Tulare County Resource Management Agency Department Public of Works

P1594-0039

Indirect Cost Rate Proposal Audit of Caltrans Contract NO. 77A0044

Date Issued: 5/17/2019

At the request of the Independent Office of Audits and Investigations, the State Controller’s Office (SCO) completed an audit of the County of Tulare, Department of the Public Works, Resource Management Agency’s (County) Indirect Cost Rate Proposal (ICRP) for fiscal year 2015/16. The purpose of the audit was to determine whether the ICRP was presented in accordance with Title 2 Code of Federal Regulations (CFR) Part 200 and Caltrans Local Assistance Procedures Manual (LAPM) Chapter 5. In addition, the audit was performed to determine whether the County has an adequate financial management system, which includes procurement, in accordance with 2 CFR 200 and LAPM Chapter 10. The complete audit report is attached.

Based on the audit, the SCO determined the ICRP was in compliance with 2 CFR 200, however, the County’s procurement policies and procedures were not in compliance with 2 CFR 200 and Caltrans LAPM Chapter 10. The County failed to retain documentation to support that Consultant Selection Committee member met conflict-of-interest requirements.

Please provide our office with a corrective action plan, including timelines, by July, 18, 2019.