Finding Text
Federal Agency: U.S Department of Transportation Federal Program Name: Enhanced Mobility of Seniors and Individuals with Disabilities Assistance Listing Number: 20.513 Federal Award Identification Number and Year: PTD0725-01 (2023); KC001184 (2024); PTD1111 (2025) Pass-Through Agency: Washington State Department of Transportation Pass-Through Number(s): PTD0725-01; KC001184; PTD1111 Award Period: July 1, 2023 through June 30, 2027; June 1, 2024 through May 1, 2029; July 1, 2025 through June 30, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Other Matters – Non-Compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles Compliance Requirements Criteria or specific requirement: Per the OMB UG 200.403(a) requires costs charging to a Federal program "be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles." Condition: Two selected general disbursements were for costs allocated to the program that were not necessary and reasonable to the Federal program, and therefore unallowable costs. Questioned costs: Questioned costs do not exceed the reportable threshold. Context: For the general expenditure, costs associated with general ledger account 76000, employee recognition, were incorrectly included in the allocation pool. Cause: The general expenditure exceptions resulted from the employee recognition expense account being included in the allocation pool. Effect: General expenditures were charged to the program that are unallowable. The organization may be required to correct the amount by reallocation and may need to reimburse the Federal program for unallowable costs. Repeat Finding: No. Recommendation: Management should review and strengthen its controls over the allocation of expenditures to federal programs to ensure costs charged to federal awards are allowable, properly supported, and allocated in accordance with applicable federal requirements. Management should also ensure that only allowable costs are included in the allocation methodology used to distribute indirect or shared expenditures. Views of responsible officials and planned corrective actions: Please see the attached Management’s Corrective Action Plan.