Finding Text
Federal Agency: Department of Transportation
Federal Program: Formula Grants for Rural Areas and Tribal Transit Program
Assistance Listing Number: 20.509
Pass-Through Agency: Minnesota Department of Transportation
Pass-Through Number: MN-2019-018-01
Federal Award Identification Number and Year: MN-2019-018-01, 2022
Compliance Requirements Affected: Procurement
Award Period: 1/1/22-12/31/22
Type of Finding: Significant Deficiency in Internal Controls over Compliance
Criteria or Specific Requirements: Title 2 U.S. Code of Federal Regulations § 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: The Transit Board purchased fuel from a vendor based off of an extended contract.
Questioned Costs: None.
Context: During testing over fuel procurement, it was noted that the Transit Board had last gone out for competitive bids on fuel in 2020.
Cause: Lack of management oversight.
Effect: The Transit Board could be paying for fuel at a higher price.
Repeat Finding: No
Recommendation: CLA recommends that the Transit Board conduct a more frequent competitive bidding process for fuel procurement.
Views of Responsible Officials: There is no disagreement with the audit finding.