Report 2012-117 Recommendation 2 Responses

Report 2012-117: State Athletic Commission: Its Ongoing Administrative Struggles Call Its Future Into Question (Release Date: March 2013)

Recommendation #2 To: Athletic Commission, State

To ensure its future financial stability, the commission should work with Consumer Affairs to establish a long-term financial plan that contains the following:
• A reasonable annual budget with an accurate forecast of planned expenditures. The commission should determine this budget based in part on its ability or inability to meet the expenditure limitations stipulated in the solvency plan.
• The number of inspectors necessary to regulate each type of event. In establishing this number, the commission should take into account the varying size and complexity of the events. It should also determine the cost for each inspector to regulate an event.
• An estimate of its costs to regulate different types of events. To arrive at a reasonable estimate, the commission will need to track at least six months of actual expenditures.
• The number of staff necessary to perform all of the commission's necessary functions. The commission will need to conduct a workload analysis as soon as possible to determine how many staff it requires and adjust its planned expenditures accordingly.
• Funds for athletic inspectors' training that are sufficient to meet the requirement that inspectors receive training within six months of an event that they are scheduled to work.
• Strategies to increase revenue. The commission may need to conduct analyses to determine whether the opportunities it is currently considering are legally permissible and fiscally prudent. If so, the commission should take steps to implement those strategies, including seeking any necessary legislative changes.

Annual Follow-Up Agency Response From October 2016

We have worked with the Department of Consumer Affairs to develop a long term financial plan. We have had multiple budget change proposals that has increased the Commission's operating budget. We have identified the number of inspectors needed by the event size, venue type, television presence, number of bouts, number of drug tests given, etc. We have a master sheet that tracks the number of events we regulate and all data associated with those events. Staff updates that sheet weekly. We have allocated money in future budgets for Athletic Inspector training. We have worked to increase revenue and the strategy for increasing revenue involves excellent officials, customer service, superb drug testing, concussion management, attention to dehydration and rehydration, and an overall focus on training and preparation. A workload analysis has been completed and will be sent to your office.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Based on its last annual response, we determined that the commission had implemented all elements of this recommendation except for the workload analysis.The commission performed and provided this workload analysis as part of its current response. Thus, this recommendation is fully implemented.

Annual Follow-Up Agency Response From September 2015

The Commission began a workload analysis in August 2015 and plans to have this recommendation completed by October 15, 2015.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From September 2014

This recommendation is almost fully implemented. The only item we are lacking is the workload analysis. We plan to complete a workload analysis in approximately 6 months.

We currently have 7 staff members, one of which is out on maternity leave and one is about to take maternity leave. 6 months is a good projection of getting this recommendation fully implemented.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

The Executive Officer and the Commissioners worked closely to develop a reasonable budget that focused on reasonable expenditures with a conservative revenue forecast. This budget was approved at the June 10, 2013 Commission meeting.

The Commission has determined the number of inspectors needed with 4-5 being the minimum and 5-6 being the norm.

The Commission has been tracking the various events that it regulates which began in January 2013.

We have not made any more progress on the workload analysis recommendation. We plan to begin again in a few months.

The Executive Officer and the Commission have worked closely with Consumer Affairs and secured a $200,000 supplemental to next year's budget that is available for inspector wages, travel, and training.

Update: The Commission voted unanimously to approve the long term financial plan at the June 10, 2013 meeting.

Update: SB 309 that specified all of the strategies to increase revenue has now been passed by the Senate and the Assembly and is awaiting the Governor's signature.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

The Executive Officer and the Commissioners worked closely to devlop a reasonalbe budget that focused on reasonable expenditures with a conservative revenue forecast. This budget was approved at the June 10, 2013 Commission meeting. Please see attachments 2 and 8.

The Commission has determined the number of inspectors needed with 4-5 being the minimum and 5-6 being the norm. Please see attachment 3.

The Commission has been tracking the various events that it regulates which began in January using November's numbers and have completed six months of tracking. Please see attachment 3.

We have not made any more progress on the workload analysis recommendation. We plan to begin again in a few months.

The Executive Officer and the Commission have worked closely with Consumer Affairs and secured a $200,000 supplemental to next year's budget that is available for inspector wages, travel, and training.

Update: The Commission voted unanimously to approve the long term financial plan at the June 10, 2013 meeting. Please see attachments 2, 8 and 9.

Update: SB 309 that specified all of the strategies to increase revenue has now been passed by the Senate and the Assembly and is awaiting the Governor's signature. Please see attachment 4.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

The executive officer and the commissioners are working together with Consumer Affairs' budget office to develop a reasonable budget. The Commission determined the number of inspectors needed, with 4-5 being the minimum and 5-6 being the norm. For larger events, to ensure all locker rooms and anti-doping procedures are followed, the Commission may assign more inspectors. The Commission has completed five months of event tracking. The Executive Officer is updating a workload analysis and estimates that the commission is 25 percent complete. He plans to coordinate with Consumer Affairs' Human Resource Office to help complete a detailed work load study and plans to have one completed by the commission's six month response. The executive officer and the commission worked with Consumer Affairs and secured a $200,000 supplement to next year's budget that is available for inspector wages, travel, and training. The Commission has worked with Consumer Affairs and Legislative staff to add many revenue enhancing strategies to the Commission's sunset bill. Some of those strategies include a raise in the TV tax cap, charging for federal identification card creation, and a creation of a new license type.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2012-117

Agency responses received after June 2013 are posted verbatim.