title
Accept the Compliance Audit of the Probation Department’s Juvenile Trust Fund and Ward Welfare Fund; and Approve moving from an annual to a biennial audit beginning with fiscal year ending June 30, 2027
body
Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Auditor-Controller’s Office (ACO) recommends the Board of Supervisors:
1. Accept the Probation Juvenile Trust Fund and Ward Welfare Fund Compliance Audit for fiscal year ended June 30, 2025; and
2. Approve moving from an annual to a biennial audit beginning with fiscal year ending June 30, 2027.
SUMMARY:
Pursuant to Welfare Institutions Code (WIC) §275(b), the ACO completed the Probation Department Juvenile Trust Fund and Ward Welfare Fund Compliance Audit. The audit was conducted in conformance with the Global Internal Audit Standards as developed by the Institute of Internal Auditors.
The objective of the audit was to evaluate Probation’s books and accounts for the Juvenile Trust Fund (Fund 247) and Juvenile Ward Welfare Fund (Fund 035) from July 1, 2024 through June 30, 2025. Based on the audit we determined both the Juvenile Trust Fund and the Juvenile Ward Welfare Fund are in compliance with WIC §276 and §873.
WIC §275(b) requires the ACO to conduct an annual audit, or biennially if ordered by the Board of Supervisors upon the recommendation of the ACO. Because there were no expenditures in the Juvenile Ward Welfare Fund for the fiscal year ending June 30, 2025, the ACO recommends changing the frequency of audit from annual to biennial.
FINANCIAL IMPACT:
The acceptance of the report has no financial impact.
DISCUSSION:
The state has moved away from collecting administrative fees and costs such as the restitution fees and the fees for placing collect phone calls. For example, California Assembly Bill (AB) 177 and AB 1869 repealed the authority of counties to collect a range of administrative fees and/or costs for criminal defendants. These changes have reduced the amount of activity in the Juvenile Probation Trust Fund and the Juvenile Ward Welfare Fund.
ACO interviewed Probation staff to understand the use and oversight of the Juvenile Trust Fund and the Juvenile Welfare Ward Fund. ACO selected a sample of transactions from each fund to review for compliance with WIC.
ACO did not identify any instances of noncompliance with WIC during this audit.
The transactions in the Juvenile Probation Trust Fund consisted of daily collections of restitution payments and monthly transfers to the courts. No fees or administrative costs were collected for the service.
There are currently no revenue sources to replenish money in the Juvenile Welfare Ward Fund. The Probation Department follows a conservative interpretation of allowable uses and chooses to prioritize use of grant funding. The only transactions in the Fund in FY2024/25 were for interest earned on the balance in the Treasury.
Based on the limited activity, ACO recommends the BOS exercise the authority granted in WIC §275(b) to change the audit frequency from annual to biennial.
ALTERNATIVES:
The Board of Supervisors could elect not to accept the report and recommendation for biennial audit. This alternative is not consistent with sound public policy and is therefore not recommended.
OTHER AGENCY INVOLVEMENT:
The Probation Department has reviewed and accepted the report.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION