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Sonoma County Department of Transportation and Public Works Roads Division

P1594-0049
Indirect Cost Rate Proposal Audit
Date Issued: 1/9/2019

At the request of the Independent Office of Audits and Investigations, the State Controller's Office (SCO) performed an audit of the Sonoma County, Department of Transportation and Department of Public Works, Roads Divisions' (City) Indirect Cost Rate Proposal (ICRP) for fiscal years (FY) 2014/15 and 2015/16. The purpose of the audit was to determine whether the ICRP was presented in accordance with Title 2 Code of Federal Regulations Part 200, and Caltrans Local Assistance Procedures Manual Chapter 5. The final audit report is attached.

Based on the audit, the SCO determined that the:

  1. County's ICRP was compliant for FY2014/15.
  2. County erroneously calculated labor costs in the indirect cost pool for FY2015/16.

The audited rates are as follows:

Applicable To:
Roads Division 

Fiscal Year:
2014/15

Proposed Rate:
 52.10%

Audited Rate:*
52.10% 

Applicable To:
Roads Division 

Fiscal Year:
2015/16

Proposed Rate:
61.73% 

Audited Rate:*
59.92%  

 *Base: Total Direct Salaries and Wages plus benefits

The County must reconcile their FY 2015/16 billings using the audited rate and reimburse Caltrans for any over payments. Please provide our office with a corrective action plan, including time lines, by March 11, 2019.