Finding Text
2023-002 – Activities Allowed and Allowable Costs Federal Program Information: Department of Transportation - ALN: - 20.500, 20.507, 20.525 & 20.526 – Federal Transit Cluster 20.509 - Formula Grants for Rural Areas and Tribal Transit Program Criteria: The following CFR(s) apply to this finding: 2 CFR 200.303 Condition: During audit procedures, it was identified that the Committee does not have consistently applied internal controls over program expenditures. Cause: The Committee does not have the necessary internal controls over compliance. Effect: Insufficient controls could result in unallowable expenses being charged to the program and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: There were 38 cash disbursements tested. It was found that 12 of the disbursements tested did not have backup documentation supporting the journal entry that was made. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: The auditor recommends that the Committee implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Biddeford-Saco-Old Orchard Beach Transit Committee.