Revision to Independent Office of Audits and Investigations (IOAI) Financial Document Review (FDR) Process
In an effort to streamline IOAI’s FDR process, several changes to the FDR process are being implemented, effective immediately:
• IOAI is raising the threshold amount that will require a FDR submittal for A&E consultant contracts from $150,000 to $1,000,000.
• Submittal of the Exhibit 10-H: Cost Proposal is no longer required as it is not a part of the FDR procedures. For reference, sample cost proposals 1-4 are posted at the A&E resource webpage (Consultant Selection and Procurement | Caltrans)
• IOAI is assuming ownership of LAPM Exhibits 10-A: A&E Consultant Financial Document Review Request, and 10-K: Consultant Annual Certification of Indirect Costs and Financial Management System. These forms are now hosted on the IOAI website (Instructions for Requesting A&E Consultant Indirect Cost Rate (ICR) Financial Document Reviews (FDR) | IOAI (ca.gov)) and titled “Financial Document Review Request” and “Certification of Indirect Costs and Financial Management System”, respectively
• Accordingly, LAPM Exhibits 10-A, 10-K, and 10-H are retired from LAPM Chapter 10
Additionally, when Paycheck Protection Program (PPP) loan proceeds are applied to a firm’s costs (direct or indirect) within the scope of a federally funded contract and the PPP loan is forgiven, appropriate adjustments must be made to consultant accounting records and ICR calculations. The Division of Local Assistance (DLA) is adopting Caltrans Division of Procurement and Contracts’ (DPAC) guidance for PPP loan forgiveness, except the required Paycheck Protection Program Certification Form is replaced by IOAI’s Paycheck Protection Program Questionnaire. The questionnaire form is also found at the IOAI website.
For further information and details, refer to DLA Office Bulletin #22-06 (pdf version below) and the IOAI website.
If any questions, contact Caltrans DLA: Bing Luu, Bing.Luu@dot.ca.gov or Tanzeeba Kishwar, Tanzeeba.Kishwar@dot.ca.gov.
