PROGRAM IV: GENERAL GOVERNMENT SERVICESbos.ocgov.com/finance/2010FN/p4_all.pdfCounty of Orange 317 FY 2009-2010 Annual Budget GENERAL GOVERNMENT SERVICES 002 - Assessor FY 2008-09

County of Orange 315FY 2009-2010 Annual Budget

GENERAL GOVERNMENT SERVICES PROGRAM IV: GENERAL GOVERNMENT SERVICES

PROGRAM IV: GENERAL GOVERNMENT SERVICES

Summary of Appropriations and Revenues

FY 2009-2010 FY 2009-2010 FY 2009-2010

Agency Agency Name Appropriations Revenue Net County Cost

002 Assessor 33,495,067 20,000 33,475,067

003 Auditor-Controller 15,720,856 6,208,854 9,512,002

006 Board of Supervisors - 1st District 941,750 0 941,750

007 Board of Supervisors - 2nd District 902,986 0 902,986

008 Board of Supervisors - 3rd District 844,990 0 844,990

009 Board of Supervisors - 4th District 883,975 0 883,975

010 Board of Supervisors - 5th District 910,624 0 910,624

011 Clerk of the Board 3,307,844 145,849 3,161,995

014 CAPS Program 26,952,709 9,880,253 17,072,456

017 County Executive Office 17,560,772 2,040,408 15,520,364

020 Tax and Revenue Anticipation Notes 2,617,119 1,100,000 1,517,119

025 County Counsel 11,896,230 2,452,000 9,444,230

031 Registrar of Voters 11,305,185 537,500 10,767,685

050 Office Of The Performance Audit Director 725,330 0 725,330

054 Human Resources Department 3,830,051 39,000 3,791,051

059 Clerk-Recorder 10,991,908 11,991,908 (1,000,000)

074 Treasurer-Tax Collector 14,556,907 12,107,125 2,449,782

079 Internal Audit 2,614,933 31,880 2,583,053

GENERAL FUND SUBTOTAL 160,059,236 46,554,777 113,504,459

107 Remittance Processing Equipment Replacement 172,690 172,690 0

127 Property Tax Admin State Grant 1,276,676 1,276,676 0

12D Clerk Recorder's Special Revenue Fund 8,861,910 8,861,910 0

12P Assessor Property Characteristics Revenue 60,000 60,000 0

OTHER FUNDS SUBTOTAL 10,371,276 10,371,276 0

TOTAL - GENERAL GOVERNMENT SERVICES 170,430,512 56,926,053 113,504,459

002 - Assessor GENERAL GOVERNMENT SERVICES

316 County of OrangeFY 2009-2010 Annual Budget

002 - ASSESSOR

002 - Assessor

Operational Summary

Mission:

To serve the citizens of Orange County by valuing all legallyassessable property with uniformity and impartiality, pro-ducing property tax assessment rolls in accordance with thelaws of the State of California, and helping property ownersto understand their property valuations.

Strategic Goals:■ Identify and properly value all taxable property in Orange County.

■ Make property valuation information more accessible and easier to understand.Enhance operational efficiency and pro-ductivity through the implementation of new technology, policies and procedures.

■ Encourage employee development by providing access to relevant training opportunities.

At a Glance:

Total FY 2008-2009 Current Modified Budget: 34,527,307

Total FY 2008-2009 Actual Expenditure + Encumbrance: 32,943,476

Total Final FY 2009-2010 33,495,067

Percent of County General Fund: 1.19%

Total Employees: 337.00

Key Outcome Indicators:

2008 Business Plan 2009 Business Plan

Performance Measure Results Target How are we doing?

VALUE ALL TAXABLE PROPERTY IN ORANGE COUNTY.What: Fulfills the Assessor's Constitutional mandates.Why: Implements the provisions of Proposition 13 and other property tax laws.

Valued 888,770 real property parcels and 169,621 business/personal property accounts.

Continue to value all taxable property in the County, an estimated 893,000 real property parcels and 165,000 business and personal property accounts.

We continue to respond to market dynamics and trends that change significantly from year to year, revisions in property tax laws, and a workload that is increasing and a workload mix that is shifting continually.

PUBLISH THE SECURED AND UNSECURED ASSESSMENT ROLLS OF VALUE EVERY JULY.What: Fulfills the Assessor's Constitutional mandates.Why: Establishes the basis for property tax assessments that fund schools and local government services.

Published the secured and unsecured assessment rolls in July 2008.

Publish the secured and unsecured assessment rolls in July 2009.

We are in the process of valuing all taxable property in the County for the FY 2009-10 assessment rolls of value.

IMPLEMENT HOMEOWNER, VETERAN & INSTITUTIONAL EXEMPTIONS FOR ELIGIBLE INDIVIDUALS AND ORGANIZATIONS.What: Limits or reduces taxable value, as mandated by the State Constitution.Why: Qualifying individuals and organizations receive the tax-saving benefits of these exemptions.

More than 489,000 Homeowners, Veterans and Institutional exemptions were enrolled.

Implement exemptions in accordance with property tax laws.

We process claims and application forms on a continuous basis.


GENERAL GOVERNMENT SERVICES 002 - Assessor

FY 2008-09 Key Project Accomplishments:■ $424.0 billion total assessed value

■ 888,770 parcels of real estate.

■ 169,621 unsecured assessments

■ 48,000 reassessable transfers

■ 27,800 new construction events

■ 170,000 parcels reviewed for taxable value, 147,000 received temporary value reduction

■ 7,537 new parcels created and mapped

■ 489,714 exemptions enrolled

■ 16,519 parcels are wholly exempt

■ 24.300 business property statements filed electronically

■ Responded to approximately 89,000 telephone inquiries and 24,000 walk in customers as public service support

■ Assessor department’s website has access to a wide range of information and forms.

■ Strategic investment in technology and a strong commitment to staff development, a relatively flat project managementstructure and empowered project work teams have significantly increased department productivity by allowing staff towork more effectively each year. Staff productivity as measured by the number of assessed parcel per authorized positionhas increased over 69% since 1975. The number of real estate parcel has grown 90% since 1975, from 465,692 parcels to888,770 parcels in 2008. During the same period, the Assessor’s staffing level has only increased 15.8% from 291 autho-rized positions to 337. If department had not realized productivity gains, approximately 235 additional positions wouldhave been required to keep pace with the workload.

APPLY TAXABLE VALUE RESTRICTIONS ADOPTED BY CALIFORNIA VOTERS.What: Restricts taxable value based on qualifying events, such as declines in value.Why: Implements Prop. 13 and other property tax laws that restrict the taxable value of property.

Applied taxable value restrictions to eligible parcels in accordance with property tax laws. Value may be restricted if property declines in value (Prop. 8, 1979), is transferred between parent and child, or is purchased as a replacement residence by a senior citizen or disabled property owner.

Continue to apply taxable value restrictions to eligible properties in accordance with property tax laws.

We process claims and application forms on a continuous basis, and evaluate parcels for Prop. 8 conditions annually.

CONTINUE TO PRODUCE LOCAL ASSESSMENT ROLLS THAT MEET LEGAL QUALITY STANDARDS.What: The SBE conducts periodic surveys to determine if assessment rolls meet legal quality standards.Why: Reduces appeals and related costs, provides uniformity statewide, builds confidence in the system.

In the most recent survey conducted by the State Board of Equalization (SBE), Orange County's local assessment rolls met legal quality standards established by Government Code Sections 15640 and 15642. The minimum legal quality rating is 95.0%, and Orange County's rating is 99.9%.

Continue to produce assessment rolls in accordance with property tax laws and exceed the minimum legal quality rating of 95.0%. The SBE is planning to initiate a survey for the Assessor Department in FY 2009-10.

The Orange County Assessor and staff continually monitor the status of property tax laws and state rules. Property assessment practice is modified to implement changes in the law.

Key Outcome Indicators: (Continued)





■ In 2007, an e-SDR component was added to the existing Standard Data Record (SDR) for small and individual filers. TheSDR project is a statewide on-line system to allow businesses to file property statements electronically. This effort was ledby the Orange County Assessor and was developed and implemented in 2005 targeting large companies with multiplelocations throughout California. Overall, 69% of all 58 counties now provide some automation to the filing for 95% ofBusiness Property Statements filed statewide through SDR and e-SDR. This project is the first major development andoperation effort done by local governments in the State of California.

■ The Assessment Tax System (ATS) is used by the Orange County Assessor and other property tax administration depart-ments to prepare, deliver, and support property assessments and tax collections. It is a multi-phase mainframe applica-tion implemented by the Assessor Department in 1987, 22 years ago. The system is now operating on outdated softwareplatform that has only very limited support. A complete re-engineering of the Assessor segment of the ATS is underwayand is a phased multi-year project. It includes program coding, migration to a new hardware platform, and a new data-base structure. This will provide appraisers with an integrated source of information. Parcel maps, aerial photos, digitalphotos of improvements, deeds and comparable sales information, relevant laws and rules will all be accessible through anew user interface. Significant progress has been made though 2008-09. The coding of the unsecured roll is about 70%complete, the new user interface framework is about 85% complete and the mockups for ownership and transfer for thesecured roll is in progress. Funding of this project and keeping the project on schedule is critical through 2010-11.

Assessment Of Business Property - Audits and appraisesbusiness personal property and assesses all trade fixtures,leased equipment, boats and aircraft with taxable situs inOrange County.

Assessment Of Real Property - Appraises real property,new construction and reassessable changes in ownership,and maintains records on all real property parcels includingresidential, commercial, rural, industrial and special useproperties.

Roll Support - Reviews and maintains recorded documentsevidencing a change in ownership of real property, preparesAssessor parcel maps and processes Homeowner, Veteranand Institutional exemptions.

Quality Assurance - Provides appraisal methodologies,procedures, training and quality control for roll production,audit and appraisal staff.

Computer Systems - Provides programming and data pro-cessing services, system security and technical services tosupport the development of the assessment rolls of value.

Management Services - Provides fiscal management, pro-cess integration, contract administration, procurement andpersonnel services, general department administration andpublic service support to the public and other governmentagencies.

Organizational Summary

Roll

Support

Quality

Assurance

Computer

Systems

Real

Property

Management

Services

Business

Property

Assessor

Ten Year Staffing Trend:


GENERAL GOVERNMENT SERVICES 002 - Assessor

Ten Year Staffing Trend Highlights:■ Twenty-one (21) positions were deleted in FY 1995-96

due to the County bankruptcy. Extra help and overtimelabor has been used as appropriate to complete thework.

■ Ten (10) positions were added back in January 1999 toaccommodate the increased workload base, and to helpwith the annual workload increases. The departmentstill had a significant shortage in permanent laborhours.

■ Five (5) unfunded limited-term positions were added inFY 2000-01 to manage vacancies and better accommo-date recruitment timeframes and to meet a larger work-load. One (1) full-time regular position was added mid-year FY 2000-01.

■ Five (5) extra-help positions were converted to regularpositions in FY 2002-03 to meet a growing workloadand to get the department back to the 1994 staffinglevel. The department continues to use extra-help andovertime labor to manage seasonal workload fluctua-tions and complete the significant workload increasethat has occurred since 1994. The staffing level alsoallowed the department to apply for the State-CountyProperty Tax Administration Grant Program (AB-589).

■ RETIREMENTS: A major challenge for the departmentis the loss of more than 1,4200 people-years to retire-ment over the past five (5) years. In 2008-09 alone, thedepartment experienced a major loss of 9 experiencedstaff due to retirement. In addition, many of the depart-

ment's remaining professional staff are past both theirage and years for retirement eligibility requirements.Therefore, this is an ongoing challenge related to hiring,training, quality of product, and the production of theannual rolls for many years.

■ The County received approximately $13.6 million fromthe State-County Property Tax Administration GrantProgram (AB 589) in FY 2003-04 and FY 2004-05 tosupport and enhance property tax administration oper-ations. Limited Term positions funded by the grant arebudgeted in Agency 127. This Grant was discontinuedby the State since FY 2005-06. Some portion of theexisting carry-over grant funds will be used in FY 2009-10 to continue grant related work. This program has aMaintenance of Effort (MOE) requirement that is tied toa base of 337 positions for the Assessor Department.

Budget Summary

Plan for Support of the County's Strategic Priorities:

The Assessor Department recognizes the County's StrategicPriorities and will continue to operate in concert with thosepriorities to the extent they do not impact with the Depart-ment's constitutional mandates to produce valuation rollsand provide valuation services to Orange County's propertyowners and businesses.

(1) Amounts include prior year expenditure and exclude current year encumbrance. Therefore, the totals listed above may not match Total FY 2008-09 Actual Expen-diture + Encumbrance included in the "At a Glance" section.

Detailed budget by expense category and by activity is presented for agency: Assessor in the Appendix on page A10

Final Budget History:

FY 2008-2009 FY 2008-2009 Change from FY 2008-2009

FY 2007-2008 Budget Actual Exp/Rev(1) FY 2009-2010 Budget

Sources and Uses Actual Exp/Rev As of 6/30/09 As of 6/30/09 Final Budget Amount Percent

Total Positions 337 337 337 337 0 0.00

Total Revenues 9,343,996 7,546,625 5,500,050 20,000 (7,526,625) -99.73

Total Requirements 37,415,779 34,527,307 33,068,184 33,495,067 (1,032,240) -2.99

Net County Cost 28,071,784 26,980,682 27,568,134 33,475,067 6,494,385 24.07



Budget Units Under Agency Control:

No. Agency NameAssessment Of

Business PropertyAssessment Of Real

Property Roll Support Quality Assurance Computer SystemsManagement

Services Total

002 Assessor 6,269,724 9,559,651 9,200,804 586,106 2,151,963 5,726,819 33,498,067

127 Property Tax Admin State Grant

0 0 0 0 0 1,276,676 1,276,676

12P Assessor Property Characteristics Revenue

0 0 0 0 0 60,000 60,000

Total 6,269,724 9,559,651 9,200,804 586,106 2,151,963 7,063,495 34,834,743


GENERAL GOVERNMENT SERVICES 127 - Property Tax Admin State Grant

127 - PROPERTY TAX ADMIN STATE GRANT

127 - Property Tax Admin State Grant

Operational Summary

Description:

The State-County Property Tax Administration State GrantProgram (AB-589) was implemented by the legislature onJanuary 1, 2002. The County received approximately $13.6million from the State-County Property Tax AdministrationGrant Program (AB 589) in FY 2003-04 and FY 2004-05 tohelp maintain efficient property tax administration, inaccordance with legislated guidelines and restrictions. TheGovernor eliminated the funding for AB 589 since FY 2005-06. This program has a Maintenance of Effort (MOE)requirement that is tied to a base of 337 positions for theAssessor Department.

The grant is subject to the terms defined in the Revenue andTaxation Code Section 95.35 and the contract agreementsexecuted between the County of Orange, Board of Supervi-sors and the State Department of Finance. All grant fundsand interest earned thereupon must be deposited in the trust

fund to be used in accordance with the grant. Carry-overfunds from FY 2003-04 and FY 2004-05 including interestearned are expected to last through FY 2010-11, and arebeing used to continue the work approved in the contractwith the State. The Assessor has maintained due diligence inmanaging the grant funds and has exercised caution inexpending the funds over the past five years. As a result thedepartment is expected to have limited funds to supportsome of the Grant related work through FY 2010-11.

Strategic Goals:■ The Assessor is using the State-County Property Tax Administration Grant (AB-589) to support the continuation of the

Real Property Field Review and the Assessment Tax System (ATS) Re-Engineering (Assessor's segment). In addition, therequested budget also supports some business property mandatory and non-mandatory audit backlogs, increased rollproduction and/or appeal workload, and a small share of the statewide Standard Data Record (SDR and e-SDR) develop-ment work.

■ As the amount of funds available in the fund continues to decrease, a smaller number of limited term staff will be sup-ported by Fund 127 in 2009-10 and 2010-11.

At a Glance:



Total Final FY 2009-2010 1,276,676

Percent of County General Fund: N/A





PERFORM REAL PROPERTY FIELD REVIEW.What: Physical review of properties to verify, update and correct property records.Why: Updated and corrected property records ensure accurate assessment as required by law.

Anticipated to complete 320,000 cumulative property reviews.

Continue to perform Real Property Field Reviews. Expected number of property to be reviewed: 30,000.

The project is moving ahead on schedule and within the funding as available.

127 - Property Tax Admin State Grant GENERAL GOVERNMENT SERVICES


.

Ten Year Staffing Trend Highlights:■ All positions funded by the grant are limited-term posi-

tions.

Budget Summary


This budget is consistent with the priorities and operationalplans contained in the Assessor Department’s Business Planand Strategic Financial Plan. The Property Tax Administra-tion State Grant will be administered in accordance with theterms and conditions of the grant.


Detailed budget by expense category and by activity is presented for agency: Property Tax Admin State Grant in the Appendix on page A123






Total Positions 27 14 14 14 0 0.00

Total Revenues 3,020,128 1,582,416 1,632,523 1,276,676 (305,740) -19.32

Total Requirements 1,937,890 1,696,416 1,521,626 1,276,676 (419,740) -24.74

Balance 1,082,238 (114,000) 110,897 0 114,000 -100.00


GENERAL GOVERNMENT SERVICES 12P - Assessor Property Characteristics Revenue

12P - ASSESSOR PROPERTY CHARACTERISTICS REVENUE

12P - Assessor Property Characteristics Revenue

Operational Summary

Description:

The Assessor's Property Characteristics Revenue Fund(Fund 12P) was created in FY 2005-06 in compliance withthe implementation of GASB 34. In coordination with theAuditor Controller Department, the Assessor Departmentrequested establishment of Fund 12P, closure of Assessor'sProperty Characteristics Trust Fund 300-352 and requestedtransfer of all funds in Trust Fund 300-352 to Fund/Agency12P - Assessor's Property Characteristics Revenue Fund.

This fund is subject to the Revenue and Taxation Code Sec-tion 408.3 and will be used to support, maintain, improve,and provide creation, retention, automation, and retrieval ofassessor information. Accordingly, part of these funds maybe used to purchase system tools (e.g. computers and serv-ers), for collecting and maintaining assessor informationdata. There is no expiration date for the fund. Interestearned from the fund will be deposited in County GeneralFund based on Management decision.

Assessor Property Characteristics Revenue - This fund issubject to the Revenue and Taxation Code Section 408.3 andcan only be used to support, maintain, improve, and providecreation, retention, automation, and retrieval of assessorinformation. The source of revenue is the sale of propertycharacteristics produced by the Assessor Department. In2008-09, portion of the funds available was used to supportre-engineering of the ATS segment of the Assessment TaxSystem (ATS).

Budget Summary


This budget is consistent with the priorities and operationalplans contained in the Assessor Department’s Business Planand Strategic Financial Plan. Expenditures incurred in thisfund will follow the guidelines set forth in Revenue and Tax-ation Code Section 408.3.


Detailed budget by expense category and by activity is presented for agency: Assessor Property Characteristics Revenue in the Appendix on page A133

At a Glance:

Total FY 2008-2009 Current Modified Budget: 600,000

Total FY 2008-2009 Actual Expenditure + Encumbrance: 118,442

Total Final FY 2009-2010 60,000







Total Revenues 183,710 600,000 578,717 60,000 (540,000) -90.00

Total Requirements 102,616 600,000 118,442 60,000 (540,000) -90.00

Balance 81,094 0 460,275 0 0 -100.00

003 - Auditor-Controller GENERAL GOVERNMENT SERVICES


003 - AUDITOR-CONTROLLER

003 - Auditor-Controller

Operational Summary

Mission:

To promote public oversight, provide accountability, andsupport financial decision-making for the County.

