IOAI Activities

Pursuant to Government Code Section 14460, IOAI provides a full scope, independent, and objective audit and investigation program. As such, IOAI develops an annual plan outlining audit and investigative priorities and identifies specific engagements to be performed during the coming year. Performance audits provide objective analysis and conclusions to assist management and those charged with governance and oversight with improving program performance and operations, reduce costs, facilitate decision making, and contribute to public accountability. Performance audits vary widely depending on the audit objectives and scope. The most common audits conducted by our office include the following:

• Performance/Program Audits assess the extent to which legislative, regulatory, or programmatic goals and objectives are being achieved and determine if Caltrans has adequate controls in place to manage the programs. These audits are performed under government auditing standards.
• Compliance/Project Audits determine whether project costs claimed and reimbursed are allowable, reasonable, and adequately supported in compliance with agreement provisions, state and federal laws and regulations, and to determine whether project deliverables (outputs) and benefits (outcomes) are completed as described in executed project agreements or approved amendments. Additional compliance audits include audits of contractor and consultant contracts. These audits are performed under government auditing standards.

IOAI also performs review activities including, but not limited to, reviews of architectural and engineering cost proposals and reviews of local government indirect cost rate proposals. See the Glossary for a more detailed description.

Pursuant to Government Code Section 14110.1, IOAI has a dedicated unit that reviews the programs, policies, and procedures related to diversity and small business development efforts by Caltrans. The unit provides recommendations and shares best practices that assist Caltrans in expanding its diversity efforts and small business development opportunities.

IOAI’s Investigations Unit conducts independent administrative investigations involving allegations of employee misconduct and assists external entities, such as the California State Auditor and law enforcement entities, with their investigations. This unit also administers the Inspector General Hotline, which is available 24 hours per day, 7 days per week to receive allegations of employee misconduct or of fraud, waste, and abuse.