revenue for the Automobile Fraud program to match the adjusted grant total of $177,399.
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 2025-26 Workers’ Compensation Fraud award amount is $555,122 which is $5,937 more than what was anticipated in the FY 2025-26 Adopted Budget. A budget transfer increasing incoming revenue under the Special Revenue Fund is being requested. Additionally, the program maintains carryforward funding from the prior FY 2024-25 grant award and interest earned in the amount of $153,468, which is anticipated to fund as-needed extra-help salaries of participating staff and anticipated overtime salaries as needs relate to potential extensive casework. The enclosed budget transfer adjusts total appropriations and revenue for the Workers’ Compensation Fraud program to match the adjusted grant total of $708,590.
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.
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 2025-26 CDI grant awards.
PRIOR BOARD ACTION
12/10/2024 Legistar file 24-2085 - The Board approved the District Attorney’s Office to accept the FY 2024-25 CDI Automobile Fraud and Workers’ Compensation Fraud grant awards and executed associated proof of authority resolutions and budget transfer.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Auditor Controller Office
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 2025-26 Adopted Budget, a budget transfer is necessary. The recommended budget transfer increases appropriations and revenue for the Workers’ Compensation Program and decreases incoming revenue and appropriations under the Auto Fraud Program based on actual awards and anticipated carryover funds.
There is no increase to Net County Cost. 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