Finding 614782 (2022-001)

Finding 2022-001: Reporting ? Significant Deficiency in Controls over Compliance and Noncompliance Federal/State Program: Highway Planning & Construction ? Courtesy Patrol Program ALN 20.205 FAIN: 693JJ22130000Z230TX2022073 Year(s): 2022 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Texas Department of Transportation (Award 02-0XXF5001) Criteria The grant agreements stipulate that the monthly financial expense reports are to be submitted within 90 days after month end to the grantor. Condition and Perspective The grant accounting team responsible for the program experienced turnover of key personnel, which led to 5 out of the 12 monthly reports to be submitted late. Cause The turnover in the grant management personnel caused delays in the report submissions. Effect Failure to meet submission deadlines of reports could potentially constitute an event of noncompliance with the award contract, which may result in the early termination of the grant award, non-reimbursement of grant funding, or cessation of future funding. Questioned Cost None. Recommendations Management should ensure that they have a mechanism for tracking the reporting requirements and due dates so that the monthly financial expense reports are submitted timely to the grantor.