"It is very disappointing that the SCO chose to wait until after the election to release the report because even in its multiply-revised form the report and the information it provides would have been very useful to voters in their decision. "

 

Humboldt Auditor Controller Karen Paz Dominguez issued an update about the State Controller's office's investigation about the 2019-2020 FTR. The Auditor Controller said she will honor the SCO request for confidentiality until the final report is issued, and will issue a further public comment at that time."

Auditor Controller:

On Wednesday, June 15, 2022, the Office of the Auditor-Controller attended an exit conference with the State Controller’s Office and the Humboldt County Administrative Office. 

In attendance were Auditor-Controller Karen Paz Domínguez, the Acting Assistant Auditor-Controller Jim Hussey, the County Administrative Officer Elishia Hayes, the Assistant County Administrative Officer,Tabatha Miller, Deputy County Administrative Officer Sean Quincey, and five representatives from the State Controller’s Office (bureau chief, audit manager, audit lead, audit staff).   Discussed at the meeting were the results of the SCO’s month-long investigation into the County’s internal controls and causes of untimely filing of the 19/20 Financial Transactions Report (FTR). The month-long investigation began in December 2021, covered the 19/20 and 20/21 fiscal years, and ended in early January 2022. Today, six months after the SCO’s completion of field work, the SCO officially communicated their findings with the County in draft report form. 

The County now has 10 days to respond. Once the responses are delivered to the SCO, they will need additional time to publish their final report which will be made available to the public.   The Office of the Auditor-Controller became aware of the potential findings of the report in March 2022 and the findings reported today did not differ from the potential findings communicated in March 2022.  

During the exit conference, SCO representatives were asked why their draft report was held up for the past several months. While no clear and definitive response was provided to the County, the SCO referenced “things at the County”, the SCO’s “audit backlog”, and “the review up the chain” as causes for their delay in issuing their investigation report.   

The County has been reminded that the SCO’s draft report is confidential and is not to be distributed. This update is provided because many Humboldt County residents and media reporters have expressed great interest in the SCO’s findings.   For reasons which have not been explained, the State Controller, Betty Yee, directed the Attorney General to file a lawsuit against the County of Humboldt and Auditor-Controller Karen Paz Domínguez for the untimely filing of the 19/20 and 20/21 FTR on May 2, 2022, a month and a half before communicating the SCO’s findings about why the County was unable to timely file the 19/20 and 20/21 FTR.    It is very disappointing that the SCO chose to wait until after the election to release the report because even in its multiply-revised form the report and the information it provides would have been very useful to voters in their decision.  The A-C office will honor the SCO request for confidentiality until the final report is issued, and will issue a further public comment at that time.