Audit 370216

2024-002 Transit Grants CFDA Title: Federal Transit Formula Grants CFDA Number:20.507 Federal Award Number: 113057, 113061,113052,113093 Federal Agency: Department of Transportation Pass-through Entity: Montana Department of Transportation, Condition: Program expenditures were not separately identified in the general ledger by grant. Questioned Costs: None. Context: The cost principles in 2 CFR part 200, subpart E (cost principles), prescribe the cost accounting requirements associated with the administration of federal awards. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Effect: Non-compliance with federal cost principles Cause: The county does not have internal control policies and procedures in place that allows it to comply with cost principles outlined in the Uniform Guidance. Recommendation: Program revenues and expenditures should be separately identified in the general ledger.