Finding 599862 (2022-004)

Finding 2022-004 Special Tests and Provisions Significant Deficiency in Internal Controls over Compliance; Noncompliance Federal Agency ? United States Department of Transportation Federal Program ? CFDA 20.205 ? Highway Planning and Construction Criteria: Based on requirements of the 2 CFR Part 200, Appendix XI Compliance Supplement for Highway Planning and Construction grants, there should be a quality assurance program in place, which monitors compliance with the grant requirements. Condition and context: The Territory does not currently have a quality assurance program in place for the Highway Planning and Construction grant. While there were no deviations noted in our sample, there are no monitoring controls in place to prevent, detect and correct potential misstatements on a timely basis. Cause: The Territory is currently working with the Federal Highway Administration to establish a quality assurance program, however it was not completed and implemented at year end. Effect: Potential noncompliance with grant requirements due to lack of monitoring controls and quality assurance in place. Questioned Costs: None Recommendation: The Territory should continue to work with the Federal Highway Administration to complete a plan for, and implement, a quality assurance program. View of responsible officials and corrective action plan: ASG agrees with this finding. The AS Department of Public Works (DPW) Civil Highway Division awaits the approval of its Implementation and Stewardship agreement from FHWA headquarters. The agreement, which outlines the roles and responsibilities of a quality assurance program, is renewed every two years. This finding will remain open until the agreement has been approved.