Under the California Penal Code, the Los Angeles County Grand Jury is empowered to investigate the fiscal and operational performance activities of County Departments, City governments and Special Districts. It has the authority to engage outside consultants and audit firms to assist in these civil investigations utilizing a total budget of $177,000 for Grand Jury year 1998-1999.
The Audit Committee of the 1998-1999 Grand Jury was formed to select an outside audit firm able to understand and respond quickly and efficiently to the Grand Jury requirements. The firm finally selected would be required to have the experience, trained staff and methodology required to perform a number of financial, performance, and management audits covering the entire spectrum of County government operations, including hospitals, jails, schools, welfare administration, policing, transportation, etc.
The process of selecting an audit firm began in July with the goal of awarding a contract by mid-September 1998. The Committee decided that participants would be limited to six firms who would submit detailed, written proposals for initial evaluation by the Audit Committee. Three finalist would then be invited to make personal presentations to the Committee to ensure mutual understanding of all aspects of their proposal prior to a final selection. Four potential studies were presented to the audit firm for budgetary proposals. When submitted, the total cost for accomplishing all four studies was found to exceed the total annual budget amount allocated by the County Board of Supervisors to the Grand Jury to accomplish this task. However, re-evaluation by the various committees involved resulted in a reduction in the scope of each of the studies, and after constructive negotiations between the Audit Committee and the low bidder, an acceptable level of total expenditures was mutually agreed upon.
The Audit Committee's initial task was to review submitted topics received from all Grand Jury committees, evaluate them on their merits after preparing detailed outlines, and then to seek valid cost estimates from the pre-qualified firms. As a result of this thorough evaluation process, the firm of Harvey Rose Accountancy Corporation was selected and final confirmation was obtained by a vote of the entire Grand Jury. After review by County Counsel, a contract was formally executed on September 20, 1998.
The Audit Committee recommends that the 1999-2000 Grand Jury receive at least a $100,000 increase in its' auditing budget in order to properly fulfill its' role as government's objective, independent watchdog. The ability to adequately fund the hiring of well-known, reputable and experienced professional outside auditing experts is an essential ingredient necessary to ensure successful completion of the Grand Jury's responsibilities and commitments to the citizens of Los Angeles County and their elected Board of Supervisors.