HomeMy WebLinkAboutM-24-724 - 2024-25 Welfare Fraud MOU with DA-DSS.pdf 1 INTER-DEPARTMENTAL AGREEMENT
2 This Inter-Departmental Agreement ("Agreement") is dated March 4, 2025 and
3 is between the County of Fresno District Attorney's Office, a political subdivision of the State of
4 California, whose address is 2100 Tulare Street, Fresno CA 93721, ("DA"), and the County of
5 Fresno Department of Social Services, a political subdivision of the State of California ("DSS").
6 Recitals
7 A. Federal Title 45 Section 235.110 requires that implementation of programs under the
8 Social Security Act must provide methods and criteria for identifying situations in which a
9 question of fraud may exist.
10 B. California state regulation per California Department of Social Services (CDSS) Manual
11 of Policies and Procedures (MPP) Division 20-007.1 holds that a Special Investigative Unit (SIU)
12 shall be established for the purpose of investigating suspected welfare fraud and suspected
13 violations of law within each county welfare department. CDSS MPP Division 20-008.1 requires
14 referrals to law enforcement from the SIU be made to the prosecuting authority for an opinion as
15 to prosecution, with resulting actions taken by the prosecuting authority to be tracked by the
16 SIU.
17 C. DSS and DA have a need for coordination for investigations of welfare fraud and for
18 prosecution of crimes against DSS CalWORKs and CalFresh programs.
19 D. DSS and DA are willing and able to coordinate any investigation of welfare fraud and
20 prosecution of crimes against DSS CaIWORKs and CalFresh programs.
21 E. DA has the facilities, equipment, and personnel skilled in the provision of such
22 investigative services.
23 The parties therefore agree as follows:
24 Article 1
25 DA's Services
26 1.1 Scope of Services. The DA shall perform all of the services provided in Exhibit A to
27 this Agreement, titled "Scope of Services," and pursuant to the staffing patterns and program
28 expenses detailed in Exhibit B, titled "Compensation."
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1 1.2 Representation. The DA represents that it is qualified, ready, willing, and able to
2 perform all of the services provided in this Agreement.
3 1.3 Compliance with Laws. The DA shall, at its own cost, comply with all applicable
4 federal, state, and local laws and regulations in the performance of its obligations under this
5 Agreement, including but not limited to workers compensation, labor, and confidentiality laws
6 and regulations.
7 Article 2
8 DSS Responsibilities
9 2.1 DSS shall meet all obligations provided in Exhibit A to this Agreement, titled "Scope
10 of Services."
11 Article 3
12 Compensation, Invoices, and Payments
13 3.1 DSS agrees to pay, and the DA agrees to receive, compensation for the
14 performance of its services under this Agreement as described in Exhibit B to this Agreement,
15 titled "Compensation."
16 3.2 The services provided by the DA under this Agreement are funded in whole or in part
17 by the State of California and the United States Federal government. In the event that funding
18 for these services is delayed by the State Controller or the Federal government, DSS may defer
19 payment to the DA. The amount of the deferred payment shall not exceed the amount of funding
20 delayed to DSS. The period of time of the deferral by DSS shall not exceed the period of time of
21 the State Controller's or Federal government's delay of payment to County plus forty-five (45)
22 days.
23 3.3 Maximum Compensation. The cumulative total of this Inter-Departmental
24 Agreement is Three Million Nine Hundred Ninety-Two Thousand Four Hundred Twenty-Eight
25 and No/100 Dollars ($3,992,428). For the period of July 1, 2024, through June 30, 2025, in no
26 event shall actual compensation under this Inter-Departmental Agreement be in excess of One
27 Million Nine Hundred Ninety-Six Thousand Two Hundred Fourteen and No/100 Dollars
28 ($1,996,214). For the optional twelve (12) month extension for the period of July 1, 2025,
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1 through June 30, 2026, compensation under this Inter-Departmental Agreement shall be no
2 more than One Million Nine Hundred Ninety-Six Thousand Two Hundred Fourteen and No/100
3 Dollars ($1,996,214).
4 The DA acknowledges that DSS is a local government entity and does so with notice that
5 DSS's powers are limited by the California Constitution and by State law, and with notice that
6 the DA may receive compensation under this Agreement only for services performed according
7 to the terms of this Agreement and while this Agreement is in effect, and subject to the
8 maximum amount payable under this section. The DA further acknowledges DSS employees
9 have no authority to pay the DA except as expressly provided in this Agreement.
10 3.4 Invoices. The DA shall submit quarterly invoices in attention to Staff Analyst to:
11 DSSlnvoices(a�.fresnocountyca.gov. The DA shall submit each invoice within 30 days following
12 the quarter in which expenses were incurred and services rendered, and in any case within 60
13 days after the end of the term or termination of this Agreement. DA shall submit invoices to DSS
14 each quarter with a detailed general ledger (GL), itemizing costs incurred in the previous month,
15 along with supporting documentation of costs. Failure to submit GL reports and supporting
16 documentation shall be deemed sufficient cause for DSS to withhold payments until there is
17 compliance, as further described in Section 3.5 herein. Prior to submission to DSS, the invoice
18 shall be reviewed, approved, and signed by a DA representative who is authorized to certify
19 actual services were performed and reimbursement requests represent actual costs.
