Report 2011-120 Recommendation 26 Responses

Report 2011-120: California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties (Release Date: August 2012)

Recommendation #26 To: General Services, Department of

To ensure that it charges its clients appropriately for the work it performs, General Services should ensure that the construction unit's methodologies are sound and that it can properly support them.

1-Year Agency Response

As discussed in response to the previous recommendation, DCU has revised its rate and cost estimating processes for the 2013/14 fiscal year to fully address the State Auditor's concerns. The revised processes were developed in consultation with appropriate DGS budget, accounting and information technology staff. DCU's Policy and Procedures Manual also has been updated to reflect the processes.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

General Services revised its rate-setting process for fiscal year 2013-14 to ensure that the hourly burden rate is accurately and properly calculated based on prior year expenditure data and projected billable hours.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

General Services did not provide the revisions made by its construction unit to the methodology for determining the direct administration fee.

60-Day Agency Response

General Services stated that its construction unit will revise its rate-setting process for fiscal year 2013–14 to fully address the state auditor's concerns. General Services also stated that the revised process will ensure that the construction unit's hourly burden rate and direct administration fees are accurately and properly calculated based on prior year expenditure data and projected billable hours. Further, General Services stated that, to date, the construction unit has consulted with General Services' budget, accounting, and information technology staff on improvements that can be made to its rate and fees calculation function. (See 2013-406, p. 174)

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2011-120

Agency responses received after June 2013 are posted verbatim.