{"id":2054487,"date":"2023-10-03T21:09:02","date_gmt":"2023-10-04T01:09:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elected-county-auditor-controllers-behaving-badly\/"},"modified":"2023-10-03T21:12:59","modified_gmt":"2023-10-04T01:12:59","slug":"elected-county-auditor-controllers-behaving-badly","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elected-county-auditor-controllers-behaving-badly\/","title":{"rendered":"Misbehaving Elected County Auditor-Controllers"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">8<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Felected-county-auditor-controllers-behaving-badly%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2054487&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>California Counties Struggle to Release \u2062Financial Reports<\/h2>\n<p>In \u200b54 of California\u2019s 58 counties, the auditor-controller is elected by the voters. They are responsible for the checkbook of \u2064their counties and the accounting of the transactions \u200cthat occurred during the year.\u2062 They are accountants. \u200dWe lovingly \u200dcall them bean counters. You know, the green\u200d eyeshade types of individuals who you usually\u200b never have\u2064 to worry about.<\/p>\n<p>Yet\u2064 five\u2063 of California\u2019s 58 counties were more\u2063 than a year behind in \u200creleasing their Annual Comprehensive Financial Reports (ACFRs). And I\u2019m talking about the year that ended \u200cJune \u200d30, 2021!<\/p>\n<\/blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/opinion\/residents-of-los-angeles-county-should-check-their-cities-fiscal-status-ahead-of-predicted-recession-4967957?ea_src=author_manual&#038;ea_med=related_stories\">Residents of Los Angeles County Should Check Their Cities&#8217; Fiscal Status Ahead \u2063of Predicted Recession<\/a><\/h3>\n<p>1\/9\/2023<\/p>\n<\/li>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/epochtv\/the-pension-crisis-what-happens-when-the-authorities-give-up-john-moorlach-4590714?ea_src=author_manual&#038;ea_med=related_stories\">The Pension\u200c Crisis: What Happens When the Authorities Give\u200c Up? \u200c| John Moorlach<\/a><\/h3>\n<p>7\/11\/2022<\/p>\n<\/li>\n<\/ul>\n<p>Humboldt County was the last ACFR \u200dto arrive, with the retained auditors dating their report on August 31, 2023, and the county \u2062releasing it a month later.\u200d Eureka!<\/p>\n<p>Forgive me for the play on the name of its <a href=\"https:\/\/en.wikipedia.org\/wiki\/Eureka,_California\" target=\"_blank\" rel=\"noopener\">county seat<\/a>, but\u2064 Humboldt County\u2019s last auditor-controller garnered \u200dso much negative\u200d press she was unseated in \u200clast year\u2019s election. The\u200d dismal performance of the now former auditor-controller, Karen Paz Dominguez, found Humboldt County\u2019s CEO issuing the following <a href=\"https:\/\/lostcoastoutpost.com\/2022\/jun\/28\/breaking-karen-paz-dominguez-resign-end-week\/\" target=\"_blank\" rel=\"noopener\">press release<\/a> last June:<\/p>\n<p>\u201cThe\u200d county\u2064 has been struggling\u2062 for years to get the\u200b Auditor\u2062 to\u200c complete \u2064some of our most basic financial reports, and the Board this year \u2063sued the Auditor to mandate that she complete those tasks in response to a state suit on\u200b the same issues.<\/p>\n<p>\u201cTimely and accurate financial recordkeeping is critical to the county\u2019s ability to \u200dsecure state and federal funding and ultimately to provide services\u2063 to the most vulnerable members of our community. \u2062Accordingly, we have \u2064come to a tentative mutual \u200dagreement with the Auditor regarding\u2062 the lawsuits filed by\u200c the Board and the State Controller wherein\u200c she will end her term \u200cearly. Auditor-Controller-elect Cheryl Dillingham will assume the role of interim Auditor-Controller until her term officially begins in January. We appreciate\u200b Ms. Paz Dominguez\u2019s cooperation with this transition.<\/p>\n<p>\u201cThe Board has always been focused on ensuring the county can continue serving our <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elected-county-auditor-controllers-behaving-badly\/\" title=\"Misbehaving Elected County Auditor-Controllers\">community &#8211; providing public safety\u2062 services<\/a>, housing, road repairs, trails, workforce and \u2063economic development and other critical services.\u200d The \u200dBoard has \u200bfull confidence that \u2063Cheryl Dillingham \u200dwill be successful as Auditor-Controller and serve the \u2063people of Humboldt County well.\u201d<\/p>\n<p>Imperial County\u2064 released the second-latest ACFR. Its independent outside auditor\u2019s report was dated May 25, 2023. The drama in this county was even more intriguing, as\u2062 the former auditor-controller, <a href=\"https:\/\/beyondbordersnews.com\/josue-mercado-found-guilty-of-misappropriation-of-funds\/#:~:text=Imperial%20County%20Auditor-Controller%20Josue%20Guadalupe%20Mercado%20was%20found,could%20go%20up%20to%204%20years%20in%20prison.\" target=\"_blank\" rel=\"noopener\">Josue Guadalupe Mercado<\/a>, was found guilty of misappropriating public \u2064funds at his trial in February of 2022. You can\u2019t \u2062make this stuff up!<\/p>\n<p>Tuolumne\u2019s ACFR was \u2064dated April 26, Inyo\u2019s Jan. 13, \u200cand Lassen\u2019s\u2064 was Sept. \u206429 of \u200c2022. The tardiness has been frustrating as we\u2019re in the autumn of 2023, when all the June 30, 2022, ACFRs\u2062 should be online and available.<\/p>\n<p>Now that we finally have all of \u200dthe audited \u2064financial statements for all of California\u2019s 58 counties for the year ending June\u2064 30, 2021, what can we learn from the chart below?<\/p>\n<div class=\"my-5\">\n  <a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/10\/03\/id5503468-California-County-Financial-Rankings-1200x1979.png\" target=\"_blank\" rel=\"noopener\"><\/a>\n<\/div>\n<div class=\"my-5\">From the\u2062 30,000-foot level, \u200dthe first thing one notices\u2063 is\u2063 the decline in population,\u2064 with the state \u200bseeing a drop of 394,013 residents in the 58 counties. This one percent drop, from 39,743,894 to 39,349,881, is <a href=\"https:\/\/www.theepochtimes.com\/opinion\/californias-2021-annual-financial-report-is-finally-here-5175287\" target=\"_blank\" rel=\"noopener\">not reflected<\/a> in the State\u2019s ACFR. The state claimed that it had a \u2062population of 39,500,000\u200c in 2021,\u200b which comes close to \u2064matching. But it reported a population of 39,538,000 in its <a href=\"https:\/\/www.theepochtimes.com\/opinion\/california-finally-releases-its-latest-annual-financial-report-4272599\" target=\"_blank\" rel=\"noopener\">ACFR in 2020<\/a>, making \u200cit look like things\u200d were level. They are not. The exodus appears to be real, according \u200bto the Golden State\u2019s counties.<\/div>\n<p>The next thing one observes \u2063is that the coronavirus year of July 1,\u2063 2020, to June 30, 2021, did\u2064 not seem to negatively impact the counties.<\/p>\n<div class=\"my-5\">As is usually the trend, the better managed counties, the top eight, did not have much movement in this segment. Likewise, the 39 \u2062bottom counties did \u200bnot move more than four positions, staying pretty much in place, except\u2062 for Lassen\u200d County. When \u200bI\u200b provided the rankings for the year ending June 30, 2020\u2063 in <a href=\"https:\/\/www.theepochtimes.com\/opinion\/how-does-your-countys-finances-compare-to-others-in-california-4533880\" target=\"_blank\" rel=\"noopener\">How Does Your County\u2019s Finances Compare to Others in California?<\/a> from June 15,\u2062 2022,\u200b I used ACFRs from 2018 for Lassen and\u200b Humboldt Counties and 2019 for Tuolumne County. Lassen\u2019s actual <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/orange-county-board-of-supervisors-goes-democrat\/\" title=\"Orange County Board of Supervisors Goes Democrat\">unrestricted net deficit<\/a> for 2020 was \u2062$42,010,954, which means\u200d 2019 was a rough year for\u200b this rural county. This year I\u200c refused to take \u200bsubstitutes \u2064and waited, and \u2064waited, for the release of the actual audited statements.<\/div>\n<p>Humboldt and\u2063 Tuolumne did not move much in the rankings\u200d over the missing years.\u2062 But it shows \u200dyou why it\u2019s critical to receive current data. Financial statements are a management tool, and a lack of fiscal reports reflects a lack\u200c of\u2064 proper administrative management. It pains me to share this embarrassing activity for a state that includes Silicon Valley within its borders.<\/p>\n<p>Let\u2019s discuss\u200d the other four counties that also had significant movements.\u2062 Sonoma County moved up 14 places to 10th place. An increase in total revenues\u200c of $259 million, more than\u200b 90\u200b percent of it from governmental sources related to the pandemic, provided for the decrease in its unrestricted net deficit.<\/p>\n<p>San Joaquin\u2064 County had a similar \u2063story, but also converted $291 \u2064million from restricted to unrestricted, helping to cut its unrestricted net deficit \u2062by nearly one-half, jumping up 15 places.<\/p>\n<p>San Diego County\u2062 increased their restricted net assets by $246 billion, with 83 percent going to a \u200dnew\u200d category titled \u201cHealth and Human Services Agency programs.\u201d But \u2062having a pension\u200d liability increase by $685 million \u2064doesn\u2019t help. The word \u201cpension\u201d is used 229 times in their entire ACFR report.\u200c These two \u2062components make up most of the increase in the county\u2019s unrestricted net deficit, moving it down six places \u2062and out of the top ten.<\/p>\n<p>Stanislaus County saw a\u200c $135 million\u200d increase in liabilities for other post-employment benefits and pension liabilities,\u2062 now owing $732 million, or $1,306 per\u200c resident. This county dropped seven places.<\/p>\n<p>Orange County stayed in the mid-20s after being in\u200c 46th place back in 2010, thanks to its \u200dmassive investment pool losses of some $1.7 billion in 1994. Financial policies for pensions and\u200c other post-employment benefits helped Orange County\u2019s rise in the rankings. \u2064And its ACFR was issued on time.<\/p>\n<p>Orange \u2064County also has minimum qualifications for its auditor-controller. Let\u2019s hope the California\u2063 State Association of Auditor-Controllers\u200c can \u200cconsider implementing the same requirements statewide, step up their game, and \u2064issue their June 30, 2022, and future\u2063 ACFRs on a timely basis. Amateur hour is \u2063over, folks.<\/p>\n<div class=\"my-5\">\n  <em>Views expressed in this article \u2064are opinions of the author and do\u2063 not necessarily reflect the views of The Epoch Times.<\/em>\n<\/div>\n<p> <\/p>\n<h2> What factors contribute to the difficulties faced by counties in releasing their financial \u200creports \u2064on time?<\/h2>\n<p><span>  Oller in ensuring \u2063timely \u2063and accurate \u200bfinancial reporting.\u201d<\/p>\n<p>The situation in \u200bHumboldt County is not unique. Other \u200ccounties\u200d in California have \u200balso faced challenges in releasing their financial reports on time. In fact, the California State Controller&#8217;s Office has identified several counties as being significantly delinquent in submitting\u2062 their reports, including Kings County, \u2063Lassen County,\u200b Mariposa County, \u2064and Modoc County.<\/p>\n<p>So \u200bwhy is it so difficult for\u200d these counties to release their financial reports on time? One reason could\u200d be the \u2062lack of qualified personnel in the auditor-controller&#8217;s office. As mentioned earlier, \u200dthese officials are \u200celected by \u200bthe voters and\u2063 may \u200cnot necessarily have\u200d the accounting \u2063background or expertise required\u2063 for the job. This\u200d can lead to delays and errors in \u2062the financial\u200b reporting \u2063process.<\/p>\n<p>Another reason could be the complexity of the \u2064financial transactions that need to be \u2064accounted\u200d for. Counties have numerous financial activities, such as tax collections, budgeting, and expenditure management. Ensuring that all these transactions are accurately recorded and\u2062 reported can \u2062be a daunting task, especially for counties with limited resources and personnel.<\/p>\n<p>Furthermore, the COVID-19 pandemic has\u200d also played a role in exacerbating the challenges faced by these \u2064counties. The pandemic has disrupted\u200c normal operations and strained resources, making it even more \u2064difficult\u200b to allocate time and \u2063effort to financial reporting.<\/p>\n<p>The consequences of\u200c delayed financial reporting can be significant. It hampers\u200c transparency and accountability in the use \u200bof public funds, making it\u2064 difficult for taxpayers and \u200cother stakeholders \u200bto assess the financial\u2063 health and performance of these counties.\u2062 It\u2064 can also affect the counties&#8217;\u200c ability to obtain financing \u2063or receive grants from state \u200dand federal \u2062agencies.<\/p>\n<p>Addressing these challenges requires a\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-the-southern-border-is-exploding-once-again\/\" title=\"VIDEO: Southern Border Experiencing Another Surge\">multi-faceted \u2063approach<\/a>. Counties need to\u2064 invest in training and capacity-building for their auditor-controller&#8217;s office, ensuring that the elected officials have the necessary skills and knowledge to fulfill their responsibilities. \u2064They also need to allocate \u200dadequate resources\u2062 to improve the efficiency and effectiveness of the financial reporting process.<\/p>\n<p>Collaboration between counties and\u200d state agencies is also crucial. The State Controller&#8217;s Office can provide technical assistance and guidance to counties in \u2063meeting their financial reporting obligations.\u2064 Counties\u200c can also learn from each other and\u2064 share best practices in financial management and reporting.<\/p>\n<p>Ultimately, the timely and accurate release of financial reports is essential \u200dfor ensuring transparency, accountability, and good governance\u2063 in California&#8217;s counties. It is a responsibility\u2062 that \u2062cannot \u200dbe taken lightly, and it\u200b requires the \u200bcollective efforts of elected officials, county administrators, \u200cand state agencies to \u200covercome the challenges and deliver on the public&#8217;s trust.<\/p>\n<p>In the case of Humboldt County, the\u200d arrival of the long-awaited ACFR is a step \u200din \u200bthe\u2063 right direction. \u200dHowever, it serves as a reminder of\u2064 the work that still needs to be\u200b done to improve financial reporting across the \u2062state. The\u200b bean counters may not always \u200bbe in\u200b the spotlight, but their work is crucial to the effective functioning of local government. \u200cIt&#8217;s time to \u2062give them \u2064the support and resources they need to fulfill their vital role.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In most of California&#8217;s counties (54 out of 58), the auditor-controller is elected by voters. These accountants are in charge of managing county finances and recording transactions. Affectionately known as bean counters, they are typically the meticulous individuals behind the scenes that you rarely encounter.<\/p>\n","protected":false},"author":2271,"featured_media":2054488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2054487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2054487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2271"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2054487"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2054487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2054488"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2054487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2054487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2054487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}