Sneak Preview: La. DOTD Urged To Better Monitor Subrecipients

April 26, 2013 | By Jerry Ashworth | Post a Comment

xsass_bookshot(The following was excerpted from an article in the Single Audit Information Service.) The Louisiana Department of Transportation and Development is taking steps to ensure that its staff adequately records pass-through data in the state’s Annual Fiscal Report portal, and communicates award requirements to subrecipients in response to a recommendation by the Louisiana Legislative Auditor.

After auditing certain procedures at the DOTD from July 2011 through June 2012, LLA found that DOTD’s failure to adequately monitor its subrecipients of Highway Planning and Construction cluster awards led to noncompliance with federal regulations and increased the risk of disallowed costs. It concluded that DOTD:

  • understated the reported amount of pass-through funds for the HPC cluster by $1.2 million ($1,183,214 for the HPC program and $46,747 for the Recreational Trails program) on the Capital Outlay AFR that electronically documents federal funds passed through to nonstate subrecipients in the state of Louisiana’s single audit through its Financial Services portal;
  • failed to properly identify and communicate federal award information to subrecipients at the time of the award for six of 18 HPC projects reviewed; and
  • failed to obtain supporting payment documentation from a HPC subrecipient in the Safe Routes to Schools (SRS) program for $83,575 in advance payments.

DOTD personnel must provide the department’s Financial Services section with the required subrecipient information by uploading data into the state’s AFR portal, LLA said. “The decentralization of controls at DOTD and a lack of understanding by district and section staff has led to inconsistent subrecipient identification and reporting to financial services,” it added.


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