Finding 1224077 (2024-009)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-07-20
Audit: 407471
Organization: Town of Vinton, Va (VA)

AI Summary

  • Core Issue: The Town failed to provide quality assurance test results for two highway construction projects, hindering compliance verification.
  • Impacted Requirements: Documentation of quality assurance testing is required by the OMB Compliance Supplement for highway construction projects.
  • Recommended Follow-Up: The Town should establish procedures to ensure testing is done regularly, results are retained, and verification is conducted by independent, qualified personnel.

Finding Text

Highway Planning and Construction – AL # 20.205 Special Tests and Provisions – Quality Assurance (Material Noncompliance) Condition The Town was unable to provide evidence of quality assurance test results for two sampled highway construction projects. As a result, we could not verify that the required number of tests were performed in accordance with program guidelines, and we could not determine whether verification sampling activities were performed by qualified personnel independent of the contractor. Criteria The OMB Compliance Supplement for the Highway Construction program requires that the locality perform and maintain documentation of quality assurance testing for construction projects. Cause The Town does not have adequate procedures in place to ensure that required quality assurance testing is documented and retained, and that such testing is performed and verified by qualified personnel in accordance with program requirements. Effect Failure to perform or retain documentation of quality assurance testing increases the risk that construction activities do not comply with applicable specifications and federal requirements. In addition, the lack of documentation prevents the locality and oversight agencies from verifying compliance. Perspective Information Quality assurance test results were not provided for two of four projects tested. Recommendation We recommend the Town implement procedures to ensure quality assurance testing is performed at the required frequency in accordance with program guidelines, require that all quality assurance test results are retained and establish controls to verify that testing and verification sampling are performed by qualified personnel independent of the contractor. View of Responsible Officials and Planned Corrective Action Management acknowledges the recommendation. Throughout the duration of this multi-year project, staff made repeated efforts to obtain quality assurance testing documentation from the applicable contractors and subcontractors. Despite multiple requests and follow-up attempts, we were not successful in securing the required documentation. We will evaluate and strengthen our procedures going forward to improve contractor compliance and ensure that quality assurance testing records are consistently obtained, reviewed, and retained in accordance with applicable requirements.

Corrective Action Plan

Management acknowledges the findings. Expenditures in the noted departments exceeded budgeted appropriations due to operational needs and project-related costs that were higher than originally anticipated. Throughout the fiscal year, staff monitored spending and adjusted where possible; however, certain expenditures could not be deferred.We will strengthen our budget monitoring procedures and implement earlier and more frequent reviews to ensure that necessary budget amendments are processed in a timely manner. In addition, we will continue working with all departments and external partners to improve documentation timeliness and maintain expenditures within approved appropriations going forward.

Categories

Special Tests & Provisions Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1224058 2024-006
    Material Weakness Repeat
  • 1224059 2024-007
    Material Weakness Repeat
  • 1224060 2024-008
    Material Weakness Repeat
  • 1224061 2024-009
    Material Weakness Repeat
  • 1224062 2024-006
    Material Weakness Repeat
  • 1224063 2024-007
    Material Weakness Repeat
  • 1224064 2024-008
    Material Weakness Repeat
  • 1224065 2024-009
    Material Weakness Repeat
  • 1224066 2024-006
    Material Weakness Repeat
  • 1224067 2024-007
    Material Weakness Repeat
  • 1224068 2024-008
    Material Weakness Repeat
  • 1224069 2024-009
    Material Weakness Repeat
  • 1224070 2024-006
    Material Weakness Repeat
  • 1224071 2024-007
    Material Weakness Repeat
  • 1224072 2024-008
    Material Weakness Repeat
  • 1224073 2024-009
    Material Weakness Repeat
  • 1224074 2024-006
    Material Weakness Repeat
  • 1224075 2024-007
    Material Weakness Repeat
  • 1224076 2024-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $157,842
20.205 HIGHWAY PLANNING AND CONSTRUCTION $105,974
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $53,375
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $21,249
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $11,280
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $2,260