Report I2019-3 Recommendation 4 Responses

Report I2019-3: Investigations of Improper Activities by State Agencies and Employees: Wasteful and Improper Travel Payments, Improper Promotion and Hiring Practices, and Misuse of State Resources (Release Date: May 2019)

Case Number I2017-0706

Recommendation #4 To: Transportation, Department of

Within 60 days, Caltrans should consult with the State Controller's Office to determine whether the manager's reimbursements should have been reported as taxable fringe benefits and, if so, amend any relevant tax documents.

Agency Response From June 2019

Caltrans reported that it is currently attempting to recover the improper travel reimbursements through an accounts receivable bill and is not issuing a corrected W-2 form at this time.

California State Auditor's Assessment of Status: Resolved

Agency Response From May 2019

Caltrans reported that its accounting division contacted the State Controller's Office for information about reporting travel reimbursements as taxable fringe benefits and determined that fringe benefits can be reported for prior years. Caltrans stated that it will issue a corrected W-2 form if the taxable withholdings create a change for the reporting year.

California State Auditor's Assessment of Status: Pending

All Recommendations in I2019-3