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March 23, 2022

DOT Does Not Ensure Compliance With All Single Audit Provisions of OMB’s Uniform Guidance

Self-Initiated
Project ID: 
FS2022024
View PDF Document

What We Looked At
The Department of Transportation’s (DOT) Operating Administrations (OA) receive billions to provide financial assistance to States and other entities. The Office of Management and Budget (OMB) requires recipients that expend $750,000 or more to perform single audits. OMB’s Uniform Guidance sets requirements for single audits. Recipients must submit reporting packages, including auditors’ reports, to the Federal Audit Clearinghouse (FAC) and develop plans to resolve findings. Because of the importance of single audits to tax dollar stewardship, we reviewed single audit processes at the Federal Aviation Administration (FAA), Federal Highway Administration (FHWA), and Federal Transit Administration (FTA). Our audit objectives were to evaluate their processes for (1) verifying that single audits are completed and reports submitted to FAC in the timeframe required by the Uniform Guidance, (2) issuing timely management decisions on single audit findings, and (3) following up on findings and recommendations, including high-priority findings and recommendations we identify in quarterly reports.

What We Found
DOT does not ensure that single audit reports are completed and timely submitted to FAC, and does not have a single audit accountable official to ensure OAs fulfill Uniform Guidance requirements. DOT does not ensure the OAs verify that recipients complete single audits and submit timely packages. FAA, FHWA, and FTA’s processes for these activities are not sufficient. This lack of oversight could inhibit DOT’s ability to reduce improper payments. DOT also does not ensure OAs issue timely management decisions and track findings. Untimely management decisions inhibit OAs’ abilities to evaluate findings and recover funds. The OAs follow up on findings that we identify in our quarterly reports rather than all findings. Because it has not designated an SAAO, DOT does not ensure OAs perform required followup. The Uniform Guidance requires agencies ensure that recipients correct all findings. Our reports do not cover all single audit findings. DOT’s lack of oversight could increase the risk of improper payments.

Recommendations
OST concurred with our seven recommendations to help improve single audit process oversight. We consider all recommendations resolved but open pending completion of planned actions.

 

Recommendations

Open

Closed

Closed on 04.28.2022
No. 1 to OST

Designate a single audit accountable official (SAAO) responsible for ensuring that the OAs fulfill all the requirements of the Uniform Guidance and provide the official's name and title to OMB.

No. 2 to OST

Require the SAAO to designate a key management single audit liaison to serve as the Federal awarding agency's management point of contact for the single audit process both within and outside the Federal Government and provide the official's name and title to OMB.

No. 3 to OST

Require the SAAO to develop and implement a policy to ensure Operating Administrations (OA) meet Uniform Guidance's requirements for Federal awarding agencies.

No. 4 to OST

Require the SAAO to develop and implement processes to ensure that OAs confirm its recipients' single audits and reporting packages are completed and timely submitted to the Federal Audit Clearinghouse (FAC).

No. 5 to OST

Require the SAAO to develop and implement processes that ensure OAs download single audit reports from FAC's Image Management System and OAs identify and track single audit findings directly related to their programs.

No. 6 to OST

Require the SAAO to develop and implement processes that ensure OAs issue timely management decisions on all single audit findings affecting their programs.

No. 7 to OST

Require the SAAO to develop and implement processes that ensure OAs follow up on single audit findings and verify that OAs recipients took appropriate and timely corrective actions.