Audit 304753

FY End

2023-12-31

Total Expended

$36.58M

Findings

2

Programs

1

Organization: Hidalgo County Regional Mobility Authority (TX)

Year: 2023 Accepted: 2024-04-26

Auditor: Burton McCumber & Longoria LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
394864	2023-001	Significant Deficiency	-	N
971306	2023-001	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
20.205	Highway Planning and Construction	$36.58M	Yes	1

Contacts

Name	Title	Type
JEPHUCNMTCT5	Pilar Rodriguez	Auditee
9564024762	Ricky Longoria	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: General The accompanying Schedule of Expenditures of Federal Awards (SEFA) present the federal grant activity for the Hidalgo County Regional Mobility Authority (the Authority) for the year ended December 31, 2023. The reporting entity is defined in Note I.A to the Authority's financial statements. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the Authority, it is not intended and does not present thefinancial position, changes in net assets, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards is presented using the flow of economic resources measurement focus and use the accrual basis of accounting, which is described in Note I.B of the Authoritys notes to the financial statements. Under this method, revenues are recorded when earned and expenses are recorded at the time a liability is incurred. Federal grant funds are generally considered earned to the extent expenditures made under the provisions of the grant are made and, accordingly, when such funds are received, they are recorded as unearned revenues until earned.

Title: Relationship to Federal Financial Reports Accounting Policies: General The accompanying Schedule of Expenditures of Federal Awards (SEFA) present the federal grant activity for the Hidalgo County Regional Mobility Authority (the Authority) for the year ended December 31, 2023. The reporting entity is defined in Note I.A to the Authority's financial statements. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the Authority, it is not intended and does not present thefinancial position, changes in net assets, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Amounts reported in the accompanying schedule may not agree with the amounts reported in the related Federal financial reports filed with the grantor agencies because of accruals made in the schedule which will be included in future reports filed with agencies.

Title: Reconciliation of Schedule of Federal Awards to Annual Financial Report Accounting Policies: General The accompanying Schedule of Expenditures of Federal Awards (SEFA) present the federal grant activity for the Hidalgo County Regional Mobility Authority (the Authority) for the year ended December 31, 2023. The reporting entity is defined in Note I.A to the Authority's financial statements. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the Authority, it is not intended and does not present thefinancial position, changes in net assets, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The following is a reconciliation of the Schedule of Expenditures of Federal Awards (SEFA) to the Statement of Revenues, Expenses, and Changes in Net Position within the Hidalgo County Regional Mobility Authoritys Annual Financial Report: ( See table on PDF).

Finding Details

Finding 2023-001

Reference Number 2023-001 Quality Assurance Program Verification Activities Criteria: The provisions of 23 CFR Part 637 require that the quality of the materials be validated by verification sampling and testing. The sampling and testing should be performed by qualified sampling and testing personnel. Condition Found: We selected a sample of 40 sampling and testing activities and verified whether technicians performing testing were certified by Texas Department of Transportation (TxDOT). In the sample tested, we noted one technician, who performed 4 of the 40 tests selected in our sample, was not certified. In November 2023, TxDOT performed a monitoring compliance review and had previously noted the same observation regarding the same technician that was not certified. Management indicated that prompt corrective action was taken to address this issue. None of the testing reports reviewed in our sample by this technician occurred after the findings report was issued TxDOT. Effect: Quality and materials testing performed by technicians who are not certified by TxDOT does not meet the requirements of 23 CFR Part 637. Questioned Costs: $0 Cause: Controls were not enforced to ensure all technicians performing sampling and testing activities were properly certified. Recommendation: We recommend HCRMA strengthen internal controls to ensure all technicians performing testing are properly certified. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.

Finding 2023-001

Reference Number 2023-001 Quality Assurance Program Verification Activities Criteria: The provisions of 23 CFR Part 637 require that the quality of the materials be validated by verification sampling and testing. The sampling and testing should be performed by qualified sampling and testing personnel. Condition Found: We selected a sample of 40 sampling and testing activities and verified whether technicians performing testing were certified by Texas Department of Transportation (TxDOT). In the sample tested, we noted one technician, who performed 4 of the 40 tests selected in our sample, was not certified. In November 2023, TxDOT performed a monitoring compliance review and had previously noted the same observation regarding the same technician that was not certified. Management indicated that prompt corrective action was taken to address this issue. None of the testing reports reviewed in our sample by this technician occurred after the findings report was issued TxDOT. Effect: Quality and materials testing performed by technicians who are not certified by TxDOT does not meet the requirements of 23 CFR Part 637. Questioned Costs: $0 Cause: Controls were not enforced to ensure all technicians performing sampling and testing activities were properly certified. Recommendation: We recommend HCRMA strengthen internal controls to ensure all technicians performing testing are properly certified. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.