Finding 947647 (2023-003)

Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.