Finding 1140951 (2024-001)

2024-001 Grantor: Department of Commerce Federal Program Name: Highway Planning and Construction (FHWA) Pass-through Entity: State Department of Transportation CFDA: 20.205 Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria or specific requirement: The COG is required to submit quarterly reports for this program to receive reimbursement for expenditures. Condition: The 3rd and 4rth quarterly reports were filed well beyond the normal submission timeline. Submissions were re-submitted to correct errors which resulted in the funds being received several months after the year end. Effect: Significant delays in reimbursements can lead to the funds being unavailable to be recorded as the current year’s revenue in the General Fund. Any grant revenue can potentially be deferred if funds remain unavailable beyond the normal operation cycle. Cause: full staff turnover in the prior year. Repeat Finding: Yes Recommendations: We recommend that the client implements controls to ensure that errors that result in amended reimbursement submissions can be avoided or detected & correct in a timely manner to reduce any delays.