California Code of Regulations › Title 14 - Natural Resources › Division 4 - Division of Boating and Waterways › Chapter 1 - Division of Boating and Waterways › Article 4.5.1 - Boating Safety and Enforcement Financial Aid Program › Section 6593.10 - Audits and Appeals

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  The department shall maintain adequate controls to ensure responsibility and
				  accountability for the expenditure of State funds. The department may conduct
				  periodic systematic audits of a participating agency in order to determine
				  whether an agency is in compliance with State law and the claims submitted by a
				  participating agency accurately represent the amount due the agency under the
				  Boating Safety and Enforcement Financial Aid Program.
(b) The department shall notify a
				  participating agency in writing at least one week in advance of all scheduled
				  audits.
(c) A participating agency
				  shall make records available for review to the department or its
				  representatives. A participating agency shall maintain records deemed necessary
				  by the department for a minimum of five years and shall include, at a minimum,
				  supporting documentation for any claims for reimbursement by the participating
				  agency. Such records shall include actual hours spent on the program (including
				  the name and classification of each employee and the specific boating safety
				  and enforcement activity for which the hours relate), documents supporting the
				  actual salaries used to determine personnel costs, documents supporting the
				  participating agency's customary fringe benefits percentage, receipts for
				  associated operations, maintenance, and equipment costs, equipment maintenance
				  and repair reports, current equipment inventory report, documentation
				  supporting actual vessel taxes received by the county, and other applicable
				  documentation as requested by the Department.
(d) The audit shall include an evaluation of
				  the accounting and control systems of the participating agency.
(e) If the department conducts an audit of a
				  participating agency, the department shall issue an audit report to the
				  participating agency. The audit report shall include a description of how the
				  audit was performed and a summary of audit exceptions and management
				  improvement recommendations. If applicable, a correction plan shall be
				  discussed with the participating agency describing the specific actions that
				  are recommended to be taken, or that have been taken, to correct the
				  deficiencies identified by the department. Future State financial aid payments
				  may be withheld from the participating agency until the deficiencies have been
				  corrected.
(f) When an audit
				  indicates that a participating agency has claimed and received payments from
				  the department under this program to which it is not entitled, the
				  participating agency shall pay, in addition to that portion of the claim that
				  was improperly claimed, interest on the amount of overpayment from the date in
				  which the amount was improperly claimed to the next claim. The overpayment,
				  plus interest, may be repaid through a reduction to the next claim for State
				  financial aid. The interest rate shall equal the monthly average rate received
				  on investments in the State Surplus Money Investment Fund.
(g) When it is established that a
				  participating agency fraudulently claimed and received payments under this
				  program, the participating agency shall pay, in addition to that portion of the
				  claim that was improperly claimed, a penalty of 300 percent of the amount
				  improperly claimed. Payments due from a participating agency may be recovered
				  through an offset to the next claim(s) for State financial aid.
(h) A participating agency has the right to
				  appeal the findings of any audit to the director of the department in writing
				  within 90 days after completion of the audit report. The participating agency
				  shall include in the written appeal a description of the items in question and
				  the participating agency's reason for the appeal. The appeal process shall
				  commence with a conference between a representative of the department and the
				  participating agency to review the items in question. If the appeal is not
				  resolved to the participating agency's satisfaction, the participating agency
				  may request that the matter be reviewed through a formal hearing conducted in
				  accordance with Government Code Section
				  11500 et
				  seq.
1. New
					 section filed 1-28-2003; operative 1-28-2003 pursuant to Government Code
					 section
					 11343.4
					 (Register 2003, No. 5).
Note: Authority cited: Section
						663.7
						(k), Harbors and Navigation Code. Reference:
						Sections
						650
						and
						663.7,
						Harbors and Navigation Code.