Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Transportation
Federal Compliance Audit

 

Financial Audit Division Report 11-11

Released April 22, 2011

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Conclusion

The Department of Transportation generally complied with and had controls to ensure compliance with provisions of laws, regulations, contracts, and grants applicable to the major federal programs we audited for fiscal year 2010. However, the department had a weakness in reporting expenditures on the Schedule of Expenditures of Federal Awards included in this report and other program findings included in a separate report issued by the Department of Transportation’s Office of Audit.

Finding

• The Department of Transportation overstated Highway Planning and Construction Program (CFDA 20.205) expenditures by $18.9 million and understated Highway Research and Program Development Program (CFDA 20.200) expenditures by the same amount on the Schedule of Expenditures of Federal Awards submitted for audit.

Other Program Findings

The Department of Transportation’s Office of Audit separately reported other federal program findings and questioned costs in Report 11-800-51, dated March 2, 2011, and our report should be read in conjunction with their report. Their report included three repeat findings on weaknesses in materials control procedures.

Audit Scope

Our scope included the following programs material to the State of Minnesota’s federal program compliance for fiscal year 2010: Airport Improvement (CFDA 20.106), Highway Planning and Construction Cluster (CFDA 20.205), and Federal Transit Cluster (CFDA 20.500).