Audit 13692

FY End
2023-06-30
Total Expended
$20.98M
Findings
2
Programs
6
Year: 2023 Accepted: 2024-01-25
Auditor: Rkl LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
10062 2023-001 Significant Deficiency - L
586504 2023-001 Significant Deficiency - L

Contacts

Name Title Type
C1HZSRB6U3N4 Randy Lisman Auditee
5702889356 Timothy Kraft Auditor
No contacts on file

Notes to SEFA

Title: Significant Accounting Policies Accounting Policies: The Luzerne County Transportation Authority (the Authority) maintains its accounting records in accordance with accounting principles generally accepted in the United States of America. The financial information contained in the schedule of expenditures of federal awards and the schedule of Pennsylvania Department of Human Services expenditures has been prepared on the basis of accounting practices prescribed under the terms of Federal Operating Assistance and Capital Grants with the Federal Transit Administration. The practices differ from accounting principles generally accepted in the United States of America as follows: 1. Depreciation is not allowed as a project cost. 2. Certain expenditures that would not normally be included in the determination of net income are either allowable or unallowable for project purposes. De Minimis Rate Used: N Rate Explanation: Indirect cost of the Authority was based on actual time. The Authority did not elect to utilize the ten percent de minimus indirect cost rate. The Luzerne County Transportation Authority (the Authority) maintains its accounting records in accordance with accounting principles generally accepted in the United States of America. The financial information contained in the schedule of expenditures of federal awards and the schedule of Pennsylvania Department of Human Services expenditures has been prepared on the basis of accounting practices prescribed under the terms of Federal Operating Assistance and Capital Grants with the Federal Transit Administration. The practices differ from accounting principles generally accepted in the United States of America as follows: 1. Depreciation is not allowed as a project cost. 2. Certain expenditures that would not normally be included in the determination of net income are either allowable or unallowable for project purposes.
Title: Indirect Cost Rate Accounting Policies: The Luzerne County Transportation Authority (the Authority) maintains its accounting records in accordance with accounting principles generally accepted in the United States of America. The financial information contained in the schedule of expenditures of federal awards and the schedule of Pennsylvania Department of Human Services expenditures has been prepared on the basis of accounting practices prescribed under the terms of Federal Operating Assistance and Capital Grants with the Federal Transit Administration. The practices differ from accounting principles generally accepted in the United States of America as follows: 1. Depreciation is not allowed as a project cost. 2. Certain expenditures that would not normally be included in the determination of net income are either allowable or unallowable for project purposes. De Minimis Rate Used: N Rate Explanation: Indirect cost of the Authority was based on actual time. The Authority did not elect to utilize the ten percent de minimus indirect cost rate. Indirect cost of the Authority was based on actual time. The Authority did not elect to utilize the ten percent de minimus indirect cost rate.
Title: Program Clusters Accounting Policies: The Luzerne County Transportation Authority (the Authority) maintains its accounting records in accordance with accounting principles generally accepted in the United States of America. The financial information contained in the schedule of expenditures of federal awards and the schedule of Pennsylvania Department of Human Services expenditures has been prepared on the basis of accounting practices prescribed under the terms of Federal Operating Assistance and Capital Grants with the Federal Transit Administration. The practices differ from accounting principles generally accepted in the United States of America as follows: 1. Depreciation is not allowed as a project cost. 2. Certain expenditures that would not normally be included in the determination of net income are either allowable or unallowable for project purposes. De Minimis Rate Used: N Rate Explanation: Indirect cost of the Authority was based on actual time. The Authority did not elect to utilize the ten percent de minimus indirect cost rate. The following program clusters, as defined by the Uniform Guidance, were treated as a single program for determining major programs: CFDA Number Expenditures 20.507 Federal Transit Cluster 20.526 $ 10,584,836 Transit Services Programs Cluster 20.513 $ 9,541,122 Highway Planning and Construction Cluster 20.205 $ 5,464 Medicaid Cluster 93.778 $ 852,450

Finding Details

Finding 2023-001 Significant Deficiency - Medicaid Cluster - CFDA Number 93.778 N/A The Authority did not file the quarterly Medical Assistance reports timely. Criteria Quarterly Statement of Expenditures for the Medical Assistance Program are due thirty days after the end of the quarter. Condition The Authority filed three of the Quarterly Statement of Expenditures for the Medical Assistance Program after the specified due date. The first three quarters were filed past the due date. The fourth quarter was filed timely. Cause Reports were not prepared prior to the due date. The Authority was waiting for data on ineligible trips that prevented filing in a timely manner. Effect Consistent late reporting could result in delayed grant funding. Recommendation The Authority should prepare the Quarterly Statement of Expenditures for the Medical Assistance Program prior to the due date in order to ensure timely reporting. Management's Response The Authority will include an insignificant number of ineligible trips on the following quarter so as not to hold up current quarter reporting.
Finding 2023-001 Significant Deficiency - Medicaid Cluster - CFDA Number 93.778 N/A The Authority did not file the quarterly Medical Assistance reports timely. Criteria Quarterly Statement of Expenditures for the Medical Assistance Program are due thirty days after the end of the quarter. Condition The Authority filed three of the Quarterly Statement of Expenditures for the Medical Assistance Program after the specified due date. The first three quarters were filed past the due date. The fourth quarter was filed timely. Cause Reports were not prepared prior to the due date. The Authority was waiting for data on ineligible trips that prevented filing in a timely manner. Effect Consistent late reporting could result in delayed grant funding. Recommendation The Authority should prepare the Quarterly Statement of Expenditures for the Medical Assistance Program prior to the due date in order to ensure timely reporting. Management's Response The Authority will include an insignificant number of ineligible trips on the following quarter so as not to hold up current quarter reporting.