mariposa county court revenuesauditor, and cynthia busse, court executive officer, jointly responded...

MARIPOSA COUNTY

Audit Report

COURT REVENUES

July 1, 2008, through June 30, 2015

BETTY T. YEE California State Controller

June 2017

BETTY T. YEE

California State Controller

June 30, 2017

Deborah Isaacs, County Auditor Cynthia Busse, Court Executive Officer

Mariposa County Superior Court of California Mariposa

4982 Tenth Street 5088 Bullion Street

Mariposa, CA 95338 Mariposa, CA 95338

Dear Ms. Issacs and Ms. Busse:

The State Controller’s Office audited Mariposa County’s court revenues for the period of July 1,

2008, through June 30, 2015.

Our audit found that the county underremitted $111,031 in court revenues to the State Treasurer

because it:

Overremitted the 50% excess of qualified fines, fees, and penalties by $64,272;

Underremitted the State Court Facilities Construction Fund – Immediate and Critical Needs

Account (ICNA) by $156,831 from the Superior Court; and

Underremitted the State Court Facilities Construction Fund – ICNA by $18,472 from the

Probation Department.

The county should remit $111,031 to the State Treasurer.

The county should differentiate the individual accounts making up this amount on the bottom

portion of the monthly Report to State Controller of Remittance to State Treasurer form (TC-31),

in accordance with standard remittance procedures. The county should state on the TC-31 that

the account adjustments relate to the SCO audit for the period of July 1, 2008, through June 30,

2015.

Please mail a copy of the TC-31 and documentation supporting the corresponding adjustment(s)

to the attention of the following individuals:

Jerry Zhou, Audit Manager Ranae Harkins, Supervisor

Division of Audits Division of Accounting and Reporting

State Controller’s Office Bureau of Tax Administration & Government Compensation

Post Office Box 942850 Post Office Box 942850

Sacramento, CA 94250-5874 Sacramento, CA 94250-5872

Deborah Isaacs, Auditor-Controller -2- June 30, 2017

Cynthia Busse, Court Executive Officer

Once the county has paid the underremitted State Trial Court Improvement and Modernization

Fund, and State Court Facilities Construction Fund amounts, we will calculate a penalty on the

underremitted amounts and bill the county, in accordance with Government Code sections

68085, 70353, and 70377.

If you have any questions, please contact Elizabeth González, Bureau Chief, by telephone at

(916) 324-0622 or by email at [email protected].

Sincerely,

Original signed by

JEFFREY V. BROWNFIELD, CPA

Chief, Division of Audits

JVB/rg

cc: Marshall Long, Chairman

Mariposa County Board of Supervisors

Grant Parks, Manager

Internal Audit Services

Judicial Council of California

Julie Nauman, Executive Officer

Victim Compensation and Government Claims Board

Anita Lee, Senior Fiscal and Policy Analyst

Legislative Analyst’s Office

Don Lowrie, Fiscal Analyst

Division of Accounting and Reporting

State Controller’s Office

Ranae Harkins, Supervisor, Tax Programs Unit

Division of Accounting and Reporting


Mariposa County Court Revenues

Contents

Audit Report

Summary ............................................................................................................................ 1

Background ........................................................................................................................ 1

Objectives, Scope, and Methodology ............................................................................... 1

Conclusion .......................................................................................................................... 2

Follow-up on Prior Audit Findings .................................................................................. 2

Views of Responsible Officials .......................................................................................... 3

Restricted Use .................................................................................................................... 3

Findings and Recommendations ........................................................................................... 4

Schedule 1—Summary of Audit Findings by Fiscal Year .................................................. 8

Schedule 2—Summary of Underremittances by Month, State Court Facilities

Construction Fund – Immediate and Critical Needs Account ................ 9

Schedule 3—Summary of Overremittances by Month ....................................................... 10

Attachment—County and Superior Court Joint Response to Draft Audit Report


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Audit Report

The State Controller’s Office (SCO) performed an audit to determine the

propriety of court revenues remitted to the State of California by Mariposa

County on the Report to State Controller of Remittance to State Treasurer

form (TC-31) for the period of July 1, 2008, through June 30, 2015.

Our audit found that the county underremitted $111,031 in court revenues

to the State Treasurer because it:

Overremitted the 50% excess of qualified fines, fees, and penalties by

$64,272;

Underremitted the State Court Facilities Construction Fund –

Immediate and Critical Needs Account (ICNA) by $156,831 from the

Superior Court; and

Underremitted the State Court Facilities Construction Fund – ICNA

by $18,472 from the Probation Department.


State statutes govern the distribution of court revenues, which include

fines, penalties, assessments, fees, restitutions, bail forfeitures, and

parking surcharges. Whenever the State is entitled to a portion of such

money, the court is required by Government Code (GC) section 68101 to

deposit the State’s portion of court revenues with the county treasurer as

soon as practical and provide the county auditor with a monthly record of

collections. This section further requires that the county auditor transmit

the funds and a record of the money collected to the State Treasurer at least

once a month.

GC section 68103 requires that the SCO determine whether or not all court

collections remitted to the State Treasurer are complete. GC section 68104

authorizes the State Controller to examine records maintained by any

court. Furthermore, GC section 12410 provides the SCO with general

audit authority to ensure that state funds are properly safeguarded.

Our audit objective was to determine whether the county and court

remitted court revenues pursuant to the TC-31 process in a timely manner

to the State Treasurer for the period of July 1, 2008, through June 30, 2015.

To meet our objective, we performed the following procedures:

General

Gained an understanding of the county and court’s revenue collection

and reporting processes by interviewing key personnel and reviewing

documentation supporting the transaction flow

Scheduled monthly TC-31 remittances prepared by the county and the

court showing court revenue distributions to the State

Summary

Objectives, Scope,

and Methodology

Background


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Cash Collections

Scheduled monthly cash disbursements prepared by the county and

the court showing court revenue distributions to the State, county, and

cities

Performed analytical reviews to assess the reasonableness of the

revenue distributions

Recomputed the annual maintenance-of-effort (MOE) calculation to

check the accuracy and completeness of the 50% excess of qualified

fines, penalties, and assessments remitted to the State

Distribution Testing

Selected non-statistical samples of 28 cases for each type of criminal,

civil, or traffic violation for all fiscal years during the audit period

Recomputed sample case distributions and compared them to actual

distributions

Quantified the total effect of any material overremittances and/or

underremittances to the State, county, or cities; errors found will not

be projected to the population

We conducted this performance audit in accordance with generally

accepted government auditing standards. Those standards require that we

plan and perform the audit to obtain sufficient appropriate evidence to

provide a reasonable basis for our findings and conclusions based on our

audit objectives. We believe that the evidence obtained provides a

reasonable basis for our findings and conclusions based on our audit

objective.

We did not audit the county and court’s financial statements. We

considered the county and court’s internal controls only to the extent

necessary to plan the audit. We did not review the timeliness of any court

revenue remittances that the county and court may be required to make

under GC sections 70353 and 77201.1(b), included in the TC-31.

Mariposa County underremitted $111,031 in court revenues to the State

Treasurer. The underremittances are summarized in Schedule 1 and

described in the Findings and Recommendations section of this report.


The county has satisfactorily resolved the findings noted in our prior audit

report, issued February 23, 2011.

Follow-up on Prior

Audit Findings

Conclusion


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We issued a draft audit report on June 7, 2017. Deborah Isaacs, County

Auditor, and Cynthia Busse, Court Executive Officer, jointly responded

by letter dated June 21, 2017, agreeing with the audit results. The response

is included as an attachment to this report.

This final report is solely intended for the information and use of Mariposa

County, the Mariposa County Courts, the Judicial Council of California,

and the SCO; it is not intended to be and should not be used by anyone

other than these specified parties. This restriction is not intended to limit

the distribution of this report, which is a matter of public record and is

available on the SCO website at www.sco.ca.gov.

Original signed by

JEFFREY V. BROWNFIELD, CPA

Chief, Division of Audits

June 30, 2017

Restricted Use

Views of

Responsible

Officials


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Findings and Recommendations

Mariposa County overremitted by $64,272 the 50% excess of qualified

fines, fees, and penalties to the State Treasurer for the seven fiscal years

starting July 1, 2008, and ending June 30, 2015.

GC section 77205 requires the county to remit 50% of qualified revenues

that exceed the amount specified in GC section 77201.1(b)(2) for fiscal

year (FY) 1998-99, and each fiscal year thereafter, to the State Trial Court

Improvement and Modernization Fund.

The error occurred because:

From FY 2008-09 through FY 2014-15, the county used incorrect

entries in its MOE distribution working papers. A total of $38,222

should not have been included in the MOE calculation.

As stated in Finding 2, Mariposa Superior Court underremitted the

State Court Facilities Construction Fund – ICNA from FY 2008-09

through FY 2011-12. A total of $80,291 should not have been included

in the MOE calculation.

As stated in Finding 3, Mariposa Probation Department underremitted

the State Court Facilities Construction Fund – ICNA from

FY 2008-09 through FY 2011-12. A total of $10,030 should not have

been included in the MOE calculation.

The qualified revenues reported for FY 2008-09 were $341,084. The

excess, above the base of $135,457, is $205,627. This amount should be

divided equally between the county and the State, resulting in $102,813

excess due the State. The county remitted a payment of $107,793, resulting

in an overremittance of $4,980.
















FINDING 1—

Overremitted the

50% excess of

qualified fines, fees,

and penalties


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excess due the state. The county remitted a payment of $51,614, resulting

in an overremittance of $605.




excess due the state. The county remitted a payment of $61,633, resulting

in an overremittance of $81. –

The following table shows the net effect of the overremittances:

Account Title

Underremitted/

(Overremitted)

State Trial Court Improvement and Modernization Fund – GC §77205

FY 2008-09 (4,980)$

FY 2009-10 (14,815)

FY 2010-11 (26,900)

FY 2011-12 (8,797)

FY 2012-13 (8,094)

FY 2013-14 (605)

FY 2014-15 (81)

County General Fund 64,272

Recommendation

The county should reduce subsequent remittances by $64,272 to the State

Treasurer and report on the TC-31 a decrease to the State Trial Court

Improvement and Modernization Fund. The county also should make the

corresponding account adjustments.

Mariposa Superior Court underremitted the State Court Facilities

Construction Fund – ICNA starting January 2009 through April 2012. The

court’s JALAN system was not programmed to calculate and assess State

Court Construction penalty.

GC section 70372(a) requires that a State Court Construction penalty be

levied in an amount equal to $5 for every $10, or fraction thereof, upon

every criminal fine, penalty, or forfeiture imposed and collected. Also, GC

section 70371.5 establishes the ICNA Fund.

FINDING 2—

Underremitted State

Court Facilities

Construction Fund –

Immediate and

Critical Needs

Account – Superior

Court


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The incorrect distributions had the following effect:

Account Title

Underremitted/

(Overremitted)

State Court Facilities Construction Fund – ICNA - GC §70372(a) $243,982

State Penalty Fund - PC §1464 (56,572)

State DNA Penalty Fund - GC §76104.7 (17,697)

State DNA Penalty Fund (Prop. 69) - GC §76104.6 (8,072)

State General Fund (20% State Surcharge) - PC §1465.7 (4,810)

County General Fund (156,831)

In addition, the incorrect distributions affected the revenues reported to the

State Trial Court Improvement and Modernization Fund under the MOE

formula pursuant to GC section77205. A net total of $80,291 should not

have been included in the MOE calculation (see Finding 1).

Recommendation

The county should remit $156,831 to the State Treasurer and report on the

TC-31 an increase of $243,982 to the State Court Facilities Construction

Fund – ICNA and decreases of $56,572 to the State Penalty Fund, $17,697

to the State DNA Penalty Fund, $8,072 to the State DNA Penalty Fund

(Prop. 69), and $4,810 to the State General Fund (20% State Surcharge).

Mariposa Probation Department underremitted the State Court Facilities

Construction Fund – ICNA starting January 2009 through April 2012. The

Probation’s JALAN system was not programmed to calculate and assess

the State Court Construction penalty.

GC section 70372 (a) requires that a State Court Construction penalty be

levied in an amount equal to $5 for every $10 or fraction thereof, upon

every criminal fine, penalty, or forfeiture imposed and collected. Also, GC

section 70371.5 establishes the ICNA Fund.

The incorrect distributions had the following effect:

Account Title

Underremitted/

(Overremitted)

State Court Facilities Construction Fund – ICNA - GC §70372(a) $30,659

State Penalty Fund - PC §1464 (6,865)

State DNA Penalty Fund - GC §76104.7 (2,402)

State DNA Penalty Fund (Prop. 69) - GC §76104.6 (1,009)

State General Fund (20% State Surcharge) - PC §1465.7 (1,911)

County General Fund (18,472)

In addition, the incorrect distributions affected the revenues reported to the

State Trial Court Improvement and Modernization Fund under the MOE

formula pursuant to GC section 77205. A net total of $10,030 should not

have been included in the MOE calculation (see Finding 1).

FINDING 3—

Underremitted State

Court Facilities

Construction Fund –

Immediate and

Critical Needs

Account – Probation

Department


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Recommendation

The county should remit $18,472 to the State Treasurer and report on the

TC-31 an increase of $30,659 to the State Court Facilities Construction

Fund – ICNA and decreases of $6,865 to the State Penalty Fund, $2,402

to the State DNA Penalty Fund, $1,911 to the State General Fund (20%

state surcharge), and $1,009 to the State DNA Penalty Fund (Prop. 69).


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Schedule 1—

Summary of Audit Findings by Fiscal Year


Findings1

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total Reference2

Overremitted the 50% excess of qualified fines, fees and penalties:

State Trial Court Improvement and Modernization Fund - GC §77205 (4,980)$ (14,815)$ (26,900)$ (8,797)$ (8,094)$ (605)$ (81)$ (64,272)$ Finding 1

Superior Court

Underremitted State Court Facilities Construction Fund - ICNA:

State Court Facilities Construction Fund - ICNA - GC §70372(a) 36,642 79,096 85,765 42,479 - - - 243,982 Finding 2

State Penalty Fund - PC §1464 (8,845) (18,769) (19,366) (9,592) - - - (56,572) Finding 2

State DNA Penalty Fund - GC §76104.7 (1,264) (4,022) (8,300) (4,111) - - - (17,697) Finding 2

State DNA Penalty Fund (Prop. 69) - GC §76104.6 (1,264) (2,681) (2,757) (1,370) - - - (8,072) Finding 2

State General Fund (20 % State Surcharge) - PC §1465.7 (2,387) (5,069) 5,242 (2,596) - - - (4,810) Finding 2

Probation Department

Underremitted State Court Facilities Construction Fund - ICNA:

State Court Facilities Construction Fund - ICNA - GC §70372(a) 3,572 7,501 12,150 7,436 - - - 30,659 Finding 3

State Penalty Fund - PC §1464 (662) (1,780) (2,744) (1,679) - - - (6,865) Finding 3

State DNA Penalty Fund - GC §76104.7 (123) (381) (1,178) (720) - - - (2,402) Finding 3

State General Fund (20% State Surcharge) - PC §1465.7 (233) (481) (743) (454) - - - (1,911) Finding 3

State DNA Penalty Fund (Prop. 69) - GC §76104.6 (123) (254) (392) (240) - - - (1,009) Finding 3

Net amount underpaid (overpaid) to the State Treasurer 20,333$ 38,345$ 40,777$ 20,356$ (8,094)$ (605)$ (81)$ 111,031$

Fiscal Year

__________________________

1 The identification of state revenue account titles should be used to ensure proper recording when preparing the TC-31.

2 See the Findings and Recommendations section.


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Schedule 2—

Summary of Underremittances by Month

State Court Facilities Construction Fund – Immediate and

Critical Needs Account


Superior Court

Month 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total1

July 3,053$ 6,591$ 7,147$ 3,540$ 20,331$

August 3,053 6,591 7,147 3,540 20,331

September 3,053 6,591 7,147 3,540 20,331

October 3,053 6,591 7,147 3,540 20,331

November 3,053 6,591 7,147 3,540 20,331

December 3,053 6,591 7,147 3,540 20,331

January 3,053 6,591 7,147 3,540 20,331

February 3,053 6,591 7,147 3,540 20,331

March 3,053 6,591 7,147 3,540 20,331

April 3,053 6,591 7,147 3,540 20,331

May 3,053 6,591 7,147 3,540 20,331

June 3,059 6,595 7,148 3,539 20,341

Total underremittances to

the State Treasurer 36,642$ 79,096$ 85,765$ 42,479$ -$ -$ -$ 243,982$

Probation Department

Month 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total1

July 298$ 625$ 1,012$ 620$ 2,555$

August 298 625 1,012 620 2,555

September 298 625 1,012 620 2,555

October 298 625 1,012 620 2,555

November 298 625 1,012 620 2,555

December 298 625 1,012 620 2,555

January 298 625 1,012 620 2,555

February 298 625 1,012 620 2,555

March 298 625 1,012 620 2,555

April 298 625 1,012 620 2,555

May 298 625 1,012 620 2,555

June 294 626 1,018 616 2,554

Total underremittances to

the State Treasurer 3,572$ 7,501$ 12,150$ 7,436$ -$ -$ -$ 30,659$

Fiscal Year

Fiscal Year

NOTE: Delinquent State Court Facilities Construction Fund – ICNA remittances not remitted to the SCO within 45

days of the end of the month in which the fees were collected are subject to penalty, pursuant to GC section 70377.

The SCO will calculate and bill the county for the penalty amount after the county pays the underlying amount owed.

____________________________

1 This is a supplemental schedule for the SCO to calculate penalties and interests. The grand total is listed to facilitate

the review process.


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Schedule 3—

Summary of Overremittances by Month


____________________________

1 This is a supplemental schedule for the SCO to calculate penalties and interests. The grand total is listed to facilitate

the review process.

Month 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total1

July (1,657)$ (4,021)$ (4,761)$ (2,463)$ (675)$ (50)$ (7)$ (13,634)$

August (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

September (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

October (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

November (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

December (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

January (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

February (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

March (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

April (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

May (1,657) (4,021) (4,761) (2,463) (675) (50) (7) (13,634)

June (1,654) (4,021) (4,767) (2,466) (669) (55) (4) (13,636)

Total overremittances to

the State Treasurer (19,881)$ (48,252)$ (57,138)$ (29,559)$ (8,094)$ (605)$ (81)$ (163,610)$

Fiscal Year


Attachment—

County and Superior Court Joint Response to

Draft Audit Report


Division of Audits

Post Office Box 942850

Sacramento, CA 94250-5874

http://www.sco.ca.gov

S16-CRV-0002

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