Report 2018-102 Recommendation 9 Responses
Report 2018-102: Tulare Local Healthcare District: Past Poor Decisions Contributed to the Closure of the Medical Center, and Licensing Issues May Delay Its Reopening (Release Date: October 2018)
Recommendation #9 To: Tulare Local Healthcare District
To ensure that it maintains adequate oversight of expenditures from any future bond proceeds, by April 2019 the district should establish a formal policy to include, as part of the charter for any future bond oversight committee, a requirement that the committee review bond expenditures quarterly at a minimum. The policy should also require the committee to report the results of its reviews to the board quarterly.
1-Year Agency Response
Written policy approved by the Tulare Local Healthcare District Board on 24 April 2019.
- Completion Date: May 2019
- Response Date: May 2019
California State Auditor's Assessment of 1-Year Status: Fully Implemented
6-Month Agency Response
We were delayed in bringing on new staff to implement the appropriate recommendations, but Board members are working to amend our policies and hope to approve them at our next regular board meeting on April 24.
- Estimated Completion Date: April 2019
- Response Date: April 2019
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The District concurs with the recommendation. However, even assuming the District seeks future bond funding, establishing a policy by April 2019 would require the District to anticipate the requirements of unknown bondholders at an indeterminate time in the future. The District will update its policies in accordance with the recommendation prior to the receipt of any future bond funds.
- Estimated Completion Date: when new bonds issued
- Response Date: December 2018
California State Auditor's Assessment of 60-Day Status: No Action Taken
We do not agree with the district's statement that establishing a policy by April 2019 requires the district to anticipate requirements that are unknown. The district can and should formalize a requirement that the committee review bond expenditures quarterly, and that the committee report the results of its reviews to the board quarterly. The district's policy should be the district's minimum in terms of monitoring future bond expenditures—any specific requirements of any future bondholders should be performed in addition to the district's minimum requirements.
Agency responses received are posted verbatim.