Santa Barbara County Department of Public Works Transportation Division

P1594-0052, P1594-0053, P1594-0054
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) request of the Independent Office of Audits and Investigations, the State Controller’s Office (SCO) completed an audit of the County of Santa Barbara, Department of Public Works, Transportation Division's (County) Indirect Cost Rate Proposal (ICRP) for the fiscal year (FY) 2014/15 through 2016/17. The purpose of the audit was to determine whether the FY 2014/15 ICRP was presented in accordance with the Title 2 Code of Federal Regulations (CFR) Part 225 and Caltrans Local Assistance Procedures Manual (LAPM) Chapter 5; and whether FYs 2015/16 and 2016/17 were 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 in accordance with 49 CFR Part 18.36, 2 CFR 200, and LAPM Chapter 10. The complete audit report is attached. 

Based on the audit, the SCO determined the ICRPs were in compliance 2 CFR 225 and 2 CFR 200. However, the County failed to ensure supervisors followed the County's policies and procedures for approving time sheets in accordance with 2 CFR 200. 

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