Finding 1088864 (2024-001)

2024 - 001 - INTERNAL CONTROLS OVER CASH DISBURSEMENTS FOR ALLOWABLE COSTS Federal Transit Administration Formula Grants Assistance Listing No. 20.507 CARES ACT U.S. Department of Transportation Criteria In testing the internal controls for MTA’s major program, it was noted that there was one expenditure out of 40 expenditures tested made payable to a vendor that was allowable under the CARES ACT grant; however, per review of the check copy, the check only contained one signature. MTA’s internal control policies surrounding cash disbursements require two authorized signatures on any cash disbursements greater than $10,000. Condition and Context MTA paid a vendor an amount greater than $10,000 that did not include two authorized signatures on the check. Questioned Cost The amount paid to the vendor was $199,321. Cause MTA paid a vendor with a check that was only signed by one authorized signor instead of two authorized signers as required by their internal control policies related to cash disbursements. Effect MTA was not in compliance with their internal control policies relating to cash disbursements for amounts expended greater than $10,000. Recommendation We recommend that MTA consistently adhere to their internal control policies related to cash disbursements. We recommend that MTA ensure that there are two authorized signatures for all cash disbursements greater than $10,000. Views of Responsible Officials and Planned Corrective Actions See management’s corrective action plan.