Report 2011-123 Recommendation 5 Responses

Report 2011-123: Oil Spill Prevention and Administration Fund: The Department of Fish and Game and the Office of Spill Prevention and Response Need to Improve Their Administration of the Spill Fund (Release Date: August 2012)

Recommendation #5 To: Fish and Wildlife, Department of

To prevent under- or over-recovery of federal funds, Fish and Game should regularly reassess whether using budgeted expenditures or actual expenditures will produce the most accurate results.

Annual Follow-Up Agency Response From September 2014

The U.S. Department of Interior has approved the department's Indirect Cost Rate Proposals (ICRP) for 2013-14 and 2014-15, both of which are based on actual expenditures. The department will continue to assess whether budgeted or actual expenditures will produce the most accurate results in future ICRP submittals. Documentation has been provided to the State Auditor to demonstrate the use of actual expenditures in the approved 2013-14 and 2014-15 ICRPs.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Fish and Wildlife provided copies of the federally approved Indirect Cost Rate Proposals for fiscal years 2013-14 and 2014-15. In addition, Fish and Wildlife provided a document that compared the resulting underrecoveries when using actual vs. budgeted expenditures. The document showed that using actual expenditures resulted in a more accurate number. Fish and Wildlife has stated that it will continue to perform this assessment annually.

Annual Follow-Up Agency Response From November 2013

Please refer to our one-year response.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

This has been completed. The CDFW has submitted its Indirect Cost Rate Proposal (ICRP) for 2013-14 to the U.S. Department of Interior (DOI). Based on direction from the DOI, the federal indirect cost rate contained in this proposal is based on actual expenditures. The department will work closely with DOI on ICRP submittals in future fiscal years to determine whether budgeted or actual expenditures will produce the most accurate results. Once the ICRP is approved DFW will send an approved copy to the California State Auditor.

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

The department's response indicated that although it had completed this recommendation, it would not be able to provide documentation to support the full implementation until a later date. Thus, we assessed the implementation as "pending."

6-Month Agency Response

The department has submitted its Indirect Cost Rate Proposal (ICRP) for 2013-14 to the U.S. Department of Interior (DOI). Based on direction from the DOI, the federal indirect cost rate contained in this proposal is based on actual expenditures. The department will work closely with DOI on ICRP submittals in future fiscal years to determine whether budgeted or actual expenditures will produce the most accurate results.

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

The department's six-month response was submitted three months late. In addition, no documents were provided to support its assertion that the recommendation was fully implemented. The department agreed to provide this documentation as part of its one-year response.

60-Day Agency Response

Fish and Game stated that its accounting services branch (accounting branch) submits its Indirect Cost Rate Proposal annually to the U.S. Department of Interior and that in November 2012, the accounting branch will be preparing the new proposal for fiscal year 2013–14. Fish and Game asserted that it will reassess the method used at that time as well as make adjustments as needed. (See 2013-406, p. 213)

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

All Recommendations in 2011-123

Agency responses received after June 2013 are posted verbatim.