Finding Text
Program Information:
U.S. Department of the Interior
AL Number Award Number Award Period Grant Name
15.029 A21AV00088 10/1/2020-9/30/2023 Judicial Services
U.S. Department of Transportation
AL Number Award Number Award Period Grant Name
20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster
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).
15.029 – Judicial Services
Investment of Advance Funds
Funds advanced, pending expenditure under this contract, shall be placed in appropriate savings, checking, or investment accounts. Such funds, when invested or deposited, shall be subject to the following:
(a) Invested only in obligations of the United States, or in obligations or securities that are guaranteed or insured by the United States, or mutual (or other) funds registered with the Securities and Exchange Commission and which only invest in obligations of the United States or securities that are guaranteed by the United States; or,
Deposited only into accounts that are insured by an agency or instrumentality of the United States or are fully collateralized to ensure protection of the funds, even in the event of a bank failure.
20.205 – Highway Planning and Construction Cluster
Wage Rate Requirements
Compliance Requirements: The Wage Rate Requirements are applicable to construction work on federal-aid highways or on projects using ADHS or FLTTP funds. These requirements apply to federal-aid projects located within the right-of-way of a federal-aid highway. These requirements also apply to federal-aid projects funded by the STBG program that are located outside the right-of-way of a federal-aid highway, including projects funded under the Transportation Alternatives Set-Aside (except for projects funded under the Recreational Trails Program). FHWA has provided guidance on the applicability of these requirements at http://www.fhwa.dot.gov/construction/contracts/080625.cfm (23 USC 113 and 40 U.SC 14701).
Project Approvals
Compliance Requirements: FHWA project approval/authorization to proceed is required before costs are incurred for all phases or projects, except for certain property acquisition costs permitted under 23 USC 108, certain emergency repair work under 23 USC 125, and preliminary engineering under Section 1440 of the FAST Act (23 USC 121 note). Based on the Stewardship and Oversight agreement between the State DOT and the FHWA Division office, projects may be authorized under the authority in 23 USC 106(c), which allows the State DOT to assume responsibilities for designs, plans, specifications, estimates, contract awards, and inspection of progress. When FHWA authorizes a construction project or phase in a project agreement, the State DOT may incur costs; i.e., advertise for bids or use force account work (23 CFR sections 630.205(c), 635.112(a), 635.204, and 635.309).
Condition/Context:
• Management has not implemented an effective internal control system.
• No support was provided to test any special tests or provisions for these programs.
[X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Cause:
Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022.
Effect:
Without an effective internal control system, an entity’s objective: operations, reporting, and compliance cannot be achieved.
Questioned Costs:
Due to lack of sufficient documentation, we were unable to determine questioned costs.
Repeat Finding:
Yes – 2021-007.
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 Joint Programs maintain records 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.