audit of the california coastal commission agreement 43a0295

STATE OF CALIFORNIA-NATURAL RESOURCES AGENCY EDMUND G. BROWN, JR., GOl'J:llNOll

CALIFORNIA COASTAL COMMISSION 45 FREMONT ST., STE. 2000 SAN FRANCISCO, CA 94105-2219 VOICE (415) 904-5200 FAX ( 415) 904-5400

MEMORANDUM July 15, 2015

To: Dale Jones Chief Caltrans HQ/Division of Environmental Analysis/GNEIS Office

From:

Subject: 360-Day Status Report to 7/15/14 Findings and Recommendations

Pl.ease find attached the Coastal Commission's 360-day status report as requested by Caltrans' Audit & Investigations' Audit ofthe California Coastal Commission Agreement 43A0295 P4000~ 0388, dated July 2014.

The final audit report requested that the status of con-ective actions be provided to Caltrans' Division ofEnviromnental Analysis at 60, 180 and 360 days from the date of the final report, which was intended for the Commission's and Caltrans' managemei1t. As we have previously discussed, we appreciate having had this report to help inform our continued interagency collaborations and to help shape the upcoming Interagency Agreement between our agencies.

Ifyou have any questions or need additional information, please feel free to call me at ( 415) 9045200 or Tami Grove, the Coinmission's Statewide Development and Transportation Program Manager, at (831) 278-4863.

Attachment

Cc: Scott Williams, CT HQ DEA. Tami Grove, CCC

Table 1 Caltrans' A & I Audit of CCC Agreement 43A0295 360-Day Progress Report

Table to Address Audit Findings and Recommendations Dated July 15, 2014

,

Audit Report Finding Recommendation 360 Day Status Implementation by California Coastal Commission

#1 a. Direct costs are not identified on a project-by-project basis

Ensure project costs are adequately supported, actual and incurred in acc9rdance with SAM and Agreement provisions, and employee time records identify specific project hours to support billed labor in the Performance Reports

Commission staff continues to meet the terms of the existing agreement. Commission and CT DEA staffs have met during the first half of 2015 to develop the next interagency agreement; all identified project-specific information interests have been reflected in new draft agreement.

#1 b. Indirect and operating costs are not adequately supported

Establish a method of billing indirect and operating costs that are based upon actual agency wide operating expenditures

Historical records of indirect costs were used to develop the budgeted rate of 20%, which has been the approximate actual average rate from FY2009 to present. (Documentation for this can be presented if necessary.) Similarly, operating costs included in the Agreement were based on actual averages of historic operating costs needed to keep the agency operational, with built-in inflation factors. Commission staff has researched the experience of sister agencies that have entered into an Agreement with a Federal Agency in order to use that Federal Agency's negotiated rates as the basis for determining overhead costs in the future. Unless and until the Commission enters into such an agreement, coordination will continue with CT DEA staff in the implementation of agreements to ensure full cost recovery per SAM 8752.

#1 c. Car usage fees are not Implement procedures to ensure The Commission calculated car


billed at actual cost DGS usage fees are billed at actua I costs

usage fees based upon a daily rate per DGS when the agreement was enacted; DGS since changed to a monthly rate. The Commission now uses in its invoices the new method to agree with actual DGS charges.

#2 Invoiced and billed indirect and operating costs are not actual incurred costs; CCC did not adequately support the Agreement estimates and calculations

Implement procedures to ensure billed indirect and operating expenses are supported by actual, historical costs and in accordance with SAM and agreement provisions

Historical records of indirect costs were used to develop budgeted rate of 20%, which has been the approximate actual average rate from FY2009 to present. (Documentation for this can be presented if necessary.) Similarly, operating

costs included in the Agreement were based on actual averages of historic operating costs needed to keep the agency operational, with built-in inflation factors. Commission staff has researched the experience of sister agencies that have entered into an Agreement with a Federal Agency in order to use that Federal Agency's negotiated rates as the basis for determining overhead costs in the future. Unless and until the Commission. enters into such an agreement, coordination will continue with CT DEA staff in the implementation of agreements to epsure full cost recovery per SAM 8752.