Strategic Goals:■ To assist the County in controlling financial risk.

■ To promote accountability by developing and enforcing systems of accounting controls.To anticipate and satisfy our stake-holders' and clients' needs for financial services and reliable information.

■ To increase Countywide organizational effectiveness by making the appropriate investments in our staff and technology.

At a Glance:



Total Final FY 2009-2010 15,720,856






PERFORM THE REQUIRED AUDITS OF THE TREASURY AND ISSUE THE REQUIRED REPORTS TIMELY.What: Quarterly and annual audits of the County Treasury and monitoring the County investment portfolios.Why: Provide assurance the cash and investments on hand are equal to those reported by the Treasurer.

Reviews of the Treasury were issued for all quarters, and an annual audit was performed. Special circumstances, due to valuation issues with the County's investment in a Structured Investment Vehicle (SIV), created a delay in the issuance of the annual audit report and the 3/31/08 quarterly review.

Perform audits of the Treasury for the quarters ending 6/30/09, 9/30/09, and 3/31/10 and the annual audit for the year ended 12/31/09 and submit the required reports on time.

Reviews have been submitted timely for 2008-09. Reports summarizing the results of daily compliance monitoring of the Investment Pool have been prepared for each month.

PRODUCE QUARTERLY SETS OF FRET REPORTS FOR REVIEW BY DEPARTMENT FISCAL MANAGERS.What: Quarterly reporting of financial information, revenue and expenditures.Why: Provide data to departments/agencies on a regular basis to monitor budgetary standing.

Quarterly sets of FRET reports were produced. FRET II was not implemented due to CAPS+ resource allocations.

All resources will be directed to the CAPS+ project for the development of the financial reporting and implementation. Current FRET reporting will continue and FRET II will be deferred.

FRET will continue to operate until the CAPS+ Finance & Purchasing System is implemented at which time FRET II will either be included as part of the Phase II project or replaced with the CGI Performance Budget module.

HAVE THE AUDITOR-CONTROLLER REPRESENTED ON SPECIFIC OVERSIGHT COMMITTEES.What: Auditor-Controller staff will attend 100% of these committee meetings.Why: Ensures the Auditor-Controller provides full support for these oversight committees.

Nearly all meetings were attended by the Auditor Controller with the balance being attended by senior AC staff.

100% of all meetings will be attended by Auditor-Controller staff.

The Auditor-Controller continues to provide full support for these oversight committees.


GENERAL GOVERNMENT SERVICES 003 - Auditor-Controller

RECEIVE A CERTIFIED OPINION ON COMPLIANCE WITH LAWS, REGULATIONS, AND CONTRACTS/GRANTS PROVISIONS.What: Measures compliance with requirements in administering Federal programs.Why: Provides assurance that there are no material weaknesses in controls affecting compliance.

The County received an unqualified opinion in all areas covered by the Single Audit Report for FY 2006-07.

Receive a certified opinion in a timely manner for FY 2007-08 and FY 2008-09.

The County received unqualified opinions in all accounting related areas covered by the Single Audit Report for the past several years, with no material weaknesses in accounting controls.

RECEIVE A RATING OF AT LEAST 95% IN OVERALL SATISFACTION IN BIENNIAL SATELLITE ACCOUNTING SURVEY.What: Measures client satisfaction with services of the Auditor-Controller Satellite accounting sections.Why: Provides valuable feedback to meet and exceed the expectations of County clients.

The department exceeded its rating goal in the survey of its satellite accounting sections, sent to County departments and agencies in 2008. 96% of the clients were "Very Satisfied" to "Satisfied" with the department's services.

We plan to continue conducting our biennial surveys, alternating between central and satellite accounting divisions, and meet or exceed the rating goal.

The department continues to receive high satisfaction ratings for its satellite accounting teams.

RECEIVE A RATING OF AT LEAST 90% IN OVERALL SATISFACTION IN THE ANNUAL SURVEY OF COUNTY VENDORS.What: The survey measures vendors' satisfaction with services provided.Why: The survey results and feedback are used to meet and exceed the expectations of County vendors.

The vendor survey resulted in an overall rating of 92% being "Very Satisfied" or "Satisfied" with the County's payment processing services.

There will be a major change to business processes and systems when the new CAPS+ system implementation is completed in 2009. We will strive to achieve a 90% overall satisfaction rating despite the challenges ahead.

The overall satisfaction rating increased to 92%, while courtesy continued to rate high at 98%. Responsiveness increased to a 91% rating, while Timeliness jumped 8% to an 84% satisfaction rating.

RECEIVE AT LEAST 90% IN OVERALL SATISFACTION IN THE ANNUAL CLIENT SURVEY OF THE A-C IT UNIT.What: Measures client satisfaction with the quality of information and service provided by the CAPS systemWhy: To meet and exceed expectations of County clients.

The department exceeded its rating goal in the survey of its IT division in 2008. 95% of the CAPS system users in 2008 were "Very Satisfied" to "Satisfied" with the department's services provided by the CAPS system and the level of service provided by staff.

We plan to continue conducting our surveys, and to meet or exceed the rating goal.

The department continues to receive high satisfaction ratings for the quality of information provided by the CAPS systems and the level of services provided by staff.

MEET ALL BIWEEKLY PAYROLL DEADLINES FOR ALL 26 PAY PERIODS.What: Measures ability to meet biweekly County payroll deadlines.Why: To maintain the financial well being of employees.

The biweekly payroll deadline was met for all pay periods in FY 2007-08.

The department expects to successfully complete all payroll cycles and meet all payroll deadlines for the year.

Despite the many complex terms and conditions required by various MOUs for over 20,000 employees, the computation and issuance of the $72 million biweekly payroll has been met for each pay period.

MEET ALL DEPARTMENT/AGENCY REQUESTS TO ROLLOUT VTI.What: Measures department requests to use VTI and the ability to roll out VTI to those organizations.Why: Manual payroll processing is labor intensive, time consuming, and prone to errors.

98% of the users in 2008 utilizing VTI were "Very Satisfied" to "Satisfied" with the system. Additional changes have been implemented for the Probation Department as we work towards continued rollout.

Complete rollout of VTI in Probation Department. Once Probation is fully operational a resurvey of departments on outcome measures will be taken.

VTI has been rolled out to all 25 agencies that have requested it.






FY 2008-09 Key Project Accomplishments:■ Maintained appropriation control over the County's $6.6 billion budget.

■ Successfully allocated $6.4 billion in property taxes.

■ Participated in the oversight of the County's $5.7 billion investment pool.

■ The CAPS+ Finance/Purchasing System was implemented on time, on scope and under budget.

■ The CAPS+ HR/Payroll fit analysis was completed in March. An upgrade contract was negotiated and the final price was25% below original estimates.

■ A vendor was selected for the Property Tax Management System upgrade and development is underway.

■ Provided fiscal oversight over $7 billion of assets in the County Treasury by auditing and reviewing the Treasury andthrough compliance monitoring of the investment pools.

■ Received the GFOA Certificate of Achievement for Excellence in Financial Reporting.

■ Received fifth consecutive Award for Outstanding Achievement in Popular Annual Financial Reporting from GFOA.

■ Supported the Countywide roll out of the Training Partner application, which has facilitated enrollment and scheduling ofCAPS+ training courses through the CAPS+ Learning Center.

EFFICIENCY MEASURES OF TRANSACTION COST.What: Measures average transaction cost per invoice in total direct costs paid in Central Claims.Why: To determine the cost for processing invoices and impact of increased workflow and decentralization.

The average transaction cost for FY 07-08 was $8.52 per invoice in total direct costs for each invoice paid in Central Claims.

Compute the direct incremental costs associated with vendor invoice payment processing in Central Claims on a per invoice basis.

The cost of processing an invoice is in line with expectations. An increase between 5% and 10% is expected due to normal increases in salary, benefits, and fixed costs combined with a decrease in invoices processed due to budget constraints and the Court's separation from the County's process.





Central OperationsSatellite Accounting

Operations

Auditor-Controller

General AccountingClaims & DisbursingFinancial Reporting & Accounts ReceivableProperty TaxCost, Revenue & Budget

CAPS Program

Management Office

Information Technology

Accounting SystemsEmerging Systems/TechnologyPayroll Support

Administration

SSAHCAOCPWOCWROCCRJWACEO/Public Finance

Internal Audit & Staff

Services

CAPS + Implementation

Project



Central Operations - This division provides the coreaccounting activities required of the Auditor-Controllerwhich benefit the County as a whole, including: providingpayroll and claims processing for all County departments;Accounts Receivable functions for many County depart-ments; Property Tax section which calculates, bills, collects,and distributes property taxes; Cost, Revenue and BudgetSection which prepares the County's annual CountywideCost Allocation Plan (CWCAP) that is utilized for cost reim-bursement claiming purposes by many County depart-ments; and preparation of the County's annual financialstatements. With the exception of Accounts Receivable and aportion of Financial Reporting, which is cost-applied to cli-ent departments, the core services provided by the Account-ing Operations and Reporting division are financed bygeneral-purpose revenues of the General Fund.

Satellite Accounting Operations - This division supportsseven County agencies/departments by providing outsta-tioned specialized accounting/financial services. The outsta-tioned agency/department accounting support sections areentirely funded by their host agencies almost entirelythrough outside revenue sources. Examples of these special-ized services are the performance of accounting functionssuch as reimbursement claiming, financial reporting,accounts receivable, accounts payable, payroll, job costaccounting, grant accounting, special information reportsfor management decision making, providing consultation onspecial projects, and determining strategies to accomplishbusiness objectives.

CAPS Program Management Office - CAPS Program Man-agement Office provides administrative support for theCounty Accounting and Personnel System (CAPS). Thisfunction is assigned to the Auditor-Controller but representsthe interests of all owner organizations: CEO/IT, CEO/Finance, Human Resources Department, and the Auditor-Controller.

Executive Management - This section includes the execu-tive management team that provides leadership and direc-tion for the department. It consists of the Auditor-Controller,Senior Director, and their secretaries.

Information Technology - The Information Technologydivision is responsible for the implementation, maintenanceand any upgrades of the County's central accounting andfinancial systems, payroll system, property tax managementsystem as well as the development of other related applica-tions such as VTI (Virtual Timecard Interface), Paystub Por-tal, Training Partner and ERMI (Electronic Report MediaInterchange).

Administration - This division includes human resources,purchasing, budget management, and administrative sup-port. This division provides central administrative supportto the rest of the department.

Internal Audit & Staff Services - A major function of theInternal Audit Unit is performing the Auditor-Controller'slegally mandated audits. These mandates include quarterlyreviews and an annual audit of the Treasury's Statement ofAssets as well as a biennial audit of the Probation Depart-ment's financial statements. Other legal mandates includethe monitoring of Special District financial statements, andinvestigation of cash losses reported by County Manage-ment. The Staff Services section provides professionalaccounting support to areas of the department that requesttemporary assistance.

CAPS+ Implementation Project - CAPS+ team membersare responsible for the upgrade implementation of theCounty Accounting and Personnel System (CAPS). Whenfully implemented a number of core County business pro-cesses will be re-engineered and many related County poli-cies and procedures will be changed to improve the mannerin which the County manages its finances and conducts itsprocurements.




Ten Year Staffing Trend Highlights:■ FY 00/01 - Added 26 positions that were transferred

from HCA with no NCC effect. Added 1 Limited Termposition for GASB 34 implementation. Eliminated 10positions that were transferred to CEO/HR with no NCCeffect. Eliminated 1 position from Central Office.

■ FY 00/01 Mid Year Adjustments - In November 2000,added 2 Limited Term positions for GASB 34 imple-mentation, added 1 HR manager, added 1 Systems Ana-lyst for ATS, added 1 Limited Term for DA/FamilySupport study, deleted 2 positions in SSA AccountingServices. In February 2001, added 3 positions due toSystems reorganization. In May 2001, deleted 1 LimitedTerm DA/FS position, added 1 position in PF&RDAccounting for Dana Point leases. Base budget of 396positions.

■ FY 01/02 - Added 1 position in General Ledger, added 1Limited Term position in Information Technology forthe CAPS upgrade.

■ FY 01/02 Mid Year Adjustments - Added 1 position inCSA Accounting for the Area Agency on Aging, added 2positions in PF&RD Accounting for Dana Point leases,added 1 position to HCA Accounting for Medi-CalAdministrative Activity/Targeted Case Management,and added 1 position transferred to SSA Accountingfrom SSA for a collection officer. Base budget of 403positions.

■ FY 02/03 - Added 1 Sr. Systems Programmer/Analyst inthe Information Technology division.

■ FY 02/03 Mid Year Adjustment - Added 1 Limited TermSr. Accountant/Auditor II to Information Technology tosupport CAPS fit analysis and CAPS Upgrade. Base bud-get of 405 positions.

■ FY 03/04 - Added 1 Sr. Accountant/Auditor I and 1Accounting Assistant II to Planning and DevelopmentServices Department Accounting and added 2 Account-ing Assistant II positions to HCA Accounting (convert-ing 2 extra help positions to regular status).

■ FY 03/04 Mid Year Adjustments - Added 3 SeniorAccounting Assistants, transferred from RDMD toRDMD Accounting, deleted 6 vacant Accounting Assis-tant II positions from SSA Accounting, deleted 3 vacantAccounting Assistant II, 2 vacant Office Assistants and 1vacant Office Technician from HCA Accounting/CCS.Base budget is 400 positions.

■ FY 04/05 - Added 3 Accounting Assistant II positionsand 1 Accounting Office Supervisor, transferred fromSSA to SSA Accounting. Added 1 Senior Accountant/Auditor II in Information Technology, effective January1, 2005.

■ FY 04/05 Mid Year Adjustment - Deleted 1 vacant, Lim-ited Term Accounting Assistant II from HCA Account-ing. Base budget is 404 positions.

■ FY 05/06 - Added 2 Systems Programmer/Analyst posi-tions in Information Technology; added 1 AccountingTechnician in JWA Accounting; added 1 AccountingTechnician in RDMD Accounting/Santa Ana River;added 1 Accountant/Auditor II in RDMD Accounting/Dana Point; added 1 Accountant/Auditor II and 1Administrative Manager in RDMD Accounting/Water-shed.

■ FY 05/06 Mid Year Adjustments - Added 1 SeniorAccountant-Auditor I position, transferred from RDMDto RDMD Accounting; added 1 Accounting Technicianposition in General Ledger Unit; deleted 1 AccountingAssistant II, 2 Office Assistants, and 1 Utility Worker/Driver positions from SSA Accounting. Base budget is409 positions.

■ FY 06/07 Mid Year Adjustments - Added 1 Limited TermAdministrative Manager III, 3 Limited Term Adminis-trative Manager II, and 2 Limited Term AdministrativeManager I for CAPS+ Implementation project. Basebudget is 415 positions.

■ FY 07/08 - Added 2 positions for Internal Audit Unit.Added 4 Limited Term Admin Manager II positions and1 Limited Term Admin Manager I position for CAPSUpgrade.

■ FY 07/08 Mid Year Adjustments - Deleted 1 LimitedTerm Accounting Assistant II position in HCA Account-ing. Added 3 Limited Term Admin Manager II positionsfor CAPS+. Added 1 Sr. Accountant Auditor position inRDMD Accounting. Base budget is 425 positions.

■ FY 08/09 - Added 1 Sr Programmer Analyst in the Infor-mation Technology division.

■ FY 08/09 Mid Year Adjustments - Transferred 1Accounting Office Supervisor I and 1 Senior AccountingAssistant to OC Community Resources Accounting fromOC Public Works. Transferred 1 Accounting OfficeSupervisor II and 2 Accounting Specialists to OC Com-munity Resources Accounting from OC Public Library.Transferred 1 Accounting Office Supervisor II, 2



Accounting Assistant II and 1 Accounting Specialist toOC Community Resources Accounting from OC Com-munity Resources. Deleted 1 Limited Term AdminManager I and 1 Limited Term Admin Manager II in IT.Transferred 1 Accounting Office Supervisor I, 2Accounting Assistant II, and 1 Office Specialist to OCCommunity Resources Accounting from OC Commu-nity Resources. Base budget is 437 positions.

■ FY 09/10 - Transfer 1 Supervising Collections Officer, 2Collection Officers, 1 Accounting Assistant II, and 1Office Technician to Treasurer/Tax Collector.

Budget Summary


Although the Auditor-Controller does not have responsibilityfor a specific priority item, the department budget reflectssupport of the overall priorities including initiation, imple-mentation, and continued support of several technologyprojects designed to enhance overall efficiency and enabledata gathering and processing to be more efficient through-out the County.

The Auditor-Controller's plan for 2009 continues to focus onleveraging technology by providing workflow initiatives thatwill provide substantial efficiencies to the County. Althoughthe Auditor-Controller is committed to technology develop-ment, the focus will remain on the core operations of thedepartment.


Detailed budget by expense category and by activity is presented for agency: Auditor-Controller in the Appendix on page A13

Highlights of Key Trends:■ The Auditor-Controller workload increases proportion-

ately with the addition and expansion of County pro-grams and with the general growth in the Countybudget and number of positions. Workload alsoincreases as a result of requests from client departmentsfor new and enhanced services and for interfaces withour automated systems.

■ Significant information technology department devel-opment work will continue for the County's core finan-cial systems. The CASPS+ financial system wasimplemented in July 2009. The CAPS+ HR /Payrollupgrade project is currently underway with implemen-tation set for January 2011. Development of an upgradefor the Property Tax Management System is also under-way.





Total Positions 425 437 437 432 (5) -1.14

Total Revenues 7,389,314 7,746,424 6,830,188 6,208,854 (1,537,570) -19.85


Net County Cost 9,683,908 9,515,694 8,611,833 9,512,002 (3,692) -0.04




No. Agency NameCentral

Operations

Satellite Accounting Operations

CAPS Program Management

OfficeExecutive

ManagementInformation Technology Administration

Internal Audit & Staff Services

CAPS+ Implementation

Project Total

003 Auditor-Controller

7,848,618 3,990,482 0 631,930 2,044,434 766,044 439,348 0 15,720,856

014 CAPS Program 26,952,709 0 0 0 0 0 0 0 26,952,709

15Q Pension Obligation Bond Amortization

11,000,000 0 0 0 0 0 0 0 11,000,000

Total 45,801,327 3,990,482 0 631,930 2,044,434 766,044 439,348 0 53,673,565


GENERAL GOVERNMENT SERVICES 014 - CAPS Program

014 - CAPS PROGRAM

014 - CAPS Program

Operational Summary

Description:

The CAPS Program agency was established by Board MinuteOrder dated November 1, 2005, for the purpose of control-ling appropriations and expenditures relating to CAPS(County-wide Accounting and Personnel System.) The CAPSsystems are the County's Financial, Purchasing, and HumanResources information systems and are a vital component ofthe County's infrastructure. These systems are required forCounty operations, such as financial planning and budget

development, maintaining the County's financial recordsand the generation of financial statements, collecting costsfor federal and state billings, procuring goods and services,making vendor payments, processing the County's payroll,and administering personnel records.

Strategic Goals:■ Continuous Improvement: Keep improving the utility of CAPS, and related administrative practices, with the on-going

expansion of features, functions and capabilities which demonstrate a clear return on investment.

