Independent Office of Audits and Investigations
Audits & Investigations (A&I) delivers professional audit and investigative services that assist management in accomplishing departmental goals and objectives, setting priorities, and in making efficient, effective, and financially responsible transportation decisions. A&I is divided into three sections:
Audits and Investigations
External Audits help management achieve its Stewardship goal and fiduciary responsibilities by ensuring external entitles who receive Department funds comply with associated State and federal requirements. Such entities include private-for-profit organizations (engineering and construction firm, etc.) as well as local government and transportation agencies who receive Department funds either through Department contracts (direct funding) or through Department agreement and grants (pass-through funding).
- Internal Audits - Internal Audits is responsible for delivering audit services which assist management in accomplishing departmental priorities and in making efficient, effective, and financially responsible transportation decisions. Internal Audits provides management with feedback on the organization's success in meeting its objectives and accomplishing established priorities along with constructive recommendations to improve performance, achieve compliance with state and federal regulations as well as to follow-up on corrective action taken.
- Investigations - Investigations help management achieve its goals in ensuring that administrative investigations are performed as requested by management and external sources. Feedback is provided to the directorate and external sources, as appropriate, on investigation results and corrective actions taken.
External Audits - A&E Firm Contract
Interpretive Guidance Documents for A&E Consultants that contract with Caltrans
- Prevailing Wage Interpretive Guidance Document (NEW: Issued February 6, 2017)
- Labor Costs
- Uncompensated Over time
Indirect Cost Rate and Timekeeping Webinars
A&I encourages A&E firms to refer to the Washington State Department of Transportation, Audit Office (WA DOT) that provides webinars on how to build Indirect Cost Rate and basic timekeeping on its website. The webinars cover the essential elements of an Indirect Cost Rate and the principles of each phase in developing an Indirect Cost Rate and Schedule. They provide what firms need to know where the Indirect Cost Rate numbers come from, including timekeeping, general ledger, labor distribution report, and Indirect Rate Schedule. The webinars are a great resource for Architectural & Engineering firms and CPAs whether or not they are familiar with the Federal cost principles and AASHTO Audit and Accounting Guide. The link to the WA DOT website is provided below with the permission of the WA DOT:
- WS DOT Webinars <https://wsdot.wa.gov/Audit/ICRTraining.htm/> NEW:
- Caltrans A&E Contracting Process (webinar by DPAC) - MP4
- Caltrans A&E Contract Financial Document Requirements (webinar by A&I) - MP4
- Cognizant Approvals Issued
- Caltrans ICR Acceptance Log
- Conformance Review - Frequent Deficiencies
Financial Documents Submittal Checklists (Updated August 2, 2017)
For contracts advertised as of 8/2/17, the following checklists should be utilized.
ICAP/ICRP Submission Processes
In response to the new federal regulations Title 2 Code of Federal Regulations Part 200, the California Department of Transportation (Caltrans), and in cooperation with the Federal Highway Administration, has revised its processes to provide local government agencies different options for the submittal of an indirect cost allocation plan/indirect cost rate proposal (ICAP/ICRP) for fiscal years beginning ON OR AFTER JULY 1, 2015. Please see the documents below for details on the processes and conditions.
- ICAP/ICRP Submission Processes (PDF)
- Attachment A – ICAP/ICRP Process (PDF)
- Attachment B – Flowchart of Submission & Approval Processes PDF)
- Revised Attachment C – Check List (Word version)
- Revised Attachment D – Certification (Word version)
- Attachment E – Sample Schedules
- Supplementary Guidance
- Local Agency ICAP/ICRP Q&A - February 25, 2015
- De Minimis Rate - Required Certification
For local government agencies with fiscal years beginning PRIOR TO JULY 1, 2015 please see the documents below for details on the processes and conditions.
- Top Five Audit Findings (PDF)
- Cost Principles and Procedures for Developing Cost Allocation Plans and Indirect Cost Rates for Agreements with the Federal Government
- Local Entities Accepted, Approved, Cognizant Approved, and De Minimis Indirect Cost Rates
Overhead may only be charged, whether billed separately or included in billing rates, when indirect cost rates are accepted or approved by Caltrans Audits and Investigations. Rates accepted/approved through June 30, 2017.
A&I's significant contribution to Caltrans management and to the public is its independent monitoring role over public (State, local, and federal) resources. From this effort, State, local, and federal management is apprised of the operational vulnerability and risks that exist and is provided recommendations on how to implement proactive management practices to mitigate the problems. In addition, A&I's identifies millions of dollars of cost savings to the department, local governments, and the public.
Statewide Alerts and Other Information
California Department of Transportation
Division of Audits and Investigations
Mail Station 2
P. O. Box 942874
Sacramento, CA 94274-0001
Phone: (916) 323-7111