Report 2013-107 Recommendation 8 Responses

Report 2013-107: Accounts Outside the State's Centralized Treasury System: Processes Exist to Safeguard Money, but Controls for These Accounts Need Strengthening (Release Date: October 2013)

Recommendation #8 To: Forestry and Fire Protection, Department of

To safeguard cost recovery program revenue, Cal Fire should, within the next six months, implement adequate segregation of duties for its cost recovery program revenues. For example, it should require that cost recovery payments be mailed to its accounting office, as are other payments.

6-Month Agency Response

The California Department of Forestry and Fire Protection (CAL FIRE) continues to strengthen its internal controls regarding the Civil Cost Recovery (CCR) Program including, but not limited to, ongoing training and policy improvements.

On or about October 18, 2013, the CCR Program created a centralized mailbox for remittance of CCR payments to its Sacramento Headquarters Departmental Accounting Office (DAO). The CCR Program also standardized its Letter of Demand template providing for remittance information and payment coupons to assist with reconciliation of payments. This phase was initially implemented on a limited basis to test and monitor for program improvements. Effectively evaluated in early December 2013, the centralized remittance process went into full effect on January 1, 2014.

In addition to the receipt of CCR payments, the DAO is also the centralized point of contact for all payment deposits.

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


60-Day Agency Response

The California Department of Forestry and Fire Protection (CAL FIRE) continues to strengthen its internal controls regarding the Civil Cost Recovery (CCR) Program including, but not limited to, ongoing training and policy improvements.

On or about October 18, 2013, the CCR Program created a centralized mailbox for remittance of CCR payments to its Sacramento Headquarters Departmental Accounting Office (DAO). The CCR Program also standardized its "Letter of Demand" template providing for remittance information and payment coupons to assist with reconciliation of payments. This phase was initially implemented on a limited basis to test and monitor for program improvements. Effectively evaluated in early December 2013, the centralized remittance process will go into full effect on or about January 1, 2014.

In addition to the receipt of CCR payments, the DAO will also be the centralized point of contact for all payment deposits.

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


All Recommendations in 2013-107

Agency responses received are posted verbatim.