■ Single-Source Solution: Position CAPS to be the single source of "Corporate-Level" Financial, Purchasing, and HumanResources information within the County to minimize system redundancy, reduce related costs, and eliminate conflictingdata.

■ Stay Current with Technology: Keep the CAPS Systems at the leading edge of information technology to leverage theCounty's workforce and improve services to our constituents.

At a Glance:



Total Final FY 2009-2010 26,952,709






MAINTAIN SYSTEM OPERATIONAL READINESS.What: Measures the availability of information systems resources to County staff.Why: CAPS is required for key administrative processes and its availability impacts staff productivity.

During this period, server processing irregularities caused the Personnel Data Warehouse System to be intermittently unavailable, bringing the online percentage slightly below the expected target.

On-line systems available and fully functional 99% of scheduled up-times and batch processing completed on time 99% of established schedules.

The twelve month rolling average is being met at 99.8% for the Finance/Purchasing System and 99.6% for the Human Resources/Payroll System.

MAINTAIN A HIGH QUALITY SYSTEM USER SUPPORT PROGRAM.What: Training/documentation and assistance program for the CAPS/CAPS+ user community.Why: Program is necessary to ensure the correct and effective use of the CAPS systems.

During this period, the program achieved better than a rating of 4.0 for training/documentation and user assistance, according to survey results.

Maintain a satisfaction rating of 4.0 or higher (scale of 1-5 with 5 the highest score) with student evaluations of training/documentation and user assistance survey ratings.

All student training evaluations and contact follow-up surveys satisfaction target ratings are being met.

014 - CAPS Program GENERAL GOVERNMENT SERVICES


FY 2008-09 Key Project Accomplishments:■ Operations: During the past year, the CAPS System was used to manage a $6.3 billion dollar County budget and processed

over 750,000 financial transactions in more than 600 funds. During the same period processed over 50,000 personnel/payroll transactions and generated over 500,000 paychecks/EFT payments.

■ Maintenance: During the past year, resolved 309 system problem tickets, completed all mandatory maintenance tasks.User Support: During the past year training over 514 students in 12 subject areas, and resolved over 265 user helplineproblems.

■ Strategic Initiatives: Met all significant milestones for five major projects in progress: Advantage Finance/PurchasingUpgrade; Finance Workflow; Position Action Workflow, E-Procurement Pilot, and HR/Payroll Fit/Gap Analysis. In addi-tion, the FRET Phase II project was completed this fiscal year under budget and met all key milestones.

CAPS Program - Includes Operations and Maintenance;User Support; On-going Minor Enhancements; and StrategicInitiatives.

Operations and Maintenance: Provides support for the oper-ations of the systems according to established schedules,processing deliverables, and service levels. It also providessoftware maintenance to ensure the timely and accurate pro-cessing of finance, purchasing and human resources infor-mation.User Support: Provides system documentation,training and assistance for the CAPS user community.

On-Going Minor Enhancements: Provides on-goingimprovements to the CAPS systems which improve the util-ity of the system, enhances staff productivity, and demon-strate a clear return on investment.Strategic Initiatives:Encompasses all major CAPS enhancement projects (over$250,000 in total cost.).

Budget Summary


There are two Strategic Priorities associated with CAPS:CAPS Replacement and Process Re-engineering. Thereplacement effort addresses the need to upgrade the exist-ing systems to newer technology. The Board approvedupgrade of the Financial and Purchasing System to the newweb-based version of CGI Advantage software is planned forphase I implementation July 2009. Also, with the possibilityof upgrading the County’s HR/Payroll System (AHRS), theBoard approved the conducting of a fit/gap analysis. Theprocess re-engineering strategic priority continues to beaddressed with multiple in-progress workflow projectswhich will improve and automate the County’s current busi-ness processes.

COMPLETE MAJOR PROJECTS ON TIME AND WITHIN BUDGET.What: Measures project management effectiveness.Why: CAPS projects typically have county-wide impacts and compete for limited County funds.

During this period, the only major project planned for completion, E-Procurement Pilot, was implemented on time and under budget.

All major projects ($250,000 or higher in total cost) completed within 15% of planned timeframes and budget.

Currently 3 major projects are in progress, which are anticipated to be completed within the next year: Position Action WF, HR Fit Analysis, & Finance/Purchasing Upgrade. All major projects continue to be monitored monthly by the CAPS Program Mgmt Office, and reported to the CAPS Steering Committee.

MAINTAIN A HIGH LEVEL OF SYSTEM USER SATISFACTION.What: Measures relative satisfaction with CAPS in meeting the County’s business needs.Why: A formalized feedback mechanism is needed to ensure CAPS is meeting the needs of the County.

Due to other priorities, a system-wide user satisfaction survey was not disseminated during this period.

Maintain a minimum 4.0 (scale of 1-5 with 5 being highest rating) overall satisfaction rating.

Selective surveys in various areas of CAPS have met the target ratings.





GENERAL GOVERNMENT SERVICES 014 - CAPS Program


Detailed budget by expense category and by activity is presented for agency: CAPS Program in the Appendix on page A29

Highlights of Key Trends:■ County business needs are driving an increasing

demand for more information capabilities. Examplesare the need for additional automated work to increase

transaction productivity to keep up with increasingworkload and the need for more ad-hoc capabilities toaccess information for analysis and trending purposes.

Approved Budget Augmentations and Related Performance Results:

Unit Amount Description Performance PlanBRASS

Ser.

Increase Net County Cost for CAPS Human Resources/Payroll UpgradeAmount:$ 10,219,593

Funding required to extend the useful life of the County Human Resources/Payroll System.

To fund Professional Services, Equip. and Software costs for the HR/Payroll System upgrade project.

1823





Total Revenues 256,495 0 0 9,880,253 9,880,253 0.00

Total Requirements 24,410,718 26,517,542 28,323,324 26,952,709 435,167 1.64

Net County Cost 24,154,223 26,517,542 28,323,324 17,072,456 (9,445,086) -35.62

006 - Board of Supervisors - 1st District GENERAL GOVERNMENT SERVICES


006 - BOARD OF SUPERVISORS - 1ST DISTRICT

006 - Board of Supervisors - 1st District

Operational Summary

Mission:

The County of Orange is a regional service provider andplanning agency representing all residents of Orange County.The core businesses of the County are public safety, publichealth, environmental protection, regional planning, publicassistance social services, and aviation. The Board of Super-visors, as authorized under California law, functions as botha legislative and executive body. In its legislative duties, theBoard adopts ordinances, resolutions, and rules within thelimits prescribed by State law. As an executive body, theBoard oversees the activities of County agencies and depart-

ments, establishes policy, determines annual budget alloca-tions, approves contracts for public improvement projectsand other specialized services, conducts public hearings onmatters such as zoning appeals and planning, and makesappointments to various boards and commissions. The FirstSupervisorial District represents the citizens of Santa Ana,Westminster, a large portion of Garden Grove, and the unin-corporated area of Midway City.

Strategic Goals:■ Improve access to government for all.

■ Work with County staff to provide the highest levels of service given limited financial resources.

■ Represent the people of the First District and serve as their advocate.

FY 2008-09 Key Project Accomplishments:■ Assured allocation of Proposition 1B funds that addressed infrastructure deficiencies in our public roads and storm

drainage systems.

■ Participated in the review of the revision of the County Contract Policy Manual and purchasing modernization to ensureefficiency in our contracts with outside vendors.

■ Advocated for review and methods to reduce the high cost of overtime in the county workforce.

■ Advocated for more efficient use of existing county properties and worked to develop a master plan for the County CivicCenter to reduce the need to rent office and parking space, particularly in Santa Ana and around the County Civic Center.

■ Examined ways to promote business investment, such as deferring impact fees.

■ Increased community park space and recreation opportunities, especially for seniors and children, in the First District.Examples include the Barrier-Free Park in Santa Ana, the Garden Grove Dog Park, senior exercise equipment placed atsenior centers in Westminster and Garden Grove, Atlantis Children’s Park playground improvements, and the Roger Stan-ton Park improvements in Midway City.

At a Glance:



Total Final FY 2009-2010 941,750




GENERAL GOVERNMENT SERVICES 006 - Board of Supervisors - 1st District

Ten Year Staffing Trend Highlights:■ Of the eight positions budgeted for First District, one is

occupied by the Supervisor.

Budget Summary


Detailed budget by expense category and by activity is presented for agency: Board of Supervisors - 1st District in the Appendix on page A18







Total Revenues 2,311 0 0 0 0 0.00


Net County Cost 903,341 951,148 939,730 941,750 (9,398) -0.99

007 - Board of Supervisors - 2nd District GENERAL GOVERNMENT SERVICES


007 - BOARD OF SUPERVISORS - 2ND DISTRICT

007 - Board of Supervisors - 2nd District

Operational Summary

Mission:

The County of Orange is a regional service provider andplanning agency representing all residents of Orange County.The core businesses of the County are public safety, publichealth, environmental protection, regional planning, publicassistance social services, and aviation. The Board of Super-visors, as authorized under California law, functions as botha legislative and executive body. In its legislative duties, theBoard adopts ordinances, resolutions and rules within thelimits prescribed by State law. As an executive body, theBoard oversees the activities of County agencies and depart-ments, establishes policy, determines annual budget alloca-

tions, approves contracts for public improvement projectsand other specialized services, conducts public hearings onmatters such as zoning appeals and planning, and makesappointments to various boards and commissions. The Sec-ond Supervisorial District represents the citizens of CostaMesa, Cypress, Fountain Valley, Huntington Beach, LaPalma, Los Alamitos, Newport Beach, Seal Beach, Stanton, aportion of Garden Grove, and the unincorporated areas ofRossmoor, Sunset Beach and Surfside.

Strategic Goals:■ Do everything possible to help provide an outstanding quality of life for all of the County's residents.

■ Endeavor to provide fair and objective analysis of all data and information in assessing the issues that come before theBoard of Supervisors.

■ Always treat constituents and anyone who comes into contact with the staff in a courteous and respectful manner.

■ Approach every day with a sense of humility and awe at our responsibility to the residents of the Second District.

■ Conduct our professional and personal lives in a highly ethical manner, so as never to bring disrepute on the office.

■ Work with all County agencies and employees to coordinate services and information in as efficient a manner as possible.

■ Conduct the business of the District and the County in as open and transparent a manner as possible.

■ Be proud to work for the benefit of all residents, citizens, and taxpayers of Orange County.

FY 2008-09 Key Project Accomplishments:■ Served as Chairman of the Board of Supervisors in 2008.

■ Encouraged a disciplined spending philosophy early in the year.

■ Promotion and Establishment of transparency in Government - Commencement of Redlining of changes in County Con-tracts.

■ Successfully urged the dissolution of the Southern California Regional Aviation Authority.

■ Initiated of retroactive pension rescission case.

■ Designed process for selection of new Sheriff.

At a Glance:



Total Final FY 2009-2010 902,986




GENERAL GOVERNMENT SERVICES 007 - Board of Supervisors - 2nd District

■ Facilitated creation of the Office of Independent Review.

■ Helped facilitate undergrounding of utilities process for Santa Ana Heights.

■ Helped Create the new Mesa-Birch Park in Santa Ana Heights.

■ Drafting and passage of Measure J limiting future retirement benefit increases to those approved by the voters.

■ Held successful budget conference with the Orange County business community.

■ Appointed two new members to the OCERS Board.

■ Helped establish the three-person supervision of the County's DNA laboratory and operations.

■ Pursued and improved the County's restaurant and food service evaluation notification system.

■ Obtained the highest short-term ratings for the County's first TRAN in 14 years.

■ Secured funding for renovation and restoration of the historical Pacific Electric Red Car Museum in Seal Beach.

■ Facilitated construction of an ADA accessible ramp in front of Rossmoor School.

■ Resolved Los Alamos Park (Fountain Valley) title deed record change issue.

■ Facilitated expeditious resolution on Huntington Beach Wetlands Restoration project (levee and sediment removal in Tal-bert Channel Outlet).

■ Facilitated Newport Bay Watershed's participation in the One Water-One Watershed as part of the Integrated RegionalWater Management Plan for the Santa Ana Watershed Project Authority (pending ratification by SAWPA Board).

■ Worked directly with Phil Mangano of the US Interagency Council on Homelessness to: 1) Host a public/private event atthe Village of Hope for the kick-off of Orange County's 10 Year Plan to End Homelessness, 2) Facilitate the introduction ofEd Cabrera of the US Interagency Council on Homelessness to the 10 Year Plan Working Group and 3) Host a public/pri-vate event at the Village of Hope to celebrate Orange County's federal homeless assistance grant award of $13.7 million.

■ Improvements at various parks, including: 1)Mile Square Park - replacement of two restrooms in progress; replaced roofon maintenance office; capped old water well; installation of soccer field seating in progress, 2) Wieder Park - pavement ofparking lot in progress, 3) Rossmoor Park - replaced tennis court windscreens; installed 2 basketball posts; installed 4picnic tables; repaired tennis court surfaces and 4) Upper Newport Bay Nature Preserve - installation of new exhibit hallfish tank in progress; installation of new exhibit hall benches in progress; installed new televisions for activity room andlibrary; installed walkway from building to parking lot.

■ Assisted in facilitating better cooperation and communication between Harbor Patrol and commercial boat tow provid-ers.

■ Facilitated restoration of the Marine Advisory Group to advise Sheriff on seaborne law enforcement issues.

■ Facilitated standardized response mechanism to Annual HCA Jail Inspections for affected Sheriff's Department divisions.

■ Assisted the Probation Department in securing private donations for the Probation Memorial Wall.

007 - Board of Supervisors - 2nd District GENERAL GOVERNMENT SERVICES


Ten Year Staffing Trend Highlights:■ Of the seven positions budgeted for Second District, one

is occupied by the Supervisor.

Budget Summary


Detailed budget by expense category and by activity is presented for agency: Board of Supervisors - 2nd District in the Appendix on page A19







Total Revenues 4 0 0 0 0 0.00


Net County Cost 886,166 912,384 858,570 902,986 (9,398) -1.03


GENERAL GOVERNMENT SERVICES 008 - Board of Supervisors - 3rd District

008 - BOARD OF SUPERVISORS - 3RD DISTRICT

008 - Board of Supervisors - 3rd District

Operational Summary

Mission:

The County of Orange is a regional service provider andplanning agency representing all residents of Orange County.The core businesses of the County are public safety, publichealth, environmental protection, regional planning, publicassistance social services, and aviation. The Board of Super-visors, as authorized under California law, functions as botha legislative and executive body. In its legislative duties, theBoard adopts ordinances, resolutions and rules within thelimits prescribed by State law. As an executive body, theBoard oversees the activities of County agencies and depart-ments, establishes policy, determines annual budget alloca-tions, approves contracts for public improvement projects

and other specialized services, conducts public hearings onmatters such as zoning appeals and planning, and makesappointments to various boards and commissions. TheThird Supervisorial District represents the citizens of Brea,Irvine, Orange, Tustin, Villa Park, Yorba Linda, a portion ofAnaheim, and the unincorporated areas of Cowan Heights,El Modena, Lemon Heights, MCAS El Toro, Olinda, Olive,Orange Hills, Orange Park Acres, Tustin Foothills, ModjeskaCanyon, Santiago Canyon, Silverado Canyon and TrabucoCanyon.

Strategic Goals:■ Strive daily to represent the interests of the men, women and children of Orange County.

■ Continue to make Orange County the best place to live, work and play.

FY 2008-09 Key Project Accomplishments:■ Implemented the AlertOC System to streamline the process of disseminating information in the event of an emergency

and conducted its first test message to 11,000 of the unincorporated Canyon households.

■ Entered into memorandum of understanding with the city of Irvine regarding the Alton Parkway Extension Project andfinalized design of the roadway.

■ Partnered with the city of Orange to fund completion of the northern portion of the Santiago Creek bicycle trail.

■ Implemented continuous ingress/egress on the SR-55 carpool lanes north of 17th Street.

■ Provided engineering assistance to Canyon residents on the placement of sandbags and straw bales to protect homes fromdebris and water flows.

■ Supported the city of Yorba Linda with OC Public Works assets and personnel to help protect residents from mudslides.

■ Worked with city of Tustin on opening of new Tustin branch library and addressed needed repairs at the Villa Park, Sil-verado, Heritage Park and University Park libraries.

■ Approved the acceptance of Baja Panorama, Menuda Panorama, Media Panorama, and Circula Panorama into the CountyRoad System allowing for pavement rehabilitation.

At a Glance:



Total Final FY 2009-2010 844,990



008 - Board of Supervisors - 3rd District GENERAL GOVERNMENT SERVICES


■ Approved an agreement with the city of Villa Park to jointly fund repairs to retaining wall located on the west side of Can-non Street at Serrano Avenue in the city of Villa Park.

■ Made improvements to Santiago Canyon Bridge.

■ Completed new entrance at OC Animal Care Shelter.

■ Made further progress on increasing the County's diversion rate and recycling.

■ Obtained funding for a number of Third District quiet zone improvements or grade separation projects.

Ten Year Staffing Trend Highlights:■ Of the seven positions budgeted for Third District, one


Budget Summary


Detailed budget by expense category and by activity is presented for agency: Board of Supervisors - 3rd District in the Appendix on page A20









Net County Cost 869,343 950,107 811,313 844,990 (105,117) -11.06


GENERAL GOVERNMENT SERVICES 009 - Board of Supervisors - 4th District

009 - BOARD OF SUPERVISORS - 4TH DISTRICT

009 - Board of Supervisors - 4th District

Operational Summary

Mission:

The County of Orange is a regional service provider andplanning agency representing all residents of Orange County.The core businesses of the County are public safety, publichealth, environmental protection, regional planning, publicassistance social services, and aviation. The Board of Super-visors, as authorized under California law, functions as botha legislative and executive body. In its legislative duties, theBoard adopts ordinances, resolutions and rules within thelimits prescribed by State law. As an executive body, theBoard oversees the activities of County agencies and depart-

ments, establishes policy, determines annual budget alloca-tions, approves contracts for public improvement projectsand other specialized services, conducts public hearings onmatters such as zoning appeals and planning, and makesappointments to various boards and commissions. TheFourth Supervisorial District represents the citizens of Ana-heim, Buena Park, Fullerton, La Habra, Placentia, and theunincorporated area of West Anaheim.

Strategic Goals:■ Provide leadership, formulate new ideas and build consensus on programs and projects benefiting the Fourth District and

all of Orange County.

■ Be the personal conduit between Anaheim, Fullerton, Buena Park, Placentia and La Habra constituents with OrangeCounty government.

. Ten Year Staffing Trend Highlights:■ Of the seven positions budgeted for Fourth District, one


At a Glance:



Total Final FY 2009-2010 883,975




009 - Board of Supervisors - 4th District GENERAL GOVERNMENT SERVICES


Budget Summary


Detailed budget by expense category and by activity is presented for agency: Board of Supervisors - 4th District in the Appendix on page A21








Net County Cost 840,342 893,373 882,428 883,975 (9,398) -1.05



010 - BOARD OF SUPERVISORS - 5TH DISTRICT

010 - Board of Supervisors - 5th District

Operational Summary

Mission:

The County of Orange is a regional service provider andplanning agency representing all residents of Orange County.The core businesses of the County are public safety, publichealth, environmental protection, regional planning, publicassistance social services, and aviation. The Board of Super-visors, as authorized under California law, functions as botha legislative and executive body. In its legislative duties, theBoard adopts ordinances, resolutions and rules within thelimits prescribed by State law. As an executive body, theBoard oversees the activities of County agencies and depart-ments, establishes policy, determines annual budget alloca-tions, approves contracts for public improvement projects

and other specialized services, conducts public hearings onmatters such as zoning appeals and planning, and makesappointments to various boards and commissions. The FifthSupervisorial District represents the citizens of Aliso Viejo,Dana Point, Laguna Beach, Laguna Hills, Laguna Niguel,Laguna Woods, Lake Forest, Mission Viejo, Rancho SantaMargarita, San Clemente, San Juan Capistrano, and theunincorporated areas of Coto de Caza, Las Flores, NewportCoast and Ladera.

Strategic Goals:■ To represent the people of the Fifth District by enhancing and protecting the quality of life, promoting economic prosper-

ity and being an effective advocate for Fifth District issues.

FY 2008-09 Key Project Accomplishments:■ Elected to serve as Chair of the Orange County Board of Supervisors and served as Chair of the Orange County Coastal

Coalition, a monthly meeting of non-profit and private sector stakeholders interested in protecting coastal resources andimproving Orange County’s water quality.

■ Served as Chair of the OCTA M2 Environmental Oversight Committee that is developing a Master Agreement for environ-mental mitigation for freeway projects that will accelerate project delivery and increase resource preservation areas inOrange County.

■ Completed the 2008 Maintenance Dredging Project as scheduled and under budget. With dedicated and knowledgeablestaff managing the process in-house, the project was a success and a true benefit for the boaters in Dana Point Harbor. Inaddition, the project was designed to reuse 70% of the material as beach nourishment allowing for replenishment on BabyBeach and Capistrano Beach.

■ Initiated construction of improvements along Ortega Highway from the City of San Juan Capistrano boundary east toAntonio Parkway to provide congestion relief and safety improvements on this State Highway that serves as a major con-nector between the Inland Empire and Orange County.

At a Glance:



Total Final FY 2009-2010 910,624



010 - Board of Supervisors - 5th District GENERAL GOVERNMENT SERVICES


■ The Laguna Canyon Realignment and Widening Project, was recognized by the California Department of Transportation(Caltrans) as a 2008 Excellence in Transportation award recipient. This project realigned Laguna Canyon Road, from theSan Joaquin Hills Transportation Corridor (SJHTC) to Interstate 405, including two travel lanes in each direction, bikelanes, utility undergrounding, and construction of wildlife under-crossings at Laguna Lakes, Little Sycamore Canyon andStage Coach crossings.

■ Reduced the fees charged to residents and businesses for planning and development processing services.

■ Completed construction of the Poche Beach Water Quality Ultraviolet Treatment Facility to improve water quality at PocheBeach.

■ The I-5/Crown Valley Parkway Project and the I-5/Oso Parkway Interchange Improvement Project were both initiatedahead of schedule. These projects will provide operational and safety improvements to the interchanges.

■ Approved a contract for the construction of an administrative office building at the Prima Deshecha Landfill. This build-ing will be constructed utilizing sustainable or "green" building practices which will allow the County to reduce its opera-tional costs while allowing the facility to operate in a resource-efficient, environmentally-friendly manner.

■ Completed a property exchange between the County and the City of Lake Forest which allowed the County to expand theacreage of Limestone Canyon-Whiting Wilderness Park and assisted the City of Lake Forest in getting them closer tobuilding a much needed local sports park.

■ Hosted our first annual South County Disaster Preparedness Expo. This event, held on the eve of the one-year anniversaryof the Santiago Fire that destroyed over 28,000 acres in our area of Orange County, was a resounding success.

■ Approved a contract to locate a material recovery facility (MRF) at Prima Deshecha Landfill in San Juan Capistrano. Thisfacility will help increase recycling and waste diversion activities for all of South Orange County.

■ My office, joined by the Orange County Office on Aging and South County Senior Services, hosted the 2nd annual SouthCounty Senior Summit.

■ The South Orange County Major Investment Study (SOCMIS) was completed in October 2008. The study assesses variousalternatives for improving north-south travel from the Costa Mesa freeway (SR-55) to the Orange/San Diego County bor-der and east-west travel from the foothills to the coast.

■ Challenged County staff to start looking at green alternatives in the many facets of what we do. As a result, the Countyestablished a "Green Team" to begin evaluating opportunities for the County to provide long-term economic savings toOrange County taxpayers.

Ten Year Staffing Trend Highlights:■ Of the eight positions in Fifth District, one is occupied

by the Supervisor and one is currently vacant.




Budget Summary


Detailed budget by expense category and by activity is presented for agency: Board of Supervisors - 5th District in the Appendix on page A22







Net County Cost 807,381 934,032 880,563 910,624 (23,408) -2.51

011 - Clerk of the Board GENERAL GOVERNMENT SERVICES


011 - CLERK OF THE BOARD

011 - Clerk of the Board

Operational Summary

Mission:

The Mission of the Clerk of the Board (COB) of Supervisorsis to provide the County and its citizens easy access to infor-mation; and guidance to facilitate fair, equitable and openparticipation in the decision and policy making of OrangeCounty government.

Strategic Goals:■ Facilitate the decision and policy making of Orange County government.

■ Ensure the assessment appeals process is fair, timely and equitable; and promote public understanding of the process.

■ Ensure records are maintained, legislative history of the County is preserved and documents are readily available to ourclients.

At a Glance:



Total Final FY 2009-2010 3,307,844






PERCENT OF ACCURATE BOARD OF SUPERVISORS AGENDA TITLES.What: Measurement of COB's accuracy and training.Why: Measures COB's accuracy, compliance with Brown Act and identifies areas requiring training.

99.25% of published agenda titles were accurate with no errors.

99.5% of agenda titles published with no errors.

COB has consistently maintained a high level of quality and accuracy in preparing Board of Supervisors' agendas in compliance with the Brown Act.

PERCENT OF ACCURATELY COMPLETED AND TIMELY FILED ASSESSMENT APPEALS APPLICATIONS.What: Indicator of taxpayers' and agents' understanding of applications and process.Why: Measures success of the COB's training and outreach efforts and use of online e-file application.

84.7% of 2007 and 78% of 2008 (still in progress) applications were completed accurately and timely filed.

88% of 2008 applications accurately completed and timely filed.

The State mandated form can be confusing to taxpayers. Continued public outreach and increased use of e-filing, which provides help and requires correction of errors/omissions prior to filing, has greatly assisted filers.

PERCENT OF ASSESSMENT APPEAL CLAIMS DECIDED OR WAIVED WITHIN 2 YEAR DEADLINE.What: Indicator of success managing workload to ensure required actions are taken before legal deadline.Why: Assesses whether procedures & staffing results in processing appeals within the statutory deadline.

Although the 2 year deadline has not yet expired for all of the 2007 filings, 90.3% of the appeals have been resolved or waivers received.

100% of appeals resolved or waivers filed, excluding cases in litigation.

COB meeting goal due to quality tracking of database information. Number of filings has more than tripled over last two years. Due to the potential financial impact of missing the two year deadline for any appeal, monitoring their status and ensuring deadline is met will be of highest priority.


GENERAL GOVERNMENT SERVICES 011 - Clerk of the Board

FY 2008-09 Key Project Accomplishments:■ Continued participation with property tax administration departments in development of new Property Tax Management

System.

■ After successfully sponsoring legislation, implemented online filing of Conflict of Interest - Statement of Economic Inter-ests forms.

■ Implemented electronic distribution and storage of claims and lawsuits against the County.

■ Implemented centralized pool of hearing officers for County administrative review processes.

■ More than doubled the number of assessment appeal process and hearing preparation workshops presented in communi-ties.

COB - Executive - Provides leadership and vision, manage-ment oversight and direction to all Clerk of the Board func-tions; performs administrative functions including budgetpreparation and monitoring, strategic financial projections,

human resources, legislative analysis and proposals, pre-pares business plan and monitors progress in meeting goalsand performance indicators.

PERCENT OF ASSESSMENT APPEALS HEARINGS HELD OR SCHEDULED WITHIN ONE YEAR OF FILING.What: Indicator of efficiency in processing and scheduling appeals.Why: Measures COB's success in meeting its customer service goal & reducing 2nd year protective filings

99.8% of 2007 filings held initial hearings within one year, excluding those with applicant waivers filed. For 2008 filings, 85% are projected to hold initial hearing within one year.

85% of hearings scheduled within one year, excluding filings with applicant waivers.

In past years, COB has been very successful in scheduling hearings within one year. However, with filings more than tripling over the last two years, the number of appeals heard within one year has already dropped to 85%.

RESULTS OF CUSTOMER SATISFACTION SURVEYS: % FINDING ASSESSMENT APPEAL WORKSHOPS OVERALL SATISFACTORYWhat: Measure of success in meeting clients' needs and providing understanding of appeals process.Why: Measures COB's success in educating filers on how to prepare for their hearing.

95% of attendees rated workshop as overall satisfactory or better.

95% of attendees rating workshops as overall satisfactory or better.

COB has consistently received overall satisfactory ratings from its survey respondents.

RESULTS OF CUSTOMER SATISFACTION SURVEYS: % FINDING COB DEPT SERVICES OVERALL FAVORABLEWhat: Measurement of success in meeting clients' needs.Why: Measures success in meeting the needs of our customers in a professional and courteous manner.

100% rated COB as overall satisfactory or better.

100% rating COB as overall satisfactory or better.

COB has consistently received overall satisfactory or better ratings from its customers.





Administration &

Files Management

Assessment

AppealsBoard Services

Clerk of the Board of

Supervisors

011 - Clerk of the Board GENERAL GOVERNMENT SERVICES


Board Services - Prepares and publishes agendas for Boardof Supervisors and other authorities in accordance with legalrequirements for public meetings; records and publishesactions taken by the Board; maintains official rosters ofBoards, Commissions and Committees; processes legal pub-lications, postings and notices; receives and administers bidopenings for County projects; administers oaths of office forvarious elected and appointed officials and employees;serves as filing officer for Statement of Economic Interestforms; receives and processes claims, summons and com-plaints against the County.

Assessment Appeals - Receives and processes assessmentappeal applications; schedules hearings in accordance withlegal requirements; prepares minutes and processes actionsof the Appeals Boards and Hearing Officers; provides assis-tance and education on the assessment appeals process tothe general public and professional groups through work-shops, brochures and the Internet.

Administration/Files Mgt - Provides files management forall records that the Clerk of the Board is required to main-tain; responds to Public Record Act requests; assists Countystaff and the public with research and retrieval of informa-tion; provides technical knowledge and coordination indevelopment and implementation of automation projects;provides end-user system support services; performs pur-chasing, petty cash and payroll functions for COB and theBoard of Supervisors Offices.

Ten Year Staffing Trend Highlights:■ Even with increased workload and additional responsi-

bilities and services, COB has maintained level staffingrequirements for over ten years. This has been accom-plished primarily through automation of previouslylabor-intensive activities. Increase of one position in FY2004-05 due to transfer from the County ExecutiveOffice of the position supporting the Board Chairman.This position was then deleted during FY 2007-08. Inorder to meet the FY 2009-10 Net County Cost limit, twopositions were deleted.

Budget Summary


The COB has automated all of it's major functions which hasstreamlined and reduced costs of previously labor intensiveprocesses. These cost savings have been achieved while atthe same time enhancing the availability of information anddocuments both to the public and internal to the County.Assessment Appeal processes have been reviewed and sev-eral functions are now being handled administratively andappeal boards are consolidated when the number of with-drawals prior to the hearing allow it. These changes havereduced the number of assessment appeal boards and theircosts. The COB will continue to pursue cost savings and rev-enue enhancements where efficient and cost-effective.

Changes Included in the Base Budget:

In order to meet the Net County Cost limit, the COB wasrequired to delete 2 positions with a cost of $134,697 from itsFY 2009-10 budget request. These reductions will impact theCOB's service levels and quality control in preparing BOSagendas and their backup materials, processing documentsand agreements resulting from BOS actions and in providingreception and administrative support to the Board Offices.



GENERAL GOVERNMENT SERVICES 011 - Clerk of the Board


Detailed budget by expense category and by activity is presented for agency: Clerk of the Board in the Appendix on page A23

Highlights of Key Trends:■ With the decline in real estate values, the number of

assessment appeals have more than tripled over the lasttwo years and are expected to increase further in the2009 filing period which begins July 2, 2009.





Total Positions 32 32 32 30 (2) -6.25

Total Revenues 170,160 142,449 258,411 145,849 3,400 2.39


Net County Cost 3,232,223 3,322,947 3,127,082 3,161,995 (160,952) -4.84


No. Agency Name COB - Executive Board Services Assessment Appeals Administration/Files Mgt Total

011 Clerk of the Board 471,715 822,737 1,283,010 730,382 3,307,844

Total 471,715 822,737 1,283,010 730,382 3,307,844

017 - County Executive Office GENERAL GOVERNMENT SERVICES


017 - COUNTY EXECUTIVE OFFICE

017 - County Executive Office

Operational Summary

Mission:

The mission of the County Executive Office (CEO) is to sup-port and implement Board policy and direction through cor-porate action and leadership, communication andcoordination of strategic and regional planning, and toensure effective service delivery through efficient manage-ment of the County's workforce and resources, and to iden-tify and respond to needs in a proactive style focused oncustomer service.

Strategic Goals:■ Goal 1: Facilitate, support and ensure the implementation of decisions by the Board of Supervisors in a proactive style

focused on customer service.

■ Goal 2: Improve County government's effectiveness in addressing community issues and needs.

■ Goal 3: Ensure the financial strength and integrity of the County of Orange.

■ Goal 4: Preserve and advance the regional services and infrastructure that the Orange County community relies upon byworking collaboratively with other levels of government and community-based organizations to ensure that regionalissues and needs are addressed.

At a Glance:



Total Final FY 2009-2010 17,560,772






BOARD RATING OF CEO SUPPORT.What: Board Members rate quality of support provided by CEOWhy: To provide CEO with feedback on quality of support provided to the Board

As a cost-saving measure, the CEO delayed utilizing a consultant to conduct the survey

The CEO will continue to conduct regular briefings with each Board office

The Board of Supervisors provides immediate feedback to the CEO and staff at regular briefings

AGENCY/DEPT RATING VALUE OF CEO'S STRATEGIC, FINANCIAL, TECHNOLOGY AND COMMUNICATIONS SUPPORT.What: Feedback on agencies assessment of CEO's strategic, financial, technology and communications supportWhy: To measure the effectiveness of leadership and services provided by the CEO to agencies/departments

Surveys in progress or completed include: Countywide Employee Survey, CEO/IT Employee Survey, CEO/Purchasing, CEO Support of Computerized Agenda Management System (CAMS) and CEO Community/Media Relations

CEO will identify and conduct additional service surveys.

CEO/IT Employee Survey resulted in areas of service improvements to Agencies/Departments and residents. These are being addressed in CEO/IT's organizational realignment initiative and the Strategic Focus initiative.


GENERAL GOVERNMENT SERVICES 017 - County Executive Office

FY 2008-09 Key Project Accomplishments:■ Presented a balanced budget for FY 2008-09 which was adopted by the Board in June 2008.

■ The 2008 Strategic Financial Plan was adopted by the Board on December 16, 2008.

■ Produced quarterly budgets report to provide a consolidated look at budgeted vs. actual costs.

■ Implemented ADA access to Internet Board Meetings through the use of closed captioning.

■ The Online Government Channel was launched, providing a selection of informational videos about the SupervisorialDistricts, as well as County Agencies and Departments.

■ On July 10, 2008, the County issued the Teeter Plan Tax and Revenue Anticipation Notes (TRANs) in the principal amountof $75.6 million, which proceeds were used to pay a portion of the mid-July property tax apportionment payments to the122 participating Teeter agencies.

■ On August 26, 2008, the County issued the Teeter Plan Obligation Commercial Paper Notes, Series A in the total amount of$178.3 million, which in combination with other Teeter program revenues, restructured the Teeter program to refinancethe 1995 Teeter Plan Revenue Bonds, Series A through E in the total outstanding amount of $123.7 million; subsequentlyredeem the Teeter Plan TRANs in the principal amount of $75.6 million; fund the operation of the Teeter program; andeliminate the annual contribution limit to the General Fund, thereby, potentially allowing for increased contributions tobe made to the General Fund contingent on future availability of Teeter revenues.

■ On September 17, 2008, the County issued the FY 2008-09 General Fund Tax and Revenue Anticipation Notes in the totalamount of $100 million with an interest rate of 1.54% and a June 30, 2009 maturity, which helped ensure the GeneralFund could meet its cash needs during deficit periods in this fiscal year.

■ Maintained Moody's and upgraded Standard & Poor's credit ratings of Aa2 and AA, respectively.

■ Several key projects that were completed in FY 2008-09, funded by Budget Control 036 Capital Projects budget that aremanaged by the CEO, include: completion of the Civic Center Signage phase I & II, Central Justice Center 5th floor rehabil-itation, Hall of Administration 5th floor security upgrades, Juvenile Hall perimeter fence replacement, and multi-purposetraining room to support CAPS.

■ Legislative Affairs worked closely with Senator Lou Correa to address Orange County’s low rate of property tax retentionand as a result the County will receive an additional $35 million in retained local property taxes for the next two fiscalyears and $50 million per year thereafter.

COUNTY OF ORANGE CREDIT RATINGS.What: Ratings by major bond rating companies (Moody's, S&P, Fitch)Why: Credit ratings indicate financial credit worthiness and factor into our borrowing costs

Moody's and Standard & Poor's continued County's issuer ratings of Aa2 and A+, respectively

Maintain/Improve rating The County has maintained its credit rating with Moody's, and received an upgrade from Standard & Poor's to AA.

LEGISLATIVE AGENDA AND LOCAL GOVERNMENT AWARENESS OF REGIONAL SERVICES AND COORDINATION PROVIDED.What: Provide Orange County agencies & business leaders information on County's leadership on legislationWhy: Provides county a measure of success in defining legislative agenda and achieving favorable results

As a cost-saving measure, the CEO canceled the use of a consultant to conduct survey.

In addition to the regular publication of an annual Legislative Platform and Legislative Bulletins for Board meetings, the CEO will establish a means of incorporating the ideas and concerns of major County stakeholders in this process through working with their legislative staff.

CEO/Legislative Affairs is working with major public agencies and select major employers in Orange County to develop a regular platform for sharing ideas and challenges as well as a means for cooperating on addressing these challenges.






■ Working with U.S. Senator Diane Feinstein and Representative Loretta Sanchez the County was able to enact changes tothe tax code so that bonds for construction at John Wayne Airport would receive more favorable treatment under thealternative minimum tax rules. This will yield substantial interest savings to John Wayne Airport exceeding $100 millionover the life of the bonds.

■ County efforts to acquire stimulus funding from the American Recovery and Reinvestment Act of 2009 resulted in over$50 million from the Army Corps of Engineers for construction of the Upper Newport Bay, the Santa Ana River MainstemProject and other watershed projects.

■ Legislative Affairs actively pursued legislative and budgetary priorities as determined by the Board of Supervisors.

■ Developed and implemented the AlertOC Program which includes a regional high-capacity mass notification system,governing policy, County/City agreements, public website and public awareness campaigns.

■ Completed the re-design of 15 additional Agency websites as part of the eGovernment initiative.

■ Established a local Assistance Center in less than 12 hours, to provide assistance to residents impacted by the TriangleComplex Fires.

■ Implemented a performance scorecard software system for three pilot Agencies/departments (Probation, Treasurer-TaxCollector, and OC Parks) that enables the tracking, updating, and reporting of performance metrics.

■ Designed platform architectures to support the next generation of the CAPS+, ATS, and PTMS systems based on ’SMART’criteria: Security, Maintainability, Availability, Reliability, and Total Cost of Ownership.

■ Implemented wireless access at each of the Superior Court facilities, providing OC Justice Partners agency (PublicDefender, DA, Probation, and Sheriff-Coroner) personnel the ability to access their respective agency’s informationsecurely.

■ Partnered with and created a centralized 24/7/365 managed environment for Probation’s 70 servers housed at the OrangeCounty Data Center and its 30 distributed remote servers.

■ Developed and deployed a new web-based electronic Fictitious Business Name (FBN) submission process that includesadditional features to assist registrants and Clerk-Recorder staff to file, maintain, and register FBN records more effi-ciently.

■ Upgraded Hall of Administration and Orange County Data Center networks to support the long-term business needs andend-of-life equipment and network stability issues.

■ Completed the Regional Wireless Feasibility Study to assess the benefit of implementing a regional wireless access net-work throughout the geographic boundaries of the County of Orange.

■ Completed the Regional 311 Feasibility Study which assessed the need, interest, opportunities, impact and requirementsof establishing a regional government customer service center within Orange County.

■ Detailed Business Continuity plans have been developed for 181 Mission Critical agency processes, 194 Mission Neces-sary process, and 72 Mission Desirable processes.



County Executive Office - Provides corporate leadershipand oversight to assure implementation of Board policiesand directions. The CEO has seven direct reports and budgetoversight responsibility for all County departments. CEOAdministration and Media Relations provides leadership indeveloping and presenting strategies for communication ofCounty programs; manages and guides internal operationsfor CEO including department budget, accounting, humanresources, building security, agenda reviews, and agencycoordination.

County Financial Office - Provides leadership and over-sight of the overall financial operations of the County. Majorresponsibilities include long-range strategic financial plan-ning, the County's Strategic Focus effort, public finance, riskmanagement, County budget, corporate business planning,and corporate purchasing.

Information & Technology - Provides leadership in ITstrategic planning and implementation of best practices ofcorporate information technology functions. Major respon-sibilities include the County IT Strategic Plan, eGovernmentinitiatives, IT Standards, IT Governance oversight and man-agement, IT policy development, IT HIPAA security, Coun-tywide IT security, Data Center operations, local and widearea network operations, Countywide IT procurements, ITproject management, Countywide IT business continuity,telecommunications and reprographic services.

OC Infrastructure - Provides leadership and oversees man-agement of the following County agencies/departments: OCCommunity Resources, OC Public Works, OC Registrar ofVoters, OC Waste & Recycling, and OC Dana Point Harbor.Coordinates service delivery and policy development of keyregional services to accomplish corporate and regionalgoals.

Government & Public Services - Provides leadership inplanning and establishing effective governance structuresand relationships to accomplish corporate and regionalgoals. This office oversees management of the followingCounty agencies/departments: Social Services Agency,Health Care Agency, Probation, Public Defender and ChildSupport Services. Other responsibilities include coordina-tion of all Federal and State legislative advocacy efforts,HIPAA compliance, trial court matters, the ExternalRestructuring Program and special projects.


Information &

Technology

County Financial

Office

Government &

Public ServicesOC Infrastructure

County Executive

Office

ProcurementPublic FinanceBudget OfficeRisk Management(Funds 293 & 294)

HOA System SupportEnterprise SystemSupport (Fund 289)New Systems(Agency 038)Publishing Services(Agency 297)

Department Oversight(CSS, HCA, SSA, Probation, Public Defender)Legislative Affairs

Administration

Media Affairs

Department Oversight(O.C. Community Resources, O.C Public Works, O.C. Waste & Recycling, Registrar of Voters, O.C. Dana Point Harbor)




Ten Year Staffing Trend Highlights:■ FY 00/01 - Positions decreased as limited-term posi-

tions related to El Toro MCAS were deleted.

■ FY 01/02 - One position added to Human Resources forclerical support of the Volunteer Program and virtualemployment center. Two long term extra help positionsconverted to regular positions, one for Strategic Affairsto support Media Relations and one to support CEOAdministration. Four positions transferred in fromData Systems to support the Hall of Administration. Inthe Final Budget one additional position added in Pur-chasing to jointly support both Children and FamiliesCommission and the LRA. Mid year, in 00-01, four posi-tions transferred from CEO to the Local RedevelopmentAuthority and two positions added for the WatershedProgram and child care coordination.

■ FY 02/03 - One position transferred to Housing andCommunity Development for coordination of homelessissues. One position transferred in from Informationand Technology ISF to provide purchasing support.

■ FY 03/04 - One position deleted in Human Resources asa result of the Strategic Financial Plan reductions. Twopositions transferred in to support the new federalmandate for Health Insurance Portability and Account-ability Act (HIPAA). Ten positions transferred in fromEmployee Benefits as Limited Term for CEO IT pilotproject for scanning County documents. Four positionsadded as an augmentation to CEO purchasing to accom-plish the goals of the Board's Ad Hoc Committee recom-mendations.

■ FY 04/05 - The CEO Reorganization was approved bythe Board, and adopts a Deputy CEO approach toimprove the span of control. Eight positions weredeleted, two positions were transferred out, and twopositions, one Deputy CEO and one Executive Secretarywere added to accomplish this reorganization. HumanResources became a distinct department, while the CEOretains the ten positions for Labor Relations. Ten posi-tions under the County Information Officer were trans-ferred to agency 289 to provide scanning services forthe County.

■ FY 05/06 - CEO Procurement functions were separatedand one position was transferred out from CEO RealEstate to RDMD (now OC Public Works) Real Estate.

One position was also transferred in to CEO IT Supportfrom County Counsel to facilitate supervision and shareresources. The Board also approved augmentations,with no increase in Budget appropriations, to convertfour contract positions, three in Information and Tech-nology and one in the Budget Office, to regular posi-tions, for on-going work which supports advances intechnology.

■ FY 06/07 - The CEO First Quarter adjustment trans-ferred eight positions to Human Resources and oneposition for Volunteer Programs was transferred in. Oneposition was also deleted in exchange for two lower levelpositions with no increased costs. In addition FY 06/07includes the deletion of one vacant position anddefunding of one other vacant position as a cost savingsto cover increased retirement costs as proposed in theStrategic Financial Plan.

■ FY 07/08 - The CEO First Quarter adjustment trans-ferred eight positions to RDMD (now OC Public Works)to consolidate all real estate and records center opera-tions in RDMD. Also two positions were transferred infrom 289 Internal Service Fund to CEO Information andTechnology. In the Second Quarter two positions wererequested, one to facilitate the Board's Multi ServiceCenter Project and one for coordinating the Countygrants program, providing stronger linkages to districtstaff for members of the Assembly, Senate and Congressand a coordination committee with Orange County cit-ies staff members regarding legislative issues and initia-tives. In the Final Budget augmentations were approvedfor: three limited term positions for purchasing to sup-port the county CAPS upgrade and offset in their bud-get, two positions for CEO IT replacing long termcontract support with full time staff, and one positionfor the CEO's office. These last three were absorbedwithout additional funding. The CEO Third Quarteradjustment in 07/08 transferred one position to CEO/Risk Management.

■ FY 08/09 - In the Requested Budget two positions are tobe deleted to meet the Net County Cost limit. The CEO2nd Quarter Adjustment deleted two limited-term posi-tions formerly used for the CAPS+ Project and one reg-ular position in CEO IT. The CEO 3rd QuarterAdjustment deleted one regular position from CEO Gov-ernment & Public Services.



Budget Summary


The County Executive Office will lead the Board's strategicplanning process, update the Strategic Financial Plan andcontinue development and implementation of the County'sfinancial systems, integrate and coordinate regional plan-ning efforts, provide leadership in the development of theCounty's financial, technology, and administrative func-tions, and support the Board in developing and pursuing theOrange County Legislative Platform.

Consistent with the goals set by the Board, the Countylaunched the Countywide Strategic Focus process in 2006.The effort focuses on the County's ability to address our cus-tomers' service needs and ensure the County is forward-focused to meet new challenges and seize opportunities tobetter serve County residents. The next steps in this processare to develop meaningful actions that will implement theadopted Strategic Initiatives and Goals. In an effort to

develop a meaningful approach to measurement of progresstoward goals, the Probation Department, Treasurer-Tax Col-lector's Office and OC Parks have piloted a Balanced Score-card approach which was extended this year to include OCCommunity Resources, OC Public Works and OC Registrarof Voters Departments. The County Executive Office contin-ues its leadership role as the process continues in 2009 andbeyond.


Changes included in the FY 2009-10 Recommended BaseBudget meet the Net County Cost (NCC) limit and includethe 1st Quarter 2% NCC reduction and technical adjustmentto reduce the Mass Notification Contract budget from con-tract estimate to actual. Reductions also include funding forfour positions, one regular and two limited-term positionsdeleted in the 2nd Quarter and an additional regular posi-tion deleted in the 3rd Quarter and reductions in Services &Supplies, notably for building alterations, office supplies,and professional services.


Detailed budget by expense category and by activity is presented for agency: County Executive Office in the Appendix on page A31

Highlights of Key Trends:■ A significant challenge faced by County government is

the ongoing uncertainty of the State budget and itspotential impact on County services. The developmentof the County budget in advance of the outcome of theMay 2009 State budget balancing measures necessitatesreduction planning and the implementation of back-upreduction plans as early as possible to help build generalreserves in anticipation of the effect on State budgetallocations should pending ballot measures fail.

■ The economic downturn caused by high unemploymentrates, lower job growth and the continued decline inproperty values will translate to reduced property taxrevenue, which comprises 80% of the County's GeneralPurpose Revenue. Stabilization of the real estate marketand the economy in general will be a long-term factoraffecting this revenue stream and will play a role in howCounty government approaches future budgets.

■ The CEO's Office has developed strategies to identifyalternatives and financial options for the Board to mini-mize impacts to County services and carrying outimportant Board policies. During the past year an






Total Revenues 3,123,721 1,888,709 2,247,044 2,040,408 151,699 8.03


Net County Cost 12,800,410 16,092,500 14,243,260 15,520,364 (572,136) -3.56



aggressive countywide hiring freeze has been in place toimplement salary savings through attrition minimizingthe impact of staff reductions to current Countyemployees. Budget Saver suggestions were solicitedfrom the County's exceptional work force to find addi-tional ways to streamline and cut costs on a permanentbasis. The CEO's Office will continue to spearhead theevaluation of the ongoing budget saver suggestionsreceived.

■ The CEO continues to look for new administrativestructures and processes to improve County govern-ment's ability to effectively address the issues and needs

of the community. In addition, the CEO ensures a con-sistent approach in addressing community issuesthrough a Corporate Management System, whichincludes the Strategic Financial Plan, Department Busi-ness Plans, and employee training. Participating insending managers to the Leadership Academy, facili-tated through the CEO, is a forward-thinking approachto making sure today's County managers are preparedfor tomorrow's challenges to provide service excellenceto the residents of Orange County.


No. Agency Name County Executive Office County Financial Office Information & Technology OC InfrastructureGovernment & Public

Services Total

004 Miscellaneous 0 8,178,494 0 0 0 8,178,494

016 2005 Lease Revenue Refunding Bonds

0 70,221,810 0 0 0 70,221,810

017 County Executive Office 4,800,705 6,421,454 3,615,398 372,262 2,350,953 17,560,772

019 Capital Acquisition Financing

0 7,118,544 0 0 0 7,118,544

020 Tax and Revenue Anticipation Notes

0 2,617,119 0 0 0 2,617,119

021 2005 Refunding Recovery Bonds

0 18,430,250 0 0 0 18,430,250

036 Capital Projects 0 14,949,886 0 0 0 14,949,886

038 Data Systems Development Projects

0 0 11,288,366 0 0 11,288,366

039 IBM Maintenance 0 0 4,840,999 0 0 4,840,999

081 Trial Courts 0 67,255,494 0 0 0 67,255,494

104 Criminal Justice Facilities - Accumulative Capital Outlay

0 10,755,334 0 0 0 10,755,334

105 Courthouse Temporary Construction

0 5,610,298 0 0 0 5,610,298

12J DNA Identification Fund 0 2,154,586 0 0 0 2,154,586

130 District Community Priorities and Projects

0 2,910,736 0 0 0 2,910,736

13A Litigation Reserve - Escrow Agent FTCI

0 221,320 0 0 0 221,320

13N Orange County Tobacco Settlement

0 36,930,966 0 0 0 36,930,966

13X Substance Abuse & Crime Prevention Act Fund

0 5,974,918 0 0 0 5,974,918

145 Revenue Neutrality 0 1,952,190 0 0 0 1,952,190

14U Court Facilities 0 1,753,301 0 0 0 1,753,301

14Y Indemnification Reserve 0 91,661 0 0 0 91,661

14Z Litigation Reserve 0 4,356,280 0 0 0 4,356,280

15J Pension Obligation Bonds Debt Service

0 14,461,099 0 0 0 14,461,099

15S Designated Special Revenue

0 10,977,625 0 0 0 10,977,625



15T El Toro Improvement Fund

0 672,877 0 0 0 672,877

15W 1996 Recovery Certificates of Participation (A)

0 309,588 0 0 0 309,588

15Y Teeter Series A Debt Service Fund

0 27,500,000 0 0 0 27,500,000

15Z Plan of Adjustment Available Cash

0 14,122,098 0 0 0 14,122,098

289 Information Technology Internal Service Fund

0 0 50,748,388 0 0 50,748,388

293 Workers' Compensation Internal Service Fund

0 21,818,073 0 0 0 21,818,073

294 Property and Casualty Risk Internal Service Fund

0 31,260,579 0 0 0 31,260,579

9A0 Debt Service 0 71,230,739 0 0 0 71,230,739

9B0 Debt Service 0 107,891,840 0 0 0 107,891,840

9C0 Debt Service 0 162,406,542 0 0 0 162,406,542

Total 4,800,705 730,555,701 70,493,151 372,262 2,350,953 808,572,772


No. Agency Name County Executive Office County Financial Office Information & Technology OC InfrastructureGovernment & Public

Services Total

020 - Tax and Revenue Anticipation Notes GENERAL GOVERNMENT SERVICES


020 - TAX AND REVENUE ANTICIPATION NOTES

020 - Tax and Revenue Anticipation Notes

Operational Summary

Description:

To record the revenue and expenses related to the GeneralFund Tax and Revenue Anticipation Notes (TRANs). Histor-ically, local governments in California have relied on a formof short term borrowing, commonly referred to as TRANs,for the purpose of financing cash flow deficits resulting gen-erally from the timing mismatch between the receipt of reve-nues and payment of expenditures. Since the bankruptcy,the County had been able to use intrafund borrowing formuch of its internal cash flow needs. However, in Fiscal Year2008-09, due to numerous factors including the County’sincreased reliance on the receipt of property tax revenues,

the majority of which are collected in the period fromDecember to April, the County issued TRANs in the amountof $100 million to meet its cash flow needs. It is anticipatedthat the County will again need to issue TRANs in order tomeet its Fiscal Year 2009-10 cash flow needs.

Budget Summary


Detailed budget by expense category and by activity is presented for agency: Tax and Revenue Anticipation Notes in the Appendix on page A36

At a Glance:



Total Final FY 2009-2010 2,617,119







Total Revenues 0 1,133,000 1,133,011 1,100,000 (33,000) -2.91

Total Requirements 0 2,650,119 2,650,118 2,617,119 (33,000) -1.25

Net County Cost 0 1,517,119 1,517,107 1,517,119 0 0.00


GENERAL GOVERNMENT SERVICES 025 - County Counsel

025 - COUNTY COUNSEL

025 - County Counsel

Operational Summary

Mission:

To provide the highest quality legal advice and representa-tion to the Board of Supervisors, elected and appointeddepartment heads, County agencies/departments and staff,and Board-governed special districts.

Strategic Goals:■ Provide highly competent legal advice to clients on matters related to their public duties and responsibilities in the admin-

istration of the public's business, in accordance with high ethical and professional standards.

■ Effectively prosecute and defend civil actions in which clients are involved.

■ Deliver all legal services to clients as efficiently and economically as possible.

■ Advise the Board and departments on legal strategies to accomplish the Board's goals and comply with legal mandatesthrough this financial crisis.Successfully defend litigation that would impair the Board's ability to deal with the currentfinancial situation.

At a Glance:



Total Final FY 2009-2010 11,896,230






PERCENTAGE OF CLIENTS RATING ADVISORY AND LITIGATION SUPPORT AS SATISFACTORY OR BETTER.What: Measurement of quality and effectiveness of services provided.Why: Client satisfaction is the primary measure of success for a service agency.

92% based on annual survey results.

Continue to be rated as satisfactory or better by clients.

Based on survey results and ongoing dialogue with clients, County Counsel is doing well in the area of providing satisfactory advisory and litigation legal services.

PERCENTAGE OF WRITTEN OPINIONS THAT ARE UPHELD.What: Measurement of the quality of legal advice.Why: Provides measure of quality of services provided.

No written opinion was challenged, requiring judicial review.

Maintain 90% or better rate of success.

County Counsel is doing very well in producing quality written opinions that stand up to judicial review.

PERCENTAGE DEPENDENCY CASES UPHELD ON APPEAL.What: Measurement of the quality of services provided by County Counsel.Why: Provides measure of quality and effectiveness of services provided.

The percentage of cases upheld on appeal is over 90%.

Maintain 90% or better success rate.

County Counsel is doing very well in producing quality written opinions that stand up to legal scrutiny.

025 - County Counsel GENERAL GOVERNMENT SERVICES


FY 2008-09 Key Project Accomplishments:■ Represented the County in the recent lawsuit upholding the County's prerogative to manage its budget shortfall through

limited layoffs, thereby avoiding deeper and more painful cuts in the future.

■ Drafted the documents to enable the Treasurer-Tax Collector to provide temporary loans to cash-strapped school districtsthroughout the County.Assisted the County to comply timely with new legal mandates to disclose to the public informa-tion about County employees' compensation, while protecting the County employees whose physical safety would bethreatened if their work locations were disclosed.

■ In the aftermath of devastating fires, assisted Emergency Management in the development of flood and fire evacuationplans and a Post-Fire Debris Flow Plan.Prepared a Statement of Objections demonstrating to the Fullerton Redevelop-ment Agency and City Counsel that an area proposed for redevelopment was not, in fact, blighted, thereby saving over $7million in property tax revenue.

■ On behalf of the Public Administrator/Public Guardian, protected elderly residents from abuse and neglect and recovered$2 million wrongfully taken from them by their caregivers or family members.Provided ongoing representation of theSocial Services Agency as it seeks to protect approximately 3,500 abused and neglected children who are dependents ofthe Juvenile Court, including appellate representation resulting in the Juvenile Court's orders being upheld more than 92%of the time in the last fiscal year.

■ Worked with Rancho Santa Margarita and the Endangered Habitats League to settle longstanding dispute over hundredsof acres of County park land, thereby preserving for the public precious open space and sensitive wildlife habitats.

PERCENTAGE OF MENTAL HEALTH CASES WON OR RESOLVED WITH APPROVAL OF CLIENT.What: Measurement of the quality of services provided by County Counsel.Why: Provides measure of quality of services provided.

