Federal Reports

What We Looked AtWe queried and downloaded 91 single audit reports prepared by non-Federal auditors and submitted to the Federal Audit Clearinghouse between July 1, 2023, and September 30, 2023, to identify significant findings related to programs directly funded by the Department of Transportation (DOT). What We FoundWe found that reports contained a range of findings that impacted DOT programs. The auditors reported 43 incidents of significant noncompliance with Federal guidelines related to 19 grantees that require prompt action from DOT’s Operating Administrations (OA). Of these 43 findings, 13 were repeat findings related to 10 grantees. The auditors also identified questioned costs totaling $6,464,590 for five grantees. Of this amount, $5,141,550 was related to the State of Oklahoma, and $989,435 to Ottawa County, Oklahoma. Additionally, we identified nonmonetary repeat findings that caused qualified opinions for Cherokee County, Georgia; the Jackson Municipal Airport Authority, Jackson, MS; the City of Santa Fe, New Mexico; the County of San Joaquin, California; the North Coast Railroad Authority, Ukiah, CA; Ottawa County, Oklahoma; Alamosa County, Colorado; Lower Brule Sioux Tribe, Lower Brule, SD; and the Commonwealth Ports Authority, Saipan, MP. RecommendationsWe recommend that DOT coordinate with the impacted OAs to develop a corrective action plan to resolve and close the findings identified in this report. We also recommend that DOT determine the allowability of the questioned transactions and recover $6,464,590, if applicable.

The OIG identified the Top Management and Performance Challenges (TMPC) facing the Commission in FY 2024 as: 1) Implementation of the Strategic Plan: a) Implementation of new Cooperative Agreements with CNAs to Modernize and Enhance Program Compliance; b) Successful Implementation of the Section 898 Panel Recommendations; c) Use of an Enterprise-wide Risk Management (ERM) Framework. 2) Breakdowns in Internal Control over Financial Management and Reporting. Appendix A – Watch Item 1: List of Unimplemented OIG Audit Recommendations Watch Item 2: Program Growth and Resulting Risk Appendix B –898 Panel Recommendations for Commission action. OIG provided a draft of this report to Commission management, whose comments on the Commission’s progress in each challenge area have been considered and/or incorporated into this final version.