title
Pre-Award Audit - Deputy Director Riske-Gomez
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Requested Action(s)
recommendation
Informational Presentation regarding the Pre-Award Audit of Tehama County Transportation Commission.
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Financial Impact:
None
Background Information:
The Caltrans Internal Audits Office (CIAO), California Department of Transportation (Caltrans), audited the financial management system (FMS) of the Tehama County Transportation Commission (TCTC). The scope of the audit was limited to reviewing and testing of TCTC’s FMS, which includes payroll, accounts payable, procurement, and contract management. Auditors tested the FMS internal controls, and more specifically evaluated the ability of TCTC’s accounting system to determine if it could accumulate and segregate reasonable and allowable costs that can be allocated to projects. The final audit report, which includes TCTC’s response, is attached to this memo.
Based on the audit, CIAO determined TCTC’s accounting system does accumulate and allocate reasonable and allowable project costs, however, auditors found the following deficiencies:
• TCTC’s archiving process for the payroll documentation shall be improved.
• TCTC must follow Caltrans’ per-diem requirements for all Local Assistance contracts and the archiving process of these documents shall be improved.
• TCTC’s must negotiate for profit separately and the archiving process for the documentation of these shall be improved.