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Home Hugh Nguyen Audit shows how badly Tom Daly misspent the OC Clerk-Recorder’s 12D fund

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Audit shows how badly Tom Daly misspent the OC Clerk-Recorder’s 12D fund

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Tom Daly, Careet Politician

Internal Audit on Clerk-Recorder Fund 12D Presented to Board of Supervisors

By: Orange County Supervisor Todd Spitzer

On Tuesday, the Orange County Internal Audit Department presented its audit of the Orange County Clerk-Recorder’s Fund 12D to the Board of Supervisors. Fund 12D consists of money received from fees for recording real estate documents, copies of birth/marriage/death certificates, and other similar items. Under state law, the money in 12D can only be spent on:

  •  Modernizing, creating, retaining, and retrieving recorded documents
  • Converting real property documents to micrographics
  • Improving and modernizing systems for birth, marriage, and death certificates
  • Improving collection and analysis of birth and death certificates and other community health data
  • Securing birth, marriage, and death records against fraudulent use

“There are lessons to be learned from the Internal Audit report,” Supervisor Todd Spitzer said. “When a department head signs off on a disbursement, they are signing off that a transaction complies with all laws and policies.”

The audit examined Fund 12D revenue sources, expenditures, and accounting practices from July 1, 2010 to June 30, 2012. (During that period, Tom Daly served as Clerk-Recorder. Daly resigned as Clerk-Recorder to enter the State Assembly in December 2012. The Board of Supervisors appointed Hugh Nguyen as Clerk-Recorder in April. Read more about Nguyen’s appointment from Supervisor Spitzer’s April 4 newsletter.)

The audit found twelve critical control weaknesses (the most serious level of concern), three significant control weaknesses, and four control findings. Among the findings were:

  •  Inadequate documentation related to expenditures of Fund 12D
  • Limited oversight of Fund 12D
  • No study of costs related to Fund 12D
  • Errors in fees charged for Fund 12D
  • Incomplete or erroneous information on Fund 12D submitted to the Board of Supervisors and the State of California
  • No strategic plan for managing Fund 12D

Since Clerk-Recorder Nguyen took over in April, he has changed accounting staff and implemented new financial tracking and documentation procedures.

“I appreciate the work that Hugh Nguyen has done to reform the Clerk-Recorder’s office since his appointment by the Board eight months ago,” Supervisor Spitzer said. “I look forward to the follow-up audit in the spring that will tell us what progress has been made.”

The Internal Audit report can be read here.

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One Response

  1. Jim Cricket

    Wait until Ury gets hoc mots into O C !