Finding 623358 (2022-004)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: Recent audits revealed that the required review of Single Audit reports for three subrecipients was not conducted by program staff.
  • Impacted Requirements: This oversight violates 2 CFR Section 200.332(d), which mandates monitoring of subrecipients to ensure compliance with federal regulations and timely resolution of audit findings.
  • Recommended Follow-Up: Assign specific personnel to review Single Audit Reports and provide training on federal compliance to all staff involved in federal fund administration.

Finding Text

Condition During our audit, we examined a non-statistical sample of six subawards and found that the most recent Single Audit reports for the three subrecipients required to obtain Single Audits were not reviewed by program personnel. Criteria Per 2 CFR Section 200.332(d), a pass-through entity is required to monitor the activities of the subrecipient as necessary to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Monitoring must include a review of financial performance reports, following up with the subrecipient to ensure timely and appropriate action on all deficiencies, issuing management decision for applicable audit findings, resolving audit findings, and verifying that each subrecipient is audited as required by 2 CFR 200, Subpart F. Effect Failure to review the subrecipients? Single Audit reports may result in failure by the subrecipient to take timely and appropriate action to resolve deficiencies detected through the audit. Cause and View of Responsible Officials The Highway Safety Division did not have the capacity to perform the review of applicable subrecipients? Single Audit reports due to significant personnel changes throughout the year. Program personnel plan to assign the review of the Single Audit Reports to specific personnel so that the necessary procedures are performed in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the compliance requirement as the Single Audit Reports become available for review through the Federal Audit Clearinghouse.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 46913 2022-003
    Significant Deficiency
  • 46914 2022-004
    Significant Deficiency
  • 46915 2022-003
    Significant Deficiency
  • 46916 2022-004
    Significant Deficiency
  • 623355 2022-003
    Significant Deficiency
  • 623356 2022-004
    Significant Deficiency
  • 623357 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $254.73M
20.600 State and Community Highway Safety $1.84M
20.616 National Priority Safety Programs $1.62M
20.607 Alcohol Open Container Requirements $1.19M
20.218 National Motor Carrier Safety $693,692
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $616,464
20.214 Fata Accident Reporting System Grant $58,042