Finding Text
Program Information:
U.S. Department of Transportation
AL Number Award Number Award Period Grant Name
20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs
Criteria:
Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Controls should be in place to ensure that limitations on cash management in federal regulations are adhered to, including ensuring that drawdowns of federal funding are supported by proper documentation and are approved by an appropriate level of management and that Joint Programs maintain a written policy over the payment requests and drawdown of funds.
Condition/Context:
No support was provided for 2 of 2 samples.
[X ] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Cause:
Due to turnover in key personnel and lack of internal controls, controls over cash management were not operating effectively, particularly in ensuring that proper supporting documentation is maintained for drawdowns.
Effect:
Without an effective internal control system, an entity’s objectives in operations, reporting, and compliance cannot be achieved. Additionally, drawdowns and payment requests may have been made without proper supporting documentation.
Questioned Costs:
Due to lack of sufficient documentation, we were unable to determine questioned costs.
Repeat Finding:
Yes – 2021-002.
Recommendation:
We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend all records be maintained and filed in a way that allows them to be located and reviewed at any point in time.
View of Responsible Officials and Planned Corrective Action:
Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.