Our Objective(s)To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between July 1, 2025 and September 30, 2025, and identify findings that affect directly awarded Department of Transportation (DOT) programs.
Why This AuditOIG performs oversight of independent, non-Federal auditors' single audit reports. Over the past 3 fiscal years, on average over 250 single audit reports were issued that included findings related to programs directly funded by DOT. We issue memoranda that summarize these reports' significant findings and recommendations that require priority action by DOT. When warranted, we also recommend that DOT recover funds inappropriately expended by non-Federal entities.
What We FoundAuditors reported 20 findings related to 15 grantees that included significant noncompliance with Federal guidelines which require prompt action from DOT's Operating Administrations.
Of the 20 findings, 11 were repeat findings related to 6 grantees.
Auditors identified questioned costs totaling $4,203,255 for 8 grantees.
Of this amount, $1,610,569 was related to the Joint Programs of the Shoshone and Arapaho Tribes of the Wind River Reservation, Fort Washakie, WY; $1,200,000 was related to the Saginaw Transit Authority Regional Services, Saginaw, MI; and $575,874 was related to the Puerto Rico Bus Authority, San Juan, PR.
We identified nonmonetary repeat findings that caused a disclaimer of opinion for one entity and qualified opinions for three entities.
RecommendationsWe made 4 recommendations to strengthen OST oversight of non-Federal entities and determine the allowability of questioned costs.
