Butte County Department of Public Works Engineering Division - Indirect Cost Rate Proposal Audit Of Caltrans Contract No. 77A0044

P1594-0057, P1594-0058, P1594-0059, P1594-0060, P1594-0061, P1594-0065
Caltrans Contract No. 77A0044
Date Issued: 2/6/2019

At the request of the Independent Office of Audits and Investigations, the State Controller's Office (SCO) performed an audit of the County of Butte, Department of Public Works, Engineering Division's (County) Indirect Cost Rate Proposal (ICRP) for fiscal years (FY) 2010/11 through 2015/16. The purpose of the audit was to determine whether the ICRPs were presented in accordance with Title 2 Code of Federal Regulations Part 200 and Caltrans Local Assistance Procedures Manual Chapter 5.

Based on the audit, the SCO determined there were unallowable equipment charges in the FY 2014/15 indirect cost rate. The FY 2014/15 audited rate is as follows:

Applicable To:
Engineering Division

Fiscal Year:
2014/15

Proposed Rate:
63.83%

Audited Rate:*
62.36%

*Base: Direct Salaries and Wages Plus Fringe Benefits

The County must reconcile their FY 2014/15 billings using the audited rate of 62.36 percent and reimburse Caltrans for any over payments. Please provide our office with a corrective action plan, including time lines, by April 5, 2019.