Finding 2648 (2022-002)

2022-002 Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 6722086; 2022 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: the authorization to proceed from Minnesota Department of Transportation was not obtained before project costs were incurred. Criteria or Specific Requirement: Under 23 CFR sections 630.205(c), 635.112(a), 635.204, and 635.309, Federal Highway Administration (FHWA) project approval is required prior to project costs being incurred. Questioned Costs: None. Context: For one of one contract tested, the authorization to proceed from Minnesota Department of Transportation was not obtained before project costs were incurred. Cause: The county does not obtain Highway Planning and Construction federal funding on a consistent basis and was not aware of the grant requirement. Effect: The County is not in compliance with 23 CFR sections 630.205(c), 635.112(a), 635.204, and 635.309. Repeat Finding: No. Recommendation: We recommend procedures and controls be implemented to ensure authorization to proceeds is obtained prior to project costs being incurred for any FHWA project. Views of responsible officials: There is no disagreement with the audit finding. There is a corrective action plan in place.