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y i ORANGE COUNTY BDARD OF C�CMIISSxONEPS ACtiCn Agenda ACTION AGENDA ITEM ABSTRACT Item NO.4---1 DEETING DATE February 15, 1983 Subject: Report on Findings of the November 19, 1982 Audit Appeal Hearing Impartment. Finance Public Hearing: yes X nC Attachnient(g) ; Information Contact; Yes Finance Director Phone Nunber: 732-8181 PURPOSE: To report to the Board the resolution of the audit findings in the June 30, 1981 DSS audit. NEED: The County responded to the 6/30/81 DSS audit findings and was able to resolve and receive allowances for disallowed costs in the amount of $18,873. This brought the disallowed costs down from $64,271 to $45,398. The majority of this disallowance was due to the move by Orange County's Social Services to new Department facilities in July, 1980. The County had claimed accelerated depreciation during the occupancy of the old building and is required to pay back the difference between accelerated and straight line depreciation. The County had not charged to DSS any cost of space in the new building for the 1980-81 fiscal year pending resolution of the above. Therefore, upon receipt of this finding the County requested that the $52,229 not charged in. 1989-81 be credited against the disallowed costs. We received a response to'this by- letter August 26, 1982, which stated that Orange County did not have the required prior approval for space costs in the new building until April, 1982, Therefore, we would not be allowed to offset any of the disallowed costs as we proposed. The County then requested and received an appeal hearing on November 19, 1982. Our plea was that even though we did not receive prior approval of space costs, we did provide the space and have documented the costs of that space and that Orange should not be penalized for this.. As stated in the attached letter, the appeal board ruled in our favor. IMPACT: Recovery of $52,229.