---c:-;--:-:--:::-,.,.--,=-=========-~--~ =========== ...

STATE OF CALIFORNIA-NATURAL RESOURCES AGENCY EDMUND G. BROWN, JR., G OVERNOR

CALIFORNIA COASTAL COMMISSION 45 FREMONT ST., ST. 2000 SAN FllANC!SCQ, CA 941 05 2219 VOICE (415) 904-5200 FAX ( 4 15) 904-5400

~ . ' -MEMGR::ANBBM--- ---- January 9, 2014

To: Dale Jones

Chief

Caltrans HQ/Division ofEnvironmental Analysis/GNEIS Office

From:


Please find attached the Coastal Commission's 180-day status report as requested by Caltrans' Audit& Investigations' Audit ofthe California Coastal Commission Agreement 43A.0295 P40000388, dated July 2014 .

. The final audit report requested that the status of corrective actions be provided to Caltrans' Division ofEnvironmental Analysis at 60, 180 and 360 days from the date ofthe final report, which was intended for the Commission' s and Caltrans' management. As we have previously discussed, we look forward to having this report help 4iform our continued interagency collaborations and in shaping subsequent agreements between our agencies.

If you have any questions or need additional information, please feel free to call me at ( 415) 9045200 or Tami Grove, the Commission' s Statewide Development and Transportation Program Manager, at (831) 278-4863.

\ .

Attachment

Cc: Scott Williams, CT HQ DEA

Tami Grove, CCC

- -

I

======-~----- -------- ---_.::_--== ======-----

Table 1 Caltrans' A & I Audit of CCC Agreement 43A0295

180-Day Progress Report

Table t o Address Audit Findings and Recommendations Dated July 15, 2014

Audit Repo)t Finding Recommendation 180 Day Stat us l mplementati~n y . ' by California Coastal

..~ ~ Commission


#1 b. Indirect a_nd operating costs are not adequatelyI

I supported

I I !.

Ensure project costs are adequately supported, actual and incurred in accordance with SAM and Agreement provisions, and employee time records identify specific project hours to support billed labor in the Performance Reports


.

#1 c. Car usage fees are not Implement procedures to ensure billed at actual cost DGS usage fees are billed at _

actual costs

...

Commission staff continues to meet the terms of the existing agreement. Commission and CT DEA staff have set up meetings in 2015 to discuss next interagency agreement; any project-specifit information needs that are not being met under the current arrangement will be addressed. Historical records of in.direct costs were used to develop budgeted rate of 20%, which has been the approximate actual average rate from FY2009 to present. (Documentation for this can be presented if necessary.) Similarly, operating costs included in the Agreement were based on actual averages of historic operating costs needed to keep the agency operationa l, with built-in inflation factors. . Commission staff will be working with CT DEA staff in the implementation of future agreements to ensure full cost recovery per SAM 8752.

The Commission calculated car usage fees based-upon a.daily rate per DGS when the agreement was enacted; DGS since changed to a monthly rate. The Commission now uses in its invoices the new method to agree wi_th actual DGS charges.

Historical records of indi rect#2 Invoiced and billed indirect Implement procedures to ensure billed indirect and operating costs were used to developand operating costs are not

Table 1 Caltrans' A & I Audit of-CCC Agreement 43A0295 180-Day Progress Report

actual incurred costs; CCC cfid expenses are supported by budgeted rate of 20%, which has not adequately support the _ actual, historical costs and in been the approximate actual Agreement estimates arid accordance with SAN! and average rate from FY2009 to calculation's - ' _ agreement provisions present. (Documentation for

..... - - -- this can be presented if necessary.) Similarly, operating costs included in the Agreement were based on actual averages of historic operating costs neededtokeeptheagency operationa l, with built-in inflation factors. Commission staff will be working with CT DEA staff in the implementation of future agreements to ensure full cost recovery per SAM 8752.

