Finding 962090 (2023-003)

Federal Agency: U.S. Department of Transportation Federal Program: Formula Grants for Rural Areas Assistance Listing Number: 20.509 Award Period: 1/1/2023 – 12/31/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Uniform Guidance has specific requirements for allowable costs and cost principles that can be charged to grants. Condition: The Organization did not follow their internal control process for one cash disbursement tested as there was no documentation of approval. Questioned Costs: None Context: We selected 40 cash disbursements with zero deviations expected; however, one of the disbursements tested did not have approval over the transaction. Cause: There was no documentation of approval for one transaction tested. Effect: Unapproved cash disbursements could result in fraudulent transactions or disallowed costs being charged to the grant. Repeat Finding: No Recommendation: We recommend the Organization follow its policy for approval for every cash disbursement transaction. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding.