Recurring Findings

Transportation: Recurring Material Internal Control Deficiencies

Federal Program	Issue	First Year Reported
	Department's Assertion	Page Number
Highway Planning and Construction	Subrecipient Monitoring. Caltrans lacks internal controls to ensure subrecipients who spent more than $500,000 during fiscal year 2008-09 submitted audit reports to the federal government as required under the U.S. Office of Management and Budget (OMB) Circular A-133. We identified 24 subrecipients that had no record of an audit submission on the federal audit clearinghouse's website for fiscal year 2008-09. Caltrans also lacks internal controls to impose sanctions on subrecipients that failed to meet OMB Circular A-133 audit requirements. The lack of audit reports by the subrecipients previously described also limits Caltrans’ ability to review and issue management decisions on potential findings and exercise effective oversight of the Highway Planning and Construction program.	2009-10
	Fully corrected. Caltrans has implemented procedures to address this issue. Caltrans monitors the State Controller’s Office website for subrecipients that have not yet submitted Single Audit Reports. Lists of noncompliant subrecipients are compiled and forwarded to the appropriate Caltrans Divisions for follow-up and resolution. Noncompliant subrecipients are required to submit their audits. The respective Caltrans divisions will sanction noncompliant subrecipients, if necessary.	71