90% won or resolved. Maintain 90% or better rate of success.

County Counsel is doing very well.

PERCENTAGE OF GENERAL LITIGATION CASES WON OR RESOLVED WITH APPROVAL OF CLIENT.What: Measurement of quality of services provided by County Counsel.Why: Provides measure of quality and effectiveness of services provided.

Over 90%. Maintain 90% or better rate of success.

County Counsel is doing very well.






Executive Management - Provides executive managementoversight for department. The County Counsel attendsBoard of Supervisors' meetings and provides legal servicesto the Board of Supervisors and Department Heads. Execu-tive Managers perform the most complex legal tasks andadvise members of the Board of Supervisors and their staffand department heads.

Litigation & Mental Health/Probate Division - Theseteams provide centralized oversight for civil litigation activi-ties of the County as mandated by Government Code sec-tions 26521 and 27642. The General Litigation teamrepresents the County in litigation and supervises litigationthat is assigned to outside counsel. The Mental Health/Pro-bate team provides litigation and some advisory services tothe Public Administrator/Public Guardian.

Child Protection, Public Service & Facilities - The ChildProtection Trial Team and the Child Protection AppealsTeam represent the Social Services Agency in Juvenile Courtcases concerning abused, abandoned, molested or neglectedchildren in both the trial court and on appeal. The attorneyson the Development and Facilities Team provide legal adviceto OC Public Works, OC Community Resources, OC Wasteand Recycling and OC Dana Point Harbor. The attorneysdraft and review CEQA, public works, land use, flood, roadsand Harbors Beaches and Parks contracts, leases, licenses,permits, deeds and conveyances, and franchises.

Department Administration Services - The primary func-tion of the Administrative Support team is providing admin-istrative and clerical support for County Counsel attorneys.Responsibilities include: direct secretarial support to theattorneys, law library support and resources, humanresources functions, budget, records management, com-puter systems and network administration, accounting,safety, and purchasing. The Team is comprised of thirty-foursupport staff, including the Administrative Manager II.

Law Enforcement, Public Finance & Government Srvc -Provides legal advice to the Board of Supervisors, electedofficials and County departments and agencies on publicfinance matters and tax collection issues, conflict of interestissues, and elections.

Ten Year Staffing Trend Highlights:■ Two Attorney III positions were deleted in FY 2009-10.


Department Administration

Services

Litigation & Mental Health/

Probate Division

County Counsel

Law Enforcement, Public

Finance & Government

Services Division

Child Protection, Public

Services & Facilities

Division


025 - County Counsel GENERAL GOVERNMENT SERVICES


■ Two limited term attorney positions were deleted in FY2008-09.

■ One Legal Services Assistant was added mid-year in FY2007-08 to support an increased number of court plead-ings that must be prepared and filed by the Office ofCounty Counsel.

■ Two Attorney positions were added in FY 2007-08; oneto support John Wayne Airport construction projectsand one to support increased workload in the legalreview of purchasing agreements.

■ One position was added mid-year in FY 2006-07 to sup-port Social Services Agency (SSA) Juvenile Dependencyadvisory services.

■ One position was added in FY 2006-07 to supportincreased workload in Human Resources Advisory Ser-vices.

■ One position was added mid-year in FY 2005/06 to han-dle the increasing caseload of the Public Administrator/Public Guardian.

■ One position was transferred to CEO Information Tech-nology in FY 2004/05 to provide better utilization ofpersonnel, backup and cross cultivation of skills.

■ Two new positions were added during the FY 2004/05budget hearings. One position was added to respond toan increase in work for the Sheriff-Coroner. The otherposition was added to provide additional support andreduce the attorney caseload in the area of SSA/JuvenileDependency.

■ No new positions were added in 2003/04 or in FY 2002/03.

■ One position was added in FY 2001/02 in response toclient department request for additional service in thearea of Health Care Agency special education and juve-nile client issues.

■ Twenty positions were added in FY 2000/01 in responseto client department requests for additional services inthe areas of SSA/Juvenile Dependency, litigation sup-port and for CSA/Public Administrator-Public GuardianLPS/Probate.

■ Five positions were added from FY 1995/96 to FY 1999/00 to meet increased service requests by client depart-ments.

Budget Summary


County Counsel will continue to improve efficiencies, effec-tiveness, and economies within the department through useof technology for communications, document review andproduction and legal research. The Office has aggressivelyengaged staff in identifying any and all possible cost savingsthat do not compromise our ability to provide the currentlevel of service. This includes careful timekeeping to capturebillable time and identification of new revenue sources. Withthe financial challenges the department faces, County Coun-sel will continue to improve our timekeeping and to look fornew revenue sources. The Office of County Counsel is dedi-cated to the principle that thoughtful, credible and ethicallegal services support the County's strategic initiatives andlead to fewer lawsuits, lower liability costs, better servicesand better County government.


Two reduce level of service augmentations in Litigation ser-vices have been submitted to meet Net County Cost. CountyCounsel is requesting both reduce level of service augmenta-tions be restored in the FY 2009-10 base budget. If the aug-mentations are not restored, County Counsel would beunable to maintain the current level of service. The longterm effects of fewer litigation attorneys would result inincreased use of outside counsel.




Detailed budget by expense category and by activity is presented for agency: County Counsel in the Appendix on page A38

Highlights of Key Trends:■ With the decline in real estate values, the Clerk of the

Board is experiencing a significant increase in assess-ment appeal filings. Continued property value declineswill likely result in greater number of appeals filed dur-ing the 2009 filing period which begins July 1, 2009.

■ Due to the challenging financial times the County is fac-ing, we anticipate an increase in litigation, as evidencedby the escalation of workloads resulting form cases filedagainst the County due to reduction of County servicesas well as labor law proceedings and legal actions.

Approved Budget Augmentations and Related Performance Results:

Unit Amount Description Performance PlanBRASS

Ser.

Increase Net County Cost for On-Going LitigationAmount:$ 1,150,000

Increase in Net County Cost to pay for outside legal services costs.

County Counsel will use the increase in Net County Cost to only pay for outside counsel invoices.

1626





Total Positions 105 103 103 101 (2) -1.94

Total Revenues 1,775,921 1,767,510 1,762,795 2,452,000 684,490 38.73


Net County Cost 9,250,489 11,579,199 10,337,424 9,444,230 (2,134,969) -18.44


No. Agency Name Executive ManagementLitigation & Mental

Health/Probate DivisionChild Protection, Public

Service & FacilitiesDepartment

Administration Services

Law Enforcement, Public Finance & Government

Srvc Total

025 County Counsel 377,938 4,504,291 544,131 3,663,337 2,806,533 11,896,230

Total 377,938 4,504,291 544,131 3,663,337 2,806,533 11,896,230

031 - Registrar of Voters GENERAL GOVERNMENT SERVICES


031 - REGISTRAR OF VOTERS

031 - Registrar of Voters

Operational Summary

Mission:

To ensure the integrity of elections in a uniform, consistent,accessible, and cost effective manner.

Strategic Goals:■ The Registrar of Voters intends to utilize and maximize the voter registration and poll worker data we work with on a

daily basis to improve efficiencies.

■ In an effort to provide outstanding cost-effective election services to the County of Orange the Registrar of Voters will con-solidate communications into one unifying message.

■ To enhance the voting experience in the polling place by providing options, such as Vote-by-Mail, to voters.

FY 2008-09 Key Project Accomplishments:■ Improved poll worker database allowing for more efficient volunteer support.

At a Glance:



Total Final FY 2009-2010 11,305,185






DETERMINATION OF CUSTOMER NEEDS RELATED TO THE VOTER REGISTRATION AND VOLUNTEER DATABASE.What: Measure to determine the level of quality service provided to poll workers.Why: Customers feedback allows the department to review effective and efficient procedures.

Customer satisfaction survey to be completed online by poll workers.

Increase overall rating and evaluate improvement efforts.

Implemented in April 2009. Survey results will be evaluated and identify areas to improve service.

THE NUMBER OF REGISTERED VOTERS LISTED AS VOLUNTEERS IN THE DEPARTMENT'S DATABASE.What: Complete customer surveys regarding additional needs from the registration and volunteer database.Why: Improve efficiencies of use of the database information.

Request proposal for voter registration and poll worker database using new survey data from internal and external customers.

Ramp up volunteer recruitment through the use of the brochure for the gubernatorial election cycle of 2010. Build on successful MyBallot and corporate sponsorship programs.

ROV will identify a project manager to gather information from the Department's internal and external customers.

NUMBER OF PERMANENT VOTE-BY-MAIL VOTERS.What: The percent of voters choosing to vote-by-mail versus vote at a poll site.Why: Decreases number of voters going to poll sites thereby reducing lines and time spent at the polls.

Permanent vote-by-mail voters listed meets or exceeds 50% of total voter registration with one-time vote-by-mail applications included.

Permanent vote-by-mail voters listed meet or exceed 50% of total voter registration with one-time vote-by-mail applications included.

The campaign has increased the percentage of citizens voting by mail thereby reducing lines at poll sites.The number of registered voters increased by 69,554 voters between 12/06 and 6/08. The targeted campaign increased the number of vote-by-mail requests by 43,184 in same time period.


GENERAL GOVERNMENT SERVICES 031 - Registrar of Voters

■ Received $3.8 million from Help America Vote Act (HAVA), a federal grant, to improve direct record electronic voting sys-tem.

■ Improved customer service allowing voters to take a brief automated survey following their telephone inquiries.

■ At the direction of the Board of Supervisors, selected through a Request for Proposals process and implemented an Elec-tronic Candidate Filing Solution.

■ Purchased new mailing equipment to meet the increased demand for Vote-by-Mail ballot processing.

■ Advertised a successful Vote-by-Mail campaign which increased vote-by-mail requests and registered voters.

■ Promoted a successful MyBallot program for high school students to be involved in the elections process by classroomand practical training. Approximately 128 high school students assisted as a poll worker in the November 4, 2008 GeneralElection.

Registrar Of Voters - Oversees all functions of the depart-ment.

Administrative Services - Provides purchasing, humanresources, fiscal management, and budget support.

Election Services - Recruits poll sites and poll workers.Maintains community alliances with businesses in OrangeCounty.

Information & Technology - Maintains election and dis-trict data bases/programs, voter file, GIS, 5 LANS as well asall election-related hardware. Manages the mapping of pre-cincts. Stores, inventories and distributes voting equipmentand supplies.

Candidate & Voter Services - Provides information andservices to candidates, campaigns and voters. Manages voterregistration process, and voting alternatives such as Vote-by-Mail and Early Voting.

Community Outreach - Provides a consistent messagefrom the Registrar of Voters to the public via internet, print,and electronic media concerning elections issues. Providescommunity outreach activities to language based segmentsof the Orange County community. Ensures accurate transla-tion of all election materials.

Special Projects & Legislative Services - Provides legisla-tion services. Maintains legislative affairs, as needed, withnew or revised election mandates. Manages special projectsas required by Registrar of Voters.


Information and

TechnologyElection Services

Special Projects and

Legislative Services

Registrar of Voters

Administrative

Services

MapsWarehouse

Candidate and Voter

Services

Polls/Recruitment

Community Outreach


031 - Registrar of Voters GENERAL GOVERNMENT SERVICES


Ten Year Staffing Trend Highlights:■ The Registrar of Voters Department was a budget unit

within the General Services Agency with a staff as highas 58, which decreased to 29 in FY 1995-96 as a result ofthe bankruptcy.

■ In September 2001, the Board of Supervisors approvedthe Registrar of Voters strategic plan and increasedstaffing to 50.

■ In July 2005, the department was reorganized to reflectthe County's priorities of servant leadership andemployee development with no net increase in posi-tions. The new organizational structure reflected anadaptation of existing positions to changes in the tech-nical and legislative/regulatory environment of elec-tions operations.

■ Continuing legislative mandates and a rapid shift totechnology based solutions created the need for addi-tional staffing. These needs are usually managed bytemporary staffing methodologies such as Extra Helpand Limited Term positions. However, for staff directlyinvolved with the technological systems, extensivetraining and practice is required to keep the systemscompliant and working. Therefore, two positions in theInformation Technology area were added in 2006.

■ In FY 2007-08 one Buying Technician position wasadded for purchasing support. Mid year of FY 2007-08two positions were deleted as part of the 07-08 budgetreduction plan. Mid year FY 08-09, one Staff Specialistposition and one Office Specialist position were leftunfilled as part of the 08-09 budget reduction plan.

■ Staffing has remained constant over the last severalyears, in spite of increased regulation and mandates,public visibility and service demands, and increasingfrequency of elections. Needs for additional subjectmatter expertise have been met through reclassificationof existing positions resulting in no net increase of posi-tions.

Budget Summary


The Registrar of Voters continues to strive to meet its ever-increasing responsibilities within Net County Cost limits.


Detailed budget by expense category and by activity is presented for agency: Registrar of Voters in the Appendix on page A44

Highlights of Key Trends:■ The Registrar of Voters continues to conduct efficient

and successful elections.

■ The number of Registered Voters and Vote-by-Mailrequests continue to increase.

■ Difficulties in recruiting poll workers demands innova-tive approaches.






Total Revenues 2,790,117 20,232,271 15,737,470 537,500 (19,694,771) -97.34


Net County Cost 13,858,810 3,766,929 3,497,845 10,767,685 7,000,756 185.85


GENERAL GOVERNMENT SERVICES 031 - Registrar of Voters


No. Agency Name Registrar Of VotersAdministrative

Services Election ServicesInformation & Technology

Candidate & Voter Services

Community Outreach

Special Projects & Legislative Services Total

031 Registrar of Voters 254,766 1,113,284 4,461,366 3,515,506 1,184,252 602,809 173,202 11,305,185

Total 254,766 1,113,284 4,461,366 3,515,506 1,184,252 602,809 173,202 11,305,185

050 - Office Of The Performance Audit Director GENERAL GOVERNMENT SERVICES


050 - OFFICE OF THE PERFORMANCE AUDIT DIRECTOR

050 - Office Of The Performance Audit Director

Operational Summary

Description:

The mission of the Office of the Performance Audit Directoris to independently and objectively assess the performanceof County of Orange operations and programs and providethe Board of Supervisors and County Executive Managementwith reliable, insightful, and useful recommendations tomake sound business decisions.

Strategic Goals:■ Improve County operations and programs

■ Promote accountability and responsibility to the public we serve

FY 2008-09 Key Project Accomplishments:■ Completion of the audit of overtime at the Orange County Sheriff ’s Department, which identified several operational

improvements in terms of how overtime is assigned, tracked, and monitored. In addition, this audit identified approxi-mately $3 million of potential annual savings, contingent on Sheriff ’s Department actions.

■ Completion of a full performance audit of Correctional Medical Services provided by the Health Care Agency in OrangeCounty jails. This audit identified several areas of risk exposure to the County and provided the Health Care Agency witha blueprint for how to mitigate these risks going forward. This audit also identified approximately $2.7 million of potentialannual savings, contingent on Health Care Agency and Sheriff ’s Department actions. By the end of FY 2008-09, a full per-formance audit of the Orange County Planning and Development Services will be completed. This audit will focus heavilyon customer service and the current time and materials charging system.

At a Glance:



Total Final FY 2009-2010 725,330




Office of the Performance

Audit Director

Department of

Performance

Audits


GENERAL GOVERNMENT SERVICES 050 - Office Of The Performance Audit Director

Office Of The Performance Audit Director - As directedby the Board of Supervisors, the Office’s performance audi-tors conduct two types of audits: (1) performance audits,and (2) non-audit/advisory services. Each audit will focuson efficiency and effectiveness in meeting stated organiza-tional goals and objectives in an effort to optimize resourceallocation, improve business processes, enhance manage-ment techniques, and establish results-orientated strategicplanning.

Ten Year Staffing Trend Highlights:■ FY 07-08-The Office of the Performance Audit Director

was established in January of 2008 with a staffing levelof three.

■ FY 08-09- Two new positions were added through theFY 08-09 budget hearings.

Budget Summary


The Office of the Performance Audit Director's function is toassess the effectiveness and efficiency in County agenciesand departments in order to assist them in achieving CountyStrategic Priorities. The Office also provides decision-mak-ing information to the Board of Supervisors regardingCounty operations and resource allocations.


Detailed budget by expense category and by activity is presented for agency: Office Of The Performance Audit Director in the Appendix on page A63

Highlights of Key Trends:■ FY 2008-09 was the first year of full operation for the

Office of the Performance Audit Director.

■ In addition to complying with CEO budget reductionrequests, the Office has also tightly controlled spendingduring FY 2008-09. As a result, spending for FY 2008-09is projected to be $100,000 (or 13.6%) under budget.







Net County Cost 215,853 735,000 564,432 725,330 (9,670) -1.32

054 - Human Resources Department GENERAL GOVERNMENT SERVICES


054 - HUMAN RESOURCES DEPARTMENT

054 - Human Resources Department

Operational Summary

Mission:

Our mission, as the County's Human Resources Department,is to foster business and customer partnerships, provideexceptional customer service, and to proactively lead in thecreation and use of effective organizational systems within adynamic and diverse environment.

Strategic Goals:■ Negotiate and implement twelve (12) labor contracts. Maintaining a competitive employment package is important in

attracting, retaining and developing talent. Negotiating in good faith with labor organizations, especially during hard eco-nomic times, ensures that this is done even if salary and benefits increases are not possible.

■ Develop a Countywide Outreach Plan that will create an enhance community network with an understanding of the bene-fits of working for the County of Orange. Having such a Plan will enhance our ability to attract and retain talent over thelong term.

■ Enhance relationships and increase cooperation with federal and state compliance agencies (EEOC & DFEH) by establish-ing a "refer back" agreement to reduce number of formal complaints filed and cases sent to accusation, thereby reducingpotential county legal liability.

■ Position Action Work Roll Out to standardize and automate recruitment business practices.

■ Receive Board direction on an Advantage system. An upgraded Advantage system would provide the County with a sys-tem that utilizes current technologies and reduces operating expenses.

At a Glance:



Total Final FY 2009-2010 3,830,051






NEGOTIATE AND IMPLEMENT TWELVE (12) LABOR CONTRACTSWhat: Negotiate and implement twelve (12) labor contractsWhy: A competitive employment package is important in maintaining, retaining & developing talent.

New 1. Review previous negotiations notes2. Meet with various stakeholders to discuss the current contracts impact on budget, operations, quality and productivity3. Generate wage and benefits data4. Present recommendations to the Board of Supervisors for negotiation parameters

New


GENERAL GOVERNMENT SERVICES 054 - Human Resources Department

FY 2008-09 Key Project Accomplishments:■ Developed and maintained in depth- knowledge of customer Agencies' operations.

■ The Human Resources Department's director met with each department and agency head. Additionally, each departmentand agency is assigned a Service Team Manager to assist with their HR operational issues and provide high-level support.The departments and agencies have freedom of access to these representatives and regular site visits are made to identifypotential issues and provide guidance. Further, HRD management has attended meetings with the departments andagencies in an effort to advance HRD's understanding of their businesses. Finally, a monthly Human Resources leadershipforum is held to discuss current business opportunities and issues. The goal is to provide a forum for the exchange ofideas. HRD utilized this forum to solicit feedback into its 2009 business plan.

DEVELOP A COUNTYWIDE OUTREACH PLAN (RECRUITING)What: An Outreach Plan will enhance our ability to attract and retain talent over the long term.Why: Create an enhanced community network that understands the benefits of working for Orange County.

New Work with the Recruitment Task Force and other Department HR representatives to:1. Develop and administer a countywide Outreach Survey2. Conduct an outreach gap analysis3. Develop an Outreach Plan with associated timeline/milestones

New

ENHANCE RELATIONSHIPS AND INCREASE COOPERATION WITH FEDERAL AND STATE COMPLIANCE AGENCIES.What: Demonstrate the County's proactive commitment to equal employment opportunityWhy: Manage anticipated increase of EEO complaints & decrease number cases involving litigation

New 1. Educate federal and state agencies' mgmt & staff on the County's commitment to EEO2. Gain a better understanding of the federal & state compliance agencies' expectations and investigative process3. Educate federal & state agencies' to the County's EEO practices & enforcement standards

New

POSITION ACTION WORKFLOW ROLL OUTWhat: Position Action Workflow Roll OutWhy: This effort will standardize and automate recruitment business practices

New 1. Develop Work Breakdown Structure with schedule2. Communicate plans and expectations to the customer base3. Implement Position Action Work within a phased effort

New

RECEIVE BOARD DIRECTION ON AN ADVANTAGE SYSTEM UPGRADEWhat: County business demands are increasing pressure to move away from the current Advantage system.Why: An upgraded Advantage system would utilize current technologies & reduce operating expenses

New 1. Complete system upgrade fit analysis2. Negotiate upgrade contract with system vendor3. Present material to the Board

New






■ Provided leadership in the creation and delivery of Human Resources knowledge and systems to assist County depart-ments in developing and achieving exceptional employee performance.**The department prioritized policies and proce-dures that needed to be changed and/or updated. The following policies were updated and are now posted on thedepartment's website:

1. Administrative Leave2. Catastrophic Leave3. Military Leave4. Working Retiree5. Leave of Absence Without Pay6. California Public Records Act Redaction Request Procedure

■ Implemented online EEO/disability management training for executives, managers, supervisors, and non-managementemployees.

■ A Request for Proposal (RFP) was released for the services required within this goal. A vendor was selected from this pro-cess. HRD has received funding to train executive management and supervisors. The selected vendor has completed the"Prevention of Workplace Harassment" portion of the training and in the process of completing the "Reasonable Accom-modation of Disabilities" portion. The department plans to roll out the training by the end of March, 2009.

■ Brought the PAW II effort to a conclusion that provides the greatest business benefit. The business model was completedand received the CAPS Steering Committee's approval to move forward with the roll out. This roll out is underway andscheduled to be completed March 31, 2009.

Human Resources Department - The Human ResourcesDepartment (HRD) was reestablished as a stand alonedepartment in January, 2004. The shift was designed toimprove the County's, as well as its agencies and depart-ments', effectiveness of operations while increasing efficien-cies.

The department is arranged around five internal functions:Employee Benefits, Services and Support, Human ResourcesAdministration and Employee Relations, Equal EmploymentOpportunity, and an internal Information Technology group.

EMPLOYEE BENEFITS: Strategic partner with the Board ofSupervisors, CEO/Finance, and departments in the develop-ment of Countywide benefits strategies; manages and moni-tors all employee retiree benefits programs including thoseassociated with medical, dental, disability, defined contribu-


Human Resources

Department

Human Resources/

Employee Relations

Services & Support

Human Resources

Administration

Employee Benefits

(056)

Insured Health Plans ISF (290)

Unemployment Insurance ISF

(291)

Self-Insured PPO Health Plans

ISF (292)

Self-Insured Benefits (298)

Life Insurance/AD&D ISF (29Z)

Deferred Compensation

Reimbursement (14F)



tion, unemployment insurance and Employee AssistanceProgram (EAP); negotiates and oversees provider and actu-arial contracts; conducts research and makes recommenda-tions on benefits related issues, alternatives and legislation;develops, initiates and administers benefits related technicalsystems.

SERVICES AND SUPPORT: This division includes classifica-tion, recruiting, labor relations and discipline administra-tion with the delivery of direct service to the departmentalHR management. Each of the HRD service teams is assignedspecific departments and serves as the central point of con-tact for consultation and support on all HR matters. Teammembers also coordinate strategy development and imple-mentation with countywide functions such as EEO, CountyCounsel and the Auditor/Controller. This division maintainsthe County's classification and recruiting systems; partici-pates in labor contract negotiations, administers theCounty's discipline and appeals programs, audits personneland recruiting systems transactions for compliance withpolicies and procedures.

HUMAN RESOURCES ADMINISTRATION ANDEMPLOYEE RELATIONS: The manager to this unit serves asthe Assistant to the HR Director and provides critical sup-port on high level matters for and oversees a staff that pro-vides direct support to the HR Director on critical projects;handles Department administrative functions including:budget, contracts, purchasing, and manages HR related pro-grams including DOT and related Drug Testing, DMV PullNotice, and fingerprinting.

EQUAL EMPLOYMENT OPPORTUNITY OFFICE: Managescompliance of County EEO policies and procedures; consultswith departments on case issues and mandated disabilityrelated interactive process; provides liaison to State and Fed-eral regulatory agencies on case resolution; counselsemployees with concerns/complaints relative to EEO issues;coordinates Countywide EEO training programs; coordi-nates annual filing of County EEO statistics with regulatoryagencies and reviews/comments on HR and EEO legislation.

INFORMATION TECHNOLOGY: Manages the development,implementation, maintenance, and overall best practicesoperations of County HR systems. Major projects for 2008include: upgrade or replacement of the AHRS system, Per-sonnel Action Workflow II roll out, and the possible rebid ofthe online recruitment system.

Ten Year Staffing Trend Highlights:■ FY 04/05 - As a result of the CEO reorganization, the

Human Resources function and an accompanying 20positions (plus 11 Employee Benefits positions) formedthe new department in FY 04-05.

■ FY 05/06 - In July 2005, the human resources andemployee relations functions were consolidated underone organizational structure to better align resourcesand functions to improve service delivery. The restruc-ture resulted in a net increase of 9 positions.

■ FY 06/07 - An Administrative Manager II position wasadded to serve as the Project Manager for the HR andPayroll Visioning Project.

■ FY 07/08 - In December 2007, an Administrative Man-ager II position was deleted as a result of the VacantPosition Freeze approved by the Board of Supervisors.

■ FY 08/09 - No change in position count

Budget Summary


The Human Resources Department works to advanceOrange County's strategic initiative of building for the futureby delivering core services to the County within four keyareas: as the Human Resources corporate leader; in deliver-ing employee excellence; recommending, supporting, and




implementing policies and procedures to/and for the Boardof Supervisors and the County Executive Officer; and inpartnering with the County's agencies, departments, andother stakeholders to attract and retain a qualified work-force.

1) As the Human Resources Corporate Leader

The Board of Supervisors, County Executive Office and theCounty's agencies look to the Human Resources Departmentto act as a corporate leader within the Human Resources andBenefits environment. In fulfilling this core service obliga-tion, the Department has a variety of responsibilities. Theseresponsibilities include: management of labor contracts,labor relations consulting, overview of external regulatorycompliance, dispute/grievance resolution, management ofCountywide Benefits Programs, and management of busi-ness processes associated with the information systems. TheCounty relies upon HRD within these roles.

2) Define and Support Employee Excellence

Agencies and departments expect the Human ResourcesDepartment to maintain classification, pay, and equity stan-dards that allow them to recruit, develop, and promote topcandidates. HRD ensures that wages and benefits are com-petitive and that opportunities for skill maintenance andenhancement are available. This environment is conduciveto the employees' professional growth with challenging workand opportunities for advancement. Consequently, agenciesare able to meet their goals and establish mid- to long-rangesuccession plans.

3) Recommend/Support/Implement County Policies & Pro-cedures

The Human Resources Department seeks to integrate peo-ple, systems and business processes into knowledge thatempowers the County. HRD must review the approach andthe channels that are used in addressing the HumanResources community and the manner in which its repre-sentatives address these customers.

4) Agency/Stakeholder Partner

The County of orange employs 18,000 employees represent-ing a broad range of occupations that deliver programs andservices to the community. The County's agencies anddepartments, as well as other customers and stakeholders,look to partner with the Human Resources Department toimplement employee programs and initiatives that enablethe County to attract and retain its highly-skilled and diverseworkforce in a rapidly changing environment. The agenciesand departments need to preserve this diverse work force ina cost effective manner. HRD is expected to develop andimplement competitive strategies in the areas of recruiting,benefits, compensation, classification, and performancemanagement. Finally, the agencies and departments counton the Human Resources Department to provide the frame-work in which to operate by setting and implementinghuman resources-related business policies and procedures.


The Human Resources Department has not added any newprograms. To keep costs down for FY 2009-2010, the depart-ment eliminated extra help positions, decreased allocationfor special projects, and reduced budget in Services and Sup-plies by reviewing and consolidating staff memberships,subscriptions, attendance/participation in professional sem-inars/conferences, and the need for training consultants.


Detailed budget by expense category and by activity is presented for agency: Human Resources Department in the Appendix on page A65






Total Revenues 16,557 0 20,907 39,000 39,000 0.00


Net County Cost 3,948,806 3,920,913 3,655,290 3,791,051 (129,862) -3.31



Highlights of Key Trends:■ Due to the current economic recession and budget

shortfall, recruitment efforts will decrease in 2009;however, this environment will not last forever. Recruit-ment efforts will need to be undertaken when the envi-ronment improves. The department will need to beready and will need to have its name in the marketplace.HRD continues to investigate improved methods ofmarketing itself and for better ways of enticing potentialapplicants to the County for employment,

■ Today's workforce has an increasing desire for profes-sional development and recognition of excellence in theworkplace. The new workforce also expects to use cut-ting edge technology and work for an organization thatoperates with employment policies that permit a greaterwork/life balance. The majority of new workforceentrants expect to have multiple careers and employersin their lifetimes.

■ The retention of highly-skilled employees in specificoccupations requires that time and attention be paid tocompensation and working conditions so that theCounty remains an attractive employer. HRD is workingwith the County's agencies and departments in an effortto identify methods of retaining current employees andincreasing efficiencies overall through a revision of theselection rules.

■ As the County's workforce continues to age and retire,the County will experience a critical loss of expertiseand knowledge while the job market for skilled employ-ees becomes increasingly more competitive. Having

evolved over time, many of these positions will be rela-tively difficult to fill because the skill requirements areunique to the County. The corporate knowledge thatdeparts with the employee will be irreplaceable in thenear term. The high rate of employee retirements willcreate more work in the recruitment and professionaldevelopment areas.

■ The cost of living in the County, particularly the cost ofhousing, further reduces the availability of skilled staff.Often they are attracted to other parts of the state andthe country the relationship between compensation andcost of living is more favorable. HRD continues toresearch alternative means of attracting skilled talent.

■ The County's employees must operate in a complex,rapidly changing, information-rich, and technologi-cally-sophisticated environment. This requires continu-ing investment in technical solutions and the trainingand development of staff.

■ The Human Resources Department faces a legal envi-ronment that is dynamic and rapidly changing. Thisfact places pressure on all sides of the departmentincluding Benefits. Mandates are generated both inter-nally and externally.

■ The Human Resources Department is involved withseveral large IT projects in 2009. These projects includean upgrade of the Advantage Human Resources/PayrollSystem 2.x, implementing new procedures that auto-mate business processes, and rebid of the County'srecruitment system.

059 - Clerk-Recorder GENERAL GOVERNMENT SERVICES


059 - CLERK-RECORDER

059 - Clerk-Recorder

Operational Summary

Mission:

The Clerk-Recorder Department's mission is to provide areliable repository for public records and to provide efficientservice to the public in a way that exemplifies the higheststandard of courtesy, cost effectiveness, and ethical perfor-mance. Public records will be readily accessible in a conve-nient manner while safeguarding confidentiality and thesecurity of those records.

Strategic Goals:■ Provide Courteous and efficient service that is easily accessible to the public.

■ Utilize technology to improve the convenience and efficiency of recording official documents and records.

■ Maintain the physical and electronic security of public records and safeguard sensitive personal information contained inpublic records.

At a Glance:



Total Final FY 2009-2010 10,991,908






ACHIEVE A 90% OR BETTER RATING OF "OUTSTANDING" OR "GOOD" ON CUSTOMER SATISFACTION SURVEY.What: Measures customer satisfaction with department service and performance.Why: Providing quality customer service is the department's top priority.

Customer satisfaction survey results are more than 90%

Achieve a 90% or better positive rating on customer satisfaction surveys.

Customers indicate the department is providing efficient and excellent customer service.

ACHIEVE A RATE OF AT LEAST 50% FOR ELECTRONICALLY RECORDED DOCUMENTS.What: Measures how effective Department is using technology to efficiently record official documents.Why: It improves the efficiency of department operations and faster service to department customers

Electronic recordings were 66% of total recorded documents.

Achieve a rate of 68% for electronically recorded documents.

The Department is expanding its use of technology to provide faster and more efficient service.

MAINTAIN AN ACCURACY RATING OF 99.4% OR BETTER ON RECORDED DOCUMENTS.What: Measures the accuracy of Department’s recording services.Why: Demonstrates the quality of department services, and increases customer confidence.

Department achieved an accuracy rate of 99.7% on recorded documents.

Achieve at an accuracy rate of at least 99.5% on recorded documents.

The department is maintaining a high accuracy rate with its recording services and it is taking measures to protect against identity theft.


GENERAL GOVERNMENT SERVICES 059 - Clerk-Recorder

FY 2008-09 Key Project Accomplishments:■ Opened a new department branch office in downtown Fullerton which provides a convenient alternative for north county

residents to access department services

■ Developed and implemented a new system for filing a Fictitious Business Name (FBN)

■ Recorded over 600,000 official documents, of which 66% were submitted and processed electronically

■ As a fraud prevention measure, the department mailed out over 80,000 courtesy notices to property owners to let themknow activity had been recorded against their property.

■ Issued 21,000 Marriage Licenses and performed over 8,500 marriage ceremonies.

■ Expanded the department web site to improve available internet services. The website is projected to receive almost1,000,000 hits in FY 08-09.

County Clerk-Administration - The Clerk-Recorder is anelected official who, with the administrative staff, directs theactivities of the department in satisfying the needs of thepublic regarding the recordation of various real propertydocuments, filing of birth, death and marriage records, issu-ing marriage licenses, and filing Fictitious Business Namesand other documents, and oversees the Orange CountyArchives

Recorder Functions - The Clerk-Recorder Department isresponsible for the examining and recording of official docu-ments presented for recording that deal with establishingownership of land in the county. The department maintainsa permanent record and index of these documents for publicaccess.

Clerk Functions - Clerk Services- The department main-tains and provides certified copies of birth, death, and mar-riage certificates within the county. In addition, thedepartment issues marriage licenses, performs civil mar-riage ceremonies, files fictitious business name statements,processes passport applications, files notary public oathsand bonds, and registers professional photocopiers, processservers, and unlawful detainer assistants.

Orange County Archives- The Clerk-Recorder Departmentoversees the Orange County Archives, which is the reposi-tory of the county's historical documents. The Archivesidentifies, catalogs, protects and provides access to countyrecords and other materials that are of long term, historicalvalue. Volumes of historic photographs, correspondence,property records, artifacts and numerous materials on thehistory of Orange County are made accessible to the public,researchers and historical organizations.

Information Services - This division provides technicaland user support for all automated systems within thedepartment. Staff provides short and long term automationplanning, systems installation, user training, systems main-tenance, and telecommunications support.

Financial Services - This division is responsible for the fis-cal integrity of the department through the assessment offunding needs and fiscal issues that may impact departmentactivities. This includes budget planning, development,monitoring and implementation; oversight of expendituresand revenues; purchasing and deposit of funds; and payroll.


Clerk FunctionsInformation

ServicesFinancial Services

Recorder

Functions

County Clerk-Recorder

059 - Clerk-Recorder GENERAL GOVERNMENT SERVICES


Ten Year Staffing Trend Highlights:■ No new positions were added in FY 2008-2009, and no

new positions are requested for FY 2009-2010.

■ The North County Branch Office was staffed using exist-ing employees.

Budget Summary


The Clerk-Recorder Department will continue to review andimplement operational efficiencies, maximize customer ser-vice and contribute revenues in excess of expenses to theCounty General Fund.


Detailed budget by expense category and by activity is presented for agency: Clerk-Recorder in the Appendix on page A73

Highlights of Key Trends:■ Although total recordings are down due to weakness in

the real estate market, the percentage of electronicrecordings continues to increase.






Total Positions 102 102 102 102 0 0.00

Total Revenues 20,040,133 17,676,511 15,709,485 11,991,908 (5,684,603) -32.16


Net County Cost (6,483,248) (5,250,416) (3,835,358) (1,000,000) 4,250,416 -80.95


No. Agency NameCounty Clerk-Administration Recorder Functions Clerk Functions Information Services Financial Services Total

059 Clerk-Recorder 4,474,146 3,368,380 1,381,177 1,196,250 571,955 10,991,908

12D Clerk Recorder's Special Revenue Fund

8,861,910 0 0 0 0 8,861,910

Total 13,336,056 3,368,380 1,381,177 1,196,250 571,955 19,853,818


GENERAL GOVERNMENT SERVICES 12D - Clerk Recorder's Special Revenue Fund

12D - CLERK RECORDER'S SPECIAL REVENUE FUND

12D - Clerk Recorder's Special Revenue Fund

Operational Summary

Description:

The Clerk-Recorder Special Revenue Fund was establishedin FY 2004-05 to better control specific revenues generatedfrom services provided. The Fund is 100% revenue off-set byfees paid from recordation of real property transactions andfrom the collection of certified copy requests of birth, death,and marriage records.

Enhancement Fund To Clerk-Recorder - Mandated byGovernment Code 27361 to maintain/improve the Depart-ment's information technology including recovery of alloperating costs from Information Systems staffing. Revenueis generated from the recordation of real property transac-tions.

Health Statistics Fund To Clerk-Recorder - Mandated byHealth and Safety Code 103625(f) requires the Clerk-Recorder to collect fees for the purpose of modernization ofvital record operations and improvements in the collectionand analysis of health-related birth and death certificateinformation. Revenue is generated from the collection of cer-tified copy requests of birth, death, and marriage records.

Micrographics Fund To Clerk-Recorder - Mandated byGovernment Code 2736.4 for the Clerk-Recorder to specifi-cally convert document storage system to micrographics.Although no new revenue is being collected at this time, thebalance of account will provide funding for maintaining/improving recordation of vital information and eligibleactivities.

Budget Summary


Detailed budget by expense category and by activity is presented for agency: Clerk Recorder's Special Revenue Fund in the Appendix on page A127

At a Glance:



Total Final FY 2009-2010 8,861,910







Total Revenues 9,956,261 7,515,885 9,388,074 8,861,910 1,346,025 17.91

Total Requirements 9,851,000 7,515,885 6,340,622 8,861,910 1,346,025 17.91

Balance 105,261 0 3,047,452 0 0 -100.00

074 - Treasurer-Tax Collector GENERAL GOVERNMENT SERVICES


074 - TREASURER-TAX COLLECTOR

074 - Treasurer-Tax Collector

Operational Summary

Mission:

The mission of the Orange County Treasurer-Tax Collector'sOffice is to conduct business in a fair, courteous and profes-sional manner. We are committed to transparency, efficiencyand creating value. We will strive to deliver the highest qual-ity financial and public services at the lowest possible cost tothe taxpayers of Orange County.

