Our Objective(s)
To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between October 1, 2025, and December 31, 2025, and identify findings that affect directly awarded Department of Transportation (DOT) programs. Why This Audit OIG performs oversight of independent, non-Federal auditors' single audit reports. Over the past 3 fiscal years, on average over 200 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 Found
Auditors reported 16 findings related to 6 grantees that included significant noncompliance with Federal guidelines which require prompt action from DOT's Operating Administrations. Of the 16 findings, 6 were repeat findings related to 4 grantees. Auditors identified questioned costs totaling $5,475,471 for 2 grantees. Of this amount, $5,265,085 was related to the Navajo Nation, Window Rock, AZ. We identified nonmonetary repeat findings that caused qualified opinions for three grantees.
Recommendations
We made 2 recommendations to strengthen OST oversight of non-Federal entities and determine the allowability of questioned costs.
