FAC Explorer

Audit 29988

FY End
2022-06-30
Total Expended
$15.40M
Findings
2
Programs
9
Organization: City of Franklin, Tennessee (TN)
Year: 2022 Accepted: 2022-12-20
Auditor: Crosslin PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38150 2022-001 - - M
614592 2022-001 - - M

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $9.77M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.54M Yes 0
14.218 Community Development Block Grants/entitlement Grants $184,369 - 0
20.205 Highway Planning and Construction $113,560 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $28,103 - 0
20.507 Federal Transit_formula Grants $25,059 Yes 0
20.600 State and Community Highway Safety $23,127 - 0
16.607 Bulletproof Vest Partnership Program $10,955 - 0
15.904 Historic Preservation Fund Grants-in-Aid $5,000 - 0

Contacts

Name Title Type
E91GFR3AMMD5 Mike Lowe Auditee
6157911457 David Hunt Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 - STATE REVOLVING LOAN FUND Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe Schedules of Expenditures of Federal Awards and State Financial Assistance includes the federal and state grant activity, respectively, of the City of Franklin, Tennessee and are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Tennessee, respectively. Because these Schedules present only a selected portion of the operations of the City, they are not intended to and do not present the financial position or changes in financial position of the City.NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe information reported in the Schedules is reported in accordance with accounting principles generally accepted in the United States of America, which is the same basis of accounting as the basic financial statements. The federal expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, when applicable. At June 30, 2022, there was an outstanding balance of $110,040,104 on loans obtained through the State Revolving Loan Fund. Payments during the current fiscal year totaled $2,843,147.

Finding Details

Finding 2022-001
ITEM #2022-001 FRANKLIN TRANSIT AUTHORITY PROGRAM REVIEW Federal Transit Cluster Assistance Listing No. 20.507, 20.500 U.S. Department of Transportation Criteria The Federal Transit Cluster requires the City (specifically the Franklin Transit Authority as recipient of the grants) to properly report and monitor subrecipients, maintain internal controls over expenditures charged to the program, and properly report awards and subawards in the Federal registry in accordance with the Federal Funding Accountability and Transparency Act (FFATA). Condition and Context The Federal Transit Authority conducted a Full Scope Systems Review of the Franklin Transit Authority (a special revenue fund of the City) in fiscal year 2021 and issued their final report in April 2022. In their report, instances of noncompliance were noted over the Federal Transit Cluster, including: ? Reporting and monitoring of subrecipients: the City improperly reported the TMA Group as a subrecipient in the Schedule of Expenditures of Federal Awards (SEFA). The TMA Group is a contracted management company hired by the City to manage the Franklin Transit Authority. The TMA Group meets the criteria of a contractor, and therefore should not have been reported as a subrecipient in the City?s SEFA. The City also did not report Williamson County as a subrecipient of portions of the grant program in the City?s SEFA, and was not properly monitoring Williamson County as a subrecipient. ? Maintain internal controls over expenditures charged to the program: the City has documented and implemented internal controls over federal expenditures, however it was noted the City did not document approvals on all of the payroll registers containing salaries charged to the Federal Transit program. ? Reporting awards and subawards in the Federal registry in accordance with the FFATA: it appeared the City was not reporting awards and subawards in accordance with FFATA for the Federal Transit program. Questioned Cost None Cause The City did not have proper controls in place over the grant program to ensure compliance with certain requirements noted above. Effect The City was not in compliance with certain requirements of the Federal Transit Cluster. Recommendation The City has developed and began implementation of a plan to better monitor internal controls and compliance requirements over the daily functions of the Franklin Transit Authority and the Federal Transit program. We recommend the City continue to follow and fully implement their plan. Views of Responsible Officials and Planned Corrective Action City officials have corrected deficiencies in the report through the following corrective action plan.
Finding 2022-001
ITEM #2022-001 FRANKLIN TRANSIT AUTHORITY PROGRAM REVIEW Federal Transit Cluster Assistance Listing No. 20.507, 20.500 U.S. Department of Transportation Criteria The Federal Transit Cluster requires the City (specifically the Franklin Transit Authority as recipient of the grants) to properly report and monitor subrecipients, maintain internal controls over expenditures charged to the program, and properly report awards and subawards in the Federal registry in accordance with the Federal Funding Accountability and Transparency Act (FFATA). Condition and Context The Federal Transit Authority conducted a Full Scope Systems Review of the Franklin Transit Authority (a special revenue fund of the City) in fiscal year 2021 and issued their final report in April 2022. In their report, instances of noncompliance were noted over the Federal Transit Cluster, including: ? Reporting and monitoring of subrecipients: the City improperly reported the TMA Group as a subrecipient in the Schedule of Expenditures of Federal Awards (SEFA). The TMA Group is a contracted management company hired by the City to manage the Franklin Transit Authority. The TMA Group meets the criteria of a contractor, and therefore should not have been reported as a subrecipient in the City?s SEFA. The City also did not report Williamson County as a subrecipient of portions of the grant program in the City?s SEFA, and was not properly monitoring Williamson County as a subrecipient. ? Maintain internal controls over expenditures charged to the program: the City has documented and implemented internal controls over federal expenditures, however it was noted the City did not document approvals on all of the payroll registers containing salaries charged to the Federal Transit program. ? Reporting awards and subawards in the Federal registry in accordance with the FFATA: it appeared the City was not reporting awards and subawards in accordance with FFATA for the Federal Transit program. Questioned Cost None Cause The City did not have proper controls in place over the grant program to ensure compliance with certain requirements noted above. Effect The City was not in compliance with certain requirements of the Federal Transit Cluster. Recommendation The City has developed and began implementation of a plan to better monitor internal controls and compliance requirements over the daily functions of the Franklin Transit Authority and the Federal Transit program. We recommend the City continue to follow and fully implement their plan. Views of Responsible Officials and Planned Corrective Action City officials have corrected deficiencies in the report through the following corrective action plan.