Our Objective(s)
To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between January 1, 2026, and March 31, 2026, 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 26 findings related to 17 grantees that included significant noncompliance with Federal guidelines requiring prompt action from DOT's Operating Administrations.
- Of the 26 findings, 8 were repeat findings related to 6 grantees.
Auditors identified questioned costs totaling $2,703,783 for five grantees.
- Of this amount, $1,148,672 was related to the Northern Arizona Intergovernmental Public Transportation Authority, Flagstaff, AZ, and $971,676 was related to the Confederated Tribes of the Colville Reservation, Nespelem, WA.
We identified nonmonetary repeat findings that caused qualified opinions for four grantees.
Recommendations
We made 3 recommendations to strengthen OST oversight of non-Federal entities and determine the allowability of questioned costs.
