Finding Text
Condition From a sample of sixteen federal construction projects examined, we noticed that for three projects, the toll credit usage reported in the Authority?s Toll Credits Report differed from the amounts reported in the Federal-Aid Project Agreements as approved by FHWA. Criteria In accordance with the signed Memorandum of Understanding (MOU) between the Authority and FHWA (signed on February 25, 2016), the Authority shall implement modifications to its processes for approving, tracking, and reconciling toll credits as identified by the FHWA and submit a report (i.e., Toll Credits Report) and a certification to FHWA ascertaining that it has implemented these modifications. FHWA shall accurately identify the amount of toll credits available for use by the Authority and identify the modifications that the Authority must make to its processes for approving, tracking, and reconciling toll credit usage, as applicable. Cause A deficiency in internal control related to the approval, tracking, and reconciling of toll credits usage, probably caused by employee turnover during FY 2022. Effect Non-compliance with the toll credits matching requirement per the MOU requirements. In addition, the Authority could inadvertently use toll credits for a federal project that may lack toll credits balances. Questioned Costs None Recommendation The Authority's management should strengthen its internal control structure over the approval, tracking, and reconciliation process of toll credits usage to ascertain compliance with the MOU requirements. This should include, among other, assigning the reconciliation process to an employee with the technical knowledge to understand toll credits management. Furthermore, we recommend management should strengthen its review and approval process over the toll credits report to timely identify any errors and/or discrepancies.