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Additionally, Section 21 of Article 2 of the New Audits are conducted in accordance with Gen- York State Transportation Law provides for state erally Accepted Government Auditing Standards single audit coverage of the state transportation (GAGAS) issued by the United States General assistance expended by municipalities and certain Accounting Office (GAO) and with standards pro- public authorities. The law requires that agencies mulgated by the American Institute of Certified that receive $100,000 or more in state transporta- Public Accountants (AICPA) to determine if rea- tion assistance must submit a state single audit of sonable assurances exist that contractors and subre- transportation funds. cipients are compensated for goods and services at The following links are provided to guide au- fair and equitable amounts pursuant to compliance ditors, finance officers, and program personnel in requirements.11 implementation: CAB audits are conducted based on a risk- assessment process. Factors considered in assessing Article 2 Section 21, New York State Trans- risk with relation to a subrecipient include portation Law: From the webpage at http:// public.leginfo.state.ny.us/menuf.cgi click on the presence of material findings in an OMB "Laws of New York," then "TRA" (for trans- Circular A-133 single audit report that could portation), "Article 2," and scroll down to adversely impact transportation-related con- click on "21" for the single audit program. tracts and programs; Guidance for Auditors (pages may be marked contract dollars (for individual contracts and "Draft"): https://www.nysdot.gov/main/ for the entity as a whole); and business-center/audit/repository/guidance.pdf prior audit experience. The 34-page guidance document contains spe- Special requests for audits made by the program area cific detail, such as that one-third of all state transit also are accepted and acted upon as appropriate. operating assistance funds should be tested, as well The following types of audits apply to subrecipi- as general information covering topics that include ents of the Bureau of Public Transportation: audit coverage guidelines and examples; Reviews of federal single-audit reports and matching programs covered under the federal other limited-scope audit procedures to mon- single audit; itor grantee compliance with OMB Circular program-specific compliance coverage; A-133 and other federal-aid requirements guidelines for charging eligible audit costs; Mass transit audits, consisting of reviews of and grantee compliance with provisions of con- reporting. tracts for state projects or for state matching agreements on federal grant projects and state Appendixes to the guidance document contain transit operating assistance audits program-specific compliance testing guidelines. Appendix C contains examples of monitoring letters and audit closeout letters used by the New Procedures for Obtaining and Reviewing York State DOT to inform subrecipients of an audit Subrecipient Financial Audits and document its activities. The Contract Audit Bureau (CAB) of the New York State DOT conducts financial and compliance Role of the Internal Auditor audits of contractors, subrecipients, and other exter- The responsibility for federal single audit moni- nal parties who participate in Department programs. toring resides within the Contract Audit Bureau Audits are performed to assure that contractors and subrecipients are using state and federal funds in 11An Introduction to the New York State Department of Trans- compliance with applicable laws, rules, and regula- portation Contract Audit Bureau. Available at: https://www. tions, and in accordance with the specific contract nysdot.gov/main/business-center/audit/repository/cab.pdf or grant terms. (accessed December 19, 2011). 18