STATE OF CALIFORNIA-NATURAL RESOURCES AGENCY EDMUND G. BROWN, JR. , GoVI::nNOR

CALIFORNIA COASTAL COMMISSION 45 FREMONT ST., STE, 2000 SANfllANCJSCO, CA 94105-2219 VOICE (415) 904-5200 FAX ( 41 S) 904-5400

fvtEMORANDUM September 1 5, 2014

To: Dale Jones. Chief Caltrans HQ/Division of Environmental Analysis/GNEIS Office

From: Susan Hansch Chief Deputy Director California Coa5tal Co


Please find attached the Coastal Commission's 60-day status report as requested by Caltrans' Audit & Investigations' Audit ofthe California Coastal Commission Agreement 43A0295 P40000388, dated July 2014.

The final audit report requested that the status of corrective actions be provided to Caltrans' Division of Environmental Analysis at 60, 180 and 360 days from the date of the final report, which was intended for the Commission's and Caltrans' management. As we have previously discussed, we look forward to having this report help inform our continued interagency collaborations and in shaping subsequent agreements between our agencies.

Ifyou have any questions or need additional information, please feel free to call me at ( 415) 9045200 or Tami Grove, the Commission's Statewide Development and Transportation Program Manager, at (831) 278-4863.

Attachment

Cc: Scott Williams, CT HQ DEA Tami Grove; CCC

Table 1 Ca ltra ns' A & I Audit of CCC Agreement 43A0295 60-Day Progress Report

Table to Address Audh Findings and Recommendations Dated July 15, 2014

Audit Report Finding


#1 b. Indirect and operating costs are not adequately supported

#1 c. Car usage fees are not billed at actual cost

#2 Invoiced and billed indirect and operating costs are not

Recommendation

Ensure project costs a re adequately supported, actual and incurred in accordance with SAM and Agreement provisions, and employee time records identify specific project hours to support billed labor in the Performance Reports


Implement procedures to ensure DGS usage fees are billed at actual costs

Implement procedures to ensure billed indirect and operating

60 Day Status Implementation by California Coastal Commission Commission staff will continue t o meet the terms of the existing agreement. Commission and CT DEA staff recently initiated negotiation of the next interagency agreement; any project-specific information needs that are not being met under the cu rrent arrangement w ill be addressed.

Historical records of indi rect costs were used to develop budgeted rate of 20%, which has been the approximate actual average rate from FY2009 to present. (Documentation for this can be presented if necessary.) Similarly, operating costs included in the Agreement were based on actual averages of historic operating costs needed to keep the agency operational, with built-in inflation fact ors. Commission staff intends to work with CT DEA st~ff in the implementation of future agreements to ensure full cost recovery per SAM 8752.

The Commission calcu lated car usage fees based upon a daily rate per DGS when the agreement was enacted; DGS since changed to a monthly rate. The Commission now uses in its invoices the new method to agree with actual DGS cha rges.

Historical reco rds of indirect costs were used to develop


actual incurred costs; CCC did expenses are supported by not adequately support the actual, historical costs and in Agreement estimates and accordance with SAM and

agreement provisions calculations

budgeted rate of 20%, which has been the approximate actual average rate from FY2009 to present. (Documentation for this can be presented if necessary.) Similarly, operating costs included in the Agreement were based on actual averag.es of historic operating costs needed to keep the agency operational, with built-in inflation factors. Commission staff Intends to work with CT DEA staff in the implementation of future agreements to ensure full cost recovery per SAM 8752.

http:averag.es

360DayCoastal CommissionAuditStatusReportP4000-388 CA Coastal Commission 180 SRP4000-388 CA Coastal CommissionP4000_388 CA_COASTAL_60_DAY

audit of the california coastal commission agreement 43a0295

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