Office of the Legislative Auditor - Financial Audit Division

Report Summary

Management Letter

Department of Transportation

Fiscal Year Ended June 30, 1999

Key Findings and Recommendations:

• The Department of Transportation did not enter the correct date for its state aid payments in the state's accounting system. We recommended that the department enter the date that the district engineer approves the local government's request for aid. (Finding 1, page 3)
• The department did not comply with certain federal requirements for the Highway Planning and Construction Program (CFDA 20.205). The department did not comply with selected regulations related to allowable costs, materials testing, and supplemental agreements. We recommended that the department resolve these issues. (Finding 2, page 3)

Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally-funded programs. The scope of work in individual agencies is limited. During the fiscal year 1999 audit, our work at the Department of Transportation focused on selected components of the state's financial statements, including state highway construction expenditures and grants to local governments for road construction and maintenance. The audit included three federal programs administered by the department. The department's response to our recommendations is included in the report.