(a) To ensure the provision of adequate fiscal and accounting controls, the Panel shall conduct annual performance-based audits of a selected sample of training projects funded by the Panel in any fiscal year. The auditor shall have sole discretion in selecting the sample and the criteria for selection may vary from one fiscal year to another. (1) These audits shall be designed to provide reasonable assurance that the performance objectives of the training contract have been met. The auditor will test records, documents and other evidence that would support the final training cost reimbursement under the contract. At a minimum, the auditor will test for compliance with the following performance objectives: certification of eligibility, enrollment, completed class or lab presentation, training attendance, job placement and retention at the minimum wage specified in the contract.(2) These audits shall be performed in accordance with the generally accepted government auditing standards that apply to professional judgment of auditors and performance audits set forth in the Government Auditing Standards, 2003 Revision (GAGAS). This publication is issued by the General Accounting Office, and may be viewed free of charge at www.gao.gov and is hereby incorporated by reference.(3) A peer review of Panel audits should be conducted at least every three years by an independent third party, such as the Bureau of State Audits.(b) The auditor may use statistical sampling in selecting the items being audited to extrapolate a probable error rate in a performance-based audit. In particular, statistical sampling and extrapolation will be used when there is good cause to believe that a significant overpayment has occurred, in the professional judgment of the auditor. (1) The auditor may also use non-statistical sampling in a given audit. However, the results of non-statistical sampling will not be extrapolated since the sample results would not necessarily be representative of the audit population.(2) The auditor will determine the statistical sampling methodology and the statistically valid sample size based on professional judgment. The methodology may vary between fiscal years and audits.(c) When a probable overpayment is determined by statistical sampling and extrapolation, the final audit report shall include the following: (1) The statistical sampling methodology;(3) The population from which the sample was drawn;(4) The calculations used to extrapolate the overpayment; and,(5) The confidence level used to set the precision of the extrapolation.(d) When a probable overpayment is determined by statistical sampling and extrapolation, the contractor shall be provided an opportunity to refute the audit findings. Any decision to modify the probable overpayment or not shall be made at the sole discretion of the Panel, based on the professional judgment of the auditor.(e) The Panel may conduct desk audits of selected training projects for a given fiscal year. Its criteria for selection may vary from one fiscal year to another. These audits are not required to be performed in accordance with GAGAS due to the limited scope of the audit work.Cal. Code Regs. Tit. 22, § 4448
1. New section filed 4-12-91; operative 4-12-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 18).
2. Amendment of section and NOTE filed 1-20-2006; operative 2-19-2006 (Register 2006, No. 3). Note: Authority cited: Section 10205(m), Unemployment Insurance Code. Reference: Section 10205(g), Unemployment Insurance Code.
1. New section filed 4-12-91; operative 4-12-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 18).
2. Amendment of section and Note filed 1-20-2006; operative 2-19-2006 (Register 2006, No. 3).