WEAT WE DON'T KNOW COULD HURT US

TheNeedForA Whistleblower
Program
In SonomaCountv

SUNi,IARY

Whistleblower Tip Nets IRS $20 Mi[ionr

GlaxcoSmith Kline PaysS750Millionz
TenetHealthcarePals $62,550,m03
$6.89Billion Returned to the U.S. Treasur/
It's no secretthat waste,fraud and abuseexist, aswidenced in the recentnewsexposdslistad above.All ofthe
rccoveredmoneylisted abovewasthe result ofwhistleblowerscoming forward to exposethe waste,fraud or
abusein companiesand./orgovernmententities.A whisdebloweris a personwho exposeswrongdoingaboutan
employer,busin€ssor governmed entity to the public or to thosein the organization,who ar€ in a position of
authorityand who canaffect change."Wlistleblowing" is an activity that requiresthe utrnoslconfidentiality
andtust. Abs€d the conJid€ntiallyandtrust that the informationwill be well handled,whistleblowingwill not
occur andimportanlinformationneededto effeetivelyoonfrontwas1e,ftaud andabusewill not be available.In
thgsecaseswe canexpectthat what we don't know could hurt us asaitizensandta\payers.

Gettingwhistleblowerinformationis alsoa matterof convenienceand accuacy.That is, the ability to makea

.epod at the right momentandhavingthe ability to conveyverbal or written infomation acculatelyand
efiiciently. The StateofCalifornia offers a centralwhistlablowq hotline, which requirespublic employe$ to
publicizehotline contactinfomation andalsoprohibitsworkplacerelaliation.However,usingthe statesystem,
the calling par5' is likely to be redirectedto oneor more local agencieswherethe complainantsmust repeatodly
maketheir caseandwhereconJidentialitycanbe lost.

Many public entitiesin Califomia havecreatedtheir own whistleblowerprogramsasa way to provid€ greater
availability,responsivenessand anonymityfor employeesandcitizenswho makecomplaintswithin each
county.Webelievethat the public entitiesin SonomaCounrywould be well sewedby implementinga single,
central,local Fogram.

This GrandJury report is concemedwilh improvingthe mechanismsfor receivinganddealingwith complaints

from employeesor citizensaboutfraud, wasteor abuseofauthority againstany regularlyconstituteddistrict,
courcil, board,commissionor agencythat providesservicesto the citizensofSonoma County and is funded
throughlocally collectedfees,specialassessments
or t&\es.

The GrandJury recommendsthat all govemmentalunits within SonomaCounrycooperativelyinstituteand

publicize oneinclusive whistleblowerprogramthat would provide al anonymoushotline, an annualrcporting
systemand the assurance that considemtionof the complaintwill result from a singlephon€call. Absentsucha

I $.\lav.
usatodav.
com(04-08-11)
, w*w ny'times.
com(10-26-10)
r $ww.hirst-chanler.com/1
0.htmI
a wwwohilliosandcohen.com
program,therearemanypossibilitiesfor eithersuppressingcritical informationand/orfor career-altering
retaliationagainsta whisdeblower

BACKGROUND

CalifomiaGovemment Codesection8547et. seq.andLaborCodesection1102.5establish whistleblower

legislationthat protectsemployeeswho complainagainsttheir employe$. Section8547et. seq.,known asthe
Califomia WhistleblowerProteatiol Act, providesthat "stateemployeesshouldbe free to reportwaste,liau4
abuseofauthodty, violation oflaw, or thrcatto public healthwithout fear ofret ibution." S€ction1102.5
providesthat "no employershall retaliateagainstan employeefor disclosingiDformationto a govemmentor
law enforcementagency,whefethe employeehasreasonableaauseto bglievethat the info.mation disclosesa
violation ofstate or federalstatute,or violation or noncompliancewith a stateor federalregulation."

During its investigadon,the GrandJury calledthe statehotline numberto detemine how complaintsare
receivedandhardled.Employeesoforganizationsotherthan stateagenciescanphonei[ or email their
complaintto the SfateAttomey Genelal'sofiice, while complaintsrelatedto slateagenciesaredirectedto the
Stat€Auditor/Controller'swhistleblowerhotline. In eithercase,the receivingoffice attemptsto understandthe
natwe ofthe complaintandthen dircctsth€ individual to the approp ate agencyat the stateor local level. The
complainingindividual subsequentlymust contactanotheroffice to get the complaintheard. It is likely that this
complicatedprocessdeterspeoplewith valid complaintsftom following throughwith contactingmorethan one
agency.Also, individualswho havecomplaintsabouta countyor city employeemay view the state'shotling as
too fat removedfrom the city or couno',theleby decreasingthe chancesthat their complaintswill be acted
upon.Thereforea single,county-widehotline would addressthis issue.

If oneof severalavailabiecommercialhotline sewiceswereused,accessibilitywould be extended10

"2417/365," afi, informatior caphred would be completeand acauratebecawethe caller would speakwith a
tained percon(not an answeringmachine).Multiple (40+) languageswould be accommodated, anonymity
would be assweda.rdcosts(est.lessthan $I 5,000,1,15
) would be far lessthan attemptingto sta.f oneor more
similar functionslocally.

INVESTIGATIVE
APPROACH

The GrandJury gatheredioformationon whistleblowerlegislationin the S1a1eof Califomia- In addition,each

ofCalifomia's 58 countieswasconlactedto determile its whistleblowerapproach.As detailedbeloq at least
11countieshaveinstitutedtheir own whistleblowerprograms.Adninishato$ and el€ctedofiiaials in Sonoma
Countywere interviewedto gatherhisto cal perspectivesandcurrentthinking regardinga counry-based
whistleblowerprogram.The GrandJury researchedavailablecommercialethicshotline companiesandtheir
casemanagement prognms.

Dtscussr0N
A locally administered,independentandcolfidential whistleblowerprogam for all of SonomaCountywould
provide govemmentalemploye€s,electedboardmembersandcitizensthe assurancethat allegationsoffraud,
wasteor abuseof authorirycanbe anonymouslyreportedandresolvedwithout the thrcatof retaliation.Two
optionswere consideredby the GrandJury.

The first option is the CountyAuditor/Contrcller's office could administera centIalwhistleblowerprogramand

that any govemmentalunits within SonomaCounty could agee to participate/cooperate.The CountyAuditor/

5Basedon a writtenquotefrom a nationalcompany.

Controller'soffice cunently hasan employeecomplaintevaluationsystemtkough its "InappropriateAations
Committee,"which could be erpandedinto a full-fledgedwhistleblowerprogram.The complexity would come
in gettingvohultaryparticipationfrom othergovemmentalunits operatingwithin countyborders.Thereare
nwnerousexamplesof similaxpro$ams at the countyor evencity level arould the statebirt thesegenerallydo
not reachaooss govemmentalboudaries. A SINCLE, CENTRAI reportillg location in SonomaCounty would
geatly enlancethe assuranceof impartiality,confidentialityandcitizen accountability.

The secondoption is for SonomaCounty'sCivil GrandJury to administerthe whistleblowerprog1am.The

judicially superuisedand empoweredwith speaialaccessandconfidentiality.
Civil GrandJury is citizen-based,
Although thesearepowerful advantages, the GrandJury alsohassignificant limitations in termsof invesfigative
.esoucesard the requiredannualtumoverofmembership.Nevertheless,the GIandJury,asthe aentral
collectionpoint in a countywidewhistleblowerprogram,couldprovide an umbrellathat comfortablycoversa1l
govemmentalunits andoffers a high level ofconfidentiality andtiust for the employeesandcitizens.In
addition,the GrandJuIy could give assurancethat complaintsare not forgottenby using a summaryin regular
annualr€portsto the generalpublic.

Regardlessofthe option chosen,legal guidancewould be neededasto whcthq issuesmay havecriminal

content. Credibl€reports,or complaints,would be referredto approprialelevelsof govemment,with the
understandingthat statusrcporfswould be requiredandthat a centralopenfile would be maintained,pending
final resolution.

The role of the centraladministator for a whistleblowerprogramwould be to providean additionallayer of

securityandconfidentialityandto erlend the program'sreachto include ary govemmentalunit witlin the
courty. The GrandJuly may be better suitedfor this role becauseit alreadyhasa mandatefor govemmental
oyersightandit hasestablishedinvestigativepowers,including the ability to usesubpoenato gain accessto
officials andrecords.

Ow investigationrevealedthat the following countieshaveinstitut€dtheir own local whistleblowerprcgnms:

Alameda,Los Angeles,Orange,Sacramento,SanBemardino,SanFmncisco,SanMateo,Sa a Cla.a, Santa
Cruz, Solano,and Stanislaus.A list of the websitesfor theseprogramsis providedin Appendix L

The Grald Jury found that manyof the countieshadhotlinesavailable24 hours,7 daysa week. Othe6 had
lines availableonly during businesshours.Variationswere in the administrationofthe programsandwhetheror
not they were inclusiveon a regionalbasis.TheAuditor-Corftoller's Intemal Audit Diyision wasa stong
choiceto investigateclaimsaswasthe CounryAdministativ€ Officer and County Counsel.Most Califomia
counti€sdo not havewhistl€blowerpro$ams in place.Complaintsarereceivedby HumanResoucesand
referredto the corespondingd€partmena.

The nnmberofcomplaints receivedby theselocal programsseemedto vary with population.Ortecountyhad

only 20 complaintsin a year,while a largepopulationcouotyreportedhaving600+pendingcomplaints.If\re
assumethat thesenumbersaretypical, then a SonomaCountyprogrammight expectto rcceiveabout50+
complaintsper year.All ofthe local programsincludedprovisionsfor annualreportslisting the numberof
complaintsreceived,how many were investigatedandthe resultsofthe investigations.

Although betterthan simply relying on the StateWhistleblowerHotline, most of theseprogramstarget€ounty

ernployeesand arelimited to complaintsaboutcountygovemment.As a resull citizens,municipalities,school
districts,and otherspecialdistrictsare still not well served.Therefotewe recommendthat a SonomaCounty
Whistleblowerprogramincludeall cities, districtsand agenciesoperaiingwithin the county. A list ofthe
SonomaCounrycities, distficts and agenciesnot affiliated with county govem rentis providedin Appendix 2.
Thereare ll0!

At first, the mechanicsandcomplexity of sucha systemappearoverwhelrningin termsof 24-houraccassand

the needfor professionalstaf. However,our investigationbasshownthat theseservicesare readily availableby
independentcompaniesat a modestcost.Thesespecializedcompaniesprovide a cenfalized serviceandhave
establishedtrack recordswith a variety ofbusinessandgovemmentcli€nts.We believethat selectingone of
thgsespecia.lized seruicecompanieswould enablean administratorto effectively implgmentthe investigation,
or refenal, of all complaintsandto tack andreportthe results,using specializedsoliwareavailablethroughthe
companyprogram.

FINDINGS

Fl. SoromaCounty offices follow statelaw by postingthe StateAttomey General'shotline numberon

€mployeebulletin boards.
F2.Many ofthe laxgercountiesandseveralcities in Califomia havecrealedtheir own whistleblower
programs.Most are providedonly for their own employees.
F3. Thereis no centraladministratorin SonomaCountyto reportevidenceofwaste, fraud and abuseamong
the multitudeoflocal gove.nmentalorganizationsandto insurethat a fair and confideltial investigation
takesplace.
F4. Th€ costto implementa whistleblowerprogam applicableto all govemmentalunits in SonomaCounty
would be modestand initially focusedon publicizing contactinformationandeducatingemployeesand
citizensaboutits availability.
RECOMMENOATIONS

Rl.Every govemmentaludt: county,aity, schoolboardor specialdistrict shouldencouageemployeesand

citizensalike to rcport suspectedwaste,fraud or abuseissuesto a centralcouotyreportirlglocation.This
local whistl€blowerhotline shouldbe administeredby the Civil GrandJury or theAuditor-Conroller's
office, to provide anonymityandassurancethat investigationswill be thoroughandimpartial for any
govemmententity in SonomaCounty.Why would the GrandJury want the County of Sonomato provide
this serviceandincludecities and othergovemmententities?We suggestthis for the geater goodof the
citizens!
R2.Whena SonomaCounrycental Whisdeblowerprogramand admjnistratoris established,€very
govemmentalunit shouldprovide clear,easily accessibleinformation aboutthe prcg.am and24 hour hotline
on &eir websites,in thei employeetraining andasa noticeon employeebulletin boards.
R3.Thecountybudgetfor 2011/2012 aadforward,includethe costofa commercialwhistleblower hotline
service(est.lessthanS15,000/
yr) eitheraspartof theopemtingbudgetofCivil GlandJuryor theofficeof
the Auditor / Conlroller.
R4.The designatedoffice for SonomaCounty shouldprovide an annualreportto the public on the
whisdeblowerprogramincluding suchinformationasthe total numberof r4istleblower complaints
rcceived,the numberofcomplaints that were formally investigated,andthe dollar value (if applicable)that
wasrecovered-
REQUIRED TORECOI'MENDATIOI{S
RESPONSES AI{DTHEQt|ESTIONS
INAPPENDX
3

From the following County o{Iicials:

r ChiefAdministrativeOfiicer
r Audito/Contoll€r
From the following govemingbodies:
r Board of Supervisors
I City Councilsas1is1ed
in Appendix2

REOUESTED
RESPOT{SES
TORECOMMENOATIONS
INAPPENOTX
3
Fromthefollowinggovemingbodies:
SchoolDistrictsBoardsofDirectorsaslistedonAppeodix2
BoardsofDirectors for specialdisticts and agenaieslisted in Appendix 2

APPENDIX
1
List of whistleblo\rerwebsitesfor Califomia counties.
'ht{)://sfcontrollerore/index.asox?oaeF3I
'http://www ocgovcorn/ocgov,4ntemal%20AudiUOC%20Fraud%2OHodine
'httot/\,vm1,r'.
laaoun(vfraud.
ord
'htir://www lmarce.saccountv- nerAuditor/AuditFraudHolline.asp
' http://www.sbcountv.qov/acr^totline.htm
'http://www.co.sanmatco. oa.us/portal/site/controller/menuilem.
I f860392596ef25b74452b3I d 17332a0/?
vgnextoid-2b5a0f68ed180210VgnVCMl000001d37230aRCRD&vsnextfmt=Divisionsl-andine
' htto://www.scceov.org/oortaVsite/*p/
'htto://www co.santa-cruz.
ca.us/whistl€bi
owerhhn
'htto://www co.solano.ca.us/depts/auditor/whistleblower/default.
aso

APPENDIX
2
Incorporated SonomaCounty Cities:
eity of S4!ta Rosq -City afPetaluma; Ciry-ofRohne4 Pa*; City ofcotatl City ofHealdsburg;
To\i,nr
of windsor: CitybfSonorna:Ciry cifCloverdale:Ciry ofSebaslopol
Independent Special Fire Districts:
BennettVall€y Fio; BodegaBay Fiie; CloverdaleFirc; ForesMlle Fire; GeyservilleFire; GlenEllen Fire;
Gold tudge Firq CrratonFiIe; KenwoodFire; Monte Rio Fire; RanchoAdobe Fie; RincoaValley Fire;
RoselandFire; RussianRiver Fire; SchellVista Fire; Timber CoveFire; Valleyofthe Moon Fire;
WindsorFire
Recreation .nd Park Distric8:
CampMe€kerRecreation& Park; Del Rio WoodsRecreation& Park; Monte Rio Reqeation& Park;
RussianRiver Recreation& Parh
Independent Water Districts:
BodegaBay Public Utjlities; ForestyilleWater; North Marin Water; RainsCreekWat€r; RussianRivet Water;
SonomaMountain CountyWalet Sweet',irater SpringsWater; Timber CoveWaler; Valley ofihe Moon Water;
WindsorWater
Eealth Care Related Special Districts:
CloverdaleHospital; CoastLife Ambulatrce; Palm Drive HealthCare; SonomaValley Health Care
CommunityServiceDistricts:
CazaderoCornrnunityServiceDistict; CratonCornmunityServiceDistrict; OccidsntalCoamunity Service
Dishict
Other Special Districts:
S.C.A-VA. ServiceAuthodty; SonomaCoulty EmployeeRetirement;SonolnaCountyOp€nSpaceAuthoriry;
SonomaCountyTranspodationAuthority; SonomaComty WasteMa[agementAutho ty; SonomaCounty
Law Library; SonomaComty ProtectiveServices;North Bay CoopLibrary; Redv,'oodEmpireDispatch
CommunicationsAuthority; SNtrA.RI;RegionalClimateProt€otionAuthority; cold Ridge Soil Consrvation;
SotoyomeResouce Conservatioq SouthemSonomaCoutry ResourceConsewation; GreenValley Cemetery;
Shiloh Cemetary;North CoastRailroadAuftonty; LAFCO; Marir/SonomaMosquitoAbalement;
School Districts:
AloxanderValleyUnion; Bellewe Uniol; BennenValley Union: Cinnabar; CloverdaleUdfred;
Cotali-Rohrcd Park Unified; Duntram; ForestvilleUnion; Fort Ros Geysefiille Unified; Cuefteville;
HarmonyUnion; HealdsburgUnified; Horicon; Kashia; Kenwood; Liberry; Mark W€stUnion;
Monte Rio Urfor; MontgomeryElemertary; Oat GroveUnion; O1dAdobeUrjon; petalumaCity
Eleoentary; PetalunaJoint JuniorHigh; Piner-OlivetUnion; Rincor V€lley Urioni Roseland;
SantaRosaCity Elernentary;Sarta RosaCity High; SebastopolUnjon; SonomaValley Udon;
Twin Hills Udon: Two Rock Union; Waugh; WestSideUnion; WesrSonomaCountyHigh; Wilrnar Udon;
WindsorUnified; Wright

APPEN'DX 3

RequestedWhistl€blowerResponse

L Do you post copies of the State whisdeblower statutes and hotline number in yout emolovee breakoom?
Yes No

2. How would an emoloye€allegationof significantwongdoing be directedwithil your organization?

3. How would a Eilizg! allegationofsignificant wrongdoingbe directedwithin your organization?

Do you believetlat presentlaws andpracticasprovide at adequatesafeguardfor your organizationand for

thoseindividuals who may wish to reportwongdoing? lf yes,pleaseexplain.
_Yes_No
5 . Do you believethat a local twenty-fourhour hot line, additionalassunnceof con{identialityand
summaryannualreportsto the citizenswould be ofsubslantialvalue when managingincreasinglyscarce
govemmentalresources? Yes No
6. Giventime andadequate desaription of a proposed
stuctureandprocess,wouldyou considerformally
adoptinga resolutionto partiaipatein a county-widewhistleblower
pro$amadministercdby eitherthe
grandjuryor thecountyauditor-contolleromce? Yes No
7. Co{unents:

By For