Audit Report Summary of DOT Program Findings

DOT OIG Reports

Published March 18th, 2026

Detected March 28th, 2026

Summary

The DOT OIG issued a summary report detailing 16 significant noncompliance findings from single audits impacting DOT programs for the period ending December 31, 2025. The report identified $5,475,471 in questioned costs, primarily related to the Navajo Nation, and highlighted repeat findings causing qualified opinions for three grantees.

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What changed

The Department of Transportation Office of Inspector General (DOT OIG) has released a summary report detailing significant findings from single audits of entities receiving DOT funding for the three-month period ending December 31, 2025. The report highlights 16 findings of noncompliance across 6 grantees, with 6 of these being repeat findings. Notably, auditors identified $5,475,471 in questioned costs, with the majority ($5,265,085) attributed to the Navajo Nation. Additionally, nonmonetary repeat findings led to qualified audit opinions for three grantees.

The DOT OIG recommends that the Office of the Secretary of Transportation (OST) coordinate with impacted Operating Administrations to develop corrective action plans for these findings. Furthermore, OST is advised to work with the Federal Highway Administration to determine the allowability of the questioned costs and recover funds totaling $5,475,471 if deemed appropriate. Compliance officers should monitor DOT's response and any subsequent actions taken by the Operating Administrations to address these significant audit issues and potential fund recoveries.

What to do next

Coordinate with impacted Operating Administrations to develop a corrective action plan for highlighted findings.
Determine the allowability of questioned costs and recover funds totaling $5,475,471, if applicable.

Penalties

Potential recovery of $5,475,471 in questioned costs.

Source document (simplified)

Audit Reports

Date

March 18, 2026

Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending December 31, 2025

Origin Self-Initiated Project ID SA2026021 File Attachment View PDF Document Our Objective(s)
To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between October 1, 2025, and December 31, 2025, and identify findings that affect directly awarded Department of Transportation (DOT) programs.

Why This Audit
OIG performs oversight of independent, non-Federal auditors’ single audit reports. Over the past 3 fiscal years, on average over 200 single audit reports were issued that included findings related to programs directly funded by DOT. We issue memoranda that summarize these reports’ significant findings and recommendations that require priority action by DOT. When warranted, we also recommend that DOT recover funds inappropriately expended by non-Federal entities.

What We Found
Auditors reported 16 findings related to 6 grantees that included significant noncompliance with Federal guidelines which require prompt action from DOT’s Operating Administrations.

Of the 16 findings, 6 were repeat findings related to 4 grantees.
Auditors identified questioned costs totaling $5,475,471 for 2 grantees.
Of this amount, $5,265,085 was related to the Navajo Nation, Window Rock, AZ.
We identified nonmonetary repeat findings that caused qualified opinions for three grantees.

Recommendations
We made 2 recommendations to strengthen OST oversight of non-Federal entities and determine the allowability of questioned costs.

Recommendations

No. 1 to OST Coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report. $5,475,471 No. 2 to OST Work with the Federal Highway Administration to determine the allowability of questioned tribal transactions and recover $5,475,471, if applicable.