Report 2011-120 Recommendation 4 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 #4 To: Transportation, Department of

To ensure that all taxable fringe benefits or gifts employees receive are appropriately included in their gross income, Caltrans should continue to work with its information technology division to generate the reports necessary for it to provide the State Controller's Office (state controller) with the value of the state housing for its employees monthly.

1-Year Agency Response

Based on the legal opinion discussed in the six-month status update, Caltrans determined that there is no tax liability involved and considered this action complete. However, Caltrans had not addressed recommendation 2 (b) which is now being addressed. The Division of Accounting worked with Information Technology (IT) to complete the re-creation of the reports needed to identify rent paid by Caltrans employees for State-provided housing. Caltrans IT staff continues to generate the reports necessary to identify the value of State housing in order to report it as a fringe benefit to the SCO. The Division of Accounting has been submitting fringe benefit reports to the SCO on a monthly basis since October 2012. For a copy of the most recent report, please see Attachment 1.

  • Completion Date: October 2012
  • Response Date: August 2013

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


6-Month Agency Response

Caltrans did not specifically address this recommendation in its 6-month response.

  • Response Date: February 2013

California State Auditor's Assessment of 6-Month Status: No Action Taken


60-Day Agency Response

Caltrans did not specifically address this recommendation. (See 2013-406, p. 168)

  • Response Date: October 2012

California State Auditor's Assessment of 60-Day Status: No Action Taken


All Recommendations in 2011-120

Agency responses received after June 2013 are posted verbatim.


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