Title
District Attorney's Office recommending the Board consider the following:
1) Adopt and authorize the Chair to sign Resolution 186-2022 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 2022-2023 in the amount of $192,533, 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 187-2022 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 2022-2023 in the amount of $453,381 including any extensions or amendments thereafter which would not increase net county cost;
3) Approve and authorize the Chair to sign Fiscal Year 2022-2023 budget transfer adjusting appropriations and estimated 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); and
4) Add one (1) 2023 Chevy Traverse assigned to the Fiscal Year 2022-23 Fixed Asset list, dedicated to the Workers’ Compensation Insurance Fraud Program, with an estimated total cost of $37,400.
FUNDING: California Department of Insurance.
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DISCUSSION / BACKGROUND
The District Attorney's Office has received Automobile Insurance Fraud and Workers' Compensation Insurance Fraud grant funding 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 automobile 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 2022-23 Auto Fraud award amount is $192,533, which is $6,553 less than what was anticipated on the FY 2022-23 Adopted Budget. A budget transfer reducing revenue a is being requested. It is anticipated this shortfall can be absorbed by other general fund savings within the department. The Department and CAO will monitor expenditures and return, if necessary. Additionally, the program maintains carryforward funding from the prior FY 2021-22 grant award in the amount of $54,814, which is anticipated to fund as-needed extra-help salaries of participating staff.
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 2022-23 Workers’ Compensation Fraud award amount is $453,381, which is $14,559 higher than what was anticipated on the FY 2022-23 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 2021-22 grant award in the amount of $99,767, which is anticipated to fund as-needed extra-help salaries of participating staff, professional services related to casework, and a new vehicle to be shared by the assigned parttime District Attorney Investigator and Deputy District Attorney. The vehicle shall be Fleet owned, department funded, and added to the County’s Fixed Asset list.
A signed resolution is required for the District Attorney to sign and accept the Grant Award Agreements with the California Department of Insurance (CDI), upon receipt and County Counsel review and approval. 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 Agreements and execute the associated resolutions, the County would be ineligible to participate in the CDI Fraud Programs.
PRIOR BOARD ACTION
Board Item 21-1532, October 19, 2021: Board approved the acceptance of FY 2021-22 Grant Award Agreement with the California Department of Insurance for the Automobile Insurance Fraud Program in the amount of $198,464 and for the Workers' Compensation Insurance Fraud Program in the amount of $437,474.
Board Item 20-1331, October 20, 2020: Board approved the acceptance of FY 2020-21 Grant Award Agreement with the California Department of Insurance for the Automobile Insurance Fraud Program in the amount of $197,697 and for the Workers' Compensation Insurance Fraud Program in the amount of $446,750.
Board Item 19-1367, October 8, 2019: Board approved the acceptance of FY 2019-20 Grant Award Agreement with the California Department of Insurance for the Automobile Insurance Fraud Program in the amount of $220,333 and for the Workers' Compensation Insurance Fraud Program in the amount of $408,465.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
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 2022-23 Adopted Budget, a budget transfer is necessary to account for the program changes. The recommended budget transfer increases appropriations and revenue for the Workers’ Comp Program with an increase in anticipated expenditures under Extra Help, Professional Services, and Fleet transfer costs. The budget transfer also decreases incoming revenue under the Auto Fraud Program, while appropriating the use of carryforward funds from the previous grant cycle.
Approval of this budget transfer will have no impact 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
Public Safety
CONTACT
Vern Pierson, District Attorney