20 (A) Supporting documentation shall include but is not limited to receipts, invoices
21 received, and documented administrative/overhead costs. No reimbursement for
22 services shall be made until invoices, activity reports and outcomes are received,
23 reviewed and approved by County's DSS. Proof of payment may be required for certain
24 funding streams and will be made available by the DA as requested by DSS.
25 (B) Quarterly Activity Reports shall be submitted by the DA to DSS within 30 days of
26 the month following for the prior quarter's expenditures. DA shall also furnish to DSS
27 such statements, receipts, reports, data, support documentation and other information
28 as DSS may request pertaining to matters covered by this Agreement.
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1 (C) Reimbursement for services rendered under this Inter-Departmental Agreement
2 shall not be made until said invoices with supporting documentation, and an activity
3 report, as identified hereinabove, are received and reviewed by DSS.
4 3.5 Payment. DSS shall pay each correctly completed and timely submitted invoice
5 within 45 days after receipt. If an invoice is incorrect or otherwise not in proper form or detail,
6 County's DSS Director or designee shall have the right to withhold payment as to only that
7 portion of the invoices that is incorrect or improper, after five (5) days prior written notice or
8 email correspondence to DA. Once the invoice has been approved for payment by DSS, DSS
9 shall prepare an Inter-Department Journal Voucher to reimburse DA for actual expenditures.
10 The Inter-Departmental Journal Vouchers shall be subject to County, State, and Federal audits.
11 If the DA should fail to comply with any provision of the Inter-Departmental Agreement, DSS
12 shall be relieved of its obligation for further compensation. Any compensation which is not
13 expended by the DA pursuant to the terms and conditions of this Inter-Departmental Agreement
14 shall automatically revert to DSS.
15 3.6 Incidental Expenses. The DA is solely responsible for all of its costs and expenses
16 that are not specified as payable by DSS under this Agreement, including but not limited to any
17 and all personnel, equipment and supplies required in the performance of these services.
18 Article 4
19 Term of Agreement
20 4.1 Term. This Agreement is effective on July 1, 2024 and terminates on June 30, 2025,
21 except as provided in Section 4.2, "Extension," or Article 5, "Termination and Suspension,"
22 below.
23 4.2 Extension. The term of this Agreement may be extended for no more than one, one-
24 year period only upon written approval of both parties at least 30 days before the first day of the
25 next one-year extension period. The Director of the Department of Social Services or his or her
26 designee is authorized to sign the written approval on behalf of DSS based on the DA's
27 satisfactory performance. The extension of this Agreement by DSS is not a waiver or
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1 compromise of any default or breach of this Agreement by the DA existing at the time of the
2 extension whether or not known to DSS.
3 Article 5
4 Termination and Suspension
5 5.1 Termination for Non-Allocation of Funds. The terms of this Inter-Departmental
6 Agreement are contingent on the approval of funds by the appropriating government agency. If
7 sufficient funds are not allocated, then DSS, upon at least 30 days' advance written notice to the
8 DA, may:
9 (A) Modify the services provided by the DA under this Agreement; or
10 (B) Terminate this Agreement.
11 5.2 Termination for Breach.
12 (A) Upon determining that a breach (as defined in paragraph (C) below) has
13 occurred, DSS may give written notice of the breach to the DA. The written notice may
14 suspend performance under this Agreement and must provide at least 30 days for the
15 DA to cure the breach.
16 (B) If the DA fails to cure the breach to DSS's satisfaction within the time stated in
17 the written notice, DSS may terminate this Agreement immediately.
18 (C) For purposes of this section, a breach occurs when, in the determination of DSS,
19 the DA has:
20 (1) Obtained or used funds illegally or improperly;
21 (2) Failed to comply with any part of this Agreement;
22 (3) Submitted a substantially incorrect or incomplete report to DSS; or
23 (4) Improperly performed any of its obligations under this Agreement.
24 5.3 Termination without Cause. In circumstances other than those set forth above,
25 DSS or DA may terminate this Agreement by giving at least 30 days advance written notice to
26 the DA. However, termination of this Inter-Departmental Agreement shall not affect any active
27 case services pursuant to this Inter-Departmental Agreement, which shall be handled to their
28 conclusion by DA.
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1 Article 6
2 Inspections, Audits, Record Maintenance, and Public Records
3 6.1 Inspection of Documents. The DA shall make available to DSS, and DSS may
4 examine at any time during business hours and as often as DSS deems necessary, all of the
5 DA's records and data with respect to the matters covered by this Agreement, excluding
6 attorney-client privileged communications. The DA shall, upon request by DSS, permit DSS to
7 audit and inspect all of such records and data to ensure the DA's compliance with the terms of
8 this Agreement.
9 6.2 State Audit Requirements. If the compensation to be paid by DSS under this
10 Agreement exceeds $10,000, the DA is subject to the examination and audit of the California
11 State Auditor, as provided in Government Code Section 8546.7, for a period of three years after
12 final payment under this Agreement. This section survives the termination of this Agreement.
13 6.3 Record Establishment and Maintenance. DA shall establish and maintain records
14 in accordance with those requirements prescribed by DSS, with respect to all matters covered
15 by this Agreement. DA shall retain all fiscal books, account records and client files for services
16 performed under this Agreement for at least five (5) years from date of final payment under this
17 Agreement or until all State and Federal audits are completed for that fiscal year, whichever is
18 later.
19 (A) Cost Documentation. DA agrees to maintain records to verify costs under this
20 Agreement including a General Ledger, properly executed payrolls, time records,
21 invoices, vouchers, orders, proof of payment, and any other accounting documents
22 pertaining in whole or in part to this Agreement and they shall be clearly identified and
23 readily accessible. The support documentation must indicate the line budget account
24 number to which the cost is charged.
25 6.4 Service Documentation. DA agrees to maintain records to verify services under this
26 Agreement including names and addresses of clients served, if applicable, and the dates of
27 service and a description of services provided on each occasion. These records and any other
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1 documents pertaining in whole or in part to this Agreement shall be clearly identified and readily
2 accessible.
3 (A) DSS shall notify DA in writing within thirty (30) days of any potential State or
4 Federal audit exception discovered during an examination. Where findings indicate that
5 program requirements are not being met and State or Federal participation in this
6 program may be imperiled in the event that corrections are not accomplished by DA
7 within thirty (30) days of receipt of such notice from DSS, written notification thereof shall
8 constitute DSS intent to terminate this Agreement.
9 6.5 Public Records. DSS is not limited in any manner with respect to its public
10 disclosure of this Agreement or any record or data that the DA may provide to DSS. DSS's
11 public disclosure of this Agreement or any record or data that the DA may provide to DSS may
12 include but is not limited to the following:
13 (A) DSS may voluntarily, or upon request by any member of the public or
14 governmental agency, disclose this Agreement to the public or such governmental
15 agency.
16 (B) DSS may voluntarily, or upon request by any member of the public or
17 governmental agency, disclose to the public or such governmental agency any record or
18 data that the DA may provide to DSS, unless such disclosure is prohibited by court
19 order.
20 (C)This Agreement, and any record or data that the DA may provide to DSS, is
21 subject to public disclosure under the Ralph M. Brown Act (California Government Code,
22 Title 5, Division 2, Part 1, Chapter 9, beginning with Section 54950).
23 (D)This Agreement, and any record or data that the DA may provide to DSS, is
24 subject to public disclosure as a public record under the California Public Records Act
25 (California Government Code, Title 1, Division 7, Chapter 3.5, beginning with Section
26 6250) ("CPRA").
27 (E) This Agreement, and any record or data that the DA may provide to DSS, is
28 subject to public disclosure as information concerning the conduct of the people's
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1 business of the State of California under California Constitution, Article 1, Section 3,
2 subdivision (b).
3 (F) Any marking of confidentiality or restricted access upon or otherwise made with
4 respect to any record or data that the DA may provide to DSS shall be disregarded and
5 have no effect on DSS's right or duty to disclose to the public or governmental agency
6 any such record or data.
7 (G)Notwithstanding Sections A-F above, any information protected by law shall not
8 be subject to public disclosure.
9 6.6 Public Records Act Requests. If DSS receives a written or oral request under the
10 CPRA to publicly disclose any record that is in the DA's possession or control, and which DSS
11 has a right, under any provision of this Agreement or applicable law, to possess or control, then
12 DSS may demand, in writing, that the DA deliver to DSS, for purposes of public disclosure, the
13 requested records that may be in the possession or control of the DA. Within five business days
14 after DSS's demand, the DA shall (a) deliver to DSS all of the requested records that are in the
15 DA's possession or control, together with a written statement that the DA, after conducting a
16 diligent search, has produced all requested records that are in the DA's possession or control,
17 or (b) provide to DSS a written statement that the DA, after conducting a diligent search, does
18 not possess or control any of the requested records. The DA shall cooperate with DSS with
19 respect to any DSS demand for such records. If the DA wishes to assert that any specific record
20 or data is exempt from disclosure under the CPRA or other applicable law, it must deliver the
21 record or data to DSS and assert the exemption by citation to specific legal authority within the
22 written statement that it provides to DSS under this section. The DA's assertion of any
23 exemption from disclosure is not binding on DSS, but DSS will give at least 10 days' advance
24 written notice to the DA before disclosing any record subject to the DA's assertion of exemption
25 from disclosure. The DA shall indemnify DSS for any court-ordered award of costs or attorney's
26 fees under the CPRA that results from the DA's delay, claim of exemption, failure to produce
27 any such records, or failure to cooperate with DSS with respect to any DSS demand for any
28 such records.
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1 Article 7
2 Medi-Cal Confidentiality
3 7.1 Conformance with Laws: All services performed by Contractor under this
4 Agreement shall be in strict conformance with all applicable Federal, State of California, and/or
5 local laws and regulations relating to confidentiality. Contractor shall require its employees,
6 agents, officers and subcontractors to comply with the provisions of Sections 10850 and
7 14100.2 of the Welfare and Institutions Code, as well as the California Department of Social
8 Services (CDSS) Manual of Policies and Procedures, Division 19-0000 and the California
9 Department of Health Care Services (DHCS) Medi-Cal Eligibility Procedures Manual, Section
10 2H. These Code sections provide that:
11 (A) All applications and records concerning any individual made or kept by any public
12 officer or agency in connection with the administration of any provision of the Welfare
13 and Institutions Code relating to Medicaid or any form of public social services for which
14 grants-in-aid are received by the State of California from the United States government
15 shall be confidential, and shall not be open to examination for any purpose not directly
16 connected with the administration of such public social services.
17 (B) No person shall publish or disclose or permit or cause to be published or
18 disclosed any list of persons receiving public social services, except as is provided by
19 law.
20 (C) No person shall publish, disclose, or use, or permit or cause to be published,
21 disclosed, or used any confidential information pertaining to an applicant or recipient,
22 except as is provided by laws.
23 (D) Contractor shall inform all of its employees, agents, officers and subcontractors
24 of the above provisions and that any person knowingly and intentionally violating such
25 provisions is guilty of a misdemeanor.
26 (E) In addition, Contractor, its employees, agents, and officers shall comply, and
27 require all of its subcontractors to comply, with (1) the DHCS Medi-Cal Privacy and
28 Security Agreement between the California DHCS and the County of Fresno that is then
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1 in effect, and (2) the Privacy and Security Agreement between the CDSS and the
2 County of Fresno that is then in effect, both of which together shall be referred to in this
3 section as "the Agreements" and are incorporated herein by this reference. The current
4 versions of both the DHCS and CDSS Privacy and Security agreements are available
5 upon request or can be viewed at: http://www.co.fresno.ca.us/MediCalPrivacy/.
6 Contractor shall insure that all personally identifiable information (PII), as defined in the
7 Agreements, concerning program recipients shall be kept confidential and shall not be
8 opened to examination, publicized, disclosed, or used for any purpose not directly
9 connected with the administration of the program. Contractor shall use appropriate
10 administrative, physical, and technical safeguards to protect PII, as set forth in the
11 Agreements. Upon discovery of a breach, security incident, intrusion, or unauthorized
12 access, use, or disclosure of PI I, Contractor shall immediately report the incident to the
13 County by calling (559) 600-2300 or emailing the privacy mailbox at
14 dssprivacyincident(a-)_fresnocountyca.gov. Contractor shall certify that all employees,
15 agents, officers and subcontractors have received privacy and security training before
16 accessing any PH and have received refresher training annually, as required by the
17 Agreements.
18 Article 8
19 General Terms
20 8.1 Modification. Except as provided in Article 5, "Termination and Suspension," this
21 Agreement may not be modified, and no waiver is effective, except by written consent by both
22 parties. The DA acknowledges that DSS employees have no authority to modify this Agreement
23 except as expressly provided in this Agreement.
24 (A) Any matters of this Inter-Departmental Agreement may be modified from time to
25 time by the written consent of DA, or designee, and DSS Director, or Designee, without,
26 in any way, affecting the remainder.
27 (B) DA agrees that reductions to the maximum compensation set forth under Article
28 Three (3) of this Agreement may be necessitated by a reduction in funding from State or
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1 Federal sources. Any such reduction to the maximum compensation may be made with
2 the written approval of County's DSS Director or designee and DA. DA further
3 understands that this Inter-Departmental Agreement is subject to any restriction,
4 limitations, or enactments of all legislative bodies which affect the provisions, term, or
5 funding of this Agreement in any manner. If the parties do not provide written approval
6 for modification due to reduced funding, this Agreement may be terminated in
7 accordance with Section 5.1 above.
8 8.2 Non-Assignment. Neither party may assign its rights or delegate its obligations
9 under this Agreement without the prior written consent of the other party. Any transferee,
10 assignee or subcontractor will be subject to all applicable provisions of this Agreement, and all
11 applicable State and Federal regulations. DA shall be held primarily responsibly by DSS for the
12 performance of any transferee, assignee or subcontractor unless otherwise expressly agreed to
13 in writing by DSS. The use of subcontractor by DA shall not entitle DA to any additional
14 compensation than provided for under this Agreement.
15 8.3 Change of Leadership/Management. In the event of any change in the status of
16 the DA's leadership or management, the DA shall provide written notice to DSS within thirty (30)
17 days from the date of change. Such notification shall include any new leader or manager's
18 name, address and qualifications. "Leadership or management" shall include any employee,
19 member, or official who a) directs individuals providing services pursuant to this Inter-
20 Departmental Agreement, b) exercises control over the manner in which services are provided,
21 or c) has authority over the DA's finances.
22 8.4 Relationship Of Parties. It is understood that this is an Inter-Departmental
23 Agreement by and between two (2) separate departments of the County of Fresno and is not
24 intended to and shall not be construed to create a relationship of agent, servant, employee,
25 partnership,joint venture or association. The provisions of this Inter-Departmental Agreement
26 are severable. The invalidity or unenforceability of any one provision in the Inter-Departmental
27 Agreement shall not affect the other provisions.
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1 8.5 Construction. The final form of this Agreement is the result of the parties' combined
2 efforts. If anything in this Agreement is found by a court of competent jurisdiction to be
3 ambiguous, that ambiguity shall not be resolved by construing the terms of this Agreement
4 against either party.
5 8.6 Days. Unless otherwise specified, "days" means calendar days.
6 8.7 Headings. The headings and section titles in this Agreement are for convenience
7 only and are not part of this Agreement.
8 8.8 Severability. If anything in this Agreement is found by a court of competent
9 jurisdiction to be unlawful or otherwise unenforceable, the balance of this Agreement remains in
10 effect, and the parties shall make best efforts to replace the unlawful or unenforceable part of
11 this Agreement with lawful and enforceable terms intended to accomplish the parties' original
12 intent.
13 8.9 Nondiscrimination. During the performance of this Agreement, the DA shall not
14 unlawfully discriminate against any employee or applicant for employment, or recipient of
15 services, because of race, religious creed, color, national origin, ancestry, physical disability,
16 mental disability, medical condition, genetic information, marital status, sex, gender, gender
17 identity, gender expression, age, sexual orientation, military status or veteran status pursuant to
18 all applicable State of California and federal statutes and regulation.
19 (A) Domestic Partners and Gender Identity. For State fund-funded contracts of
20 $100,000 or more, DA certifies that it complies with Public Contract Code Section
21 10295.3.
22 (B) Americans with Disabilities Act. DA shall comply with the Americans with
23 Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as
24 well as all applicable regulations and guidelines issued pursuant to the ADA (42 U.S.C.
25 12101 et seq.).
26 (C) DA shall include the non-discrimination and compliance provisions of this section
27 in all subcontracts to perform work under this Agreement.
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1 8.10 Entire Inter-Departmental Agreement. This Agreement, including its exhibits, is the
2 entire Inter-Departmental Agreement between the DA and DSS with respect to the subject
3 matter of this Agreement, and it supersedes all previous negotiations, proposals, commitments,
4 writings, advertisements, publications, and understandings of any nature unless those things
5 are expressly included in this Agreement. If there is any inconsistency between the terms of this
6 Agreement without its exhibits and the terms of the exhibits, then the inconsistency will be
7 resolved by giving precedence first to the terms of this Agreement without its exhibits, and then
8 to the terms of the exhibits.
9 8.11 No Third-Party Beneficiaries. This Agreement does not and is not intended to
10 create any rights or obligations for any person or entity except for the parties.
11 8.12 Authorized Signature. The DA represents and warrants to DSS that:
12 (A) The DA is duly authorized and empowered to sign and perform its obligations
13 under this Agreement.
14 (B) The individual signing this Agreement on behalf of the DA is duly authorized to
15 do so and his or her signature on this Agreement legally binds the DA to the terms of this
16 Agreement.
17 8.13 Electronic Signatures. The parties agree that this Agreement may be executed by
18 electronic signature as provided in this section.
19 (A) An "electronic signature" means any symbol or process intended by an individual
20 signing this Agreement to represent their signature, including but not limited to (1) a
21 digital signature; (2) a faxed version of an original handwritten signature; or (3) an
22 electronically scanned and transmitted (for example by PDF document) version of an
23 original handwritten signature.
24 (B) Each electronic signature affixed or attached to this Agreement (1) is deemed
25 equivalent to a valid original handwritten signature of the person signing this Agreement
26 for all purposes, including but not limited to evidentiary proof in any administrative or
27 judicial proceeding, and (2) has the same force and effect as the valid original
28 handwritten signature of that person.
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1 (C)The provisions of this section satisfy the requirements of Civil Code Section
2 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3,
3 Part 2, Title 2.5, beginning with Section 1633.1).
4 (D) Each party using a digital signature represents that it has undertaken and
5 satisfied the requirements of Government Code Section 16.5, subdivision (a),
6 paragraphs (1) through (5), and agrees that each other party may rely upon that
7 representation.
8 (E) This Agreement is not conditioned upon the parties conducting the transactions
9 under it by electronic means and either party may sign this Agreement with an original
10 handwritten signature.
11 8.14 Counterparts. This Agreement may be signed in counterparts, each of which is an
12 original, and all of which together constitute this Agreement.
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1 The parties are signing this Agreement on the date stated in the introductory clause.
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County of Fresno County Of Fresno
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District Attorney Department of Social Services
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9 For accounting use only:
10 Org No.: 56107001
Account No.:7295
11 Fund No.:0001
Subclass No.:10000
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Exhibit A
Scope Of Services
ORGANIZATION: County of Fresno, District Attorney
SERVICES: Welfare Fraud Investigation & Prosecution
ADDRESS: 2100 Tulare Street, Suite 1000, Fresno, CA 93721
CONTRACT PERIOD: JULY 1, 2024 - JUNE 30, 2025 $1,996,214 (Base)
JULY 1, 2025 - JUNE 30, 2026 $1,996,214 (Optional)
I. SERVICE DESCRIPTION
Pursuant to California Department of Social Services (CDSS) Manual of Policies and
Procedures (MPP) 20-005.21, the County shall establish and maintain a Special Investigative
Unit (SIU) consisting of staff trained and qualified to prevent, detect, and investigate fraud and
carry out investigations of other possible criminal activity within the purview of the County of
Fresno's Department of Social Services (DSS). Pursuant to MPP 20-007.1, the SIU shall also
function as a liaison between DSS and law enforcement agencies.
Based on the above regulations, the County of Fresno District Attorney's office(DA)shall provide
to DSS the following services through this Inter-Departmental Agreement: investigate Welfare
Fraud, prosecute crimes against the DSS CaIWORKs program, prosecute crimes against the
DSS CalFresh program, and investigate and prosecute other crimes within the purview of DSS.
A. Definition of Fraud
Pursuant to MPP 20-003, fraud exists when a person, on behalf of themselves or others,
has:
1. Knowingly, and with intent to deceive or defraud, made a false statement or
representation to obtain benefits, obtain a continuance or increase of benefits, or avoid
a reduction of aid benefits.
2. Knowingly, and with intent to defraud, failed to disclose a fact, which, if disclosed, could
have resulted in the denial, reduction, or discontinuance of benefits.
3. Accepted benefits knowing he/she is not entitled thereto, or accepted any amount of
benefits knowing it is greater than the amount to which he/she is entitled.
4. Made statements which he/she did not know to be true with reckless disregard for the
truth for the purpose of obtaining, continuing, or avoiding a reduction or denial of
benefits.
B. Grounds for Fraud
Pursuant to MPP 20-004, reasonable grounds for fraud exist when one or more of the
following criteria is met:
1. An overpayment or overissuance of benefits, or both, may have or has resulted from an
applicant's failure to report information pertinent to eligibility or benefits.
2. A questionable situation exists and the applicant or third party acting on behalf of the
applicant will not cooperate in providing necessary verification of information which
A-1
Exhibit A
would affect the applicant's eligibility or the amount of benefits for which the applicant is
eligible.
3. DSS finds conflicting information which could affect the applicant's eligibility or the
amount of benefits for which the applicant is eligible, and any further action on the part
of that staff person could jeopardize the investigator's ability to investigate.
4. DSS is made aware of any situation involving the applicant that could involve
embezzlement, collusion, conspiracy, trafficking, black marketing, or any other general
program violations.
5. DSS is made aware of any situation in which the applicant may have forged, caused the
forgery of, or is using a forgery of any warrant or authorization to participate which has
been negotiated.
6. DSS receives an allegation of fraud with respect to the applicant from any governmental
agency.
7. DSS receives a complaint containing facts which allege a crime against a public social
services program may be occurring, including, but not limited to, fraud, perjury,
trafficking, or embezzlement.
II. DISTRICT ATTORNEY RESPONSIBILITES
The DA responsibilities shall include but not be limited to the following:
A. Fraud Investigation
The DA will be responsible for case preparation, investigative duties, and criminal
prosecutions of alleged violations against the DSS CaIWORKs and CalFresh programs.
The DA will file criminal and/or civil charges when investigation(s) reveal sufficient evidence
exists of fraud. In addition, individual prosecution units shall be responsible for, but not
limited to, the following:
1. Early Fraud Prevention Unit
a. Conducting eligibility investigations.
b. Assisting with induction training of DSS Eligibility Workers relating to the Fraud
Module, subject to the availability of investigators in this unit.
c. Coordinating a quarterly diversion class with DSS in accordance with the court's
Diversion Program.
d. Investigating unreported income, asset matches, family composition, mail drop
addresses, and homeless fraud.
2. Ongoing Fraud Unit
a. Investigating unreported income, asset matches, duplicate aid (for children out of
the home), false documents, duplicate check cases, homeless fraud, unreported
persons in the home, unreported earnings, false applications, and child-care.
b. Assisting with induction training of DSS Eligibility Workers relating to the Fraud
Module, subject to the availability of investigators in this unit.
c. Investigating trafficking of CalFresh benefits per 7 CFR 271.2. The trafficking of
CalFresh benefits is limited to the trading or selling of benefits for cash, non-eligible
items, or services; the illegal exchange of benefits for cash or anything other than
eligible items.
d. Investigating fraud of cash aid issued.
e. Maintaining a $1,500 referral threshold, whereby all referrals that do not meet the
threshold will not be investigated and shall be returned to DSS monthly, or as
A-2
Exhibit A
requested by DSS. This may be subject to change at the agreement of both parties
in writing.
f. Notifying DSS when a Disqualification Consent Agreement (DCA) is signed as a
condition of a deferred court judgment on a guilty plea, pursuant to MPP 20-352. A
DCA is an agreement between the DA and a defendant.A DCA may be used as part
of case negotiation after a case has been filed with the court, at the discretion of the
assigned prosecutor. The DA will provide a copy of the signed DCA to DSS within
15 calendar days of the signature date, to allow DSS sufficient time to process the
DCA request and initiate the Intentional Program Violation (IPV) disqualification
penalty, per MPP 20-300.43 and 20-354.3.
3. DSS Related Investigations
Pursuant to MPP 20-007.1, the SIU will also be established and organized for the
purpose of investigating suspected violations of the law in connection with matters for
which DSS has responsibility to.
A. INTERNAL DSS EMPLOYEE INVESTIGATIONS:
The Welfare Fraud Internal Investigations team will conduct complex and sensitive
investigations involving DSS employees that have been referred for review by DSS.
These matters may or may not lead to criminal charges being filed. Investigations
that involve DSS employees may include the fraudulent reporting of household
income, fraudulent reporting of family composition, Electronic Benefit Transfer
misappropriations, forgery, and the filing of false documentation. Investigations
involve the gathering and reporting of facts that are supported by evidentiary
documentation.
B. CONTRACT FRAUD INVESTIGATIONS:
The Welfare Fraud Internal Investigations team will conduct investigations involving
DSS contractors or subrecipients with Agreements that have been referred for
review by DSS. These matters may or may not lead to criminal charges being filed.
Both Internal DSS Employee and Contract Fraud Investigations regularly involve the
following:
(1) Locating and interviewing accused persons and witnesses; analyzing and
evaluating their testimony; conducting surveillance if necessary.
(2) Preparing oral and written reports, correspondence, exhibit lists, and memoranda.
(3) Conferring with the Deputy District Attorney and reporting findings; discussing the
case and any evidentiary concerns; assembling and preparing evidence for
presentation in court when applicable.
(4) Testifying in court concerning the details surrounding the investigation.
(5) Appearing as a witness in an administrative proceeding, when necessary.
B. Staffing
Pursuant to MPP 20-007.115, each first-line supervisor and welfare fraud investigator shall
be a peace officer and meet the minimum standards established for peace officers.
Pursuant to MPP 20-007.116, the following background investigations may be conducted:
1. Prior to appointment, each first line supervisor and welfare fraud investigator shall have
had an investigation of his/her background, to ensure that all the minimum standards
have been met.
2. The County shall maintain a file on each first line supervisor and welfare fraud
investigator, which shall consist of all information pertinent to the background
A-3
Exhibit A
investigation and provide documentation that the minimum standards for employment,
as specified, have been met.
C. Meetings
The DA shall:
1. Meet with DSS, at minimum on a quarterly basis, to monitor the MOU as well as
establish and maintain a working relationship with DSS.
2. Exchange pertinent information, resolve problems, and work together with DSS to
effectively coordinate services. This will include providing regular updates to DSS on all
DSS related investigations and DSS-referred fraud cases.
a. Pertinent information may include, but is not limited to, video surveillance and other
materials that can assist in DSS fraud investigations.
b. Working together may include, but is not limited to, providing wage verification
assistance as needed.
D. Activity Reports
The DA shall:
1. Submit Monthly Activity Reports (MAR) to the DSS Staff Analyst on a quarterly basis.
a. Each MAR will also include documentation to support the activity reported.
2. Regularly submit a copy of the DSS 466 Fraud Activity Investigation Report, and/or other
applicable state forms.
3. Forward all Reports of Investigations to the Fraud Diversion Unit on a regular basis.
E. Audits
The DA shall:
1. Cooperate in establishing and maintaining a vigorous, viable program of
CaIWORKs/CalFresh fraud control in Fresno County.
2. Be subject to audit and review for compliance by DSS and any agency of the State of
California or Federal government involved in the administration of this program.
3. Complete timesheets using work codes to specifically identify the time spent on
CalFresh and CalWORKs programs. All timesheets shall be retained in the District
Attorney's files for recordkeeping purposes.
F. Repayments
For all repayments which the DA has involvement, the DA shall instruct clients to make
restitution in a process approved by DSS.
G. Training
The DA will provide annual Civil Rights and Privacy and Security training to DA staff in the
beginning of every calendar year and will provide relevant proof of completion to DSS by
April 1 st. DA will ensure all new hires receive Civil Rights and Privacy and Security training
and proof of completion will be submitted to DSS within 30 days of their hire. The DA agrees
to provide any other additional trainings to staff as they become required by DSS. DSS is
to provide all training materials for DA staff.
The DA has access to both read and write to the Fresno County CaISAWs database.
Training must ensure that all parties are meeting any required standards for data privacy,
CaISAWs security agreements, data security, and data integrity. Additional training on
A-4
Exhibit A
CaISAWs shall occur as needed to ensure the DA is fully capable to utilize any processes
that require the use of CaISAWs for referrals or any other actions.
III. DSS RESPONSIBILITIES
DSS Responsibilities shall include, but not be limited to, the following:
A. Fraud Referrals
Pursuant to WIC 11055.5 and 18902.5, DSS shall make a referral for welfare fraud
investigation when there is reason to believe that fraud exists, within the established
threshold of $1,500. DSS will ensure the DA is provided with all available information on
each beneficiary under investigation or prosecution. Available information includes the
SAWS2Plus/CF 285 application for the period prior to the fraud, as well as any
SAWS2Plus/CF 285 applications completed during the fraud period; all applicable SAR7
reports; recordings of a telephonic signature to include client acknowledgement of signing
the document. All documents shall be included with the initial referral.
B. Early Fraud Prevention Guidelines
Pursuant to WIC 11055.5 and 18902.5, DSS shall operate an early fraud prevention and
detection program for public aid and CalFresh benefits. Outcomes as they relate to early
fraud savings and court order collections amount will make this program cost-effective for
the County. This program shall be subject to all the following conditions:
1. No intimidation of applicants or recipients shall occur, either by referral or threat of
referral for a fraud investigation.
2. Applicants shall not be referred for a fraud investigation until after they have completed
and signed the application for aid.
3. The referral and investigation shall not delay the receipt of aid, including immediate
need payments, for eligible applicants and recipients.
4. Uniformed investigators shall not be used by DSS for its fraud prevention program.
5. The County shall abide by the confidentiality requirements in Section 10850 and the
requirements and protections in the California Right to Financial Privacy Act under
Chapter 20 (commencing with Section 7460) of Division 7 of Title 1 of the Government
Code.
6. Savings shall be considered when fraud has been identified, and when negative actions
have occurred that will cease due to investigation or prosecution.
C. Training
DSS shall assist with training, and cooperate with DA, on implementation of CaISAWs
system for referrals and reports.
1. Training will be made available as needed at regular intervals with coordination between
DSS and DA availability.
D. Meetings
DSS shall:
1. Meet with the DAs office, at minimum on a quarterly basis, to monitor the MOU as well
as establish and maintain a working relationship with the DA to effectively coordinate
services.
A-5
Exhibit A
2. Meet in person and travel as necessary to monitor surveillance footage for DSS
investigative purposes when footage is required but unable to be shared digitally or
remotely.
IV.PERFORMANCE MEASURES AND EXPECTATIONS
A. Performance Measures
The following outcomes will be reported in the MAR, DSS 466, General Planning Statistics
(GPS) report, and/or other applicable state forms as appropriate:
1. Outcome 1: Early Fraud Prevention Protected Savings ($1,555,000)
The Early Fraud Unit will complete investigations that result in a projected savings of
$1,555,000 per fiscal year. This will be measured by calculating the total annual savings
using the State of California's formula as identified in ACIN 1-81-09 unless this ACIN is
otherwise superseded.
2. Outcome 2: Ongoing Fraud Unit's Total Court Ordered Collections Amount
300 000
The Ongoing Fraud Unit's total court ordered collections amount will be at least
$300,000 per fiscal year. This number is based on the previous three-year average and
will be measured annually.
3. Outcome 3: Early Fraud Unit Completed Investigations
The Early Fraud Unit will investigate 850 cases during each fiscal year with at least 140
cases resulting in cost savings. The total will be measured annually.
4. Outcome 4: Ongoing Fraud Unit Completed Investigations
The Ongoing Fraud Unit will complete 400 investigations during each fiscal year, with
the goal of filing at least 70 cases for prosecution. Completed investigations are those
cases referred for prosecution or those closed out due to lack of evidence to support
prosecution, or referrals which fall below the $1,500 threshold. Cases closed out due to
expired statute of limitations will be quantified separately. This will be measured
annually.
All outcomes for Ongoing Fraud are based on the number of viable referrals received
from DSS.
B. Performance Expectations
The DA Ongoing Fraud Unit shall accomplish the following performance expectations as
set forth and track them in the provided activity reports:
1. Review and investigate 100% of Internal DSS Employee Investigation referrals.
2. Review and investigate 100% of DSS Contract Investigation referrals.
3. Notify DSS within 15 calendar days on 100% of occurrences when a DCA is signed
as a condition of a deferred court judgment on a quilts plea.
a. Each occurrence will be accurately reported in the MAR.
A-6
Exhibit B
Compensation
The DA will be compensated for performance of its services under this Agreement as provided in this
Exhibit B. The DA is not entitled to any compensation except as expressly provided in this Exhibit B.
Welfare Fraud - Summary Of Positions
FY 2024-25
ORGANIZATION: Fresno County District Attorney
SERVICES: Welfare Fraud Investigation and Prosecution
CONTRACT PERIOD: July 1, 2024—June 30, 2025
No. of Regular Total Salaries
JCN Title Positions Salaries Benefits and Benefits
1212 Deputy District Attorney IV 1.0 $165,197 $107,285 $272,482
1793 Supervising DA Investigator 1.0 $144,489 $142,359 $286,848
1760 Senior District Attorney Investigator 4.0 $545,698 $465,179 $1,010,877
1758 Investigative Technician 2.0 $98,573 $81,142 $179,715
1261 Legal Assistant 1.0 $43,921 $25,296 $69,217
Total Regular Salaries and Benefits 9.0 $997,878 $821,261 $1,819,139
Extra Help $20,000 -- $20,000
Overtime $500 -- $500
Salaries, Benefits, Extra Help & Overtime 9.0 $1,018,378 $821,261 $1,839,639
B-1
Exhibit B
ORGANIZATION: County of Fresno District Attorney
SERVICES: Welfare Fraud Investigation and Prosecution
CONTRACT PERIOD: July 1, 2024—June 30, 2025
Account No.I Account Name Amount
6000 Salaries and Employee Benefits
6100 Regular Salaries $ 997,878
6200 Extra Help 20,000
6300 Overtime 500
6350 Unemployment Insurance 264
6400 Retirement Contribution 641,155
6500 OASDI Contribution 76,338
6550 Workers' Comp Contribution 12,366
6600 Health Insurance Contribution 88,690
6670 Benefits Administration 2,448
Total Salaries & Employee Benefits $ 1,839,639
7000 Services and Supplies
7039 Mobile Communication $ 10,200
Mobile radio network access
7101 Liability Insurance 11,818
7205 Maintenance— Equipment 4,000
Maintenance/repair of office and law enforcement equipment.
7250 Memberships 820
CA State Bar dues and Investigator CDAIA
7265 Office Expenses 6,800
Routine office supplies
7268 Postage 280
Costs of mailing out statements, Barnes notices, and W & I requirements
7269 Printing 150
7286 PeopleSoft Human Resources Charge 2,484
B-2
Exhibit B
ORGANIZATION: County of Fresno District Attorney
SERVICES: Welfare Fraud Investigation and Prosecution
CONTRACT PERIOD: July 1, 2024—June 30, 2025
Account No.I Account Name Amount
7287 PeopleSoft Financial Charge $ 2,059
7295 Professional and Specialized Services 3,605
Document Destruction; Court Reporter/Transcript Services; Interpreters
Court/Office, General Services Department (Security); County Administration
Office (Labor Distribution); Money Orders; County Personnel Department;
(Legal Services); Locate (Skip Tracing); Extraditions
7296 Data Processing Services: 36,853
Computer network access
7325 Publications and Legal Notices 540
7385 Small Tools & Instruments 1,000
Small tools for office and investigative staff
7415 Transportation, Travel & Education 8,627
Transportation, meals, and registration fees for program related in-state
travel/training
7416 Transportation &Travel— Fleet 41,739
Program vehicle operation and maintenance costs
Total Services and Supplies $ 130,975
7800 Other Charges
7868 Department Overhead Allocation (10% of total Regular and Extra Help salaries) $ 25,600
Total Other Charges $ 25,600
Total Appropriations $ 1,996,214
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