Strategic Goals:■ Cost-effectively improve customer services and streamline tax collection processes.

■ Upgrade the Treasury Management System to the most current version available.

■ Begin the test phase of the new Financial Accounting System (FAS) Pilot Project.

■ Increase revenues and reduce operating costs throughout the Department.

■ Continue implementation of the Balanced Scorecard (BSC) program as County pilot department.

■ Ensure the business continuity plan is current and complete.

At a Glance:



Total Final FY 2009-2010 14,556,907






NET INVESTMENT RETURN.What: Obtain a portfolio yield that meets or exceeds the 90-day US T-Bill and money market benchmarks.Why: To continue to provide safe, efficient and effective investment returns for our clients.

Fed reduced target rate to 0.00% - .25%. The OCIP money market portfolios have consistently outperformed the 90-day T-Bill and have returned an equivalent return compared to the money market benchmark.

Position the portfolios in order to increase liquidity and safety. Expectations are for continued low rates as the economy struggles to return to growth.

On target.

ADMINISTRATION FEE CHARGED TO POOL PARTICIPANTS.What: To charge the lowest administration fee possible.Why: To provide a competitive investment return to pool participants with minimum administrative costs.

Administration fee currently at 10.00 basis points (i.e., 0.10%).

Administration fee to remain at 10.00 basis points (i.e., 0.10%).

On target.


GENERAL GOVERNMENT SERVICES 074 - Treasurer-Tax Collector

FY 2008-09 Key Project Accomplishments:■ Completed the upgrade of SunGard Quantum (which is a major component of the Treasury Management System).

■ Established the Business Process Optimization Unit, to focus on maximizing cost recovery and revenues.

■ Implemented Letter Stream I. This is a web-based portal that links directly to the Treasurer-Tax Collector's (TTC) print-ing vendor and allows the TTC to create templates for all of its forms, letters and notices, thus reducing printing costs.

■ The Treasurer-Tax Collector completed the development of eight prototypes for all Tier 1 modules toward the implemen-tation of the new Property Tax Management System.

Treasurer-Tax Collector - Provides centralized treasuryand tax collection services for the County of Orange.

RATING OF INVESTMENT POOLS.What: Maintain highest rating.Why: To assure safest money market practices are being followed.

The County and the Educational Investment Pools retained their highest credit ratings. Moody's: Aaa MR1; Standard & Poor's: AAAm

Retain the investment pools credit ratings of: Moody's: Aaa MR1; and Standard & Poor's: AAAm.

On target.

STATE PROPERTY TAX COLLECTION RATES FOR SECURED AND UNSECURED PROPERTY.What: Exceed state property tax collection rates for Secured & Unsecured prop by minimizing unpaid taxes.Why: To maintain high collection rankings and percentages.

County of Orange collection percentage ratings for Secured and Unsecured taxes exceeded state median. Of the 58 counties in the State, the County of Orange Secured tax collection is 96.5%, with a ranking of 10th. The County of Orange Unsecured tax collection is 98%, with a ranking of 8th.

To continue to exceed the state median.

On target.





Treasury Tax Collector

Treasurer-Tax Collector

Investment ManagementCash ManagementRemittance & CashieringAccounting/Compliance

Collections

Administrative

Services

Information

Technology

Treasurer s Advisory

Committee

Treasury Oversight

Committee

074 - Treasurer-Tax Collector GENERAL GOVERNMENT SERVICES


Treasurer - Responsible for the receipt, custody, deposit,investment and recording of funds for the County, schooldistricts and special districts. Responsibilities may alsoinclude issuance of short-term debt on behalf of the Countyand school districts. In addition, the Treasury Division actsas trustee in connection with unclaimed property.

Investment Management: Provides portfolio management,maintains broker/dealer relations, conducts investment/eco-nomic research, and serves as liaison for oversight commit-tees and custody relation services.

Cash Management: Provide bank-related services and rela-tionship management, cash optimization and forecasting,and financial electronic commerce solutions.

Electronic Commerce: Provides Internet and analog pay-ment options via wire, e-check, credit card and ATM.

Accounting/Compliance: Provides financial reporting, fundaccounting, ledger reconciliation's, bank reconciliation's,investment accounting, compliance services, and accountingfor unclaimed monies.

Remittance & Cashiering: Provides automated remittanceprocessing for all property tax rolls, refund accounting, taxroll accounting and cashiering.

Additionally, the Remittance & Cashiering Division providesthe following services to Animal Care Services: billing;imaging; and remittance processing.

Tax Collector - Responsible for collecting taxes on allSecured and Unsecured property in Orange County. Thisoffice is also responsible for the sale of property subject tothe "power to sell," formerly known as delinquent taxdeeded property. In addition to collecting property taxes, theTax Collector's Office collects Transient Occupancy Taxesand Public Defender judgments.

Collections: Provide centralized tax compliance services forDelinquent Unsecured tax collections, Prior Year Securedproperty tax collections, Public Defender judgment collec-tions, public information services, property tax problempayment processing and general correspondence.

Administrative Division: Provides tax roll reconciliation,purchasing, contract administration, human resources,safety, security and disaster coordination, payroll, budget,facility operations, telephone and network services for allTTC operations.

Information Technology: Provides systems development andmaintenance support for the many treasury and tax collec-tion related applications required for the depositing,accounting and collecting of funds and provides hardware,software, and network maintenance and support to TTCstaff.

Ten Year Staffing Trend Highlights:■ The Treasurer-Tax Collector's (TTC) position count has

remained relatively unchanged during the past threeyears, during which time the Department has continuedto provide efficient and effective investment, cash man-agement and property tax collection services for theCounty, cities, special districts and school districts.

■ Some of the reasons the TTC has been able to realizesignificant operating efficiencies without any signifi-cant staffing increases are: 1) The TTC is a very techno-logically advanced department; 2) As a result of studiesperformed by its Business Process Optimization Unit,the TTC has been enable to utilize staff to assist in vari-ous areas of the department, as needed (i.e., cross-training).

■ Effective July 1, 2009, the TTC transferred five full-timepositions from the Auditor-Controller Collections Unit.The TTC Collections Unit is a larger unit with morerobust tools in place for locating and working with cli-ents, and can assist in improving collection rates for theCounty. The consolidation of the two units will elimi-nate redundancy that exist when a client owes bothtaxes and a debt or fee to the County, as both units pro-



GENERAL GOVERNMENT SERVICES 074 - Treasurer-Tax Collector

vide similar steps of locating and providing notices toclients, processing collections, pursuing court actions,and performing write offs of accounts. The resultingoperational efficiencies will allow for the pursuit ofadditional outstanding items and an expanded effort onall delinquent accounts.

Budget Summary


The Treasurer-Tax Collector (TTC) will continue to supportall service plan goals in support of the County strategic pri-orities.

Specifically, the TTC will continue its efforts to reduce its NetCounty Cost, by focusing on maximizing cost recovery andrevenues. Additionally, the TTC will continue to be proactivein partnering with other county agencies, as it has done withAnimal Care Services, to enable them to achieve operatingefficiencies, and, thus, lower costs, related to remittance pro-cessing.

The TTC will also continue to provide an effective, respon-sive and competitive organizational and operating structure.Additionally, the TTC remains committed to delivering thehighest quality financial and public services to the taxpayersof Orange County at the lowest possible cost.


Significant changes in the base budget include: a) Base bud-get is under NCC limit by $14,300; b) Increase in Salaries &Employee Benefits of $532,794, as a result of negotiated sal-ary increases, and the shift of Optional Benefit Plan andExecutive Car Allowance from Services & Supplies to Sala-ries & Employee Benefits; c) Decrease in Services & Suppliesof $493,998, primarily as a result of a reduction in propertyinsurance premiums; a reduction in postage (due to pre-paid costs); a decrease in Data Processing Services cost; andthe shift of Optional Benefit Plan and Executive Car Allow-ance from Services & Supplies to Salaries & Employee Bene-fits; d) Increase in revenue of $219,731, primarily as a resultof anticipated increases for: Delinquent Tax Roll Advertise-ment Cost and Intergovernmental Revenues.


Detailed budget by expense category and by activity is presented for agency: Treasurer-Tax Collector in the Appendix on page A88

Highlights of Key Trends:■ The Treasurer-Tax Collector has reduced its actual Net

County Cost by 33%, since FY 2006-07.






Total Revenues 13,754,388 13,067,503 14,587,384 12,107,125 (960,378) -7.35

Total Requirements 14,744,928 14,418,577 14,159,054 14,556,907 138,330 0.96

Net County Cost 990,540 1,351,074 (428,329) 2,449,782 1,098,708 81.32


No. Agency Name Treasurer-Tax Collector Treasurer Tax Collector Total

074 Treasurer-Tax Collector 623,897 4,851,506 9,081,504 14,556,907

107 Remittance Processing Equipment Replacement

172,690 0 0 172,690

Total 796,587 4,851,506 9,081,504 14,729,597

107 - Remittance Processing Equipment Replacement GENERAL GOVERNMENT SERVICES


107 - REMITTANCE PROCESSING EQUIPMENT REPLACEMENT

107 - Remittance Processing Equipment Replacement

Operational Summary

Description:

Establish reserves for the replacement of Remittance Pro-cessing Equipment.

FY 2008-09 Key Project Accomplishments:■ The Treasurer-Tax Collector anticipates completing the following projects for Fund 107 in FY 2008-09:

■ Purchase two OPEX 5100 mail extraction machines and one OPEX 3690 machine, to stream-line the functions of mailextraction, imaging and payment processing.

■ Upgrade the current remittance processing software (Image RPS).

Budget Summary


Detailed budget by expense category and by activity is presented for agency: Remittance Processing Equipment Replacement in the Appendix on page A101

At a Glance:



Total Final FY 2009-2010 172,690







Total Revenues 428,323 175,568 58,224 172,690 (2,878) -1.64


Balance 115,568 0 4,396 0 0 -100.00


GENERAL GOVERNMENT SERVICES 079 - Internal Audit

079 - INTERNAL AUDIT

079 - Internal Audit

Operational Summary

Mission:

The mission of the Internal Audit Department (IAD) is toprovide reliable, independent, objective evaluations andbusiness and financial advisory services to the Board ofSupervisors and County executive management. Our role isto assist both parties with their important business andfinancial decisions; as well as to contribute to protecting andsafeguarding the County's resources and assets.

Strategic Goals:■ Assist the Board of Supervisors and County executive management in ensuring the County's assets and resources are safe-

guarded; the County's accounting and financial reporting is timely and accurate; and the County's executive managementhas timely information and relevant analysis for its business and financial decisions.

■ Maintain integrity, objectivity and independence to provide professional internal audits, assurance and attestation ser-vices, and suggested corrective recommendations to our clientele. We report on the County's internal controls, accountingrecords, and financial and business operations through our public audit reports and reviews.

FY 2008-09 Key Project Accomplishments:■ Developed and conducted an annual Audit Plan based on a comprehensive annual Risk Assessment that included input

from the Board of Supervisors and County executive management on identifying risk areas and/or areas of audit interestin their respective department or agency.

At a Glance:



Total Final FY 2009-2010 2,614,933






CLIENT SATISFACTIONWhat: Customer satisfaction surveys measure the value of our audit services and report products.Why: Provides feedback regarding auditors' professionalism, communications, knowledge & recommendations.

Internal Audit Department received an average rating of 4.9 out of 5 in our customer satisfaction surveys.

Achieve an average rating of 4.0 or more in our customer surveys.

IAD continues to receive high ratings of our services.

USEFULNESS OF REPORTSWhat: Management concurrence with audit recommendations measures the usefulness of our report product.Why: Management concurrence with audit recommendations assures validity & reasonableness of our reports.

Achieved management's full or partial concurrence of 99% or better of audit recommendations.

Achieve management's full or partial concurrence of 80% or better of audit recommendations.

IAD continues to receive management concurrence on a high percentage of audit recommendations.

079 - Internal Audit GENERAL GOVERNMENT SERVICES


■ Completed all mandated audits, as well as any audits required by the provisions of contracts and grants, within requiredtimeframes.

■ Provided assessments of critical, high impact business functions by conducting Internal Control Audits and InformationTechnology Audits and making recommendations to improve controls, processes, and efficiency and effectiveness.

■ Maintained a Follow-up Audit process by which all audit recommendations are verified as satisfactorily implemented orremediated.

■ Responded to special requests by the Board of Supervisors and County executive management to address immediateneeds and provide timely responses.

■ Kept the Board of Supervisors, AOC, and County executive management informed of audit issues. Submitted monthlyaudit activity summary reports to the Board of Supervisors.

■ Provided feedback on internal controls in the CAPS+ Implementation focusing specifically on control areas of segregationof duties, reviews and approvals, audit trails, and reconciliations.

■ Followed a recognized internal control framework known as COSO.

■ Followed professional standards issued by the Institute of Internal Auditors (IIA), Government Accountability Office(GAO), American Institute of Certified Public Accountants (AICPA), and Information Systems Audit & Control Associa-tion (ISACA), as applicable.

■ Instructed and trained County executive managers on their ownership of and their responsibility for maintaining effec-tive internal controls.

■ Developed and trained audit staff, and helped them acquire and maintain their professional certifications.

■ Applied best management practices promoted by the Employee Performance Programs (EMAP, P4P, PIP), LeadershipAcademy, and other training as directed by the CEO and County HR.

Planned Audits and Administration - Internal Audit con-sists of seventeen professional audit staff and three adminis-trative staff. Our professional audit team performs the coredepartment function of planning and conducting auditsbased on a comprehensive annual Risk Assessment andrequests from the Board of Supervisors and Audit OversightCommittee. Our administrative team provides fiscal man-agement, procurement and human resources support to thedepartment.


Internal Audit

Planned Audits

and

Administration



Ten Year Staffing Trend Highlights:■ The Internal Audit Department was established as a

separate department independent of the County Audi-tor-Controller by Board Resolution dated April 25, 1995.

■ In 2001, two auditor positions were added for integratedaudits, with an emphasis on the Countywide Account-ing and Personnel System (CAPS).

■ In 2007-08, the Auditor-Controller did not contract withInternal Audit Department to perform the mandatedquarterly Treasury Funds Audits and the biennial Pro-bation Review resulting in a cost applied loss of$138,250. As a result, 2 positions were deleted andtransferred to the Auditor-Controller.

■ In 2008-09, our staffing level remained unchanged;however, due to budget constraints we were unable tofill three vacant positions. In addition, the administra-tive duties of our retired administrative manager wereallocated among professional audit staff.

■ In 2009-10, our staffing level will remain the same.

Budget Summary


Internal Audit will continue to support and assist the Boardof Supervisors and County executive management in theaccomplishment of their strategic business goals and objec-tives. Internal Audit's contribution is testing and reportingon their internal control systems and processes as theserelate to safeguarding the County's assets and resources,prudent and reasonable financial stewardship, accuraterecording and reporting, and achieving the County's goalsand objectives.

Internal Audit is committed to a process of continuouslearning by keeping updated on relevant issues in businessand industry with regard to accounting trends and financialbest practices and applies professional auditing standards toall audit engagements.


FY 09-10 total expenses decrease by $180,530 (6.2%) fromFY 08-09. However, Internal Audit will exceed the CEO's rec-ommended Net County Cost and submitted an augmenta-tion request to restore a minimum level of service. This isdue to the negative NCC growth, and the "historical" vacancyfactor used to project future vacancies (as assigned by theCEO Budget Office) that does not reflect the actual staffinglevels needed. The basis of our request for additional fundsis due to the inaccuracies of the "vacancy factor", a 3%reduction of Net County Cost and reversal of the prior yearaugmentation totaling $175,000. The combination of thesefactors will result in an actual 9% budget reduction, which isthree times larger than the County mandated reduction.

Budget augmentations were requested and approved twice inthe past several years as a temporary solution to meet actualstaffing levels needed for our department. It was noted thatInternal Audit consistently meets the recommended NetCounty Cost because of approved augmentations.




Due to the Countywide financial impact, we were unable tofill one professional audit and two administrative staff posi-tions. The duties of the retired Administrative Manager wereallocated among professional audit staff and resulted in theelimination of 1,400 or about 10% of our annual audit hourswhich translates into at least four planned and Boardapproved audits for the fiscal year.


Detailed budget by expense category and by activity is presented for agency: Internal Audit in the Appendix on page A90

Highlights of Key Trends:■ Dynamic Financial Environment of the County: This

includes managing decreased revenues caused by Statedeficits or economic conditions beyond our control.Such an environment requires flexibility in the annualAudit Plan. As such, the IAD must be ready to respondto unscheduled assignments from the Board of Supervi-sors majority. We estimate hours required for Board ofSupervisors' requested reviews based on history andreserve hours in the Audit Plan specifically for this pur-pose.

■ Staff Retention and Replacement: Because the IAD is asmall department, each of our staff is significant to theaccomplishment of the Audit Plan. The hiring of an ITAudit Manager and addition of IT Audits to our AuditPlan as requested by the Audit Oversight Committeeexpanded our range of audit services.

■ Information Technology (IT) Issues: The pace of tech-nological advancement and the benefits to be realizedby implementing these advances to improve Countybusiness operations is increasing at an acceleratingspeed. As such, Information Technology (IT) Auditscontinue to be an important part of our audit efforts.The IT audit process compliments and may integratewith the Internal Control Audits (ICA). ICAs are auditsthat determine whether controls and processes are inplace over critical business processes, and include an

evaluation of the adequacy and integrity of internalcontrols. We also perform computer assisted audit tech-niques (CAAT). CAATS are automated queries appliedto large amounts of electronic data searching for speci-fied characteristics in the areas of duplicate vendor pay-ments, deleted vendor activity, multiple direct depositsfor payroll checks, and working retiree thresholds. Wealso attend monthly County IT Working Group meet-ings to provide technical advice in the areas of account-ing and auditing, internal controls, governance, riskmitigation, process improvement, and project oversight.In 2008, we hired an IT Audit Manager to enable us toaddress IT issues and perform audits of informationsystem controls and processes. However, budget con-straints have not allowed us to hire, on an as-neededbasis, expert consultants with recognized industryexpertise to provide IT audit assistance, consulting, andin-house training.

■ Financial System Upgrade: The County is upgrading itscore financial system known as CAPS+. Because of theimportance and impact of the CAPS+ system, InternalAudit developed a Memorandum of Understanding(MOU), dated August 28, 2007, with the CAPS SteeringCommittee that specifies IAD's role on the project. TheIAD's role will be to review and provide written feed-back on the various internal control documents devel-oped by the CAPS+ Implementation Project Team toensure the functional processes contain appropriate






Total Revenues 41,513 54,924 53,465 31,880 (23,044) -41.96


Net County Cost 2,765,047 2,849,088 2,642,367 2,583,053 (266,035) -9.34



internal controls. The focus of our reviews will beproper segregation of duties, appropriate functionalreviews and approvals, audits trails related to preserva-tion of source documents and system recording of

reviews and approvals, and sound account reconcilia-tions. We also have a similar role on the Property TaxManagement System (PTMS) Implementation Project.


No. Agency Name Planned Audits and Administration

079 Internal Audit 2,614,933

Total 2,614,933



Documents

PROGRAM IV: GENERAL GOVERNMENT SERVICESbos.ocgov.com/finance/2010FN/p4_all.pdfCounty of Orange 317 FY 2009-2010 Annual Budget GENERAL GOVERNMENT SERVICES 002 - Assessor FY 2008-09