Finding 1176372 (2024-006)

2024 – 006 Uniform Guidance Audit Reporting Requirements Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2024 Compliance Requirements Affected: Property and Equipment Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Equipment acquired under federal awards needs to have proper maintenance of records including description, source of funding, who holds title, acquisition date, cost, percentage of Federal agency participation in the cost, location, use and condition, and any disposition data. Condition: There is no policy or procedure in place for proper maintenance of records. Questioned Costs: None Context: The Transit Board does not have a policy or procedure in place. Cause: Employee turnover in the Transit Director position. Effect: They are not in compliance with the Uniform Guidance audit requirements. Repeat Finding: No Recommendation: We recommend the Transit Board puts policies and procedures in place around proper maintenance of records for equipment acquired under federal awards. Views of responsible officials: There is no disagreement with the audit finding.