TITLE
Recommendation to authorize the refund of prior-year grant funds to the California Department of Public Health (CDPH) in the amount of $37,627, plus interest. (Citywide)
DISCUSSION
On September 29, 2014, the State Controller's Office (SCO) performed a biannual financial audit of the Women, Infants and Children (WIC) Program, administered by the Department of Health and Human Services. The audit resulted in findings that, in fiscal year 2012-2013, WIC claimed, and was reimbursed, $37,627 for unallowable operating expenses as follows:
The CDPH WIC office considers the use of a temporary staffing agency to be a third-party contract. Any subcontracts over $5,000 require prior State WIC approval. The City of Long Beach WIC office employed temporary workers to fill vacancies to ensure deliverables were met for grant-funded activities. Non-Essential Items/Supplies were purchased for staff development materials and were deemed unallowable by the CDPH.
This matter was reviewed by Deputy City Attorney Linda Vu on April 10, 2015, and by Budget Management Officer Victoria Bell on April 17, 2015.
TIMING CONSIDERATIONS
City Council action is requested on May 12, 2015 to allow the Health Department to expedite the refund check to the State Department of Public Health.
FISCAL IMPACT
This refund of $37,627, plus interest, will be paid from the Health Fund, and funded by non-grant public health revenue from the State. Sufficient funds are currently appropriated in the Health Fund (SR 130) in the Department of Health and Human Services (HE). There is no impact to the General Fund and no local job impact associated with this action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KELLY COLOPY
DIRECTOR
HEALTH AND HUMAN SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER