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Adopt a resolution affirming the Solano County District Attorney's prior submission of a recurring grant proposal to the California Department of Insurance for the investigation and prosecution of workers’ compensation insurance fraud; Authorize the District Attorney, or her designee, to accept the award in the amount of $307,726 for the period ending June 30, 2024; and Approve an Appropriation Transfer Request recognizing $138,506 in grant revenue above the amount budgeted for FY2023/24 offset by appropriations for Services and Supplies (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The District Attorney recommends that the Board of Supervisors:
1. Adopt a resolution affirming the Solano County District Attorney's prior submission of a recurring grant proposal to the California Department of Insurance for the investigation and prosecution of workers’ compensation insurance fraud; and
2. Authorize the District Attorney, or her designee, to accept the award in the amount of $307,726 for the period ending June 30, 2024; and
3. Approve an Appropriation Transfer Request (ATR) recognizing $138,506 in grant revenue above the amount budgeted for FY2023/24 offset by appropriations for Services and Supplies (4/5 vote required).
SUMMARY/DISCUSSION:
The District Attorney’s Office has operated the Workers’ Compensation Insurance Fraud Program for the past 26 years. The dedicated unit is assigned exclusively to the prosecution of workers’ compensation insurance fraud and consists of a Deputy District Attorney and an Investigator. Each year the District Attorney submits and receives grant funding from the California Department of Insurance to partially offset program costs.
On April 17, 2023, the District Attorney submitted the grant application for FY2023/24. On November 14, 2023, the District Attorney was notified by the Insurance Commissioner that the award to Solano County was $292,866. On February 6, 2024, the Insurance Commissioner approved the carryover of $12,893 in FY2022/23 funds. On March 4, 2024, the Insurance Commissioner awarded $1,967 in additional funding, for a total award of $307,726 for the period ending June 30, 2024.
A complete copy of the grant application is attached (Attachment A). A copy of the grant application budget is attached (Attachment B). This is a recurring grant, and revenue and appropriations were included in the District Attorney’s FY2023/24 Adopted Budget as instructed in the County Financial Administration of Grants handbook. Approval of this recurring grant will allow the District Attorney's Office to continue to investigate and prosecute crimes involving workers’ compensation insurance fraud.
FINANCIAL IMPACT:
The financing for this program is derived from monies collected by insurance companies as a surcharge on workers’ compensation insurance premiums. These funds are distributed pursuant to Insurance Code §1872.83 by the State of California Department of Insurance.
The District Attorney’s FY2023/24 Adopted Budget included $169,220 in projected revenue and offsetting appropriations for this program and was in-line with prior year awards. On November 14, 2023, the District Attorney was notified by the Insurance Commissioner that the award to Solano County was $292,866 (Attachment C). On February 6, 2024, the Insurance Commissioner approved the carryover of $12,893 in FY2022/23 funds (Attachment D). On March 18, 2024, the Insurance Commissioner approved an additional $1,967 in funding, for a total award of $307,726 for the period ending June 30, 2024 (Attachment E). This is $138,506 more than the amount included in the FY2023/24 Adopted Budget. As a result, the District Attorney is recommending approval of an Appropriation Transfer Request (ATR) recognizing $138,506 in unanticipated grant revenue offset by program expenditures. There is no anticipated impact to the General Fund.
The costs associated with preparing the agenda item are nominal and absorbed by the District Attorney’s FY2023/24 Working Budget.
ALTERNATIVES:
The Board can choose not to adopt the resolution; however, this action is not recommended. Failure to adopt the resolution would result in the loss of approximately $307,726 in grant funds and a significant impact in the District Attorney's ability to investigate and prosecute workers’ compensation insurance fraud.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION