Budget Change Proposal - Cover Sheet - CA.gov
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
STATE OF CALIFORNIA Budget Change Proposal - Cover Sheet DF-46 (REV 09/19) Budget Change Proposal - Cover Sheet Fiscal Year: 2020-21 Business Unit: 0820 Department: Department of Justice Priority Number: N/A Budget Request Name: 0820-029-BCP-2020-GB Program: Legal Services Subprogram: Public Rights Division Budget Request Description: Registry of Charitable Trusts Workload Budget Request Summary: The Department of Justice requests 12 positions and $1.6 million Registry of Charitable Trusts Fund in 2020-21, and 13 positions and $1.5 million in 2021-22 and ongoing, to enhance the Registry of Charitable Trusts Section’s efforts to increase enforcement of registration and reporting requirements, and to detect fraud and misuse of charitable assets. Requires Legislation: ☐ Yes ☒ No Code Section(s) to be Added/Amended/Repealed: Does this BCP contain information technology (IT) components? ☐ Yes ☒ No If yes, departmental Chief Information Officer must sign. Department CIO Name: Department CIO Signature: Signed On Date: For IT requests, specify the project number, the most recent project approval document (FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date. Project Number: Project Approval Document: Approval Date:
If proposal affects another department, does other department concur with proposal?
☐ Yes ☒ No
Attach comments of affected department, signed and dated by the department director
or designee.
Prepared By: Catherine Taylor
Date: January 8, 2020
Reviewed By: Matt Rodriguez
Date: January 8, 2020
Department Director: Chris Ryan
Date: January 8, 2020
Agency Secretary:
Date:
Department of Finance Use Only
Additional Reviews: Capital Outlay:☐ ITCU:☐ FSCU:☐ OSAE:☐
Department of Technology:☐
PPBA: Emma Jungwirth
Date submitted to the Legislature: January 10, 2020A. Budget Request Summary The Department of Justice requests 12 positions and $1.6 million Registry of Charitable Trusts Fund in 2020-21, and 13 positions and $1.5 million in 2021-22 and ongoing, to enhance the Registry of Charitable Trusts Section’s efforts to increase enforcement of registration and reporting requirements, and to detect fraud and misuse of charitable assets. 2 Staff Services Managers I 10 Staff Services Analyst (SSA) 1 Office Technician – Typing (OT-T) 13 Total Positions B. Background/History The Supervision of Trustees and Fundraisers for Charitable Purposes Act (Act), Government Code section 12580, sets forth the Attorney General’s authority over charities, trustees and charitable fundraisers. Title 11, sections 300-316, 999.6-999.9.5, of the California Code of Regulations were promulgated under the authority of the Act. The Act requires charitable entities, charitable trustees, professional fundraisers, fundraising counsel, and commercial co- venturers to register and file reports with the Registry of Charitable Trusts Section (Registry) (Government Code sections 12584-12590.) For-profit fundraisers are required to file annual financial reports with the Registry detailing expenses associated with their campaigns. Government Code sections 12587 and 12587.1 specifically require that revenue generated from registration and renewal fees are used by the Department of Justice to operate and maintain the Registry, to provide public access via the Internet to reports filed with the Registry and for the enforcement of registration and reporting requirements. The Legislature also tasked the Attorney General with the responsibility to investigate and protect charitable assets (Government Code sections 12584, 12588, 12589, 12591, and 12598). The registration and reporting requirements are a critical element in the Attorney General’s efforts to protect charitable assets. The publication of the registration forms and annual reports by the Registry also promote transparency, allowing donors to see how a charity is using their donations. The Registry manages and enforces the registration and annual financial reporting requirements for charities, charitable trustees and fundraisers. The Registry publishes filings on the Attorney General’s website and provides assistance to charities by offering educational guides. The Registry is a self-funded program, raising revenue from registration filing fees, as well as late fees paid by registrants, which fund the Registry’s operations. The Registry has five program units that oversee the filing of registrations, renewal of financial forms, and collection of filing fees. The primary responsibilities of these program units are to process and enforce the registration and reporting requirements, and to ensure that information provided complies with the registration and reporting laws and regulations. The program units are: • Initial Registration - process initial registration and filing fees.
• Renewals - process annual renewal registration reports and filing fees.
• Delinquency - enforce timely annual renewal registration reports and collect filing and late
fees.
• Commercial Fundraising - register, collect filing fees and annual reports.
• Raffles - register, collect filing reports and raffle registration fees.
Registration, Renewals and Delinquency are highly integrated and interdependent, and the two
remaining program units, Raffles and Commercial Fundraising, are independent programs.
Resource History (Dollars in thousands)
Program Budget 2014-15 2015-16 2016-17 2017-18 2018-19
Authorized Expenditures $3,137 $5,373 $5,311 $5,004 $5,740
Actual Expenditures $2,688 $3,302 $3,710 $4,322 $5,740
Revenues $3,940 $4,174 $4,464 $4,560 $4,947
Authorized Positions 28.0 40.0 40.0 36.0 42.0
Filled Positions 25.0 27.0 34.0 33.0 39.0
Vacancies 3.0 13.0 6.0 3.0 3.0
Workload History
Workload Measure (Hours) 2014-15 2015-16 2016-17 2017-18 2018-19
Initial Registrations N/A 4,004 5,247 5,047 5,674
Renewals N/A N/A 46,096 44,617 52,344
Delinquency Notices N/A N/A 11,587 11,195 10,522
Raffle Reports N/A N/A 2,176 4,231 5,606
Raffle Registrations N/A N/A 4,656 4,907 7,685
Professional Fundraising Reports N/A N/A 1,863 1,597 2,252
Professional Fundraising Registrations N/A N/A 777 803 842
C. State Level Considerations
California nonprofit organizations, as well as foreign nonprofits doing business in California,
generate $243.2 billion in annual revenues and hold $909.3 billion in charitable assets. All
nonprofit organizations organized for the benefit of the public must register with the Attorney
General, with the exception of schools, religious organizations, hospitals, licensed health care
service plans, governmental entities, regulated cemetery corporations and committees defined
in Government Code section 82013.
The Registry works with the Secretary of State (SOS) and Franchise Tax Board to determine
which organizations need to register and which organizations are non-compliant with their
renewal filings. This communication helps ensure that charity organizations are fully compliant
with the Attorney General’s requirements, and that they are being held accountable.D. Justification The Registry is requesting $1.6 million for 13 positions consisting of 2 Staff Services Managers I, 10 SSAs, and 1 OT-T. The requested resources will expand the Registry’s efforts to increase enforcement of registration and reporting requirements. Adding resources to the Registry’s program units will ensure further improvement with registration and reporting compliance, the critical review of data filed with the Registry, and the proper oversight and direction of the Registry staff and processes. Currently, the Registry manages over 115,782 active organizations. Of those organizations, 51,615 (45 percent) are listed as delinquent in their annual reporting requirements and 62,694 (54 percent) are current with their reporting requirements. The remaining 1,473 (1 percent) are in other statuses, such as pending dissolution. Every month, SOS authorizes the formation of approximately 800 new charities. With data from SOS and Franchise Tax Board, the Registry database includes 123,004 unregistered organizations that may need to register. The Registry seeks to augment its enforcement efforts to suspend charities that chronically fail to file annual reports and to bring unregistered charities in compliance with state law. At current staff levels, the Registry can only process 468 applications a month. While the resources provided in 2015-16 and 2018-19 allowed the Registry to reduce the processing time for submitted forms from 120 to 160 days to approximately 45 days, additional staff is needed to increase the number of applications processed monthly. Since the public relies on the Registry’s website to provide relevant information on non-profits, reducing lag time between the Registry’s receipt of information and its ability to act on and post information is important. Since Registration, Renewals, and Delinquency are highly integrated and interdependent, this request largely addresses delinquent charities. In 2017, the Registry issued notices of intent to suspend 2,263 charities and suspended 236 charities that were chronically delinquent in their annual reporting requirements. In 2018, the Registry increased its efforts by issuing notices of intent to suspend 3,748 charities and suspended 338 charities. While the Registry increased its outreach efforts by sending reminder postcards to charities, producing educational webinars, and collaborating with both the SOS and the Franchise Tax Board to give charities notice alerts of their registration and annual reporting requirements, charities regrettably continue to miss the mark when it comes to renewing their registration. While the delinquency rate since 2016 has significantly decreased from 65,173 to 51,615 in 2018-19, the goal is to reduce the delinquent population to less than 35,000. Adding staff to address unregistered and delinquent charities will increase the Registry’s revenue resulting from anticipated initial registration fees and annual renewal filing fees, and will accelerate its efforts to improve the compliance of non-registered and delinquent organizations. In addition to increased efficiencies in Registrations, Renewals, and Delinquencies, additional resources will allow the Registry to increase its enforcement efforts. In July 2018, the Registry initiated a project to target charities that purportedly provided veteran-related services. Of the
1,589 charities identified, Registry found 554 were delinquent on annual reporting requirements and 1,035 never registered. The Registry issued 498 cease and desist notices to the unregistered charities and revocation notices to the delinquent charities. Because of this enforcement effort, 44 percent of the delinquent charities cured their delinquency status and 19 percent of the unregistered charities registered. In 2018, the Registry started targeting professional fundraisers and assessing late fees for their failure to timely file annual reports collecting over $80,000 in late fees. The Registry also increased its enforcement of raffle filing requirements and began denying registration to charities that failed to file past due annual reports. The Registry staff proactively monitored online websites to investigate illegal online raffles conducted in California, and issued cease and desist orders against three companies. Additional staff will allow the Registry to invest more resources towards higher value enforcement activities. The Registry coordinates its enforcement activities with the Charitable Trust Section’s legal staff. Two outcomes of note include (1) Wounded Warriors Support Group and (2) In re Maguire/Maguire. (1) People v. Wounded Warriors Support Group, et al. On November 5, 2018, a jury rendered a verdict in favor of the People and awarded $8,755,268 in damages against this family run charity for breach of fiduciary duty, self-dealing transactions, illegal raffles, unjust enrichment, and failure to run charitable programs for which the nonprofits were formed. The Registry staff worked with the Charitable Trust legal team by issuing the initial cease and desist order and by providing evidence and witness assistance at trial. (2) In re Maguire/Maguire, Inc. Maguire/Maguire, Inc. was registered as Fundraising Counsel but it failed to comply with reporting requirements and illegally charged charities percentage based fees. In November 2018, the Registry issued a cease and desist order, and was able recover $110,000 in penalties and $1,800 in late fees. Initial Registration: The Initial Registration Unit is currently staffed by one Associate Government Program Analyst (AGPA), four SSAs, and three OT-Ts. The Registry is requesting five additional SSAs for the Registration Program. The Initial Registration team processes the application forms filed by charities formed or operating in California. The Registry receives an average of 765 applications and responses to Notice to Register per month. At current staffing levels, the Registration Analyst has been able to review and approve an average of 468 new registrations per month from the rolling inventory. The inventory is processed on a “first in-first out” basis and processing time has averaged 30 to 60 days. An organization must clear any deficiency and register before it can begin conducting business and actively solicit funds in California. Since July 2016, the number of registered charities that are in Current Status increased from 51,677 to 62,694 as of June 2019, a total increase of 11,017 organizations. There are 238,786
known charities in California, with 123,004 that are not registered, and 115,782 that are active registered charities. The goal of the Registry is to progressively reduce the number of charities that are inactive or are doing business but have failed to register. It is estimated that current SSAs in the unit average 1,123 registrations annually. By increasing staffing by five SSAs, the unit is projected to increase its registrations by approximately 5,615 organizations a year. The additional analysts will be dedicated to targeting the 123,004 unregistered organizations and bringing them into compliance. The additional resources would allow the Registry to continue its efforts in increasing the number of current registered charities, as well as continue improving service level processing times and nonprofit compliance enforcement efforts. Charites that are sent Notices to Register (NTR) often respond with filings that also include delinquent filings for previous years of operating without registering. Delinquent filing responses to NTR require additional time for analysts to review and evaluate the submission for missing requirements, completion, and approval. The current eight Registration staff includes five analysts (one AGPA and four SSAs) and three OTs. The five analysts perform the essential task of reviewing and researching the incoming applications while the three OTs provide the support needed such as phone calls, payment processing, creating correspondence, and file maintenance. The 123,004 unregistered population is in need of stratification and analysis to devise handling strategy, and therefore, the unit is currently not sending out mass-mailing NTR. With five additional analysts, the unit will accelerate the current results and increase compliance by mass-mailing NTRs. As a result, the responses from the NTRs will increase the workload for both Registrations and Renewals. The primary challenge to sending out notices is performing the analysis before sending the appropriate notice and managing the response volume. Unregistered organizations may have been in operation for years prior, and must submit financials for all years in operation, in addition to the initial registration materials. The unregistered population also includes mutual benefit organizations that hold charitable assets. The Registry must review activity and founding documents to make the proper determination. Delinquent organizations may also require the submission of multiple years of filings which would also require a more extensive analysis. With all charities, gaining good address information and getting in contact with a responsive representative of the organization can be an added challenge. Many of the charity cases require contact research, and multiple, repeated mailing and call attempts. For Fundraisers and Raffle, Registry has been successful with the issuance of annual registration reminders and delinquent reports. For charities, Registry is performing targeted mailings due to the large portfolio volume based on time, benefit, cost and available resources. Currently, Registry is sending out reminder notices for organizations that have a status of “reporting incomplete” and will become delinquent unless annual submission requirements are satisfied. Delinquency notices are also being sent to organizations that have recently turned delinquent and have valid contact information. Finally, NTR reminders are sent to organizations known to be actively conducting charitable solicitations and veterans organizations.
Historical data compiled for the previous 24 months indicates that the current 5 analysts can review and approve an average of 468 organizations per month (5,616 organizations per year). The analysts are responsible for registering an organization from beginning to end including many back and forth communications, emails, phone calls, communication with legal staff, request for missing documents and/or payments with the help of the OTs. Five new analysts added to its workforce will allow the unit to increase output through expanded mass-mailing and it is projected that the unit would double its output capacity. The additional analysts will increase the rate of new registrations to 936 per month, 11,232 organizations per year, after full implementation and training of new staff. Refer to the workload table in Appendix A. Registration Renewal: The Registration Renewal Unit is currently staffed by one AGPA, four SSAs and three OT-Ts. The Registry is requesting one additional SSA. The Registration Renewal Unit processes annual registration renewal forms. On average, the unit receives 3,826 renewal packages per month, and up to 11,000 per month during the peak filing periods of May and November. The Registry is requesting one additional SSA to accommodate the increased volume of annual renewals as a result of reducing the delinquency rate, addressing the unregistered population, and the approximate three percent annual increase, based on ongoing operations, in the total number of annual filings. The increased workload in Initial Registrations and Delinquency is anticipated to increase the volume of renewals one year later. The Registry is requesting one position to be allocated beginning in fiscal year 2021-22. Refer to the workload table in Appendix A. Delinquency: The Delinquency Program Unit is currently staffed by four SSAs and three OT- Ts. The Registry is requesting an additional three SSAs and one OT-T for the Delinquency Program. The unit follows up on registered charities that have failed to complete their annual registration renewal. When a charity fails to complete its renewal, the unit sends a letter advising the charity of the missing reports. Delinquency also reviews and processes delinquent financial reports, posts the renewal fees, and responds to public inquiries. The number of delinquent organizations has reduced from 65,173 in July of 2016 to 51,615 as of June 2019. With the requested additional staffing, the goal of the Registry is to reduce the delinquent population to 25,000 to 35,000 delinquent organizations, or about 15 percent to 30 percent of total registered organizations. Of the 115,782 currently registered organizations, 62,694 (54 percent) are current with their annual filings. 51,615 (45 percent) organizations are delinquent, and the remaining 1,473 (1 percent) are in other forms of non-reporting status. To reduce the number of delinquent organizations, Registry staff issue delinquency notices and perform outreach efforts. This is labor-intensive and time-consuming, requiring additional staff to continue to achieve progress in this area. Actively managing the number of current and delinquent organizations has resulted in an increase in the amount of associated renewal and late fees. The Registry continues to make steady progress toward the goal of reducing delinquent organizations to about 35,000 or having current organizations represent about 75 percent of total registered organizations.
The Delinquency Program works with previously registered organizations that have become delinquent in filing their annual financial reports. Delinquency sends an average of 286 first delinquent notices per month, which contributes in part to the receipt of about 976 pieces of mail per month to process. Delinquent filing responses to notices requires additional time for analysts to review and evaluate the submission for missing requirements, completion, and approval. Current Delinquency staffing includes 4 SSAs and 3 OTs. The 4 SSAs perform the essential task of reviewing and researching the submissions, while the 3 OTs provide support, such as answering phone calls, processing payments, creating correspondences, and maintaining files. The 51,615 delinquent population is in need of stratification and analysis to devise handling strategy, and as a result the program is currently not mass-mailing delinquent notices. With three additional analysts and one additional OT, the program could accelerate the current results and increase compliance by performing the necessary analysis to conduct mass- mailing of delinquent notices. The responses from the notices will increase the workload for both Delinquency and Renewals. Historical data compiled for the previous 24 months indicates that the existing 4 analysts can review and approve an average of 617 organizations per month (7,404 organizations per year). The analysts review and complete the curing process of an organization’s delinquent status with many back and forth communications, emails, phone calls, communication with legal staff, request for missing documents and/or payments, with the help from the OTs. Adding 3 analysts and 1 OT will allow the unit to expand its capacity on outreach to delinquent organizations by 31 percent. The additional staff, after full implementation and training, will increase the cure rate of delinquencies by 191 organizations per month (2,292 organizations per year), and accelerate the progress made in decreasing the number of delinquent organizations, as well as continued improvement of service level processing time and organizational compliance. Refer to the workload table in Appendix A. Raffle: The Raffle Program is currently staffed by one SSA and one OT. The Raffle Program reviews and approves raffle registration applications and annual raffle financial reports filed by charities. The program reviews forms and documents, posts registration fees, and responds to public inquiries. The program receives an average of 586 applications, 196 incomplete notices, and 407 reports per month. The volume for applications and reports fluctuates up to 1400 and 1100, respectively, per month during the peak filing periods of August and September. The unit also responds to an average of 64 phone calls and 124 emails per month. Registry requests increasing the Raffle Program’s workforce by half of a SSA to help improve service level processing time especially during peak inflow periods for annual registration and financial reporting, improve the continuity work, and allow for more detailed analysis of the data submitted on the forms. Refer to the workload table in Appendix A. Professional Fundraising: The Professional Fundraising Unit is currently staffed by one AGPA. The Professional Fundraisers Program reviews and approves annual registration forms, financial reports, and notices of intent filed by professional fundraisers. This program also posts registration fees, prepares the Attorney General’s Report on Commercial Fundraisers
and responds to public inquiries. The unit receives an average of 68 applications, 141 reports, and 188 Notices of Intent per month. The volume fluctuates up to 370, 550, and 400, respectively, per month during the peak filing periods of December to February. The unit also responds to an average of 26 phone calls and 214 emails, and 66 pieces of miscellaneous correspondences per month. Registry requests increasing the Professional Fundraising Unit’s workforce by one-half SSA to improve service level processing time especially during peak inflow periods for annual registration and financial reporting, improve the continuity work and allow for more detailed analysis of the data submitted on the forms. Refer to the workload table in Appendix A. Statistics are tabulated monthly by the individual programs of the Registry. A new and more comprehensive method of keeping statistics was created in July 2016. The statistics are analyzed by Registry management to quantify inflows, quantify work in progress, and quantify completed work. The collective information is used to determine where resources may be needed and redirected, to balance workload and ensure that appropriate resources are made available to the areas of highest importance. Currently, the Registry is staffed by 2 Staff Services Managers I, responsible for managing 33 analysts and OT-Ts (3 AGPA, 1 ITS I, 16 SSA, 13 OT-T). Registry requests to add two more Staff Services Managers I to expand the managerial and supervisory coverage. Additional managers will play a central role in efficient workflow analysis which would help in effective prioritization and assignment of staff, ensuring that both processes and supporting strategies are well defined and optimized. Reports are also generated on a monthly basis within the Registry database which are used to measure how many current/delinquent organizations are registered, as well as the number of organizations that are not registered. This information is used to measure the effectiveness of program activities and overall charity compliance. Finally, financial reports are reviewed on a monthly basis to determine the effectiveness of charity compliance, measure/track available resources, and ensure conformance to revenue and spending targets. E. Outcomes and Accountability The increased staffing at the Registry will allow it to effectively oversee charity registry filings and process registration requests and other reporting documents in a timely nature. This will, in turn, reduce the number of organizations that are incompliant with the registration and/or reporting requirements of the Act. The Registry’s goal is to ensure that all qualified organizations are compliant. The failure to register and report interferes with public access to important organization data concerning the status and finances of the delinquent and unregistered organizations. The failure to register and report hampers the Registry’s ability to detect fraud, fiscal mismanagement, and loss of charitable assets, and impedes its referrals to the Registry’s legal and/or audit staff for further investigation. Additional resources will improve and substantially accelerate the desired compliance results pertaining to registration of unregistered and delinquent organizations.
Projected Outcomes Workload Measure (Hours) 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Initial Registrations 5,616 8,424 11,232 11,232 11,232 11,232 Renewals 56,105 58,105 60,105 63,950 69,365 69,365 Delinquency Notices 11,278 12,424 13,570 13,570 13,570 13,570 Raffle Reports 4,883 6,104 6,409 6,537 6,668 6,668 Raffle Registrations 7,037 8,444 8,866 9,043 9,224 9,224 Professional Fundraising 1,691 2,029 2,029 2,029 2,029 2,029 Reports Professional Fundraising 816 857 857 857 857 857 Registrations F. Analysis of All Feasible Alternatives Alternative 1 – Approve as Requested Approve 12 positions and $1.6 million Registry of Charitable Trusts Fund in 2020-21, and 13 positions and $1.5 million in 2021-22 and ongoing, to enhance the Registry’s efforts to increase enforcement of registration and reporting requirements, and to detect fraud and misuse of charitable assets. Alternative 2 – Approve Partial Funding Approve 6 positions and $800,000 Registry of Charitable Trusts Fund in 2020-21 and ongoing. These resources would allow the Registry to increase enforcement of registration and reporting requirements, but less delinquent charities would be addressed than if the full request were to be granted. Alternative 3 – Deny the Request This alternative would prevent the Registry from increasing non-profit compliance with state law and expose the public to organizations that are misappropriating charitable assets and other acts harmful to the public interest. G. Implementation Plan If approved, the Registry will recruit and hire the two Staff Services Manager I, nine SSAs, and one OT-T in July 2020. The remaining one SSA will be added in fiscal year 2021-22. This strategy will address both immediate needs and projected growth as illustrated in the workload tables.
H. Supplemental Information Appendix A – Workload Tables I. Recommendation Approve Alternative 1 to allow the Registry to further increase enforcement of registration and reporting requirements, increase its effectiveness in detecting fraud and misuse of charitable assets, and enable the Section to continue to provide and further enhance service level processing time and continuity of coverage for the various Registry program units.
APPENDIX A
A - Initial Registration Workload Data
Initial Registration (SSA) Volume Minute/ Hours Per
(Effective 7/1/2020) Task Year
New Registrations (Review/ Approval/ Confirmation 11,232 70 13,104
Letters)
Posting Fees/Returns 11,232 3 562
Reviewing/ Generating/ Creating NTR/ 16,488 1 275
Disallowance/Registering Delinquent/ Exemption Letters
Public Inquiries (Mail/Phone/Email) 17,874 8 2,383
Check Deposit Bag Process/Review 261 15 65
Total Hours 16,389
Full-Time Equivalent 9.2
Available Positions 4.0
Required Positions 5.2
Requested Positions 5.0
Five Registry positions were approved in the 2018-19 budget change proposal, which included
one OT and four SSAs. One OT and two SSAs were conversions of limited-term appointments
to permanent appointments. The remaining two SSAs were added to Initial Registration to
assist with increased workload.
The Registration Program has developed a successful long-term approach with helping
organizations become compliant with their reporting requirements by creating an efficient
process of notification and follow through with legal support. Analysts now enhance processes
by performing the necessary analytics in a one-step beginning-to-end determination requiring
increased research and analysis of incoming applications.
Posting fees and return checks are now performed by the OT instead of an SSA. Time gained
by the process enhancement of removing OT duties from SSA work increased the time
available for analysis and research to make a final determination in one review of the
application, which takes more time. Standard letters that do not require research is now
processed by an OT instead of an SSA, streamlining the process to dedicate the SSA time
only on letters requiring detailed analyses. Basic responses to public inquiries (mail, phone,
and email) are now performed by the OT instead of an SSA, streamlining the process to
dedicate the SSA time only on answering phone calls and emails that require analysis.B - Renewal Workload Data Renewal Program (SSA) Volume Minutes/ Hours (Effective 7/1/2021) Task Per Year Reviewing of annual financial reports 56,105 7 6,546 Creating incomplete form notices and reviewing upon their 16,832 5 1,403 return Renewal Compliance Review of reports 435 0 0 Preparation of Registry daily deposit 261 45 196 Responding to public inquiries (phone/email/misc.) 9,201 7 1,074 Total Hours 9,219 Full-Time Equivalent 5.2 Available Positions 4.0 Required Positions 1.2 Requested Positions 1.0 The Renewals Program has developed a successful long-term approach with helping organizations renew their annual registration. The minutes per task reflect the current work processes of the SSA’s that include an expanded analytical review of the organization’s filings. The resources required will increase each fiscal year as more organizations come into compliance as Registered and Current. The request for one SSA in fiscal year 2021-22 will address the initial phase of organizations who have recently become registered and current, and are submitting their subsequent year annual registration renewal. In 2018-19, the additional SSAs approved in the budget change proposal for the Initial Registrations Program were based on projected volume of financial reports at that point in time. The projected workload did not materialize and based on the Section's workload analysis, one SSA originally approved for Initial Registrations was repurposed and redirected to the Renewals Program to assist with the Unit’s workload. The volume associated with creating notices and public inquiries has increased as the criteria of review, greater usage of email, and an increased usage of our electronic filing platform, has driven an increase in the total quantity of notices generated, as well as public inquiries.
C - Delinquency Workload Data Delinquency Program (SSA) Volume Minutes/ Hours (Effective Date 7/1/2020) Task Per Year Reviewing & processing of delinquent annual financial reports 4,853 20 1,618 Posting of delinquent renewal fees/late fees 4,853 5 404 Creating of delinquency notices 6,303 5.5 578 Reviewing and handling organizations failing to respond 1,450 150 3,625 Responding to public inquiries (phone/email/ misc. mail) 25,212 15 6,303 Total Hours 12,528 Full-Time Equivalent 7.1 Available Positions 4.0 Required Positions 3.1 Requested Positions 3.0 Delinquency Program (OT-T) Volume Minutes/ Hours (Effective Date 7/1/2020) Task Per Year Reviewing & processing of delinquent annual financial reports 4,853 40 3,235 Posting of delinquent renewal fees/late fees 4,853 5.75 465 Creating of delinquency notices 6,303 24 2,521 Reviewing and handling organizations failing to respond 1,450 0 0 Responding to public inquiries (phone/email/ misc. mail) 25,212 2 840 Total Hours 7,061 Full-Time Equivalent 4.0 Available Positions 3.0 Required Positions 1.0 Requested Positions 1.0 The Delinquency Program has developed a successful long-term approach with helping organizations become current. The minutes per task reflect the current work processes of the OT-T’s and SSA’s, in relation to the minutes per task for each organization and include the additional time intensive handling of working with organizations who have become Suspended or Revoked. The Registry enhanced its methodology of counting volume due to the expanded number of delinquency notices the Registry will send to organizations and the expected cure rate from those additional notices. It is expected that with the additional resources, the number of organizations issued a delinquency notice will expand by 2,292 notices, to 6,303 per year versus the current average of 4,011 per year. The curing of an organization’s delinquent registration renewal often involves multiple notices. The volume in the 2020-21 table reflects the number of organizations issued a notice of delinquency. The table does not account for all mail received or all notices issued. The Registry often receives mail from organizations attempting to self-cure, referred through other state agencies, referred through other Registry programs, or as part of an incomplete emailed/voicemail public inquiry. The time associated with these additional organizations is reflected in the minutes/task section and not fully represented in the quantity of volume column. Total mail volume which represents an
organizations submittal of paper filings for the past 24 month period has averaged 11,712
pieces of mail per year.
The “Reviewing and handling of org failing to respond” is not a new task and was not
previously demonstrated in the workload table in the 2018-19 budget change proposal. These
organizations have not submitted financial reports. As more organizations have been issued
notices of delinquency, approximately 23 percent of organizations do not initially respond and
their charity registration is “Suspended” and subsequently “Revoked.” This work strategy has
taken up a significant amount of time and increased the number of public inquiries and
therefore, now factors into the ongoing workload.
D - Raffle Workload Data
Volume Minutes/ Hours
Raffle Program Task Per Year
Reviewing & processing of application forms 7,037 22 2,580
Reviewing & processing of annual report forms 4,883 20 1,628
Creating incomplete form notices 2,351 12 470
Responding to public inquiries & follow up correspondence 2,263 5 189
Total Hours 4,867
Full-Time Equivalent 2.7
Available Positions 2.0
Required Additional Positions 0.7
Requested Positions 0.5
E - Professional Fundraising Workload Data
Volume Minutes/ Hours
Professional Fundraising Program
Task Per Year
Reviewing & processing of annual registration forms 817 30 409
Reviewing & processing of annual financial reports 1,691 30 846
Reviewing & processing of annual Notices of Intent 2,254 15 564
Responding to public inquiries & follow up correspondence 3,667 15 917
Total Hours 2,736
Full-Time Equivalent 1.5
Available Positions 1.0
Required Additional Positions 0.5
Requested Positions 0.5
The Raffle Program and the Professional Fundraising Program have developed a successful
long-term approach with helping organizations become compliant. The minutes per task
reflect the current work processes of the SSAs, in relation to the minutes per task for each
organization.BCP Fiscal Detail Sheet
BCP Title: Registry of Charitable Trusts Workload
BR Name: 0820-029-BCP-2020-GB
Budget Request Summary
Personal Services
Personal Services FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
Positions - Permanent 0.0 12.0 13.0 13.0 13.0 13.0
Total Positions 0.0 12.0 13.0 13.0 13.0 13.0
Earnings - Permanent 0 641 690 690 690 690
Total Salaries and Wages $0 $641 $690 $690 $690 $690
Total Staff Benefits 0 372 401 401 401 401
Total Personal Services $0 $1,013 $1,091 $1,091 $1,091 $1,091Operating Expenses and Equipment
Operating Expenses and Equipment FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
5301 - General Expense 0 308 218 210 210 210
5302 - Printing 0 4 4 4 4 4
5304 - Communications 0 25 27 27 27 27
5306 - Postage 0 3 3 3 3 3
5320 - Travel: In-State 0 26 29 29 29 29
5322 - Training 0 11 12 12 12 12
5324 - Facilities Operation 0 141 45 45 45 45
5346 - Information Technology 0 24 26 26 26 26
Total Operating Expenses and Equipment $0 $542 $364 $356 $356 $356
Total Budget Request
Total Budget Request FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
Total Budget Request $0 $1,555 $1,455 $1,447 $1,447 $1,447Fund Summary
Fund Source
Fund Source FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
State Operations - 3088 - Registry of Charitable
0 1,555 1,455 1,447 1,447 1,447
Trusts Fund
Total State Operations Expenditures $0 $1,555 $1,455 $1,447 $1,447 $1,447
Total All Funds $0 $1,555 $1,455 $1,447 $1,447 $1,447
Program Summary
Program Funding
Program Funding FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
0435028 - Public Rights 0 1,555 1,455 1,447 1,447 1,447
9900100 - Administration 0 194 182 181 181 181
9900200 - Administration - Distributed 0 -194 -182 -181 -181 -181
Total All Programs $0 $1,555 $1,455 $1,447 $1,447 $1,447Personal Services Details
Positions
Positions FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
1139 - Office Techn (Typing) (Eff. 07-01-2020) 0.0 1.0 1.0 1.0 1.0 1.0
4800 - Staff Svcs Mgr I (Eff. 07-01-2020) 0.0 2.0 2.0 2.0 2.0 2.0
5157 - Staff Svcs Analyst (Gen) (Eff. 07-01-
0.0 9.0 10.0 10.0 10.0 10.0
2020)
Total Positions 0.0 12.0 13.0 13.0 13.0 13.0
Salaries and Wages
Salaries and Wages FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
1139 - Office Techn (Typing) (Eff. 07-01-2020) 0 43 43 43 43 43
4800 - Staff Svcs Mgr I (Eff. 07-01-2020) 0 165 165 165 165 165
5157 - Staff Svcs Analyst (Gen) (Eff. 07-01-
0 433 482 482 482 482
2020)
Total Salaries and Wages $0 $641 $690 $690 $690 $690Staff Benefits
Staff Benefits FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
5150900 - Staff Benefits - Other 0 372 401 401 401 401
Total Staff Benefits $0 $372 $401 $401 $401 $401
Total Personal Services
Total Personal Services FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
Total Personal Services $0 $1,013 $1,091 $1,091 $1,091 $1,091You can also read
