Tehama County, Department of Public Works, Engineering, Operations, Flood, and Surveyor Divisions
P1594-0068, P1594-0069, P1594-0070, P1594-0071
Indirect Cost Rate Proposal Audit
Date Issued: 7/1/2019
At the request of the Independent Office of Audits and Investigations, the California State Controller's Office (SCO) completed an audit of the Tehama County (County) Indirect Cost Rate Proposal (ICRP) for fiscal year (FY) 2013/14 through 2016/17. The purpose of the audit was to determine whether the ICRPs were presented in accordance with Title 2 Code of Federal Regulations (CFR) Parts 200 and 225, and the California Department of Transportation's Local Assistance Procedures Manual, Chapter 5. In Addition, the audit was performed to determine whether the County has adequate accounting controls to properly manage federal and state funded projects, and whether the County's procurement policies and procedures were in compliance with 2 CFR 200 and 49 CFR 18.36. The complete audit report is attached.
Based on the audit, SCO determined the County misclassified administrative labor costs for FY 2013/14, FY 2014/15, and FY 2015/16 for the Engineering, Operations, and Flood Divisions. The audited rates are as follows:
| Division | FY | Proposed Rate | Audited Rate* | Disposition |
|---|---|---|---|---|
| Engineering | 2013/14 | 57.4% | 41.5% | Reconcile prior billings and reimburse overpayment |
| Engineering | 2014/15 | 50.7% | 50.8% | No action required |
| Engineering | 2015/16 | 53.2% | 53.7% | No action required |
| Operations | 2013/14 | 42.1% | 43.7% | No action required |
| Operations | 2014/15 | 49.0% | 52.9% | No action required |
| Operations | 2015/16 | 47.6% | 48.0% | No action required |
| Flood | 2013/14 | 161.2% | 143.5% | Reconcile prior billings and reimburse overpayment |
| Flood | 2014/15 | 114.2% | 132.0% | No action required |
| Flood | 2015/16 | 74.0% | 72.9% | Reconcile prior billings and reimburse overpayment |