Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.
Finding 2024-003
Federal Agency: Department of Transportation
Federal Program: Highway Planning and Construction
ALN: 20.205
Compliance Requirement: Allowable Costs, Matching and Reporting
Type of Finding: Significant Deficiency
Repeat Finding: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During test of the control of Highway Planning and Construction matching compliance requirement, it was noted that no proper segregation of duties of preparation of the reimbursement requests and review of the reimbursement requests that were prepared prior to being submitted to NCDOT.
Context:
The reimbursement request that was to be submitted for the Highway Planning and Construction program was prepared by a staff; however, it was not properly reviewed by a secondary party, for accuracy prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not review the report prepared by staff prior to submission as there was not a specific procedure in place.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend that the Town implement a review process over the reimbursement request prior to the submission to NCDOT where staff prepares and a manager reviews the request. Evidence of performance and review of these requests should be maintained.
Views of Responsible Officials:
Management agrees with the finding.