April 2014 technology program

The Single Audit Compliance Unit of the External Audit Branch reviews all single audits, financial audits, and management letters of all “grantees”. We are looking at both the presentation (information as to program, pass-through and state funding, NCDOT identification numbers) and the dollar amounts presented versus our records. Any reports not received will be requested.

Grants must be properly identified by program name (“Technology Program”), DOT number (“DOT-10”), and WBS number on the Schedule of Expenditures of Federal and state Awards. This information is available from the agreement with NCDOT; program name and WBS element is on the upper right hand corner of the first page. On NCDOT’s confirmation from the Grant Master List (GML), these moneys are shown as DOT number “DOT-10”.

I. PROGRAM OBJECTIVES

The North Carolina General Assembly has a long history of approving state funds to support the implementation of technologies by local public transportation systems. Beginning in 1998, the appropriation was $1.5 million for technology assistance, including $1 million for urban areas and $500,000 for rural areas was appropriated in 2008. The state technology program provides funds to local transportation systems to purchase or upgrade existing computer equipment, file servers, software, printers, telephone systems, mobile data terminals, automatic vehicle locators and other technologies that will enable systems to improve customer service and operate more efficiently. The Community Transportation program covers technology expenses under a different funding source than Urban Advanced Technology. Community Transportation expenses consists of printers, laptops, computers, scanners, and central processing units (servers). These expenses are covered under an 80%, 10%, 10% allocation.

Local recipients are lead transportation agencies including local governments, transportation authorities, private nonprofit organizations, regional, small urban, urban, and consolidated systems for Urban Advanced Technology. Categories of eligible technologies are based on factors including, but not limited to, the transportation system’s size (number of vehicles operated), organizational structure, type(s) of service provided and number of passenger trips provided annually.

1. ACTIVITIES ALLOWED OR UNALLOWED

1. Ascertain that services and expenditures conform to the project budget.

2. Test expenditures and related records for compliance with the project budget.

3. Determine whether state awards were expended.

3. CASH MANAGEMENT

Compliance Requirement - The subrecipient can incur costs and request reimbursement from the department or request payment of the costs in advance upon receipt of a vendor invoice. If the subrecipient receives payment of state funds in advance of incurring the cost, the funds must be paid to the vendor within three (3) days of receipt from the department.

Audit Objective – Determine if advanced funds were disbursed within three (3) days.

Suggested Audit Procedure - Ascertain that funds received in advance of incurring the cost were disbursed within three (3) days of receipt from NCDOT.

7. MATCHING, LEVEL OF EFFORT, EARMARKING

Matching

Compliance Requirement - There is a ten percent (10%) local match requirement for this program. Any costs in excess of the approved project budget are the responsibility of the grantee.

Audit Objective – Determine if expenses are allowable and applied correctly.

Suggested Audit Procedure

1. Compare the total reported project cost with the expenditure category to determine the allowability and unacceptability of claimed expenses.

2. Determine whether expenditures are supported by the project budget and were applied correctly.

3. Determine whether system requested eligible state share.

12. REPORTING

1. Financial Reporting

1. Examine the approved project budget and any revisions and amendments approved by NCDOT.

2. Trace amounts reflected in requests for reimbursement or advance payment to underlying accounting records.

3. Ascertain total project costs, including those eligible for NCDOT participation

4. Verify that the equipment purchased is on the agency’s fixed asset inventory.

2. Non-governmentals – Reports made by non-State entities

These regulations along with reporting forms may be accessed at:

https://www.ncgrants.gov/NCGrants/Regulations.jsp

https://www.ncgrants.gov/NCGrants/PublicReportsRegulations.jsp

1. Determine if the organization is subject to G.S. 143C-6-23.

2. Determine what type of filing/report should be made with the NCDOT.

3. MBE/WBE/HUB Reports

1. Review grantee’s MBE/WBE/HUB contract expenditures as defined in the grant agreement and the NCDOT Public Transportation Division Disadvantaged Business Enterprise External Procedures.

2. Review the reports and trace the information to underlying data to determine completeness and accuracy.

3. Determine that for all participation amounts reported, the firms have been certified and that the certification is current. Participation by noncertified firms is not allowed.