Finding Text
Finding Number: 2020-010
Prior Year Finding Number: N/A
Compliance Requirement: Reporting
Program:
U.S. Department of Transportation
National Infrastructure Investments
CFDA: 20.933
Award #: DTMA91G1600010
Award Year: 02/01/2017 - 03/31/2022
Criteria – Each State or Territory 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 4 out of the 9 special reports required to be submitted during the fiscal year and noted the following:
• 2 reports were submitted to the Federal Agency; however, they did not contain evidence of review, approval, and submission.
• 2 reports were not submitted to the Federal Agency.
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 – This is a condition identified per review of the Authority’s compliance with the specified requirements.
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.