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.
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.
Caltrans did not specifically address this recommendation in its 6-month response.
Caltrans did not specifically address this recommendation. (See 2013-406, p. 168)
Agency responses received after June 2013 are posted verbatim.