Finding Text
Finding Number: 2022-009 Prior Year Finding Number: 2021-011 Compliance Requirement: Reporting Program: U.S. Department of Transportation National Infrastructure Investments ALN: 20.933 Award #: DTMA91G1600010 Award Year: 02/01/2017 - 09/30/2024 Criteria – Each non-Federal entity must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 5 (2 financial and 3 special reports) out of the 9 (4 financial and 5 special) reports required to be submitted during the fiscal year and noted the following: • 1 special report was not submitted. • 2 special reports did not contain evidence of approval prior to submission. • 1 special report was not submitted in a timely manner (33 days late). Cause – It appears that policies and procedures, including review over reporting procedures, were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – We tested a sample of 5 reports and found 4 exceptions as noted in the condition. This is a condition identified per review of the Authority’s compliance with the specified requirements not using a statistically valid sample. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan, which is attached as Appendix B.