Audit 22893

FY End
2022-12-31
Total Expended
$3.62M
Findings
2
Programs
1
Year: 2022 Accepted: 2023-09-28

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
26311 2022-001 - - B
602753 2022-001 - - B

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $3.62M Yes 1

Contacts

Name Title Type
RX1KEK4ZTGA3 Julie Ellis-Grove Auditee
6072779388 Duane Shoen Auditor
No contacts on file

Notes to SEFA

Title: Major Program Determination Accounting Policies: Note 1Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by Tompkins Consolidated Area Transit, Inc. (TCAT, Inc.), an entity as defined in Note 1 to TCAT Inc.s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards.Note 2Basis of AccountingThe basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program.Amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger, which is the source of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. TCAT, Inc. has determined that all federal programs with expenditures of $750,000 or more are Type A programs. For the year ended December 31, 2022, TCAT, Inc. has only one Type A program which is deemed a major program for the purpose of the Schedule of Expenditures of Federal Awards.
Title: Other Disclosures Accounting Policies: Note 1Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by Tompkins Consolidated Area Transit, Inc. (TCAT, Inc.), an entity as defined in Note 1 to TCAT Inc.s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards.Note 2Basis of AccountingThe basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program.Amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger, which is the source of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Insurance is carried to cover vehicles purchased with federal funds. Other equipment purchased with federal funds has only a nominal value and is covered by the TCAT, Inc.s casualty insurance policies. There were no loans, loan guarantees, or interest subsidies outstanding at year end. There was no noncash assistance provided to TCAT, Inc. and no amounts were provided to subrecipients.
Title: Matching Costs Accounting Policies: Note 1Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by Tompkins Consolidated Area Transit, Inc. (TCAT, Inc.), an entity as defined in Note 1 to TCAT Inc.s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards.Note 2Basis of AccountingThe basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program.Amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger, which is the source of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Matching costs, including TCAT, Inc.s share of certain program costs, are not included in the reported expenditures.

Finding Details

Finding 2022-001 Issue: Documentation Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Formula Grants ALN: 20.507 Pass-Through Agency: Tompkins County Criteria: The Uniform Guidance requires that disbursement documentation support the use of funds under federal programs, including authorizations within program requirements. Condition: Several disbursements selected for testing did not have adequate supporting information. Cause: Due to turnover in personnel, some of the authorizations, purchase orders, and related support were not maintained properly. Potential Effect: Authorization for certain expenses could not be verified, and in some cases the appropriateness of the expense also could not be verified. Questioned Costs: None Repeat Finding: This is not a repeat finding. Recommendation: We recommend TCAT, Inc. ensure that appropriate documentation be maintained for expenses. Views of Responsible Officials of the Auditee: TCAT, Inc. does not issue purchase orders for all items, and uses its inventory system to track purchases of parts and supplies. Personnel turnover caused some of the supporting documentation to be misplaced.
Finding 2022-001 Issue: Documentation Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Formula Grants ALN: 20.507 Pass-Through Agency: Tompkins County Criteria: The Uniform Guidance requires that disbursement documentation support the use of funds under federal programs, including authorizations within program requirements. Condition: Several disbursements selected for testing did not have adequate supporting information. Cause: Due to turnover in personnel, some of the authorizations, purchase orders, and related support were not maintained properly. Potential Effect: Authorization for certain expenses could not be verified, and in some cases the appropriateness of the expense also could not be verified. Questioned Costs: None Repeat Finding: This is not a repeat finding. Recommendation: We recommend TCAT, Inc. ensure that appropriate documentation be maintained for expenses. Views of Responsible Officials of the Auditee: TCAT, Inc. does not issue purchase orders for all items, and uses its inventory system to track purchases of parts and supplies. Personnel turnover caused some of the supporting documentation to be misplaced.