Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Transportation
Federal Compliance Audit

 

Financial Audit Division Report 12-08

Released March 27, 2012

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Conclusion

The Department of Transportation generally complied with and had controls to ensure compliance with provision of laws, regulations, contracts, and grants applicable to the major federal programs we audited for fiscal year 2011. However, the department had weaknesses in reporting federal program expenditures and the status of prior audit findings, and did not issue written management decisions on subrecipient audit findings. In addition, the department had other program findings included in a separate report issued by the Department of Transportation’s Office of Audit.

Findings

• Prior Finding Not Resolved: The Department of Transportation did not accurately report financial activity on the Schedule of Expenditures of Federal Awards.
• The Department of Transportation did not accurately report the status of prior audit findings in the Summary Schedule of Prior Audit Findings.
• The Department of Transportation did not issue written management decisions on audit findings in subrecipient single audit reports.

Other Program Findings

The Department of Transportation’s Office of Audit separately reported other federal program findings and questioned costs in Report 12-800-53, dated February 16, 2012, and our report should be read in conjunction with their report. Their report included four repeat findings on internal control weaknesses that resulted in noncompliance with materials control and bridge and building removal requirements.

Audit Scope

Our scope included the following programs that were material to the State of Minnesota’s federal program compliance for fiscal year 2011: Airport Improvement (CFDA 20.106) and Highway Planning and Construction Cluster (CFDA 20.205).