FOR IMMEDIATE RELEASE
April 16, 1996
Contact: Spencer Boise, Foreman
Phone (805) 568-2292

The 1995-96 Santa Barbara County Grand Jury reported today its satisfaction with the past fiscal year’s performance by the independent accounting firm KPMG Peat Marwick LLP.

California law requires the county Board of Supervisors to employ an outside firm to audit the county’s accounts and records annually. The independent auditor is selected by the auditor-controller’s office, the Grand Jury, and the county administrator. The Grand Jury is charged with monitoring the auditor’s work on behalf of the county’s citizens, and to investigate and report on the county’s operations and records.

The Grand Jury inspected the independent auditor’s reports and services for the year, and found them to be in conformance with the contract specifications for the work. Because of the satisfactory performance, the county has exercised its option to renew the auditor’s contract for the current fiscal year.

The Grand Jury also reported that Peat Marwick provided a Management Letter to the county after completing last year’s audit, with observations regarding:

• Need for a disaster recovery plan to include computer system operations. This problem was first reported in 1989 by the Grand Jury, but was not given the priority attention required for resolution.
  
• Federal grants, claims management and certain fixed asset issues needing attention by county officials.

The Grand Jury expressed concern over the continued growth of a $13,436,000 county liability for employee compensated absences, which the county is addressing but has not yet resolved.

The Grand Jury also expressed the need for improved controls in the use of county credit cards by county employees.

Separately, the Grand Jury noted that the auditor-controller’s office responded positively to a recommendation from last year’s Grand Jury to conduct quarterly compliance audits of the county’s investment policy.

The full report is posted on the Grand Jury’s World Wide Web page. Copies of the report are also available at the Superior Court Jury Services office at 1100 Anacapa Street, Santa Barbara, CA 93101, or call 568-3139.